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Chancellor unveils £500m support for businesses hit by Trump tariffs

Chancellor Rachel Reeves is being urged to change personal tax thresholds to help some of the poorest workers

Chancellor Rachel Reeves has unveiled a £500m strategy to aid smaller businesses impacted by US President Donald Trump's tariffs.

Administered by the British Business Bank, the Growth Guarantee Scheme will now offer increased lending capacity for companies requiring assistance with cash flow issues due to tariff alterations, as reported by City AM.

The scheme, which lends up to £2m per business group, has so far distributed £2.1bn across 13,447 firms, with 70% of each loan backed by a government guarantee.

Earlier this month, Trump introduced comprehensive tariffs affecting all nations, causing financial markets to spiral amid concerns of a significant deceleration in global economic growth.

Since the announcement, the FTSE 100 has plummeted by 7.5%, while the domestically-focused FTSE 250 has fallen by 5.8%.

Although the president has since imposed a 90-day hold on the most extreme tariffs, the UK is still subject to a 10% tariff on any goods exported to the US. Additionally, his hefty 145% tariffs on China could potentially impact British businesses exporting Chinese-manufactured products to the country.

In last year's Autumn Budget, Reeves committed over £1bn in funding for the British Business Bank to extend its programmes throughout the following year.

Other initiatives managed by the bank include additional support for smaller housebuilders, funding for start-up loans, and programmes aiding innovative, high-growth businesses such as those in the life sciences sector.

Reinald de Monchy, co-chief banking officer of the British Business Bank, commented: "The Growth Guarantee Scheme and its predecessors have proven themselves to be an important means of supporting smaller UK businesses over the last forty years."

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Economy

Rachel Reeves to hold crisis talks with top City bosses amid fallout from Trump's tariff onslaught

Chancellor Rachel Reeves is scheduled to meet with leading City executives today, in the wake of President Donald Trump's tariff onslaught. Top brass from Hargreaves Lansdown, Legal & General, Lloyds Banking Group and M&G are expected at the Chancellor's summit, Sky News reports, as reported by City AM. The discussions will focus on the Treasury's financial services growth and competitiveness strategy, insiders told Sky. The repercussions from US tariffs are also anticipated to be a major point on the agenda. A Treasury insider stated: "The Chancellor will use this meeting to show leadership, building on her statement to the House earlier today, and reiterating that the government will act decisively to take the right decisions in our national interest and protect working people." In his latest move in the global trade war, Trump imposed a 104 per cent tariff on China. Following her announcement to the House of Commons on Tuesday, Reeves said she would soon meet with US Treasury Secretary Scott Bessent as the government seeks to secure a trade deal. The UK is bracing for a ten per cent levy, which Trump declared as the baseline figure in his 'Liberation Day' speech. Reeves has also maintained that the government is striving to abolish the 25 per cent tariffs imposed on automotives. "We are discussing a range of different areas. But the focus is on reducing tariff and non-tariff barriers to trade, with a particular focus on those sectors that are subject to the higher tariffs." "Although the ten per cent tariffs are lower than many other countries around the world, and we welcome that, the additional tariffs on cars, on steel, and potentially on life sciences pose a real challenge to our country because those are some of our biggest export markets," Reeves communicated to the Commons. Banking executives such as Lloyds' Charlie Nunn, Legal & Generals' Antonio Simoes, and Hargreaves Lansdown's Dan Olley are set to participate in discussions today. Since January, the Chancellor has engaged in a series of meetings with leading figures in finance in an effort to stimulate growth across Britain.

Economy

North East Charity Awards launches for 2025 to celebrate best of voluntary sector

