Legal & General Assurance Society Limited has agreed a fourth and final buy-in policy with the British Steel Pension Scheme, totalling £2.7 billion, under which the remaining 40% of liabilities were insured. The move makes the scheme the largest in the UK to have fully insured all its members’ benefits.
Legal & General has now insured £7.5 billion of the Scheme’s liabilities, securing the benefits of about 67,000 retired and deferred members, many of whom are in North Lincolnshire and Yorkshire.
The announcement marks the Scheme’s fourth transaction since November 2021. Through a series of phased buy-ins over this 18-month period, the Scheme has now insured all its liabilities with Legal & General and becomes the largest scheme in the UK to have secured full insurance.
By completing this transaction, the Scheme has now reached a funding level that will allow the Trustee to make additional payments (referred to as “restoration”) to members under the agreement reached when the Scheme was set up.
To insure benefits at this scale, Legal & General worked in partnership with the Trustees, Sponsor, the Scheme’s in-house teams and advisors. This included establishing an umbrella contract with the Trustees in 2021, which allowed them to complete each transaction quickly and easily on pre-agreed contractual terms.
It also saw the Scheme’s in-house investment management transfer to Legal & General Investment Management in 2022 to implement a strategy to improve the Scheme’s funding level by aligning investments with L&G’s pricing.
Packed house will hear from Debbie Robinson in Humber Business Week highlight
One of the highlight events of Humber Business Week has already confirmed a full house after tickets were snapped up weeks in advance.
It’s The Elevenses chat between Biz Week founder Paul Sewell and Debbie Robinson, which will be streamed on the Humber Business Week website on Tuesday 6 June.
However, the live session at Sewell Studio on Tuesday 30 May is at capacity with spaces now only available in the event of cancellations. Paul said: “It says everything about the calibre of this guest that every seat was booked weeks ahead. “As Central England CEO and European Vice President of the Co-op, Debbie has to be in Dubrovnik for their conference and that clashes with Biz Week, but she’ll come to us the previous week and I’m looking forward to having a natter with someone who demonstrates that you can have it all – a good marriage, great family, mother and grandmother, athlete and successful businesswoman. “Many women have to choose at some point in their life between career, home, fitness but Debbie has achieved on all fronts.” Debbie comes from Burnley and is a passionate retailer with over 40 years’ experience in the retail sector. Prior to taking on the role at Central England Co-operative in April 2019, Debbie was the UK Managing Director at SPAR. Earlier in her career she has also worked at the Co-op, Marks and Spencer and W H Smith and she is also a board member of the British Retail Consortium, Vice-President of Euro Co-ops, and a member of the advisory panel at Diversity in Retail. Paul brought the Yorkshire International Business Convention (YIBC) to Hull and founded Humber Business Week in 2005. As chair of Sewell Group he works across sectors including construction, property, investments, filling stations and convenience stores. He met Debbie earlier this year during a retail industry visit to Japan and South Korea. He said: “I found her to be a fabulous role model with a wonderful story to tell. She stepped into a role leading a modern, forward-looking organisation employing over 8,000 people and working in food, funeral services, and property investment, with over 400 trading outlets across 16 counties. “Debbie has driven change through her belief in co-operative ethics and values and her advocacy of all aspects of inclusion. She has championed sustainability and Fairtrade, implemented improvements in diet and health including food pack nutritional information, and developed higher standards of animal welfare in the food industry. “Debbie was heavily involved in campaigning which led to better protection for retail workers. She also instigated the launch of a Co-operative International Development Fund to help move global communities out of poverty. “It will be fascinating to talk about how you do these things in an organisation which dates back to the days of Charles Dickens, and how you also find the time to complete 20 consecutive London Marathons!” Elevenses was launched at the 2021 edition of Humber Business Week as a series of informal chats with key figures from business, politics, culture and sport. Guests have included political heavyweights Alan Johnson, Alastair Campbell and Baroness Warsi, broadcaster Steph McGovern and playwright John Godber. Paul said: “I don’t go out looking for guests. I bump into people as I do my day job and if I think they’re right I ask them to come to Hull. We’ve had a lot of fun, illuminating chats over the years. Debbie Robinson has a much lower profile than you would expect. She also has some strong views on all sorts of issues.” The stream will be posted at 11am on Tuesday 6 June. To register visit https://www.humberbusinessweek.co.uk/Law firm raises £250,000 to continue its expansion
A Yorkshire law firm has raised £250,000 from NPIF – Mercia Debt Finance, which is managed by Mercia and is part of the Northern Powerhouse Investment Fund, to support its next phase of expansion.
