Donald Trump's 25% car tariffs 'could destroy 25,000 UK jobs in car industry'
President Donald Trump's proposed 25 per cent tariffs on all car imports to the US could potentially lead to the loss of thousands of UK jobs, according to the Institute for Public Policy Research (IPPR). The think tank predicts that approximately 25,000 jobs could be at risk due to Trump's tariffs set to come into effect on Wednesday, as reported by City AM. Brands such as Jaguar Land Rover and Mini are among the most vulnerable, the IPPR stated, with their respective factories in Solihull and Oxford potentially facing closure. The IPPR's estimates are based on the assumption that car companies may relocate abroad to evade tariffs. UK vehicle exports to America, its largest trading partner, are valued at around £9bn. The think tank estimated a total workforce of 263,000 in transport manufacturing and noted a 24 per cent drop in non-electric car exports between 2018 and 2022. Pranesh Narayanan, a research fellow at IPPR, warned that the government's growth plans were "at jeopardy". He said: "Trump's tariffs have huge potential to completely destabilise the UK car manufacturing industry, affecting tens of thousands of jobs." The car manufacturing sector is already under significant pressure, with a reported 11.6 per cent decline in output in February, as per the Society of Motor Manufacturers and Traders (SMMT). The UK is bracing for further impact as Trump prepares to announce additional tariffs on Wednesday, a day he has termed 'Liberation Day.' Prime Minister Keir Starmer has aspirations to secure a trade agreement with the United States; however, there's no immediate sign that both nations will reach a deal any time soon. Admitting to Trump's probable plans, Downing Street indicated on Wednesday that the UK is expected to be caught up in the broad tariffs on goods announced by the president as "Liberation Day." The IPPR has taken a hopeful stance regarding Trump's proposed specific levies on car imports, as they encourage Chancellor Rachel Reeves to offer subsidies to industries involved in eco-friendly transport production and to work towards lowering trade hurdles with the European Union.
Betr Outsourcing saves 95 jobs in Sunderland after Energy Compare closure
Call centre firm Betr Outsourcing has intervened to save 95 jobs from a failed competitor on Wearside, with plans to create at least 60 additional roles this year. The company, which operates from Sunderland and Glasgow, has absorbed staff from Doxford Park's Energy Compare Limited. The latter went into administration after losing a significant contract, resulting in around 120 job losses. The contact centre had been serving clients So Energy and Love Holidays before its abrupt closure. Betr is headed by Richard Knox, one of the original founders of Energy Compare, who left the firm after it was sold to South Africa-based Ison Xperiences. Currently, Betr employs approximately 140 people near the Stadium of Light and has been paying former Energy Compare staff on a weekly basis to help them cope with the sudden loss of income, reports Chronicle Live. When Energy Compare's closure became imminent, customers reached out to Mr Knox and a team of directors based in Sunderland - Cally Heads, Chris McCoulough and James Palmer - urging them to quickly take on the contracts. Less than a week later, Betr had mobilised and got the remaining staff back on the phones. Mr Knox said: "The staff were over the moon because they walked into a job that they were ultimately doing, so there was none of that fear factor. Yes, they were joining a different company but the day-to-day job they knew inside out. They also knew a lot of familiar faces at our end." He added: "And to give them the financial stability of the weekly pay just helped them out. And actually the clients were great as well because we asked them if they could pay us quickly in order to support the agents and they agreed because they all wanted to and understood." Besides the contracts assumed from Energy Compare, Betr employs approximately 200 people managing a major contract for Scottish Power, with additional involvement in the sector through contracts with Rebel Energy, Tomato Energy, and SmartestEnergy. With the recruitment from Energy Compare, the company's workforce has reached around 400, aligning with its aspirations for further growth. Mr Knox added: "Our growth has been great, and it's also a great story from a North East and UK perspective. Because in the contact centre industry, the majority of jobs are being pushed offshore and we're really flying the flag."
