Defence Secretary visits Foregemasters to see submarine parts manufacture
UK Defence Secretary John Healey has visited Sheffield Forgemasters to set out Britain’s commitment to the AUKUS submarine delivery partnership as an important driver of jobs and growth in Yorkshire and across the UK.
Mr Healey said Sheffield Forgemasters was a shining light of UK industry that helps boost global security and employs skilled staff from the local community. This is just one example of how our hugely important partnership with our Australian and American partners can help drive jobs and growth across Britain.
The group visited our Heavy Forge to see complex forged components for the AUKUS Class submarines being made
Gary Nutter, CEO at Sheffield Forgemasters, said: “We were delighted and honoured to host such a prestigious visit and would like to thank the Secretary of State for Defence, the Australian Deputy Prime Minister and Chief of Defence Nuclear, Madelaine McTernan CB, for taking time to see what we do at first hand.
“The AUKUS pact will provide secure, highly skilled jobs not only for Sheffield Forgemasters and Yorkshire, but for the wider UK supply chain, over decades.”
An anticipated 7,000 additional British jobs will be generated through the British and Australian AUKUS submarine programmes through their life. At the peak, there will be over 21,000 people working on the SSN-AUKUS programmes in the UK supply chain.
Sheffield Forgemasters is investing heavily in its defence manufacturing capabilities, including a brand new 13,000 tonne Heavy Forging line and a state-of-the-art machine shop which will service AUKUS manufacture.
Joined by the Chief of Defence Nuclear at the Ministry of Defence, Madelaine McTernan CB, the Australian High Commissioner, The Hon Stephen Smith and Deputy Prime Minister and Defence Minister, Richard Marles, Minister Healey saw how the business is benefiting from the AUKUS trilateral defence and security partnership between the UK, US and Australia.
Our Chair, Sir Tim Fraser, accompanied by Chief Executive, Gary Nutter, and Chief Financial Officer, Amy Grey, hosted the visit, showcasing the unique capabilities and skills at Sheffield Forgemasters, which make the company a valuable partner in the delivery of SSN-AUKUS submarines for the UK and Australia.
Steelwork complete at Ideal Heating’s UK Tech Centre
Steel erection for Ideal Heating’s £19.2m UK Technology Centre supporting the development of low carbon technologies, including heat pumps, is finished
Rotherham Council provide boost for small businesses
Rotherham Council has stepped up its commitment to ensure that local businesses and employers benefit from its spending.
The Council has partnered with Go4Growth, an organisation that helps businesses and voluntary sector organisations to access public sector contracts.
With a spend of over £400m per annum on public services, goods and products, the Council currently buy from a large pool of suppliers and since October 2019 its policy has been to try to increase the number of those in the local area.
The partnership will provide opportunities for a wide variety of talented voluntary sector organisations and small businesses to access Council contracts.
The programme is fully funded, meaning businesses can join the programme and access the support, guidance, tools and resources on offer at no cost.
In 2022/23, the Council spent £77.2 million in the local economy, an increase of 72% over three years. More than a quarter of the Council’s purchasing power goes directly back into the local economy, with an ambition to increase this further in the future.
Rotherham Council Leader, Cllr Chris Read said: “Our commitment to social value – ensuring that we maximise the benefit of the Council’s spending in our local economy – has already received national recognition. But we know that for many local suppliers, especially smaller businesses, it can be difficult to know where to start.
“That’s why we have brought in Go4Growth who are specialists in the field to give free advice and support to local employers. It’s all part of our mission to see more money spent locally, creating jobs and increasing wages, supporting a fairer local economy that works in the interests of our residents.
“Regardless of where a business is on their journey, if they are aspiring to do more work in the public sector, I urge them to get in touch with Go4Growth.”
Gillian Askew FCIPS – Co-Founder of Go4Growth said: “We are delighted to be working with Rotherham Council to help support local organisations to be able to find and secure work in the public sector marketplace. This is really important work which has only increased in priority and urgency in the wake of the COVID-19 pandemic and cost of living crises.”
Yorkshire manufacturers saw highest increase in output of any English region in last decade
Manufacturers in Yorkshire & the Humber have seen the highest increase in output of any English region or devolved nation in the last decade, as well as the best recovery in output since the pandemic, according to a new report out today.
The Make UK/BDO Annual Regional Manufacturing Outlook report shows that since 2013 output in the region has increased by 40%, while output in 2023 was 17% above the pre-pandemic levels recorded in 2019, also the best in the UK.
The importance of the manufacturing sector to the region’s economy overall is highlighted by the fact it accounts for almost 15% of the region’s total output, well above the national average. It also accounts for 287,000 highly skilled jobs, 10% of the region’s employment overall.
Three major sectors account for just under half of Yorkshire & Humber’s manufacturing production with the largest being the Chemicals sector with almost a fifth (17.5%) of industrial output. This is closely followed by the Food and Drink sector (17.4%) and then Metal Products (essentially steel) at 14.1%.
