- What will be the fixed unit prices (and standing charges) from October 1?
- What practically will now change – will energy retailers suspend high quotes and contract offers and recalculate from October 1?
- Will those who have accepted hugely increased bills in recent weeks be able to renegotiate to bring their bills down to reasonable levels?
- As a small business normally gets quoted for at least 12 months, does that new quote include 6 months at a low rate and 6 months at a high uncapped rate? How does the energy retailer know who to quote extra support to, for the 2nd six-month period?
‘We need detail on energy price announcement’, say small firms
He said: “Constricting the scale of energy bills for small businesses is unprecedented; we now have a high-level commitment in principle to help businesses get through the winter intact. Done right, this will be a lifeline – protecting jobs, communities and future economic recovery.
“However, the announcement is very high-level and sparse on detail so we will be working with the new Government to clarify what happens next. Small businesses’ instant reaction is that this is not enough information, yet, for them to plan.”
Today’s statement appears to leave a number of questions unanswered, including:
Legal & General commits £150m to finance building 5,500 affordable homes
Legal & General announces that it has signed a £150m Social Loan whereby Use of Proceeds will finance 5,500 affordable homes to help address the significant demand for affordable housing across England.
The loan was arranged by BNP Paribas, HSBC UK, and SMBC Group, in a transaction with Legal & General Affordable Homes. It has been structured as a Social Loan, available on projects that help tackle pressing social issues such as the delivery of more affordable housing.
This is the first UK insurance syndicated Use of Proceeds social loan, and it adheres to the Loan Market Association Social Loan Principles, with all schemes screened by LGAH’s Scrutiny Panel, who oversee the selection, evaluation and monitoring of investments. BNP Paribas acted as Social Loan Co-ordinator, Joint Lead Arranger and Lender; HSBC UK as Facility and Security Agent, Joint Lead Arranger and Lender; and SMBC as Joint Lead Arranger and Lender, with each bank committing £50m.
Chris Hewitt, Financial Director of Legal & General Affordable Homes, said: “Since launching four years ago, Legal & General Affordable Homes has deployed institutional capital at pace to accelerate the delivery of affordable homes across the country.
“In the last few years, Legal & General has committed over £1bn of its own retirement funds to these efforts, and they will be used alongside this innovative social loan structure. This product reinforces our commitment to the sector, and our work to help reduce inequalities in communities across the country. Whilst we are pleased with our progress, 1.4million households remain on social housing waiting lists across the UK and there are still major challenges to address this shortfall.
“With a new government being formed, we hope the affordable housing agenda will be central to any new policy and look forward to continuing to work in partnership with the sector to deliver the housing the country so desperately needs.”
LGAH was launched in 2018 to increase the supply of affordable housing and now operates over 2,500 homes across the country, with a further 6,500 in its pipeline. As one of the Government’s strategic partners on the provision of affordable housing, LGAH’s mission is to significantly increase the supply, sustainability, and quality of affordable homes. Its aim is for the provision of its services to help reduce inequalities, improve people’s health and well-being, making a positive contribution to the communities it serves. The new loan will help accelerate the delivery of homes for social rent, affordable rent and shared ownership across the country.
Her Majesty, Queen Elizabeth II, dies aged 96
The longest reigning monarch of the United Kingdom, Queen Elizabeth II, died yesterday (8th September 2022) at the age of 96. Ruling the country for over 70 years with poise and dignity, tributes from across the region, the country and the globe itself continue to pour in.
The mourning period is anticipated to last 10 days, and will include many seats of power across the United Kingdom, with Queen Elizabeth II’s body expected to be put to rest at Westminster Abbey on the ninth day.
Fertiliser firms signs three-year extension contract with ABP
ADM Agriculture, one of the largest fertiliser suppliers in the UK, has signed a three-year extension agreement with ABP for the import, handling, bagging, and processing of fertiliser at the port company’s Bulk Park at the Port of Immingham. It will see extensive fertiliser volumes come through the UK’s largest port by volume of tonnage.
Simon Bird, Regional Director of the Humber ports said: “ADM are a long-term customer of ours, a premier global human and animal nutrition company and one of the world’s largest agricultural processors. This new partnership highlights the port’s key location in global trading and that we remain the port of choice for many.”
Calum Findlay, Head of Fertiliser for ADM, said: “The Port of Immingham is key to the on-going development of our UK fertiliser business, and we are delighted to be in partnership with ABP.”
ADM Agriculture supply an extensive range of fertiliser products. ABP’s Immingham Bulk Park offers more than 1.3 million sqm of undercover storage. In 2018 it won ‘Best Dry Bulk Port’ at the International Bulk Journal awards.
