News: "Multiple companies" interested in Speciality Steel business

Multiple companies are interested and have come forward regarding the operations of Liberty Speciality Steels UK, the Minister for Industry has confirmed.

A Parliamentary debate took place this week over the insolvency of the company following the approval by a judge of an application from creditors to place the business, previously part of Liberty Steel and GFG Alliance, into compulsory liquidation.

Speaking during the debate, Minister for Industry, Sarah Jones said: "We believe that this viable industry is languishing unnecessarily. The Government will provide the right support through interventions such as our energy reduction measures, and work with the official receiver.

"Multiple companies are interested and coming forward, and we need to establish how viable those offers are and what the best situation is. Of course, the official receiver must think of the best outcome for the creditors, but we take a close interest in that.

"I very much believe that the steelmaking sites in Rotherham, Stocksbridge, Brinsworth and Wednesbury have a future. I am keen to see them return to production, but that has to be achieved through private investment by an owner who can invest in the workforce and in the future of the business so that they put it on a long-term, sustainable footing. We know that the business environment has not been good enough for the UK’s steel industry, which is why we have already made substantial changes to secure a stronger future for it."

Liberty bosses said after the judge's decision that it would "continue to advance its bid for the business in collaboration with prospective debt and equity partners."

Advertisement
Parliamentary documents also show that the Department for Business and Trade has provided the Official Receiver with a letter of comfort and a letter of indemnity which effectivley covers costs.

The Official Receiver will now carry out the proper performance and duties expected as the official receiver and liquidator of the company. This includes overseeing the winding-down of the company’s business and affairs and distributing assets of the company in the ordinary course as the official receiver's duties as liquidator.

But the governmnent is also covering the cost of investigating the cause of failure and identifying any asset recoveries against the company, current/former directors of the company, and any other parties.

The update added that: "it is not possible at this stage to accurately quantify the value of the overall funding requirement with relation to the letter of comfort and letter of indemnity" but costs are expected to be reported to Parliament when they are more accurately known.

Jones added: "The company has faced severe financial and operational difficulties since 2021. Liberty Speciality Steels had failed to file accounts for over six years — a failure that has led to a separate prosecution by Companies House of its parent company. I am sure that the official receiver will want to gain a better understanding of the company’s business and the conduct of its directors leading up to the liquidation. I also inform the House that the director of the company is currently under investigation by the Serious Fraud Office for suspected fraud, fraudulent trading and money laundering.

"In the case of Liberty Steel, the lack of transparency, the legal and financial risks and the complete absence of reliable corporate information meant we had no credible route to act before insolvency.

"The official receiver will look at what is true and what is not, because there have not been any accounts published for many years. They will establish what has happened. The Secretary of State has written to the Insolvency Service today to ask it to take special account of the Serious Fraud Office investigation, and to pass over any information it uncovers to the Serious Fraud Office, so that it can do its work."

The Rotherham site includes two electric arc furnaces (EAFs). The first casts at Aldwarke were produced in 1964. The N-Furnace, which was installed in 1993, is the larger of the two EAFs and was mothballed in 2015 at the height of the global steel crisis. Liberty reignited the N-Furnace in 2018 and the 800,000-tonne-a-year capacity furnace turns scrap metal into specialised steels for uses such as vehicle gearboxes or aircraft landing gear.

The UK company was hit by the collapse of Greensill, a specialist in invoice financing that operated with less regulation than the traditional banks. In its current state, Aldwarke is producing only minimal volumes of steel and with many employees still on furlough. "We want to turn that around," the minister added.

Images: Google Maps / Liberty Steel

Read more...

News: Further reaction to Liberty Steel liquidation

Last week a judge approved an application from creditors to place Speciality Steel UK Ltd (SSUK) into compulsory liquidation.

An Official Receiver has been appointed as liquidator with Teneo Financial Advisory Limited appointed as Special Managers of the company, previously part of Liberty Steel and the GFG Aliiance, to assist the Official Receiver with the liquidation.

The court heard that the Department for Business and Trade had been preparing in the event of an Official Receiver being appointed, and was prepared to take control of SSUK’s affairs.

The company has operations in Rotherham and Sheffield. South Yorkshire's Mayor, Oliver Coppard, said that the news was "difficult, but offers the opportunity for clarity and a path forward. There is and will continue to be a period of uncertainty for workers at Liberty’s two sites in South Yorkshire.

"So I welcome the positive comments from the Secretary of State for Business in the wake of the Court’s decision.

"I now want to see swift progress from government to safeguard the unique steel making capabilities we have here in our region. I will be seeking a conversation with Ministers as a matter of urgency and will do everything I can to make sure that workers at Liberty Steel and the steel industry that is so integral to our identity, have the brightest possible future."

Secretary of State for Business, Jonathan Reynolds, has described the steelworks and its workers as important strategic assets for the UK, and wants them to have a strong future as part of the UK's overall steel strategy.

Advertisement
Liberty employs around 1,450 people within the Speciality business and provides a wide range of specialist steel products.

Speciality Steels provides vital steelmaking capacity in aerospace, defence and power generation. The steel made by Liberty Speciality Steels can be found in vessels including aircraft carriers, military aircraft components and defence systems, landing gear, controls and in components for oil and gas, power generation, rail and beyond.

UK Steel Director General, Gareth Stace, said: “UK Steel welcomes the Government’s recognition of the importance of the Liberty Speciality Steel assets and hopes that a new owner is found quickly and can inject the investment and working capital required to return production volumes to previous levels.

“The assets produce high quality, specialist steels that serve high value markets. The low production levels of recent years have left significant holes in the domestic supply chain that have been filled by imports. We hope to see these holes quickly filled by UK-made steel.

“The Government must continue to push on trade defence and reducing the burden of energy costs so that the Speciality Steels business, and the rest of the UK steel ecosystem, is sustainable, and steel workers will in future be spared from the limbo state that the employees in South Yorkshire have endured.”

Community General Secretary Roy Rickhuss CBE said: “This is an extremely worrying time for our members at Liberty Steel, but the Government’s intervention must mark a turning point to deliver certainty for these strategically important businesses.

“Crucially, jobs must be protected throughout any restructuring and transition to new ownership. Steelworkers at Liberty Steel are highly-skilled and hugely experienced; they are quite frankly irreplaceable and will be critical to delivering future success for the businesses.

“As a first priority wages must be paid and the outstanding twelve months of pensions contributions must be secured. Resolving pay and pensions is urgent and we are closely monitoring the situation, but in talks with senior officials we have received firm assurances that both matters are in hand.

“We welcome the Government’s intervention which is yet another demonstration of our Labour Government’s commitment to delivering for steelworkers and our vital foundation industry. However, in taking control of the business the Government has assumed responsibility for our livelihoods and our communities, and we will of course be holding them to account.”

