LeedsMetropolitan BusinessReview
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In This Issue
LeedsMetropolitanBusinessReview
IN THIS ISSUE: Law Haigh Simpson investigates the Legal Services Act page 3
Development How Leeds start-up businesses are thriving page 8
Trinity Center
Special Report LMBR looks at
economic growth in the city page 10
Finance Kathryn Shaw & Daniel Rosney at Occupy Leeds page 16
Retail Tanya Harris & Ryan
McMurtry on Kirkgate Market page 18
Hainsworth Textiles
Transport Francesca Done &
Daniel Rosney investigate the city’s growing traffic problem page 22
The year ahead is just as hard to predict in Leeds Hopefully by the end of this magazine you will feel more prepared for the ride.
Ryan McMurty
Retail correspondent
Another annual turn has passed on the fervent rollercoaster that is Leeds business. The city possesses an economy that may be diverse but at the same time is consistently competent in a number of sectors.
The LMBR team have travelled across the city, talking to leading figures in business, to find out what issues are the most important today and will be the most important tomorrow. Covering a range of topics such as Development, Law, Finance, Social Enterprise and a host of other subjects which are vital to the growth of the city of Leeds, with everyone doing their best to shed some light on a financial world which appears to be on a tight-rope at all times.
And that, too, is the aim of this magazine. Leeds Metropolitan Business Review strives to provide you with a profound insight into the key issues facing the Leeds economy. From the textile and manufacturing industries the city was built on, to sectors like I.T. and Science which continue to reshape the business prospective.
By the end of this edition you will have been around the world with the Occupy Movement, celebrated with the West Yorkshire Astronomical Society, and even a trip down to the Leeds gay quarter (we did say diverse). These stories among a bouquet of hot topics gathered by the business-hungry students of Leeds Metropolitan University.
With the economic climate as unpredictable as it has been for the last few years, expect 2012 to be filled with more twists and turns than Silverstone.
And if that wasn’t enough to win you over, did I mention it’s free? What more could you possibly ask for?
Future Arts Social Enterprise
Leeds Business Barometer
Oceana Luminar
Office Construction
January 2012 Leeds Metropolitan Business Review
LeedsMetropolitanBusinessReview
Law
‘TESCO LAW’ WILL OFFER DIVORCE WHILE YOU SHOP
Haigh Simpson Law Correspondent
Paul Cotton, senior office partner at Eversheds’ Leeds office said, “The biggest impact initially is going to be felt by high street firms, those offering services such as personal injury advice and will writing. We are of the opinion that, initially at least, it is unlikely to have an impact on us as a firm, or to a large extent other business to business law firms.”
Sarah Day, managing partner of DLA Piper in Leeds said, “The Legal Services Act will have most impact initially on Next time you write your shopping list you the consumer legal services market, as it might want to consider adding a divorce. enables businesses such as supermarkets Disagreements over dinner could soon to expand the offering they can provide to land you in deep water, as the Co-operaretail customers out to legal services, in tive becomes the first high street brand to the same way as they have done for insuroffer a family law service. ance.” The move follows this year’s Legal Services Act, dubbed the ‘Tesco law’ ruling that non-lawyers are able to invest in and own legal businesses. The Co-operative spearheads an expected wave of high street retailers offering legal services, with SAGA and Marks & Spencer rumoured to be keen.
The hope for the high street brands such as the Co-op is that their consumer-friendly image will temp customers away from the more ‘indistinguishable’ specialist legal firms. Martyn Wates, Deputy Group Chief Executive of The Co-operative Group, said, “We believe that the presence of The Co-operatives trusted “innovative and brand and values together pioneering new While the service will with a combination of first not exactly be over-the- service will adclass products and serviccounter it does represent dress current es, will provide customers unmet legal need with greater accessibility a cheap and accessible in challenging alternative. The Co-op to legal advice and better has already trialled free times.” value for money.” ‘drop-in’ legal advice centres in selected Britannica stores. Some within the legal industry have hit back saying the quality of services will not Co-operative Legal Services (CLS) has match those of a specialist firm and that been established since 2006 and already there will always be a need for expert legal offers personal injury, will writing, estate advice. Phillip Way, partner at Mills & administration and employment services. Reeve said, “We’re going to see a barrage This latest development, in partnership of paralegals and unqualified solicitors with leading family law firm, TV Edwards doing volume work, such as conveyancing is being managed by Christina Blacklaws. and straightforward wills. However, there will always be a need for bespoke specialShe said the “innovative and pioneering ist advice which can be offered by expenew service will address current unmet rienced lawyers, barristers and solicitors legal need in challenging times. We want from established firms. It’s not going to to make access to legal services better for be possible to settle the complexities of a people by creating and implementing inmulti-million pound divorce case over the novative and socially responsible services, counter at Tesco.” running high quality services with fair and transparent pricing that the public can An upshot of the new law is that Law firms have real confidence in”. may now be able to seek outside investment or even float on the stock market. The Legal Services Act is designed to One of the few firms to have announced promote competition and innovation in a such plans thus far are Leeds and market regarded to be ‘in need of a shake Sheffield based Irwin Mitchell. In March up’. There are fears specialist law firms will they announced plans to become an Altersuffer as they struggle to compete on price native Business Structure (ABS) and it was with the high street brands. However, top rumoured they had intentions of listing on legal firms in Leeds have shrugged of the London Stock Exchange. the threat posed by ‘Tesco Law’. They believe the changes will only affect the So far nothing has been announced. smaller, less dynamic companies.
Q&A
Allison Page, AWS Legal Business Woman of the Year
What inspired you to build a career in law? I was keen to find a career that had a strong international bias. A firm like DLA Piper provides those opportunities in a fast-paced work environment which I really enjoy. Is it harder for women to succeed in the legal profession? It can be difficult for women to succeed in a demanding profession like law. But the world is definitely changing and sector-wide, there appears to be a growing movement towards supporting women. At DLA Piper we have set up the Women’s Network, an internal forum which provides an energising, empowering and effective environment for women working here. It gives women a platform from which to network, find the right help and support to achieve personal objectives and help develop the careers of their contemporaries or more junior employees. Externally, I’m a member of The Two Percent Club, a national initiative which aims to help more senior women raise their profile. Do you have any words of advice for people hoping to build a successful career in law? It’s essential that you do your research into the type of lawyer you want to be. There are a whole host of different options and career paths and making the right choice is crucial. It’s all about finding the right fit to play to individual strengths and characteristics.
January 2012 Leeds Metropolitan Business Review Page 3
BUSINESS BRIEF Bite-sized news from across the Leeds business landscape Law applicants fall
LEEDS Metropolitan University suffered a 68% drop in LPC applications in 2010/11. The slump comes as ¬students are struggling to access funding for the course, which costs £6,000-£12,900 p.a., after RBS and NatWest withdrew vital postgraduate loan facilities. Law schools are among those most affected by the biggest drop in university applications in more than 30 years. The number of candidates applying to study law dropped by 5.2% this year. Haigh Simpson
tive (LEGI) who decide which applicants receive their requested grants. The aim is to encourage local enterprise in deprived areas of Leeds. Aryelle Hendricks-Thomas
We can offer space for as little as £20pm depending on the hours you can work.” Aryelle Hendricks-Thomas.
