New details have been unveiled for Universal’s first UK theme park – including plans for the attraction to be open 365 days a year.
Universal Destinations & Experiences – which is owned by Sky’s parent company Comcast – has bought land near Bedford as it plans to build Europe’s largest theme park with millions of visitors per year, as well as a 500-room hotel and dining area.
Economic benefits
Universal’s economic impact analysis, produced in line with HM Treasury guidelines on economic appraisal and published today suggests the attraction will generate nearly £50bn of economic benefits for the UK.
It said the net economic contribution of the potential project for the UK was forecast to be £35.1bn over the construction period and first 20 years of operation.
Up to a further £14.1bn was expected to be generated in extra taxes for the exchequer over the same period.
The analysis suggests the project will generate 20,000 jobs during the construction period which, at its peak, will see 5,000 workers on the site.
Once operational, it is expected to create an initial 8,000 new jobs, rising over time. The company has made a commitment to pay the living wage to employees.
‘The best location we’ve ever seen’
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Universal has acquired almost 500 acres for the site, which is just south of Bedford between Kempston, Wootton, Stewartby and Wixams, with an option to buy up to a further 200 acres.
Image: A map showing the land Universal has purchased
The new park, which would have a construction period of around six years, would be built on land once occupied by Kempston Hardwick brickworks, once the world’s largest brickworks in terms of output, which closed in 2008 and which was demolished in September 2021.
“I can tell you it’s going to be a world-class park with all experiences that people will love based upon the most popular films, video games and stories that people have enjoyed for decades,” said Page Thompson, the company’s president in charge of new ventures.
“We’ve spent the last decade looking all over Europe and the United Kingdom for locations, and we think this is the best location we’ve ever seen.”
Universal Destinations & Experiences currently has five theme parks around the world – in the United States, Japan, China and Singapore.
Disneyland Paris, which with the associated Walt Disney Studios Park is currently Europe’s biggest theme park, attracts around 15 million visitors per year.
New details
“Our phase one plans consist of a theme park, a 500-room hotel and a dining area that people can come to even if they don’t have a theme park ticket,” Mr Thompson told Sky News.
“Over time, I would expect the number of hotels to grow.
“Our intention is that this park would be open 365 days a year, just like all of our other major theme parks.
“We have a whole series of special events, like our Halloween Horror Nights and carnival parties… and it just allows us to attract people throughout this time.”
Universal said evidence from its other theme parks suggested that for every job supported within the parks at least 1.5 further jobs could be supported in the supply chain and neighbouring parts of the economy – leading to its expectation of a net additional 20,000 jobs.
Plenty of competition
The investment is not without risks and not least because of its scale.
Of Europe’s 20 most visited theme parks, four – Legoland Windsor, Alton Towers, Chessington World of Adventures and Thorpe Park – are in the UK, all owned by the former FTSE-100 giant Merlin Entertainments. Their combined visitor numbers annually come to around half of what Universal is targeting.
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Locally, not far from the proposedBedfordshire site is the Harry Potter Experience at the Warner Bros studio tour near Watford, while there is Woburn Safari Park to the immediate north and Whipsnade Zoo to the immediate west of Luton.
There is no shortage of quality options for family days out. Further afield Europe already has more than 1,000 theme and amusement parks, many of them owned by Merlin, renowned for its astute management.
The weather issue
A third factor, potentially, is the weather. This is something that already handicaps a lot of theme parks in northern Europe, such as Liseberg in the Swedish city of Gothenburg, the Tivoli Gardens in the Danish capital Copenhagen and the original Legoland, in the Danish city of Billund, which close for some or all of the winter. So does Phantasialand, one of Germany’s biggest and most popular attractions.
Universal Destinations & Experiences, however, is thought to be undeterred by the English weather and points to the fact that the weather is not always perfect in other parts of the world in which it operates, most notably China and Japan.
The Paris experience
The company also appears undeterred by the experience of Disney in Paris.
