Business Breakfast LIVE: Co-op to create 1,600 jobs and open 100 shops in 2018

Everything you need to know...

That’s all for today folks. I’ll be back tomorrow morning with more news as everyone starts to get back to work after New Year.

Until then here are some of our top stories:

18 for 2018: Here are the companies to watch in the North East next year

Meet the North East’s top 10 companies of 2017 - as chosen by our business team

Here are the 10 developments that will change the North East in 2018

Mission to create Stronger North East in 2018 is set out by Chamber members

The region’s leading business membership organisation has set out its campaign to build a stronger North East this year, in a mission to create new jobs and attract new investment.

North East England Chamber of Commerce members have identified the political decisions they believe would have the biggest positive impact on economic growth in the next 12 months.

Priorities include fair funding and further devolution to the North East, investment in key infrastructure and support to grow the region’s exports.

A part of the ‘Stronger North East’ campaign the Chamber will continue to champion the region’s exporters, insisting on a positive trade deal with the EU and demanding more support for new and existing exporters to grow its reputation as a global North East.

The Chamber wants businesses to be able to build upon the region’s unrivalled export track record and break into new international markets.

The campaign has a more connected region as its heart, with the need for major investment in the regional rail network – on schemes such as Darlington station and the Newcastle to Northumberland line – as well as an increase in the region’s energy generating capacity.

Chamber president John McCabe said the work will help create an influential region with the power to make decisions about its own future, and will focus on making the region more competitive, in particular ensuring public procurement creates more opportunities for North East businesses, and supporting local initiatives for regenerating town centres.

He said:

We know the North East is a great place to do business, but it can also be so much better.

Our businesses have the right assets, attitude and abilities to make a far bigger contribution to the national economy, but are all too often prevented from doing so. That’s why the Chamber is campaigning for a Stronger North East.

Company directors lack confidence in public sector digital services, study shows

Most company directors are sceptical about the ability of the public sector to take advantage of technological advances such as automation and believe the Government does not make good enough use of private sector expertise, a new study shows.
A survey of 1,000 business leaders found that three out of five believed digital services run by the public sector were inferior to those created by private firms.
The Institute of Directors (IoD) said its research revealed that most of its members wanted the Government to improve the way it works with technology companies.
Stephen Martin, director general of the IoD, said:

While there has been some improvement in recent years, business leaders still feel the public sector is lagging well behind when compared against the innovation we’ve seen from companies.

Our members are both providers and users of government digital services. They are very keen that the Government make better use of the knowledge and experience that exists in businesses of all sizes.

The gains could be not only better and more cost-efficient services, but also reduced time wasted on form-filling for companies. Raising the UK’s productivity is the driving force behind the Government’s economic policy, so they should be looking for opportunities to work with the private sector to improve their digital offering.

This could make life easier for small firms in particular, freeing up time for our members to spend improving their businesses.

300,000 missing out on unemployment benefits, think tank finds

Around 300,000 unemployed people or those on low incomes are missing out on financial support they are entitled to, according to a new study.
The Resolution Foundation said huge numbers were not claiming unemployment benefits worth at least £73 a week.
The think tank said the group of “forgotten unemployed” were mainly older people, especially women aged 55 to 64, and younger men.
Most were jobless, but a significant minority were in work and entitled to claim Universal Credit or Jobseeker’s Allowance.
Many don’t claim benefits if they were living with a partner or parents, said the Foundation, which urged the Government to do more to help those on the “margins” of the labour market.
David Finch, senior economic analyst at the Resolution Foundation, said:

Over the last 20 years, a growing number of unemployed people are not claiming unemployment benefits.

Policy makers have generally been pretty relaxed about this gap, assuming that is largely due to people finding new work very quickly, or having other sources of financial support at home.

But while there are good reasons for some people not to claim benefits, there are also around 300,000 forgotten unemployed people who are falling through the cracks and not getting the financial support that they need and are entitled to.

A Department for Work and Pensions spokesman said:

Anyone who believes they’re entitled to out of work benefits should contact Jobcentre Plus - online, over the phone or by visiting their local branch.

Our dedicated advisers and work coaches are on hand to help people claim what they are entitled to, and can signpost to other support options available.

New jobs on the way at 0800 Repair amid ambitious expansion plans for year ahead

Home services specialist 0800 Repair has unveiled plans to create 30 new jobs as it targets further growth and expansion.

The Houghton-le-Spring company, which specialises in the repair and maintenance of domestic goods, expects to boost its engineering workforce by 25% as part of a strategy to build on its current record turnover, a move which will take the number of its white goods engineers to 150.

It is also expecting to increase the number of completed service calls to 230,000, from the firm’s current 200,000 annual average, across kitchen appliances and entertainment equipment.

The firm works with a number of large manufacturers and retailers in the UK, with its network of engineers repairing and installing a wide range of domestic appliances, including washing machines, fridges and cookers.

It forms part of Pacifica Appliance Services, a subsidiary of Pacifica Group, one of the UK’s largest providers of home services and product warranty.

Pacifica Group reported a strong 2017, boosted by a landmark, eight-figure contract win with energy supplier npower, leading to revenues increasing to more than £40m.

It also acquired a number of businesses, including domestic and white good repair firm Megan Technical Services.

In all, the group employs more than 480 staff, with this figure set to rise with the 0800 Repair recruitment drive and through further job creation in its subsidiaries in 2018.

Scott Pallister, finance director of Pacifica Group, said:

We are set to deliver another strong year within Pacifica Appliance Services, and the Group as a whole, following a positive and hugely successful 2017.