Allied docks buyout
ALLIED London has bought the 150-year head lease Clarence Docks in Leeds. The 1.2 m sq ft mixed-use scheme has been SMALL social enterprise Fabrications underperforming since Crafts have set up the start of the recesa workspace in sion. The development Leeds city centre was opened in 2007 and with rentable space Allied London has tenants for people in the will pay ground currently including Pizza crafts and fashion rent of around Express, AllTesco, Saints and industry Director £250,000 per New enterprise Mumtaz Restaurants. Dawn Wood not year. THE LEEDS community foundation have only offers space The Docks previously set up a Leeds social enterprise fund . This but offers continubelonged to Lend Lease, funding is a grant system which grants an international propous support and from £250 to £200,000 for social organisa- mentoring. Ms erty group. According tions to enhance their objectives and thus Wood says, “There to propertyweek.com, becoming more successful and enterpris- will be a charge for space and you will no debt is attached to the deal and Allied ing. Organisations need to demonstrate a need to work a number of hours per week London will pay ground rent of around certain aim to be given the green-light for if possible, when you will also be able to £250,000 per year to British Waterways funding. This is then overlooked by the and £150,000 in empty rates as well as serbook appointments with customers etc, council’s local enterprise growth initiavice charges. Allied London is a property development company Page 4 January 2012 Leeds Metropolitan Business Review
Space for craftwork
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LeedsMetropolitanBusinessReview Launched in March 2011, Construction Yorkshire works with developers, contractors and subcontractors on major construction developments throughout Yorkshire. Cooper and Hall is a specialist quantity surveyor company based in Harrogate. Construction Yorkshire aims to help local people benefit work wise from development in their area and recently won two national awards at the Constructing Excellence Awards. Phil Cooper, Director of Cooper & Hall, said: “Construction Yorkshire has a great deal to offer members and we aim to take to full advantage of their skills. Other members of Construction Yorkshire include development giants BAM and Leeds Metropolitan University. Francesca Done
Clarion House
ELIZABETH HOUSE located on Queens Street in Leeds has had its £1.6 million renovation completed. The building originally built in the 1980’s will be the new headquarters of law firm Clarion. The firm will be moving its 100 person team from their 10,000 sq ft office on Oxford Place into a 15,000 space in Elizabeth House. The development was bought by development firm J F Finnegan last year from the real estate investment group Valad and has undergone a grade A refurbishment programme. Bowcliffes and Knight Frank are acting as joint marketing agents for Elizabeth House. Clarion plans to move into the development in April of this year. Francesca Done
Twitter trouble
ONLINE impersonators could face legal actions warns Leeds law firm Cobletts LLP. Thousands of Twitter accounts are currently being used to mimic famous figures. Susan Hall, commercial partner and ICT and media specialist at the firm, said, “Regulations and legislation existed to protect the subject of spoof accounts, which regularly appear on the micro-blogging site. Although people setting up known for redeveloping Spinningfields in such accounts might feel they are technically astute enough to Manchester as well as the Brunswick in avoid detection, there are range Bloomsbury. of options open to those with Francesca Done sufficient money and determinaEntrepreneurs rage tion to pursue those behind fake SOCIAL entrepreneur Rob Greenland accounts.” (pictured right) of thesocialbusiness.co.uk Haigh Simpson expresses his rage on twitter regarding the Property merger article “the trouble with not defining social enterprise” blogged by the Guardian. PROPERTY consultants Edward Symmons and Newcastle-based charHe tweets, “I’m reacting so badly to this tered surveyors, Storeys:SSP have @guardiansocent blog that I might soon merged at the start of this year. come out in a rash http://bit.ly/ztwmfq #socent #definitions”. Rob Greenland is an The offices in Leeds are set to established social entrepreneur that has in combine and business will recent years worked closely with organisa- trade as Storeys Edward Symmons. The head of tions in Leeds including the city council, Storeys:SSP Leeds ofworking to better health and adult social fice, Phillip Clarkson, care in areas such as Armley and Harewill become director Hills. of the new company Aryelle Hendricks-Thomas. and Colin Hunter, Milestone member who works as a COOPER and Hall is the 60th member landlord and tenant to sign up to Construction Yorkshire. consultant, will
Business Brief also become director. Edward Symmons has 60 years work experience in property assessment management and nine offices in the UK. Storeys:SSP turnover last year was approximately £4 million and Edward Symmons was approximately £17 million. It will bring the Edward Symmons employees up to 285. Francesca Done
Airline jobs boost
IRISH airline company, Ryanair, has announced that over 1000 jobs will be created across Europe in 2012. LeedsBradford Airport will be one of two airports in the UK to benefit, the other being Manchester, as the company expands its fleet of aircraft. The move will boost the current 8000 strong workforce by 10% as the company hires pilots, cabin crew, engineers, sales and marketing staff. Daniel Rosney
Leeds game launch
LEEDS-BASED games studio Just Add Water have recently released their newest title, Oddworld: Stranger’s Wrath HD much to the delight of fans worldwide. The game, originally ported from the 2005 Xbox title to current gaming platforms, puts players in the boots of Stranger, a pacifist bounty hunter scouring injustice from the Land of Odd. Boasting beautiful high-resolution graphics and a remastered soundtrack, Stranger’s Wrath HD has already sold over 1 million copies worldwide in its opening month. Michael Glavin
January 2012 Leeds Metropolitan Business Review
Food & Drink
LeedsMetropolitanBusinessReview
BYE BYE BAKED BEANS, HELLO POP UP BISTRO
Morrison’s cook up a new way to bring affordable gourmet food to the people of West Yorkshire AttributionNoncommercialNo Derivative Works Some rights reserved by Rebecca Brown
Rebecca Brown
Leisure and tourism
YOU MAY have seen the new Morrison’s advert where Freddie Flintoff puts in a performance more wooden than the bats he probably should have stuck to playing with and introduces us to five of the world’s top chefs. Well this is just one of many new tactics used by the supermarket chain to entice shoppers and compete with the higher end food stores. While the jury is still out on Freddie’s future as an actor, maybe Morisson’s pop up restaurants will prove to be a more effective promotional Morrison’s tool.
new range of food is now available in store.
supermarket. Or could this be a diversion With an ‘invitation only’ guest list and Michelin starred chefs behind this newest tactic, get the guests drunk and they won’t selection of dishes, Morrison’s are attempt- notice the food? ing to step up their game and produce First impressions reveal the menu to be posh nosh that can compete with Marks inviting, as were a number of the dishes. and Spencer’s and Tesco’s finest. Scallops served on broad bean and sweet Although the initial impression may pea puree looked beautiful and despite beseem somewhat ing renowned for its “The decor is beautiful dubious, with Morrison’s surely and the first glass of cham- difficulty to get right, were cooked and seapagne is handed over bepunching above soned perfectly. The fore you even get a chance their weight, beef Carpaccio, razor guests appear to be to sit down.You could be thin and delicate permore than willing forgiven for forgetting this haps didn’t need to be to take one for the has anything to do with a quite so obscured by team and fill their budget supermarket.” the mountain of Morstomachs in a bid rison’s value rocket to find out if but they can be forgiven for the presumpWaitrose should be shaking in their gourtion that more is less on this occasion. met boots quite yet? Much bigger mistakes could be made, for example choosing the pizza for the main. Like an apparition floating on the river in Granary Wharf, M kitchen definitely doesn’t fall into the garishly yellow If you expect the extravagance of this venue to be echoed in all its main dishes, category that we used to associate with Morrison’s products. With simple lettering think again. The pizza calabrese is quite above the door of a small stone building, literally just that. No embellishments or fancy flourishes, just the on-going theme it is chic and welcoming. On entering, of rocket bunged rather haphazardly the hostess is surprisingly formal but friendly, like an enthusiastic checkout girl onto an oven cooked pizza. Tepid in both in a very good suit. The decor is beautiful temperature and taste, it is unfortunately and the first glass of champagne is handed exactly what is expected from Morrison’s and a disappointing follow up to the startover before you even get a chance to sit ers. down. You could be forgiven for forgetting this has anything to do with a budget However all is not lost. The ‘Dumfries
Page 6 January 2012 Leeds Metropolitan Business Review
house’ dry traditional-reared beef steak is both generously sized and flavoured, perfectly accompanied by sweet potato gratin, much more like a celebrity chef showing off. Finally the desserts range from a satisfyingly stodgy and deliciously gooey tarte tartin, to a cheesecake which would have been a tad bland without the addition of a tangy raspberry compote. The intention of the M kitchen is to use the low priced ingredients in the bistro range to create tasty, classy and seemingly pricey dishes and thanks to the abundance of Morrisons stores in Leeds the student population could really benefit from this. With three superstores throughout Leeds, it is easily accessible and easily affordable. Although a few of the dishes have the ‘wow’ factor of a McDonald’s chip, overall the range is varied, tasty and great value for money. For under a fiver you can get a serving of margherita pasta that could sink the titanic, or a generous shepherds pie with a choice of side dish that could feed a hungry Headingley household. Gone are the days of the baked bean and pasta diet, even a tight student budget can stretch to the Morrisons Bistro range and with their offer on half price champagne beginning after Christmas, if you’re feeling flush you can really dine in style.
LeedsMetropolitanBusinessReview
Food & Drink
PANCAKE VENTURE IS NOT A CREPE IDEA Neil Tipping and Jon White, has created four new jobs and is set to further expand in a new manufacturing facility in south Leeds, following a six figure investment.
Maybelline Byrne Manufacturing
The expansion includes a brand new production line that manufactures various sizes of pancakes, including blinis at rates of up to 18,000 an hour.
A PANCAKE manufacturer in Leeds has received a £9000 business grant from the council to go towards the cost of a new automated production line, to speed up and boost production of its ‘secret recipe’ pancakes.