Sheffield City Council Leader, Cllr Tom Hunt, said: "This will be a difficult period of uncertainty for the workers at Liberty Steel and we appreciate that the news yesterday will have caused concern.

"The Government have agreed to step in to safeguard jobs in the short-term. We hope this brings assurance for those who work there, as well as for those who live in the areas around Liberty Steel’s sites and rely on the steelworks for their own businesses.

"The steel industry is a big part of Sheffield’s past, present and future. We continue to work proactively with all stakeholders to safeguard the future of Liberty Steel, and the industry as a whole in Sheffield and South Yorkshire. We are committed to work alongside the Mayor of South Yorkshire Oliver Coppard and Cllr Chris Read and our colleagues at Rotherham Metropolitan Borough Council to ensure a viable path forward can be found for Liberty Steel and its dedicated staff."

Liberty Steel website

Images: Google Maps

Read more...

News: Speciality Steel in administration, "government committed to not letting it fail"

The latest from the High Court indicates that Liberty Steel's owners are losing its battle to keep hold of its Speciality Steel business.

Earlier this week a judge adjourned a case regarding a winding-up order regarding Speciality Steel UK Ltd (SSUK), which has operations in Rotherham and Stocksbridge.

The judge in the case asked for more information on what would happen under two scenarios - if SSUK was wound up, and if a pre-pack administration was to take place. The second scenario is likely to be opposed by creditors.

But now a different judge has approved an application from creditors to place the steel business into compulsory liquidation.

A winding up petition is issued to the courts by those seeking to recover money that they are owed. The judge agreed with the creditors and a winding-up order was made on August 21.

The court heard that the Department for Business and Trade has been preparing in the event of an Official Receiver being appointed, and was prepared to take control of SSUK’s affairs.

The Guardian reported the judge's decision, quoting Mr Justice Mellor as stating that: “It is quite clear that there are special managers lined up who have the support of the government. I consider by far the preferable approach is to make a winding-up order.”

Advertisement
Official Receiver, Gareth Jonathan Allen, has been appointed as liquidator. Teneo Financial Advisory Limited has been appointed as Special Managers of the company to assist the Official Receiver with the liquidation.

The Official Receiver will wind-up the company in accordance with his statutory duties. He also has a duty to inquire into the cause of the company’s failure and conduct of current and former directors. 

Creditors and subcontractors are being urged to get in touch.

The UK company was hit by the collapse of Greensill, a specialist in invoice financing that operated with less regulation than the traditional banks.

Court documents from February regarding Greensill creditors and SSUK show that the Liberty company has a debt with them of approximately £289m. The debts owed to Greensill creditors in respect of the activities of the GFG Group amount, in broad terms, to some US$4 billion.

Sarah Champion, MP for Rotherham, said: "All I can say is; I’ve been in conversation with the Government for months about the future of this strategic and profitable business, and they are committed to not letting it fail. You have my word that I will do all in my power to make sure that is the case."

Charlotte Brumpton-Childs, GMB National Officer, said: “This is another tragedy for UK steel - and the people of South Yorkshire - this time brought on by years of chronic mismanagement by the owners.

“But this represents an opportunity for the Government to take decisive action, as it did with British steel, to protect this vital UK industry.”

Cllr. Chris Read, leader of Rotherham Council, said on Threads: "The end of a long rollercoaster period of Liberty ownership brings uncertainty but also the opportunity of fresh beginnings with more solid plans. Glad the government has heeded our urging and taken over operational costs while those plans take shape."

Liberty Steel website

Images: Google Maps

Read more...

News: Rotherham ranked as best commuter town in the UK

Rotherham has come out on top as a place to live when it comes to value, commute, and quality of life, according to a new survey.

Pepper Money, a UK specialist mortgage lender, is highlighting that commuter towns are coming under the spotlight for UK professionals trying to strike the right balance between affordability and accessibility.

The firm's survey ranks areas on things like affordable housing, improved quality of life, and a manageable daily commute.

The data has revealed a clear northern advantage — with Sheffield emerging as the most commuter-friendly hub in the country. The South Yorkshire city claims three of the top 10 spots, thanks to a combination of affordable housing, accessible rail links, and growing local economies.

At number 1 on the list of commuter towns is Rotherham with an overall score of 358 out of 469.

The borough's standout stats include average house prices of £193,000 and average rents of £653. Median salaries are £34,258 and for those living close to Rotherham Central station, commuting time to the nearest city is 17 minutes at £2.10 - the lowest price on the list.

It is Rotherham's quality of life score that ensures it comes out on top. A score of 7.9 is the highest of all of the towns in the top 10.

Advertisement
A spokesperson for Pepper Money, said: "Rotherham tops the list with an impressive score of 358 out of 469, edging out strong contenders like Beeston (Nottingham) and Penarth (Cardiff). Close behind is Dronfield, another Sheffield-adjacent town, with 324 points, and Barnsley, which ranks 8th with a solid 296. These towns benefit from fast commute times into Sheffield, reasonable rail fares, and property prices far below the UK average, making them increasingly attractive for professionals, families, and first-time buyers alike."

Opportunities for commuters living in Rotherham could also open up further with the potential return to the mainline.

Proposals are progressing for a new integrated station and a tram-train stop on land at Forge Way, Parkgate that aims to transform the regional and national connectivity of Rotherham.

Station opening has been pencilled in for "late 2030" creating additional rail services and faster journey times to the adjacent centres of Sheffield, Doncaster and Leeds whilst adding direct and quicker connections to key markets in the North West, the Midlands and the North East, as well as ports and airports.

Rothbiz reported last month that Rotherham had the fastest-growing sub-regional economy in the North, with a 63.9% increase in productivity between 2004 and 2023.

Pepper Money website

Images: RMBC

Read more...

News: More South Yorkshire businesses set for energy efficiency boost

A project that has supported businesses across the region to cut emissions, reduce costs, and boost efficiency has been expanded thanks to an additional £1.6m investment.

The Low Carbon Project provides dedicated support and a source of funding to help local businesses reduce their energy consumption and carbon emissions but has previously seen a slow take up in Rotherham.

Businesses benefit from fully funded support, including on-site energy surveys and access to capital grants for improvements such as low-energy lighting, insulation, and efficient heating systems.

In the first phase, the project supported 223 businesses with £3.2m in funding. The second phase will run until March 2026 and aims to support a further 144 small and medium-sized enterprises (SMEs) across Sheffield, Barnsley, Doncaster, and Rotherham.

Sheffield City Council is leading the initiative, with the support of South Yorkshire’s other local authorities who are helping to deliver this support across the entire region.

Advertisement
Erodatools, a second-generation precision engineering company based in Penistone, were supported by the Low Carbon Grant to install 240 solar panels on the roof of the factory it has owned for 52 years.

The new 102kwp photovoltaic system will generate more than 72,000 kwh green energy a year which will cut their annual electricity bills by an estimated £17,000 and reduce their carbon emissions by 14.07 tonnes a year.

