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High-tech zone for testing future air travel to be created in Somerset and Devon

2025-04-17 07:51:51 By

A special aviation zone for testing out future aerospace technologies is set to be created in Somerset and Devon, it has been announced.

The Future Flight Innovation Zone (FFIZ) is being funded by £236,000 from the government and was secured by the now-axed Heart of the South West Local Enterprise partnership (HotSW) through Local Growth Funding.

According to Somerset Council, the FFIZ will form part of a 'Future Aviation Test and Innovation Zone' that is focused around two key sites - iAero in Yeovil and Exeter Airport.

The zone will be used to test and commercialise aerospace tech, such as drones and unmanned aerial vehicles, under real-world conditions. It will also be a testbed for hybrid, electric and hydrogen-powered future flight technologies.

The funding that has been secured will be used for:

Councillor Ros Wyke, lead member for economic development planning and assets at Somerset Council, said: “This critical piece of work will not only help to decarbonise aerospace but has the potential to bring a much wider financial benefit to the region."

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Councillor Rufus Gilbert, Devon County Council cabinet member for economic recovery and skills, said creating a flight zone in the region would put Devon and Somerset at the "forefront" of decarbonising aviation - and would help the UK reach its net zero targets.

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Finance

Bank of England expected to hold interest rates at 5%

2025-04-17 07:51:51

The Bank of England is poised to keep interest rates at 5% after sending a “clear message” that it would not move too quickly to cut borrowing costs. Most economists think that rate-setters on the Monetary Policy Committee (MPC) will keep the UK interest rate on hold on Thursday. This would keep the Bank’s base rate – which affects interest rates on borrowing and saving – at the highest level since 2008, during the global financial crisis. The central bank cut rates from 5.25% in August, implementing the first reduction since 2020 and delivering good news to squeezed borrowers across the country. Governor Andrew Bailey said it was able to do so because inflationary pressures had “eased enough”. However, he stressed that policymakers “need to be careful not to cut interest rates too quickly or by too much”. Matt Swannell, chief economic adviser at the EY Item Club, said the MPC “sent a clear message that back-to-back rate cuts were unlikely” unless subsequent economic data was weaker than expected. He said the latest official data, which showed Consumer Prices Index (CPI) inflation remained at 2.2% in August, would not be enough to prompt the Bank to start cutting rates more quickly. Sanjay Raja, chief UK economist for Deutsche Bank, agreed that the inflation figures “won’t be enough to trigger a surprise rate cut” on Thursday. “Instead, the MPC will likely take this as a positive sign that underlying price pressures are easing, and could warrant a further dial down of restrictive policy in November, when it conducts its next forecast update,” he said. “The MPC will also have more information on the fiscal outlook, with the autumn Budget slated for October 30.” Rob Wood, chief UK economist for Pantheon Macroeconomics, agreed that August’s inflation reading “gives the MPC little reason to rush to cut interest rates again”, with the data staying close to its expectations. He said another month of slowing prices in the services sector, which is watched closely by the Bank, would give rate-setters more “comfort”. Meanwhile, the Bank of England could take note of the European Central Bank (ECB) decision to cut interest rates in the Eurozone last week, the second reduction in a row. The ECB’s rate-setting council lowered the main deposit rate from 3.75% to 3.5% at the meeting.

Finance

Low Carbon Materials lands £3m investment from venture capitalists

2025-04-17 07:51:51

Construction decarbonisation innovator Low Carbon Materials (LCM) has secured a £3m investment it says will fuel rapid expansion. The Seaham-based creator of carbon negative aggregates used in building has closed its latest funding round led by Ada Ventures, and featuring Green Angel Ventures, Northstar Ventures, an Innovate UK grant and sponsorship and skills support from Deloitte. The former Earthshot Prize finalist, which employs about 18 people, said the funding was a crucial step for its growth. LCM's flagship OSTO product is a lightweight aggregate - the essential crushed stone, sand, and gravel components that give concrete and asphalt their strength and stability. It replaces traditional materials and reduces the carbon footprint of construction. Read more: Newcastle tech firm Opencast sees revenues close in on £50m mark Go here for more climate agenda news The firm was created by a team of three scientists behind – Dr Natasha Boulding, Dr Phil Buckley and Scott Bush – who came together to form the company in 2019 after meeting at Durham University while studying for PhDs in material science. In 2022 LCM became a finalist for the prestigious Earthshot Prize, orchestrated by Prince William, in a move that underlined its work towards tackling climate change through lower carbon emissions. Ms Boulding, CEO of Low Carbon Materials, said: "As essential building blocks for our cities and transportation networks, concrete and asphalt require a greener approach to production to minimise their environmental impact. We're seeing tremendous interest and opportunity, both in the UK and abroad. This funding is a crucial step to support our rapid growth and in preparing us for future funding to enable us to meet the ever-growing global demand for our decarbonisation solutions. Our technologies offer a simple and scalable way to transform the concrete and asphalt industry, and we're excited to be backed by these incredible organisations." Matt Penneycard, co-founding partner at Ada Ventures, said: "At Ada, we invest in people and ideas that have the potential to change the world. LCM is on track to do exactly this. "Concrete in the built environment accounts for 8% of global carbon emissions and 25 million tons of asphalt are laid in the UK every year - there is a huge opportunity to develop and introduce greener alternatives to market, and yet it's a space few are innovating in. LCM offers large construction businesses a simple and scalable way to reduce their CO2 output, delivering these solutions in a scalable market-leading way. It's a privilege to partner with them as they continue their upward trajectory."

