Current Vacancies

We are particularly seeking representation from the following sectors:

• Innovation
• Science and Medical
• Health and Social Care
• Marketing / Public Relations
• Automotive
• Tourism
• Voluntary

Eligibility Criteria

To be eligible for election to the Area Council, candidates must:

• Be a current Member of the Chamber
• Hold a senior leadership position within their organisation (e.g., Business Owner, CEO, Senior Director)
• Represent a business located in, or reside within, the Herefordshire area
• Demonstrate alignment with the Chamber’s values and culture

Key Responsibilities

Area Council Members are expected to:

• Maintain strong links with Chamber Members at a local level and provide sector-specific insights at Council meetings
• Collaborate with Chamber Executives to engage with local stakeholders, including MPs, Councillors, and public sector officials
• Support and encourage participation in local networking events
• Identify and raise key policy issues affecting the business community
• Actively support Chamber membership growth and retention efforts
• Approve new Member applications and, where necessary, recommend termination of membership for conduct breaches
• Raise broader business concerns on behalf of the sector they represent
• Attend all Area Council meetings, typically hosted at Members’ premises

How to Apply

To apply, please complete the self-nomination form and submit it by 4:00 PM on Friday 14th November 2025: APPLY HERE.

For further information or any queries, please contact our Policy Team at: policy@hwchamber.co.uk

Election Timeline

Voting will open to all Chamber Members within the Herefordshire area on Monday, 17th November 2025, and will remain open for 14 days. The results will be announced by 5th December 2025.

We look forward to welcoming passionate and committed business leaders to help shape the future in Herefordshire.

The post Join our Herefordshire Area Council appeared first on Herefordshire & Worcestershire Chamber of Commerce.

DEFENCE SECTOR
Funding shortages and lack of a clear plan continue to hold back UK Defence, with no new domestic funding before 2027. Growth comes from exporters, while domestic suppliers struggled early in the year. Labour’s Defence Reform stalled after all shortlisted candidates for National Armaments Director withdrew. The new Defence Industrial Strategy focuses on skills, UK SME support, easing export red tape, and six new munitions factories. Geopolitical tensions in the Middle East and Russia-Ukraine remain uncertain. Despite rail strikes and protests, the recent DSEI event in London was well attended and successful.

CONSTRUCTION SECTOR
The industry faces challenges including lack of respect for diverse career paths beyond traditional trades. The Building Safety Act will increase demand for training. Planning delays persist despite government efforts, with biodiversity net gain adding complexity. Banks remain cautious, limiting lending, and rising Capital Gains Tax discourages landowners from selling.

MANUFACTURING SECTOR
As of September 2025, industry reports show UK construction output has declined for the eighth month but at a slower rate. New projects and employment are down, with optimism at its lowest since late 2022. Housing and civil engineering particularly affected, though supply conditions improved due to weak demand. Some companies report job cuts and recruitment freeze to manage rising payroll costs. At REHAU, although some commercial project face delays due to market conditions, enquiries for innovative energy-efficient solutions are rising in response to long term higher energy costs. The project pipeline remains healthy but mixed by sector. Overall, uncertainty and cautious spending persist.

EDUCATION SECTOR
Skills provision is split nationally, with the Department for Education responsible for 16-18-year-olds. Mixed-age classrooms cause challenges. The West Midlands benefits from Technical Excellence colleges like Dudley College, and five new defence colleges were recently announced. Locally, recruitment and sixth form enrolment are close to final, with numbers 240 above target and 350 up on last year, though expected to drop. 160 students study construction and engineering, with 750 resitting exams.

LEGAL SECTOR
The legal market remains strong, with the usual summer slowdown returning to pre-COVID levels except for active mergers and acquisitions. Interest in defence sector access is rising from various industries. Corporate work and private equity investment stay robust, with many small firms seeking private equity. International recruitment grows despite legislative changes. Tribunal delays mean fewer claims, while private wealth enquiries increase due to inheritance and capital gains tax concerns.

RENEWABLES SECTOR
The renewables sector is doing well, with technological advances improving efficiency and reducing costs. Focus on integration benefits homeowners and businesses. Energy providers now offer more tariff options, increasing consumer choice. Heat pump enquiries are strong, and locally, commercial and domestic agriculture demand has risen significantly.

The post Herefordshire Area Council Updates for September appeared first on Herefordshire & Worcestershire Chamber of Commerce.

IT Sector:
Positive growth continues with new clients adopting end-to-end managed IT services. Momentum builds for Windows 11 upgrades ahead of the October deadline. Sales cycles remain short, and post-financial year Capex spending hits record highs.
Recruitment is strong, especially in Sales Support and Technical Engineering, with steady monthly hires. Interest grows from candidates, notably ex-Wavenet staff after their offshore move.
No direct tariff impact yet, though stock depletion may change this. Cybersecurity remains a priority after high-profile breaches (M&S, Harrods, MOJ, Co-Op), prompting some customers to reconsider practices despite general apathy. A Knights of Old director’s LinkedIn interview highlights real cyber risks and business impact.

Construction & Property Sector:
Despite ongoing challenges, our business maintains a strong order book with several major projects underway. Bank funding appetite remains limited, often undervaluing completed commercial properties—typically around 70% of development cost. While understandable for bespoke builds, this undervaluation is less justified for standard warehouses, which continue performing well. The BP Pulse facility, sold above build cost, shows ongoing demand for quality assets. The sector faces a shortage of skilled subcontractors and reliable labour. Recruitment is difficult, and training often lacks value due to unqualified providers, resulting in high costs and poor outcomes.
Rising taxes add strain, and many feel enterprise is undervalued under the current Labour Government, seen as prioritising revenue over commercial understanding—threatening investment, innovation, and growth.

Manufacturing Sector:
The British manufacturing sector faces significant challenges. Rising employment taxes and business costs have led many to halt recruitment and investment. Domestic and export orders have declined, reducing output.
This contraction is the first in a decade, underscoring the tough economic climate. Yet, the sector remains resilient, focusing on financial stability and streamlining operations to manage high raw material, energy, and labour costs. Innovation and adaptability remain crucial to navigate these times.

Heating Industry:
The UK heating industry is shifting as government pushes for Net Zero by 2050. With 22 million fossil fuel boilers in homes and 1.4 million sold annually, change is urgent. In contrast, only 98,000 heat pumps are sold yearly.
Government plans target 600,000 heat pump installs annually by 2028, banning new fossil fuel boilers by 2035, and introducing penalties for manufacturers missing heat pump sales targets. However, heat pumps require home upgrades like better insulation and radiator changes.
A multi-technology approach, including hybrid heat pumps, is more practical. Trials show hybrids achieve 80% heat pump use, enabling faster, broader decarbonisation than full replacements alone.

Travel and Hospitality:
The 2025 outlook for business travel, events, and hospitality is challenging, with stagnation or slight decline likely. Maintaining current levels may be success, while real growth depends on government support and investment. Profit margins are tight, labour costs are set to rise 7–10%, and conference revenues grew only 1.6%. Energy costs remain high despite easing.
Overseas bookings show modest gains but momentum is weak. Worcester MP Tom Collins offers promising regional support. Coordinated action across government, industry, and local leaders is essential for future resilience.

Education Sector:
University offers for September 2025 rise across all institution types, especially high-tariff universities. Despite a 1.2% national applicant increase, UCAS warns mid- and low-tariff universities may struggle to fill places. West Midlands applications fell 1.4%, but Worcester saw a 14% rise, with all schools except the Medical School up on last year.
International student numbers remain low due to visa changes; Worcester received 7,000+ applications, with 25% leading to offers. Congrats to HOW College and RGS Worcester on HW Chamber Business Awards. The High Court dismissed a challenge against VAT on private school fees. The Help to Grow Management course is running summer 2025 cohort, with October applications open, alongside Worcester Executive MBA registrations. TDM partners with Worcester Business School to validate digital degree apprenticeships from September 2025.

Finance Sector:
UK businesses face major regulatory and fiscal changes affecting accounting, audit, tax, and financial planning in 2026. A key revision to FRS 102 from 1 January 2026 introduces new revenue recognition and requires operating leases on balance sheets, affecting tax liabilities, audit thresholds, and tax-advantaged schemes like EMI.
Audit thresholds rise from 6 April 2025, cutting compliance costs but possibly reducing oversight. Increased National Insurance and tighter employment regulations push businesses toward AI and automation investments. A possible Capital Gains Tax hike from 24% to 30%+ in October 2025 may trigger early asset disposals. The Cash ISA allowance could drop from £20,000 to £4,000, limiting tax-free savings. Careful planning and expert guidance are crucial.

Food Sector:
Vertical farming grows crops in stacked indoor layers using controlled environments like warehouses or urban buildings. Technologies such as LED lighting and hydroponics enable year-round, soil-free cultivation, producing much more per square metre while using up to 95% less water and cutting transport emissions.
This benefits the UK by boosting local leafy vegetable supply, reducing imports, and lowering pesticide use. Challenges include high energy costs, costly infrastructure, limited crop variety, and technical complexity. Sustainable scaling requires renewable energy, skilled workers, and supportive policies.

Visitor Attraction/Tourism Sector:
The RHS Malvern Spring Festival (May) and Royal Three Counties Show (June) saw significant visitor increases in 2024, building on 2023’s growth. Trade stand bookings were oversubscribed, allowing rejection of lower-quality stands. Venue Hire attendances were strong, notably Tractor World in February. New conference/event bookings remain robust.
The main challenge is securing medium to large sponsors (£10k+), as budgets remain tight.

