In the first in a series of new blogs, we explore the legal implications of growth. This follows the launch earlier this year of our in-depth report, Ambition 2025 [link], which looked at the drivers for growth of North West businesses – their strategic objectives for the year, the challenges that lie ahead and the opportunities that exist in their quest for success. The report dived into a number of core areas that feature prominently in the growth ambitions of regional businesses. This includes finance, people, innovation and sustainability.

We kick off the first of four blogs by focusing on the key topic of sustainability, speaking to associate partner, Bill Dunkerley, about its importance and what businesses need to consider from a legal perspective when scaling up.

The importance of sustainability

The topic of sustainability has raced up the business agenda in recent years, as global economies introduce stricter regulations and place greater emphasis on climate change, sustainability and the environment.

“Sustainability is definitely the word of the moment,” explains Bill. “While it means different things to different people, there’s no doubt that it’s a critical concept.”

Unlike many other business concepts that emerge along the growth journey, Bill insists that sustainability is a day one job, if not before. “It’s not a one-off activity or mindset,” Bill explains. “It’s something that businesses should be considering before the company is even up and running. After launch, it then becomes a continual process of reflecting on what you’re doing and constantly asking, ‘can we do things better?’.”

Key legal considerations

By its definition, the word sustainable means ‘maintaining a certain rate or level’. In order to do this, Bill says it’s essential for businesses to understand the changes being implemented by the government, whether that’s around net zero, greenwashing, or the transition to electric cars. “It’s all about horizon scanning and seeing what’s coming down the line, before positioning your business in anticipation of those changes, rather than being behind the curve.

“For example, while there are still questions around the move towards electric vehicles, the direction of travel is very clear. As such, businesses that operate fleets need to start thinking now about that transition, because there will be a capital and investment cost attached to that change. It’s impossible to simply do it the day before diesel engines are banned. You need to be looking ahead and factoring these changes into your business plans to best position yourself for the future.”

Compliance with evolving and emerging legislation is also a vital consideration for businesses when it comes to the issue of sustainability.

“Compliance is of critical importance,” explains Bill. “It’s hugely important to have a mechanism in place that enables you to monitor what is coming down the line and understand what legislation already exists, such as the Environment Act. This is a fundamental piece of legislation, which includes many provisions that will have a real impact on businesses, including the plastic packaging tax.”

When you take sustainability back to its true meaning, another area of consideration is around people. “The sustainability of your workforce is crucial when it comes to growth,” explains Bill. “This will differ from sector to sector, business to business, depending on what the nature of the work is. But the issue around mental wellbeing will only gain momentum, with the Health and Safety Executive (HSE) trying to raise awareness and educate businesses around mental health in the workplace.”

To date, the HSE hasn’t pursued, investigated or prosecuted any business for offences relating to mental health-related injuries in the workplace. However, Bill believes that once the education phase is complete, enforcement will follow. “Yes, you want to keep your workforce happy and motivated,” says Bill. “But, equally, on the regulatory front there is going to be an increasing focus on mental health, what employers are doing to protect their workforce, and how they are guarding against mental health injuries.” 

Support and guidance

When it comes to support and advice, where can businesses go if they want to discuss the issue of sustainability, in support of their growth ambitions?

“There’s a lot of information out there,” admits Bill. “Businesses need to be mindful of that and ensure any information, website, or company is verified.

“Any government website, or certain government departments, are probably the best places to start, as they will lay out what official plans are place in a given area.”

The other meaningful approach is internal listening, insist Bill. “Employee consultations are a powerful tool,” he explains. “By simply asking questions, such as ‘what can we do that’s more sustainable’, you can gain useful insight on more practical areas of sustainability, such as waste management and office-based environmental initiatives.”

If you would like to speak to Bill in more detail about the role sustainability plays in your growth strategy, contact him on bill.dunkerley@pannonecorporate.com or call 0)7920 237681

Nearly a quarter of North West businesses intend to adopt artificial intelligence (AI) in the next 12 months, according to new research.

As leaders from across data science and AI met at the fifth annual AI UK conference last month – hosted by the Alan Turing Institute – North West businesses have set out their intentions for adopting AI in 2025.

Law firm Pannone’s Ambition 2025 report found 24% of regional businesses have ranked AI as a top priority for 2025. More than a third of businesses (34%) stated that they want to push boundaries and set new standards in innovation in their sector over the next 12 months. Other priorities in the top 3 were wealth creation and expansion into international markets.

Unsurprisingly, 31% of North West businesses are investing in new technology and digital transformation this year, with a further third going beyond that and developing their own technology in-house. In addition, more than a quarter (27%) are currently working with incubators and regional hubs, such as Atom Valley.

Last month, pioneering experts from across the data science and AI ecosystem came together to discuss the latest developments being used to address some of today’s biggest challenges.

Danielle Amor, legal director in the commercial services team at Pannone, commented: “There’s no doubt that AI is developing at pace, with AI UK a perfect showcase of what’s on the horizon.

“The difficulty legislators currently face is how to ensure regulation keeps up with the speed of change. With the EU, the US and China taking wildly divergent approaches, the future direction of AI in the UK hangs in the balance. Businesses are clearly showing appetite for change, adopting new ways of working that incorporate AI, but there is also concern around what this could mean for the future jobs market and independent thought.

“The real drivers for businesses centre around improving efficiencies, reducing the administrative burden that hampers certain roles and utilising product development tools.”

Despite more than a third of businesses (35%) admitting that they think AI will replace jobs, at the same time companies are also using technology to drive training and development (34%), with the same number of businesses using it to enhance recruitment.

Amor added: “There’s still a huge amount of uncertainty over AI – not just in terms of how it’s regulated and what innovations will be developed, but also how SMEs can harness it in their day-to-day operations.

