News

SME manufacturers in the north west of England will benefit from an additional £230,000 in funding to accelerate the adoption of advanced digital technologies and strengthen their competitiveness.

The Department for Business and Trade (DBT) has awarded the extra funding to Made Smarter Adoption North West, enabling at least ten more businesses to introduce transformative tools such as sensors, robotics, and 3D printers.

The cash injection comes as welcome news for the digital adoption programme, which is due to continue from April 2025 under the government’s £16 million pledge to roll out similar support initiatives across all English regions.

Made Smarter provides smaller manufacturing and engineering firms with access to technology advice, leadership development, and skills training, as well as grants for digital internships and implementation projects. The goal is to help companies increase productivity, enhance growth, create high-value jobs, and support decarbonisation efforts.

Alain Dilworth, Programme Manager at Made Smarter Adoption North West, said: “We are delighted that the DBT has allocated a further £230,000 to support our ongoing mission. Most of this funding will help businesses accelerate their digital transformations, and we urge any manufacturers who haven’t yet engaged with us to get in touch.”

Launched seven years ago, Made Smarter Adoption North West was set up to help SMEs lacking the in-house resources to embrace digital tools. Run by a team of 16 experts in manufacturing, technology, and organisational development, it has already engaged 2,500 companies and offered personalised advice to more than 500.

Of these, 330 businesses have secured over £7 million in grants to co-fund 379 tech projects, with a total investment of £25 million (including £18 million from participating firms). This combined backing is expected to create 1,700 new jobs, upskill 3,200 existing roles, and add £267 million in gross value added (GVA) to the economy over the next three years.

More than 200 manufacturers have improved their operations through digital skills programmes, with half of the 75 internships facilitated by Made Smarter leading to permanent roles.

Donna Edwards, Director of the programme, said: “This additional funding recognises the significant impact Made Smarter North West is having on the region’s manufacturing sector. Our approach is built around specialist advice to help firms select the most effective technologies for growth and resilience.

“As we enter our seventh year, we’re more determined than ever to reach even more SMEs and illustrate how digital innovation can transform their operations, workforce, and environmental footprint.”

Inspired by its success in the north west, the Made Smarter model has since been adopted in several other English regions, including the North East, Yorkshire and the Humber, the West Midlands, and the East Midlands. This blueprint will guide the programme’s further expansion in April 2025.

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DBT gives £230k injection to drive digital transformation among north west SME manufacturers

Abu Dhabi’s sovereign wealth fund is set to acquire the automotive division of McLaren, the renowned British supercar manufacturer, in a move that reshapes the ownership of one of the UK’s most iconic motoring brands.

The deal follows a difficult period for the Woking-based firm, which recorded a record annual loss of £924 million in 2023, up sharply from £349 million the previous year. Under the agreement, McLaren’s longtime majority shareholder, the Bahraini state-owned investment vehicle Mumtalakat, will retain control of the racing arm, while Abu Dhabi’s CYVN Holdings – backed by the trillion-dollar Abu Dhabi Investment Authority – steps in as a minority shareholder.

The signing ceremony was reportedly witnessed by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, crown prince of Abu Dhabi and son of UAE president Sheikh Mohamed bin Zayed Al Nahyan, underscoring the strategic importance of the acquisition for the emirate. In a statement, Abu Dhabi described the move as “a defining moment” in CYVN’s plan to build a “leading, globally connected mobility platform.”

Mumtalakat first acquired a major stake in McLaren in 2007 and has repeatedly injected funds over the last few years to keep the carmaker afloat. The business suffered severely during the pandemic and faced mounting losses, which prompted Bahrain’s sovereign investor to seek a buyer. Having already enlisted Wall Street bankers from JP Morgan, Mumtalakat has now found its exit strategy through CYVN’s investment.

Tom Molnar, chief executive of McLaren, has emphasised the need for the firm to pivot towards electrification, with the company racing to develop its first fully electric supercar. The investment from Abu Dhabi could provide the capital required for extensive research and development and to secure McLaren’s position in a future driven by advanced technology and cleaner propulsion systems.

While the McLaren racing division – originally founded in 1963 – will remain separate, the new deal is expected to secure the automotive business’s financial footing. The hope is that with stable backing from Abu Dhabi and the continuing strategic involvement of Mumtalakat, McLaren can navigate the challenges of rising costs, supply chain pressures, and an evolving global market for luxury and high-performance vehicles.