The original Euro Disney was loss-making for many years – partly due to mismanagement and partly due to a misunderstanding of what European and particularly French consumers were looking for – and it has only really been since it was fully consumed by the Walt Disney Company, in 2017, that it has been effectively run.
Transport challenges
Another big risk is the transport links. Universal Destinations & Experiences – the name was changed last year from Universal Parks & Resorts to better reflect the kind of services customers will be offered in future in both the physical and virtual worlds – has selected the site primarily for its rail and road links to London and, with one in three visitors expected to come from overseas, for its proximity to Luton Airport.
Yet those links are not currently up to handling the kind of visitor numbers Universal Destinations & Experiences is expecting.
The M1, the main road link to London, is frequently congested around the Luton turn-off at junction 10 and the road links from there to the site in need of improvement.
Accordingly, Universal Destinations & Experiences will be seeking government incentives to invest in local road and rail links.
Support could also come from East West Rail, the proposed new main line railway connecting East Anglia and South Wales, the first phase of which is a line between Oxford and Cambridge and for which a new station at Kempston Hardwick – whose existing station backs onto the land the park would operate – has been proposed.
The planning process
Riskiest of all, perhaps, is the planning process. Local businesses and MPs are supportive while both Jeremy Hunt, the Chancellor and Mark Harper, the Transport Secretary, have been briefed on the project. Planning proposals have been submitted and Universal Destinations & Experiences has held talks with Bedford Borough and Central Bedfordshire Councils.
However, Mr Thompson confirmed that Universal Destinations & Experiences is seeking planning permission via a so-called special development order – which would take the decision out of the hands of the local authorities and instead leave the final decision on planning consent with the Department for Levelling Up, Housing and Communities.
A roll of the dice
So this is a big roll of the dice by Universal Destinations & Experiences.
The investment – the first phase of which will be several billion pounds – will take many years to pay off while thrill-seekers should probably not expect the resort to be up and running much before the end of the decade.
However, starting with a blank sheet of paper as it opens its first European venue, Universal Destinations & Experiences has the opportunity to bring something genuinely new not just to the UK but to Europe.
The name change made by the business last year reflects the fact that, in future, the business expects to be offering branded entertainment, culinary, gaming and consumer product experiences that go a lot further than the traditional theme park and resort offerings.
There could even be experiences at the resort which have yet to be conceived. It could be quite the ride.
BP has signalled an accelerated effort to bring down costs ahead, refusing to rule out further job losses as artificial intelligence (AI) technology helps drive efficiencies.
The company, which revealed in January that it was to axe almost 8,000 workers and contractors globally as part of a cost-cutting plan, said alongside its second quarter results that it was to review its portfolio of businesses and examine its cost base again.
BP is under pressure to grow profitability and investor value through a shareholder-driven refocus on oil and gas revenues.
Just 24 hours earlier, the company revealed progress through its largest oil and gas discovery, off Brazil’s east coast, this century.
BP said it was exploring the creation of production facilities at the site.
It has made nine other exploration discoveries this year.
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BP’s share price has lagged those of rivals for many years – a trend that investors have blamed on the now-abandoned shift to renewable energy that began under former boss Bernard Looney.
Image: BP boss Murray Auchincloss is facing shareholder pressure to grow profitability
His replacement, Murray Auchincloss, has reportedly come under shareholder pressure to slash costs further, with the Financial Times reporting on Monday that activist investor Elliott was leading that charge based on concerns over high contractor numbers.
Mr Auchincloss said on Tuesday that AI was playing a leading role in bolstering efficiency across the business.
In an interview with Sky’s US partner CNBC, he said: “We need to keep driving safely to be the very best in the sector we can be, and that’s why we’re focused on another review to try to drive us towards best in class… inside the sector, and technology plays a huge part in that.
“Just technology is moving so fast, we see tremendous opportunity in that space. So it’s good for all seasons to drive cost discipline and capital discipline into the business. And that’s what we’re focused on.”