Demand for our services has continued to rise, which has contributed to the growth of the business and the necessity to expand our workforce and engineering network.

Continued investment in our infrastructure has allowed the Group to operate at a high level and we are looking to hit the ground running in 2018, while maintaining and building on our high levels of customer service.

Rail commuters 'held to ransom' as season ticket prices rise faster than wages

Rail commuters are spending up to five times as much of their salary on season tickets as passengers on the continent, a new study has revealed.
Fares will go up by an average of 3.4% on Tuesday, the biggest increase since 2013, covering unregulated fares such as off-peak leisure tickets, although season tickets will go up by 3.6%, sparking protests outside railway stations across the country.
The TUC said workers travelling from Chelmsford in Essex to London will have to pay 13% of their salary for a £381 monthly season ticket.
That compares with 2% for a comparable commute of around 30 miles in France (£66), 3% in Italy (£65), 4% in Germany (£118) and 5% in Spain (£108) and Belgium (£144).
Season tickets will increase a third faster than wages in 2018, said the TUC.
TUC general secretary Frances O’Grady said:

Another year, another price increase. Many commuters will look with envy to their continental cousins, who enjoy reasonably priced journeys to work.

Employers can help out by offering zero-interest season ticket loans, or offering more flexible work hours and locations.

But ultimately the Government need to take our railways back into public hands. That will stop hundreds of millions being siphoned off by private rail firms, and allow us to put passengers first.

Mick Cash, general secretary of the Rail, Maritime and Transport union, said:

While the British passenger is being pumped for cash, the same private companies are axing safety-critical staff and security on our trains and stations.

It’s a national scandal that private profit comes before public safety on our rail network.

Even worse, with 75% of Britain’s railways in overseas hands, it is the British people who are subsidising state-run rail operations across the continent.

The answer to this racket is a full return to public ownership of Britain’s railways and an end to this gross profiteering at the fare-payers expense.

Go-Ahead focusing on GTR after missing out on West Midlands franchise

Transport giant Go-Ahead has vowed to improve its Govia Thameslink Railway business after failing to win the West Midlands rail franchise earlier this year.

The contract was awarded to Abellio joint venture West Midlands Trains Ltd in August, but has led to Go-Ahead promising to improve GTR after its own failed bid.

In the company accounts chairman Andrew Allner said:

Following the disappointing decision by the Department for Transport (DfT) in August 2017 to award the West Midlands franchise to another operator, our UK rail strategy is focused on restoring service and value to GTR and deliverig attractive and value enhancing bids to operate future rail franchises.

As we explore new ways of delivering our services, we also continue to explore new markets.

Our international development is progressing well with new contracts being won and introduced during the year in three international markets. This good progress has led us to introduce a five-year target for 15% to 20% of group profit to be generated from international operations.

Mr Allner’s comments come as the group revealed its revenues for the year ending July 2017 had increased 3.5% to £3.48bn. operating profit however, fell from £162.6m to £150.6m.

Nightclub owners Deltic plan Newcastle opening as part of big expansion plans

Nightclub-owner Deltic Group has revealed it has its eye on Newcastle as part of expansion plans in the wake of its failed merger attempt with Revolution Bars.

Chief executive Peter Marks says the company wants to snap up profitable businesses and had doubled the size of its property department to help spearhead growth.

A number of key cities are in the spotlight, including Newcastle where it currently does not operate any venues.

While potential deals will be funded by existing cash flow, Mr Marks said he would call on the support of shareholders or private equity firms if “something that looked a bit tasty” came into his sights.

Mr Marks said after 35 years of experiencing the ups and downs of the night-time economy now was a good time for the business to invest.

Deltic owns 57 clubs and bars including the Prysm, Atik and Oceana brands

He said:

We are now actively looking at building up a pipeline and we’ve doubled the size of our property department to do that.

We are going to be looking at individual successful going-concerns on a piecemeal basis. We are going to be looking at new sites and to develop the Bar & Beyond brand as well as one or two of the club brands.

We have nothing in Manchester, Liverpool, Glasgow and Newcastle, so obviously they are in the mix.

Co-op to create 1,600 jobs during 2018

The Co-op plans to open 100 new food stores in 2018, creating around 1,600 jobs.
The retailer will invest more than £160m in the venture, as well as giving “major makeovers” to a further 150 outlets.
More than 20 new stores will open in London, up to 18 in Scotland, 10 in Wales and others in English cities including York, Plymouth and Bristol.
The news follows the announcement of an agreement for the Co-op to become the exclusive wholesale supplier to the 2,200 Costcutter Group stores, and the deal to buy Nisa Retail, which is conditional on Competition and Markets Authority approval.
Jo Whitfield, chief executive of Co-op Food said:

The Co-op is positively responding to the changes occurring within this dynamic sector. Our food business is going from strength to strength in what is clearly a challenging retail market.

We have the ambition for our stores to be at the heart of local life, bringing communities together and offering our members and customers great quality products when and where they need them.

Stuart Hookins, Co-op’s director of portfolio and development, said:

The Co-op’s extensive acquisitions and refit programme is a fundamental part of our food strategy.

Moving forward with a clear purpose and momentum, our expansion plans for 2018 will mean that the Co-op is on track to have opened at least 100 new stores in each of three consecutive years.

With over one million new active members joining us in the last year, we are always looking for new locations to get closer to where our members and customers live and work and to meet their shopping needs conveniently.