Neil and Jon first set up the business in 2005 in a small shop unit in Headingley, but it now supplies pancakes nationally to over 40 UK outlets, including Butlins and Merlin Entertainments Group.
The company, Enjays, set up by former university colleagues
The pair were recently joined by Craig Hindmarsh, known
“We feel we’re at the start of a much bigger future”
for managing large blue chip food manufacturing businesses, who will drive the expansion forward. He said: “I saw the potential from the first time I met them. The growth of Enjays since its beginning has been phenomenal, showing that there is fantastic demand for its products. “The new facilities are enabling us to expand our range and offer our existing customers exciting new products as well as allowing us to look at the food service sector and retail sector in more detail. We feel we’re at the start of a much bigger future.”
AttributionNoncommercialNo Derivative Works Some rights reserved by Enjays
The grants come from Leeds City Council’s business growth fund, designed to support capital investment and job creation. They are worth up to £10,000 and are available to cover up to 20 per cent of an investment in new equipment and premises fit outs. Head of the council’s business and enterprise service, Phil Cole, said: “We’re delighted to be supporting entrepreneurs such as Neil and Jon. They have a great business proposition and new ventures of this kind play a vital role in creating new jobs and in developing a diverse and thriving economy here in Leeds.”
PUBS NO LONGER A HUB FOR GRUB them a change in their overall business strategy.
Rebecca Brown
Leisure and tourism LEADING pub and restaurant operator and owner of 27 venues in the Leeds area, Mitchell and Butler have this week announced figures and with
Despite a monopoly on the pub trade in Leeds with ownership of popular drinking holes of both students and professionals such as Headingley taps, All Bar on e, Nation of shopkeeper and the family aimed Toby Carvery pub chain. M+B have reported their tax profits to be down by 7.7% from 175 million to 157 million in the past year. Mitchell and Butler have tried a number of tactics to gain more business and keep the crowds
Read about the Occupy Leeds Movement Page 16
coming through the door. They have seen 8 changes of CEO in the past four years. A clear sign the company is struggling and unsure of its future. According to CEO Bob Idol, new investments into inner city pubs like All Bar One in Millenium square Leeds, is going to change the direction in which the brand is heading. Focusing less on food and more on alcohol until eventually some of their pubs will be serving alcohol only.
Page 7 January 2012 Leeds Metropolitan Business Review
Development
LeedsMetropolitanBusinessReview
BUSINESSES BLOOM TO
Despite economic woes Leeds
AttributionNoncommercialNo Derivative Works Some rights reserved by Mark Ramsay
AttributionNoncommercialNo Derivative Works Some rights reserved by PhotoGraham
In the current financial climate, Leeds is fighting an uphill battle to boost economic growth. 15 years of cocktail and mixing experience, he began working as a glass collector in Portugal at 14. He has since seen his passion for cocktails take him from Paris and New York to the American Cocktail Academy where he studied hospitality management and mixology. Sophisticated and relaxed inside, the Aryelle HendricksMaven has a back bar which far exceeds Recruitment Recruitment Leisure and tourism its minimalistic decor. The bar has a really Thomas personal feel due to no advertising or even Social enterprise a sign above the door - it relies on wordof-mouth, combined with repeat custom from a close and loyal group of customers. Its extensive menu is constantly changing as the friendly bar team create and experiTUCKED away from the rabble of Call LEEDS Play Network is a 20-year-old ment with new cocktails Lane, The Maven is the first bar of its kind organisation which emphasises the in Leeds. Cocktail lounge by night and importance of play in Leeds. Within LPN In the daytime the bar becomes a drinks drinks academy by day, it is designed to academy designed to help those who want is a project called Play Partners who, on change the way in which people drink and to move into the hospitality trade. It trains behalf of LPN, work with underprivileged enjoy their nights out. people on mixology and bartending. Nino children in the area. Play Partners have claims “Cocktail making is an impressive found that lack of play for children in Having been refused any loans or fundskill that can be constantly expanded and unfortunate situations find themselves ing by banks, owner Claudio Antonio (or worked on, it’s not only a skill for life but a becoming socially secluded, and many “Nino” as he is known) put all his life sav- great career prospect that our students can develop behavioural problems. ings into creating his dream. With over learn, master and value.”
Daniel Rosney Rebecca Brown
Page 8 January 2012 Leeds Metropolitan Business Review
Daniel Rosney
END RECESSION GLOOM
business continues to prosper
AttributionNoncommercialNo Derivative Works Some rights reserved by Tim Green
AttributionNoncommercialNo Derivative Works Some rights reserved by SOCIALisBETTER
Here, Leeds Metropolitan Business Review takes a look at some of the success stories. is all about helping people find properties to buy and rent quickly, while allowing people to market their properties or spare rooms cheaply. For those who are struggling financially in the current climate it allows them to sell their home without the estate agent commission .”
Their aim is to set up after-school and weekend activities for children, which encourage mainstream play and leisure tradition. Jessica Cullen joined the LPN in January 2011 as a voluntary worker and is now a play support worker. She said “Play Partners is a great environment to be a part of. There aren’t many projects like them around. They provide many great play experiences and opportunities.”
Emily DanielLevy Rosney IT correspondent Recruitment
Over the 2009/10 period LPN were facing the harsh reality of going out of business due to lack of funding and struggled to find support. With a possible end in sight, Lloyd’s TSB stepped in and have been SOHAIL Rashid, a former property confunding sessions and taster days. veyancing lawyer from the Yorkshire firm Langleys and JB Law, created an innovaWith funding back on track LPN and Play tive means of purchasing and marketPartners - who were at one stage down to ing properties over the popular social a team of two - have been able to provide networking site Facebook. more job opportunities; this in turn can provide a better level of service to the Mr. Rashid, 26, has recently launched a children that are in need of the benefits of service that allows homeowners, estate play. agents and landlords to market and view properties online. He said ”Property Place
The social networking site is used by millions of people in the UK alone and its influence is powerful. Rashid said “with nearly 30 million UK users, Facebook is the ideal place to advertise your property as it provides the added Facebook features such as sharing with friends, like buttons and commentary. This allows people looking to buy, sell or rent a home to use their extended social network to find suitable people quickly”. As well as practicing law, Rashid has a strong background in IT, and throughout his legal career worked with the major global IT company Steria International. Property Place has already attracted more than 400,00 properties long before its official launch later this month.
January 2012 Leeds Metropolitan Business Review Page 9
Special Report
LeedsMetropolitanBusinessReview
LARGER OVER OLDER? LAW FIRM CLOSURE DEEMED “SENSIBLE”
Haigh Simpson Law Correspondent
Are ‘one stop shop’ law firms putting smaller personalised firms out of business? The question comes after Leeds based Brooke-North, one of Yorkshires oldest law firms closed this month. The practice prided itself on offering a bespoke service to individual clients, an approach that came unstuck as the recession hit. Meanwhile many of the cities larger firms including, Clarion, Irwin Mitchell and Lupton Fawcett continue to grow and prosper. Rodney Dalton, a senior figure at Brooke North for 16 years said Brooke North’s approach of offering a bespoke service for its clients across different areas of law, rather than a “one stop shop” for all its clients had actually had a negative effect. Dalton has now joined Lupton Fawcett who have recently acquired the Harrogate & TeesValley based practice of Davidson Large LLP. Its principle Russell Davidson will join the Leeds office of Lupton Fawcett as an equity member Director. He said, “I believe that combining Davidson Large with a bigger practice is a sensible decision after sixteen years of running my own independent firm. Many commercial matters now require in-depth corporate, intellectual property, tax and litigation support and these are readily available at Lupton Fawcett, alongside a range of other specialisms.”
the downturn has also presented some opportunities with businesses which are able to offer first rate levels of service more cost-effectively proving able to buck the trend.” He continues, “2011 was another year of strong growth for Clarion both in terms of profits and turnover and we are confident that the momentum we have built will continue during 2012…We have continued to invest in the business whilst maintaining profit margins, recruiting more than 30 new members of staff over the last 12 months and we will also see another key milestone in the firm’s development when we move into our 15,000sq ft refurbished offices at Elizabeth House in the summer. DLA Piper are another forward looking firm enjoying success in tough times.” Alison Page, partner at DLA Piper’s Leeds office said, “We’ve been able to adapt our business model to accommodate the challenges we’ve faced and have been very prudent. As a result, we have ridden out the downturn very well so far. The projects team itself continues to go from strength to strength and has in fact expanded here in Leeds over the last couple of years. Although the downturn does throw up challenges, it also provides opportunities to move into different markets and do new things.“
Healthy state
Despite its healthy state the law industry cannot rest on its laurels with the next year posing a potential landmark in the sector. The Legal Services Act 2007 is expected to shake up the industry as it opens up to non-lawyers. It is still too early to say what will happen but there are some who fear that this will open up the marketplace to a much cheaper lower quality over-the-counter service.