Agriculture/Horticulture Industry:
Livestock movements are disrupted by Blue Tongue. A North-South line in England requires animals east of it to have tests and licenses to enter the west. England becomes fully restricted from 1 July. Wales and Scotland ban entry of animals from restricted zones, effectively blocking English livestock and severely impacting Royal Welsh Show entries. Skepticism exists about the decision’s logic and effectiveness.
Sporadic poultry flu outbreaks limit poultry displays to birds from single suppliers/farms.

Defence:
Global instability creates opportunities in Defence. The ongoing Ukraine war remains the primary focus and is expected to continue for decades with no imminent ceasefire. Many non-Defence firms seek to enter the sector, seeing it as lucrative.
The Government’s Strategic Defence Review (June) is vague, lacks funding clarity, and has met scepticism. MOD spending is restricted and preparations for the Defence Industrial Strategy (delayed since last April, expected July) stall progress. A 3-Star-led Defence Reform initiative is underway, with unclear outcomes ranging from no change to radical reform.
Industry hopes it will address procurement inefficiencies, increase agility, improve communication, and balance spending between large multinationals and UK SMEs. The Government aims to boost exports and innovation investment.

Insurance Sector:
After premium rises, the insurance market is easing, with many seeing stable or reduced premiums and wider insurer appetites. Liability, commercial combined, and professional indemnity premiums show most movement; home insurance premiums remain high.
Recent cyber attacks on major retailers highlight cyber insurance’s importance. M&S had £100m cyber cover but faced £300m profit losses; Co-Op and Harrods reportedly lacked cyber insurance. The National Cyber Security Centre urges businesses to strengthen resilience and recommends Cyber Essentials certification.
The FCA reviews regulatory burdens, which account for about 8% of broker costs and impact premiums.

Retail (Equestrian):
The UK equestrian trade is stable, with satisfactory turnover despite economic conditions. Traditionally trade-focused, the business has expanded into direct-to-consumer retail via a new website, selling at full recommended prices. Initial feedback is positive with no concerns from retail partners, indicating direct buyers are loyal.
In the US, operations face challenges from tariff reintroductions under the Trump administration. A 145% tariff on Chinese goods caused shipment delays; resulting price increases (~30% on Chinese goods, 10% on others) are passed to US consumers. This affects the entire industry but maintains parity among competitors. The situation reflects ongoing trade volatility.

Property Sector:

The commercial market is slowing due to geopolitical uncertainty, though demand for high-quality industrial and warehouse assets remains strong amid limited supply. Office demand is mixed, with urban ESG-compliant spaces performing better than provincial areas. Retail is rebounding, attracting investment due to relatively high returns, and there’s growing activity in data centres and life sciences. In the housing market, signs of improvement are emerging, though demand is uneven and pricing sensitive. A potential base rate cut from 4.25% to 4% could boost affordability, with mortgage advances already rising. Housebuilding is supported by national policies, despite local resistance, and recent government funding is set to enhance affordable housing delivery.

Recruitment/Labour Market:

The UK labour market remains mixed, with national uncertainty contrasting with a more buoyant picture locally. Nationally, employer confidence is subdued, with economic sentiment and hiring confidence remaining pessimistic according to the latest Jobs Outlook from the REC. While unemployment sits at 4.6% and vacancy numbers have declined year-on-year, workforce participation has been growing, and pay is still rising—albeit more modestly.

Locally, however, the Midlands stands out for its resilience. According to the latest Midlands Report on Jobs, it was the only English region to record growth in both permanent placements and temporary billings in May 2025. Temp vacancies rose for the first time in nine months, and pay for both permanent and temporary roles increased, indicating healthy demand. Staff availability continues to rise due to redundancies and shifting job seeker behaviour (more the latter), giving employers more hiring options.

The REC’s Jobs Outlook reinforces this positive local sentiment, with mid-sized firms in the Midlands showing strong short- and medium-term hiring intentions—particularly in temp recruitment. Whilst UK employers are cautious, regions like ours are quietly powering forward, proving that confidence and opportunity still exist amid wider economic noise.

The post Joint Area Council Meeting Notes (20/06/2025) – appeared first on Herefordshire & Worcestershire Chamber of Commerce.

Business is steady with one month up and the next month down, but it could be much worse. We have been affected this year by a shortage of stock caused by moving production of some items from China to India, although some of these issues were internal, not allowing enough time for the new suppliers to build up production. It is a lesson learnt!

Going into next year stocks will be much better and hopefully retailers will have sold the overhang of stock they inherited from the Covid period. All we need is demand to hold up, unless of course the Chancellor kills it.

Freight rates are fairly steady but the sterling exchange rate is slipping against the dollar so that may push up our import costs.

We have been successful in securing two grants, one of £21,000 towards a new heating system we are installing and another of £25,000 towards the costs of exhibiting at a trade show in Germany in February.

A lot of time has been spent at our warehouse in the US. We are finding staffing a real problem here in New Hampshire. There seems to be pretty well full employment and people are very picky about the job they take. On the other hand the US staff we have do a good job. There seems to be quite an upbeat mood about the new President taking over in January although people are concerned about the imposition of tariffs which they seem fairly sure will happen.

What I am really concerned about are the proposed changes to IHT for business owners. There is such a lot of noise about farmers and I fully back their protests, but there seems to be very little noise from the business community. Why aren’t there more protests from the business community?

Retail (2)

Trading from shows are up. Retail is strong, predominately online. Although very weather dependant in this business.

Regarding the political changes, the press has a large part to play.

Transformational year for retail in general – preorders, paying with phones, click collect. Those who have done well are those that been agile, adapted and moved with the technology.  AI will be next and this will help with internationalisation. The introduction of chat bot has been good for when resource is not around, alongside using semi-automated email replies using human knowledge base. Voice activated AI customer services will also be next. These changes enable resource to be used on more proactive, fulfilling, value add roles. Innovation key to future.

Education (1)

Budget

The UK Government announced in its recent Autumn budget that Day to day spending on the NHS and education in England is set to rise by 4.7% in real terms this year, before a smaller rise in the following year.  When you delve into the small print of the 170 page accompanying budget report, you see that spend on education is actually predicted to grow by 3.4%.  The report include plans: “To raise school standards for every child, the core schools budget will increase by an additional £2.3 billion next year, increasing per pupil funding in real terms. This further supports delivery of the government’s pledge to recruit 6,500 teachers.”

Other announcements included:

expanding the government’s commitment to skills by providing an additional £300 million for further education to ensure young people are developing the skills they need to succeed. In addition, the government is:

1. investing £40 million to help deliver new foundation and shorter apprenticeships in key sectors, as part of initial steps towards a reformed Growth and Skills Levy.
2. committing to delivering the Lifelong Learning Entitlement (LLE), with a revised launch date of January 2027. The LLE will expand access to high-quality, flexible education and training for adults throughout their working lives.

There was also confirmation that the first new nursery places in primary schools in England will be rolled out from next year, along with breakfast clubs.

The government also announced further changes including new report cards on schools and a new mix of subjects to be taught in England’s schools.

Following announcements at September’s Labour Party conference that VAT will be added to private school fees within 100 days despite some opposition from families arguing they will be penalised, it was later confirmed in the budget that starting January 1, 2025, private school fees will be subject to a 20% VAT rate.  Early responses to the Budget include an announcement of legal action by private schools to challenge the government’s plans for VAT on private tuition fees.

Apprenticeships

The government’s focus on a revised skills levy and a focus on new foundation and shorter apprenticeships in key sectors, looks to be offset by reducing support for higher level apprenticeships including most Level 7 apprenticeships.  FE week reported earlier this month that the axing of level 7 apprenticeships from levy funding will be “pretty widespread”, according to Jacqui Smith, the skills minister in a warning to the sector at the AELP Autumn Conference.  She suggested a blanket ban on public subsidy for the programmes is coming and argued that “we’ll be asking more employers to step forward and to fund level 7 apprenticeships outside of the levy.”

This has raised significant concerns for training providers, universities and employers who fear that removing all level 7 apprenticeships from the levy will disproportionately hit the NHS, schools, councils and the civil service which often spend their levy on these apprenticeships.  The Chartered association of Business Schools, CBI, UUK and CMI have collectively lobbied government on the wisdom of this claiming that there were 17,490 Level 7 business and management apprenticeship starts in 2022-23. According to the CMI 60% of Level 7 management apprentices are in public services such as the NHS, social care and local government.

Very recent plans at the University of Worcester to develop customised pathways for the Level 7 senior leadership apprenticeship to provide developmental opportunities in education and healthcare have now been shelved.

Help to Grow

Surprisingly, Help to Grow, the DBT-funded mini-MBA programme that was the brain child of Rishi Sunak (whilst Chancellor), has received a small mention in the budget and looks set to survive the anticipated cull of previous government’s ventures.  Worcester has been surprised to welcome agreement of an additional funded allowance by DBT to run a 4^th Help to Grow programme next year commencing Feb 2025.  There are more than 50 Herefordshire and Worcestershire SME business leaders represented in recent alumni from this programme some of whom have subsequently progressed onto the Worcester exec MBA programme.  If we are successfully in having confirmed fourth cohort allocations for financial year 25-26, then we will be looking to co-develop a Help to Grow programme with our friends here at NMITE for a Herefordshire based programme.