Awards that celebrate the best of the North East’s charity sector - plus the companies and individuals that do so much to support it - are returning to highlight the region’s best voluntary groups. The North East Charity Awards are returning for their 11th year with a total of 12 prizes to recognise charities, fundraisers and volunteers. The Charity Awards – which are organised by The Journal and our sister paper on Teesside, The Gazette – aim to shine a light on the region’s top charities and those that work in them, as well as individual fundraisers and businesses that support voluntary groups. The event will take place on September 11 at The Fed in Gateshead, with entries now open. Last year, Children’s Cancer North took the top prize of North East Charity of the Year with other winners including New Writing North, Emmaus North East and Newcastle Carers. The awards are being partnered by RBC Brewin Dolphin, who have been headline partners since the beginning of the awards, with Point North and the Community Foundation for Tyne and Wear Northumberland as associate partners. There will also be support from voluntary sector group VONNE, Banks Group, Muckle LLP, Karbon Homes, Millfield House Foundation, Sage, Eldon Square, Sir James Knott Trust, Motivation in Mainstream and JCE. . Jeffrey Ball, director of RBC Brewin Dolphin’s North East Charity Team and co-founder of the awards, said: “RBC Brewin Dolphin is proud to once again support these awards to celebrate the tremendous achievements of the charity sector and those that champion it throughout the North East of England. “Our role at RBC Brewin Dolphin is to help charities make their money work harder, generating a growing income in the short term while protecting against inflation in the long term. We are privileged to work with hundreds of charities across the North East and the UK, helping them make the right investment decisions today to support many more people in years to come. Journal editor Graeme Whitfield said: “The Charity Awards are always a special night and it’s always humbling to hear of the good work going on in our communities. I hope as many charities and their supporters as possible enter the awards so we can provide recognition for the people and organisations that do so much for this region.” To enter the awards, or to get more details, people can go to the website northeastcharityawards.co.uk. The categories are: Trustee Board of the Year Uniquely North East Award - sponsored by VONNE Outstanding Social Enterprise Award - sponsored by Sage Charity Champion of the Year - sponsored by Banks Group Corporate Charity Partnership Young Charity Champion of the Year Small Charity of the Year - sponsored by Karbon Homes Rising Star Award North East Charity of the Year sponsored by Muckle LLP Outstanding Contribution to Social Change - sponsored by Millfield House Foundation Charity Leader of the Year - sponsored by RBC Brewin Dolphin Special Recognition Award - sponsored by Point North and the Community Foundation for Tyne and Wear Northumberland.

Economy

Compulsory redundancies at Cardiff Metropolitan University

Cardiff Metropolitan University has confirmed it is making between 30 and 50 compulsory redundancies on top of recent job losses through voluntary severance. The university said that like other universities it is facing financial pressure and "difficult decisions" must be made. Cardiff Met posted a deficit of just over £3.m deficit in the year ending July 2024, its most recent financial report published at the start of this year shows. That report also cited a drop in numbers of international students, rising costs and static home fees - all pressures affecting other institutions. In a statement the university, which has campuses in Llandaff and Cyncoed, said: "Like so many universities across the UK, Cardiff Metropolitan University is experiencing financial challenges, with our current costs exceeding our income. We have already carried out a wide range of activity to support us in meeting this financial challenge, while remaining focused on delivering an excellent student experience and outcomes, and making a positive difference to all of the communities we serve. "To be well positioned for a successful and sustainable future, we, like all universities, need to make some difficult decisions. We have recently closed a final voluntary severance scheme, which, alongside a range of other measures aimed at reducing our pay and non-pay costs, has helped minimise the number of compulsory redundancies we need to make. "However, we must still make further reductions to our recurrent cost base and have this week started collective consultation with our recognised trades unions on restructuring proposals. This consultation will genuinely seek the unions' and our colleagues' collective feedback before any proposals are finalised. "We are encouraging staff to share their views and access the range of support we have made available during this unsettling and difficult time." Read the biggest stories in Wales first by signing up to our daily newsletter here. The university said it has tried to keep compulsory redundancies to a minimum. Staff had been "critical in supporting our financial recovery programme" and their actions had saved jobs but between 30 and 50 were still needed . "It has not been an easy journey, but their collective efforts in reducing non-pay costs and achieving a strong student recruitment round, plus our active management of staff vacancies and three voluntary severance schemes, have mitigated against the number of compulsory redundancies we need to make. This means that subject to the outcome of the consultation, and the remaining staff approved for voluntary severance signing their settlement agreements, we are expecting between 30 and 50 FTE (full-time equivalent) staff to need to leave the university through compulsory redundancy." Cardiff Met currently has 1,658 staff(1484 FTE) and around 11,300 students at its Cardiff campuses. Staff have been briefed on the cuts and the university has begun collective consultation with recognised trade unions.. The university said it can't share any more detail at this stage but confirmed it is not proposing to close any subject areas, and that staff from across both academic and professional services will be part of the collective consultation.