Tyr, a commercial law firm based in Leeds city centre, was set up in 2019 by three partners who had all previously worked in ‘big six’ law firms. It now has a 45-strong team including 14 partners and serves a client list ranging from FTSE 100 companies to SMEs and high-net worth individuals.
The funding will provide additional working capital to enable it to recruit new lawyers at all levels, expand its range of services and strengthen its operations and financial team. The firm expects to create at least 10 new jobs in the next two years.
Alistair Kennedy, senior partner, said the firm aimed to provide a bespoke service working in partnership with its clients. “As legal services have become increasingly commoditised, there is a risk that clients feel like numbers rather than valued customers. Our lawyers have experience working in leading practices and dealing with complex cases and focus on providing a bespoke service with a personal touch.
“We also ensure that we give our lawyers the time and space to deliver the best possible service to clients. We are delighted with our growth so far. The funding will help us take business to the next level.”
David Wright of Mercia added: “Tyr has quickly established itself in the marketplace and the partners’ vision has been well received by clients. Having achieved ten-fold growth over the past four years, the partners now have a clear strategy to take the business forward. The funding will enable them to put their plans into practice.”
Huge net zero boost as carbon storage licences offered for award
The drive to net zero emissions has taken a significant step forward with the offer of awards for 20 carbon storage licences at offshore sites, including some near Aberdeen, Teesside, Liverpool and Lincolnshire.
The North Sea Transition Authority (NSTA) launched the UK’s first-ever carbon storage licensing round in June 2022, with applications closing in September. The 20 licences in total are around 12,000 square kilometres in size, a little bigger than Yorkshire, the UK’s largest county.
Once the new storage sites are in operation – and in some cases first injection could come in as little as six years – they could make a significant contribution to the aim of storing up to 30 million tonnes of carbon dioxide (CO2) per year by 2030, approximately 10% of total UK annual emissions, which were 341.5 million tonnes in 2021.
The offers come in the wake of the Chancellor’s Budget announcement that the Government is allocating up to £20 billion in support of developing carbon capture, usage and storage, starting with projects in the East Coast, Merseyside and North Wales.
He added that this would pave the way for CCS as the UK approaches 2050. This first carbon storage licensing round is likely to be the first of many as up to 100 CO2 stores could be needed for the UK to meet the net zero by 2050 target.
The Intergovernmental Panel on Climate Change report in April 2022 emphasised that carbon capture and storage (CCS) technologies are necessary for power and industry sectors to reach net zero emissions. It is also supported by the Climate Change Committee’s Sixth Carbon Budget which emphasises the vital role that carbon storage must play in the UK’s path to net zero.
The licences include a range of geological store types and were selected following a process which considered attributes such as the geology, proximity to existing infrastructure – as is found at Bacton off the coast of Norfolk – and links to industrial clusters which are expecting carbon storage to help meet decarbonisation goals.
The need to share offshore space with other users of the seabed such as wind developers and petroleum operations was also considered as part of the NSTA’s licensing process, recognising the need for both early engagement and continued collaboration between existing licence and leaseholders where an area of the seabed is a key resource area for different sectors.
The future success of the CCS industry requires close co-operation between a number of organisations, and once a licence has been awarded by the NSTA, the licensee also needs to obtain a seabed lease from The Crown Estate or Crown Estate Scotland before a project can progress. Further consents and approvals will be required ahead of any appraisal activity taking place on carbon storage licences.
Stuart Payne, NSTA Chief Executive, said: “This is an exciting and important day. As a nation, we cannot meet our decarbonisation targets without carbon storage. This is net zero delivery in action.
“The awards we offer today could store around 10% of the UK’s emissions, and through our engagement with applicants, we will have committed work plans in place such as seismic surveys and drilling of wells – we are working with industry to move at real pace.
“The UK’s offshore waters remain the crown jewel of our energy mix, providing energy security, emissions reduction and carbon storage. This will require more and more integration and collaboration in a crowded space, and we are working closely with governments and agencies such as The Crown Estate and Crown Estate Scotland to ensure we maximise this amazing potential.