Education (2)

HEI is still a tough gig.  Student recruitment is a primary focus, juggling this against the changes to international student recruitment.  Initially circa 40% HEI’s were forecasting a deficit, this has now increased to over 70% of Universities are expected to be in deficit in 2025.

Increased costs: energy, Salary, Increase NI – all impacts the sector.

NMITE continues to focus on portfolio development and commercial growth to mitigate some of these challenges. Increase in collaboration with local businesses and organisations.

Flooding – Holmer Yazor Brook.  Jesse has written to Secretary of State for education and I am meeting with the leader of the Council.

Education (3)

c.50% of school leavers got to vocational roles. The college has had a rising number of vocational students for a number of years, including plumbers, construction, electricians. But these are space hungry qualifications to run. There has also been a steading increase in HND/HNC technical areas, levels 6 and 7.

New space has been dedicated to Sustainability qualifications to ensure the current are qualified in modern sustainable technology.

The apprenticeship levy should be able to be used for all training, including higher level qualifications.

More recently there has been a greater requirement for those with special needs, which does increase costs and resources.

Increases from the budget will be a big impact as 2/3 of the Colleges costs are staff costs.

Food, Drink and Agriculture (1)

Hospitality now coming into the seasonal busy pre-Christmas and Christmas period and currently trade remains reasonably positive and buoyant. However, serious issues for the sector came out of the recent budget namely business NI increases,  minimum wage increase, further duty increases and a reduction in business rates relief – which could have significant implications for the sector. The changes will almost certainly lead to price rises across the sector as with slim margins already being experienced there is little if any room to absorb further costs. Growth across the sector both in investment and labour may be somewhat curtailed at least during the first half of 2025 as businesses adjust to the new tax regimes etc.

As no doubt everyone has seen the agricultural sector is in turmoil mainly due to the change in IHT announced in the last budget coupled with continual cost pressures in a sector that also operates on thin margins. The underlying atmosphere is one of betrayal, mis-understanding of the sector and militancy – the farmers’ disappointment will no doubt lead to further protests and demonstrations. Coupled with this is the significant wet weather conditions of late, which again has caused issues.

So both sectors both hospitality and farming will continue to have significant ongoing challenges as the year draws to an end and budget changes start to bite in the first half of 2025.

Agriculture, Horticulture, Farming, Tourism (2)

The Three Counties is a Showground used to promote agriculture, farming, rural skills and crafts via fundraising shows and showground hire This year over 850 businesses have exhibited and the year has been outstanding.

The business is driving higher volume ticket sales, whilst holding prices. They have been oversubscribed on trade stands. The venue has been hired for 63 events, most weekends of the year. Costs have increased but these have been pushed back where over and above inflation. Employers NI is a huge challenge.

In terms of agriculture – the farmers union have responded directly to the budget, trying to debunk some of myths around changes. In horticulture, the Royal Horticulture Society are pushing peat free at shows in 2026 which will have an impact on nurseries and their desire to participate in shows.

Defence

Defence is a mixed bag. Exports are good for those offering niche capabilities (such as night vision, specialist munitions, and drones) or commodity capabilities that are in short supply/high demand (such as medical kits) – with the destination being one of the many global conflict hotspots. Domestic defence procurement remains frustrating, inefficient and inconsistent. By my calculation MOD has had a spending freeze imposed upon it for about 50% of the FY – whilst the larger companies will survive, expect several small companies, or those still trying to manage debt from the COVID period, to disappear over the next 12 months.

Trump won convincingly, as predicted, and this will affect the Defence industry over the next few years.  If he does what he says, then he will force a settlement between Russia and Ukraine, which will obviously have an impact on UK Defence exports to that region.  However, he will also put pressure on NATO countries to commit appropriate GDP allocations to their defence budgets – and this will create demand for local defence companies, particularly in those areas where UK leads or excels.

The labour government is unlikely to prioritise defence over other more ‘left voter leaning’ departments, and the recent budget did nothing to help MOD. Yet, Labour realises that they need to maintain a defence industrial base – remembering that the first role of government is to protect its people! It seems to want to do this by driving exports, and I expect the UK Industrial Strategy paper (due Apr 25) to articulate guidance. There is logic to this – UK is home to 7 million businesses but only 132K of them export anything (across all sectors). Additionally, there are countries that are investing in defence and attempting to move away from a reliance on Russian military technology (as the supply chain is no longer viable) – these include Vietnam, Korea and Thailand. This creates export opportunities and the Government is trying to sign agreements with other friendly nations to smooth the export process (a recent example being a G2G agreement with Singapore).

Geo-politics will shape everything. Expect Trump to ‘back’ Israel in the short term, most likely telling Netanyahu to ‘get it done quick’ – that will bring its own issues and undoubtedly create problems between the West and the Arab nations. China’s activities in the South China Sea are causing issues for ASEAN countries, and whilst China is the dominant regional power, Indonesia and Japan are significant players. The Taiwan situation is not getting better, and it is reasonable to assume an inward-looking Trump government is not going to commit forces to protect sovereignty issues in Asia. Russian and Ukrainian activity is showing signs of escalation, and neighbouring states are nervous about what happens next, noting that Ukrainian forces are an ideologically disparate group.

Building and Construction (1)

As of Nov 2024, residential construction-starts rose 1% on the preceding three months but fell back 8% on 2023 figures. Private housing is performing well, and social housing has stabilised. Non-residential project-starts grew by 2% against the preceding three months and stood 1% up on a year ago. Hotel & Leisure was the vertical that was the strongest growing 50% against the preceding three months and almost doubling (+93%) compared to the same time a year ago. Material prices fell by –0.7 between September 2023 and September 2024. Changes to the planning system, along with increased funding and making local housing targets mandatory, will improve the number of construction starts, according to the government.

The UK manufacturing PMI (PDF) in October 2024 was 49.9, down from 51.5 in September. This is the first time the PMI has fallen below the neutral mark of 50.0 since April.  Although manufacturing output increased in October, the increase was slight, with reduced intakes of new work, owing to a lack of market optimism, slower economic growth, stretched supply chains and concerns at the time about the impacts of possible announcements in the UK Budget.

Overall the level of orders remain steady. Our industry as others, are however considering how to tackle the increases in living wage and NI contributions.

Glenigan Index of construction starts to end of October 2024 | Glenigan

Manufacturing: Key Economic Indicators – House of Commons Library

London affordable homes: Construction of new properties down 88%.

Building and Construction (2)

Lots contact with farmers recently around the latest budget Farm Inheritance Tax changes. Numbers from Government are different so it’s difficult to see what the true extent of this issue is, but it is absolutely desperate for some, possibly manageable for others. The Government should focus on investors and not on small farms who barely make a living. The imposition of IHT on farmers represents a complete lack of understanding of the detail or lack of proper consultation.

Flooding in Ewyas Harold 4 times in 5 years. This is a combination of the floods and the Environment Agency’s unwillingness to dredge rivers.

The local Planning Authority seems challenged at present to cope with the many layers of bureaucracy imposed on it and their over cautious systems.

Transport

National insurance – ouch! £58k impact

Increase in minimum wage an issue due to the narrowing of the gap

Haulage company insolvencies: 2023 = 494, 2024 (six months) = 170. Average fleet size has increased 36% over ten years.

People with HGV licences decreased by 5% between 2023 and 2022

Currently 33% of companies considered at maximum risk

81% of domestic freight is moved by road by tonne-kilometres (175 billion). 12% water and 7% rail.

Now over 1.1m zero emission vehicles (all types) but still a relatively small take up with HGVs

32 million empty seats in vehicles on the morning commute, apparently.

Despite the conflict in the Middle East, fuel costs seem relatively stable with national average around the 107ppl mark. A strengthening of the $ will affect this, however.

Snow, ice and floods has been a challenge and added to our costs over the last couple of weeks.

Locally, discussions have recently taken place with MHDC regarding parking and access to the businesses on Spring Lane, Malvern, following two accidents. They have responded, promptly, and are discussing internally.

Life Sciences

The long-term demand environment remains strong, with trends starting to stabilise after a prolonged period of slower demand. Contract Research Organisations (CROs) are still observing a strategic shift as clients focus on reprioritising pipelines and optimising budgets. Larger clients are channelling more resources toward commercialising late-stage programs.

Gross book-to-bill performance remains robust, supported by steady new business awards. While net book-to-bill has continued to be softer due to some cancellations, this reflects an industry-wide effort toward budget optimisation and focused pipeline development.

Although IPOs and new biotech company formations have slowed, venture capitalists remain committed to investing, taking a more targeted and phased approach; this slowing the development and timelines of new products.

Overall, the budget highlighted the government’s recognition of life sciences as a critical sector for economic growth, signalling stability and long-term investment. However, concerns remain about whether tax increases and a lack of additional investor incentives might hinder progress in an innovative industry with significant risks.

Insurance

Regulation is becoming an increasing burden in the insurance sector with it now taking up a significant operating cost. The government have stated they want to look at pricing of car and home insurance. The FCA are unhappy with how some providers are charging inflated amounts for instalments, disproportionately high commissions and conflicts of interest in the supply chain – the clamping down on bad practice is welcomed but needs to be targeted, proportionate and without detriment to smaller policyholders.

Premiums for home & Car remain high but commercial insurance premiums are softening with some, such as professional indemnity, coming down.

Cyber insurance continues to be a focus, ransomware and fraud being the main areas of claim. Cyber Essentials is now 10 years old and statistics show policyholders with cyber essentials are 92% less likely to make a claim. All organisations should therefore look at achieving Cyber Essentials.

