Business

Hospitality businesses across Britain are being forced to shut their doors at least one day a week as soaring wage costs and higher taxes pile pressure on the sector.

A new survey by leading trade bodies found that almost three quarters of pubs, restaurants and cafes were operating at or below 85 per cent of their normal capacity, with many cutting back opening hours in a scramble to save cash.

The closures follow the Chancellor Rachel Reeves’s decision to raise employers’ National Insurance contributions (NICs) by £25 billion and increase the minimum wage in April. While summer trading has remained strong, the rise in labour costs has tipped many operators into crisis.

The survey, carried out by the British Institute of Innkeeping, the British Beer & Pub Association, UKHospitality and Hospitality Ulster, revealed that 73 per cent of businesses had less than six months of cash reserves, while one in five had none at all.

To offset the new costs, 79 per cent of businesses said they had raised prices for customers, more than half had cut staff numbers, and many were reducing operating hours.

According to UKHospitality, Reeves’s tax raid has added £3.4 billion in costs to the sector, prompting 84,000 job losses since last year’s autumn Budget.

Andrew Griffith, the shadow business secretary, accused the Government of ignoring industry warnings: “The Government stubbornly ignored clear warnings about the jobs tax and state-imposed wage rises from hospitality businesses because Reeves thought she knew better. Now, instead of a roaring summer trade, businesses can’t afford the staff they need and are watching their cash reserves fade faster than a tan after a holiday.”

Figures from the Recruitment and Employment Confederation showed hospitality job vacancies fell by more than 22,000 in June compared with a year earlier. Wider ONS data also recorded a decline in national vacancies to 718,000 in the three months to July, down 44,000 on the previous quarter.

The British Beer & Pub Association last month warned that one pub a day is expected to shut this year, as landlords battle the combined pressures of Reeves’s tax rises, higher wages and stubbornly high energy bills.

In a joint statement, the trade bodies behind the survey said: “Unsustainable tax increases are squeezing businesses, stifling growth and investment, and threatening local employment, especially for young people. It is forcing businesses to make impossible decisions to cut jobs, put up prices, reduce opening hours and limit the support they want to give their communities.”

They called on the Government to roll back April’s NIC changes, reduce VAT, and cut business rates to safeguard jobs and investment.

A Government spokesperson defended its record, saying: “Pubs, cafes and restaurants are vital to local communities, that’s why we’re cutting the cost of licensing, helping more pubs, cafes and restaurants offer pavement drinks and al fresco dining, and extending business rates relief for these businesses – on top of cutting alcohol duty on draught pints and capping corporation tax.”

But industry leaders argue such measures fall short of tackling the structural costs created by the recent Budget, warning that without further action Britain’s hospitality sector faces a winter of closures.

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Tax raid forcing pubs and restaurants to close one day a week

A new study has set out a strategic digital roadmap to fast-track the UK steel industry’s transition to net zero, warning that overcoming skills shortages, regulatory hurdles and investment uncertainty is vital if the sector is to meet its climate goals.

The research, developed by academics at the University of Warwick and supported by the InterAct programme, identifies 12 critical barriers to the adoption of Industrial Digital Technologies (IDTs). These include everything from regulatory complexity to a lack of skilled workers and funding pressures.

Using a seven-layer framework, the study maps out how these challenges interconnect and ranks which need to be prioritised by policymakers and industry leaders. The aim is to guide the steel industry — which comprises more than 1,100 companies and contributes £2.3 billion to the UK economy — towards more resource-efficient and sustainable production.

While steel is endlessly recyclable, its production is highly energy-intensive, accounting for a significant portion of global CO₂ emissions. That makes decarbonisation a pressing priority, both nationally and internationally.

“Our research provides targeted, actionable recommendations that empower decision-makers to focus their efforts where they’ll have the greatest impact,” said Dr Taofeeq Ibn-Mohammed, one of the study’s authors. “A strategic blend of policy reform, technological innovation, organisational change and smart economic planning is key to overcoming these barriers and building a greener, more competitive steel industry.”