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UAE buys Mclaren’s automotive business following record losses

After years of surging rental costs, tenants are finally seeing signs of relief. According to new data from property portal Zoopla, annual rent inflation has slowed to 3.9 per cent, its lowest rate since August 2021.

Although rents are still increasing, this marks a significant cooling from 2022’s peak growth of 12 per cent.

For the average tenant, who now pays £1,270 per month for a typical rental home, slower price increases come as welcome news. Over the past four years, rents have risen by 27 per cent while earnings have grown by just 19 per cent. Compared to 2021, tenants are paying a hefty £3,240 more per year, on average.

The rate of rental growth varies across the country. Northern Ireland remains a hot spot, with annual rents up 10.5 per cent, while London’s rental prices have edged up by only 1.2 per cent in the past year. These regional differences highlight how location and local market conditions can influence affordability.

Richard Donnell, executive director at Zoopla, notes that the pandemic-era rent boom stemmed from a supply-demand imbalance. While there are nearly a third more potential renters seeking accommodation than in 2019, the stock of available rental homes has been broadly static since 2016. The shortage, while easing slightly, is expected to continue. Would-be buyers are locked out of the housing market due to affordability issues, net migration is at record highs, and more landlords are exiting the sector in response to tougher taxes and regulations.

Zoopla predicts that rents will increase by another 4 per cent in 2025, with more affordable areas around major towns and cities likely to see the strongest demand. This is already evident in places such as Havering, on London’s eastern fringe, and Birkenhead, across the River Mersey from Liverpool, where rents are outpacing pricier urban cores.

Labour’s pledge to build 1.5 million homes over the next five years could help alleviate the chronic shortage and keep rents and prices in check. However, Donnell cautions that a real easing of pressure on renters must come from boosting all forms of housing supply, both private and social. Landlords, he says, will remain essential to meeting demand, and conditions may eventually encourage them to re-enter the market—but not just yet.

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Rent rises slow, offering hope to beleaguered tenants

McWin Capital Partners, the European food-focused investment firm, is reported to be in early talks to acquire Gail’s, the much-loved but premium-priced UK bakery chain, according to a report by Bloomberg.

The news comes hot on the heels of Gail’s owners hiring Goldman Sachs to prepare an auction, amid widespread speculation that the brand could fetch as much as £500 million.

McWin Capital, already an investor in the bakery’s parent company, invests in pan-European food service and food-tech ventures. Its portfolio includes franchise rights for Subway and Popeyes in select European markets, as well as stakes in Japanese-inspired Sticks’n’Sushi and the Italian-themed Big Mamma group.

Gail’s opened its first bakery in Hampstead, north London, in 2005 as an offshoot of the Bread Factory, a wholesale bakery supplying top-tier restaurants including Gordon Ramsay’s. Founder Gail Mejia sold the business in 2011 to serial entrepreneur Luke Johnson, who still serves as chairman. American private equity firm Bain Capital acquired a majority stake in 2021, valuing Gail’s at £200 million at the time. The chain’s rapid growth means it now boasts more than 150 branches across the UK, with further expansion planned for the current financial year.

Under chief executive Tom Molnar, a former McKinsey consultant, Gail’s capitalised on shifting consumer behaviour during and after the pandemic, tapping into rising interest in artisanal food and transparency in supply chains. However, its expansion has not been without controversy. Critics have argued that its presence in neighbourhoods like Walthamstow, northeast London, contributes to the homogenisation of local high streets. Molnar countered that the brand’s outlets are small and integrated, designed to complement rather than overwhelm established local businesses.

Should McWin Capital’s talks lead to a pre-emptive acquisition, it may reshape the anticipated auction process and highlight the premium value investors place on fast-growing, upmarket food brands within the UK’s competitive retail landscape.

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McWin Capital eyes Gail’s in bid to pre-empt £500m auction

Hundreds of farmers gathered in Westminster today, chanting “no farmers, no food” outside Downing Street, as Prime Minister Sir Keir Starmer faced tough questioning in the Commons over proposed changes to inheritance tax.

Tractors blocked parts of Whitehall during a demonstration organised by Save British Farming and Kent Fairness for Farmers, reflecting the industry’s growing anger over Chancellor Rachel Reeves’s levy proposals.