The project is part-funded through the UK Shared Prosperity Fund via the South Yorkshire Mayoral Combined Authority.

Rotherham businesses should contact Rotherham Investment and Development Office for assistance.

Last year Rotherham Council reallocated £43,032 from the Low Carbon project to a project which aims to improve business productivity and digital innovation through the provision of capital or revenue grants. A council paper confirmed that: "The Low Carbon project continues to have difficulties in committing grants, whereas the Productivity project has a strong pipeline of applications that can complete quickly."

Councillor Mohammed Mahroof, Chair of the Economic Development, Skills and Culture Committee at Sheffield City Council, said: "We know many business owners want to reduce energy costs and do their bit for the planet, but it can be difficult to plan how to do this effectively, and to find the money to pay for carbon-saving measures.

"That is where this brilliant scheme can help. Specialist advisors will help businesses identify where they can make changes that save budgets and tackle the climate crisis. Low carbon grants give businesses the financial support they need to make changes that will reduce energy costs and carbon emissions."

Low Carbon Project website
RiDO website

Images: RiDO

Read more...

News: JELD-WEN announce plans to relocate UK facility

JELD-WEN, a major UK door manufacturer with a facility in Rotherham, has announced plans to move to a new state-of-the-art facility to support its continued growth.

JELD-WEN is one of the world's leading manufacturers and distributors of quality timber windows, external and internal doors, patio doors and stairs. It employs hundreds at the JELD- WEN UK production facilities at Woodhouse Mill, just inside the Rotherham border.

Having invested millions of pounds in production equipment over the last decade, the firm appears to have outgrown the Retford Road site and has signed a lease for Unit 3A, a new 294,000 sq ft state-of-the-art industrial and logistics facility at PLP Bessemer Park in Sheffield.

The company said that the new facility will allow it to obtain operational efficiencies in a modern, sustainable base, supporting its continued growth in the UK.

Advertisement
Dom Gaffey, Vice President and General Manager, JELD-WEN UK, said “Securing this facility at PLP Bessemer Park is an important milestone for JELD-WEN UK. While the timeline for the relocation is still being finalised, this investment demonstrates a clear commitment to investing in the UK market, how we serve our customers, and how we continue to operate responsibly as an employer and community partner. The focus remains on sustaining the strong relationships JELD-WEN UK has with its customers and partners throughout this process.”

Bringing the development to 100% occupancy, this lease marks the final chapter in a series of successful lettings at Bessemer Park in Tinsley, all secured with blue-chip occupiers and with a strong emphasis on the manufacturing and advanced engineering sectors.

Hugh Chesterton, Development Director at PLP, commented: “PLP has taken a former steelworks brownfield and created a commercial park fit for ‘next generation’ manufacturing and logistics occupiers. We’re proud to welcome JELD-WEN to PLP Bessemer Park and to have completed this flagship regeneration project at full occupancy. The calibre of tenants we’ve attracted—each a blue-chip business with a strong manufacturing footprint—underscores the enduring appeal of Sheffield as a location for forward-looking industrial operations.”

Knight Frank, CBRE and CPP represented PLP. JELD-WEN UK were represented by JLL.

Founded in 1960, JELD-WEN has its global headquarters in Oregan, USA. It employs approximately 16,000 people across North America and Europe.

JELD-WEN UK website

Images: PLP

Read more...

News: Liberty Steel court case adjourned again

A court case that could have led to Liberty's Speciality Steel business going into insolvency has been adjourned again.

A winding-up order was due to be decided this week regarding the company which has operations in Rotherham and Stocksbridge.

An initial hearing in May was adjourned to July, with discussions ongoing to keep the business going - including a potential sale of the business.

Marie Tidball, MP for Stocksbridge confirmed that the case has been adjourned again.

Earlier this year, Liberty pulled a restructuring plan before it could be judged in court as it was apparent that it did not have the backing from creditors.

Liberty signed a new framework agreement in April 2024 with its major creditors that would enable it to consolidate its UK steel businesses "under a new entity with a simpler structure, a strong balance sheet and greater access to third party finance and investment."

In November 2024, Liberty sought approval through the courts for the restructuring which would reduce the company's debts but needs the approval of the majority of creditors.

The UK company, part of Sanjeev Gupta's GFG Alliance, was hit by the collapse of Greensill, a specialist in invoice financing that operated with less regulation than the traditional banks.

Court documents from February regarding Greensill creditors and Speciality Steel UK Ltd (SSUK) show that the Liberty company has a debt with them of approximately £289m. The debts owed to Greensill creditors in respect of the activities of the GFG Group amount, in broad terms, to some US$4 billion.

Advertisement
One creditor is Harsco, which operates a large site in Rotherham under its SteelPhalt brand. Court documents show that Harsco issued a winding-up petition against Liberty in 2024 in an effort to recover £4m that it is owed, along with machinery "for which it has not been paid and which it would like back."

The Caseboard website has now added Greensill Capital (UK) Limited (In Administration) to the list of creditors supporting Harsco with its winding-up petition against Liberty.

Marie Tidball, MP for Penistone and Stocksbridge, said: "I hope all options are on the table to secure our Stocksbridge site, whilst parties reach a conclusion at the next stage of the court case. We cannot see this nationally important asset and its skilled workforce broken up longer term.

"My immediate priority now will be securing pensions for Stocksbridge steelworkers, as local workers have faced 10 months without employer pension contributions. I raised the need for urgent reassurances in respect to pension payments in the House of Commons earlier this week.

"I will be writing urgently to Aviva, The Department for Business and Trade, the Department for Work and Pensions and the Pension Regulator, to ensure all Stocksbridge steelworker pensions are secured.

"I will always continue to fight to protect our site and its jobs, as well as its strategic capability."

In parliament, the MP discussed the uncertainty at Liberty which "means that pension contributions have not been paid to the skilled workforce for 10 months, causing significant worry and anxiety for 600 local steelworkers."

Speaking to The Guardian, a Liberty Steel spokesperson said: "Today’s resolutions and adjournment provides additional time to finalise options for SSUK while continuing our broader debt restructuring efforts.

"We remain committed to identifying a solution that preserves electric arc furnace (EAF) steelmaking in the UK — a critical national capability supporting strategic supply chains.

"SSUK has been engaged in complex debt restructuring since the collapse of Greensill Capital in 2021, which significantly constrained its access to capital.

"Throughout Liberty’s ownership, the shareholder has consistently supported the business, contributing nearly £200m in loss funding and payroll over the past four years — even during periods when significant portions of the business remained non-operational."

Liberty Steel website

Images: Google Maps

Read more...

News: Castings Technology secures significant investment

An £18m investment package is enabling Rotherham-based Castings Technology to accelerate its steep growth trajectory by moving into new premises in Sheffield, enhancing one of the most advanced foundries in the world and the only commercial titanium facility in the UK.