The findings have already been presented at AISTech, the Iron and Steel Technology Conference in the US, where they were welcomed by global industry stakeholders. A practitioner’s report is now in preparation to provide practical guidance for UK companies.

Dr Aitana Uclés Fuensanta, the project’s lead researcher, said: “This is the first empirical analysis of its kind to map the causal relationships between barriers to IDT adoption. Our insights will enable stakeholders to prioritise action, share best practices, and drive meaningful progress toward net zero.”

The study is part of the wider InterAct programme, which is funded through the government’s Made Smarter Innovation initiative. InterAct brings together academics, manufacturers, policymakers and digital technology providers to examine how new technologies can support sustainable change in UK industry.

Professor Jill MacBryde, co-director of InterAct at the University of Strathclyde, said: “The work undertaken by the University of Warwick team represents a crucial step towards a more sustainable future for the steel sector. By focusing on the human, regulatory and operational issues as well as the technology itself, this roadmap shows a clear path forward.”

The methodologies developed in the research are also being applied to other energy-intensive industries such as ceramics and glass, helping to reinforce the UK’s role as a leader in industrial sustainability innovation.

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UK steel industry given digital roadmap to reach net zero

Inflation climbed to its highest level in a year and a half in July, driven by surging air fares, hotel stays and grocery bills, dealing a blow to Rachel Reeves as she prepares her first autumn budget as Chancellor.

The Office for National Statistics (ONS) said annual consumer price inflation rose to 3.8 per cent last month, up from 3.6 per cent in June and the sharpest reading since January 2024. The figure overshot economists’ forecasts, reviving fears that the cost-of-living crisis is far from over.

The uptick was led by an extraordinary 30.2 per cent monthly rise in air fares — the steepest July increase since comparable records began in 2001 — fuelled by school holidays and peak summer travel demand. Hotels and restaurants also contributed heavily, with prices up 3.4 per cent year on year. Analysts suggested the Oasis reunion tour had intensified pressure on city accommodation markets where the band performed.

Grocery prices climbed 4.9 per cent, their fastest pace since February, with coffee and chocolate among the biggest drivers. Rising utility bills added further pressure on households.

Grant Fitzner, chief economist at the ONS, said: “The main driver was a hefty increase in air fares, the largest July rise since collection of air fares changed from quarterly to monthly in 2001. This increase was likely due to the timing of this year’s school holidays.”

The figures underscore the difficult balancing act facing Reeves, who acknowledged that while inflation is far below the double-digit highs of 2022 under the previous government, “there is still more to do to ease the cost of living”.

The Chancellor is already under pressure to prove that Labour’s economic strategy can deliver growth and higher living standards. Economists warn she may need to find up to £50 billion in tax rises or spending cuts to stabilise the public finances. Reports suggest Treasury officials are examining measures including a new capital gains tax on the sale of high-value homes.

The inflation surprise also complicates the Bank of England’s path on interest rates. Earlier this month, the Bank trimmed its base rate from 4.25 per cent to 4 per cent and projected inflation would touch 4 per cent in September — the figure that determines annual increases to pensions and benefits.

But services inflation, a key gauge of domestic cost pressures, rose to 5 per cent in July, well above the Bank’s forecast. Core inflation, which excludes energy and food, edged up to 3.8 per cent.

Suren Thiru, economics director at ICAEW, said July’s data “probably extinguishes hope of a September interest rate cut”. However, Monica George Michail, associate economist at the National Institute of Economic and Social Research, suggested the Bank may “look through” seasonal pressures and cut rates again before year-end.

Despite the inflationary jolt, the economy has shown signs of resilience, expanding by 0.7 per cent in the first quarter and 0.3 per cent in the second, according to the ONS. Reeves will be hoping that growth momentum and easing pressures on households later in the year can shore up confidence ahead of a politically charged autumn budget.

For now, though, the combination of rising prices, fading hopes of further rate cuts, and looming tax hikes leaves Britain’s households and businesses braced for another squeeze.