Many firms appear unperturbed on the issue, in an article in Leeds and West Yorkshire Lawyer Ajaz Ahmed, founder of Freeserve says “respondents can be broken down into three categories. The first take a head in the sand approach and a complete denial that it will effect them; the second It seems clients are opting for a more recognise the need for change but don’t streamlined, cheaper package over the traditional face-to-face service offered by know how so they just say it will only affect other firms; and the third category the old guard. of respondents note the need to change and are actively pursuing a course of Clarion are one of the firms benefiting from offering a more cost-effec- action. He continues, “Sadly the vast tive service, it has reported strong growth majority fall into the first two camps.” with an increase in turnover of more than The legal industry is in a period of change 25 per cent year on year for the period and Leeds firms will be looking to adapt May to November 2011. Managing and evolve to avoid more casualties in Partner Mark Burns said, “Although we 2012. The signs are good but as the and our clients have faced an extremely tough economic environment, recession drags on the buzz word for 2012 seem to be affordability.
January 2012 Leeds Metropolitan Business Review Page 10
ECONOMIC
OUTLOOK: FINANCE
Janet Shead, a leading lecturer in Accounting and Finance at Leeds Metropolitan University, believes that the financial sector in Leeds is a rollercoaster ride of ups and downs, with the current economic climate heading towards a standstill. “I guess if I was saying there was going to be growth it would be more to do with the financial advice services, so financial planning and advice to businesses.” There is a definitive feeling of dread in the air where finances and economics are concerned. “So, if things deteriorate who knows? I don’t think some of our banks are at as high a risk as some European banks but even all the measures that are being put in place are just sticking plasters, not solutions.” “The problem is they want to lend to people that have money, because they are the safe bet and that’s not where the money is actually needed and that’s the big dilemma with lending at the moment.” Janet is convinced that the biggest problem in the sector is downsizing. “If you look, most of the companies in Leeds are still there, they’re just shrinking. I think the one area that hasn’t shrunk is insurance, that’s still as big as ever.” She continues, “You have legal requirements in terms of insurance that keeps that, generally speaking, in place. I would have thought that the growth in the finance sector would be managing and recovering bad debts, so I would expect that those departments have expanded.” In terms of growth, Janet thinks there isn’t much hope for the near future. “They always say accountants win whatever and at the moment if you work in insolvency or those sort of areas you’re booming.”
“
I think Leeds is currently doing the best out of the cities in Yorkshire
Adam Selker from Bruntwood
Francesca Done Development
Walking through Leeds it is easy to see how the city has been affected by the credit crunch. To let signs, that have been there since my first year of living in Leeds almost three years ago, are still hoping to encourage tenants to rent thousands of sq ft of office space. Dozens of developments in Leeds remain without tenants. No1 Leeds, 10 South Parade, Toronto Square, The Mint, 9 Bond Court, 1 Broad Gate, Elizabeth House and West Riding House to name a few are all massive developments with office space available.
skyscraper development which was going to be made up of two towers, the tallest at 564 ft and made up of 55 floors and the smaller one having 33 floors. The value of the site, which is located near Leeds train station and is still boarded up to this date, was estimated at approximately £21 million. After the development was cancelled the company developing the site, K W Linfoot, went into administration and investors gained their money back only through insurance companies. The Business Desk recently reported how the construction sector has continued its recovery through December marking 12 months of expansion. However retail development seems to have survived the recession as Trinity Leeds has continued its construction throughout the last year as well as plans for the proposed Eastgate Quarter are still underway.
Leeds doing well
Compared to other cities in Yorkshire Leeds has been doing well considering the recession. Ian Briggs, editor to The Business Desk said “I’ve been lucky enough to cover a property conference every year This shows how the supply and demand of in Cannes. I went this year and then went commercial property in Leeds is currently in 2007 when I was with the Yorkshire out of sync. This leads back to before the Post. In 2007 there were loads of people recession in 2007 where the property from Yorkshire and Leeds saying we’re sector was on a high and developments doing this scheme and that scheme trying were going up left right and centre. The to bring investment from a lot of wealthy famous Lumiere skyscraper project that people.” turned into a disaster when it was put on hold in 2008 later to be cancelled in 2010 “When I went this year there was hardly is a prime example of when the world of anyone from Yorkshire or Leeds and the development began to grind to a halt. investors weren’t there either. You can’t deny that the recession has hit the investLumiere was supposed to be a mixed-use ment world. Before investors would say
we’re not really too concerned about how risky it is we’ll just put loads of money in but because what’s happened with the banking crisis they’ve basically not got their money back.” “However I think Leeds currently is doing the best out of the cities in Yorkshire. Bradford is pretty slow and Sheffield has good developments around the train station but because of Leeds’ image and size, it attracts inward investment from abroad and other areas so it has got a bit of a better profile in the development world. ” Recent signs have suggested the Leeds’ development industry is picking up. The council have approved a planning statement for the an office development on Sovereign Street which will be built on the site where the ghost of Criterion Place lies and also the Clarence Docks area of Leeds which has been underachieving through the credit crunch has been taken over by Allied London. As well as this the refurbishment industry has continued to run smoothly. Adam Selka from Bruntwood, who are a leading UK office and commercial property provider, said “When tenants are seeking new premises the environmental impact their business has becomes much more important. “What’s more, it is not only “new build” projects who can achieve BREEAM (Building Research Establishment Environmental Assessment Method) excellent buildings but also redeveloped buildings such as City House above Leeds City Train Station.”
January 2012 Leeds Metropolitan Business Review Page 11
Special Report
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ECONOMIC GROW manufacturing exports have increased for the forth quarter in a row, boosting hopes Phillip Jones, of Duffield Printers Leeds of an export - led recovery in the region. says: “Small to medium companies like ourselves definitely need all the help they The report shows a 46% increase in can through these tough times. It’s overseas orders and a 20% increase in currently survival of the fittest and overseas sales, from last quarter, with an securing finance from banks etc for increase of 89% in manufacturing export possible capital equipment investment orders and a 81% increase in sales in the is almost impossible. I’ve attended a couple of events at the Leeds City Council second quarter witnessing a dramatic year Manufacturing on year improvement. The service sector recently and they are definitely trying to also displayed signs of improvements in promote growth in Leeds, but how exports with overseas orders rising by 5% successful they have been so far I’m not and overseas sales increasing by 19%. sure. If the government brought in some Since the recession, the EEF - the legislation that all invoices from SME manufacturing employers organisation, Ian Williams, director of policy at Leeds, companies are paid on a maximum of has downgraded its growth forecast to just 45 days then this would be a major help. York and North Yorkshire Chamber of 0.9% in 2012, after effects of the Eurozone, Smaller companies like ourselves are often Commerce, says: “The favourable export concerns that fewer companies can cope environment seems to be encouraging bullied by bigger organisations into after price rises of profit margins, and job payment terms of 90 days or more and more businesses to trade overseas and shortages. After manufacturing was these latest results signal an export and either you accept it or they move their outperforming other sectors as the business to a rival company that will. Such manufacturing led recovery. However, the economy began to pull out of a persisting trouble in the euro zone poses a long payment terms damages cash flow recession, with a growth of almost 1.5 per and can put well run profitable companies threat to exporters.” cent, compared to a reduction of 0.5% “Business success must sit at the heart of at risk.” in the economy as a whole, the news of a the Government’s policy. We are not out much slower growth is creating concern David Baggely, of Leeds city council, says: of the woods yet. Cutting the deficit is, to where the future of manufacturing lies “The government does need to do a rightly, a Government priority, but we also in Leeds. need a strategy for growth.” number of things to support the growth of the sector. The biggest challenges are Chief economist Ms Lee Hopson, of the around skills – replacing workforce skills Baggely adds “There are particular opManufacturing Organisation UK says: portunities in what people are calling ‘low within manufacturing as people retire “Manufacturing has been a key pillar in carbon manufacturing’ - which essentially – and attracting a new generation into the recovery so far and it looks like the means renewable energy technologies, manufacturing.” sector will still end the year on the up waste management and recyling - and if “There has been a lot of talk from with positive output and orders responses politicians about the importance of Leeds succeeds in its bid to become the posted over the past quarter. However, location for the Green Investment Bank, manufacturing in terms of helping short-term confidence has all but fallen this will give a boost to companies across ‘rebalance’ the UK economy in the wake away. the region that are operating in this sector. of the recession. What that means is that they want to see a more diverse economy, But the key thing looking forward is for “The signs of caution that had been with less over reliance on financial servic- Leeds to retain a diverse economy and emerging through the second half of this es in particular. They manufacturing is an year have clearly become more entrenched also want to boost “The news of essential part of that as global growth concerns have escalated. export-led activity a much slower diversity.” There are not only question marks over to help with the bal- growth is creating wider manufacturing prospects at the David Workman, ance of payment, the concern to where beginning of 2012, but also the exports the director difference between the future of and investment needed to underpin general of the what we import and sustainable growth.” Confederation what we export, and manufacturing of Paper manufacturing has a lies in Leeds” The manufacturing sector in Leeds Industries says that key role to play in this generates 10.8% of Leeds’ total output of it is increasingly because it is responsiover £15billion a year, employing a evident our future economic growth in the ble for over half of exports. “ workforce of over 39,000 people. It is the UK is going to be much more dependent third largest manufacturing centre in the The results of the Leeds, York and North on manufacturing than it has ever been. UK. Many companies are expressing their Yorkshire Chamber of Commerce before. need for help from the government, in Quarterly Economic Survey show that order to increase growth in their sector.