“For SMEs without the budget for in-house development of AI systems, the question is how best to embrace existing products to fast track their own ambitions and achieve growth, whilst remaining compliant with the existing regulatory regime and realising cost savings.”

The Ambition 2025 report can be found here. Through a combination of research and in-depth interviews, Ambition 2025 aims to understand the key drivers of growth, as well as the motivations, priorities and challenges for regional companies that make up the North West business community.

A survey of 200 regional businesses with a turnover of between £20 million and £300 million was also carried out in conjunction with the report.

The Financial Times once stated that the North West economy, led by the redevelopment of Manchester and Liverpool, is a genuine rival to ‘overheated London’. It’s a sentiment that’s hard to argue with.

Each distinct, but interconnecting sub region within the North West’s boundaries is brimming with industry – some traditional, some emerging to become sector leading. Whether it’s pharmaceutical, technology, automotive, retail, manufacturing, aerospace, utilities, chemical engineering, nuclear, or food manufacturing – not to mention the rich heritage in sport and culture, which contributes significantly to the regional economy – there is an abundance of talent and intent, combined with a strong identity and desire to put the North West on the global map.

While its chronically ‘wet and grey’ tag is well-known, the climate in the North West has never set the tone when it comes to the spirit and endeavour of the regional business community. “The business community remains close-knit, plain-speaking and has the energy and desire to make things happen, rather than waiting for others to do it for us,” explains Tom Hall, corporate partner at Pannone. “I don’t see that changing.”

In every corner of the North West there’s a fascinating story to tell about the businesses that contribute significantly to the wider UK economy; there are inspiring business leaders who are making their mark, not just on the region, but nationally and internationally; and there is a working population striving for change and good – all proud of the region, what is means and what it does.

It was these drivers that inspired our report Ambition 2025. We wanted to listen to those voices – hear their stories about growth and ambition, while understand the key motivations that will bring success over the course of the next 12 months. Through a combination of research and in-depth interviews, our aim was to paint a picture of the people and businesses that make up the North West business community and what aspirations they have for the future.

Survey highlights

As part of Ambition 2025, we conducted a survey of 200 North West businesses to understand the key drivers of growth. The research focused on five core areas: people, finance, impact, innovation and ambition. The results shine a spotlight on the motivations, priorities, and challenges for regional businesses, as they strive towards their goals in 2025. So, what does the survey tell us?

Legacy the ultimate ambition: Over 75% of respondents have selected at least one legacy building factor as their ultimate business objective. This compares to just 62% who selected at least one financial motivation.

External investment as a priority: Attracting external investment is the most important goal for businesses aiming to achieve their ambitions, surpassing even brand-building. This focus is especially strong among younger decision-makers (16-34 years old), where 56% identify external investment as key to their strategy.

Half of those aiming to sell their business to fund retirement also prioritise external investment as essential to achieving this goal.

Flexible work: The top people priority for businesses over the next 12 months is offering more flexible work options for employees. This focus on flexibility tops other people-related factors such as improving pay and recruitment. Arguably, it reflects a broader trend toward workplace cultural transformation.

Business leaders aged 45-54, however, prioritise investing in wellbeing and improving pay and rewards. This potentially highlights that people in these age groups are slightly more focused on more traditional, office-based perks compared to younger business leaders?

The role of AI: No businesses surveyed doubt AI’s potential impact, with the majority viewing it as a tool for enhancing efficiency and reducing administrative burden. This trend is particularly strong in HR and non-tech sectors, where AI is seen as a means to streamline operations.

In finance and retail sectors, AI is seen as an enabler for recruitment, training, and development.

Growing demand for funding: More than 80% of businesses in the North West, particularly in education (93%) and hospitality (92%), are actively seeking funding over the next 12 months. Angel investment and growth capital are the most favoured types of funding (21% each). Private Equity and Venture Capital are less attractive options (less than 6%).

M&A on the rise: M&A activity is a significant focus, with over three-quarters of businesses in the North West planning to explore opportunities within the next year. This trend is particularly prevalent in leisure (88%), with tech following closely behind (84%). Younger decision-makers appear less enthusiastic about M&A, with an even split between those who are considering it and those who are not.

Sustainability initiatives: Sustainability is on the radar of all businesses surveyed. The most common sustainability initiative is upgrading fleets to cleaner, greener options, reflecting a growing awareness of environmental impact across industries.

Generational differences: Throughout the survey, some clear generational differences emerged in terms of priorities and strategies. In particular, younger business leaders (16-34) are more focused on external investment, flexible working conditions, and growth, while those over 45 tend to prioritise wellbeing, pay improvements, and legacy creation.

Younger people are also more likely to prioritise external investment for meeting ambitions and be less likely to feel their business will embark on M&A in the next 12 months.

To complement our survey findings, we also interviewed 15 businesses based in the North West about what aspirations they have for the future, focusing on the same five core areas. Participants included: The Lowry, Direct Access Group, Serotonin, Duo UK, LOFT UK and One + All – businesses that are all passionate and driven by people who have a crystal vision, a real sense of purpose, and a desire to enact change – whether on a local, regional, national, or international scale.

What this insight has shown us is that the North West has a strong heritage of ambitious, entrepreneurial companies that are intent on growth. Despite the economic, social and geo-political challenges that exist in the market, there is clearly an appetite to seize opportunities and navigate the obstacles and barriers that lie ahead.

It’s certainly the attitude, approach and sense of identity that differentiates the North West and its component parts from other areas of the UK. It’s this personality that drives ambition and a core feature of our report.

“I came to the conclusion that the inhabitants here are of a different spirit which makes them want to enjoy life a little more.” Johann George Büsch, 1777

To read the Ambition 2025 report in more detail click here https://pannonecorporate.com/reports/