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Air fares and food prices push UK inflation to 18-month high

Applied Nutrition, the sports nutrition business backed by JD Sports and Coleen Rooney, has posted forecast-beating sales and profits in its first year as a public company, defying concerns over consumer spending.

The Liverpool-based firm told investors that revenues for the year to 31 July are expected to hit £107 million, comfortably ahead of City forecasts of £100 million and up 24 per cent year-on-year. Adjusted underlying profit is also set to be 19 per cent higher than the previous year, excluding exceptional costs linked to its flotation last October.

The strong update comes after a robust second half of trading, leaving the company with a better-than-expected £18.5 million cash position.

Applied Nutrition was founded in 2014 by chief executive Thomas Ryder, 41, who began selling supplements while working as a scaffolder before moving into wholesale and eventually creating his own brand. The company now sells more than 100 products — including protein shakes, energy drinks and vitamins — in over 85 countries.

Its rapid growth has attracted heavyweight backers including Peter Cowgill, the former JD Sports executive chairman; Asda co-owner Mohsin Issa; and Andy Bell, founder of investment platform AJ Bell, who now chairs the company. Rooney, the wife of ex-England footballer Wayne Rooney, is also an investor. JD Sports holds an almost 10 per cent stake.

Applied Nutrition floated at 140p a share in October 2024 in one of London’s biggest listings of the year. On Monday, shares jumped 11p, or 8.5 per cent, to 142.5p, valuing the company at about £328 million. The gains also helped lift JD Sports, which rose 7 per cent to lead the FTSE 100.

Analysts praised the performance. Peel Hunt described the figures as “highly impressive … given the uncertainty at the half-year”, while Panmure Liberum’s Wayne Brown argued the shares “deserve to go much stronger … having not missed a beat since its float and now delivering meaningful upgrades”.

Applied Nutrition said its business-to-business model, focus on product innovation and brand quality would continue to underpin growth. The company added that current momentum meant revenues this year should exceed analysts’ forecasts of £112.4 million.

Ryder said: “Our focus and ambition remain as strong as ever — in delivering for our shareholders, customers and team — and we are excited about the opportunities we have in the pipeline for the year ahead.”

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Sales and profits jump at Coleen Rooney-backed Applied Nutrition

The number of private schools collapsing into administration has doubled in the first half of this year, as the government’s VAT changes bite into the sector’s finances.

Figures released by risk advisory firm Kroll show that 12 private schools went into administration between January and July, compared with six during the same period last year. Four of those failures occurred in July alone, raising fears that closures could accelerate further.

Kroll warned that administrations across the education sector could end the year almost 50 per cent higher than in 2024. Experts attribute the sharp increase to Labour’s decision to apply VAT at 20 per cent to private school fees from January and to abolish the sector’s charitable status in April, which removed business rate relief.

Benjamin Wiles, managing director at Kroll, said: “While there continues to be economic uncertainty, weak business confidence and unwelcome speculation on further taxes, we are not seeing a surge in company insolvencies. Naturally, what is more interesting is the picture within certain sectors. We saw a jump in administrations among education and schools, most likely as a result of the government’s VAT increase that took effect at the beginning of the year.”

The VAT measure was one of Labour’s flagship tax policies, designed to raise additional funds for state education. But critics warned that smaller private schools, particularly those outside major cities and with lower fee structures, would struggle to absorb the additional tax.

Administrations are a formal insolvency process aimed at restructuring businesses or salvaging value for lenders, and they are often viewed as a bellwether of economic health. Their growing use in the education sector is seen as evidence of financial strain on mid-sized and regional independent schools.

The squeeze comes against a broader backdrop of rising business costs. Companies across all sectors are facing higher taxes following a £25 billion rise in employers’ national insurance contributions, alongside a 6.7 per cent increase in the minimum wage. Interest rates, though cut five times in the past year, remain relatively high at 4 per cent.