The company produces specialised investment castings from a range of alloys for some of the most demanding advanced manufacturing companies on the planet. The deal supported by Castle Square Corporate Finance, the same Yorkshire advisers who advised them on a MBO four years ago.

Currently based on the Advanced Manufacturing Park (AMP) in Rotherham, the company is moving to its own dedicated 195,000 sq ft production facility on Shepcote Lane in Sheffield.

Chairman, Kevin Parkin said “Whilst continuing to lease the building and equipment from the AMRC was the correct option in 2021 when the Management Buy-Out completed, due to our substantial growth, it is now necessary for the company to move to its own, larger premises and with new, world-class equipment”.

Castings Technology, which celebrated its centenary in 2023, underwent a management buy-out in 2021 which saw MD Richard Cook and Chairman Kevin Parkin take the reins.

Since then, the company has achieved a 225+% increase in sales and significantly increased its skilled staff to more than 100, with an order book that shows no signs of slowing.

When seeking the current investment, the board turned to Kevan Shaw, Managing Partner of Castle Square Corporate Finance, who was key to the successful MBO, who was able to secure an investment facility of £15m from Zachary Asset Holdings for Castings Technology.

Kevan said “I was thrilled to receive the call from Kevin and Richard to manage this investment deal after working with them on their MBO back in 2020/21. We had several interested parties but Zachary Asset Holdings were the best fit. This deal secures Castings Technology’s long-term future with a move to its own facility.”

Robin Haller of Zachary Asset Holdings added “We are extremely excited to partner with Castings Technology and help to support their growth in Sheffield. We believe their skills and technology are world-class and will benefit both the region and the country.”

The new site, formerly a Whitbread Brewery bottling plant, is undergoing a multimillion-pound landlord-funded refurbishment to enable Castings Technology to install its new equipment.

Much equipment is already on order, due to long lead times, such as a new Vacuum Arc Remelting Furnace and Heat Treatment Furnace costing over £6.5m and £1.5m respectively.

Castings Technology has its own Metrology, X-Ray, NDT, and Metallurgical Laboratory on site which complement its world leading processes.

Advertisement
Richard Cook, MD added “We have developed a strong growth strategy, and we will continue to collaborate with our clients and other institutions to help us improve operational efficiencies. The move delivers a sound platform from which Castings Technology can offer continued supply chain resilience to customers’ future and current programmes.”

Castings Technology has had to find new ways of recruiting the best talent and become an employer of choice in the region. It has a sustainable, diverse, and committed workforce and is dedicated to increasing apprenticeship numbers over the coming years.

It is partnering with local schools and the UTC in Sheffield, providing work experience placements and encouraging more interest in manufacturing to develop engineering apprenticeships. It is also a committed partner of the Better Learners, Better Workers scheme run, in conjunction with The Company of Cutlers in Hallamshire, by Sarah Ward, Managing Director of Ambition Unlimited.

Wake Smith Solicitors’ Rebecca Robinson, Director and Head of Corporate, provided legal advice to the management team including dealing with due diligence information requests and negotiating the investment documentation, facilities agreement and security documentation. Mark Cooper of BHP advised on tax matters.

Rebecca Robinson said “We are proud to have supported Castings Technology through this significant funding development. The company has outgrown its facilities and this investment allows it to move forward, and further its potential to become one of the largest Titanium foundries in the world.”

The British Cast Iron Research Association was formed in 1923 and the British Steel Casting Research Association was formed in 1953. These two membership organisations merged in 1996 to become Castings Technology International Ltd.

In 2006, Castings Technology relocated the bulk of its facilities to the AMP after securing EU funding to construct and equip a 54,000 sq ft workshop.

In 2013 ownership of these facilities was transferred to the University of Sheffield where funding was secured to expand the facility to 13,000 sq ft and to house Europe’s largest titanium melting facility.

The new facility is expected to be operational in the second half of 2026.

Castings Technology website

Images: Castings Technology

Read more...

News: Sheffield-Rotherham link road still under consideration

A new link road aimed at opening up land for development whilst reducing congestion around the M1 in South Yorkshire is still under consideration by the Government.

Last week the Department for Transport published a list of transport investment schemes that would (and wouldn't) be covered by the recent spending review.

One project listed as being "under consideration" is the Sheffield Innovation Corridor Road.

The project is described by the DfT as "a new 3.7km transport and active travel corridor broadly parallel to the M1 between J34 (s) to J33 and running from the A630 at Catcliffe to the A6109 at Meadowhall."

An application for the project was made to the DfT's Local Large Major (LLM) fund in July 2016 and £1.4m was secured to work up a business case.

Linked to the innovation district idea and subsequent investment zone designation, the scheme aims to facilitate economic growth by reducing existing network capacity constraints by improving connectivity and capacity to, and within, key development sites in Sheffield and Rotherham.

A Sheffield city region report from 2020 explained: "A significant constraint on achieving the economic growth aims of the Advanced Manufacturing Innovation District (AMID) is the capacity of the highway network in the area between junctions 33 and 34 of the M1.

"There are already significant capacity issues, caused partly by the interaction of traffic on the local and the Strategic Road Network (managed by Highways England) at the motorway junctions. There is a limit to what can be achieved through localised improvements.

"The total project value is estimated to be around £100m."

Advertisement
Effectively the scheme links Waverley in Rotherham with Meadowhall in Sheffield so that journeys can be made without using the M1 or its junctions. The route from the Advanced Manufacturing Park (AMP) would pass the emerging plans for Runway Park on the site of the former Sheffield Airport, development sites at Tinsley like Bessemer Park, the River Don District and Forgemasters' new site south of Meadowhall.

Options already looked at include new and/or upgraded highways and some more significant infrastructure solutions including bridges and tunnels.

Similar plans failed to materialise. The Waverley Link Road was scrapped after Rotherham and Sheffield Councils could not agree on a route. A sourthern route of the Bus Rapid Transit (BRT) scheme was shelved following government cuts. The northen route saw a new link road built passing under the M1 connecting Templeborough to Meadowhall South.

Images: Google Maps

Read more...

News: South Yorkshire shunted into sidelines as MML electrification paused again

Sheffield is set to remain the largest city in the UK without electrified railways after the Government announced a pause of the electrification of the Midland Mainline (MML) in the North and Midlands.

The key route connects London St Pancras and Sheffield via the East Midlands. Working north, Network Rail had previously envisaged reaching Sheffield at the end of 2020 but work was paused at Kettering and effectively cancelled when plans were announced for new bi-mode intercity trains that are able to run on both electrified and non-electrified lines.

Work reportedly continued on the plans but DfT documents relating to the recent spending review show that the off-and-on project has been paused again.