Economy

Plans for hydrogen firm Lhyfe's Wallsend factory move closer to fruition

Hydrogen fuel pioneer Lhyfe says it is very close to securing planning permissions to pave the way for a production plant on the banks of the Tyne. The French firm says it is only a matter of weeks for proposals for a 20MW green hydrogen facility, on the site of the former Neptune Bank Power Station in Wallsend, North Tyneside, to be decided. Plans for the scheme were submitted last year, along with an application for subsidy, with Lhyfe learning in recent days that the Wallsend project has been selected for the next stage of the Government’s Second Hydrogen Allocation Round (HAR2). "Having the scale of ambition set is a big vote of confidence for hydrogen in the UK, and what this Government wants to do in terms of decarbonisation and net zero," said Boris Davis, head of UK business development at Lhyfe. "We are trailblazers in France, in Germany and we did the world's first green hydrogen production on a commercial level - allowing green hydrogen to be accessed by multiple customers - and we did the world's first offshore hydrogen production. We've got development across most of northern and western European, and a lot of that is engaging with governments on helping them understand the role for hydrogen within their decarbonisation strategies." Having waited for the delayed HAR2 shortlist, Lhyfe will now go through a due diligence process with the Department of Net Zero and Energy Security before a final determination is made and then a negotiation over the strike price to determine the level of subsidy. Lhyfe came to the UK, and the North East, in the wake of the Boris Johnson Government's introduction of a hydrogen subsidy scheme. It says the Wallsend scheme is among its most advanced, with the company having identified nearby energy-intensive industrial customers who could make the switch to hydrogen. Mr Davis said: "The scale of the project is what we feel is right for the demand for hydrogen within the region. All of our offtake is within a pretty small radius of the site - we're not going to be taking hydrogen to Wales for example. It's going to be made on Tyneside and it'll stay on Tyneside. "The offtakers we have for both projects [including Lhyfe's Kent scheme] are either using it to swap out their natural gas; swap out their grey hydrogen - which is made from natural gas; or swap out their diesel. As we look to the future, hydrogen is a really important feedstock for future fuels such as sustainable aviation fuel and for things like methanol - and what we call e-methanol, which is made from renewable hydrogen and CO2 which can be used in things like shipping.

Economy

Jobs losses at the WRU as it publishes new strategy for the game

The Welsh Rugby Union has announced there are set to be job losses following the launch of the five-year 'One Wales' strategy it says will transform the game. The WRU hope the restructuring will save £5m per year and ensure its systems and structures support the new 'One Wales' strategy - which was initially promised last year - in a "manner befitting of a £100m-a-year business". Part of the transformation concerns better business - with the WRU set to discontinue part of the existing 'Hub Officer' programme - while they have also promised changes for the professional and grassroots game. The current 'hub officer' programme sees individuals who are part-funded by the WRU and educational establishments deliver rugby activities to young people across Wales. The current programme will be restructured to increase coverage, with current funding discontinued in key areas. It will be up to schools to decide how they reallocate the investment into rugby. The new Professional Rugby Agreement with the four pro teams has been agreed in principle but is yet to be ratified at board level. WRU chief executive Abi Tierney says she is confident it will be signed off soon despite this week's collapse of Cardiff Rugby that has seen the union step in to take control. In a statement, the WRU claim that the changes will put the governing body into a sustainable financial position - with £5m in annual savings and efficiencies said to have been identified. However, as part of the discontinuation of the programme, it does mean that a small number of roles, said to be fewer than 20, are at risk of redundancy. The WRU will enter a period of consultation with staff impacted. Hub Officers and schools were informed of these changes on Thursday morning, after months of uncertainty. The WRU's Hub Officer current three-year contracts were set to run out this summer and the WRU has confirmed that funding will now be withdrawn in key areas. There are around 90 officers - many of whom will be affected. It's understood that the hub officers were previously promised clarity on the end of their contracts by February. However, that never came - with many having actively looked for external roles away from the WRU amid the ongoing uncertainty. The WRU say that the majority of the saving will not come from reducing headcount, but by running the business more effectively and efficiently - "focusing on core activities that will place Welsh rugby on a long-term sustainable footing". They then plan to invest money into a restructured programme that can cover much more of the country. The plan is that the existing WRU staff will be reorganised and the number increased, with a much wider remit to ensure there is total coverage of all community clubs and educational establishments across Wales in terms of having named contact and consistent level of support. "Everything we are doing is to improve rugby in Wales for everyone," said WRU CEO Abi Tierney. "Last summer we confirmed our strategic trajectory, where we intend to be by 2029, and today we are giving further details of how we are going to get there. "The world game may have turned professional in 1995 but 2025 will be the moment we remember Welsh rugby completed this transformation, into a fully functional, fit-for-purpose, professional organisation. "Integral to our plans is a need to stop living beyond our means and ensuring we can invest in the key elements that contribute to a thriving rugby nation. This has led to the re-set at the WRU we are announcing today. There will also be investment in key areas, which will enable growth, as we complete our transformation programme. Regrettably there will also be a small number of job losses."We will make sure we look after those people affected by these changes and do everything possible to ensure their well-being and welfare during our consultation process." Sign up to Inside Welsh rugby on Substack to get exclusive news stories and insight from behind the scenes in Welsh rugby. The WRU have also proposed progressive changes to funding the community game, with a new revolutionary model set to be rolled out to better support the amateur game. Because of that, the WRU believe they are in a position to increase funding to community clubs over the next four years. As a result of the efficiencies identified, the WRU say they will also be in a position to increase funding in community clubs over the next four years. They have also announced a newly-structured performance department to ensure alignment between Wales' international teams, the professional clubs and the player pathways. The WRU once again reiterated that assuming control of Cardiff this week, after they were temporarily placed into administration on Wednesday, would not detail their plans to rebuild the professional game in Wales. As part of the announcement, the WRU said a new framework would "champion Wales' pathways for the Men's and Women's game creating new playing, opportunities, greater retention - through an enhanced offer in education - and talent tracking with a network of support across Wales and beyond". They have also promised the creation of an employee 'Centre of Excellence', which will be made up of representatives from across the performance department - meaning the four clubs will work together to identify and instil best practise on medical, SandC, nutrition, analysis and coaching matters.

