BUSINESS NETWORX
North East GVA AND employment growth BOOST FOR NEWCASTLE
W W W. T E A M V A L L E Y P U B L I C A T I O N S . C O . U K I SS U E # 3 4 • A U G U S T / S E P T E M B E R 2 0 1 8
What are zero hour contracts?
North East business £20 million creative boost GOVERNMENT CULTURE FUND
confidence on the rise Report shows of optimistic regional companies
In a s s o c i at i o n w i th :
T H E T E A M V A L L E Y T R A D I N G E S TAT E ’ S N U M B E R O N E B U S I N E S S F O C U S M A G A Z I N E
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News
Business confidence on the rise among North East companies, claims Business Barometer The North East has seen business confidence rise by seven points since June to 35%, according to the latest Business Barometer from Lloyds Bank Commercial Banking. The barometer shows that companies in the North East have reported higher economic optimism at 41%, although firms’ confidence in their own business prospects fell three points to 29%.
What are zero hours contracts?
We hear this term quite a bit these days, but what are zero hours contracts?
Together, this gives an overall confidence of 35%, which is seven points above last month’s figure of 28%. A net balance of 32% of businesses in the region expect to hire more staff during the next year, which is also up seven points on last month. The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide. Leigh Taylor, regional director for the North East at Lloyds Bank Commercial Banking, said: “Overall confidence in the North East is above the national average, and is based on rising optimism about the economy overall, which also bucks the trend across the UK. “We are seeing significant investment across the region at the moment, particularly in the manufacturing sector where two major projects have been announced this month alone. “With an increasing number of other local firms looking to hire more staff in the next year, I’m cautiously optimistic that businesses’ own confidence will rise in the months to come.” Outside London, where overall confidence is at 40%, the North East is the joint most confident region, alongside the North West, and Yorkshire. Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, added: “Increased global trade tensions and Brexit uncertainties are likely to have weighed on confidence, but it’s still near the long-term average and so there’s no need to hit the panic buttons.” www.bdaily.co.uk
“The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends” 6 | www.teamvalleypublications.co.uk
A zero hours contract is a causal working agreement between an employer and an individual. They have received some negative press in recent years, but used properly, zero hours contracts can be a flexible alternative to full and part time employment which can suit both employers and individuals themselves should they need to work flexibility around other commitments such as study, or childcare. For an employer, engaging staff on a zero hours basis useful in the following situations: • New businesses may need to build up a customer base • Where work is seasonal • Where work demands are irregular or there are peaks in demand • To cover unexpected staff sickness and be able to call on experienced staff
A zero hours contract means that the employer is not obliged to provide a set number of hours of work for the individual. If an individual if offered some work, there is also no obligation on the individual to accept the work if they are available. Some points to note, all zero hours workers: • are entitled to the National Minimum Wage or National Living Wage (depending on their age) • have statutory employment rights which includes paid annual leave, rest breaks and protection from discrimination Employers operating zero-hours contracts are no longer allowed to use exclusivity clauses. These prevented individuals from working for another employer and this practice is now unlawful.
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Employment
North East employment growth sees Newcastle on the rise Newcastle experienced a boost in employment throughout the first three months of this year, whilst Middlesbrough’s economy was one of worst performing in the UK across the same period, according to a new report.
T
he UK Powerhouse study, produced by Irwin Mitchell and the Centre for Economics and Business Research (Cebr), provides an estimate of GVA growth and job creation within 46 of the UK’s largest cities at least 12 months ahead of the Government’s official figures. Published last month, the latest report revealed that Newcastle was ranked 12th in the UK in terms of employment growth in the first quarter of 2018, after the city’s workforce increased by 1.5% year-on-year to reach 221,800. Sunderland led the way in the North East in terms economic growth across the same period with a rate of 2%, meaning the city was among the top 15 best performing cities. As for Middlesbrough, however, the report showed that its GVA growth rate of 1.3% was in the bottom three for economic performance.
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The new report has also predicted that Newcastle will maintain its level of employment growth across the next ten years, with the city’s workforce set to expand by 14% by 2028. In comparison, employment in Sunderland is only expected to rise by 4.8% between now and then. Victoria Brackett, CEO at Irwin Mitchell’s Business Legal Services division, said: “This latest report has highlighted how Newcastle and Sunderland have enjoyed a strong performance in terms of employment and GVA growth respectively in recent months.” Source: bdaily.co.uk
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Te n c h n o l o g y
1,600 new jobs to be created as UK economy set for £2.3bn tech boost The Prime Minister hosted a raft of companies for a roundtable, as part of London Tech Week, to showcase Britain as the best place in the world to run a tech company. US cloud provider Salesforce is set to invest £1.9bn in over the next five years, including the opening of its second UK data centre in 2019. UAE investment fund Mubadala is launching a £300m European investment fund based in the UK; whereas Japanese system integration company NTT Data will invest £41m to open a new office and Innovation Centre, creating up to 200 jobs over the next three years. The Prime Minister has also made a number of commitments so that tech companies will benefit from government funding, and greater access to talent and data under new plans. These announcements include: • A new £2.5bn British Patient Capital programme, which is expected to attract a further £5bn in private investment, to support UK companies with high growth potential to access the long-term investment they need to grow and go global. • A new Start-Up Visa for entrepreneurs will launch in Spring 2019. This will replace a visa route which was exclusively for graduates, opening it up to talented business founders. This will include accelerators playing a role in the endorsement of candidates.