The previous government's Network North document proposed an extension of the electrification of the MML from Sheffield to Doncaster and Leeds (potentially through Rotherham and its planned new station). Electrification to Sheffield was included in the proposition set out in Lord Blunkett's Yorkshire’s Plan for Rail.

Progress on the MML is in contrast to the upgrade of the East Coast Mainline (ECML) that links Doncaster and London which completed in 2020 and paved the way for the introduction of new trains, such as LNER’s Azuma and Hull Trains’ Paragon fleets.

Government documents confirm: "The next phase of electrification [phase 3 to Sheffield] of the Midland Main Line has been paused. Due to rising costs and the substantial electrification that has already been delivered, we are prioritising our funding on other schemes over the Spending Review period. We will continue to keep the potential for full electrification of the route under review as part of our plans to decarbonise our railways and as funding becomes available in future."

The South Yorkshire Mayoral Combimned Authority says that it means that Sheffield will be relying instead on older, more polluting diesel trains that are slower, less reliable, and worse for the environment.

Advertisement
South Yorkshire’s Mayor Oliver Coppard said: “There’s frustration in the region. After decades of national underinvestment in our transport network, we’re having to wait longer for vital rail improvements that would create jobs, opportunities and economic growth. It feels like one step forward and two steps back.

“We were told HS2 would come to Sheffield. That was cancelled. Now electrification of Midland Main Line is being paused. All we’re asking for is a fair deal.

“I’ve raised my concerns directly with the government, and I’ll keep doing so. South Yorkshire deserves a modern, reliable, and sustainable transport network - and I won’t stop fighting for it.”

The region previously missed out when HS2 to Sheffield was one of the first legs to be cancelled which would have reduced the journey time from Sheffield to London from 120 minutes to 87 minutes, with additional seating capacity on brand new electric trains through electrification of MML.

In the wake of the scaling back of HS2 and Northern Powerhouse Rail (NPR) Rothbiz has previously highlighted some alternative routes and the options most likely to serve Rotherham being an upgrade of the Erewash Valley line and the "Old Road" between Clay Cross Junction and Masborough Junction. An upgrade and electrification of the route north of Sheffield to Leeds has also been looked at, as has a new high speed line between broadly Rotherham and Leeds, known as the "M18 Short Alignment" that would connect to the northern leg of the previous HS2 Eastern leg into Leeds.

The 2025 Spending Review set departmental budgets for day‑to‑day spending until 2028‑29, and until 2029‑30 for capital investment. Whilst committing £92 billion to the DfT, and agreeing more than 50 road and rail upgrades, very little will impact South Yorkshire directly.

Images: Google Maps

Read more...

News: Botham Accounting opens in South Yorkshire

Fast-growing advisory firm Botham Accounting has launched a new South Yorkshire office, led by Tim Baum-Dixon, former CEO of Kingswood Allotts. The office will support owner-managed businesses across Rotherham, Doncaster, Barnsley and surrounding areas with audit, tax and financial advisory services.

The move follows Botham’s recent London expansion and reflects wider growth – including its debt advisory arm, Botham Capital, which will also operate from South Yorkshire.


“I’m proud to be back supporting South Yorkshire businesses with strategic, hands-on advice,” said Tim Baum-Dixon.

“This expansion is a testament to the trust our clients place in us and the hard work of our incredible team,” said Andrew Botham, CEO of Botham Accounting. “Our whole team are excited about what the future holds and look forward to supporting even more businesses across the UK.”

Botham Accounting now has offices in Nottingham, London, and Sheffield. It said that the growth reflects its dedication to delivering more than just compliance – offering proactive advice that empowers clients to navigate challenges and seize new opportunities.

Advertisement
Rothbiz reported in 2022 that Rotherham accountancy firm, Allotts, had been acquired by Kingswood Holdings Limited, a London Stock Exchange-listed firm registered in London and services circa 15,900 clients from a growing network of offices in the UK.

Tim Baum-Dixon FCA is a Chartered Accountant and experienced business advisor. He was previously Chief Executive of Kingswood Chartered Accountants (Kingswood Allotts), where he led firm-wide growth and restructuring. He is the Conservative Borough Councillor in Rotherham for Anston and Woodsetts and lives in South Anston with his wife and three daughters.

Botham Accounting

Images: Botham Accounting

Read more...

News: Development fund supports millions of sq ft in floorspace and thousands of jobs in South Yorkshire

A publicly owned property fund is set to invest a further £34.8m to develop more business and create more jobs in the South Yorkshire Investment Zone.

The South Yorkshire JESSICA fund dates back to 2012 and has previously supported job-creating commercial property schemes through grants and loans. It has been used to kickstart Rotherham developments on the Advanced Manufacturing Park (AMP) and at Beighton Link.

To continue the financial support, the South Yorkshire Mayoral Combined Authority (SYMCA) has agreed to contribute £3m towards a total scheme cost of £34.8m to establish a flexible fund to encourage and accelerate development in the Investment Zone (IZ).

Primarily focused on connecting Sheffield to Rotherham (where the research assets such as The University of Sheffield Advanced Manufacturing Research Centre (AMRC) are already located), the zone is expected to create 8,000 new jobs and bring in £1.2bn worth of private investment by 2030.

IZ status provides South Yorkshire with up to £160m over ten years which can be used to offer investors, developers and start-ups a combination of targeted support and financial interventions to start, scale up and relocate their businesses.

A Sheffield Council paper explains: "In order to facilitate the growth of indigenous businesses and encourage inward investment the region needs to have a rolling supply of readily available, high quality and affordable commercial property. However the region still faces a number of market failures that means that the costs associated with speculative development often exceed the value to the developer. As a result, public funding in the form of subsidised loans, rental loans (guarantees) and first loss loans (grants) are required to stimulate development and facilitate economic growth."

Advertisement
A SYMCA paper adds: "Several developments have been identified within or immediately adjacent to the Spatial Core and Opportunity sites and these will be progressed in the first instance to bring forward speculative commercial floorspace for office or light manufacturing activity.

"The flexible fund will look to allow the SY JESSICA to provide finance through several routes to stimulate development including commercial loans, sub-market loans (including first loss), rental guarantees and, in cases of last resort, grant."

Around £22m is currently uncommitted. However there is a current pipeline of investments consisting of a eight developments seeking £25m in total (of which over £5m is in the form of grants).

Papers show that three potential sites have so far been identified for funding. "First Loss Loans" (grants) could support the construction of three developments - Norfolk Street in Sheffield City Centre, Dorehouse in Sheffield and at Junction 36 in Barnsley.

The fund was initially capitalised with £23m of external funding which was used for commercial loans. Since 2015 the fund has been successful in securing an additional £0.5m from the government, a £15m loan via the precursor of the Mayoral Combined Authority, which has since been repaid with interest, and two additional grants from the authority that have been used in the form of loans and grants with a value of £15m. In addition, the fund has established a relationship with the South Yorkshire Pension Authority which has seen several joint investments in the region.

