Business review of 2022: Conflict in Ukraine overshadowed start of year

In January, businesses across Britain hoped the cloud cast by the worst public health crisis in a century would finally be lifted and they could plan a profitable future without the restraining hand of Government imposed restrictions. In the run up to Christmas 2021, the emergence of the Omicron strain of Covid-19 had raised fears of more lockdowns, which would have crippled a hospitality sector that was still feeling fragile after almost two years of disruption. The Federation of Small Businesses reported nose-diving consumer confidence and hoped that the New Year would make Britons more inclined to open their wallets.

The lockdowns never happened, but there was no shortage of instability at the heart of Government. The ‘partygate’ scandal enraged millions of people who made sacrifices during the pandemic to prevent the NHS from becoming overwhelmed.

Police investigated dozens of events across Government for alleged Covid breaches during lockdown. Downing Street apologised to Buckingham Palace after it emerged parties were held in Number 10 the day before the Duke of Edinburgh’s funeral the previous year.

A limited version of the report into Whitehall parties during lockdown by Sue Gray was published, criticising a “serious failure” to observe the high standards expected of those working at the heart of Government.

However, in early January stock markets around the world hit record highs as fears about the impact of the Omicron variant and global supply-chain issues began to fade. The merger and acquisitions market was also set do roaring trade in 2022.

In the heart of the Yorkshire Dales, a hotel and bar which once provided refuge and company for coachmen and tourists re-opened, which was a sign that the hospitality sector was re-awakening after the pandemic.

The Tennant Arms had closed the previous September due to the impact of the pandemic, but Kirsty Ridge, the MD of INNO Hospitality Collective, was certain its best days were still to come.

She told The Yorkshire Post in January: “It is such a beautiful building with huge potential. It feels wonderful to be reopening a venue that is loved by so many.”

In February, Russia’s brutal invasion of Ukraine turned public opinion around the world against Vladimir Putin’s regime. A barrage of economic sanctions was imposed on Russian banks and billionaire allies of Putin, as petrol prices rocketed. There was also a constant fear that fighting in Ukraine could spin out of control and become a war between Russia and NATO.

All British airlines were banned by Russia from landing at its airports and from crossing its airspace, while flights between the UK and Ukraine were suspended. Communities around Britain welcomed Ukrainians fleeing the conflict. Those who arrived in Yorkshire were far from idle. A Ukranian entrepreneur launched a vodka and sunflower oil import business shortly after finding a new home in North Yorkshire.

Fedir Haidai undertook an epic 14-day journey across Europe with his wife Katya and three-year-old son Misha after finding a sponsor family in Harrogate through the Homes for Ukraine scheme.

He later recalled: “I was on a business trip to Kherson in February when we heard that Russia was assembling soldiers, tanks and military equipment around 100km away. I spoke to my wife in Kyiv and said we must go now.

“She left work, picked up our son from nursery and a few belongings from home. We crossed into Moldova where we were able to stay with friends. A few hours later we watched on TV as the invasion started."

Fedir was forced to abandon two successful businesses that employed 30 people in Kyiv. Within months of arriving in the UK, he had launched three new ventures after joining the North Yorkshire branch of the Institute of Directors (IoD)

“My first impression of Harrogate was it looked like a Harry Potter film, with all the old buildings,” he recalled.

“The war has left many Ukranians unemployed. My business will be paying money into Ukraine and my hope is that will help local companies to employ more people.”

Despite the economic uncertainty, nothing seemed capable of stopping the rise of Sheffield-based WANdisco, a live data company which continued to sign deals with major corporate names

Speaking in February, David Richards, the CEO and Chairman of WANdisco, said: “The WANdisco team has worked incredibly hard to lay the groundwork for a significant acceleration in new customer wins through an effective restructuring of our sales organisation. We are now seeing the benefit of this labour as we look to secure larger deals, in new markets through our growing, market leading product portfolio.”

Channel 4’s arrival in the heart of Leeds has encourage other big corpporate names to establish a base within walking distance.

It’s not just creative companies which are beating a path to Leeds. In January, Panmure Gordon revealed it was opening a new office in Leeds to provide investment banking services to high-growth potential companies and institutional clients across the North of England.

Rich Ricci, the chief executive, said: “Panmure Gordon fully understands the power of having a regional presence and is committed to all corners of the wider northern region from our new base in Leeds. We are bullish about the North of England and its many entrepreneurs and enterprises and we look forward to supporting the success of companies and clients of all shapes and sizes with our extensive advisory and capital-raising capabilities."

In times of turbulence, the prudent approach adopted by Yorkshire’s business leaders will always pay dividends.