When contacted by Sky News, a BP spokesperson suggested the company had no plans for further job losses this year and could not speculate beyond that ahead of the conclusions of the new cost review.
BP reported a second quarter underlying replacement cost profit of $2.4bn, down 14% on the same period last year but well ahead of analyst forecasts of $1.8bn. Much of the reduction was down to lower comparable oil and gas prices.
It moved to reward investors with a 4% dividend increase and maintained the pace of its share buyback programme at $750m for the quarter.
BP said it was making progress in driving shareholder value through both its operational return to oil and gas investment and cost reductions, which stood at $1.7bn over the six months.
Shares, up 3% over the year to date ahead of Tuesday’s open, were trading 2% higher in early dealing.
Derren Nathan, head of equity research at Hargreaves Lansdown, said of the company’s figures: “Production increases, strong results from trading activities, favourable tax rates, and better volumes and margins downstream all played their part.
“It’s also upping the ante when it comes to exploration and development, culminating in this week’s announcement of an oil find at the offshore Brazilian prospect Bumerangue.
“Its drilling rig intersected a staggering 500m of hydrocarbons. Taking into account the acreage of the block, it’s given BP the confidence to declare the largest discovery in 25 years.”
British Land, the FTSE 100 commercial property company, has hired lawyers to scrutinise rescue deals for the high street retailers Poundland and River Island.
Sky News has learnt that Hogan Lovells, the City law firm, has been instructed by British Land to seek further information on restructuring plans that the two chains say are necessary for their survival.
British Land owns 20 Poundland stores, 13 of which would see rents compromised under its restructuring plan, while it is River Island’s landlord at 22 shops – seven of which would be affected.
Retail industry sources said that British Land had already struck deals to re-let some of the affected Poundland sites.
The company, which has a market capitalisation of ? and is one of Britain’s biggest commercial landlords, is understood to have abstained on the River Island restructuring plan vote.
The appointment of Hogan Lovells does not amount to a decision to formally challenge the restructurings, but that remains an option in both cases, according to industry sources.
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Hogan Lovells has been engaged on a string of previous challenges to retailers’ rescue deals on the basis that they unfairly compromised property-owners.
About 20,000 jobs would potentially be put at risk if Poundland and River Island were to collapse altogether.
Both face sanctions hearings in court this month which will determine whether their rescue deals can go ahead.
Even if the proposals are rubber-stamped, about 100 stores in aggregate across the two chains will be permanently closed.
The FCA determined that Mr Woodford and the fund “made unreasonable and inappropriate investment decisions” between July 2018 and June 2019.
The fund’s sale of liquid assets and acquisition of illiquid ones meant WEI was unable to meet rules in place at the time, whereby investors should have been able to access their funds within four days.
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“WIM and Mr Woodford did not react appropriately as the fund’s value declined, its liquidity worsened and more investors withdrew their money,” the FCA said.
“The FCA has concluded that Mr Woodford held a defective and unreasonably narrow understanding of his responsibilities.”
Steve Smart, its joint executive director of enforcement and market oversight, added: “Being a leader in financial services comes with responsibilities as well as profile. Mr Woodford simply doesn’t accept he had any role in managing the liquidity of the fund.
“The very minimum investors should expect is those managing their money make sensible decisions and take their senior role seriously.
“Neither Neil Woodford nor Woodford Investment Management did so, putting at risk the money people had entrusted them with.”
Both Mr Woodford and WIM have referred the case to the Upper Tribunal for appeal.
He was yet to comment.
Mr Woodford was once considered the star stock picker of his generation.
He launched his own investment business after building up a reputation for delivering stellar returns while at Invesco Perpetual.
At its height in 2017, the Woodford Equity Income Fund had a value of over £10bn, but by the time of its suspension in June 2019, this had sunk to as low as £3.7bn.
While a redress scheme enabled investors to get some cash back, around 300,000 people lost money through the fund’s collapse.