The UK is set to see the creation of 1,600 new jobs and billions of pounds of investment into the economy.
• Opening up key parts of the Ordnance Survey’s valuable geospatial data to small businesses for free to boost competition in the digital economy.
Prime Minister Theresa May said: “Theses measures will allow innovative British startups to invest in their future - and in the UK - by hiring more skilled people, expanding their business and exporting their expertise across the world.
• Two new Tech Hubs will be launched in Brazil and South Africa, to build innovative partnerships and develop skills, capability and business networks in these markets.
“It’s a great time to be in tech in the UK, and our modern Industrial Strategy will drive continued investment, ensuring the nation flourishes in the industries of the future and creating more high-paying jobs.”
Last year, British tech businesses attracted $7.8bn of funding, almost double the amount received in 2016, compared to France and Germany’s combined total of $6bn.
Chancellor Philip Hammond added: “The UK is home to some of the world’s most innovative companies and I want to make sure that they stay at the forefront of the tech revolution. So, British Patient Capital will provide an extra £2.5bn for these cutting-edge business ensuring Britain remains one of the best places to start and grow a company.”
Some 2.1 million people are now employed in the digital tech economy and a new digital tech job is created in the UK every 50 minutes, according to new estimates released last month by Dealroom and Tech Nation.
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International Trade Secretary Dr Liam Fox also commented: “The UK is already
a world-leading destination for tech investment with one tech start-up opening every 50 minutes. “Our tech sector, with our strong legal system, skilled workforce and low taxation economy combine with our world class universities to make us the most attractive home for investment in Europe. “As an international economic department, DIT will continue to encourage investment from overseas with a further series of events to attract inward business. Last month we launched a new online portfolio of opportunities worth £30bn, and in turn this will drive growth and create jobs in our economy.” Sourced from www.bdaily.co.uk. Receive the Bdaily business news bulletin by registering at www.bdaily.co.uk/register
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News
North East Fund to support SMEs at upcoming Northern Powerhouse summit The North East Fund Limited (NEFL), the company delivering the £120m North East Fund alongside four regional fund managers, has announced support for SMEs at the upcoming Northern Powerhouse Business Summit.
£20 million government boost for culture and creative industries in England Arts Minister Michael Ellis launches £20 million fund for culture, heritage and the creative industries to benefit towns and cities across England. Towns and cities will be able to bid for up to £7 million for a number of projects in a certain area to help regeneration, create jobs and maximise the impact of investment. This could be for new spaces for creative businesses, bringing historic buildings back into use or redeveloping museums and art galleries.
T
he company is getting behind The Great Exhibition of the North 2018 by calling on business owners at the expo to make one-to-one appointments with fund managers and discuss their funding needs. Over £120m of investment is available for companies during the next five years through five funds – The Venture Fund, The Growth Capital Fund, The Development Capital Fund, The Small Loans Fund and The Innovation Fund. More than 600 North East businesses are expected to benefit from the programme. The North East Fund Limited CEO Andrew Mitchell said: “The Business Summit provides the region’s SMEs with networking and growth opportunities as well as a
platform to showcase innovative startups and trailblazing scaleups. “It’s the ideal event for those seeking funding and investment to grow their business, to meet with fund managers and receive the expert advice they require.” The Northern Powerhouse Business Summit will take place July 4 - 6 at the Boiler Shop in Newcastle. It is the central business event of the The Great Exhibition of the North 2018. Sourced from www.bdaily.co.uk. Receive the Bdaily business news bulletin by registering at www.bdaily.co.uk/register
The investment will help to grow local economies and increase access to arts, heritage and the creative industries. The Cultural Development Fund marks a new approach for government investment in culture and creative industries. Rather than investment going to a specific venue or artform, the funding will go to geographical locations, including cities or towns in rural areas. The fund also supports the Government’s Industrial Strategy by aiming to boost productivity in towns and cities across England and use creativity as a catalyst to make places more attractive to live, work and visit. Michael Ellis, Minister for Arts, Heritage and Tourism, said: • Cultural investment can have a transformative impact on communities. Creativity, culture and heritage is what makes places special for local people and visitors alike. But it also helps attract inward investment, with businesses drawn to vibrant, exciting towns and cities. • This fund gives more places the chance to harness the unique power of culture to regenerate communities, create jobs and boost tourism.
Andrew Mitchell, CEO of the North East Fund Limited
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Property
Gateshead business centre Metropolitan House acquired by serviced office firm Serviced office specialist The Office Company (North) Limited has acquired the Metropolitan House office business centre in Gateshead.
Lisa Hay, Relationship Manager, Lloyds Bank; Peter Conroy, Director, The Office Company (North); David Gilroy, Business Development Director, Lloyds Bank; Suzanna So, Director, Secure Commercial Finance Ltd.
