prabhu
The Midlands region is experiencing a period of dynamic economic activity, driven by strategic business acquisitions and navigating challenges posed by rising operational costs. Two key developments highlight this momentum: the acquisition of Bee Active, a Stoke-on-Trent-based primary school physical education and activity specialist, by Stockport-based LSC, and the anticipated surge in business rates for prime office spaces in Birmingham, as forecasted by the Colliers Business Rates team.
These initiatives reflect the region’s focus on expanding educational services and addressing economic pressures, contributing to job creation, community engagement, and sustainable growth. The LSC acquisition strengthens its position in the education sector, while the business rates forecast underscores the need for strategic financial planning. This article explores the details of these developments, their economic and social impacts, and their role in shaping the Midlands’ future, emphasizing the importance of adaptability and collaboration in driving progress.
LSC’s Acquisition of Bee Active
LSC, a Stockport-based provider of primary school teacher planning, preparation, and assessment cover and out-of-school clubs, has acquired Bee Active, a specialist in primary school physical education and activity programmes based in Stoke-on-Trent. The acquisition, completed for an undisclosed sum, was self-funded by LSC, marking a strategic expansion in the West Midlands.
Bee Active, founded by brothers Ben and Bobby Mills in 2013, works with over 50 partner schools and delivers more than 30 different holiday and school clubs across Staffordshire. The Mills brothers will remain with the business, supporting its continued growth under LSC’s ownership. The transaction, supported by legal advice from Ashton-Under-Lyne-based Mark Ryan Solicitor, builds on LSC’s entry into the West Midlands market through its prior acquisition of Central Education Group.
This acquisition enhances LSC’s geographic reach, creating a bridge between its operations in Greater Manchester and the West Midlands. The company now employs 285 people, working with 185 primary schools to deliver over 1,400 lessons or sessions per week and 45 holiday clubs, serving 25,000 children. LSC provides specialist teachers in modern foreign languages, drama, physical education, art, and music, offering planning, preparation, and assessment cover to enable regular class teachers to focus on administrative tasks. Additionally, LSC operates before-and-after school and holiday clubs, providing comprehensive educational and extracurricular support.
Founded in 2006 by entrepreneur Craig Brennan, LSC has pursued a strategy of acquiring smaller planning, preparation, and assessment and wraparound childcare providers since its first acquisition in 2018, leveraging its central finance, human resources, and sales and marketing operations to consolidate a fragmented sector.
The acquisition of Bee Active aligns with LSC’s goal of becoming the most highly regarded provider of primary school planning, preparation, and assessment cover in the UK. Brennan emphasised that Bee Active complements LSC’s services, adding new partner schools and a skilled team of physical education educators and holiday club activity leaders. This move strengthens LSC’s ability to deliver high-quality educational programmes, giving children opportunities to achieve their potential.
The acquisition also builds on Brennan’s broader entrepreneurial ventures, including Nurtured Childcare, which acquired Elmore Kindergarten Group in Sheffield with a £2.7 million loan from OakNorth, increasing its turnover to £8.5 million. The Bee Active acquisition enhances LSC’s operational capacity, fostering job creation and community engagement in Staffordshire, where Bee Active’s programmes support local schools and families.
Business Rates Challenges in Birmingham
The economic landscape in the Midlands is complicated by rising operational costs, particularly in the commercial property sector. Businesses occupying prime Grade A office spaces in Birmingham’s central business district are expected to face significant increases in their business rates bills following the 2026 Revaluation, according to the Colliers Business Rates team.
Colliers estimates that office occupiers in Birmingham’s best spaces could see bill increases of up to 26%, driven by a 45% rise in rateable values since the last revaluation. This forecast is based on an analysis of rental values as of 1 April 2024, which showed high demand and limited supply for top-tier office spaces, pushing rental growth.
As a result, rates bills in Birmingham are projected to rise from £16 per square foot to over £22 per square foot, excluding any transitional relief schemes that may be introduced. The head of business rates at Colliers noted that these increases apply primarily to prime office spaces in central business districts, with lower-quality properties experiencing less significant growth in rental values and liability.
Despite the hikes, Birmingham’s rates remain more attractive than London’s, where some areas face bills exceeding £40 per square foot. However, the increases add to the financial burden on businesses already facing rising costs, potentially curbing investment and expansion.
