Government back new rules to prevent firms hanging on to employees’ tips

Stuart Pearcey
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Government back new rules to prevent firms hanging on to employees’ tips
Millions of UK workers will be able take home more of their hard-earned cash under new legislation, backed by the government, banning employers from withholding tips from their staff. Despite most hospitality workers – many of whom are earning the National Minimum Wage – relying on tips to top up their pay, there are still too many businesses failing to pass on service charges from customers to their staff. The Employment (Allocation of Tips) Bill, introduced by Dean Russell MP and backed by the government, will ensure that all tips go to staff by making it unlawful for businesses to hold back well-earned service charges from their employees. This overhaul of tipping practices is set to benefit more than two million UK workers across the hospitality, leisure and services sectors – who tend to reply on tips the most – and will help to ease pressures caused by global inflation and an increase to the cost of living. Business Minister Jane Hunt said: “At a time when people are feeling the squeeze with rising costs, it is simply not right that employers are withholding tips from their hard-working employees. “Whether you are pulling pints or greeting guests, today’s reforms will ensure that staff receive a fair day’s pay for a fair day’s work – and it means customers can be confident their money is going to those who deserve it.

“I particularly want to tip my hat to the work of Dean Russell MP and all the campaigners who have helped make the Tipping Bill a reality.”

Through the Bill, a new statutory Code of Practice will be developed to provide businesses and staff with advice on how tips should be distributed. On top of this, workers will receive a new right to request more information relating to an employer’s tipping record, enabling them to bring forward a credible claim to an employment tribunal. Mr Russell said: “It has always felt wrong that some employers have retained tips intended for their staff. This new legislation will halt this practice, particularly given the current challenges around the cost of living. I would like to thank all of the businesses and stakeholders that have got in touch to voice their support.” The move towards a cashless society has exacerbated the problem of companies keeping card tip payments for themselves, and today’s measures, once in law, will ban that practice. UK Hospitality Chief Executive Kate Nicholls said: “Tips and service charges provide a significant and welcome boost to hospitality employees’ take-home cash. So we’re delighted to see this proposed legislation recommend that employers can set a fair distribution policy for staff, meaning they all benefit. This should also reassure prospective hospitality sector workers at a time when the industry is seeking to fill vacancies.”

South Yorkshire’s Mayor heads to USA to promote county

Tess Egginton
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South Yorkshire’s Mayor heads to USA to promote county
South Yorkshire’s Mayor Oliver Coppard is heading to the USA to promote the region on an international stage. The Mayor will be working with 40 other mayors from around the world, as part of a prestigious programme for leaders run by Harvard University. While in New York, he will hold a series of meetings with businesses and investors to strengthen ties with the US for trade and investment opportunities. Mayor Oliver Coppard said: “South Yorkshire deserves to be shouted about on an international stage and I can’t wait to show the world what we’re capable of. “We are home to world-class universities, an advanced aerospace cluster and businesses working at the cutting edge of manufacturing and low carbon technology, and I will use this opportunity to highlight our successes, placing South Yorkshire at the heart of any future expansion plans. “We have unending talent and limitless potential, we’re the ideal place to invest in, and I’ll make that case to future partners in the United States.” Every year the Bloomberg Harvard City Leadership Initiative works with 40 Mayors from around the world, bringing them together to strengthen their capabilities and discuss responses to shared issues like the ongoing COVID-19 pandemic and the climate crisis. A collaboration between Bloomberg Philanthropies, Harvard Kennedy School and Harvard Business School, it was established in 2017. Mayor Oliver Coppard continued: “This programme offers unrivalled opportunities for us here in South Yorkshire to build relationships, share information and learn from other regions across the globe. “There’s never been a more important time to shout about South Yorkshire, and I will take every opportunity to be an advocate for our communities wherever I can.” Professor Koen Lambers, president & vice-chancellor of the University of Sheffield, said: “We are very pleased to see South Yorkshire’s Mayor represent our region internationally. The USA remains an important strategic partner for the University in terms of R&D, academic partnerships and student recruitment and exchange.” For the trade mission, the Mayor will be accompanied by SYMCA’s director of trade & investment Rachel Clark, and AMRC’s head of external affairs, Simon Collingwood. The Mayor’s flights and accommodation for the Bloomberg Harvard programme have been paid for by Bloomberg. All other costs have been covered by SYMCA.

