Dear readers — we’re trialling something a little different today: a business-themed edition. Did you know the West Midlands is the UK region most impacted by the new U.S. tariffs brought in by President Donald Trump over the pond? Reporter Chris Dorrell is exploring the impact on the region — and the potential opportunity — of the levies in our main story today. And if you have any business-related stories for us, or just want to get in touch, email editor@birminghamdispatch.co.uk.
First though, your Birmingham Business in Brief.
Birmingham Business in Brief:
🚒 The West Midlands car giant, JLR (Jaguar Land Rover) has had a controversial year. Last November, it released a discourse defining ‘woke’ advert, as part of a rebranding exercise for Jaguar, featuring an avant-garde video without a car, produced by the agency Accenture Song. But the rebrand doesn’t seem to have landed. Between 2022 and 2024, Jaguar's global sales nearly halved plummeting from 61,661 units to 33,320. Such a dip also likely wasn’t helped by a whistleblowing report in December 2024, when mechanical engineer Hazar Denli alleged that JLR’s parent company, the Tata Group, had sacked him for raising safety concerns about their cars. U.S. tariffs — more on those below — have also impacted sales as the company relies heavily on the American market for exports.
🏗️ The UK government’s new industrial strategy was published last week, promising cuts to electricity bills, more funding for research and development (R&D) and cash for the British Business Bank which supports SMEs (small and medium sized enterprises). This includes the removal of green levies, an annual spending target for R&D of £22.6bn annually by 2029 and £2.6bn for regional SMEs, secured by the British Business Bank. The UK government has a habit of skipping the Midlands, in favour of the North and South, in its funding commitments. Reception of the recently published industrial strategy has been mixed; according to The Times, many West Midlands car companies have complained that the new industrial strategy “lacks ambition.” However, some of the £2.6bn for regional SMEs should find its way into the Midlands Engine Investment Fund II which has already promised £400m of funding for regional SMEs. The British Business Bank will also be supporting ‘cluster champions’ and ‘regional angels programmes’ in the West Midlands allowing companies access to capital investment. Tony Hague, director of PP Control & Automation, a control panel business, told The Birmingham Mail that: "at first glance, there doesn't appear to be anything new, exciting or 'immediate' in there, with the majority of the much-publicised energy savings not actually coming into play for two years — and only after more consultation.”
📈 The Labour Party’s national insurance contribution (NIC) hike for employers back in April has been leading to staff cuts across the West Midlands. According to The Business Desk, citing a study by professional services group S&W, almost a third of West Midlands businesses are looking at further reducing staffing levels after the national insurance raise. The study also found that 22% of businesses with turnovers over £5m had already reduced headcounts in anticipation of the NIC hike declared in the October 2024 budget. From April 2025, employers faced an NIC hike of 13.8% to 15%, and a reduction of the NIC threshold at which businesses have to contribute, going from £9,1000 to £5000 in salary. The S&W study also cited rising energy costs and goods prices as other major reasons why West Midlands businesses were reducing hiring and letting staff go.
🌻 Pollen getting you this summer? A Birmingham based company might have the solution. Birmingham Biotech, a leading medical manufacturer has teamed up with the University of Birmingham to produce a nasal spray that prevents hayfever. First formulated during Covid-19 as a preventative device against the disease, NoriZite is now sold in over 10 countries as an anti-hayfever measure. The spray is ‘drug free’ and creates a protective layer in the nose made from organic ingredients. The company claims NoriZite is six times more effective than other hayfever sprays and lasts for over 6 hours in the nose, once applied. Any readers tested this claim? Let us know in the comments.
Chris Dorrell is talking to business owners in the West Midlands today, to see how they've been affected by Donald Trump's tariffs.
Dale Parmenter does not strike me as a man who is easily worried. Even over the phone, it is abundantly clear he has the optimism required of an entrepreneur. But that optimism has been put to the test over the past couple of months.
DRGP, the Kidderminster-based communications and marketing firm he founded back in 1980, has seen its turnover fall by 15% in April and May compared to the same period last year.
It’s nothing to do with the firm’s underlying performance, or even any changes that directly affect their operations. Rather, DRPG has been caught up in the fallout from the tariffs introduced by U.S. president Donald Trump earlier this year.
“For us, the issue is the uncertainty that the tariffs cause for our clients, many of whom are manufacturers (including JLR, Bosch and Honda) impacted directly by them,” Parmenter tells The Dispatch.
Two months ago, Trump announced that goods arriving into the US from external countries would be subject to a levy. These levies are paid by American firms and are designed to support US manufacturing by making imports less attractive. Some nations, like China, were slapped with sky high rates; the UK got off relatively lightly, with only a 10% tariff. But it’s still hurting businesses, especially in regions that have high rates of trade with the U.S — like the West Midlands. A report produced for the West Midlands Combined Authority last month said that the region would be affected more than anywhere else in the UK by the measure.