LSL beats expectations as underlying operating profits leap 169%
Property services group LSL has seen a huge rise in profits following a shake-up of its business model and resurgent demand. The Newcastle-based group behind brands such as Reeds Rains and Your Move beat market expectations to post a 169% rise in group underlying operating profit to £27.7m for 2024. That came from a 20% rise in revenue to £173.2m. Recovery in demand for the group's mortgage and insurance and surveying and valuation services, as well as its franchised estate agency offer, helped drive the growth which follows LSL's major slimming down exercise started in 2023. The group shifted its network of more than 180 estate agent branches to become franchised - a move it says has helped it become leaner and achieve better margins. It reported a group underlying operating margin of 16% - the business' highest in 15 years. LSL's breakthrough results came despite continued challenges in the housing market, with bosses pointing to activity levels below long term averages. Further profit growth is now expected this year. David Stewart, group chief executive, said: "2024 was a year of positive progress, as we built successfully on the restructuring work completed in 2023. We were able to grow profits materially, and at a faster rate than we had anticipated at the start of the year. Trading in the early months of the new year is in line with expectations, indicating we will be able to improve performance again in 2025. "I believe the group is now well positioned to build on solid foundations and I am sure that under the leadership of Adam Castleton, who will take over as group CEO on May 1, the group will go from strength to strength." LSL said growth had come from all three of its divisions. Surveying and valuation benefited from contract extensions with improved terms, driving a 36% climb in revenue to £97.8m. Bosses noted that mortgage approvals were up 21% on 2023 levels. In the group's financial services business, which includes mortgage-led services, total revenue dropped 6% due to the disposal of businesses in 2023 and the acquisition of TenetLime in the same year. The division increased its number of advisers selling both mortgages and protection by 214 to 2,282. And across the franchised estate agency division, LSL said it had made the first loans to enable acquisitions of about 700 properties to franchisees' lettings books. With a 28% operating margin, the group said there was further cost efficiency opportunities across the division.
North Yorkshire attraction set at former POW Camp is put up for sale as owners retire
A North Yorkshire visitor attraction based at a former Prisoner of War camp is up for sale after the founding family announced plans to retire. Specialist leisure property adviser, Christie & Co, has been instructed to sell one of the UK’s most iconic, award-winning visitor attractions: Eden Camp Modern History Museum in North Yorkshire. Originally a prisoner of war camp, Eden Camp was built on the outskirts of Malton, North Yorkshire, in early 1942 to accommodate POWs, the majority of whom were not Nazis but ordinary men conscripted into the German forces. The site was bought 40 years ago by Stan Johnson, who invested £750,000 investment into a two-year project to turn it into Eden Camp Modern History Museum, opening it to the public in 1987. Today, the museum tells the story of The People’s War, the social history of life in Britain from 1939 to 1945, as well as its historic background as a POW camp. The museum tells its story through moving figures, authentic sounds and even smells to transport visitors back in time. Over the last few years the owners has invested over £1.25m in renovation and restoration works to the fabric of the buildings, while also adding a new 'Blitz Experience', a remodelled entrance, new exhibition spaces and the Heritage Exhibition Hall, which displays Eden Camp’s collection of unique and rare military vehicles and equipment. The business works closely with veterans groups and over the years its archive has become a resource of national historical and educational importance. The museum attracts around 125,000 visitors each year, and is popular with school groups, with around 25,000 children visiting in 2023. For many years the museum has also received both TripAdvisor’s Travellers’ Choice and Certificates of Excellence awards. After nearly 40 years in the same family ownership, Christie & Co is marketing the business for sale as its owners look to retire, and the property company is seeking “substantial” offers for the business to include the valuable freehold property. Howard Johnson, son of the late Stan Johnson, said: “Since our father passed away in 2015, my sister and I have continued as custodians of this incredible business. We have consistently invested in improving the facilities and customer experience and have a fantastic team we work with here, but we too are at that time in our lives where it makes sense to pass the reins to new owners. I’ve been contacted a number of times over the years asking if we would sell and so this tremendous opportunity now becomes a reality.” Jon Patrick, head of leisure and development at Christie & Co who is overseeing the sale process, said: “There are many people, particularly those from Yorkshire, who will have visited Eden Camp as a child and returned with their own children, parents and even grand-parents as there is something here for everyone. With over 105,000 items of memorabilia we can see Eden Camp appealing to a national and even international buyer audience, such is the interest in the subject matter.