According to the Insolvency Service, 2,081 companies entered insolvency in July, up from 2,053 in June. Retail continues to be one of the hardest-hit sectors, with 324 retailers collapsing into insolvency in June, including the UK arm of Claire’s, the high street jewellery chain, after its US parent filed for bankruptcy.

While the total corporate insolvency figures remain broadly stable, the pressure on private schools is expected to intensify. Analysts say the combination of higher taxes, reduced reliefs and ongoing cost-of-living pressures on parents could see more schools forced into mergers, restructures or closures in the months ahead.

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Number of private schools going bust doubles after VAT raid

At some point in their history, businesses commonly have need for external funding to help their growth trajectory.

However, acquiring investment has its dangers and pitfalls and the last thing the Board will want is to invest time and money getting to the point of securing the funding only for it to be pulled.  As a commercial lawyer with decades of handling funding rounds, James Fulforth, Senior Partner and Partner in Kingsley Napley’s Commercial, Corporate and Finance team explains some of the reasons why fundraises can go wrong and therefore how best to avoid such a scenario.

Valuation and financials

Investors will wish to see a credible valuation for the company which is raising investment, and the more substance that lies behind this, the better. Is the company already trading? If yes, what financials are available? If any year end accounts have been finalised, these should be disclosed, but ideally they will be accompanied by up-to-date management accounts.

If initial trading is modest, then the focus will be more on forecasts for future periods. These will generally be incorporated within the company’s business plan.

Even if the company has researched the position carefully, financial projections are by their nature highly speculative which is why they are rarely supported by warranties in the transaction documentation. If investors do invest in an early round, future relations between founders and investors will be happier if trust is established early on. If the initial valuation proves too frothy, relations may start to sour quickly, and founders will spend more time on managing relations with grumpy stakeholders than on building their business.

Far better to take a realistic, even conservative, approach to valuations and projections, to avoid overselling the idea, and to then exceed those expectations.

Proposition

The credibility of the company’s business plan will depend on the nature of the product or service, the market, and the degree to which data is available to support the company’s analysis. Investors will consider the extent to which a product or service has already been developed, launched and tested.

Has an expert been engaged to produce a report on the product, service or market, and can such a report be regarded as independent and therefore credible? How original is the business idea, and is it possible to protect the intellectual property underlying it? If there is little substance behind the proposition, then even if the financial performance and valuation is modest, investors will struggle to see future value.

But highly detailed analysis may be of limited value if the founders are unable to articulate the company’s proposition in their pitch. Much will depend on the individuals concerned and the character of the founder team. More introverted individuals may have the technical skills, but they will need to be complemented by those with energy, charisma and leadership.

Many successful businesses are led by gifted individuals, but raising investment involves stiff competition. Balanced founder teams tend to appear a more compelling offering.

Preparation

Careful preparation prior to the fund raising is critical. A well-researched plan and a strong pitch will have little traction with experienced investors if the same level of professionalism has not been applied to the management of the company. The same applies to the organisation of the due diligence process, and the way in which founders engage in the process.

While family and friends may be prepared to rely on their trust in the founders, more sophisticated investors will require detailed answers to detailed questions. Most important is capital structure. Have all share issues and share options been documented properly?

Have terms with key suppliers, customers, employees and consultants been agreed and written down? To what degree are such terms standardised? Has the company acquired ownership or a licence over all key assets, such as intellectual property? What governance is in place around data, cyber security, and regulatory issues? Potential investors may wish to go back to when the company was founded, so ideally founders should start addressing any gaps in these elements early on.

Any obvious issues which are uncovered may be difficult to fix quickly, and may compromise an awful lot of hard work in devising and selling the proposition.

These are not the most exciting elements of running a business, and some founders will simply not have the desire or the skillset to give them much focus but, once again, the key is to have someone in the team who is prepared to understand the detail and to directly address any wrinkles that inevitably emerge.

Other investors

Securing a lead investor is often key to attracting additional investors, especially if that investor is well-known or has significant expertise in a particular sector. Even if that’s not the case, a lead investor is often someone who has already spent time in getting to know the company’s product, service or team, and provided they appear credible and are able to articulate their views to other investors in the course of due diligence, they will help reassure smaller investors and build momentum.

