400,000 small firms threatened by late payment as costs surge, new study finds
The Federation of Small Businesses (FSB) is warning that a worsening of the UK’s late payment crisis, high inflation and mounting admin for firms that trade internationally will cause the business community to further shrink in size if left unaddressed, as it releases fresh findings from its quarterly Small Business Index (SBI).
The new study of more than 1,200 business owners finds that close to one in three (30%) has seen late payment of invoices increase over the last three months, with a further 8% experiencing other forms of poor payment practice. Only 6% say that a change in payment terms has been agreed over that period.
As a result, approaching one in ten (8%) say late payment is now threatening the viability of their business. Latest government statistics show that there are an estimated 5.5 million small business in the UK – a figure which fell by 400,000 over last year’s lockdowns. The new FSB study suggests that a similar number of firms (440,000) could be forced to close again this year due to late payment alone.
The headline UK SBI measure of confidence has dropped to -8.5 in Q4, during another uncertain festive season. The figure has fallen every quarter over 2021, having stood at +27.3 in Q1. More small firms now expect their performance to worsen over the coming three months than expect an improvement. Pessimism is especially pronounced in the retail (-40.3) and accommodation and food (-33.0) industries.
The vast majority of small businesses (78%) say costs are rising. The figure is at a seven-year high.
Inputs are most commonly cited as a primary cause of that increase, with half (49%) of those surveyed flagging it as a main driver of higher outgoings. Fuel (46%) and utilities (45%) were the second and third most highlighted primary causes of rising costs respectively. All figures are at their highest levels since Q4 2014.
Elsewhere, with full import checks and rules of origin requirements now in place for firms which do business in the EU, the bulk (74%) of small exporting firms report that international sales were flat or falling over the past quarter. Close to one in four (38%) of these firms report a decrease in exports. Previous FSB research shows that only one in four small importers are fully prepared for new import checks.
FSB National Chairman Mike Cherry said: “The small business community diminished in size over the past year and, unless action is taken now to tackle the challenges it faces, history is set to repeat itself.
“After another frustrating festive season, small firms are facing flashpoint after flashpoint. Today, it’s a fresh wave of admin for importers and exporters – in three months’ time it will be a hike to the jobs tax that is national insurance contributions, a rise in dividend taxation, business rates bills and an increase in the national living wage. On top of that, operating costs are surging – many will soon be trying to strike energy deals without the clout of big corporates or the protections afforded to consumers.
“Small business confidence dropped in every quarter of 2021. As we head into the New Year, the government needs to act now if we’re to reverse that trend and secure an economic bounce back.
“Late Payment was destroying thousands of small businesses even before the pandemic hit – the pandemic has made matters worse. In the past, the Government has rightly identified greater Board accountability as key to spurring change in this area, but delivery has been slow. We responded to its consultation on extending the Small Business Commissioner’s powers more than a year ago, but have yet to see a response.
“The pandemic is absorbing bandwidth, and rightly so, but policymakers need to understand that late payment is the issue that keeps thousands of entrepreneurs up at night, and one that has worsened in lockstep with lockdowns. We need to see words turned to action.
“Every big UK corporation should have a non-executive director on its board with direct responsibility for payment culture. And every big business and government organisation should be abiding by the prompt payment code: 30-day payment terms are not a nice to have, they’re the norm for those who are committed to environmental, social and governance best practice.
“If this government is serious about levelling-up, it needs to get serious about helping community businesses struggling to make ends meet as costs surge. Increasing the small businesses rates relief ceiling to £25,000 would take 200,000 more firms out of this regressive tax altogether, primarily in levelling-up target areas, meaning more investment, recruitment and retention within local economies up and down the country.
“Equally, with the omicron variant hammering consumer confidence, April’s tax hikes are looking increasingly misjudged. The Chancellor should look again at how to protect small firms from this fresh blow. An increase in the Employment Allowance would provide some breathing space.