Maybelline Byrne
Page 12 January 2012 Leeds Metropolitan Business Review
WTH IN LEEDS fabrics used in uniforms for fire sector within the UK is in decline the retail fighters all over the world. I spoke with expenditure is very much on the increase; the managing director of the company this view is supported by a study carried Adam Hainsworth and asked if their line out by the Institute for Manufacturing at in protective textiles had aided them in Cambridge University which shows that creating a niche market and had therefore 3.25 million tonnes of clothing and textiles boosted company profit, he replied: ‘It flow through the UK each year with has, yes. Because if you’re dependant on consumers in the UK spending around one particular sector, for example retail, £780 per head per year on clothing alone. you would be experiencing a down at the moment but because we’ve got so many The textiles and clothing industry remains Textile correspondent products over all we can survive the peaks the UK’s ninth largest manufacturing and troughs and it means also that we are sector, and has a turnover of over £17.7 completely vertical and we like to control, billion per year. The British textile inTo begin assessing the economic growth of where possible, the product from start to dustry has been hit by one of the deepest textiles within the UK, it is initially finish.’ slumps in its history over the past five years important to understand its relevance on a and has most definitely been detrimentally global scale. In 2000 the world’s For the majority of businesses it is affected by the recession. Total output has consumers spent around $1 trillion on becoming increasingly difficult to keep up declined each year and from the first clothing; these figures calculate that seven with the modern day approach to supquarter of 1997 to the second quarter of per cent of total world exports are in ply and demand. A recent trend in UK 2001, production collapsed by 30%. At clothing and textiles. Significant elements demand for clothing has been the shift to the end of the 1970’s the UK industry of the sector are ‘fast fashion’ with consumers expecting to employed over 800,000 people, two thirds dominated by developing countries, see an increasingly rapid range of styles of those jobs have now gone. particularly China and Asia. coming directly from the catwalk into the store. This new demand for fast, flawless There are numerous factors behind the The industry has unfortunately seen a fashion has generated a huge demand for collapse in production of textiles within the steady decline due to competition from seamless production technologies which UK; the impact of the strong exchange rate overseas. Activity in the sector within the are one way to enable the quick has made imports of textile products much UK is now focused on design as opposed production of complete garments. I spoke cheaper when priced in sterling. The high to production but potentially the UK may with Hayley warren, a textiles expert from value of sterling has also led to a dip in also serve as a source of innovation, Leeds who told me that: ‘A textile exports from the UK. particularly for niche or high quality complete garment can now be produced products. An example of this is the UK’s on a knitting machine which costs around There has been a gradual erosion of this strength in wool production which has £50,000; this new demand over the last traditionally been recognised for technology leads to decade not least from delivering state of the art goods to quicker and cheaper “by ensuring decision by retailers international markets such as Japan and our brand is of a the production than such as Marks and the USA. I spoke to Malcolm Berwin, the traditional methods high quality we Spencer to outsource president of the Leeds tailoring company because less labour maintain our cli- their supplies from Berwin and Berwin to ask if he felt his intensive cutting and ent and custom- outside the UK. The company benefitted from producing high sewing is required.’ to outsource is er relationships” decision quality suits and other garments for niche Modern industrialoften largely audiences, he replied: ‘We always do our ised methods such influenced by the price best to ensure that our brands showcase as these are making it more difficult for of manufacturing overseas, for example the the ultimate in quality and style, by businesses using traditional hourly wage within the clothing industry in ensuring our brand is of a high quality we manufacturing techniques to compete; this China is around 50p and in India only 30p maintain our client and customer is steadily leading to a trend within the UK as opposed to the UK national minimum relationships. This is why we have been in where a demand fashionable, low priced, wage of £6.08; in addition to this the price business since 1885.’ clothing has developed. of cotton in China works out at around 1p per pound of cotton. The UK is also beginning to compete with In response to the present trend in ‘fast the international market in specialised fashion’, clothing chains like Primark and Whilst some businesses have managed to materials by designing and manufacturing Matalan develop high fashion brands at find a competitive niche market, for the technical textiles, such as those for very low prices and are often able to majority the economic growth of textiles is protective clothing and medical use. manufacture rapid copies of famous in decline. Hainsworth is a textiles company based in designer garments. It appears that Pudsey which specialises in heat resistant economically although the textiles
Lauren Foley
January 2012 Leeds Metropolitan Business Review Page 13
Tourism
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GAY QUARTER ROW
“
The gay village will benefit Leeds as a whole
“
Leeds Gay Pride attracts thousands of gay and bisexual people to the city centre
Liverpool was recently granted a similar “gay village” status having seen the huge success of Manchester’s Canal Street. However it has ben argued that Canal Street takes being a tourist attraction to nights such as The Viaduct and Mission, he thinks, “people come to Leeds from all the extreme, attracting rowdy groups, hen over the world and what a great advertise- parties and party goers that spoil the area ment it is for our city to have an officially for the city’s locals and gay community. recognised gay quarter.” Sarah Carmondy, It has however boosted business for the Liverpool bars and clubs it involves. editor of Gayleeds.com is spearheading Leisure and tourism the campaign, claiming that it will benefit not only businesses in the area but Leeds Unlike Manchester’s Canal Street, the Leeds gay quarter will include a much as a whole. smaller area and “People come to fewer bars. With Following the success Leeds from all over just five bars New of Leeds Gay Pride the world and what a A campaign to grant official status to the Penny, Fibre, last year which great advertisement Leeds ‘gay quarter’ has sparked much Viaduct, Queens attracted 23,000 peo- it would be for our debate and divided the city and nightlife Court and Mission, ple, Pudsey conserva- city to have an community. Plans put forward to Leeds and one sex shop, tive MP Stuart AnCity Council to rename the area from Call drew recently joined officially recognised Bent. According gay quarter” Lane to Bridge End, and the far end of to the schemes’ the campaign, giving Briggate, the ‘Leeds gay village’ are press- it his backing. Bars such as Fibre and Facebook group, ing forward, despite much opposition. which has over 200 members, George is Queens Court are popular with students putting forward the idea to paint the railand professionals in Leeds regardless of The plans were initially proposed by loway bridge with Rainbow stripes, a garish their sexuality. Many worry that the cal entrepreneur and gay businessman introduction of an official gay status to the and obvious way to signify who is most Terry George. As the owner of some of area would ruin this positive and laid back welcome there. Leeds’ most popular gay bars and club atmosphere.
Rebecca Brown
Page 14 January 2012 Leeds Metropolitan Business Review
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Media
INVOLVEMENT IS KEY FOR MEDIA STUDENTS With the current state of the media industry and as the BBC plans to cut 2,000 jobs and 20% of its budget in the next five years how will this affect prospective students choosing a media related subject?
Catalina Szabo Media correspondent
Jonathan Clough of MetTv, a television station made by the students of Leeds says “difficult times within the media industry have led to a rise in the involvement within our student media. More students are realising that experience is key. Having the opportunity to make mistakes when you’re in that environment is an invaluable part of developing the skills necessary to be a journalist”
of the PR Profession survey revealed that only 20% of all PR practitioners believe that they are at risk of being made redundant. This is down by 8% from 2010. It is no surprise that in this crisis state where other industries are losing business, PR efforts have been brought in to attract investments, influence customers, and gain public support. CIPRS survey shows, in Leeds alone, the media, communications and advertising sector is growing by about 10% a year. AttributionNoncommercialNo Derivative Works Some rights reserved by jone.nyborg
AS AN estimated 29 jobs are to be cut at the BBC in Leeds, with Radio Leeds alone expecting a loss of 11 positions, what does the future hold for the hundreds of students studying journalism and other media subjects at Leeds Met?