Climatic and weather events are having a tangible impact. More properties in the region are becoming difficult to insure against flooding. Globally 2024 looks like being the most expensive year for claims on record due to the numerous devastating weather and climate related events.

Real Estate

Year dominated by general inertia, it’s been sluggish with many transactions being delayed as parties waited, first for the general election and then, the budget. This was followed by a spike in activity during October as transactions were undertaken in advance of the budget at the end of the month.

Whilst the recent cut to the base rate was expected and helpful, the upshot of the budget would appear to be that the changes made will be inflationary and it seems to be widely expected that there may be limited, if any, further cuts for the time being. That being said, there is arguably stability now in terms of a newly elected government where the ‘rules of play’ are now known (if not necessarily agreed with!) and as such businesses in particular can start to plan for the future (to a greater extent than they have been able to in recent years). We hope that this will stabilise the market and deliver confidence such that transactional activity picks up across all sectors of the market.

There is a significant amount of money (in particular from the Middle East and North America) wanting to deploy in UK real estate and, in particular, into Industrial and Warehouse stock where there continues to be perceived rental and capital growth potential. Availability of buildings within this sector at a local and regional level remains constrained despite availability of space increasing nationally with retailers and 3^rd party logistics providers relinquishing space taken up during and after the Pandemic. Speculative development has reduced in line with falling economic confidence so available space is principally limited to existing buildings.

Planning – waiting for government to confirm changes to the National Planning Policy Framework (NPPF). Huge issues persist in local planning departments (lack of staff), not helped by issues for the large house builders in terms of higher construction costs, increased building regulations (particularly for higher buildings post Grenfell) and a reduced appetite from Registered Social Landlords to take on affordable housing due to reduced funding. These factors have combined to substantially reduce the volume of new homes being delivered nationally. We expect much activity in this space in 2025 as the trajectory for local plans is set through the implementation of the new NPPF which will, in turn, put pressure on most local authorities to identify more land to deliver housing.

IT Tech

A further continuation to the positive growth since the start of the year with a steady number of new logos added to the business taking Managed IT solutions and cyber security-protection.

Decision making and sales cycle timelines has improved significantly.  Price based decisions making appears to be the main discussion points currently vs the opportunity to attain a better, future proofed solution.

Recently doubled our sales force and some of the support functions to grow the business. Recruitment and staffing very buoyant.

Microsoft Windows 10 – 11 Oct ’25 upgrade – get in quick as process are escalating by the month from vendors (HP & Dell).

Cyber remains a key focus in the industry…..yet another AIM listed midland company got compromised with 550 employees down and non-operational.

Recent survey from McKinsey / Garner suggested that IT and Telecom sector will see strong and continued investment from businesses with 80% companies overwhelmingly agreeing that better technology would help their employees do their jobs better and increase productivity.

Summary – still lots of demand for good technology, reliable services and faster networking , office moves still quite prevalent – and a  good book of business through qtr 1 / 2.

Legal

The recent budget caused a significant amount of consternation for clients both before and after it was announced.

The expected changes to CGT and other tax implications resulted in a significant increase in transactions being undertaken or expedited in order to ensure matters completed before 29 October 2024. That resulted in an extremely busy period for the legal sector and other related professional services between the general election and the 29 October 2024.

By comparison, the sector now feels quite calm and quiet. That said, during its first 100 days, the Government has announced a significant amount of legislative changes which will affect businesses and which are due to come into force over the next 18 months, with one of those changes – the duty on employers to take all reasonable steps to prevent sexual harassment I the work place, including third party harassment having already taken effect. The scope of the impending changes to employment legislation in particular, is the widest in a generation and, coupled with the intended increase in employer national insurance contributions, many businesses are concerned and are understandably in a period of review and reflection in order to plan for the changes. Likewise the changes to IHT and agricultural property relief have caused significant concern, particularly for smaller local agricultural clients.

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Difficult period for the University sector, with restrictions on international students leading to less coming into the country to study and a financial shortfall.

Most students got their first choice this year too, leaving clearing quiet this year. Still working on promoting NMiTE as a new University choice. First cohort have now graduated, and have been employed in some great roles locally. The driver for NMiTE is still to keep young people within the County, supporting them to graduate and retaining skills locally. Also attracted and retained students from wider than the County, and the recently graduated cohort have remained in employment locally. New courses for next year include  mechanical engineering and construction management. Likely to have a January cohort too, to boost numbers and support those who have changed direction from Sept 24 plans/starts. Now have 100 students and aiming for more next year.

FOOD AND DRINK AND AGRICULTURE

Hospitality industry – ‘miserisms’ really affecting the feel good feeling and hospitality sector. Lots of stories of pubs and eateries shutting, but others still very successful. Many customers now looking for niche, bespoke products. Those selling core, basic  products maybe struggling.

October budget worry is about duty – increasing this will increase cost and mean more upheaval. Low alcohol drinks are becoming more popular. Guinness report that 40% of future sales will be low alcohol versions.

Some challenges for sectors to get MP representation in Government on re-formed committees and sector groups. 2 new future legislative concerns – Extended Producer Responsibility (EPR) – packaging tax if over £1m t/o and 25 tonnes of packaging – this will apply to all sectors. Legislation was Oct 23 and the first charges could land this October, but many maybe unaware of this legislation. Deposit Return Scheme (DRS) – fairly new, where glass charges in the future will have a premium, but small refunds will be given at deposit sites for glass bottles returned.

Farming and Agriculture has seen yields down, but better grapes and apples, which will lead to a better product. Rain always a challenge. Labour issues remain, although labour in factory somewhat stabilised.

LIFE SCIENCES

Long term demand environment remains healthy, but trends have normalised from previous unprecedented levels and all CROs are observing pipeline reprioritisation and tighter budgets among most type of clients, with a noticeable shift in larger client spending towards commercialising their late-stage programs, resulting in less focus on early stage projects.

Gross book-to-bill remains strong with new business awards, but net book-to-bill has declined due to increased cancellations, leading to a drop in backlog. These higher cancellation rates are driven by budget constraints, funding issues, and pipeline rationalisation, affecting both global biopharma and small biotech companies.

IPOs and the creation of new biotech companies have slowed, but VCs still have capital to invest, though they are deploying it more selectively and in stages. This is expected to have a significant downstream impact, with the belief that pharma will continue to rely on biotech licensing, partnerships, and M&A to advance their pipelines and fuel growth.

While there are some signs of stabilising trends based on external factors such as macroeconomic environment significant improvement is unlikely in the second half of the year.

Geopolitical tensions are likely to make China less attractive to Western clients, further emphasising the importance of US and EU-based Contract Research Organisations.

Strategic outsourcing for phases of the development of life-saving treatments for rare diseases and other unmet medical needs presents a compelling opportunity to enhance cost efficiency and accelerate time to market, making the long-term outlook positive.

MANUFACTURING/CONSTRUCTION

During August, residential construction starts increased significantly vs May-Jul (+22%). Private housing is performing particularly well. Despite this positive trend, the market remains operating circa -8% vs 2023 levels. Non-residential construction starts fell in August vs May-Jul and remain circa -9% down vs 2023 levels.

Regarding manufacturing output, September witnessed a fifth consecutive month of growth, according to the UK Manufacturing PMI (Purchasing Managers’ Index). While positive, growth was at a lower level than in previous months and cost burdens increased. There is also a feeling of uncertainty within the sector regarding the impact of the Autumn Budget.

The Labour Government have announced that in order to achieve their target of building 1.5M new homes, they will impose mandatory housing targets on local councils. Further planning reforms are expected in the coming months with a review of the greenbelt also underway.

On Friday 20/09, The UK’s sixth biggest construction contractor, ISG, announced its collapse. This has made 2.2K employees redundant and the impact on creditors and subcontractors is a major concern for the industry.

Sources Manufacturing: Key Economic Indicators – House of Commons Library (parliament.uk) Glenigan Index of construction starts to end of August 2024 | Glenigan ISG: Construction giant collapse sees 2,200 jobs cut (bbc.com) Housing targets increased to get Britain building again – GOV.UK (www.gov.uk)

Finding people still remains a challenge, strategy remains to seek those with right attitude and internally train skills. To support this changes in the levy rules would be welcome, including paying the cost of part of the apprentice salary to cover the learning time. Minimum wage increase an ongoing challenge, including the knock on effect on the total salary bill.

CONSTRUCTION

Sector need led by demand. Ongoing need for land, simplified planning processes, including timeframes and layers of committees. Pre application process is now encouraged, adding a further 2-3 months to the planning cycle, typical timeframe from start to handover is 3 years, from 2 years.

Labour policy to tackle planning challenges doesn’t yet have the detail for sorting out the hugely complex issues, including bio-diversity, local infrastructure as well as the many layers of the planning process. These challenges can stifle enthusiasm. Labour still a challenge plus overall wage inflation.

DEFENCE

Defence has not ‘moved’ since the last update.  Continued spending freezes have significantly impacted the sector and everyone I speak to is reporting ‘business is unusually quiet’.  Concerns that ‘old labour’ is back, and despite the rhetoric channelled through left-leaning media, the next 4 years is going to be challenging as Defence takes a lower priority in Government Spending.  The Unions are already flexing their power and influence, and recent pay rises (train drivers, doctors etc) have to be funded from somewhere; the NHS is arguably broken and politically untouchable, Education is financially struggling, Policing and UK Border security continues to be a hot topic, so Defence is the easier target….