340,000 sq ft Barnsley logistics scheme receives green light

Tess Egginton
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340,000 sq ft Barnsley logistics scheme receives green light
Firethorn Trust has secured planning approval to deliver a 340,000 sq ft logistics scheme in South Yorkshire. The 24-acre site, Barnsley340, will comprise a Grade-A warehouse unit spanning 320,000 sq ft, in addition to 20,000 sq ft of highly specified office space. Barnsley Council has now approved Firethorn’s plans for the site, which will sit within the wider ‘Phase 2’ Gateway 36 project – a mixed-use development owned by Yorkshire-based land and property regenerators, Harworth Group plc. Paul Martin, development director at Firethorn Trust, says: “Now that we’ve received the green light, we’re excited to begin construction and swiftly bring our plans for the scheme to life. “As the market continues to experience pent-up demand for modern logistics space, and the region benefits from ongoing inward investment, we are confident that the Firethorn specification will unlock the full potential of the site, bringing wider economic and employee benefits into the area.” Constructed to net-zero carbon, Barnsley340 will be delivered to a BREEAM ‘Excellent’ rating, with renewable design features and sustainability initiatives looking to enhance cost- and energy-efficiency. Work on site will begin later this year, with practical completion due in Q2 2023.

Hull Maritime to tender for Spurn Lightship’s new berth

Tess Egginton
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Hull Maritime to tender for Spurn Lightship’s new berth
Hull City Council has published a decision record that will allow the council to open a tender process to construct a permanent wet dock for the Spurn Lightship. To berth the Spurn Lightship in Hull Marina for visitors to enjoy, the council requires the services of a specialist contractor to deliver a wet berth on the northwest corner of Hull Marina, close to the Holiday Inn and Murdoch’s Connection. A successful funding bid from National Highways for £1,044,725 will enable works to take place. The main works to create the new dock will be the sinking of five piles to create mooring points for the ship. The restoration of the Spurn Lightship is part of Hull Maritime, a locally led project funded by Hull City Council and The National Lottery Heritage Fund. Work to restore the lightship will be complete this autumn and the ship will move to a temporary position on Hull Maritime until the new dock is completed in early 2023. Councillor Mike Ross, leader of Hull City Council, said: “We are delighted to have been awarded the funding from National Highways. This is the latest stage in the work and this investment will create a new permanent home for the city’s cherished Spurn Lightship. “Residents and visitors will learn more about what it was like to work on the Spurn Lightship, guiding vessels as they navigated the Humber estuary – one of the most treacherous waterways in the world. “For the first time, visitors will be able to climb to the top of the lantern, this is going to be something very special for the city and will continue to act as a signpost to Hull Marina, a constant reminder that our maritime heritage is never far away.” The procurement exercise will open in the coming weeks, with work expected to start on site in the autumn. It is expected the Spurn Lightship will open to visitors in summer 2023. The restoration of the Spurn Lightship is part of Hull Maritime. Other elements of the project include the refurbishment of the Grade II* Hull Maritime Museum and the Dock Office Chambers, the creation of a new visitor attraction at the North End Shipyard which will become the new home of the Arctic Corsair.