In 2023 Yorkshire & The Humber accounted for 5% of the UK’s total goods exports with the EU being the dominant destination (56%) making it one of the most dependent of any English region or devolved nation. This is followed by the United States (16%) and Asia & Oceania (12%).
Commenting, Dawn Huntrod, Region Director for Make UK in the North said: “Industry remains critical to the growth of the economy, providing high value, high skill jobs and aiding the process of creating wealth across the UK. The new Government has made a welcome bold statement of its intent to tackle the UK’s anaemic growth at national and regional level.
“It should now back this with a radical, cross government, long-term industrial strategy which has the need to tackle the UK’s skills crisis at its heart. This should be allied with the local growth strategies and priorities of each region, including infrastructure and innovation, together with other measures to ensure the UK is now fully open for business.”
Steve Talbot, Head of Manufacturing at BDO in Yorkshire, added: “Over the last decade the manufacturing sector has become vital to Yorkshire & the Humber and the health of the regional economy. Over the last few years, manufacturers across the region have faced multiple external shocks and changing policy priorities.
“They have shown great resilience in overcoming these challenges. There is now an exciting opportunity for the sector to work with the new government on the development of a new long-term industrial strategy. This could unlock vital investment needed across the region to continue to bolster manufacturing output and skilled employment opportunities crucial to the regional economy.”
Four Yorkshire enterprises in running for diversification award
Wold Top Brewery and its sister company Spirit of Yorkshire Distillery have reached the final of the Diversification of the Year award alongside Richard Nicholson from Cannon Hall Farm, South Yorkshire and Annabel Makin-Jones, Sturton Grange, West Yorkshire.
Brewery and distillery source their barley from the original family farm, Hunmanby Grange, which is also home to the brewery.
Co-founder of both Wold Top and Spirit of Yorkshire Distillery, Tom Mellor, said: “The Farmers Weekly awards is a prestigious awards programme in the agriculture industry, and we’re proud to have been judged finalists in the competitive Diversification sector on account of the partnership between the farm, the brewery and the distillery.
“It’s good to know that, irrespective of who wins, the trophy will be coming back to Yorkshire.”
Wold Top is run by Mellor’s daughter Kate and husband Alex Balchin, and his other daughter, Jenni Ashwood, is the marketing director at Spirit of Yorkshire Distillery.
The awards winners will be announced at a gala dinner in October at The Grosvenor House Hotel in London. The Mellor family faces competition from Richard Nicholson, Cannon Hall Farm, South Yorkshire and Annabel Makin-Jones, Sturton Grange, West Yorkshire.
The Farmers Weekly awards are organised by the eponymous publication, which is celebrating the 90th anniversary of its first issue.
Established in 2003, Wold Top brews cask, keg and bottled ales from home and Wolds grown malting barley, hops and pure, chalk-filtered Yorkshire Wolds water.
Home to Filey Bay single malt whisky, Spirit of Yorkshire is a field-to-bottle distillery that was launched in 2016. Its first single malt whisky was bottled in 2019. It is a collaboration between Tom Mellor and business partner David Thompson. It is one of only a handful of distilleries worldwide that uses 100% home-grown barley to produce its whisky.
FSB welcomes launch of Growth Guarantee Scheme
Said FSB National Chair Martin McTague: “The new scheme will help small firms get the funding they require to be able to achieve their dreams. The Growth Guarantee Scheme will run until March 2026, and aims to support 11,000 small businesses over that time period, with 41 lenders already signed up, and 20 already open for applications.
“Small firms’ borrowing environment remains held back by stubbornly high interest rates and some reluctance among lenders to extend finance to firms seen as riskier and less viable due to their size and the diversity of proposals compared to their standard/corporate counterparts.
“The over-application of personal guarantees has also dampened further small firms’ enthusiasm for borrowing to fund expansion which requires corrective action by the FCA under direction of the new Treasury, which the Chancellor said will be the most pro-growth Treasury the country has ever seen.
“We will be working closely with all parts of Government as they look to deliver on the Labour party’s manifesto promise to protect the flow of funding to small firms amid the threat posed by the potential removal of the SME Supporting Factor, which allows lenders to hold a lower level of capital to counterbalance loans to SMEs, in the implementation of the Basel 3.1 standards.
“The Growth Guarantee Scheme will be an important part of the funding landscape for small firms, whose growth will be an indispensable ingredient in overall economic recovery in the UK.”
Leeds firm reducing the world’s carbon footprint secures £500,000 funding deal to power growth
A business dedicated to locating subsurface energy and mineral resources to reduce the globe’s carbon footprint, is powering its strategic growth plans after securing a £500,000 funding deal.
AIM-listed Getech, based in Leeds, which specialises in data-mapping natural resources such as metals, minerals and geothermal energy, agreed the working capital facility with Reward Finance Group.