The US Elections in November will have significant impact.  The media is heavily biased towards Harris; however, a very close result is predicted.  If Trump wins, expect a plan to stop the war in Ukraine, refocus US spending on domestic issues, and place increased pressure on European NATO members to ‘do their fair share’ (as apart from Poland, none do).  If Harris wins, nobody knows what will happen. Democrats tend to be more internationally minded (potentially good for UK), however, domestic issues in US are significant (crime, drugs, unemployment) and will surely affect US involvement in overseas issues.

Over the short/medium term, big UK Defence companies should be OK, as instability in the Middle East, Africa, Asia and Central Europe create sales opportunities for the likes of BAE, but small companies need to be agile and look to create export opportunities.

ENERGY/SUSTAINABILITY

Labour Government Pledge Post Election:

• Delivery of the mission to boost energy independence and cutting energy bills through clean power by 2030
• Taking control of energy with Great British Energy
• Upgrading Britains homes and cutting poverty through Warm Homes Plan
• Standing up for the consumers by reforming the energy system
• Creating good jobs in Britain’s industrial heartlands
• Leading on the international climate action based on domestic achievement

What does this mean?

1. Clean power for 2030

Double off-shore wind

Invest in carbon capture and storage, hydrogen and marine energy

Lifetime of Nuclear plants will be extended

A strategic reserve of gas power station to be maintained

2. Great British Energy – create a new publicly owned company; £8.3b investment
3. Energy System Reform

Work with industry to upgrade national transmission infrastructure and rewire Britain

Ensure a tougher system of regulation that puts customers first

4. Warm Homes Plan

Invest £6.6b to upgrade five million homes to cut bills

Offer grants and low investments in insulation and improvements such as solar panels, batteries and low carbon heating

Work with the private sector to provide further private finance to accelerate home upgrades

Ensure homes in private rented meet minimum efficiency standards by 2030

Cut energy bills for good, taking up to £1,400 off the household bill and £53billion off for businesses

5. High quality jobs

Invest in industries of the future through the National Wealth Fund to create 650,000 new jobs by 2030

Reward clean energy developers with a British Jobs Bonus, allocating up to £500m per year from 2026

6. Accelerating Net Zero

Support the introduction of a carbon border adjustment mechanism

Make the UK the “green finance capital of the world” mandating UK regulated financial institutions to implement credible transition plans that align with the 1.5 degrees C goal of the Paris agreement

Technologies:

Heat Pumps: There has been significant growth in this sector with July 2024 being the best month for Boiler Upgrade Systems, having doubled compared to July 2023.

Battery Storage & SMART Technologies:

The ability to store energy sits at the heart of any energy efficient ecosystem. Customers can store cheap clean energy in their battery, then discharge it at the right time to run devices in the home.

Through SMART technology battery storage can link to EV chargers, Air Source Heat Pumps, Solar, Smart Plugs and Smart Meters with usage monitored through energy management applications.

Integrating systems moves away vis single system and silo installations increasing efficiency and reducing energy bills.

TRANSPORT

A busy time for the industry as we struggle through the holiday season, bank holiday and the back to work / Christmas uplift.

Confidence amongst the sector is at a all year high and the number of insolvencies have slowed down to normal levels.

The cost of fuel at the lowest level for 15 months although the retail price still seems disproportionately high.

Availability of drivers have improved although there are a lot of novices, supported by the Government boot camp scheme with 90% support to obtaining licences, but as you can appreciate, this is just the start of the learning journey.

HGV technicians still an issue with Volvo transferring staff from South Africa.

Shortage of training facilities, inadequate funding, lack of interest to join the industry and the challenge of fast changing technology (EV)

Road conditions and driver facilities remain a high level lobbying issue for the Road Haulage Association.

A grim milestone of 500,000 road deaths since 1926 in the UK.

EU experienced 100,000 road deaths in the last five years which is the equivalent to a fully loaded A350 crashing with all loss of life, every week.

This is despite great improvements in technology but no doubt working against it is congestion and distraction.

A third of all crashed on UK roads involve someone driving for work.

Construction remains the most dangerous sector, but with falls from height the most common accident across all sectors.

Just an interesting concept is the change in interpretation of job requirements between managers and teams with managers assuming that Above and Beyond is the norm and that everyone will be keen to progress  and do more than the basics of the job.

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After a difficult start to the year for hospitality/pub sector, mainly due to cost of living crisis coupled with poor weather, the succession of major sporting events (football, tennis, cricket) has seen an improvement in the 2nd quarter of the year. Hopefully, this will continue across the summer as we come into the busy holiday season. However, cost pressure remains a constant as do staffing issues. 62% of “cider” value is in the on trade (pubs etc) so this sector needs to remain strong. The average pub serves approximately 5000 pints of cider per annum and hence the pub market remains critical to the sector. After a steady decline in the overall cider market since 2010 the market is now seeing a small increase mainly due to growth from the  “craft sector” and now represents approximately 5% of total alcohol sales (Beer 36%, wine 24%, Spirits 32%). Consumers are certainly looking for quality over quantity. There continues to be a movement towards lower product ABV% with producers looking to capitalise on the HMRC Duty benefits of lower strength products i.e. the lower the ABV% the lower the duty paid.”

A new term is being used in the press, ‘UPF’ (Ultra Processed Food) and their possible link to early-stage cancer and disorders in young people. UPF’s are manufactured from industrial substances and contain additives such as preservatives, sweeteners, manufactured colours, flavourings, and emulsifiers. UPFs vary but tend to have higher levels of added sugars, saturated fat, as well as less fibre, protein, and nutrients. These foods are widespread in our diets often because they are time saving and convenient.

Studies of food diaries of adolescents showed the consumption of UPFs was highest among those from deprived backgrounds, those of white ethnicity, and younger adolescents in families with food poverty. Adolescents eat or drink on average a diet containing 66% of UPFs.

Dr Yanaina Chavaz-Ugalde, from the Medical Research Council (MRC) Epidemiology Unit said “Adolescent’s food consumptions purchases, and practices are influenced by many factors, including their home environment, the marketing they are exposed to and the influence of their friends and peers. Adolescence is a crucial time in our lives where behaviours begin to become ingrained”. They hoped the findings could help towards contributing to more effective policies to combat the negative effects of UPF consumption among young people and the ripple effect this has on public health.

UPFs have been suggested as one of the key drivers in the global rise in diseases such as obesity, type 2 diabetes, allergies, and cancers (often related to digestion).

The ten worst ultra-processed foods:

Energy Drinks

These legal stimulants combine sugars in the form of glucose and sucrose with ingredients like caffeine to boost metabolism and increase alertness. Although said to sharpen our focus when consumed regularly they make the heart work

harder and faster and may have serious health implications especially when consumed by children and young people.

Mass Produced Bread

This is the type that covers most supermarket shelves and is classed as a UPF. As well as the staple bread ingredients (flour, yeast, salt, and water), it typically includes additives for the purpose of speeding up the manufacturing process and extending shelf life. Examples include emulsifiers, preservatives and sugars. Mass-produced bread is said to make up as much as 11 per cent of the calories we eat, so if this is relevant to you, buying the best you can afford, with minimal additives, may make a useful reduction to the amount of UPFs you consume.

Breakfast cereals

Many popular cereals are classed as UPFs because they contain highly processed grains as well as additives, such as invert sugar syrup, salt, preservatives, and colourings.

Hot dogs

Processed meat, like sausages, are thought to carry a greater risk, as they contain additional nitrates as well as high levels of saturated fat and salt. Long-term consumption of red meat, and particularly processed meat, is associated with an increased risk of all-cause mortality, heart disease and type 2 diabetes in both men and women.

Vegan ‘meat’

These highly engineered products are designed to mimic the texture, flavour, and appearance of conventional meat. For example, a clever use of the carbohydrates known as ‘reducing sugars’ (such as dextrose, xylose or arabinose) and colourants can create the effect of a colour change from ‘raw’ red-pink to brown during cooking.

Other additives, like methylcellulose, are used to create a meat-like bite, while carrageenan improves the slice-ability when served cold. Flavour enhancers like monosodium glutamate as well as emulsifiers, stabilisers and fillers are also used to adjust the taste and texture of the plant protein. As these chemicals have varied effects on the body, they shouldn’t be consumed regularly.

Chicken nuggets

Although we might assume they’re made from lean breast meat, chicken nuggets are likely to include other parts of the bird, including tendons, skin, bone, collagen and fat. Other ingredients include starch, salt, oil, egg powder, glucose syrup as well as stabilisers and colourings.

Reformulated potato snacks

Reformulated potato snacks, such as Pringles, are made from dehydrated processed potato, refined vegetable oils, rice and wheat flour, emulsifiers, salt, and colouring. Depending on their flavour, they may also include monosodium glutamate, hydrolysed protein powders and glucose syrup.

During manufacture the ‘dough’ is rolled, pressed, and cut into stackable shapes; these are then fried in hot oil and coated with flavourings. The high temperature potentially generates a substance called acrylamide, exposure to which may be carcinogenic.

Margarine

Often marketed as ‘heart healthy,’ these spreads are highly processed. They typically combine different vegetable oils that undergo a process called hydrogenation – this solidifies the oil, so it acts more like a solid fat. It’s this process that creates ‘trans-fats’ which are now known to be as harmful to the heart as some saturated fats. Margarines also contain emulsifiers to improve their spreadability and colourings and flavours to mimic the appearance and taste of butter.