“We look forward to working with these licensees to make these projects a reality as soon as possible and to opening more carbon storage rounds in the near future – my thanks to our teams and industry for their great work, but this is just the beginning.”
Planning consent secured for next phases of Whitehall Riverside scheme in Leeds
Leeds-based property investor, car park and hotel operator, Town Centre Securities PLC (TCS), has secured planning consent for the next phases on the flagship mixed-use Whitehall Riverside development site in Leeds including two office buildings, a 478 space CitiPark car park and a hotel/aparthotel.
The plan forms part of the wider regeneration of the strategically located riverside scheme and could see up to 235,000 sq ft of Grade A, smart and energy efficient office space along with a state-of-the-art, multi storey CitiPark car park and travel hub with renewable energy facility.
The residential component of the masterplan, which is being delivered by Glenbrook and Legal & General, recently commenced on site providing 500 new homes.
Craig Burrow, group property director, TCS said: “After a lengthy process we are pleased to reach this milestone in the project and secure detailed and outline planning consent for the remaining plots.
“Our masterplan has been designed for modern needs, but with flexibility front of mind to adapt to the changing requirements of workspace, residential, electric vehicles, and the visitor economy. It will deliver a truly mixed-use scheme and a unique neighbourhood in the West End of the city which is now enjoying increased activity and development.”
Ben Ziff, Managing Director of CitiPark and TCS board director, said: “As one of the UK’s leading providers of EV charging technology, we are excited to be bringing forward this pioneering, cutting-edge CitiPark multi-storey car park, travel hub and a renewable power facility, and are aiming to progress this early next year.
“This newest and most innovative branch will have the capacity to be the largest EV charging hub in the North of England, and we are confident that this will not only enhance visual impact to this key route into the city, but provide a future proof, sustainable building with value in mind for residents, commuters and visitors to the great city of Leeds.”
Senior team completes management buy out at Leeds packaging firm
Leeds-based Fenton Packaging Solutions has been sold by way of a management buy out (MBO). Ownership of the company has passed from former Managing Director Bob Clarke to sales development director Chris Warren, supply chain director David Wilson, and finance director Sharon Dakin – who are now joint managing partners.
“Over the last 18 months, Bob Clarke had very much stepped back from the day to day running of the company with a view to considering a number of options regarding the sale of the business and to plan for his semi-retirement,” says finance director Sharon Dakin. “After considering a number of selling options, the MBO option was viewed by Bob as the preferred route for his exit from the company.
“As an MBO team we are very pleased to assume responsibility and ownership of the company as we feel that our continued involvement provides both a balanced and stable management platform to support the business moving forward. We are also a known, committed and visible management team and as such have been able to positively contribute to the improvement of the company over the last two years.”
Last year, the company relocated to a 65,000 sq ft site in Leeds and rebranded as Fenton Packaging Solutions. The company had invested over £1 million to streamline its operations, and put a new fleet on the road. A year later, the company has continued to expand and is now investing in the future.
“We recognise that the most important element of any business is its people,” says David Wilson. “We currently employ just over 40 full-time staff members, and we are now introducing a graduate program.
“We have also begun the process of becoming an accredited Investors in People organisation. In addition, we are actively investing in the latest and most advanced software systems to better manage the business, and that will also help us attract young talent, which will help secure Fenton’s future.”
The company is also planning to expand into international markets.
“Fenton Packaging began over 75 years ago, so together, the MBO, relocation, and rebranding – coupled with major investment in systems and people – represents a very exciting step in our long history,” concludes Sharon Dakin. “As managing partners, David, Chris and I are excited about the future and feel sincerely that that MBO solution is the best possible outcome for the business in the long-term.”
KCOM boss urges business conference to run event in Hull
Hull-based KCOM is backing the city as the ideal place for investment as a major national business conference.