Manufacturers in Brexit voting regions increasingly dependent on EU export markets

Tess Egginton
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Manufacturers in Brexit voting regions increasingly dependent on EU export markets
The UK regions and Nations which voted for Brexit have increased their dependence on the EU for manufacturing exports, while the European market remains the overwhelming favoured destination for the sector. The findings come from the Annual Regional Manufacturing Outlook published by Make UK and business advisory firm BDO. The report examines the contribution of manufacturing to the economies of every English Region as well as the devolved nations. It analyses both the most recent official data, as well as Make UK’s own quarterly data across a wide range of indicators including output, orders, employment, investment intentions. The analysis of official data from 2021 shows that the EU remains overwhelmingly the dominant market for UK goods with an overall average level of 49% of exports going to the bloc. Wales (60%), the North East (58%), East Midlands (51%) and East of England (48%) all saw their share of manufacturing exports to the EU increase while Yorkshire & Humber (57%) stayed the same. The South West, Scotland and Northern Ireland also saw their shares increase. Given the fact the EU remains by some distance the most important export destination for UK goods Make UK believes it is essential the Government takes steps to ease the trading relationship with the bloc and renews additional support to boost exports, especially for SMEs. This must include:
  1. Taking immediate steps to come to a mutual understanding with the EU on the Northern Ireland Protocol which avoids significant shocks to trade with the EU and provides a clear and stable business environment
  2. Easing the friction around the CA/CE marking regime by allowing CE marketed goods to be continually recognised on the GB market for as long as the rules in the UK have not diverged and remain the same
  3. Re-establish the SME Brexit Support Fund and other targeted schemes that will enable firms to respond to new market regulations in GB and other changes to trade with EU that will come into effect in 2023. In a recent Make UK survey almost a quarter (22%) of manufacturers cited support for exports as one of the top three ways Government could help them grow their business.
Verity Davidge, policy director of Make UK, said: “Despite the talk of ‘Global Britain’ history shows that geography is always the main determinant of trade. The EU was always going to remain the main destination for manufacturers who appear to becoming more, not less, dependent on it as a market. As a result, it is vital the Government now takes steps to reset the trading relationship with the bloc and, wherever possible, eases and simplifies trading to boost exports for SMEs in particular.” Richard Austin, head of manufacturing at BDO, said: “Manufacturing businesses have done a good job in adapting to new post-Brexit rules for trading with the EU, but ongoing Government support may well be required, particularly for firms at the smaller end of the spectrum. “Clearly, there are difficult ongoing political issues relating to the Northern Ireland Protocol. However, it’s vitally important that good trading relationships with our European neighbours are maintained to ensure that trade remains as frictionless as possible. “We also hope to see further progress on free trade deals which could offer new and exciting opportunities for the UK’s manufacturing exporters.” The analysis also shows the extent to which the economies of every region and Nation were impacted by the pandemic with the GVA of every area dropping in 2020 (the latest year for which data available) with those areas with a very heavy exposure to sub-sectors such as aerospace and automotive hit especially hard. The West Midlands saw the largest hit to its economy (a drop of -12.7% GVA) given its dependence on the automotive sector, with car plants forced to suspend production and the resulting impact on the supply chain. The report also shows that over the last year, according to data from Make UK’s quarterly surveys, every single region and nation saw positive balances across all indicators, showing how well the sector has performed over the last year. This reflects a combination of the bounce back from the pandemic and strong world trade, but also highlights how this period may come to be seen as good as it gets for manufacturers for some time to come given how fast economic conditions are weakening in major markets. While every region saw positive growth, the report also highlights the challenges from disrupted supply chains with eight out of ten regions and Nations reporting orders exceeding output over the twelve month period, highlighting the issues companies are facing delivering on orders. Individually the North East was the best performer for output growth, which may reflect the sub-sector composition of the region, almost a third of which is represented by pharmaceuticals and chemicals which have continued to perform strongly. The South East led the way for investment intentions, Yorkshire & Humber the best for output growth whilst the South West saw the best levels of job growth.