“Small firms that do business internationally are usually among our most profitable and innovative. That’s why it’s so hard to watch so many becoming increasingly weighed down by bureaucracy. The Government should learn lessons from the botched roll-out of the SME Brexit Support Fund and launch a new fund with similar aims but more sensible eligibility criteria, reasonable application deadlines and a genuinely international focus.”
Welcome to Yorkshire announce ‘Yorkshire Menu’ as their key campaign for 2022
Celebrating Yorkshire’s fabulous food and delicious drink is the order of the day … and year … as Welcome to Yorkshire launches Yorkshire Menu on New Year’s Day 2022. The aim is to showcase Yorkshire as the food and drink capital of the UK in the biggest ever year-long promotion of the county’s delicious delights … regionally, nationally and internationally, scrumptiously showcasing the very best of Yorkshire’s culinary creations across the globe.
From street food to Michelin-starred restaurants, farm shops to tea rooms, vineyards to distilleries, local produce to international cuisine, market stalls to delicatessens … and so much more, check-in and check out the Yorkshire Menu. Sourced and enjoyed across the county … Yorkshire’s breathtaking coastline, stunning countryside, vibrant cities and bustling towns serve up the finest food and drink.
There’ll be Yorkshire on Tour, Eat Around the World (whilst staying in the county), mouthwatering recipes, food and drink trails, and a calendar of competitions and creative campaigns.
Yorkshire Menu will feature celebrated chefs, food and drink experts, a whole host of celebrities and the magnificent team of people who create the delectable delights the county is famous for. From fantastic fishing crews to fabulous farmers, restaurant owners to world-renowned cooks and drinks producers, it’s going to be a top year for tucker, tipples and brilliant beverages.
There’s much to shout about. Here’s a taster … Yorkshire has 16 commercial vineyards, 7 Michelin-starred restaurants (1 with a green Michelin star), Bridlington is England’s biggest shellfish port and for 6 consecutive years Bradford was crowned Curry Capital of Britain. The county also counts an impressive and inspiring list of protected status foods: Wensleydale cheese, Swaledale cheese (from both ewes and cows) and Yorkshire forced rhubarb. That’s just for starters!
Food and drink is a much-loved constant whatever is happening in the world and is to be promoted and enjoyed. Spending time eating and drinking with friends and family must be at the top of most people’s favourite pursuits AND even during a pandemic and challenging times for businesses, the way many have adapted with home deliveries and hampers has been truly inspirational.
Everyone will be invited to participate in the #YorkshireMenu by sharing their own favourite places to eat and drink. Popping to the pub, dining out in style or picking up pieces from a favourite Yorkshire store, it’s the perfect opportunity to promote the county’s finest food and drink offerings for all budgets by using the hashtag #YorkshireMenu, as well as sharing on Welcome to Yorkshire’s social media channels. The destination marketing organisation believe this will be a great PR opportunity for the county and its visitor economy, as Welcome to Yorkshire’s annual social reach is almost 20 million and has a global brand reach of over 23 million.
Celebrating city, coast and countryside food and drink, the campaign will also allow the opportunity for businesses and organisations to sponsor events and promotional activities throughout the year.
Welcome to Yorkshire Chair Peter Box CBE said: “2021 has been another tricky year for all and certainly a time to reflect on what is positive and what we should be proud of, which is certainly the case when it comes to Yorkshire’s fantastic food and drink offering. What better way to start the new year and continue through 2022, than promoting all this wonderful produce, award-winning places to dine and drink, as well as supporting local businesses, which is needed now more than ever.
Yorkshire Menu will have a worldwide appeal and will welcome visitors to the most diverse of counties through the most inclusive of campaigns. Food and drink is enjoyed by everyone and we really hope visitors in and out of county will embrace and enjoy the Yorkshire Menu as much as we do. It will also incorporate Yorkshire’s art and culture, sport, history and heritage locations and the region’s amazing attractions with food and drink connected to all.”