Vegan ‘cheese’

Often made from a plant-sourced, saturated fat like coconut oil, these ‘cheese’ alternatives rely on the addition of starch, stabilisers, colourings, and flavourings to create a product that mimics real cheese. They usually contribute little (if any) protein, and no calcium. They are also typically high in fat, saturated fat, and salt. Unlike other plant-based alternatives, vegan ‘cheese’ is not typically fortified with vitamins and minerals, and as such has a poor nutritional profile.

Ready meals

Most of us are short on time, so it is tempting to fall back on shop-bought ready meals. But with convenience comes cost, and not just a financial one; these meals typically contain preservatives and other additives frequently used in UPFs to make them last longer and look and taste good. Research suggests supermarket ready meals fall short on nutritional contribution, with many being high in saturated fat and salt.

What does this mean for my health?

UPFs are typically designed to be easily eaten, with a high calorie density and additives that tend to confuse our “I am full” trigger. This gives them a moreish, addictive quality, meaning we are likely buy and eat more. Their main ingredients – oil, sugar, salt, flour, and starches – makes UPFs high in fat, sugar, and salt and low in vitamins and minerals, while also being devoid of the protective plant compounds found in many whole foods.

Education

This week, the new UK government has signalled its response to the current financial challenges facing the universities sector, with the OfS warning that up to half of all universities are likely to be declaring a deficit in their finances this year.  The government has continued to echo its support for the current ‘graduate visa route’ which enables international students to study at UK universities.  As ‘Student Clearing’ fast approaches, there remains a small but significant reduction in domestic applications to UK universities, which is similarly reflected across the West Midlands.

Closer to home, Worcester Business School is collaborating on a future possible partnership with NMITE to develop a Masters in Engineering and Project Management, bringing together different skillsets from both institutes into one new programme.  The largely government-funded H&W Help to Grow programme is open for applications for its October intake, with more than half of the spaces already booked by SME leaders and managers.  The Worcester Exec MBA for business leaders also returned for new registrations this September, with Skills Boost funding opportunities for bursaries of up to £1500 towards the first year’s course fees.

Sir Keir Starmer visited the University of Worcester’s nursing students as part of his pre-election campaign (see https://www.bbc.co.uk/news/articles/c2xxzekkldno) and it might be interesting to note that in 2013 he received an honorary degree from the University.  Similarly, Baroness Jacqui Smith, Minister of State for Skills, Apprenticeships and Higher Education studied for her PGCE at the University of Worcester.  Alongside current challenges facing universities, there is likely to be further investment in the development of apprenticeships with the Labour Party expressing a commitment to ‘High-quality apprenticeships and specialist technical colleges’ as part of its manifesto commitment to ‘Breaking down barriers to opportunity.’  The University of Worcester is currently working on future collaborations with Chamber Patron member TDM, to improve educator support for digital apprenticeships across the region.

The other labour-related education headline relates to removing tax emption from private school fees, predicted to raise more than £1bn of additional government income through taxation.  Commentators are speculating this week that Labour’s plan to end tax breaks for private schools could begin as soon as next January, as the government looks to include the measure in their first autumn budget.

Generally in Higher Education – lots of discussion around ongoing funding and lots of concerns still. For example, tuition fees (frozen since 2016), although this has been offset by recruiting overseas students, however this is now challenged now with immigration rules around this. NMITE – still UK student based, recruiting 75 students for next academic year. Keen to see new Government future plans and policies.

Insurance

Insurance premiums in many areas of motor, property and liability continue to rise. Insurers declared 2023 the most difficult year for motor claims in over a decade. However, professional indemnity rates are showing signs of easing.

Martyn’s Law which was initiated during the last Government was resurrected in the king’s Speech and will require venues and locations that can hold 100 people or more to take steps to reduce terrorism risks.

The worldwide IT disruption in the middle of July was found to be related to a fault in a software update released by Crowd Strike, not a cyber-attack as initially feared. Many cyber insurance policies provide cover for this kind of business interruption and a large volume of claims is expected.

Retail

Over June and July retail has continued to be challenging.  Despite a UK wide 2.9% rise in retail sales in May sales fell by 1.2% in June.  This has been put down to the poor weather, which has certainly affected us and of course – the run up to the election. Despite the result being pretty much known from day one it still seems like there was uncertainty in people making big purchases.

This seems to have now gone and we’re seeing more stability, especially with currency (we got $1.30 to the £ last week).  It’s also clear that in this Summer it’s been non-food sales that we’re hit the most – with a 2% fall.  Again, we’ve seen similar during the summer months.

June, compared to May, was also slower when it comes to online sales although June this year compared to last year we still 2% up according to retail sales.

In terms of three big trends that we’re following and are definitely big UK wide:

Integrating AI and other technologies is prime for most retailers.  In bricks and mortar people are loving NFC tags in products – small trackable stickers that be used for wireless payment or for ‘staff free’ stores – like Amazon Go.  AI is now being used far beyond customer services and marketing but increasingly is creating more bespoke shopping experiences for people.  Online we’re looking at how this means AI can show the right things at the time to the right people and also help and advice as needed making a shopping experience so much easier.

The Circular Economy is a growing trend.  Collecting old items, repairing them and re-purposing where it’s not possible to repair is being adopted by a larger majority of retailers.  Patagonia where a real trendsetter on this and we’ve been doing this a while alongside our Loan and Go scheme but it’s crossing into all retail.

And loyalty schemes, usually driven by ‘gamification’ (for example collection points through purchases) is becoming a must have.  We’re looking into possibilities that work for everyone (for example – recommend a friend and we’ll give them 10% off their next order and you 20% or £20 – that kind of thing).  Food retailers like McDonalds and Greggs are doing very well with these and it’s growing – but we can’t be quite as attractive as a free vegan sausage roll or birthday donut.

So – using Technology, the circular economy and loyalty schemes are all to watch.

Whilst people focus on ‘essential purchases’ this all helps. It helps to maintain competitive in a more difficult market .

Medical science

Access to finance still an issue with part of the sector who have assets to develop but do not have the funds to run projects.

Other sectors are focussing on late stage developments getting products to market so reducing the overall number of project being run currently.

The market continues to be depressed with fewer assets being developed at the early stages of regulatory projects.

Price competition is prevalent with discounting evident to win work.

Limited recruitment with no specific issues.

Defence

Labour won, the strategic review has been initiated, Starmer claims to be committed to 2.5% of GDP being allocated to Defence – but like all of Labour plans, the question remains ‘how are they going to pay for it’?  Allegedly the plan is to be complete by mid-2025.  The military will probably remain quite stable in terms of shape and size, but there is a drive to increase ‘lethality’ of our forces – what that means is yet to be articulated, but it will require new equipment based capabilities, and that generates opportunities for industry.

The political instability and upheaval caused by a general election has unfortunately extended the period of military procurement paralysis, and so most defence companies are increasingly reliant on exports – at some stage UK MOD will have to start buying stuff and I suspect most small UK defence companies are sat waiting for that day…

The Ukraine war continues, and the next major event will be the US elections – if Trump wins then he has said the funding stops – and logic would suggest that will force some form of negotiation to end the war – as currently it is arguably reliant on US dollars….. whilst that may end the formal conflict I would then expect many years of civil war and regional unrest.

Transport

Like most sectors, a challenging time as we enter into the holiday season, especially for organisations that have a high agency dependency.

The Road Haulage Association has launched a blueprint document to support ‘A partnership for growth between Government and the logistics industry’. Like most bodies, putting effort in to get closer to their new ministers.

Insolvencies continue, albeit at a slightly slower rate.

Direct Vision Standards for London has had a six-month enforcement extension until May 2025 to enable equipment to be sourced and fitted (cameras and sensors).

Fuel has stabilised with the national average the same as at the beginning of the year, 113p and peaked at 119p.

General market conditions are generally challenging with a glut of vehicles (despite a higher level of cancelled orders, for new vehicles, than would normally exist). Increased costs and customers under financial pressure.

Many fleets have shrunk so it will be interesting to see how the industry copes if we have a usual Christmas peak.

Accountancy

Previous issues with recruitment have been address by the set up new Apprenticeship training programme internally, which is now paying dividends. Completed year end, with high growth. Labour budget, predicting early Oct. Looking out for income tax rises, capital gain tax, inheritance tax, pensions – full detail will be presented at local budget briefing. VAT on private school fees rumoured to be bought forward to Sept 2025, taking to Academy schools to understand impact on sector – could have an impact on state schools. Pensions, equity – take advice and advantage of any benefits before any changes. Keep watching brief on the future changes.

IT

A continuation to the positive growth since the start of the year with a steady number of new clients taking Managed IT solutions as well as cyber security-based products. Also successfully added the largest new contract signed with national coverage providing a complete portfolio of products.

Engagement with a number of large national financial institutes and underwriters,  to jointly present on Cyber Security and the inherent risk of not being protected, to their downstream clients. Month on month growth seen across the full portfolio of security.

Client decision making on deals has seen a more expeditious output over the last month for considered investment into new IT environments which may be a post-election bounce or renewed confidence but no obvious reasons. So, the sales cycle is definitely seeing a positive improvement. Efficiency gains and cost savings are the lead indicators.

Recruitment and staffing is being maintained at an optimum with choice now quite prevalent in the candidate market. Candidate contract demands have receded, and salaries are in line with market rates.

BT have recently announced that the exchange closure programme will be delayed by up to 2 years, thus allowing businesses more time to plan for replacement services for the 30+ products that will be switched off. Our advice is not to leave it to chance or the last minute as the intent remains the same, to close their networks and to do that quickly.