BRM appoints two new regional heads of real estate
Regional law firm BRM has named two new regional heads of real estate to lead the teams at its Sheffield and Chesterfield offices.
Director James Alger has been appointed as head of real estate for BRM’s Sheffield office, with director Sanjeev Batra the new head of real estate at Chesterfield.
Having re-joined BRM in 2019 James Alger is an experienced commercial property lawyer, who has contributed to BRMs continued growth and success.
James said: “Over the years we have been working hard to promote and build a brand with an enviable reputation in the region.
“We believe there are several fantastic opportunities in the regional property market and feel we can offer a high-quality commercial offering to compete with national and local firms.”
Sanjeev Batra specialises in acquisitions, sales and leasebacks, disposals, security transactions and landlord and tenant issues. He joined BRM in 2012 and is based in the BRM Chesterfield office.
Sanjeev said: “At BRM we are continuing to work to develop a vibrant and dynamic property department, supporting new clients and working with the firm’s current clients to support their business.”
Adrian Sheehan, head of real estate at BRM, said: “These are well deserved promotions for two of the most highly regarded Real Estate lawyers in the region. It gives great pride to see them both evolve into market leaders during their time at BRM.”
Music licensing company moves into iconic Tailors Corner building
The Leeds office of global property consultancy Knight Frank has brokered a significant deal at Tailors Corner, the iconic central Leeds building which was originally the home of Hepworth Tailors.
The deal swiftly follows the completion of a £5million refurbishment of the 25,000 sq ft building, which has created some of the finest flexible Grade A office space in the city.
Music Vine, a music licensing company which represents some of the most exciting independent musicians in the world, has taken 1,657 sq ft of office space on the second floor. The rent is £34 per sq ft.
Tailors Corner, formerly known as Wellington Park House, was bought for an undisclosed sum by property developers Boultbee Brooks in 2018. It is situated on the corner of Wellington Street and Thirsk Row.
Victoria Harris of global property consultancy Knight Frank in Leeds, who are marketing Tailors Corner, said: “Tailors Corner has led the way in terms of providing prime office space which has found the perfect balance between creative and corporate, creating an environment that appealed to the market and corporate occupiers at the beginning of the flight to quality movement.
“This movement aims to bring staff back to a new office environment they will enjoy working in, which will help attraction and retention. The roof terrace is a perfect example of added building amenities that play a key role in occupier considerations and its design and style has set a new standard of expectation within Leeds.
“The Music Vine deal is a resounding endorsement of Boultbee Brooks’ substantial investment in this very special building,” she added. “The tenant fell in love with Tailors Corner at first sight.”
PR agency expands into Sheffield
PR agency Sway PR has announced its new Sheffield location following the appointment of senior account executive Chloe Groom.
The appointment comes at a time of expansion for Sway PR as part of its long-term growth plan.
With a background in journalism, technology and telecommunications PR, and consumer PR, Chloe joined the team in September.
Mark Hayward, Managing Director of Sway PR, said: “Chloe joins the team at an exciting time of growth for Sway PR. This expansion to Sheffield gives us a greater national presence as an agency, and we look forward to Chloe adding her expertise to our award-winning team.”
Chloe said: “I’m delighted to be joining Mark and the team at Sway, and to be working with clients that are making waves in their respective industries. I’m looking forward to applying my journalistic eye and experience with consumer brands to generate meaningful coverage for my new clients.”
Sheffield spin-out company secures funding for device that “could revolutionise biology research”
A University of Sheffield academic who has developed a device that could revolutionise biological research has secured a £150,000 loan to help fulfil the first two orders.
Dr Tim Craggs has raised funding from NPIF – Mercia Debt Finance, which is managed by Mercia and is part of the Northern Powerhouse Investment Fund (NPIF). Dr Craggs is an expert in single molecule spectroscopy, which focuses on studying the behaviour of an individual molecule rather than thousands in a bulk sample.
The technique can provide deeper insights into biological processes, replacing the existing technology which is complex and costly. Dr Craggs’ EI-FLEX device is a relatively low-cost benchtop instrument that incorporates advanced software and will make single-molecule spectroscopy accessible to a much wider range of researchers and scientists.
He established the company, Exciting Instruments, in August 2021 to commercialise the device. The funding will enable it to fulfil its first two orders – from the University of Massachusetts and Arizona State University – and make further sales worldwide.
Dr Craggs said: “Single molecule spectroscopy is a powerful technique that could lead to new discoveries in biophysics, life sciences, drug development and diagnostics. We set out to democratise this cutting-edge approach, and bring it to the widest possible user base. Ultimately we hope to make our instrument a standard tool in every biophysics lab.”