Multi-award-winning Consultant Chef Stephanie Moon added: “I am really excited that Welcome to Yorkshire’s Yorkshire Menu will be celebrating all of the county’s fantastic food and drink. It’s something I’m incredibly passionate about and proud to be a part of. I’ve travelled extensively and can honestly say that Yorkshire’s fabulous fresh produce combined with its lovely locations to dine and drink are simply world-class and that’s why I choose Yorkshire as my home and place to work.”
Prashad’s Minal Patel said: “We’re incredibly lucky in Yorkshire to have a vast choice of excellent local produce to create world-class international cuisine. Seeing the pleasure our customers, from far and wide, get from lovingly created cooked dishes and for them to return time and time again, is the greatest compliment as a restaurant owner.
Welcome to Yorkshire’s the Yorkshire Menu is a great initiative to amplify the county’s fantastic food and drink businesses.”
Business leaders seek tax, trade and skills support to meet challenges of next 20 years
Almost half (47%) of UK businesses said taking on new staff is their key ambition in the medium-term, according to new research to mark the 20th anniversary of the Lloyds Bank Business Barometer.
The survey asked 600 businesses about the major challenges and opportunities faced in the last two decades and anticipated challenges up to 2040 and beyond.
Companies also highlighted developing new products and services (36%) and increasing online sales (30%) as major ambitions and priorities.
The survey found that businesses expect online purchasing (20%) and demand for instant products and services (18%) to be the biggest changes in consumer behaviour in the next 20 years, forcing them to be more creative and innovative in order to adapt to deliver quickly.
These predictions mirror the factors which businesses cited as having had the biggest impact on their operations in the past 20 years – chiefly greater access to information (24%) and more online purchasing (22%) changing customer behaviour.
However, firms are optimistic about further changes to consumer behaviour, with 38% reporting that advances in technology have had the biggest positive impact on their business in the past 20 years.
Challenges ahead
Despite a clear drive towards growth, a net balance of 83% of firms anticipate the next 20 years will be more challenging than the past two decades – which included the financial crisis and resulting credit crunch, recession, the Brexit referendum and the global pandemic.
Some of the challenges that businesses see themselves facing can be linked back to the pandemic, including rising costs (23%) and the ability to recruit staff (11%). In addition, one in ten (11%) businesses see the need to keep up with technological developments as their biggest challenge in the next two to three years.
Government provision of greater access to more vocational-based learning was seen by 44% of firms as being a way to help mitigate these challenges. However, companies believe that future growth opportunities will need to be supported by more favourable taxation to encourage sustainable business practices (52%) and new trade agreements with major trading partners (48%).
Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “The Business Barometer has provided unique insights into the views of British businesses for 20 years. In that time, we have seen a seismic shift in the economic context in the UK, as well as the extraordinary ability of business leaders to adapt and evolve to meet changing market needs.
“Perhaps it is not unsurprising that, having faced a quite unprecedented period of late and enormous change over the last twenty years, the majority of business leaders feel the next twenty years will be more challenging. To help them through this, businesses are looking for support on skills, finance, trade and taxation to navigate in this environment.
“One thing that is clear is that our businesses and business leaders are incredibly resourceful and resilient and are adept at facing into constant change. They tell us they are gearing up for growth and expect to increase headcount, enhancing their service offering or utilising new technologies. We’ll be by their side over the months and years ahead as they deliver on their ambitions.”
Redbrik Foundation donates £10k to local charities
Award-winning South Yorkshire and North East Derbyshire Estate Agents, Redbrik has donated nearly £10,000 to six local charities.
Fairplay, St. Luke’s Hospice Sheffield, Bluebell Wood Children’s Hospice, The Children’s Hospital Charity, Ashgate Hospice and Paces will benefit from the funds raised through the Redbrik Foundation.
After hosting and supporting many charity events over the years, the Redbrik Foundation was set up in 2020 to help children, young people, the elderly and those with disabilities in the Sheffield and Chesterfield areas.
Naturally, since the Foundation was set up in 2020, restrictions have limited the number of in-person fundraising events. However, Redbrik’s team came up with new ways to generate support for the Foundation and its charities at a time when they need it most.