Continued strong demand for upgraded network solutions within offices (WiFi – Print – Switching – high speed Internet connections) which continues the trend for movement back to office-based working and new location expansion.

Cyber remains a key focus in the industry and with the recent Crowdstrike issue last week, although this was not Cyber related, it really demonstrates the impact when things go wrong and services are taken down through change events. The additional risk of cyber attacks whilst it was down also demonstrated that the threat actors take all opportunities to disrupt.

Recent survey suggested that 88% of companies will be investing in new technology this year, although 38% indicated that they were anxious of change and making the right decisions.

So, in summary, the sector remains strong with a lot of new enquiries being raised. Opportunities are on the increase and decision-making cycle in general has improved. All areas of our business have expanded to meet the demands.

Banking

More M&A work recently. Equity arm – first deal done to put equity into an SME. HP and leasing slow, suggesting investment down, because sales are down. Independent schools, extremely good in H&W – challenges and changes ahead but they will weather the storm. Branch closures continue.

Recruitment

The market continues to improve with Temp demand very much leading the curve and consistently increasing since March / April time. Perm demand had remained sluggish for the first 6 months of this year but July / August it is showing the first proper signs of following Temps lead. We anticipate this will continue now that the election is out of the way and we have some certainty in government…however, this in itself does bring about some potential issues for the recruitment sector and things that employers should consider moving forwards. The Labour Party’s “New Deal for Working People” covers a wide range of things including but not limited to – unfair dismissal rights from day one; enhanced redundancy rights; creating a single status of “worker”; repealing union laws; right to switch off; living wage aligned with cost of living.

Legal

Commercial property

A continuing lack of excitement in the high street to take on long leases of retail shops. However, there is some limited interest in local businesses venturing into this market to take on short terms leases for favourable rents and including tenant breaks.

A continued high demand for leases of small to medium light industrial units but with limited stock available with a more balanced approach to landlord and tenant obligations to those in the retail sector.

A more buoyant market in the letting of office suites but with tenants are still unwilling to take on longer leases without breaks.

Cash investor clients still wish to take the opportunity to invest further into light industrial units but continue to find it difficult to locate any such available property and struggle to find any local development land for such use to buy and develop. Investment in other types of freehold commercial property is not obvious from the type of work we are currently instructed to handle.

Employment

Uncertainty among employers over Labour’s new employment legislation

Day 1 right to unfair dismissal (but with a carve out for probation) – not sure exactly how this will work. Some employers looking at dismissing staff under 2 years’ service before the new laws come in where they are not 100% sure they are the right fit

Need for employers of all sizes to watch this space as we get the draft legislation and more details of how the changes will work in practice.

Private client

Slightly quieter; maybe to wait and see what changes may occur. Rumoured IHT increase but this only affects 4% of estates in any case.

Corporate

Busy in anticipation of possible CGT increase. Increasingly looking at alternative exit mechanisms such as employee ownership trusts etc to mitigate possible CHT issues and there are greater sources of financing available for these structures than a few years ago.

Education

Sector extremely busy, acquisitions of schools by PE/conglomerates picking up pace.

Residential property

Market is very tricky! Deals which are made by agents are fragile and messy.  Mortgages subject to unusual conditions and I have seen a couple withdrawn where previously there would have been extensions or retentions.

General

There is still much consolidation in the legal industry with aggregators, such as Knights and Gateley, acquiring smaller firms – a recent acquisition for Knights being Thursfields in Worcester.

Client confidence is still being affected by economic pressures, which translates to a pressure to limit legal fees, although there are some benefits to regional firms, winning work from there more expensive competitors in Birmingham and London.

Whilst improved from the beginning of the year, activity in residential property is fairly level, as is commercial property although we are focusing on specialisms such as renewables projects (in particular battery storage and solar projects).

Corporate has been boosted by seller anxiety in relation to CGT rises and possible diminution of tax reliefs – this has led to an acceleration in sale transactions and sales to employee ownership trusts.

Cyber security threats continue to be at the forefront of our minds, and we are increasing training and security initiatives in that respect.

We are also looking at ways of differentiating ourselves from competitors by focusing in particular on improving the client experience; and following up enquiries and other opportunities more efficiently.

Construction/Manufacturing

Reports suggest that the construction sector decline has showed signs of gradually levelling out, with the underlying value of project starts in Q2 2024 demonstrating a -2% reduction vs Q1 2024. Despite this, the sector is still down significantly vs Q2 2023 (-19%). Data suggests that social housing performance propped up the residential sector with the number of starts up +12% vs Q2 2023. Private housing continues to struggle with starts down -5% vs Q1 24 and -27% behind 2023 levels. With regards to non-residential, reports suggest that retail is the only sector to experience growth vs Q1 24 and 2023. Hotel & leisure, education and office starts continued to struggle.

The Labour government outlined their ambition to build 1.5M new dwellings alongside accompanying infrastructure within the first five years of government. In order to achieve such growth levels, the growing skills gap within the sector will need to be addressed. According to CITB, some 251K additional workers will be required in the next 4-5 years. The sector awaits further details regarding the governments plans for the Future Homes Standard and what it means for sustainability targets going forwards within the built environment.

Sources:

CITB:  https://www.citb.co.uk/about-citb/construction-industry-research-reports/construction-skills-network-csn/#uknations

GLENIGAN: https://www.glenigan.com/glenigan-index-of-construction-starts-to-end-of-june-2024/

Institution of Mechanical Engineers: https://www.imeche.org/news/news-article/labour-wants-to-build-1.5m-homes-this-tech-could-help-them-do-it

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Access to finance still an issue with part of the sector where we see either delayed, cancelled, or partly run projects.  This is typically seen with smaller and virtual type pharma and biotechnology companies.  Generally a slow down in the marketplace with fewer assets being developed, we can see discounting from large competitors to win work and reductions in headcount in those and allied industries. Input costs have stabilised and are now running at roughly half that seen in 2023. Limited recruitment with no particular issues.

DEFENCE

Defence and security sector is challenging.  MOD spending was frozen until April which had effect of SME’s in sector.  Uptick in GDP % on spending is not showing affect anticipated.  New Labour Gov may not honour.  Labour proposing strategic review of armed forces.  Ukraine is driving sector.  50% of turnover in sector is related to war.  Different countries have different policies on spending (Japan medical kit only).  $60bn US funding welcomed.  Putin has spent $300m.  Trump may not honour.

EDUCATION

GCSE time – 680 students sitting maths which is a legal requirement.  Students haven’t all achieved required level when leaving school.  Awaiting election too see policy on T levels, Curriculum reform etc.  Thought would be post Sept and that the 24-25 funding agreements would be in place by then but now this won’t be the case. What will happen to the National Skills Board, LSIP, Regional/central planning, levy spending? Permanently in state of reform. Currently not spent well, decline in spend on engineering for example, and some geographical imbalance in uptake of apprenticeships.

Higher education difficult – student fees haven’t changed but costs have increased, and changes to International students.  New intake of 75 students at NMiTE this year. Number of local sites growing and linking with other Universities at UK and at home.  Future skills centre up and running and will help links and support small businesses.  Military to business event 20^th June at Shell Store.  £320,000 funding secured for veteran’s centre in Hereford, and sessions in surrounding towns.

FOOD AND DRINK

Food price inflation remains major factor in RPI.  11% inflation correlated to 19% food.  Food inflation has fallen significantly in recent months and is now in line with general inflation.  Food foundation basket is regulator for spend – indications are this is rising. Own label products still more popular currently than brands.  8m adults in UK are in food “poverty” much of this is down to waste, and healthy options are becoming too expensive.  Vegetables gone up over 100% in 2 years, therefore healthy options being taken away, 60% eating less fruit because of price and availability. Seasonal dependence is going to become more challenging.  55% of seasonal foods are imported in summer, 65% in winter driving prices.  Food processing is very energy dependant leading to cost. Whether also causing difficulties this year, will only see bigger price changes and availability. Big question is yield this year.

LEGAL

Corporate busy, deals are flowing better.  Property market frantic with stamp relief for granny annexes ending soon, causing a rush in the market. Commercial steady, working from home might be having effect still.  Employment law seeing less change in numbers and more natural wastage, some enforced.  Employment – employers looking at rolled up holiday pay, cautious on recruitment, redundancy, focus on performance and under performance. Increase in harassment through TEAMS and social media has presented employment law problems. Employer has a duty of care, so remind employees.

IT/CYBER

Threat through ransom and malware still happening alarmingly more – e.g. via password security, clicking on incorrect links. Sometimes speed of actions catches people out – Devon water example.  PSTI – Product security and Telecommunications Infrastructure act. All about IOT devices (things at connect to internet) – need to be more secure. In manufacture or selling into this market, this may apply to you. 35 billion of these in use.

MANUFACTURING

Construction output falling 2 ½ per year.  Refurb market falling, BUT back to normal levels pre-covid.  Some companies suffering, Everest and Safestyle failed.  High interest rates have not helped consumer spend.  Capacity has dropped in market allowing some companies to benefit.  Legislation around future home standards still uncertain. Election likely to delay this further. Price inflation and energy stabilised. Focus highly now on recycling. Challenges around people, mostly at operator level. Some areas of the market still growing significantly.

BANKING

Commercial banking all about lending.  Business need confidence.  They need certainty.  This is short in supply.  Political uncertainty not helping.  Discussions around deposits rather than borrowing.  Locally businesses are handling costs better.  Supporting sustainability is big factor in lending.  Businesses are approaching Lloyds through relationships, this is so important for the banks.  M&A work strong.  Business costs under control. Sustainable ventures given good incentives. Merger and acquisition work high.