Speaking at The UK’s Real Estate Investment & Infrastructure Forum in Leeds, company CEO Tim Shaw Mr Shaw said: “As a company with deep roots in the region we know what a fantastic place it is to for businesses to invest and thrive. With a supportive local authority, our world leading full fibre infrastructure, a great pipeline of tech-savvy talent coming through from local colleges, affordable housing and high standard of living, I’d urge all investors to take a closer look at Hull.” Hull City Council welcomed KCOM’s participation in the event saying the broadband provider’s commitment to the region showed how private investment in the region could flourish. Alex Codd, Hull City Council’s assistant director for economic development and regeneration, said: “We’re really looking forward to attending UKREiiF next week. It’s a fantastic opportunity to showcase what we have in Hull and what we have to offer for potential investors. “One of our unique selling points is being the first fully connected city and that was made possible by KCOM building a world-class full fibre broadband network in Hull.” The three-day event, which is being held at the Royal Armouries in Leeds, is attended by 6,000 delegates including 1,500 investors and developers. The Forum is supported by a high number of regional combined authorities, local councils and Government departments – as well as the largest developers and investors from across the UK and internationally. This event aims to gather all the key players, influencers and decision makers within the investment and real estate sectors to highlight investment and development opportunities in cities such as Hull, while creating new relationships to drive economic growth through development and regeneration. Founded in 1904, KCOM is one of Hull’s largest local employers and has invested around £200m in the area’s full fibre broadband network in the past decade and continues to play a leading role in the local community.Record number of companies raising money through Enterprise Investment Scheme
New figures published by HMRC show that the number of companies raising money through the Enterprise Investment Scheme (EIS) grew to a record high of 4,480 in 2021/22, a 19% rise compared to the previous year, with funding increasing to £2,305m, up by 39% over the same period.
The figures show that usage of the EIS bounced back following the pandemic and even surpassed the levels prior to the pandemic. In 2019 to 2020, 4,215 companies raised a total of £1,905 million of funds under the EIS scheme.
EIS investment in 2021/22 was largely concentrated in the Information and Communication sector which accounted for £785m of investment (34% of all EIS investment).
The Enterprise Investment Scheme (EIS) offers tax reliefs to individuals who subscribe for new shares in a qualifying company. This allows EIS companies to raise up to £5m each year to grow their business, up to a maximum of £12m over a company’s lifetime.
There are a number of qualifying rules for EIS. For example, the scheme applies only to companies that have a permanent establishment in the UK, are not listed on the stock exchange and do not have gross assets worth more than £15m before the EIS shares are issued (and not more than £16m immediately afterwards). The relief also only applies to new or relatively new companies, as EIS investment can only be received if it’s within seven years (10 years for knowledge intensive companies) of a company’s first commercial sale.
The new data also shows a similar trend with respect to start-up companies raising funds under the Seed Enterprise Investment Scheme (SEIS). The number of companies raising money through the SEIS also grew to a record high of 2,270 in 2021/22, an 8% rise versus the previous year, with funding increasing by 16% over the same period.
The Seed Enterprise Investment Scheme recently received a boost with increased limits from 6 April 2023. Under the SEIS, companies up to three years old (previously two years old) can receive a maximum of £250,000 (previously £150,000) of investment. Companies wishing to benefit from the SEIS must not have gross assets over £350,000 (previously £200,000) when the shares are issued and have fewer than 25 full-time employees. SEIS funds raised in 2023/24 are therefore expected to increase still further to provide valuable support for start-ups and young companies.
Commenting on the new figures, David Brookes, tax partner at accountancy and business advisory firm BDO, said: “The latest figures show an encouraging rebound in the numbers of companies benefitting from the Enterprise Investment and Seed Enterprise Investment Schemes. Both offer valuable funding opportunities for new and growing businesses, particularly in the tech space, which are so crucial in helping to drive economic growth.
“However, there are growing numbers of advance assurance applications for both EIS and SEIS that are being rejected which is a cause for concern. While it’s absolutely right that the tax authorities are alert to any attempt from parties to benefit from tax reliefs they are not entitled to, there is a growing sense that officials are being a little over-zealous in their interpretation of the rules which is hindering spin outs and follow-on funding for older companies.
“The complexity of both schemes and their qualifying criteria are also barriers to greater take-up, and there is a strong case for reform. For example, although the gross asset limit for SEIS companies has increased from 6 April 2023, the gross asset test for EIS qualifying companies remains at £15m. This was a figure first introduced 25 years ago. Raising this threshold to take account of inflation could provide an important source of EIS funding for ambitious and growing mid-market businesses that are currently unable to access growth capital.”
UK steelmake slumps to lowest level since the Great Depression
UK Steel, the trade association for the UK steel industry, says that high energy prices and weak demand are taking an enormous toll on UK steel production, with the amount of steel made in the UK during 2022 dropping to its lowest level since the Great Depression.
Production fell by 17% on the year to 6 million tonnes, says UK Steel, and efforts to boost the sector’s competitiveness need accelerating.