Finance

Nationwide takeover of Virgin Money to complete next week after judge approval

2025-04-17 07:51:51

Nationwide Building Society’s £2.9bn takeover of Virgin Money is expected to go through next week after the deal was approved by a judge. Lawyers for the lenders secured the sanctioning of the deal at a specialist companies court in London on Friday. It comes after the Swindon-headquartered building society agreed to the takeover of its London-listed rival in March. Nationwide struck the takeover deal with a 220p-a-share offer for Newcastle-based Virgin Money, including a 2p-per-share dividend payout. At the end of a short hearing, Judge Sir Anthony Mann said he was “satisfied” that legal requirements had been complied with. The court heard that 90% of shareholders who voted at a meeting in May had backed the scheme. “It’s obviously a sensible scheme with financial benefits,” Sir Anthony said, adding: “There is no apparent blot on this scheme.” He continued: “I can see no reason not to sanction the scheme and in my discretion I will do so.” Earlier this month, the lenders told the stock market that the Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority had both approved the takeover. The deal will bring together Britain’s fifth and sixth largest retail lenders, creating a combined group with around 24.5m customers, more than 25,000 staff and nearly 700 branches. But the move is set to ultimately spell the end of the Virgin Money brand, with Nationwide planning to rebrand the Virgin Money business as Nationwide within six years, although it will keep the two brands initially.

Finance

Finance lender Atelier launches new Birmingham base

2025-04-17 07:51:51

Specialist development finance lender Atelier has opened a new regional office in Birmingham's business district. Following the deployment of £150 million capital to the region, Atelier has launched the new space in 102 Colmore Row which is led by lending director Rav Kudhail. The London-based company said the new base would enable it to expand its provision of custom finance products to developers across the West and East Midlands and further afield towards Leeds and Manchester. It has already worked on several projects in the region including providing finance for the conversion of a grade-II listed building in Birmingham's Jewellery Quarter to create 32 apartments and a 196-studio student development near University of Warwick. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Mr Kudhail said: "I've been based in Birmingham for the last three years and I am proud of the relationships we have built up with developers, intermediaries and professional partners. "The fact we've delivered £150 million of lending in the region so far is evidence of our commitment to being the lender of choice to finance a range of asset classes across central England and the North." Chief executive Chris Gardner added: "The opening of our Birmingham office underscores our commitment to funding property development in the region.