The Office Company (North) completed the acquisition with the help of a six-figure funding package from Lloyds Bank Commercial Banking. Metropolitan House is the first property bought by the business - a venture founded in April 2017 to provide serviced and virtual office accommodation across the North East and Yorkshire. As a result of the deal, The Office Company (North) will be creating two new jobs at Metropolitan House to provide onsite support services for the office’s tenants. The Office Company (North) has also begun renovations on Metropolitan House to upgrade the building’s exterior design, which will bring the business’ total
“Metropolitan House is so well-established and boasts such a high occupancy rate” 20 | www.teamvalleypublications.co.uk
investment in the property, including the purchase price, to £1.5m. Former headquarters of the North East’s Metro Radio, Metropolitan House is now home to 36 businesses which together employ more than 120 staff. The property currently operates at a high occupancy capacity, features meeting facilities and free parking for more than 100 vehicles, with plans to introduce onsite catering. Peter Conroy, director of The Office Company (North), said: “This is the first of a number of properties that we hope to acquire as we look to grow the business across the North East and Yorkshire. “The building’s previous owner was retiring after 12 years at the helm, and thanks to the support of Lloyds Bank and the expertise of its North East team we were able to jump on the opportunity to secure the business.” Peter added: “The fact that Metropolitan House is so well-established and boasts such a high occupancy rate is testament to the property’s attraction to local firms. Its location just a few hundred metres
from the A1 and its close proximity to both Gateshead & Newcastle upon Tyne makes it a perfect place to situate a business looking to grow. “Over the coming months, we’ll be carrying out significant upgrades to ensure that we can offer the best possible services to our tenants, whilst still retaining our identity as an approachable, accessible and independent provider.” David Gilroy, business development director for the North East at Lloyds Bank, commented: “The Office Company (North) is a great example of a local business dedicated to enabling others to meet their own ambitions by providing accessible, flexible working spaces, coupled with outstanding customer service. “Helping firms capitalise on opportunities for growth is just one part of our commitment to helping Britain prosper, and I look forward to seeing the business take Metropolitan House to new heights.” Sourced from www.bdaily.co.uk. Receive the Bdaily business news bulletin by registering at www.bdaily.co.uk/register
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Mobike expands Newcastle operations to Gateshead The company will be adding 200 bikes to its existing scheme, before expanding the number of bikes progressively, based on demand and popularity of the scheme. Founded in 2016, Mobike is a pioneer in dockless bikesharing, a model designed to improve urban mobility and reduce pollution by encouraging people to cycle more - particularly for short distances instead of using cars. Mobike worked closely with Gateshead Council to ensure the scheme fits into the existing infrastructure, and it hopes the launch will benefit all those attending the Great Exhibition of the North. Founded in 2016, Mobike has pioneered the dockless bikesharing model, aiming to improve urban mobility and reduce pollution by encouraging people to cycle more - particularly for short distances.
Lindsay Coulthard, Operations Manager in Newcastle for Mobike UK, said: “It’s really exciting to be growing our presence in the region, and another testament that our bikes are more and more wanted in the UK. Our Mobikers will now be able to travel much more easily between Newcastle and Gateshead, which should encourage more people to get cycling, especially as summer is coming. We’re also just in time for the Great Exhibition of the North, and we hope that attendees won’t hesitate to use a Mobike in between performances!” Councillor John McElroy, Cabinet member for Environment and Transport – and a keen cyclist, said: “We are delighted to welcome Mobikes to Gateshead. In fact, they are already a regular sight in Gateshead so there’s clearly an unmet demand for the service. We are especially pleased to have welcomed Mobikes to Gateshead in time for the Great Exhibition of the North. We are sure they will offer visitors the perfect way to travel to and from some of the great events we have planned this summer on Tyneside. Bike sharing is relatively new in this area, but people will quickly learn that using and parking the bikes responsibly keeps the system running for everyone as a healthy and sustainable way of getting around.”
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Mobike, the world’s largest smart bikeshare company has announced that it will be expanding its existing Newcastle scheme to cover Gateshead.
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Puzzles
Timeout
Take a coffee break and attempt our latest puzzles
sUDOKU
CRISSCROSS
Write numbers into the blank spaces so that each row, column and 3x3 box contains the numbers 1 to 9.
CLUES Across
EASY
3. To make whole 5. A long journey 6. Belonging to the very distant past 7. Not familiar 9. Stealthily treacherous 12. Highly pleasant to the taste 13. Appraise too highly 14. An enlarged portion Down
1. Interchange thoughts 2. Ruled pages 4. Causing so much damage 8. Highest in rank 10. Make up an idea
MEDIUM
11. Strong, healthy, and full of energy
Use the clues to help fill the boxes with the correct words.
SET SQUARES Populate the grids with numbers 1-9. Each no. may only appear once. Remember: multiplication and division are performed before addition and subtraction.
x +
/
+
-
14
+ +
-
+
x
-
/
9
-2
x
x +
-25 37
-
-
12
x -3
-
47
3
+ +
-6
HARD
15 3
CRISSCROSS: Complete, voyage, ancient, unknown, insidious, delicious, overrate, expansion, communicate, notebook, destruction, supreme, invent, vigorous,
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