“ Taking into consideration the new fee structures alongside this time of austerity, potential students are looking much harder at the reasons for taking a higher education course. The skills students will learn from university lecturers will be invaluable if they want to pursue a career within the industry.” Jonathon explains.
“All the signs are good for the media industry, but it’ll be harder work for less money after students graduate”
There are high hopes for MetTv after winning a NASTA earlier in the year. With their recent success they are launching a news website on the 6th February 2012. Lucy Laville, an academic at Leeds Metropolitan said “All the signs are good for the media industry but it’ll be harder work for less money. But our students are getting 97% employability following this summer’s graduation.” At a time of economic crisis when most industries are struggling to keep afloat, the recent 2011 CIPR statement
OCEANA FACES BLEAK FUTURE Rebecca Brown
Leisure and tourism LEEDS nightlife has taken a hit as super club Oceana faces closure. Luminar Entertainment, owner of Oceana and 75 other clubs throughout the UK has finally gone into administration as it was unable to meet the obligations of banks Lloyds, Barclays and Royal Bank of Scotland.
With losses of £198 million and sales dropping by 19% to £137 million, Luminar were thrown a lifeline earlier this year to temporarily extend the £85 million debt facility but failed to turn its businesses around. Oceana is currently the biggest club in Leeds and a main attraction for visitors to the cities clubbing scene. With the country’s recent financial situation and a rise in both tuition fees and unemployment figures for its core market of 18 - 24 year olds, Luminar have been struggling to stay afloat for a while. The smoking ban and recent change to licensing laws, forcing bars to close by
What does the future hold for Kirkgate Market? Page 18
11 o’clock hit the company that claim to be the UK’s largest nightclub owner, hard. As a result of these hardships Luminar had come up with strategies to improve business, including the opening of comedy clubs and cocktail bars. Jongleurs comedy club and WooWoo in Leeds both recently opened as part of this strategy but failed to have the impact desired. Luminar provides 3000 jobs in England, 90 of which are in Leeds and now have an uncertain future. The decision lies with administrators as to which of Luminar’s 76 UK clubs and bars are to be kept and whether there is a future for Oceana Leeds at all.
January 2012 Leeds Metropolitan Business Review Page 15
Feature
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OCCUPY MOVEMENT The people’s protest that has travelled the globe pitches its tent in Leeds City Centre Picture caption goes here and here and here and here and here and here and here
Daniel Rosney Kathryn Shaw Recruitment Finance correspondent
In 95 cities across 82 countries and in more than 600 communities across the United States of America - the Occupy movement went global following the first largely publicised protest at Zucotti Park in New York City on September 17, 2011. It has since dominated the news agenda and water cooler talk across the world. Inspired by the Arab Spring, a revolutionary wave of demonstrations that began last December in Algeria, a protest movement arose in Spain. The Spanish Indignants movement was a huge catalyst in the events to come, for the most part down to a leader in the movement who began the calls for a worldwide protest to be held on October 15, 2011. AttributionNoncommercialNo Derivative Works Some rights reserved byDaniel Rosney
Occupy Leeds protesters Protestors show their support through music Page 16 January 2012 Leeds Metropolitan Business Review
By this time demonstrations were being held across Europe, as well as the protests that were already spreading across the Arab world. Libya’s leadership was falling under the might of rebels and the revolution in Syria was getting more intense, with the formation of the Free Syrian Army. The protests spread in earnest across the globe; Spain, Italy, Greece, Egypt, Yemen and Bahrain had taken up the banners and that was just the start. Soon enough a Canadian activist group, Adbusters, took up the call from Madrid and began publicising the worldwide protest. Here the idea for the Occupy movement really took flight. New York City became the hub of Occupy Wall St. and this was the beginning of large media attention to the movement and the viral spread of the ‘We are the
T ARRIVES IN LEEDS 99%’ slogan. New York was closely followed by Occupy London, for which the London Stock Exchange was the target.
here at Occupy Leeds. Topics raised ranged from the NHS to banking, general finance to illegal wars.
With the beginning of the Occupy movements came a wake-up call that would redefine the way we viewed global politics, money and the ever-growing gap between rich and poor.
But the overarching agenda appears to be the same. The world system is not working, there’s trillions of pounds worth of debt crippling various nations and greed is ever present throughout. As you read this the European economy is on the verge of collapse.
Here in Leeds, the urge to fight the power had caught hold and an Occupy Leeds group moved into City Square on 11th November 2011. A handful of tents and about 15 people were all that had gathered that first day, but hope for change was palpable in the air and the sound of an acoustic guitar floated through the biting November cold. Amongst the first 15 protesters was support worker Barry Blatt, 44. Mr Blatt was keen to discuss his personal reasons for joining the Occupy movement, which are inspired by his job. He believes that huge cuts to social services are unnecessary and are going to cause suffering to the people he cares for. He told us:
“Somehow the
guys in the city of London have thrown their money away and asked us to bail them out. The gap between rich and poor is ridiculous and we’ve had enough”
There is debate amongst the movement as to whether it is anti-capitalist or not, but something that can be agreed on is that there needs to be a greater deal of transparency and a greater deal of accountability for dishonest businesses and an elite of society who hold all the power. ‘Cosmic’ Claire, a founding member of Occupy Leeds, said this of the protest: “We are having a lawful assembly to discuss these things and draw popular attention to these facts. “A lot of people think ‘well what can I do about it?’ Well now the spark has been lit, it was lit in Algeria, then it spread across the Arab spring, we had the demonstrations in Spain in the summer, then it got to Wall Street and now that’s spread across the world.
“I’m here to represent those who the cuts affect, but can’t make a statement themselves. We’ve been done. We’ve been shafted. “Somehow the guys in the city of London have thrown their money away and asked us to bail them out. The gap between rich and poor is ridiculous and we’ve had enough.”
“That’s what the Occupy movement is about for me, it’s about getting a global discussion going so that people can raise their awareness of all this. The world needs so much change and it has to start with debate.”
Speaking to several other people at the camp site, the movement very clearly means something different to everyone
I guess we can consider the Occupy movement a democratic awakening.
LEEDS GROUP THANKS SOCIAL MEDIA “I spoke to people in the real world about it but nobody was doing anything about it, then someone set up an Occupy Leeds group on Facebook, then somebody else set up an event and the whole thing started to roll. It was new to me. I’ve never occupied before.”
Daniel Rosney
Recruitment
Spokesperson, Sheryl Odlum, thinks that the movement is successful thanks to social media:
Social Media is helping the movement to gather members and report progress within the city. On Twitter, by searching #OccupyLeeds you will see a constantly updated feed, and on Facebook the community group gives a more in depth blog about what’s happening on site and off site.
a free gig on site and he claimed “The whole idea of social media is getting young people involved in this. It’s very exciting that they’re interested as they’re the ones that are going to be in the shark end when it’s all over”. Member David Hartley adds: “Follow us on Twitter, read our updates on Facebook and go on the Occupy Forum. “There are plenty of ways you can muck in. It’s time for normal people to stand up and refuse to put all the money in the hands of a corrupt and self serving top 1 per cent”.
Musician and strong supporter of the movement, Billy Bragg, recently gave
January 2012 Leeds Metropolitan Business Review Page 17
Slug
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KIRKGATE MARKET Market trader’s future in doubt with Kirkgate market rejuvenation plan could undertake these changes without private sector support. With this in mind it has been recommended that the markets become a Limited Liability Partnership. This effectively makes Leeds Markets a jointly owned company between Leeds City Council and either a sole or a number of private sector investors.
Ryan McMurty Retail correspondent As plans are made to rejuvenate Leeds City Market, Europe’s largest indoor market with over 600 stalls, five traders fear they may be not be getting a fair deal with the plans proposed by Leeds City Council.
This has been the main cause of concern for market traders, who are worried about their futures under private ownership. With the cost of the scheme being estimated at £30million, the council said they will put £10million with the remaining £20million coming from investors, who would enjoy a 99+ year lease.
The Council will have no control of how the market is run. In terms of the renoThe costs of implementing these changes vation, it is likely that the buildings built are significant and in the consultants view in 1976 and 1981 would be demolished, it is also unlikely that Leeds City Council with other stalls being rearranged to cut the space by 25%.