Under the plans, announced in last month’s Budget, inheritance tax will rise to 20 per cent on agricultural assets worth more than £1 million. Although the government insists the majority of farms will remain unaffected, farmers’ groups have argued that the threshold is far too low for many family-run holdings. Approximately 500 farmers travelled to Westminster today to protest, following a rally of around 13,000 people in the capital last month.

As the protest took place, Liberal Democrat leader Sir Ed Davey pressed Sir Keir Starmer on whether he would “change course and recognise the vital role that family farms play.” In response, the Prime Minister stated that the “vast majority” of farms would be unaffected, citing the £3 million threshold for an “ordinary family” case.

However, many farmers remain unconvinced. Matt Cullen, a beef farmer and organiser with Kent Fairness for Farmers, claimed: “We need to show this government that we will not be pushed over and have our farms destroyed. This is war and we will win and force the government into a U-turn.”

Among the demonstrators was 26-year-old Claire Fifield, whose step-family runs a tenanted farm in Amersham, Buckinghamshire. Ms Fifield said the £1 million threshold was unrealistically low given the costs associated with farming: “I don’t think they’ve spoken to a single farmer, especially not a tenant farmer. They looked at Jeremy Clarkson and decided to take his money, but this punishes people who have been working these lands for generations.”

The emotional toll of the dispute was highlighted during a session of the Commons Environment Committee, where Tom Bradshaw, President of the National Farmers’ Union (NFU), was moved to tears while describing the pressure some farmers face. Middle-aged farmers are reportedly worried their parents will not live the seven years required to avoid tax liabilities, putting businesses that have been nurtured for decades at risk. Bradshaw warned of severe human consequences, including the possibility of farmers taking their own lives due to financial despair.

During Prime Minister’s Questions, Conservative MP Jerome Mayhew reminded Sir Keir Starmer of his pre-election remarks to the NFU, where he acknowledged that losing a farm “is not like losing any other business.” Mayhew accused the current administration of being duplicitous. Sir Keir countered by highlighting the £5 billion of support pledged to agriculture over the next two years, including £350 million allocated in the last week, and reiterated that “the vast majority of farmers will be unaffected” by the changes.

As tensions remain high, the government stands by its reforms, while many farmers fear the new inheritance tax threshold will jeopardise family farms that have supported communities and produced British food for generations.

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Farmers descend on Westminster amid inheritance tax row as Starmer faces MPs’ questions

The cost of your morning cup of coffee could soon increase, after the price of arabica beans—the most widely produced variety—soared to a record high on international commodity markets.

On Tuesday, the price of arabica surpassed $3.44 per pound, reflecting an increase of over 80% since the start of the year. Robusta beans, which are cheaper and more bitter, have also risen sharply, hitting fresh highs this autumn.

The price surge follows challenging weather conditions in the world’s leading coffee producers, Brazil and Vietnam. Brazil, the largest producer of arabica beans, has suffered its worst drought in 70 years, followed by unusually heavy rains that threaten this season’s flowering crop. Vietnam, the top supplier of robusta, has also experienced weather extremes that are expected to limit future yields.

These supply concerns emerge at a time of steady global demand for coffee. Consumption in countries like China has more than doubled over the past decade, while roasters and traders report that inventories of beans are critically low.

For several years, major coffee brands including JDE Peet’s (the owner of Douwe Egberts) and Nestlé managed to absorb higher raw material costs, protecting consumers from price increases to maintain their market positions. However, industry insiders say that this strategy is reaching its limit. With soaring bean prices putting intense pressure on profit margins, brands are now preparing to pass costs along to customers in the first quarter of 2025.

Italian coffee giant Lavazza, which until recently tried to shield shoppers from rising costs, confirmed that it was ultimately forced to adjust its prices. David Rennie, Nestlé’s head of coffee brands, has also admitted that the firm will need to raise prices and possibly adjust package sizes, describing the situation as “tough times” for the entire industry.

Commodity analysts expect the upward trend in coffee prices to persist for some time, with the impact of extreme weather on supply—and consistently strong consumer demand—making it likely that coffee lovers will feel the pinch in their wallets well into next year.

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Coffee prices reach new heights as weather woes hit global supply

Mencap, one of Britain’s leading charities supporting people with learning disabilities, has warned it may have to close at least 60 of its services due to mounting cost pressures following changes announced in the Budget.

The organisation says the rise in employers’ National Insurance contributions (NICs), combined with a sharp increase in the national minimum wage, will add up to £18 million a year to its annual costs. The charity’s chief executive, Jon Sparkes, cautioned that frontline care services could become unviable without higher fees from local authorities, which are responsible for commissioning most adult social care.