However, founders should be cautious of getting too close to one investor, and again they should carry out their own research on the background and track record of that individual or institution. If a lead investor pulls out of the round, others may follow.

If this happens shortly before completion, the damage may be significant. If a company is fortunate enough to have the option of choosing between investors, it should be strategic about who it collaborates with, and it may not wish to put all eggs in the same basket.

The ideal investor or investors will not only provide capital but also commercial experience and real knowledge of the sector. They may even be a suitable person for the company to have on the board.

Founder terms

Finally, founders should be realistic about their personal compensation and the terms under which they hold shares. Even though they may own a substantial percentage of fully vested shares prior to the fund raise, investors will wish to include appropriate protections, and these may include requiring the founders to offer up their shares for sale in certain circumstances.

Again, the protections required will vary, depending on the nature of the parties involved and their experience, but also on the other elements already touched upon, ie the valuation, track record of the founders, nature of the preparation and dynamic between the investor group.

If a founder can confidently justify the overall proposition, negotiations will be easier. But an unrealistic founder may fall at the last hurdle. These matters need careful consideration alongside advisers and, much like a company’s valuation, the key is to be reasonable and to think long-term.

This also applies to other employees’ compensation. Investors will wish to see that employees are properly incentivised to stay and perform and to add value to the company. Companies that don’t offer equity to their employees (for example, through EMIs) risk losing important talent to competitors.

Securing funding has its pitfalls, and expert advice should always be sought to help guide your business through the process but, if properly managed and executed at the right time, the result can prove transformational for your business.

Read more:
5 Reasons Why Fundraising can Go Wrong

Backed by fertiliser giant Mosaic, the Oxford-based venture accelerates field testing of its precision biostimulant technology

SugaROx, a UK-based agricultural technology company developing precision biostimulants, has secured a £1 million seed round extension to accelerate manufacturing and field testing of its flagship product.

The funding includes a £400,000 strategic investment from The Mosaic Company, one of the world’s largest fertiliser producers, with the remainder provided by existing backers including Future Planet Capital, Regenerate Ventures, and UK angel investors.

Biostimulants are among the fastest-growing crop input categories globally, with an estimated compound annual growth rate of 11 per cent. SugaROx is seeking to position itself at the forefront of the market with its proprietary ingredient, Trehalose-6-Phosphate (T6P).

The T6P biostimulant works by inhibiting SnRK1, an enzyme that signals energy scarcity in plants, thereby improving crop yield and resilience. Safety tests completed earlier this year confirmed a favourable regulatory outlook, encouraging potential partners to request samples for large-scale trials.

SugaROx is targeting a UK market launch for its T6P wheat biostimulant in 2027, followed by entry into the EU in 2028. Trials in soybean and maize began this year, with ambitions to expand into the US and Brazilian markets shortly after.

Mark Robbins, chief executive of SugaROx, (pictured) said the new funding was critical in meeting demand for product samples. He said: “In response to increasing demand, we decided to accelerate our manufacturing timeline, fast-tracking the shift from in-house lab production to a pilot facility,” he said. “The Innovate UK grant and additional investment allow us to do exactly that.”

The deal also builds on a £2.4 million Innovate UK grant awarded last year to help scale manufacturing of T6P. Mosaic’s involvement gives SugaROx access to its US trial network and digital platform TruResponse, which allows field results to be visualised and analysed at scale.

Dr Cara Griffiths, chief technical officer and co-founder of SugaROx, said: “With Mosaic we gain access to an established network of trial sites for validation of our first product in the US at scale. Mosaic will also provide us with access to TruResponse, a digital platform to visualise field results, which will be extremely valuable for our research.”

Founded to commercialise research into plant biochemistry, SugaROx aims to bring science-backed innovation into a market increasingly focused on sustainable crop production.

Robbins added: “We have the ambition to transform the biostimulants industry with science-based solutions – something that is only achievable in collaboration with other players.”

