SME owners hold the UK education system responsible for skills gaps, according to new data from small business lender iwoca.

The survey of SME owners reveals three in four think the current education system does not adequately prepare young people to take on employment. In terms of hiring, SME owners are first looking for experience in the sector (33%) and the role (28%), before checking for qualifications (4%).

More than half of the SME owners surveyed say the sector does not currently have the right skills it needs to succeed. Of those, almost half say that the skills shortages have been ongoing for at least a year.

These talent shortages are bearing an impact for small businesses – more than two in five say SME owners themselves are having to work longer hours to plug gaps. Delays to growth plans (31%) and hiring temporary workers (25%) were cited as the next biggest impacts of skills gaps felt by the SME community.

The answer to the lack of skills among employees of small businesses could lie in apprenticeships, say SME owners. Over three quarters say apprenticeships are key to solving the sector’s chronic skills issues.

Over seven in 10 (72%) believe the Government should introduce more support for SMEs to help employees upskill. By contrast, a loosening of immigration rules to remedy the lack of qualified talent saw support from just over two-fifths of SME owners.

Seema Desai, COO at iwoca, said: “Skills shortages have hit SMEs hard in recent years, and they have yet to recover. Small business owners are rightly looking for alternatives to plug these gaps, and believe strongly in apprenticeships, educational reform and tailored Government support schemes to try and fix these issues. We must ensure that the young talent coming through today have the skills needed not only to help businesses grow, but perhaps become SME owners of the future.”

Multi-million pound proposals to transform Scarborough’s historic West Pier have been heralded as a “once-in-a-generation opportunity” as formal plans for the scheme are due to be submitted. A planning application is set to be lodged for the £11 million project which is aimed at bringing benefits for the seaside town’s fishing industry, businesses, residents and visitors. The application outlines how the proposed regeneration scheme is centred on supporting and celebrating the town’s fishing and lobster industry as well as replacing the current facilities and buildings, which are no longer fit-for-purpose, with modern premises. The West Pier proposals are part of the £20.2 million Towns Fund awarded to Scarborough in 2021, £5 million of which will contribute to creating modern facilities on the pier for harbour users with improvements for existing pier tenants and businesses as well as restoration work of some of the buildings with historical interest. The harbour and pier area play a critical role in Scarborough’s local culture, heritage and economy with strong links to the fishing and hospitality industries. New facilities and improved welfare for the local fishing fleet will be built, supporting a thriving maritime industry and further boosting the lobster trade. Scarborough is now the second biggest harbour in Europe when it comes to lobster catches. The new vision for the West Pier includes a high-quality seafood restaurant, that will increase opportunities to highlight locally caught produce, and a new public space, which could be used for outdoor events and cultural activities. New kiosks, parking and vehicle and pedestrian management, better offices, sheds and warehousing for the fishing sector and new public toilets will also be provided. The scheme will help these industries to grow, while at the same time creating a great destination within Scarborough’s famous South Bay. Executive member for open to business, Cllr Derek Bastiman, said: “The West Pier project is one of the key cornerstones of the regeneration of Scarborough. “It will respect Scarborough’s heritage as a working harbour while also breathing new life into that area of the seafront for the benefit of the fishing industry.” A number of revisions have already been made across the proposed life of the project so far in response to feedback from tenants and users. This includes an increase in the number of car parking spaces proposed from 60 to 80 and working with local people to champion the pier’s heritage, including a memorial feature to those who have lost their lives at sea. Cllr Janet Jefferson, the local member for Scarborough’s Castle division, added: “Now is the time to make your voice heard. I know there are many people who want to have their say so please do get involved. This is a one-off opportunity to support our heritage fishing industry.” One of the businesses that will be directly impacted by the revitalisation of the West Pier is TG Wood, a fish merchant that has been a fixture in the town since 1970. It is now run by Shaun Wood, who took over from his father. Mr Wood wants the West Pier securing for the next generation. He said: “It’s a fishermen’s pier and the proposals will mean it is still a fishermen’s pier but will also safeguard it for the future. “We need to ensure there is something to pass onto the next generation and by diversifying and offering a reason for people to use the West Pier we are ensuring that will happen. “The buildings here are very rundown and we cannot keep living in the past. This will enhance the area and futureproof the pier.” Shaun Wood’s son, Jack, now runs Cod & Lobster on the West Pier, a fishmongers that will get new, harbour-side premises under the Towns Deal investment plans, and crab and lobster tanks to allow them to sell wholesale. Jack Wood, 26, said: “It is about prioritising the fishermen, giving them new facilities, better facilities and bring the pier into the 21st century. “The scheme will give entrepreneurial fisherman the chance to take advantage of potential new opportunities and seek a higher price for their catch. “Currently, the West Pier is not fit for use and even the look of it just does not appeal and it is not attractive to getting people onto here, either as customers or to work. “This scheme is our best chance of securing the West Pier’s future for everyone.”

Sheffield Hallam University has secured funding to lead a new partnership project to improve energy efficiency and make food processing more sustainable through the development of new technologies. The University’s National Centre of Excellence for Food Engineering (NCEFE) has secured £232,000 to lead the project which will trial a new heating system for sauces aiming to reduce carbon impact while enhancing nutrition and taste. Partnering with Premier Foods, the project involves the development and application of innovative Continuous Flow Ohmic Heater (CFOH) technology, which will be tested on a range of the company’s sauces. Premier Foods is one of the UK’s largest food producers, supplying a range of retailers, wholesale, convenience, and food service customers. This research project is partnering with the company’s dedicated research and development team, based at its manufacturing site in Worksop. Ohmic heating passes electrical current through food, heating it up evenly and requiring less energy than current processes. The funding has been provided by Innovate UK, part of UK Research and Innovation, as part of the Better Food for All Programme, an investment of up to £20 million to support the development of innovative solutions to address significant nutrition challenges. The pilot scale study will address challenges faced by the food industry, such as uneven heating, reduced food quality through over-processing, energy inefficiencies, and negative environmental impacts and could inform future spending on food processing technology. Dr Caroline Millman, senior lecturer and healthier lives research theme lead at Sheffield Hallam University, said: “This is an exciting project, bringing together industry and academic partners, combining our expertise to jointly develop a scalable and energy-efficient heating solution. It will build on existing technology developed by NCEFE and apply it in real-world processing conditions. “This approach will bridge the gap between research and practical applications and has the potential to transform conventional heating and processing methods. This in turn could create new business opportunities, secure jobs, and contribute to the UK’s food and energy security.” In 2023, the global cooking sauces and condiments market was valued at $242.8 billion, with the UK market worth £3.9 billion. Food systems are major contributors to greenhouse gas emissions, both in the UK and around the world, accounting for around one-third of total emissions. Chris Horton, Head of Creative Solutions at Premier foods, said: “As a leading manufacturer in the food industry we can’t wait to embark on this innovative project alongside our esteemed academic partners. “Under our Enriching Life Plan, Premier Foods is committed to helping create a more sustainable food system and to reducing our energy consumption to meet ambitious targets on carbon emissions. “By harnessing our collective expertise in this way, we stand the best chance of making a breakthrough on a more environmentally friendly heating approach which could revolutionise cooking and processing methods within our sector. I’m excited to see what we can achieve together.” The project is due to be launched in October 2023 and will last 18 months.