Since the start of the fund, 25 investments have been made (23 complete and repaid), totalling £76m. It means that nearly two million sq ft of floorspace has been built, accommodating 7,000 jobs.

Images: Harworth Group

Read more...

News: Liberty lurches from one legal battle to the next over insolvency

Liberty Speciality Steel withdrew a restructuring plan put before the courts just before a judge was due to decide if it could go ahead.

With a lack of agreement with key creditors, lawyers representing them have previously said it was unlikely to be sanctioned anyway due to the money owed.

After pulling its "Part 26A" restructuring plan, as reported by Global Restructuring Review, Liberty Speciality Steel, which has operations in Rotherham and Stocksbridge, is understood to be acting quickly to consider alternative options.

Rothbiz reported in April last year that Liberty had signed a new framework agreement with its major creditors that would enable it to consolidate its UK steel businesses "under a new entity with a simpler structure, a strong balance sheet and greater access to third party finance and investment."

In November 2024, Liberty sought approval through the courts for the restructuring which would reduce the company's debts but needs the approval of the majority of creditors.

The UK company, part of Sanjeev Gupta's GFG Alliance, was hit by the collapse of Greensill, a specialist in invoice financing that operated with less regulation than the traditional banks.

Court documents from February regarding Greensill creditors and Speciality Steel UK Ltd show that the Liberty company has a debt with them of approximately £289m. The debts owed to Greensill creditors in respect of the activities of the GFG Group amount, in broad terms, to some US$4 billion.

Argus reported earlier this month that there was a restructuring plan hearing held in April, where all Greensill creditors and over three quarters of "other" creditors opposed the restructuring,

Advertisement
One creditor is Harsco, which operates a large site in Rotherham under its SteelPhalt brand. Court documents show that Harsco issued a winding-up petition against Liberty in 2024 in an effort to recover £4m that it is owed, along with machinery "for which it has not been paid and which it would like back."

Harsco has been against the restructuring plan with its lawyers saying: "everyone in the room knew that it was unlikely to be sanctioned" by the judge.

A winding up petition is issued to the courts by those seeking to recover money that they are owed. The courts do not look on it as a debt recovery process, rather that the company can't pay its debts and should be wound up so that liquidation can be used to collect the company's assets.

HM Revenue & Customs (HMRC) issued a petition to have Liberty Speciality Steel wound up in 2022 but following positive discussions, the petitions were withdrawn.

A decision on the latest winding-up order is due this week. If the court approves, Liberty will be served the order and the official receiver automatically becomes the liquidator. An alternative is if a private liquidator is appointed.

Oliver Coppard, mayor of South Yorkshire, said last week: “The news emerging about Liberty Steel is deeply concerning for all of us in South Yorkshire, but particularly those who work in their plants at Rotherham and in Stockbridge. I spoke with the Business Secretary yesterday (Thursday) to raise our concerns and we agreed to work together as more details emerge and the situation develops.

“Our steel industry has been integral to our identity and economy for generations. While the challenges we face are significant, I'm committed to working alongside industry leaders, unions, and government partners to explore all possible avenues to safeguard jobs, support our steel sector and ensure that South Yorkshire remains at the forefront of advanced manufacturing.”

Following the government stepping in to save British Steel in Scunthorpe, local MPs have discussed the potential for similar action in South Yorkshire.

Marie Tidball, MP for Stocksbridge, said: "The Steel Industry (Special Measures) Act, passed last month, demonstrates clear reassurance that the Government will do everything they can to get it right for our British steel industry, including a commitment to using our steel assets productively. This must include Stocksbridge.

"Our local plant has strategically significant highly specialist capability to produce world-leading steel, which is crucial to our national defence, aerospace, and energy industries.

"The Government have committed £2.5 billion to secure the UK steel industry, and have always been clear that there is a bright future for steel in the UK. I am working around the clock to ensure that Stocksbridge is an integral part of that.

"Our steelworks has been the beating heart of our community for nearly 200 years, and I will continue to fight to protect our site, our jobs, and the strategic capability our site can offer."

Liberty Steel website

Images: Liberty Steel

Read more...

News: FerretWorks - a South Yorkshire take on fostering innovation

A University of Sheffield project which aims to scale-up disruptive businesses in the region is being backed by the South Yorkshire Mayoral Combined Authority (SYMCA).

The project has been given the name FerretWorks as a Yorkshire slant on SkunkWorks, the secret R&D team at Lockheed Aircraft Corp that worked quickly to develop a jet fighter for the United States during World War II.

The approach from the University of Sheffield Advanced Manufacturing Research Centre (AMRC) was formed to incubate high risk/high reward ideas away from the typical business KPIs and constraints, creating a space where it’s OK to fail, as well as putting money into the groups so they can make space for thinking.

SYMCA is now set to award £375k from its Project Feasibility Fund for FerretWorks.

A SYMCA paper explains: "The project will assist entrepreneurs by facilitating access to the resources required to help mature and de-risk the formation of disruptive technology businesses, laying the foundations for scale-ups of the future. The program aims to develop a culture of innovation in the SYMCA region that learns fast, fails fast, and de-risks the translation from concept to establishing an ecosystem of disruptive businesses."

Advertisement
The project is set to develop a pipeline of IP generation and future entrepreneurs, create high-value jobs in the region, and encourage businesses to form and base themselves in the South Yorkshire Investment Zone.

The authority is also keen that the FerretWorks sub-brand will be used in marketing and promote SYMCA as "the place to develop innovative start-up businesses."

The AMRC has grown to become a world leader in manufacturing excellence, part of the national High Value Manufacturing Catapult network of research centres. With facilities in Rotherham and Sheffield it has more than 500 highly qualified researchers and engineers working on the manufacturing needs of the future, from composites to castings, additive manufacturing to machining.

The AMRC strategy was refreshed in 2023 where FerretWorks aims to facilitate ambitious steps in manufacturing research by giving engineers the freedom, space and time to create and explore new ideas, to run adjacent to the centre's themes of sustainability, digital, future platforms and supply chain resilience.

AMRC spin out companies include Productive Machines, FourJaw and AML.

AMRC website

Images: AMRC

Read more...

News: Medical equipment manufacturer moves back to Rotherham

Wassenburg Ltd, which is a world leader in manufacturing endoscope reprocessing products and solutions, has taken a 10,900 sq ft modern warehouse and office unit at Ignite @ Magna Business Park in Rotherham.

The Dutch-owned company is taking a five-year lease, at a headline rent of £8.95 per sq ft at Templeborough.

The move is made possible by global steel business Danieli moving from Templeborough to a new purpose built headquarters in a prime plot on the Advanced Manufacturing Park (AMP) in Rotherham.