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UK biostimulant startup SugaROx raises £1m to fast-track crop trials

Amazon is facing a multibillion-pound legal challenge in the UK after being accused of artificially inflating prices paid by tens of millions of British consumers.

The Association of Consumer Support Organisations (ACSO), a non-profit group, has applied to launch a collective legal action on behalf of 45 million customers who bought products from Amazon since 2019. It alleges that the e-commerce giant prevented independent sellers from offering cheaper prices on their own websites, thereby restricting competition and driving up costs for consumers.

If successful, the “opt-out” claim could see millions of Britons automatically entitled to refunds, without having to join the action individually.

Matthew Maxwell-Scott, founder and executive director of ACSO, said: “Millions of people in the UK make purchases on Amazon every day. Despite the company’s assurances that it is above all else ‘customer-obsessed’, we consider there are strong grounds to argue that UK consumers have paid higher prices because of Amazon’s pricing policies. This action will ensure that consumers can obtain redress for the considerable losses they have suffered.”

The lawsuit echoes long-running battles between Amazon and regulators abroad. In the US, the Federal Trade Commission filed a case in 2023 claiming Amazon used its “monopoly power to inflate prices” by penalising sellers who offered discounts elsewhere. Although parts of that claim were dismissed, the case is proceeding to trial.

The move underlines the growing prevalence of US-style class actions in Britain since reforms under the Consumer Rights Act 2015. Collective cases have become a mounting risk for multinational corporations, with researchers at the European Centre for International Political Economy warning in June that mass litigation could cost the UK economy £18bn by deterring investment.

Amazon has faced scrutiny in Britain before. A 2013 probe into its pricing practices led to voluntary changes to address regulator concerns. But ACSO argues its business model continues to prevent “healthy price competition”.

Amazon has rejected the claims. A spokesman said: “This claim is without merit and we’re confident that will become clear through the legal process. Amazon features offers that provide customers with low prices and fast delivery. In fact, according to independent analysis by Profitero, Amazon has maintained its position as the lowest-priced online retailer in the UK for the fifth consecutive year.

“We remain committed to supporting the 100,000 independent businesses that sell their products on our UK store, which generate billions of pounds in export sales every year.”

The case will be closely watched by retailers and investors given its potential scale. Amazon’s UK business serves more than 45 million customers and supports around 100,000 third-party sellers. A ruling against the company could open the door to one of Britain’s largest ever consumer compensation awards.

It also comes at a delicate time for the company’s regulatory standing in the UK. Doug Gurr, Amazon’s former UK boss, was earlier this year appointed to lead the Competition and Markets Authority, the very watchdog that has previously examined its pricing practices.

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Amazon faces multibillion-pound legal action over alleged price inflation for UK shoppers

The Giro d’Italia generated $36.1 million in sponsorship revenue in 2025, a sharp fall from the previous year as the number of brand partners dropped, according to new figures from GlobalData.

The latest Post Event Analysis – Giro d’Italia 2025 shows that the race, which ran from 9 May to 1 June between Durrës, Albania and Rome, Italy, secured 54 sponsors this year compared with 65 in 2024. The decline in backing meant overall sponsorship value fell by $12.5 million year on year.

Thirteen new companies came on board for the 2025 edition, including Red Bull, Suzuki, Tudor and Continental, alongside firms in food, clothing and IT services such as Conad, Sanmarco Informatica and PharmaNutra. However, 24 brands failed to renew their partnerships from last year.

Olivia Snooks, sports analyst at GlobalData, said: “The 2024 Giro d’Italia accumulated an estimated $48.6 million in sponsorship from 65 companies. In comparison, the 2025 edition had 11 fewer sponsors and saw a notable decrease in annual sponsorship revenue.”

The overall prize purse for this year’s event was estimated at €265,668 ($308,334), collected by winner Simon Yates.