The Redbrik Foundation has organised virtual events, and challenges and donations of Christmas presents to Sheffield Children’s Hospital two years running so that every patient receives a gift during the festive season.
The team tackled the Yorkshire Three Peaks challenge earlier this year, raising over £4,000, and held the very first – and very successful – Redbrik Foundation Chesterfield 10k in October 2021. In addition, donations were raised through a match funding initiative whereby clients of Redbrik are given the option to donate £25 to the Foundation, which the company then matches.
Redbrik Foundation Trustee, David Cooper, commented: “This is a proud moment for every one and thank you to anyone who has promoted, donated to or fundraised for the Foundation. One hundred per cent of all money raised is donated back out into the community to support the incredible work these organisations carry out every day.
“Rather than have a changing list of annual charity partners, we’ve decided instead that we’d rather have an ever-growing list of amazing charities to support, so watch this space!”
Lincs & Notts Air Ambulance sign off 2021 as busiest year in charity’s history.
A lot has happened at LNAA this year, from moving to a new headquarters to upgrading the helicopter, the charity hasn’t stood still through what has been a monumental year of change.
And the numbers reflect the pace of transformation with the crew having responded to more than 1,400 missions in 2021. Compared to 1,095 in 2020 and 877 in 2019, it’s a significant leap.
CEO Karen Jobling said: “Just like many other charities, we went into 2021 not knowing what to expect. We had projects that were underway before the first lock-down so we had to dig in and keep going on those fronts, keeping in mind that they were all foundations for the future of the charity. This is what has enabled us to reach more patients this year.”
The addition of a second helicopter in the summer came in response to an anticipated surge in visitors to the Lincolnshire coast as lock-down measures eased. This contributed to the rise in call-outs as it became the busiest summer the charity had ever had.
Throughout the year additional, highly skilled doctors and paramedics have joined LNAA with some travelling from Aberdeen, Kent and even Lisbon to be part of a team that is leading the way in this specialist sector. This meant that by September, crews were able to respond day and night using a mix of the helicopter and critical care cars.
The charity teams and crew moved into a new, purpose-built headquarters in Lincoln – HEMS (Helicopter Emergency Medical Service) Way – in the summer and celebrated the official opening in September when HRH The Earl of Wessex, officially opened the building. The clinical and aviation operation had formerly been based at RAF Waddington with the staff situated in Bracebridge Heath, so the development of HEMS Way gave everyone the opportunity to be under one roof for the first time.
Another stride in clinical care came with the introduction of blood plasma. Blood was already carried on board but plasma was added because it is the component of blood that helps it to clot – integral to the care given at the scene of a traumatic incident, anywhere within the 3,500sq miles LNAA covers.
“Our crews continue to be out there and, just like their NHS colleagues, they are dealing with the added pressure and complexity the spread of Covid brings, said Karen. The only difference is that we are there purely because of the generous donations we receive from our communities.
She added: “We are so pleased that we have been able to be there for more patients in 2021. Of course, with each mission costing on average £3,500, it comes at a cost. It is only because of the generosity of our supporters that more patients have been helped by a crew with the highest skills and standards in pre-hospital care. Everyone here at LNAA would like to send all of our wonderful supporters our whole-hearted thanks.”
Visit www.ambucopter.org.uk/donate to help save lives.
Holiday park operator swoops for Sheffield business
UK holiday park operator, Away Resorts, has reached an agreement to acquire Sheffield-based Coppergreen Leisure Resorts. This expands Away Resorts’ footprint to 27 locations across the UK.
Coppergreen has 370 lodges across four parks in Yorkshire, Scotland, Lincolnshire and Nottinghamshire. Growth capital investor BGF exits as part of the deal, having backed Coppergreen in 2016.
The acquisition will complement Away Resorts’ existing portfolio, increasing its presence in the North of England and in Scotland, and growing the number of visitors the group welcomes every year to over 750,000.