Andrew Betts, Managing Director of Danieli, said: "As part of Danieli’s relocation to the Advanced Manufacturing Park following significant expansion, Knight Frank was appointed to market our former premises which offered a high quality, industrial/business unit, with above average office content. Following strong interest, a letting to Wassenburg was agreed and Nick Wales of Knight Frank Sheffield has been retained to sell the investment."

Rebecca Schofield of Knight Frank, who dealt with the letting, added: “The Ignite at Magna Development continues to prove popular; the premises are of high quality and are well located with easy access to J33 and 34 M1. Unit 4 Ignite was well received to the market and the layout and fit out proved attractive to occupiers. Wassenburg was attracted to the quality of the unit and the split between office and warehouse space, and it is great to see them relocate and expand in the area.”

Advertisement
In 2011 Wassenburg transferred its UK operation from Hellaby to Smithy Wood in Sheffield.

Rakesh Javer, Managing Director at Wassenburg, said: “We are delighted to relocate to Unit 4 Ignite. The high-quality facilities and strategic location provide the perfect base for our operations as we continue to expand and serve our customers more effectively.”

Ignite @ Magna offers easy access into Rotherham and Sheffield. It is also around one mile from Junction 34 of the M1, and also close to Junction 33 of the M1 allowing distribution networks across the entire country. Well known occupiers nearby include ETA, Yorkshire Ambulance Service, Parcel Force and AESSEAL.

Wassenburg was established in 1984 by Gerrit Wassenburg, and has developed from a family company into a global player as an expert in all aspects related to automated endoscope reprocessing.

Since its establishment, Wassenburg, with headquarters in The Netherlands, has grown exponentially and has sales offices in The UK, Ireland, France, Germany, the US and an exclusive distributors network in Europe, Middle East, Australia and New Zealand.

Wassenburg website
Danieli website

Images: Knight Frank

Read more...

News: Planned Rotherham nightclub conversion looks sweet

From banging beats to tasty treats. Plans have been submitted to enable the conversion of a vacant former nightclub in Rotherham town centre into a show-stopping dessert parlour.

The £10m Westgate Chambers development is fast-becoming a foodie destination in Rotherham with the recent openings of burger and milkshakes specialist, Munchies, and Cali's - a specialist in chicken burgers, wraps, wings and tenders. The outlets on Main Street are set to be joined by Dessert Time soon and the area could be about to get another opening.

Westgate Chambers is a large private-led regeneration project - a £10m scheme designed by Sheffield-based Self Architects involving the creation of a commercial, retail and residential development that involves renovating the buildings around a courtyard, including a Georgian Grade II listed building.

A planning application has now been submitted for one of the largest remaining units - 2 Main Street - the former Trsyt / Bar One.

If approved, the proposals allow for the conversion of the space so that it can be operated as Rassam's Creamery - the UK’s largest dessert restaurant franchise.

The menu features an array of desserts from luxurious ice cream sundaes and fresh Belgian waffles to hot puddings and decadent cakey milkshakes.



Advertisement
Sheffield-based entrepreneurial founder, Rassam Ali, came back from a holiday in his birth country, Yemen, with the idea of bringing unique milkshakes to his dad's shop. Continued expansion over the last decade means that there are now seven locations in the UK, which have an amazing look and feel.

The unit for Rassam's Creamery sits within a listed building - a former Georgian townhouse - so listed building consent for the change is also sought.



Plans state that the proposed change of use will only affect the internal usage of the space. The external elevation has already been renovated by the landlord and has been restored. The frontage has been reinstated with a Georgian façade by fitting appropriate double glazed timber sash windows to the Main Street and Westgate facades the shopfronts have all been renovated in a style complementary to the building.

At just over 6,000 sq ft, the dessert parlour would extend over the ground floor and basement floor.

Plans for the ground floor include the kitchen area, toilets, counter and customer ordering area and seating for 50. The basement would be for storage.

Images from other locations show vibrant, eye-catching interiors where "every visit promises to be a memorable indulgence in sweetness and hospitality."

Several features set Rassam’s Creamery apart from other dessert venues. A dedicated mocktail area boasts over 50 syrups and an array of fresh fruits, allowing for the creation of bespoke, refreshing beverages.

Rassam's Creamery website

Images: Rassam's Creamery

Read more...

News: Sheffield heat network set to expand into Rotherham

Plans are in the pipeline for E.ON's Don Valley heat network to double in size, potentially bringing low carbon heating to a key economic site in Rotherham.

The district heating scheme in the Lower Don Valley is currently powered by E.ON’s Blackburn Meadows renewable energy plant which uses biomass to provide a source of heating to connected buildings.

E.ON’s latest proposals would add around 10km to expand the 8km pipe network which is already providing heat to businesses, including IKEA UK, Forgemasters' and Ice Sheffield and Sheffield Arena.

An indicative route south of the current network shows how it could extend from Sheffield Arena to take in Tinsley's industrial estates and Sheffield Business Park before crossing the Parkway to connect to the Advanced Manufacturing Park (AMP) in Rotherham.

Chris Lovatt, Chief Operating Officer for E.ON’s Energy Infrastructure Solutions business, said: “Whether it’s combating the climate crisis, cleaning the air in city streets, or weaning the UK off fossil fuels to avoid the impact of volatile global gas markets, we need to find new, cleaner ways of heating our homes and businesses. Heat networks like ours in the Lower Don Valley allow us to do that.

Advertisement
“We are the playmakers in creating a more sustainable UK through projects like this, and with Sheffield’s bold steps to become a zero-carbon city by 2030 we’re looking to expand the route of our district heat network to play a role in that ambition. As part of our ongoing investment in the city we’ll be looking to create more than 2,000 green jobs in the region as well as improving public spaces – leaving every space we touch better than when we found it.”

Heat networks are a more efficient and more cost-effective way of providing heat to built-up areas by producing and distributing heat from a central source instead of individual boilers in each property.

District heating networks will play a critical role in decarbonising cities. Heat networks currently provide 3% of the heat demand in the UK, with that number potentially growing to 20% nationwide by 2050 to support the move towards net zero.

A formal planning application could be submitted to Sheffield City Council towards the end of Summer, with E.ON hosting a number of consultation events, including at Catcliffe Memorial Hall on July 25.

Last year, Rotherham Energy Limited secured £25m to build a new Rotherham Energy Network eminating from the £150m biomass power station at Templeborough.

E.On website

Images: E.On

Read more...

News: Uber's Chinese rival wants to open an office in Rotherham

A Chinese ride-hailing giant has applied for planning permission to open a new operation in Rotherham.

DiDi Global Inc. is the world’s leading mobility technology platform. It offers a wide range of app-based services across markets including Asia-Pacific, Latin America and Africa, including ride hailing, taxi hailing, chauffeur, hitch and other forms of shared mobility as well as auto solutions, food delivery, intra-city freight and financial services.