Sue Burgess, Leeds Markets Manager from Leeds City Council, said this week: “It is important to us that we’re honest with you. No decisions have been made at this stage, but in order to survive and flourish Leeds Markets does need to change and the current financial strains experienced by public sectors across the country offer limited opportunities for this.” With Eastgate Quarters arriving in the next couple of years, situated right beside Kirkgate, Leeds officials have decided action is needed to avoid the market going out of existence altogether. Profit has been steadily dropping from around £3.5 million in 2006 to just over £3 million in 2001. It has been predicted that will fall to £1.5million. This has coincided with a drop in footfall from 317,000 in December 2006 to 214,000 in December 2009. A consistent drop of
Kirkgate, Leeds City Market
Page 18 January 2012 Leeds Metropolitan Business Review
TO BE PRIVATISED 11% per annum. At a Council meeting on 17th January, traders posed the question of a possible Arms Length Management Organisation (ALMO) being set up to oversee the market. However, this seems to have been ignored advice by legal firm Nabarro; who coincidently represent Hammerson. Hammerson are in the company in charge of the Eastgate Quarters development.
Tanya Harris gets traders views on the future change Ricky also recognised this as a concern saying “We’re not getting much of the younger generation coming in. We used to see them shopping here with their Mums when they were little then they’d come back to do their shopping when they grew up. I don’t know if they don’t want to be seen in here or what.”
The consultants report for the modernisation strategy explains that concessions have been granted to attract traders to secondary pitches, with rents in the indoor markets ranging between £25 to £52 per square foot per annum. It has been put forward that these concessions should be removed after modernisation, as all stalls will enjoy 100% prime locations. This means a rise in rents for many current traders along with a proposed rise in service charges for traders on George Street. They will have to also be offered new contracts and re-selected. Only the private company would have a say in when traders can be evicted, which could be at any time. The council
“The report shows no understanding of what a market is. Its sole interest is in raising the maximum return for the partners.”
Tanya Harris Business correspondent The report was drawn up by Quaterbridge Project Management Ltd. and recommends that the council sign over the market to a Limited Liability Company for a 99+ year lease. It also states plans to reduce the amount of stalls trading there by 25%. In July last year on BBC Radio Leeds Councillor Gerry Harper said: “Personally I think it’s too big. If it was up to me I’d make it slightly smaller. I think overall it would make it more effective if we knocked down the bottom then we build a car park next door to it.”
The Friends of Leeds Market meet regularly to discuss the issues that the market faces and aim to keep rent prices fair and the centre flourishing. The owner of the Dazzle Jewellery store says “anyone who is willing to help us is a good thing.”
“It is important to us that we’re honest with you. No decisions have been made at this stage”
However, the report has already received a number of criticisms from councillors and workers alike.
Many of the current traders see parking as The Scrutiny Board were told by market a major issue affecting their businesses. trader Liz Laughton that “the report shows no understanding of what a Ricky Brown runs the Tony Banks fruit market is. Its sole interest is in raising and veg stall. He says: “At the moment the maximum return for the partners.” we’re struggling like all businesses. Everybody’s struggling and if anyone tells Head of the Scrutiny Board, Councillor you any different they’ll be lying to you. John Procter Wetherby voiced a similar One of the main issues is parking. It’s opinion, saying that the Executive board would also have to oblige, as they would ok if you’re an OAP and have a bus pass could not discuss the report properly have no say. but if you drive here you have to pay £10 without before understanding whether for parking, if you go to a supermarket or not the private company set up to run Chair of the Scrutiny Board, Councillor to do your shopping you can park free.” John Procter Wetherby argued that the Mohammad Arshad, a cloth retailer went the market would be expecting to make a profit from the traders’ rent. Executive Board could not possibly even further by saying: “Parking literally discuss this report without killed the market”. The Executive Board are set to discuss understanding if the private company Quaterbridge’s report next month. set up to run the Market would expect to Interest groups such as Friends of Leeds take the profit from the traders’ rents. Kirkgate Market are working hard to keep the market prosperous. In a recent meet- Ricky Brown, like many other current At the moment the Market makes a profit ing a main topic of discussion was how to traders is very aware that their businesses rely on the actions of the that is reinvested across Leeds benefiting publicise the centre to younger shoppers all residents. There is a worry that inves- and students in the area. The possibilities council. However he remains optimistic saying that “there’ll always be a future tors would pocket these profits and that of a leaflet campaign were discussed and public services would suffer. many of the members seemed eager to be but we need help.” involved.
January 2012 Leeds Metropolitan Business Review Page 19
Profile
LeedsMetropolitanBusinessReview
ERASING TV BOUNDARIES
Some of the young people who contribute to the production of Erase TV
An innovative media project which gives youths a chance When asked what differentiates Future Arts from other social enterprises Mr. Barker continued: “Social enterprises by their very nature are not-for-profit; the profit that is made is recycled into society. What makes Future Arts different are the projects that we run, which are always fun and engaging as well as the links and support that we give Having received Aryelle Hendricks- government funding “So far this programme those attending Thomas Future Youth. We previously, recent cuts has been successful Social enterprise are different behave forced the organi- in that it has reached sation to rely on other over 300 young people, cause not only do giving them a taster of we put the money resources in order the world of television back into the to fund their highly community, we recognised and inspir- production” run and nurture ing work. Multi-media the projects that programs and creative SOCIAL enterprise Future Arts continue our profits provide.” workshops allow staff and volunteers to to provide free music and media experimentor and guide their students with the ence and workshops free for 16-25 year Volunteers and mentors are head-hunted means to succeed. Focussing largely on olds. The Leeds based organisation has and welcomed all year round to take their television sector as they have found been running since 2008 and has grown this to be something students excel most sessions. For this organization this is iminto a recognised provider of talent and portant as it helps them achieve their set staff to leading media companies in Leeds in. goals. and the UK. Mr. Barker recalls: “So far this programme Chief executive and founder Paula Temple has been successful in that it has reached “Volunteers are appreciated members of our team, making a valued contribution to over 300 young people, giving them a came from a media background with the work that we do. We have a range of fifteen years’ experience working in radio taster of the world of television producvolunteers working in different areas of tion. The project has gained a name for and Djing. With their online TV chanthe organisation, whom we nurture and itself and it has been recognised by ITV nel, ERASE TV, Future Arts have proved give the chance to get lots of different Yorkshire who has indeed supported this that they can find hidden talents in Leeds. experience. Our volunteers get to work project.” They provide unique opportunities, on real campaigns working with our improving skills and employability for its There have been numerous success stories creative members getting a real taster in students. to come from the program with students the industry. We also have a number of industry professionals who volunteer their being offered work placements at ITV Organizer,Tony Barker explains own time to our Future Youth projects, Yorkshire; and some are starting to forge a “Those that benefit most we believe are career, getting notability from the likes of mentoring our young people and providthose involved in our Future Routes and ing them with a positive influence in their Future Youth initiatives. Our Future Youth The Princes Trust. lives.” program provides young people aged 13Despite being a not-for-profit business, 25 with a chance to learn new skills, and Future Arts have developed the idea of in- As Future Arts enters its fourth year, they work with seasoned professionals within volving ethical buying, meaning to avoid seem to be set to continue to bring the music industry in music production, something new to the creative industry. exploitation of their talents. video and dance workshops.” By taking on students who have failed to achieve the required qualifications that would enable them to continue into higher education, regardless if they are suffering from mental problems or social dysfunctions, they have found talents that have excelled in the arts.
Page 20 January 2012 Leeds Metropolitan Business Review
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Science and I.T
The sky’s the limit: Leeds Astronomy society plans big changes thanks to a generous lottery grant
Michael Glavin Science correspondent
equipment gives us the opportunity to develop our skills in CCD imaging and photometry. This is a new area for WYAS and we aim in the future to develop the skills of our members so that research quality photometric results can be forwarded to archive facilities for use by professional astronomers. .”
THE WEST YORKSHIRE Astronomical Society has received a grant from the National Lottery to develop its research equipment.
Engineers at WYAS are working on the automation of the dome to match the rotation of the 14-inch telescope, effectively making it robotic.