Economy

First restaurants sign up for Birmingham food festival

A food festival taking place this summer has unveiled the first cohort of venues taking part. Birmingham Restaurant Festival will run for the whole of August and has secured the backing of 31 traders across the city. They include brands such as Orelle and Dishoom in the business district, Digbeth venue 670 Grams, Lasan and Trentina in the Jewellery Quarter and Chapter in Edgbaston. This is the fourth year that Birmingham Restaurant Festival has run and participating venues offer exclusive menus curated especially for the event. 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. The final line up of restaurants and menus will be revealed closer to the event. Alex Nicholson-Evans, founder of Living For The Weekend which organises the festival, said: "I'm so excited that Birmingham Restaurant Festival is back to showcase the very best of our city's culinary scene for a fourth year. "We're revealing our biggest preview list to date and it's amazing to see so many fantastic restaurants lined up to take part. "There are plenty more still to come and we can't wait to share those with foodies from Birmingham and beyond in the coming months." The 31 venues which have so far agreed to take part are: 670 grams Aluna Asha's Bhancha Chaophraya Chapter Chung Ying Dishoom Fiesta del Asado Gaucho Hotel du Vin Inju Lasan Lulu Wild Malmaison Milan Orelle Primitivo Saint Pauls House Siamais Tattu The Alchemist (Brindleyplace and Colmore Row) The Church The Jam House The Woods Tiger Bites Pig Trentina Txikiteo Zindiya

Economy

UK house prices reach new peak in April, defying stamp duty changes and market predictions

Despite concerns of a market slowdown following changes to stamp duty, the average UK house price increased by 1.4% in April. Rightmove reports that UK house prices have reached a new record high of £377,182. Analysts suggest that lower mortgage rates have counterbalanced the effects of stamp duty alterations and the typical seasonal slowdown, as reported by City AM. Jeremy Leaf, a north London estate agent and former RICS residential chairman, commented: "Attack is the best form of defence for some sellers." He added: "In our offices we have noticed many want to tough out the loss of the stamp duty concession last month, keep asking prices up and letting the market find a new 'normal'." Before April 1, no stamp duty was levied on purchases up to £250,000. However, from this month, a two per cent charge now applies to homes purchased between £125,001 and £250,000. Rightmove pointed out that while the seasonal increase in house prices is a "positive sign for the health of the market," the large number of properties on sale means competition will be intense. Estate agents Yopa report that nearly 54,000 home sellers have entered the market across England since the stamp duty deadline expired. Tomer Aboody, Director of property lender MT Finance, said: "All eyes are on the Bank of England to see whether there will be a further reduction in May, with any assistance here likely to boost activity now that the stamp duty concession has ended." "Indeed, buyers may await further reductions before making their move." Investors are predicting as many as four interest rate reductions this year, largely due to the global instability triggered by US President Donald Trump's tariffs. The UK's 10-year swap rate took a hit on April 7, and analysts anticipate it will continue to decline.