Getech was formed in 1986 and uses its geoscience data and unique geospatial software to accelerate energy transition away from fossil fuels by developing and leading geo-energy and natural hydrogen projects.
With low carbon technologies requiring significantly more metals than fossil fuels and metal production needing to increase four-fold in the next 20 years, Getech is at the forefront of meeting this global demand. It is partly utilising the funding from Reward to further invest in its data capabilities and adopting a radical new approach to locating metals in previously unexplored territories.
In recent years, Getech has provided its data and expertise to customers operating across an even wider range of energy sectors. With the ongoing global energy crisis, large corporates are needing to take control of their energy needs and are exploring ways to power their operations with geothermal, hydrogen, wind and solar energy sources in close proximity to their business location.
The company is directly enabling businesses globally to meet their Environmental, Social and Governance (ESG) targets, with the working capital from Reward helping it to continue its momentum and innovation programme.
Andrew Darbyshire, chief financial officer for Getech, said: “We’re at a pivotal stage of our business growth and needed an agile funding solution that ensures we don’t standstill. It’s critical that we continue to diversify, explore new market opportunities within green energy and remain focused on our core goals of finding the natural resources vital for the energy transition.
“The team at Reward have been hugely responsive, operating at speed and investing the time in really understanding our business to deliver a working capital solution that is bespoke to our short to medium term needs.”
Harriet Gibbs, business development director for Reward Finance Group in Yorkshire and the North East, said: “Helping provide working capital to such an innovative business that is working tirelessly to reduce the globe’s dependence on fossil fuels makes us immensely proud. The company had experienced a difficult process with the mainstream banks and needed to both turn to alternative finance and identify a lender with the right experience and expertise.
“We get to work across a diverse mix of SMEs to help fund business growth. However, this partnership stands out given how much Getech’s core business goals and objectives align with our own ESG principles and initiatives. We’re committed to being a responsible lender that cares greatly about the environment and are looking forward to seeing the ongoing progress Getech makes on the world stage.”
The deal between Getech and Reward Finance Group was brokered by Bob Maxwell of BTG Advisory part of Begbies Traynor plc.
Clean energy specialist signs four-year deal with industrial company
Sheffield-based clean energy company ITM as signed a 500MW capacity reservation with an undisclosed global industrial customer.
The firm says the reservation secures future production capacity for the manufacturing of its state-of-the-art electrolyser stacks to produce industrial-use hydrogen, and will last until the end of 2028 with call-offs against future projects in Europe and the US during that period.
The two companies have agreed not to disclose further contract details at this stage.
Dennis Schulz, CEO ITM, said: “Today’s announcement is a great example of how close collaboration will unlock competitive and successful green hydrogen projects. Following the already announced capacity reservation for 100MW from Shell, this agreement with yet another large-scale industrial customer is a validation of our technology and credibility to deliver.”
Focus on pro-growth policies for small firms, FSB urges new Government
“To achieve the Prime Minister’s ambition to drive wealth creation in every community, the new Government should look to quickly build on this result with further pro-growth policies targeted at small firms and self-employed people.
“The King’s Speech next week will provide an excellent opportunity for the new Labour Government to show it is truly committed to the success of the small business community.
“Shortly after the General Election was called, we pulled together over 150 growth-focused recommendations to form a manifesto for small businesses and the self-employed.
“In it, we highlighted issues such as the need for planning reform and a Small Housebuilders Strategy to ensure that smaller construction firms are at the heart of delivery plans for new homes and upgraded infrastructure, as well as drawing back foreign visitors who have been tempted elsewhere by reintroducing an expanded tax-free shopping scheme, which could add billions to the economy.
“In order to invest in growth, small businesses need access to affordable finance of various kinds, without lenders discouraging risk-taking by demanding personal guarantees as a blanket policy. We were pleased to secure the evolution of the Recovery Loan Scheme into the Growth Guarantee Scheme, which is now live and making more small business bank loans viable.
“As a recipe for the growth we all need, we hope the new Government makes sure every decision it takes considers the needs of small firms, as well as the indispensable contribution they make to the economy.”
HMRC launches online tool for firms to gauge what VAT registration would mean to them
HM Revenue and Customs has launched a digital tool to help businesses estimate what registering for VAT may mean for them.
The VAT Registration Estimator has been developed after feedback from small businesses suggested an online tool would be helpful to show when their turnover could require businesses to register for VAT and its effect on profits.
A business must register for VAT if:
- its total VAT taxable turnover for the previous 12 months is more than £90,000 -known as the ‘VAT threshold’ – until 31 March 2024 this was £85,000.
- they expect their turnover to go over the £90,000 VAT threshold in the next 30 days.
- they are an overseas business not based in the UK and supply goods or services to the UK (or expect to in the next 30 days) – regardless of VAT taxable turnover.