Finance

Investor Maven signals confidence in North East deals market over coming years

2025-04-17 07:51:51

A prominent investor in the North East has talked of its confidence that the region will see a healthy flow of deals in the next two years. Maven Capital Partners, which manages a range of funds in the region including the equity component of the Northern Powerhouse Investment Fund II (NPIF II), has signalled its optimism thanks to its current pipeline of deals and the range of businesses that have approached it. Speaking to BusinessLive, Rebecca MacDermid, an investment manager in the firm’s Newcastle office, said Maven had detected that some of the headwinds preventing businesses from growing in the recent past - including inflationary pressures and interest rates - were starting to abate, and there was renewed appetite for growth capital. Read more: First 14 gaming startups chosen for Sunderland esports accelerator Read more: Hundreds of North East jobs saved as metalwork firm bought out of administration She said: “We have been in the region for quite a few years now, and we’re feeling very optimistic about what the next year/two years looks like. Not just because of NPIF II but because of the deal flow that we’ve got and the range of businesses that we’ve seen come to us for a chat.” Since the launch of the £660m NPIF II in March from the British Business Bank, Maven has fielded more than 150 applications from North East companies and entrepreneurs, across a wide breadth of type and stage of business. That indicator of interest is welcome given last year’s figures on equity funding in the North East from the British Business Bank, which showed the region was behind its peers in terms of volume and value of deals, accounting for just 2.7% of overall UK deal activity between 2021 and 2023 and the total value of investment declining 40% to £91m. The North East is disadvantaged in league tables by being a smaller region with lower business density, but Ms MacDermid also says there are fewer angel investors available to kick-start a firm’s investment journey before equity deals come into play. As well as Maven’s “back to basics” approach to educating entrepreneurs about equity funding and allaying fears that investors are out to snatch control of companies, other groups have sought to address the angels gap. Ms MacDermid said: “I work with some fantastic organisations such as Innovation SuperNetwork and Lifted Ventures, who really are trying to dig into how we can change this because we know it’s a problem, we know getting angel investment is really difficult but let’s stop talking about it and start thinking about how we can change this.” Creating more identifiable success stories is also a priority. Maven has invested in several non-North East businesses that have set up bases in the region, including ecommerce specialist Revlifter and fintech Pockit, which have offices in Newcastle, and innovative Cambridge chip manufacturer Pragmatic Semiconductor, which has established a multimillion-pound Durham factory.

Finance

Hargreaves Lansdown announces update on acquisition

2025-04-17 07:51:51

A group of lenders has agreed to provide a multicurrency revolving facility to the group planning to acquire Hargreaves Lansdown (HL). On Monday, Harp Bidco, a newly formed company, confirmed that Barclays, HSBC, Lloyds Bank Corporate Markets, Mizuho Bank and MUFG Bank had entered into a commitment letter to provide the finance facility. It will be available for drawing by the group after the acquisition is completed and will be used for general corporate and working capital purposes. Harp Bidco also confirmed the lenders had entered into a fee letter and a conditions precedent status letter. It comes a month after Bristol-based HL finally accepted a £5.4bn private equity takeover offer. The announcement in August followed months of negotiations between the investment platform and a consortium of private equity firms, including CVC Capital Partners. HL had previously rejected a number of lower bids. Harp Bidco said on Monday the acquisition would be implemented by means of a court-sanctioned scheme of arrangement. HL is a platform for private investors founded in Bristol by Peter Hargreaves and Stephen Lansdown in 1981. Today the company has 1.7 million clients on its books and employs more than 2,000 people in Bristol. In its last set of financial results, announced in August, HL's total revenue had increased by 4% to £764.9m, while underlying costs had risen by 8% to £338.5m. This resulted in an underlying pre-tax profit increase to £456m, while total assets under administration rose to £155.3bn.

Finance

Funding deal for automation robotic specialist

2025-04-17 07:51:51

An automation specialist which works with robotics has secured £350,000 in new funding. The debt funding will help Birmingham-based Mechatronic Production Systems meet growing demand from manufacturers seeking to automate their processes, enabling the business to expand the team at its plant in Kings Norton and create seven new jobs. Established 35 years ago to provide bespoke automation systems, Mechatronic was one of the first in the UK to introduce 'off-the-shelf' robotics with the launch of the Robopod in 2014. The system now accounts for almost half of its revenue. Robopod enables companies to automate repetitive processes such as assembly, ultrasonic welding, dispensing and laser marking and can be adapted and reconfigured for different tasks. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Mechatronic currently employs a team of 35 people, working with clients across industries such as aerospace, automotive, medical technology and plastics. The company is headed by managing director Tony Parker-Watkins who led a management buyout in 2022. He said: "Robots can now easily take on simple repetitive tasks within factories, improving efficiency and freeing up humans to focus on more skilled and productive work. "With labour shortages and growing awareness of the potential for automation, our solutions are attracting interest from companies throughout Europe. "We currently have a strong order book and record sales pipeline. The funding will enable us to expand our production capacity." The new debt came via the second round of the Midlands Engine Investment Fund (MEIF), which was launched in February, and was arranged by Birmingham-based fund manager Frontier Development Capital. Investment manager Marie Kelly added: "Mechatronic addresses a key challenge facing UK manufacturing - the need to improve productivity. "The company has a strong management team and is recognised as a leader in automation systems. With manufacturers now rushing to invest in automation, the funding will help it to meet the growing demand." Jody Tableporter, director at the British Business Bank which owns the MEIF, said: "The Midlands Engine Investment Fund II invests in innovative, solution driven businesses across the Midlands. "With a clear commitment to providing bespoke solutions for clients in various sectors, Mechatronic Production Systems will use the funding to meet growing demand and create local jobs - showcasing the fund's impact in the region."