RETAIL

Equestrian trade tough, turnover down, in US too, and perhaps down to pre-covid levels.  Containers up to $5000.  Were down to $2000 after covid hikes.  In far east the value of the Yen is a concern.  Badminton Horse Trials is a huge industry event – for the traders it was not as good as previous years.  Staff still difficult to recruit (office).

TRANSPORT

Reduction in demand.  Over capacity in UK.  Race for rate driven down.  Not best year, not worst.  Number of insolvencies still a concern.  Supply of drivers ok.  98% are white male over 45 years.  Industry is incompatible with modern life styes making recruitment.  60bn ANPR hits a day making police prioritisation impossible! £100m being invested to improve roadside facilities, but challenges with planning etc. Electric HGVs 366 sold in Q1 (440% Growth) but still only 3%. Automated Vehicle act passed, paved way for semi/automated vehicles (2026 estimated to be first one).

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Each Area Council meets four times a year. The Councils are comprised of up to fifteen sector specialists who represent the majority of business sectors in each county.

Council Members provide insights into their sector and discuss the opportunities and challenges businesses currently face. The feedback is then used to formulate Chamber policy on the most important business issues in the region.

We are currently looking for businesses in any of the following sectors to join our Councils:

Herefordshire:

• Sustainability
• Tourism
• Healthcare
• Construction
• Charity

Worcestershire:

• Tourism
• Agriculture/Food & Drink/Horticulture
• Construction

The eligibility criteria for candidates for election to an Area Council are:

• Must be a current Member
• Must hold a senior position within the member business, such as Business Owner, CEO or Senior Director
• May only seek election to the Area Council in which their business is located, or in which they live
• Must align to the Chamber’s values and culture
• Must be able to meet the time demands of the role on a voluntary basis

The key responsibilities of Area Council Members are:

• To maintain close contact with Members at a local level to help provide sector information on behalf of Members at Area Council Meetings
• In conjunction with the Executive to maintain close contact with local key partners such as Members of Parliament, Councillors, Council Officials etc
• To ensure that local networking activities are taking place and to support those activities.
• To identify key policy issues that need to be taken up by the Chamber.
• To actively support Chamber membership recruitment and retention initiatives.
• To approve new Member applications
• To recommend the termination of membership because of inappropriate behaviour.
• To bring business issues/concerns in the wider sector community to the attention of the Chamber
• To regularly attend Area Council meetings at Member’s premises.
• If Area Council Members fail to attend three consecutive meetings for no significant reason, this member may be removed from the Area Council.

If you would like to apply for a position, please fill in the self-nomination form which can be downloaded Here.

The deadline for receiving applications is 4pm on Friday 12 July 2024.

If you have any questions please contact our Policy department at policy@hwchamber.co.uk

Voting for these positions will take place on 26th July and all candidates will be informed of the results by 2nd August 2024.

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 Agriculture, Food & Drink

Statistics shared around the food industry (attached here). There are some interesting points to note; a large number of businesses with no employees. Oils and fats GVA is low due to the huge cost of handling. Aldi is now the fourth largest supermarket in terms of market share. Food inflation is still high although it has started to come down, and this has been a large contributing factor to overall inflation. The cost of raw materials is still high, particularly sugar which a large contributor to many products. There have been consumer price movements, some low, others much higher. It is possible that supermarkets could be influencing some of these.

The Christmas season for hospitality is generally good, and now slower as is usual in January. Some large brewers in the craft sector are still finding things difficult, for a combination of reasons, costs, management etc. Others are picking up opportunities. The grant system does not seem to be working for SMEs. What they need is grants for second hand equipment, quickly. Not pre-planned with a business plan, three quotes and long timescales. These businesses need to be able to make decisions quickly and on demand. The cost of living crisis is still bubbling away and the next uptick for the industry is Valentine’s day. The English wine market is growing nicely and the quality and interest from supermarkets is growing. This will possibly be one of the main growth sectors in alcohol over the next ten years. Online growth is also good.

Banking

There are currently many geo-political tensions, making it difficult to see where the base rate will go next. Towards the end of 2023, clients were looking to pay off loans. This has stopped now early in 2024 suggesting that people are holding on to deposits. Shipping costs are again a challenge, and the education sector are concerned about charitable status and the VAT impact (further examples of the current uncertainty). Other reports from key clients include construction – there are a range of views with some volumes down by 30% and where demand has slowed to some who have seen an increase in orders that have previously been held back. The supply of raw materials is better. Manufacturing – investment is regular but needs to see an increase in demand before more investment is made.

Cyber

The Christmas break and financial constraints are slowing down interest in cyber security and there is still a fear that it is seen as something that ‘is nice to have’. Training staff is hugely important so that they know what to look out for and this is the biggest risk that businesses face, mostly with regards to phishing emails and calls. The threat landscape used to be phishing (using links to click on) on emails with links but is now moving towards emails with PDF attachments, which give access directly to the attacker. Identity theft, the stealing of personal information, has risen to 50% and is again used to gain access and control of a system. The number of cyber attacks is now approximately 840,000 every three months. A West Mercia Safe/Security event is being held at the Cyber Centre on 31 January and is free of charge to book and attend.

Defence Procurement

The sector is expecting the UK General Election to occur in Spring or Autumn 2024, with trade bodies firmly predicting a Labour win. Exactly what this means for the sector is unclear, however, it is widely expected that a complete Security & Defence Strategic review (SDS) will be initiated by a new Labour government, and that will set the tone for what is prioritised (and therefore funded) across the sector. US politics are also being closely watched as the next president will have a potentially huge impact on the sector. Polls are suggesting the return of Trump/Republicans; they will adopt a more domestic focus, with likely impacts on NATO, significant reductions in aid to Ukraine and an unknown policy with respect to support to both Taiwan and Israel. The ‘second order’ effects of these strategic policies will shape global activities in this sector.

A UK Defence SME Board has been established. It’s focus is initially on fairness (making sure small companies get access to opportunities, not just the Blue Chips), the creation of realistic ESG criteria and guidance (current policies are vague and often unaffordable for small companies), and Prompt Payment (so small businesses are not compromised by late payments from Government and/or large defence companies. The Ukraine conflict continue to create opportunities for UK companies, although we expect them to reduce as industry establishes itself in Ukraine, and Central Europe. As we enter Q4 of the FY, Defence underspends will become the focus of MOD financial staff and this typically results in small, agile companies being able to benefit from ‘last minute’ orders.

Legal

Individual sectors vary. Corporate work is progressing well, perhaps driven by uncertainty in an election year and changes in interest rates. Work on restructuring and insolvency vary between the two counties. Family law is typically higher in January unfortunately. Herefordshire continues to find recruitment a huge challenge and this is linked more to area rather than the legal profession itself. Retention at the lower to middle levels are also still a challenge. However, numbers are still good as a full-service firm. Our strength is with our personal connections with our customers.

Manufacturing

The business environment is challenging as an example the changes around R&D tax relief leaving many genuine SME businesses wondering if it’s worth the effort. As a business that looks to develop new products the R&D tax relief really has helped us in the past. We have recruited the staff that we need for 2024, it is unlikely that we will grow the workforce any further this year although I’d like to be proven wrong. We are only anticipating modest growth in 2024 and no further capital expenditure on new machines until the last quarter of the year at the earliest. A reduction in interest rates might help the construction industry which would filter down to us.

Sports & Leisure

The retail/wholesale trade continues to be challenging. Most retailers are seeing a reduction in turnover from 2022. If they can match the previous year’s sales they are more than happy. There is no pressure to increase prices as manufacturing costs are fairly static. An immediate problem is shipping costs. Having come down to below pre-covid levels they are now increasing substantially due to the problems in the Red Sea. A concern is also that containers are taking longer to arrive at UK ports as the ships are having to take a longer route.

Transport & Logistics

The industry is usual slow in January and February. 2024 prices will be lower due to the reduction in fuel costs. Insolvencies in the sector doubled in 2023. Driver recruitment is currently positive but gaining drivers with relevant experience is still a challenge.

The post Herefordshire Area Council Updates appeared first on Herefordshire & Worcestershire Chamber of Commerce.

The Chamber has two Area Councils, one that represents Herefordshire and one that represents Worcestershire.

Area Councils meet six times a year: three meetings per county and three meetings jointly. The Councils are comprised of up to fifteen specialists who represent the majority of business sectors in each county.

The Council members provide insights into their sector and discuss the opportunities and challenges businesses currently face. The feedback is then used to formulate Chamber policy on the most important business issues in the region. Any issues that arise at the Area Councils are discussed at a local level and are then referred to the Chamber Board,

Some key responsibilities include:

• Maintaining close contact with members at a local level to help provide guidance to the Board and Chief Executive
• Identifying key issues that need to be taken up by the Chamber
• Representing both your individual business and your business sector
• Actively supporting the Chamber membership recruitment and retention initiatives
• Acting as an ambassador for the Chamber.

We have a vacancy in Herefordshire.  We are looking for businesses in the following sector but would welcome applications from any interested members.

• IT & Cyber – Herefordshire.

If you would like to apply for a position, please fill in the self-nomination form which can be downloaded Here.

The deadline for receiving applications is 5pm on Friday 20 October 2023.

If you have any questions please contact our Policy department at policy@hwchamber.co.uk

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