Tony Doubtfire, representative for the Society, stated “The purchase of research grade
Once completed it will aid people with disabilities to control the main telescope
“As well as developing equipment, the society intends to use the lottery grant to build better facilities at the centre”
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WYAS SEEING STARS AFTER LOTTO GRANT
whilst carrying out their own projects. The introduction in July 2010 of high speed broadband has made connections to southern hemisphere and other worldwide robotic telescopes a real possibility. As well as developing equipment, the Society intends to use the Lottery grant to build better facilities at the center. “We are currently planning to build a larger meeting room, ancillary rooms and a ground floor observing platform. We believe this will accommodate our needs for the future and may also permit us to build a radio telescope. “
BLUE LOGIC PLAN TO EXPAND
The Leeds based IT company, Blue Logic who specialize in network support and business IT services, after a successful year, have made ambitious plans to expand.
The Yorkshire IT firm was established in 2007 by Dave Helm, who was later joined by Director Chris Ambler. The company has now grown in to a staff base including sales staff, network support, technical engineers, online and web development staff. Blue Logic has seen an increase in turnover to £2.7m resulting in a 25% increase this year. The IT firm have expanded their
Emily Levy
IT correspondent
team and taken on nine new staff members and have relocated to larger offices at Bramley Grange in Thorner. The company is predicting further growth for 2012, David Helm said; “We’ve had a
Turn to page 22 for transport news
fantastic year and we’re all very proud to be continuing to grow when the economic climate is so unstable. We’re not taking anything for granted, but we’re confident 2012 will see a further increase in turnover by potentially as much as 30%.” Helm has a lot of confidence for the new year, “We’re looking into new ventures and divisions through acquisitions in 2012 which will aim to offer complimentary products and services for our existing and new clients, ensuring Blue Logic will continue to grow and have many more successful years ahead.”
January 2012 Leeds Metropolitan Business Review Page 21
Transport
LeedsMetropolitanBusinessReview
LMBR takes a close look at the controversial issue of public transport in Leeds
CITY’S PUBLIC TRANSPORT GOES NOWHERE FAST
Urban Development and Environmental Management or CUDEM.
a development problem Lindsay told me that Headingley was not a balanced and sustainable community, and after learning that 62% of the population in Headingley were students I realised I was being a little naive.
After having many conversations with interesting people about various developments and skyscrapers in Leeds I was looking forward to hearing someone else’s So after learning a bit more about CUopinion about our city. DEM we began to talk about what he Recruitment thought about Leeds. I met with Lindsay Smales, who has worked at CUDEM for 25 years and also Development teaches design and town planning at Leeds One thing that I hadn’t considered writing about when I was given the development Metropolitan University. sector was the concept of development on He told me that CUDEM is a research ince the start of our university project a grander, more long centre that looks into I have been learning all about the determ scale, rather than planning, housing “Something like 70% velopment industry in Leeds. As my other and human geograwhat was the latest new of the people colleagues are covering retail and tourism phy issues. building in Leeds. Geworking in Leeds I was focusing towards the world of office ography and transport city centre drive into developments. When speaking to the city to work and in Leeds seem to fall far short of what you would Lindsay I asked him For a good part of my first semester I met what projects he had two or three times of expect from such a fastthe year you get grid developers, commercial estate agents, city been involved in and moving city. Lindsay lock” council members, business journalists and he told me about a confirmed these doubts. refurbishment consultants. project he worked on that dealt with a problem in Heading- “Whichever way you want to access the The last thing on my to-do-list was to city centre, it’s not working and it’s not ley which people called ‘studentization’. speak to someone from the Centre of good enough. Walking into the city centre Although I didn’t think this seemed like
Daniel Rosney Francesca Done
S
Page 22 January 2012 Leeds Metropolitan Business Review
Transport
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Whichever way you want to access the city centre, it’s not working and it’s not good enough
He continued, “It’s not so bad if you live in Hyde Park and you want to walk to the city centre that way, but the environment and the road network and the quality of the built environment makes you not want to walk. If you cycle into Leeds you have to be very brave because it’s a very, very dangerous thing to do. We’re pretty well served from the bus network point of view but they do have bus congestion.” Lindsay went on to say, “The trains are the most overcrowded trains outside of London. Something like 70% of the people working in Leeds city centre drive into the city to work and two or three times of the year you get grid lock.”
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is not particularly pleasant and an attractive experience.”
France’s renowned transport systems are the product of major government investment Leeds back hugely. Manchester in comparison has the tram which transformed the city”. Other cities that already have tramway systems or light rail systems include Birmingham, Sheffield, Newcastle, Nottingham and Blackpool.
sterdam would be successful solution. Leeds city council are planning to open a £17million pound new southern entrance to Leeds railway station and there have been discussions of using oyster cards on the trains and buses in Leeds which would make public transport more user-friendly. But looking at the bigger picture this doesn’t seem like it will do the job. In theory it is easy to plan buildings without having to worry about traffic, but if this problem gets worse there is little doubt that people will be put off visiting Leeds.
So how important are new office developments or new shop“If you look at ping centres or new arenas if people can’t Manchester, things like infrastructure hold readily access these Leeds back hugely. things that make Manchester in Leeds great?
I can understand how investors wouldn’t see the financial benefits for them to get involved with a comparison has the I got thinking back to somethingAlex project like a tram tram, which has So is there a soluDuckett had told me. He works for comsystem but in the transformed the city” mercial property Knight Frank and he said tion? As Leeds has an long run it could overwhelmingly large that; “The accessibility to Leeds is poor transform Leeds student population you would think that and the city council on the whole aren’t into something much more sophisticated, something like the bike rental schemes pro active enough. If you look at Manlike our European counterparts over the that you see in London, Paris and Amchester, things like infrastructure hold pond.
January 2012 Leeds Metropolitan Business Review Page 23
Profile
LeedsMetropolitanBusinessReview
Business links Daniel Rosney LAST summer I decided that I’d had enough. The rail network no longer did it for me, endlessly waiting on a busy, smelly, cold platform for a train that has been held up by leaves on the track. And so I spent my last penny on a Citroen Saxo. Jeremy Clarkson may not describe it as the most dependable car but it gets me to and from Manchester more efficiently than the Transpennine Express ever did. Apparently this is all going to change; the government have announced plans for a high speed rail network, dubbed the HS2, to be introduced linking the four major cities of London, Birmingham, Manchester and Leeds. The £32 billion scheme will apparently “bring Britain into the 21st Century” according to Chancellor George Osbourne. Twelve years into the 21st Century and we are finally catching up with the rest of the world but it won’t happen for a little while yet. Once again it seems Leeds has been left out of the loop as it were and Mr Government has thought “We’re going to have to include them aren’t we, I mean we are spending their money…”
mond Jubilee celebrations in the afternoon and enterprise”. That’s all well and good and be back up at home to watch Emin theory but as we all know sometimes merdale at 7pm. No, this “excellent new politicians break promises and so Shadow scheme” won’t be coming to Leeds until transport secretary, Labour MP Maria 2032, two whole decades of waiting. Eagle wants a “binding legal commitment” But what does all this mean for Leeds and to ensure that the Chancellor sticks to his our area now? It’s going to create jobs, word and the area will benefit not only in and lots of them, well so Mr Osbourne transport terms but also helping unemsays: “We are investing in the local infra- ployment levels. structure for transport, a new Southern entrance for the staMs Eagle beTwelve years into the lieves that the tion and electrifying the line, as well other 21st Century and we development of are finally catching things like apprenthe 250mph HS2 up with the rest of the ticeships world, but it won’t should begin not happen for little while only in the South yet but also in the North and meet in the middle, similar to how HS1 (the channel tunnel link) was developed. It’d be a much fairer way to share out the 40,000 jobs that the government think the development will create. We’ve been promised jobs before and with recent figures claiming that there are now four people to every job in Leeds, it would be beneficial for something as small as 1% of the workload to come from the region.
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Whilst on a whistle stop tour of Leeds, Mr Osbourne has hoped “[his] presence here today is an assurance that we are absolutely committed to linking Leeds to the Midlands and the South”. The new link will be able to get us to the capital in less than 2 hours, it has been reported by some, but don’t get your hopes up that you’ll be able to bob down for the Dia-
Page 24 January 2012 Leeds Metropolitan Business Review
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Is this just another elaborate scam by the government for us to accept that they’re spending £32 billion on a network that won’t be any use to us for 20 years? There are two things that people like to hear when governments announce something new; a) it will benefit the general public; b) it will create jobs. We would like there to be a third option of ‘it will be free’ but that never happens and so when Mr Osbourne came to Leeds with his tail between his legs he had those two points ready to throw at anyone that challenged him over the cost. For the time being we can do nothing but be patient and see if the man in London with his big map of the country and his big map of the rail network, plus his chart of unemployment figures manages to succeed. Anyone that’s around in 2032 please note that the initial cost of this was £32 billion and “lots of