13% of all business say it’s harder to fill vacancies than usual (up from 9% in August).

The most common reasons were a lack of applicants with the right skills (67%), fewer EU applicants (25%) and the fact that the role isn’t paid enough (15%).

Recruitment is hardest among hospitality businesses (30% are finding it harder to recruit), followed by the water industry (27%) and health (23%).

15% of transport and storage businesses are struggling to recruit. Half say fewer EU applicants is a factor (46%).

There were a record 1,034,000 vacancies in the UK between June and August.The ONS released an article on recruitment struggles this morning: Hospitality businesses are most likely to be struggling to fill vacancies – Office for National Statistics (ons.gov.uk)

Sarah Coles, personal finance analyst, Hargreaves Lansdown: “More than one in eight businesses are fighting a losing battle to recruit the right people. The world of work has shifted, and there aren’t enough applicants with the right skills. Meanwhile, Brexit has persuaded many EU workers to leave the UK, and in some industries, people just aren’t willing to do the work for the pay on offer.

It makes life nigh-on impossible for recruiters. Part of the problem is that the world of work is changing. Retailers, for example, have had to close stores and lay staff off as footfall dropped, then to meet the needs of more online demand they’ve opened new distribution hubs and hired more warehouse staff and drivers. It means booming demand in some areas and shrinking in others, and staff may not have the skills or the inclination to make the move.

They also face the enormous challenge of recruiting after so many EU nationals have left the country. In a post Brexit world, some wanted to be closer to family or to work in an environment that allowed more freedom of movement. The number of EU nationals working in the UK fell by 8.7% in the early months of the pandemic (while the total number in employment overall fell 2.4%).

Even now, many of them haven’t returned. In the transport and storage industry the number of EU HGV drivers fell by 43% in the year to the end of March. This is likely to owe something to the difficulties and delays caused by working with new systems, which they don’t face when working within the EU.

Among the available talent pool, some firms struggle with the fact that the pay isn’t good enough to attract staff. This is a particular problem for professional, scientific and technical roles. It’s also something regularly faced by businesses paying minimum wage for difficult work – such as care.

We’ve already seen this theme emerge in company reports, where businesses ranging from hospitality to computer games development have raised concerns about recruiting difficulties. In some cases, this means businesses are struggling to operate effectively, which in turn is putting the brakes on GDP.

We’re also hearing reports of wage increases to attract staff, and while this is good news for those in underpaid careers, it causes issues for employers, who are seeing a squeeze on all of their costs, so a higher wage bill is the last thing they need.”

Castle Corporate Finance is pleased to announce the appointment of Alex Nursey. Alex joins the award-winning corporate finance specialist as a Manager, assisting the team on current transactions and managing them day to day, as well as helping to identify new business opportunities.

Alex will be project managing and advising on a wide range of assignments, bringing his experience to bear to add value for clients at every stage of a transaction process. “No business is the same, and every owner has a different strategy. It is my job to help them realise their ambitions by ensuring the transaction runs smoothly. It also means offering proactive advice along the way to make a difference to the business owner.” Alex said.

Alex qualified as a Chartered Accountant in 2014 with Crowe UK and spent time in their Audit and Corporate Finance teams, in both Kent and London, where he gained experience with a wide range of businesses in terms of their size, sector and importantly in their stage of maturity. Predominantly whilst in Kent, Alex worked with owner-managed SMEs and in London with companies that were looking to list on one of the UK’s capital markets. He also spent some time in industry, in a private-equity backed business.

Alex sees his key challenges in this role in 2021 as getting up to speed and making a meaningful contribution to Castle’s clients while working remotely. “It is strange to join a new firm in the middle of such circumstances, but I am feeling surprisingly settled already, and am working on some exciting projects.” Alex said.

It is impossible to ignore the COVID-19 backdrop, although hopefully there is light at the end of the tunnel now with the vaccine roll-out. There has been no shortage of transactions during the pandemic, however the challenge will be to continue to identify the right opportunities and support Castle’s clients as they navigate the tail-end of the pandemic and settle into some sort of new normal.

Commenting on the outlook for 2021, Alex said, “As we speak, the Spring budget is still in place. With much talk of changes to the Capital Gains Tax regime going forward, I expect to see M&A activity increase with owners trying to secure tax-efficient succession planning before any deadlines that may be set in the forthcoming budget. Castle has also completed a number of Employee Ownership Trusts (EOTs) over the last 18 months and I see these becoming more popular in 2021, as business owners seek different ways to exit in a tax efficient manner, and at the same time increase employee engagement. I also anticipate an increase in re-financing and recapitalisation opportunities as businesses seek to best position their balance sheets to accommodate the extra debt that may have been secured during the pandemic; or for those that need extra facilities to capitalise on growth opportunities that arise, as the UK returns to some level of normality.”

Reward Finance Group has appointed experienced funder, Simon Micklethwaite, as business development director for Yorkshire and the North East region.

He joins the alternative finance provider with over two decades experience within the sector. Initially he spent more than 18 years in commercial banking with HSBC, prior to joining property lender, Roma Finance.

Over the years he has developed an extensive network of finance brokers and introducers nationwide, which will be invaluable to Reward as it continues to grow its presence across the UK.

Welcoming Simon to the team, Reward’s managing director for Yorkshire and the North East, Gemma Wright, said, “We are delighted that Simon is joining our ever-growing team. He joins us at the perfect time as the ‘green shoots’ are well and truly showing here at Reward as we return to the fast pace we all enjoy.

“With his in-depth knowledge of the market, and his contacts within the industry, he is able to hit the ground running, which is essential, as the number of deals we are being introduced to and completing are now on a par with those prior to lockdown.”

Speaking about his new role, Simon said, “I’d heard great things about Reward from both introducers and other asset-based lenders, not only about the individuals within the company but also about the way they do business.

“When your role is business development you need to work with a company that wants to do deals. Reward has a great reputation for doing just that, as it is has the flexibility to be able to create different funding solutions dependant on the client’s needs.

“In addition, the decision-making process is straight forward, enabling decisions to be made quickly. I am therefore looking forward to working closely with the team to help SMEs across the region and the UK to regroup and grow during these difficult times.”