Finance directors and chief executives are advised to budget for these increased occupancy costs and leverage local market expertise to challenge inappropriate rate increases when the draft rating list is published. The 2026 Revaluation, based on rental values from 1 April 2024, reflects market dynamics but poses challenges for businesses in high-demand areas like Birmingham, where economic growth is tempered by rising operational expenses.
Economic and Community Impacts
The LSC acquisition of Bee Active strengthens the education sector in the Midlands, particularly in Staffordshire, where Bee Active’s programmes enhance school offerings and community engagement. By integrating Bee Active’s 50 partner schools and 30-plus holiday and school clubs, LSC expands its reach, providing specialised teaching and extracurricular activities to 25,000 children.
This growth creates jobs for educators and activity leaders, supporting local employment and economic activity. The retention of Ben and Bobby Mills ensures continuity, leveraging their expertise to maintain programme quality while scaling operations. LSC’s centralised operations in finance, human resources, and marketing streamline costs, allowing the company to invest in programme development and new partnerships, further benefiting schools and families in the region.
The business rates surge in Birmingham presents both challenges and opportunities. The 26% increase in rates bills for prime office spaces reflects strong demand for high-quality properties, signalling economic vitality in Birmingham’s central business district. However, this rise could strain businesses, particularly those in sectors like education or services, where margins are tight.
The projected increase from £16 to £22 per square foot requires careful financial planning, as businesses must balance these costs with other expenses, such as staff salaries or facility upgrades. The Colliers analysis suggests that while Birmingham remains more cost-competitive than London, the rising rates could deter expansion unless mitigated by transitional relief or strategic negotiations with billing authorities.
These challenges highlight the need for businesses to adapt to a shifting economic landscape, leveraging professional expertise to manage costs effectively.
Regional Synergies and Broader Context
The LSC acquisition and the business rates forecast reflect broader trends in the Midlands, where strategic investments and economic pressures coexist. LSC’s expansion through acquisitions like Bee Active aligns with the region’s focus on education and community development, fostering skills and opportunities for young people.
The company’s growth from Leeds to London, supported by its Stockport headquarters, demonstrates the Midlands’ role as a hub for scalable businesses. Similarly, the demand for prime office spaces in Birmingham underscores the region’s attractiveness to businesses seeking modern, well-located facilities, contributing to economic growth through rental income and job creation.
The business rates increases, however, highlight the need for resilience in the face of economic challenges. The 45% rise in Birmingham’s rateable values reflects a competitive property market but adds pressure on occupiers, particularly in education and related sectors where LSC operates.
The Midlands’ economic strategies, such as those under the Midlands Engine initiative, emphasise infrastructure and job creation, which align with LSC’s expansion and the demand for office spaces. Collaborative partnerships, like LSC’s work with Mark Ryan Solicitor and Bee Active’s integration, demonstrate how professional expertise can drive successful outcomes, mirroring the need for businesses to navigate rate challenges with expert advice.
Challenges and Opportunities
The LSC acquisition faces challenges in integrating Bee Active’s operations while maintaining programme quality across a larger network. Ensuring staff retention and aligning new schools with LSC’s standards will require careful management.
However, the acquisition offers opportunities to expand services, attract new school partnerships, and create jobs, strengthening the education sector in Staffordshire and beyond. LSC’s self-funded approach and centralised operations provide financial flexibility, positioning it for further growth in a fragmented market.
The business rates surge poses challenges for Birmingham businesses, particularly in budgeting for increased costs. The potential 26% rise could limit investment in expansion or innovation, but opportunities exist to leverage transitional relief schemes or challenge rateable values through professional negotiations.
Businesses like LSC, operating in education, can benefit from exploring cost-saving strategies, such as shared facilities or digital solutions, to offset rising rates. The region’s competitive rates compared to London offer an opportunity to attract businesses seeking affordable, high-quality spaces, driving further economic activity.
Future of Midlands Economic Development
The acquisition of Bee Active by LSC and the anticipated business rates surge in Birmingham highlight the Midlands’ dynamic economic landscape. By expanding educational services and navigating rising operational costs, these developments drive job creation, community engagement, and economic resilience.
Strategic partnerships and proactive financial planning are key to overcoming challenges, ensuring the region continues to thrive as a hub for innovation and growth.