With services such as DiDi Express, DiDi Taxi, DiDi Food and DiDi Delivery, and over 500 million users, a planned expansion into the UK has slowed due to reported regulatory challenges and cybersecurity and privacy concerns.

DiDi Mobility secured a private hire operator licence for Sheffield back in 2021. A licence to operate in Rotherham was secured last year but it will expire in May 2024.

Advertisement
The company has now applied for planning permission to enable it to take on an office within Bizspace's Silkstone House in Manvers, Rotherham.

The application explains: "Although we are applying as a private hire app operator, we act exactly like a normal E business. We will not have customers on site nor have any phone operators and no drivers or vehicles Didi Mobility UK Ltd."

The move is similar to rival firm Bolt, the Estonian company that has an operator's licence in Sheffield, and secured planning permission to operate from Bizspace's offices in Templeborough in 2022. Another rival, Uber also has a private hire operator's licence from Rotherham and Sheffield councils.

Last year, Rotherham Councl began consultation on changing its Hackney Carriage (taxi) and Private Hire Licensing Policy. After being found to have "weak and ineffective arrangements for taxi licensing which leave the public at risk," Rotherham's policy is now widely regarded as a benchmark for other local authorities. The new focus is on the increase in out of town vehicles and sub-contracting.

Didi website

Images: DiDi

Read more...

News: 60mph speed limit trial complete on M1 through Rotherham

A trial of 60mph speed limits on the M1 in Rotherham to address air quality has been completed.

Rothbiz reported in 2020 that Highways England (now National Highways) was introducing the speed limits as action needed to be taken to reduce emissions and improve air quality.

The limits were made operational 24 hours a day instead of during peak times as they were previously when the M1 all-lane running became operational in the region and open to traffic in 2017. The section was designated as Britain's first ever Air Quality "Speed Limit" based motorway.

The move followed on from 2014, when the then Transport Secretary put the brakes on the agency's plans to implement a maximum mandatory 60mph speed limit in the area.

The expectation for the trials was a reduction in nitrogen dioxide (NO2) when traffic is reduced from 70 to 60mph but Covid 19 lockdowns in 2020 and 2021 and the reduced traffic flows impacted traffic and emissions levels, and National Highways' ability to collect monitoring data.

Advertisement
Monitoring contined after COVID and now the government-owned company charged with operating, maintaining and improving motorways and major A roads in England, say that the speed limit trial between M1 junctions 34 to 33 at Rotherham is complete, "after evidence showed that air quality at these locations has improved."

Initial findings showed that managing speed at 60mph has the most significant impact, reducing emissions on average by 17%, and that the impact on journey times is considered minimal due to the section of the motorway being less than 4.5 miles.

South Yorkshire was identified as a location where NO2 levels exceeded the legal limit annual mean limit level of 40 µg/m³.

Last year the government confirmed that plans for new smart motorways would be cancelled in recognition of the "lack of public confidence felt by drivers and cost pressures." The government and National Highways also said that it would continue to invest £900m in further safety improvements on existing smart motorways.

An emergency area retrofit continues to double the number of emergency areas on the M1 between junction 32 at Thurcroft and junction 35A at Stocksbridge, with 12 new emergency areas being added to the existing eight.

As work is expected to be complete by winter 2024, drivers will have to wait for the return of 70mph limits in the area as the left-hand lane remains closed throughout construction to allow engineers to carry out the upgrade safely. For lanes two, three and four, they remain open with a 50mph speed limit in place.

In December, National Highways confirmed that the stretch of the M1 between junctions 28 to 31 would gain additional emergency areas but no start date for work was given.

National Highways website

Images: National Highways

Read more...

News: All South Yorkshire councils to cover Supertram losses

A transport levy paid by the four local authorities in South Yorkshire is set to be used to cover the £6.3m losses of Supertram after Stagecoach’s current contract for operation of the network ends in March.

Opened in 1994, Sheffield's Supertram system cost £240m and now serves major residential and employment sites in Sheffield. A tram-train pilot project brought new vehicles to Rotherham in 2018. The running of Supertram services, infrastructure and finances will be controlled by South Yorkshire Mayoral Combined Authority (SYMCA) through an arms-length company from March 22.

Rothbiz revealed in November that the cost to keep the Supertram network going for another 30 years is now nearly £600m, with only the first £105.95m secured, and that £7m is being set aside from the MCA budgets to support any operating losses. This is £7m each year, reducing over time.

The Mayoral Combined Authority Board is set to receive an update on the proposals, and budgets, when it meets next week with a business plan for Supertram on the agenda.

A 2024/25 operating budget for SYFTL (the arms-length company operating the tram) shows that operating costs are £23.6m per year for the 29km long network of four overlapping routes, served by 25 trams and seven tram-trains. Nearly 60% of costs go towards the wages and salaries of the workforce with almost 20% of the budget paying for the cost of electricity which powers the trams.

Annual income is £17.5m, which mostly comes from ticket revenues and around £1.8m from concessionary subsidies via SYMCA for elderly and disabled passengers and children.

Around 9.5 million people travel on Supertram every year. A long period of track renewal and the COVID pandemic has seen patronage fall from its peak of 15 million passengers per annum in 2010/11. There were 11.5 million passengers in 2019 prior COVID.

Advertisement
A report to the SYMCA board said: "All these income streams are not enough to cover the tram system’s day-to-day running costs. In 2024/25, the operating deficit is forecast to be around £6.3m. SYMCA will pay an operating subsidy to SYFTL which will allow the company to meet all its financial obligations. SYMCA will also meet any costs necessarily incurred by SYFTL to deliver the asset renewal programme. In its own medium term financial plan, SYMCA has set aside sufficient resources (£5-7m per annum) from the South Yorkshire Transport Levy (paid by each of the four local authorities in proportion to their population) to cover the cost of the operating subsidy."

This year's transport levy is to be discussed at the same meeting. For 2024/25 it is set at £56.65m, raising an additional £1.1m of funding. The 2% increase would mean that Sheffield Council would pay in £23.6m, Doncaster £12.5m, Rotherham £10.6m and Barnsley £9.9m.

The new company's five year strategy sees Supertram go through a recovery phase before an improvement phase and then a growth phase. The plan forecasts that the operating deficit will decline as energy prices begin to stabilise.

The report adds: "One of SYFTL’s primary goals is to decrease its dependence on the public purse. To achieve this, the delivery plan includes several measures that aim to boost ticket sales and other forms of revenue, as well as identifying more cost effective ways of working. This includes new ticket collection machines which will speed up payments for customers. Efficiency in the business will be targeted with a major Timetable Optimisation Study the results of which will determine future service levels and support efficient running and manning of services."

SYMCA has put in place a two-year emergency support package for local transport in the face of a lack of resources and "stop-start" government funding for buses. The authority states that "without sustained Government funding this level of support cannot be maintained beyond financial year 2024/25."

SYMCA website

Images: Supertram / SYMCA

Read more...