Carl Castledine, CEO of Away Resorts, said: “We are delighted to be welcoming Coppergreen to the Away Resorts family to support our ambition of forming the leading UK holiday park provider. Coppergreen’s prime locations and leadership in sustainability will further enhance our offer as we look to provide perfect holiday destinations for UK holiday makers.”
David Copley, CEO at Coppergreen Leisure Resorts, said: “Away Resorts has a reputation for driving innovation across the industry and is the ideal owner for the business. We look forward to seeing what the team goes on to achieve in its next successful chapter.”
2022 Business Predictions: Mark Goodson, owner and MD of Wayside Holiday Park
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Mark Goodson, the owner and Managing Director of Wayside Holiday Park near Pickering.
The picture facing the tourism industry in Yorkshire in the next 12 months is nuanced and complex. On the one hand, the threat of Covid and the worrying new variant, combined with a chronic lack of capable staff and a fractured supply chain, is a real challenge for our sector. There’s no getting away from that. On the other hand, the global pandemic has fuelled the “staycation” boom in the UK and it is highly likely that many people won’t be going abroad next year, because it is a logistical nightmare as well as a potential risk to health.
So let’s be optimistic to start with. Yorkshire is a most fabulous county and has flourished during the past 18 months, despite the problems faced by its main tourism body, Welcome to Yorkshire. Its beauty speaks for itself, from the glorious Dales, to the historic city of York and from the atmospheric North Yorkshire coastline to the stunning Moors. Our county has it all. There is every reason to believe that 2022 will be an exciting and successful year, Covid and lockdowns permitting.
Looking more specifically at the holiday park sector, our supply chain is a major worry. Because of the staycation boom, and the buying power of the grey pound, the demand for static caravans and holiday lodges is very strong. But the availability of both is erratic at best, despite strenuous efforts by the manufacturers. However, I am an optimist by nature and have invested £200,000 to upgrade our holiday park for the New Year. I am confident that this optimism isn’t misplaced.
24-acres of logistics development land sold in Barnsley for £11.6m
Harworth Group has completed the sale of a 24-acre plot at its Gateway 36 logistics site in Barnsley, Yorkshire, to Firethorn Barnsley Limited for £11.6 million.
Firethorn will develop a BREEAM ‘excellent’ rated, 340,000 ft logistics facility at the plot, which forms part of the latest phase of development at Harworth’s Gateway 36 project.
Harworth received a resolution to grant planning consent for Phases 2 and 3 of its Gateway 36 development from Barnsley Council in 2020, which, in its entirety, will comprise a total of 1.1 million sq ft of new logistics and manufacturing space across 95 acres of land. The scheme is expected to support the delivery of up to 2,500 jobs in Yorkshire.
This sale builds on the success of Phase one of Gateway 36, which comprised the direct development by Harworth of c. 145,300 sq ft of industrial and logistics space across four units, which were sold to Mayfair Capital in 2018. Existing occupiers on the site include Esco, Talurit, Environment Agency and Car Supermarket.
Gateway 36 is supported by £3.1 million of funding from Sheffield City Region, with all of the facility now drawn down contributing to the infrastructure that has opened up development of the site. Harworth intends to begin its next phase of direct development at the site in 2022.
Andrew Blackshaw, Chief Operating Officer, Harworth Group plc, said: “This sale to Firethorn is part of a coordinated strategy to realise our vision for Gateway 36 as a major hub for both large and small footprint logistics and manufacturing in Yorkshire. Since acquiring the site, Harworth has transformed the former Rockingham Colliery into a new high-quality development, which benefits from a position adjacent to Junction 36 of the M1.
“This transaction also demonstrates the current market demand for strategically located sites, which are in short supply in the region. Together with the recent sale of our Antsy strategic land site, the proceeds will be recycled into our ongoing development pipeline as well as growing our landbank as we deliver on our strategy to double the size of the business over the next five to seven years.”