Finance

Cornish accountancy firms snapped up in double deal

2025-04-17 07:51:51

A pair of Cornish accountancy practices have been acquired for an undisclosed sum by a West Midlands-based financial advisory firm. Walker Moyle, which has offices in Penzance, St Ives and Redruth, and Truro-based Pooleys, have become part of BK Plus. Walker Moyle is the oldest practice to join BK Plus, with roots dating back to 1925. The acquisitions bring BK Plus's office count to six in the South West. Paula Thomas, who has been with Walker Moyle since 1996, said: "We see joining BK Plus as the next step for the business. BK Plus share our client ethos and values, and this partnership allows us to offer wider services and expertise to our clients in Cornwall." David Pooley, principal at Pooleys, said: "Joining BK Plus brings immense opportunities for our firm and clients. We share a commitment to excellence and client-focused service, and this move allows us to enhance our offerings and support to businesses in Truro and beyond." BK Plus's South West hub, which includes the two new firms, is being led by Tom Tripp and Hannah Collison. Mr Tripp said: "The strengthening of our South West Hub is a significant milestone for BK Plus. By bringing together like-minded businesses, we can leverage our combined expertise to better serve our clients and support the growth of local businesses. We are committed to maintaining our high standards of service and fostering strong relationships within the community." Shaun Knight, chief executive of BK Plus, said the acquisitions reflected the firm's "ongoing commitment" to expanding its presence across the UK.

Finance

BNP Paribas secures deal for new Solihull HQ

2025-04-17 07:51:51

A finance firm is moving its West Midlands HQ to a new home. BNP Paribas Personal Finance UK has agreed a deal for a new office at the Air building, in Solihull town centre. The 25,000 sq ft offices will be home to 800 staff from January. The UK division of the French banking and finance group provides consumer finance products to business customers such as retail and motor finance and personal loans. It said the move to Homer Road had come after a considerable period of growth and provided the business with a modern platform to continue its development. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. It has been based in Solihull for more than 50 years and is currently in Chadwick House. Chief executive Stephen Hunt said: "Moving to a new headquarters marks another key milestone for our business and, having been part of the Solihull community for over 50 years, I am delighted to be continuing this connection to the area as well as the wider region. "Not only will this space help us to continue to contribute to the local economy, it will also ensure that BNP Paribas Personal Finance UK has a modern, flexible and efficient working environment that will support our colleagues, particularly as we adopt a more agile way of working." Deputy chief executive Ricardo Mantovani has been overseeing the move. He added: "Our new premises, located in the heart of Solihull, is the ideal location to start this new chapter - one that will take the business to the next level and enable us to operate in a manner that is efficient, innovative and collaborative." Solihull Council leader Cllr Ian Courts said: "Their decision to base their HQ in Solihull was also based on their desire to become an even more sustainable business and to reduce their company's carbon footprint which this new premises will help them to achieve.

Finance

Lush to end largest charitable giving scheme

2025-04-17 07:51:51

Cosmetics retailer Lush is planning to end its main charitable giving stream at the end of the month. The announcement comes four months after the Poole-headquartered retailer posted a pre-tax loss of nearly £30m, despite achieving a turnover of more than £700m. Lush launched Charity Pot in 2007 with a target of £1m for grassroots groups working in the areas of animal protection, human rights and the environment. Over the past 17 years, Lush has distributed 17,000 grants worth millions of pounds. Funding has gone to a range of organisations including groups defending the human rights of refugees and displaced people globally; the LGBTQI+ community counteracting prejudice; anti-fracking groups; and non-profits addressing racial discrimination. Lush said that campaigning and charity products would not be disappearing from its business. "Following Lush reaching the significant milestone of over £100 million in donations, the business feels that this is the right time to reflect on charitable giving as a whole and assess the funding needed to meet the current challenges the world faces at this critical time," the company said in a statement. Lush said its biannual prizes would continue and it would also continue to support good causes. It is planning to raise money through product sales instead. The retailer is currently selling 'watermelon slice' soap in shops and online, with 100% of the profits going to childhood mental health services in Palestine. The business is also planning to launch ‘keystone products’, inspired by species that act as ecosystem engineers, regenerating habitats for other species. "Each keystone product will raise money for a project in a priority landscape around the world", Lush added. Lush operates in 51 countries and has manufacturing sites in six, according to latest accounts on Companies House. It also has 857 permanent shops, the financial data states, down from 886. In January, Lush was victim to a ransomware attack that temporarily shut down some of its internal computer functions in the UK and Ireland. The company has since been working with external security specialists to investigate the incident.