Currently, employers pay NICs at 13.8% on earnings above £9,100, but under the new rules the rate will increase to 15% from April 2025 and start from £5,000. At the same time, the national minimum wage will rise to £12.21 an hour for over-21s. Mencap says these measures will affect every one of its roughly 7,500 staff, including many low-paid care workers, leading to a £12 million annual hit. If the charity also raises pay for other workers to preserve pay differentials, the total could reach £18 million.

Mencap supports around 600 services across England, Wales, and Northern Ireland. While some sites—like Churchfields in Essex, where 26 people with complex learning disabilities live—are not immediately at risk, Sparkes warns that at least 60 services may have to close unless the charity receives “substantial” increases in funding from councils. He expressed concern that “basic daily social care” for some of society’s most vulnerable people could be lost.

These concerns are echoed widely across the sector. Analysis by health and care consultancy LaingBuisson, commissioned by care associations, found that 80-85% of social care is provided by small local organisations with little financial resilience. With higher wage and NIC costs, care providers fear a “significant reduction in care and support services,” according to Dr Jane Townson of the Homecare Association.

Local authorities, who face their own funding challenges, say that to cover the increased costs, they would need to raise provider fees by 9-10%. Melanie Williams, president of the Association of Directors of Adult Social Services (ADASS), argues that councils are already struggling with overspends and rising demand, calling the mounting pressures “insurmountable.”

ADASS estimates that an extra £1.8 billion is needed just to maintain current care services in England. While the government insists it is taking steps to stabilise and improve the sector—including increasing council funding by £3.5 billion in 2025-26—it acknowledges that it must tackle longstanding challenges in adult social care.

A government spokesperson said it is committed to supporting adult social care through improved staff pay and broader measures, noting: “We are giving local authorities an additional £3.5bn in 2025-26… to support the sector.” Yet for charities like Mencap, already operating on tight margins, the question remains whether this support will arrive in time to prevent the closure of services that provide essential, life-enhancing care.

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Mencap warns National Insurance rise could force closure of care services

Travel plans over the festive season are under threat as the UK’s rail minister warns of staff shortages and fresh strike action by Avanti West Coast train managers.

Lord Peter Hendy, speaking at the House of Commons transport select committee, expressed concern that reduced staffing levels could disrupt Christmas train services, compounding the impact of planned industrial action.

Central to the issue is the reliance many train operators have on staff working voluntary Sunday shifts. Without these extra hours, operators often struggle to meet their timetables, leading to widespread cancellations on key travel days. Lord Hendy said the Department for Transport would keep a close watch on staffing into and throughout the holiday period, adding that “we’re concerned about staffing of Christmas services.”

Alex Hynes, director general for the DfT’s rail services group, acknowledged systemic vulnerabilities: “We’re over-reliant on overtime working for train crew. That’s a risk, which may be worse at Christmas time than other times.”

Meanwhile, Avanti West Coast faces three days of strikes by train managers over rest-day working arrangements. Members of the Rail, Maritime and Transport (RMT) union will walk out on 22, 23, and 29 December, potentially leaving services “extremely limited” at one of the busiest travel periods of the year. A revised timetable is due on 14 December, with ticket flexibility offered to customers who booked for the strike dates.

RMT general secretary Mick Lynch said train managers had “decisively rejected” Avanti’s proposals, calling for a fair deal: “Train managers are being treated unfairly compared to senior managers, who receive significant payments for covering these roles.”

An Avanti West Coast spokesperson responded: “We are disappointed the RMT has declined our reasonable offer… We will continue to work to resolve this dispute.”

With both staffing challenges and industrial action looming, passengers face heightened uncertainty and potential disruption to their Christmas travel plans.

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Christmas rail travel at risk as staff shortages and strikes loom

Strong consumer solidarity prevailed on Small Business Saturday despite blustery conditions sweeping the UK.

According to new research by American Express, more than 10 million Britons shopped at independent retailers on 7 December, braving the impact of Storm Darragh to inject an estimated £634 million into small businesses both in-store and online.

The study, which surveyed 4,000 adults across the country, found the average spend per customer reached its highest level since 2020. More than half of respondents (53%) said they shopped small to show support for high-street traders, while nearly two in five (39%) acknowledged the challenges that small businesses have faced lately. In a promising sign for the sector’s future resilience, 70% of those surveyed said they intend to keep shopping small in the coming year due to the positive impact such businesses have on their local communities.