Public consultation on Tata plans for £1.25bn electric arc furnace at Port Talbot
A public consultation exercise ahead of a planning application for Tata Steel’s £1.25bn electric arc furnace investment at Port Talbot has begun. The 3.2 million tonne capacity arc furnace, which will make steel from scrap, is being backed with £500m in funding from the UK Government. The rest is being financed by Tata itself. The Indian-owned steelmaker, in a move resulting in around 2,800 job losses across its UK operations, will this month end heavy steelmaking at Port Talbot when it switches off its remaining No 4 blast furnace. It follows the closure of blast furnace No 5 over the summer. Read More : The ending of heavy steel making at Port Talbot Read More:Cardiff Parkway could have a £5bn economic impact over the long-term Electric arc furnace use an electric current to melt scrap steel or iron and produce steel, whereas blast furnaces use coke, a carbon-intensive fuel made from coal. The public consultation exercise will run until October 15th. A planning application is then expected to be submitted by Tata to Neath Port Talbot Council in November, which, if approved, should see spades in the ground next summer. The arc furnace is scheduled to become operational in 2027 when a new electricity connection goes live. While the arc furnace is built the plant’s hot strip mill will continue making coil steel for its downstream businesses from two million tonnes of imported substrate. Tata is also investing in upgrading the steel mills and continuous casters in a three year project. It will look to sell off some of its land around the decommissioned blast furnaces to the harbour area. However, at this stage, it has not been determined what the cost of land remediation would be -and whether Tata would get any government support -to make it fit for other uses. While subject to market interest, it could potentially form part of the new freeport covering the ports of Port Talbot and Milford Haven under the Celtic Freeport banner. It is hoped that the freeport will create significant jobs and investment in new supply chains needed for new offshore floating windfarms in the Celtic Sea, for which bidders are now being sought under a new licensing round from the Crown Estate. Tata will maintain around 80% of its existing site. Rajesh Nair, chief executive of Tata Steel UK, said: “We’re grateful to everyone who has taken the opportunity through our engagement so far to provide feedback. It was useful to speak to local residents at our community events about their views of the proposed scheme and the benefits it would deliver. “I encourage anyone with questions or comments to get in touch so they can be considered by the project team.” The ending of primary steelmaking will see around 1,900 job losses at Port Talbot, making up the lion’s share of the initial 2,500 jobs going across all of Tata’s UK operations, which includes its downstream operations in Wales at Trostre, Shotton, Llanwern, and Caerphilly. Many staff have already left on voluntarily. Tata said around 300 staff will be needed for decommissioning work, while the construction of the arc furnace will create other jobs. Once the arc furnace is operational the direct workforce at Port Talbot is expected to be around 1,500.
Defence vehicle manufacturer to open new base
A specialist defence manufacturing firm has chosen the West Midlands as the home of its new production facility with plans to create up to 150 skilled jobs over the next three years. NMS UK will be based on Tachbrook Park in Leamington Spa. At its new 7.9-acre site, the manufacturer will focus on the production of protected patrol vehicles, in line with UK government requirements and for export to international markets. To support this strategy, the business is set to create up to 150 skilled roles at the site across a range of areas, including engineering, factory management, training, simulation and aftersales. The facility is expected to be fully operational by the end of this year. NMS UK's new manufacturing hub will help to support the UK defence industry's supply chain for protected patrol vehicles, ensuring that valuable intellectual property is retained in this country. 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. NMS UK is headquartered in Birmingham city centre and is a subsidiary of Turkish armoured vehicle manufacturer Nurol Makina. UK director David Zevulun said: "Offering businesses world-class R&D assets, a diverse supply chain and access to funding on their doorstep, we didn't have to think twice about choosing the West Midlands for our new manufacturing facility. "Our new home in Leamington Spa is key to our ambition to become an integral part of the British defence industry ecosystem, supporting a robust pipeline of UK-made armoured vehicles. "We look forward to this exciting new chapter in NMS UK's growth story." The West Midlands Growth Company, along with the Department for Business and Trade, supported NMS UK's investment by facilitating introductions to relevant stakeholders, including suppliers and universities. The growth company also provided the business with communications consultancy and invitations to relevant events. West Midlands Mayor Richard Parker added: "I want to make the West Midlands the best place in the UK to do business and this investment by NMS shows why our region continues to be the beating heart of UK advanced manufacturing and exporting. "It will also mean 150 highly skilled jobs for local people."