Economy

Taskmaster makers' huge payday as profits soar at production company

The creators of popular TV shows like Taskmaster have enjoyed a significant pay day as profits at their production company continue to climb. The London-based Tiverton 2 group, which owns several TV production companies including Avalon Entertainment, issued a £12m dividend in October last year, as reported by City AM. This followed the company's pre-tax profit leap from £7.7m to £10.3m in the 12 months leading up to 30 June, 2024, compared to the previous year. The firm, also responsible for shows like Not Going Out and Catastrophe, had previously issued dividends of £9m in July 2023 and £3.3m in April 2024. Recent accounts filed with Companies House reveal that the company's turnover fell from £99.1m to £94.7m over the year. The makers of Taskmaster attributed this 4% decrease in turnover to the completion of several scripted TV projects and a greater emphasis on development opportunities. However, they noted an increase in profit due to higher margin revenue streams and reduced overheads in line with lower revenues. Avalon has produced other TV shows such as The Russell Howard Hour, TV Burp, and Starstruck, as well as podcasts like Shagged. Married. Annoyed with Chris and Rosie Ramsey and Jerry Springer: The Opera. Avalon Entertainment was co-founded by Jon Thoday, who also serves as its managing director. Avalon, launched back in the halcyon days of 1989, has expanded its reach, proudly setting up shop in London, Los Angeles, and New York. The board's collective voice rang through a statement asserting: "The Tiverton 2 group has continued the successful strategy of developing and maximising strong brands, achieved by: working with some of the best creative talent in the entertainment business; nurturing and developing new ideas and properties both on-screen and on-stage; delivering a strong television production and live events schedule; retaining rights in TV programming; and by having a highly focused distribution team operating in the secondary TV market." They underscored their calculated boldness in re-ploughing profits for artistic purposes, stating: "This strategy requires a significant level of reinvestment of profits back into the creative process."

Economy

Powys-based Cambrian Training Group becomes employess-owned

A leading provider of apprenticeship and vocational training across Wales has become employee-owned. Cambrian Training Group was established in Welshpool, Powys, in 1995 as a subsidiary of Mid Wales Tourism to deliver vocational and hospitality skills to support the development of the region’s tourism sector. In 2002 it was acquired in a management buyout (MBO). Nine employees, plus an independent chairman took up the offer, paving the way for the company’s growth. Since then, the company – which now employs 65 staff – has expanded its work-based learning and skills and apprenticeship programmes into hospitality, food and drink, manufacturing, retail, business administration, financial services, childcare, health and social care, plus more. Currently, three key members of the original MBO remain at Cambrian Training and are, along with other retired shareholders, selling their stake in the company. Arwyn Watkins, executive chairman, Anne Jones, director of quality and Elen Rees, director of finance, are remaining involved. The value of the deal has not been disclosed. Mr Watkins, who will be stepping down as director but is remaining on the EOT board, said: “Securing employee ownership trust status is a significant step in our journey. “Our employees are at the heart of everything we do, and this move ensures that they have a direct stake in our continued success. “The decision to move towards an EOT rather than opting for a trade sale was motivated by the desire to sustain the company’s culture, values, and commitment to quality over the long term. “We saw the potential for an employee-owned future as a way to ensure that Cambrian Training Group would remain true to its mission of delivering exceptional training services across Wales, particularly in the face of the challenges posed by post-Covid business recovery. “Moving into EOT also reinforces our commitment to maintaining our headquarters in Welshpool and supporting the local economy.” Capital Law provided legal advice to Cambrian Training on its EOT transition, with Azets advising on its valuation. The business was also supported by Social Business Wales, delivered by Cwmpas. The Employee Ownership Wales service from Cwmpas is part of the Social Business Wales and Business Wales family, both funded by Welsh Government. Branwen Ellis, from Cwmpas, said: “We have been really pleased to support Cambrian Training with their EOT plans and are delighted that yet another great company and significant employer remains autonomous and in local ownership.

Economy

Scunthorpe supplier to data centre industry collapses with jobs lost

A Scunthorpe-based provider of equipment to the data centre market has collapsed leading to the loss of 17 jobs. Joint administrators for Cross-Guard Limited, which has a head office on Queensway Industrial Estate, have retained 22 staff to help complete orders and for installations on contracts. Gareth Rusling of insolvency specialist Begbies Traynor and Charles Ranby-Gorwood of CRG Insolvency & Financial are now looking for potential buyers for the goodwill and assets of the business. They were called in by a director of the business after it was said to have become unviable. Cross-Guard had supplied specialist kit such as cold and hot aisle containment, modular caging and ventilated server safes, among other security-based items for the domestic and commercial markets. The business - established in 2016 - had sold to a range of major brand names such as IBM, HP, Amazon and Google and its expertise and products had been used for projects across Europe and the US. Last month the firm had exhibited at the Data Centre World conference at London's Excel Centre. A spokesperson for Begbies Traynor Group said: “It is very early days, and the joint administrators are actively working through all the financial information in detail to establish and contact all of the creditors and debtors, and to understand the cause of the failure of the business, but it is already clear that the business was unviable. “Sadly, redundancies have already been forced, and more are expected once the current work in progress is completed and the contracted projects are fulfilled. More information will become available in coming days and weeks, but our responsibilities are to protect the interests of the creditors, and to manage the process of redundancy that is affecting the employees.”