American Express, which founded and has been the principal supporter of Small Business Saturday, noted that the findings are based on consumers’ self-reported spending rather than actual sales data or cardmember spending figures. Over the 12 years the initiative has run in the UK, it has encouraged millions to turn out and helped generate billions of pounds in sales for small businesses.

The research also showed that Britain’s penchant for “shopping small” spans beyond a single day. Among those increasing their support for smaller enterprises this year, nearly three quarters (72%) reported making a deliberate effort to shop with them where possible. Another 60% said they recommended independent retailers to family and friends, and almost a third (31%) left positive online reviews to help boost these businesses’ reputations.

This year’s Small Business Saturday garnered broad political backing, transcending party lines. Prime Minister Sir Keir Starmer hosted a reception for small businesses at Downing Street, while Chancellor of the Exchequer Rachel Reeves visited independent firms in Leeds. Senior political figures, including the Leader of the Opposition Kemi Badenoch, publicly endorsed the campaign. Other high-profile supporters included London’s Mayor Sadiq Khan and Greater Manchester Mayor Andy Burnham.

Michelle Ovens, Director of Small Business Saturday, welcomed the strong turnout and spending, particularly in the face of adverse weather. She said: “It’s fantastic to see shoppers defying stormy conditions to back their local businesses, and the uplift in spending per shopper is a boost at a crucial time. By choosing to buy local, even within tighter household budgets, consumers can make a tangible difference to their communities. This support throughout December and the festive season could set the stage for a more optimistic 2025.”

Dan Edelman, UK General Manager of Merchant Services at American Express, added: “Small businesses are the backbone of our communities, so it’s heartening to see consumers rallying behind them despite challenging weather. That determination to ‘shop small’ is a vital ingredient in keeping our high streets healthy and thriving as we head into the new year.”

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Brits brave storms to back small businesses, spending £634m on Small Business Saturday

Energy bills for most British households are poised to rise again this spring, as an uptick in wholesale gas prices and escalating network charges put renewed financial pressure on millions of families.

Forecasts from Cornwall Insight, the energy consultancy, indicate that Ofgem’s price cap could nudge up by around 1 per cent to £1,762 a year for a typical dual-fuel household in April, reversing an earlier prediction of a modest decline. The new figure is slightly above the £1,738 cap that takes effect from January and continues the marked increase from pre-crisis averages of roughly £1,100 annually.

Other proposed adjustments to the price cap—such as allowances for energy-intensive industries—could add a further £20, bringing the total to £1,782 a year.

Europe’s gas prices have seen a volatile year. After dipping to €24 per megawatt-hour in February, they have surged back near a one-year high of €45.5 per MWh. Demand from Asia, driven higher by extreme summer temperatures, has intensified global competition for liquefied natural gas (LNG), on which Britain is increasingly reliant as it reduces its dependence on Russian pipeline supplies following the invasion of Ukraine.

Ofgem, the UK’s energy regulator, has warned that ongoing reliance on LNG imports is likely to keep gas markets volatile into next year. Craig Lowrey, principal consultant at Cornwall Insight, described the outlook for 2024 as “a perfect storm of regulatory changes and market turbulence,” adding that “while significant rises in price are currently unlikely, the degree of any increase will hinge on how the market and regulatory reforms evolve.”

The energy price cap, introduced in 2019, restricts the rate suppliers can charge per unit of gas and electricity. It is recalculated at regular intervals to reflect the costs of an efficient supplier. However, the result is that even at the current level, households face bills roughly 50 per cent higher than those seen before the energy crisis took hold.

Consumer advocates remain concerned. Simon Francis, co-ordinator of the End Fuel Poverty Coalition, noted: “The latest forecast suggests households will be paying about 70 per cent more than they were during the winter of 2020/21. That means an extra £750 per year, pushing more people into living in cold, damp homes and risking the health implications of fuel poverty.”

With gas prices elevated in the wake of geopolitical tensions, including the conflict in Ukraine, the Labour Party has proposed accelerating Britain’s shift toward renewables to reduce exposure to fossil fuel price spikes. According to research by think tank Ember, renewable sources are on track to provide more electricity to the UK grid than fossil fuels this year for the first time, offering a glimmer of long-term relief amid near-term cost pressures.

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Energy bills likely to inch higher from April as gas costs climb again