Pete Sorsby of Mercia said: “Dr Craggs’ device represents a big leap forward in biological research. Scientific products of this type can take many years to bring to market and begin to make commercial sales. The fact that the company has won two orders within its first year demonstrates its potential and the strong global demand. The funding will enable the company to take the first steps on its commercial journey.”
Exciting Instruments is a joint venture with Bulldozer Limited, which provides digital, commercial and financial support. Robert Bell, CEO of Bulldozer, has joined the Board of Exciting Instruments. Chris Sellars of Hentons Corporate Finance supported Exciting Instruments in raising the funds.
Lincolnshire Chamber of Commerce names Craig Harris as Chairman of the Board
Lincolnshire Chamber of Commerce has appointed of Craig Harris to be Chair of its Board of Directors.
Lincoln-born Craig brings an abundance of commercial experience having been involved in manufacturing business over the last 30 years, and more recently supporting the set-up of a couple of local family-run businesses.
Craig said: “My first priority will be to get to know our people and learn more about our members, their concerns, and challenges so that I might better help the Board and Chamber Senior Management Team support them.
“Optimistic about business growth and the role the Chamber plays in advocating economic growth locally, I hope to bring real life current experience of facing up to business challenges, including Brexit, Covid, Supply Chain, labour shortages and I hope that I can use my experience to help our local business community thrive by being a voice for them and tackling challenges head on.
“It is an honour to serve as chair of the Chamber of Commerce board. Taking up this position is a great opportunity to really help businesses, great and small, find their potential and grow with one common goal – making Lincolnshire a thriving place to live and work.
Simon Beardsley, Chief Executive of Lincolnshire Chamber of Commerce said: “Craig has vast experience, across different sectors and shapes and size of businesses, so I am confident the experience he brings will really support and further guide the strategic direction of the Chamber and more importantly supporting our members and wider business community to grow and prosper.”
FSB sets out seven-point plan to help small firms fearing energy price crunch
The Federation of Small Businesses is urging Government to adopt its seven-point plan to control the spiralling cost of energy which is threatening to drive small firms to the wall.
It calls on Government to:
- Expand the scope of the price cap, which currently only protects domestic customers, to include sole traders and microbusinesses (0-9 employees) and small businesses (10-49 employees). Microbusinesses need consumer protection in the same way that individuals do. They are more akin to domestic customers when deciding on their energy provider, including lacking in expertise in purchasing energy to having poor bargaining power. Including microbusinesses in the price cap will provide an urgently needed cap on soaring energy prices for the smallest businesses.
- Reduce Business Rates to help small firms adapt to the energy price increases. This would help reduce the impact of price rises, especially as these are typically paid monthly. Due to many small firms being in receipt of the retail rates discount or SBRR, and the scale of price rises, this measure would need to be accompanied by other measures to provide support to those firms.
- Provide direct cash support to small and micro businesses to help with energy bills. To support small firms during the pandemic, the government provided £3,000 vouchers to around 700,000 businesses who were eligible for Small Business Rate Relief or Rural Rate Relief. We propose a similar intervention here, which would be focused mainly on helping small firms who received small business rates relief or otherwise do not benefit – or benefit sufficiently – from tax reduction mechanisms.
- Cut taxes temporarily on energy initially for one year, with the possibility of extending the measure if global prices remain high. The government could implement a temporary VAT reduction on business energy and/or fuel bills, either by lowering the 20% and 5% rates, or by increasing the energy usage threshold at which the lower 5% VAT rate applies. A VAT reduction would deliver cashflow benefits to those businesses which can reclaim VAT costs, reduce costs for firms which are not VAT-registered, and lower bills for domestic consumers. The UK should clarify whether this reduction could apply to Northern Ireland businesses, and if not, we want to see similar measures in place for the devolved nation.
- Issue £5,000 vouchers for businesses to spend on qualifying energy saving-products and services under a ‘Help to Green’ initiative. This would be similar to vouchers issued via the ‘Help to Grow Digital’ scheme. The voucher could, for example, be used to fund an audit to measure a firm’s energy consumption with relevant advice on how to reduce energy consumption, or to enable firms to replace equipment and materials to become more energy efficient.
- Commit to not disconnecting businesses from energy supply that are currently unable to pay for their energy bills this winter, and not asking for disproportionate upfront payments. We would like to see energy companies make this commitment and work with individual small business customers. We suggest offering bespoke finance plans and hardship funds for this winter that will enable firms to continue trading.
- Encourage consumers to shop locally and to support their local businesses. Small businesses are at the heart of communities, offering employment opportunities and valuable services. However, the burden of rising energy costs and competition from larger companies, are putting small businesses across the country under immense pressure. FSB is calling on consumers to continue to shop locally and do all they can to support local businesses.