Dan Green, Associate Director, Firethorn Trust, said: “Our strategic approach at Firethorn is to identify and unlock the potential of strong development sites across the UK, to meet the growing need for sustainable, flexible and high-quality logistics accommodation. We are delighted to add this site at Gateway 36 to our logistics portfolio, and with the ever-increasing demand for industrial schemes in Yorkshire, we look forward to delivering our plans at pace.”
Harworth was advised by Knight Frank and Gent Visick.
Lincolnshire local a winner at Natwest Everywoman Awards
Hannah Dale, founder of Wrendale Designs, from Brigg, Lincolnshire has been announced as a winner at the 2021 NatWest Everywoman Awards.
The awards celebrated the UK’s most inspiring female entrepreneurs, recognising their outstanding achievements during one of the most challenging periods for businesses in living memory.
Bringing together some of the UK’s most successful business owners, the ceremony featured the stories of many extraordinary women who, against the odds, have brought business concepts to reality, creating jobs, opportunities and global brands.
This year’s winners span multiple sectors including food, fashion, drinks, health, beauty, energy, IT and service industries. All are united in one common purpose – to inspire future generations of entrepreneurs and to leave the world a better place than they found it.
Hannah is the winner in the Athena category, which is awarded to the most inspirational woman running a business trading from 6 to 9 years.
Hannah had a successful City career until the financial crash of 2008 left her facing redundancy. Returning to contemplate her options at the family farm, she revived her hobby of painting animals and country scenes.
She initially developed a small range of greetings cards and took to local gift shops to gauge interest. The response was encouraging and persuaded Hannah to expand into giftware and homeware.
From a standing start 10 years ago, Hannah has built Wrendale into an international brand turning over £8 million annually and providing jobs for over 60 employees. Covid threatened to derail the business given its wholesale model, but by supporting her retailers with strong content and digital assets, she helped them to pivot their businesses online and sales rebounded with popular lines including a motivational quote box, journals and notelets.
Speaking about the winners, Maxine Benson MBE, co-founder at everywoman, said: “For nearly two decades these awards have provided a platform to share the stories of hundreds of entrepreneurs, encouraging, emboldening and empowering other women to follow suit.
“Against a backdrop of Covid, these women have shown how innovation and enterprise have helped their businesses to thrive under extraordinary trading conditions. We hope their experiences will go onto inspire others and provide the motivation and inspiration that will be the backbone of the UK’s economic recovery.”
Boost Drinks appoints sales director following milestone year
Leading functional drinks brand, Boost Drinks, has expanded its senior team with the appointment of Sales Director, Colin Falconer, to lead the business through the next stage in its journey.
Falconer will begin his new role on 4th January 2022 and brings with him a wealth of sales and leadership experience across multiple channels from his time at Mars, 2 Sisters and most notably Britvic Soft Drinks.
In his 15 years at Britvic, Falconer’s role included Convenience Channel Director and his invaluable industry knowledge and relationships coupled with his passion, ambition and strategic skills make him the ideal person to join the Boost leadership team to drive forward its growth plans.
Boost celebrated its 20th anniversary during 2021, and the appointment of Falconer comes at a pivotal moment in the company’s history. The business has plans to further expand its distribution within the UK and Irish convenience and foodservice channels with its growing functional drinks portfolio as well as building its international footprint in overseas markets.
Founder and CEO, Simon Gray, said: “Boost has always been exciting and ambitious, and with our recent partnership to distribute Rio, the successful launch of our coffee and the changing customer landscape ahead of us, we feel that this is a great moment for Colin to come on board.
“We’re looking forward to Colin joining at a significant moment in our business history and see him as a key catalyst in our future success.
Falconer commented: “I’ve long admired the Boost Drinks story and approach, and in particular, the strong relationships they’ve built with the wholesale trade and convenience retailers as well as the growing consumer engagement in recent years
“I have a huge passion for soft drinks and am thrilled to be joining Boost at a time of significant opportunity, and really look forward to being part of the leadership team and working with the full business to take full advantage of all the exciting opportunities open to us”.