The Giro’s broadcasting arrangements also contributed to challenges for fan engagement. Discovery, which owns Eurosport, is in the final year of a five-year global rights deal valued at around $90 million, or $18 million annually. However, with Eurosport discontinued in the UK, coverage has shifted to TNT Sports via the Discovery+ platform, raising subscription costs for British fans.

Snooks noted: “UK viewers faced a significant change in accessing live coverage, and the shift to Discovery+ with TNT Sports has affected accessibility for cycling fans.”

Despite the sponsorship shortfall, the race remains one of cycling’s marquee events, drawing crowds of spectators along its route, where roadside viewing is free. Organisers RCS Sport and partners such as Sportive Breaks also market premium hospitality packages, priced from around $220 at stage starts to $700 at grandstand finishes.

Attendance figures for 2025 have not yet been released, but host cities typically record a surge in visitor numbers during stage starts and finishes, underlining the event’s broader economic impact.

The challenge for organisers now will be to balance the Giro’s enduring global appeal with a more sustainable sponsorship and broadcasting model as competition for sports marketing budgets intensifies.

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Giro d’Italia 2025 sponsorship revenue falls to $36.1m as race loses 11 partners

WH Davis, the UK’s last surviving independent railway wagon manufacturer, is set to expand its workforce by a quarter after securing a €44 million export contract with Ireland.

The Derbyshire-based company, part of Buckland Rail, will supply 150 freight wagons to Iarnród Éireann, Ireland’s state-owned rail operator, in a deal supported by UK Export Finance (UKEF). Production is due to begin at its Shirebrook facility, with deliveries scheduled to start in 2026 and the full order completed by the end of 2027.

The agreement, enabled through UKEF’s Bond Support Scheme, marks WH Davis’s return to exporting after two decades. Barclays, the company’s long-standing banking partner, issued the required capital after UKEF guaranteed 80% of the contract bond.

The contract is the first under a ten-year framework agreement that could eventually see as many as 400 wagons delivered. Management said the deal would allow WH Davis to increase its headcount from 80 to 100, creating new jobs in an ex-mining village where skilled employment opportunities have been scarce.

Andy Houghton, managing director of WH Davis, described the deal as a “landmark export contract” and said UKEF’s backing had provided the confidence and liquidity to grow. “We are proud to be shaping the future of rail freight. This is a significant milestone for WH Davis and reaffirms the strength of UK manufacturing on the international stage,” he said.

The new wagons will offer a third more carrying capacity than Ireland’s existing fleet and operate at speeds of up to 110km/h, compared with 80km/h at present. The upgrade is expected to support the Irish government’s efforts to expand rail freight as a greener alternative to road transport.

Gareth Thomas, Minister for Exports and Small Businesses, said the deal underscored the growth potential of British manufacturers. “WH Davis’s breakthrough into this market is a perfect example of how the right support can help unleash this potential,” he said. “Through our Plan for Small Businesses and Trade Strategy we’re removing barriers for SME exporters, creating high-paying jobs and supporting local economies.”

Tim Reid, chief executive of UKEF, said the deal demonstrated “the transformative power of export finance in revitalising local manufacturing and creating skilled jobs in communities like Shirebrook”.

Barclays has provided €28.7 million of UKEF-backed bonding facilities over three years to support the project. James Guthrie, UK head of mid-corporate trade at the bank, said the arrangement gave WH Davis “the flexibility and confidence to deliver on this contract and pursue further growth in Europe”.

The contract is seen as a major boost for the UK’s rail supply chain and could pave the way for WH Davis to target new European and international markets. Discussions are already under way for a second phase of orders, alongside potential product development.

Founded in 1908, WH Davis has remained a rare survivor of Britain’s once-dominant rail engineering sector. Its latest success comes amid renewed political focus on boosting exports and manufacturing as part of the government’s industrial strategy.

UKEF’s latest annual report shows it provided a record £14.5 billion in new financing in 2024/25, supporting 667 companies and up to 70,000 jobs. Ministers have billed such deals as central to their “Plan for Change” to stimulate growth and raise living standards across the UK.

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WH Davis secures €44m export deal and plans 25% workforce expansion