Steel trade activity reduced both in the UK and globally as supply chains were disrupted and demand has reduced. In 2022, UK market demand for steel fell by 15% to 8.9mt, only slightly higher than 8.6mt in 2020 during Covid, raw material costs remained at historically high levels and energy prices soared.
Gareth Stace, Director General of UK Steel, said: “High costs are hard to swallow and force production levels down. This February, Government announced policy plans for renewable levies, capacity charges and network costs to alleviate energy cost burdens for steel producers and improve competitiveness, but regulations may not all take effect until 2025.
“Government needs to back British-made steel now more than ever. The already challenging demand environment is only worsened by elevated energy prices. Steel companies in the UK are footing electricity bills of 60% more than our direct competitors in Germany.
“Statistics show the stark reality of how UK steel is suffering. British-made steel plays a key role within supply security against conflict and political sanctions. This is exactly why we are asking Government to implement its highly welcomed energy policy measures by April 2024.”
White Rose Rail Station takes shape as Spencer Group delivers for partners
Rail infrastructure specialist Spencer Group is making significant progress on the construction of a £26.5 million station in South Leeds.
Situated between Morley and Cottingley, the White Rose Rail Station will be located on the main trans-Pennine route to Manchester via Huddersfield.
It will be a two-platform station providing improved access to the adjacent White Rose office park, shopping centre and bus interchange.
The fully accessible station will include cycle storage next to the White Rose Park, along with improved walking and cycling routes between Cottingley, Churwell and Millshaw, and the White Rose Shopping Centre and bus interchange.
Hull-based Spencer Group is delivering the project for White Rose owner Munroe K in conjunction with Network Rail, the West Yorkshire Combined Authority, Leeds City Council and the Department for Transport.
Construction of the new station, which will replace Cottingley Rail Station, is scheduled to be completed later this year and is expected to open in early 2024.
Joe Bennett, Operations Director at Spencer Group, said: “We’ve been working closely with key stakeholders to bring the White Rose Rail Station to fruition and, as a local contractor, are pleased to play our part in helping our infrastructure in the North.
“Over the coming months, the commitment and hard work the partnership and key stakeholders have demonstrated in getting the scheme to this point will be rewarded with significant physical progress on the site.
“The erection of the lift cores and link bridge walkways, connecting the platform works already undertaken, will transform the look of the project and enable people to see the facility for the first time. It’s an exciting time for all involved.”
Mayor of West Yorkshire, Tracey Brabin, visited the site to see the progress being made on the project.
The visit included a first look at the steel frames for the new station buildings, which will house two lifts and the stairs to the station platforms. This work follows the installation of the station platforms on the railway line embankment.
Ms Brabin said: “We’re determined to create a stronger, fairer and better-connected region so that everybody has the same opportunity to get on in life. Investing in transport that supports economic growth is absolutely vital.
“I’m proud that together we’re investing £26.5 million in a new White Rose Rail Station.
“This investment will bring new opportunities for people in Cottingley, Churwell, Millshaw, Morley and beyond by boosting transport links and local regeneration, including housing and job growth.”
The scheme has received funding from the Leeds City Region Transforming Cities Fund, the Leeds Public Transport Investment Programme and £5 million from the Department for Transport’s New Stations Fund, alongside contributions from Munroe K.
David Aspin, CEO of Munroe K, said: “For a long time now I’ve had the ambition to bring a fully accessible new station to White Rose Park and to see it nearing completion is immensely rewarding.
“Delivering the UK’s very first railway station through public and private sector partnership has been a real testament to everyone involved.
“The new station can be the catalyst to unlock real economic development in this area of south Leeds, providing our local communities with better links to education and employment opportunities. Its location at the White Rose Park makes it accessible to many more people living in the area and beyond.”
Students from nearby Elliot Hudson College have taken part in work experience with Spencer Group at the site to learn more about the project and careers in the industry.
Rosie Quashie, Vice Principal at the college, said: “Work experience placements such as those our students have been able to access at the White Rose Rail Station construction site are so important.
“Working with the staff at Spencer Group has provided our students with a wide range of transferable employability skills and enabled them to gain invaluable experience of the scheme and the different career opportunities in engineering and construction, and this has really supported them in deciding their career destinations after leaving Elliot Hudson College.
“Many of our students rely on public transport and will benefit from the new station when it opens next year.”