Leadership hopefuls must show pro-enterprise credentials, say small firms, as confidence nosedives

Tess Egginton
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Leadership hopefuls must show pro-enterprise credentials, say small firms, as confidence nosedives
Surging operating costs, a high tax burden and struggles to fill vacancies are threatening the futures of hundreds of thousands of small firms and sole traders across the UK, according to the latest Small Business Index (SBI) findings from Federation of Small Business (FSB). The UK headline small business confidence measure has tumbled to -24.7, down more than 40 points on the same quarter last year (+18.6). The figure is the lowest recorded outside of periods when significant trading restrictions aimed at halting the spread of Covid were in place. It stands on a par with that posted in Q3 2020 (-32.6) and is lower than the level seen in the final quarter of last year when the omicron variant was rapidly spreading (-8.5). Among the more than 1,300 firms surveyed for the study, the vast majority (77%) do not expect their performance to improve over the coming quarter. More than a third (38%) expect it to worsen. Fewer than one in ten (8%) expect to grow rapidly. A record high 89% of small firms say operating costs are up this year compared to last, with record high numbers citing fuel (64%), utilities (64%) and inputs (48%) as primary drivers of that increase. Four in ten (43%) flag labour as a main contributor to higher outgoings, with substantial proportions also highlighting taxation (23%) and regulation (15%). A third (34%) of firms cite lack of appropriately skilled staff as a barrier to growth, with two thirds (64%) planning to increase wages over the next year as the labour market remains tight. A quarter (27%) plan to increase pay by 6% or more. At the same time, investment intentions have hit the lowest point recorded outside of the first lockdown in Q1 2020 – fewer than a quarter (23%) say they’ll up capital investment over the next quarter compared to last. Exports are also in the doldrums: the share of firms which do business overseas reporting a decrease in export value (36%) significantly outstrips the number reporting an increase (28%). Those proportions last stood in reverse in Q1 2019. Amid myriad challenges, one in seven (15%) respondents say they plan to consolidate, close or sell their firms over the coming year. FSB national chair Martin McTague said: “The cost of doing business crisis has worsened to the point where confidence is now lower than during last year’s massively disrupted festive trading season. “Firms are trying to absorb additional cost pressures but can only do so much before they’re forced to raise prices. “The small business community reduced in size to the tune of hundreds of thousands over lockdowns. Unless policymakers act fast, history is set to repeat itself. “Firms desperately need help with the charges that hit them regardless of profitability: business rates, national insurance, utilities, fuel and those linked to supply chain disruption. “We’re looking to prime ministerial candidates for unequivocally pro-business, pro-growth commitments. There is still time to act, but time is of the essence.”

Business leader invited to show enterprise in Leeds

Michael Fisher
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Business leader invited to show enterprise in Leeds
Unity Enterprise (UE) is seeking a socially conscious individual with proven business acumen and a desire to stimulate entrepreneurial activity in diverse neighbourhoods in Leeds to become its Chair. A not-for-profit subsidiary of BME housing association Unity Homes and Enterprise, UE was established more than two decades ago to create positive social and economic opportunities for local people, businesses and communities. It currently provides 142 affordable business units for over 80 diverse businesses across its three centres. UE recently launched a new bespoke scheme, Steps to Business, to give aspiring entrepreneurs of all ages the platform and professional support to build their own sustainable business. The new Chair will help spearhead UE’s post-pandemic drive to boost enterprise, nurture business talent and create new jobs with a particular emphasis on people of BME origin. The successful candidate will also sit on the Unity Homes and Enterprise Board. Cedric Boston, Unity Homes and Enterprise Chief Executive, said: “We are indebted to Emma Green who has served with great distinction as UE Chair. She retires from the post with our sincere thanks. “It was hoped that the end of Covid lockdowns and the return of more normal times would lead to a major upturn in entrepreneurial activity.  The cost of living crisis has made this more challenging, but we will not be deterred from our mission to help people start up, nurture and grow successful businesses. “The new Chair of UE will be invited to work with the Board, our fantastic staff and key partners including Leeds City Council to help devise new initiatives such as how to reach more untapped entrepreneurial talent. “We also want to continue upgrading our three enterprise hubs, including Leeds Media Centre where the Steps to Business programme is based, which offer high quality, affordable offices and workspaces for organisations of all sizes. “It is a deeply rewarding role and a wonderful opportunity for a successful businessperson to share their wisdom and change people’s lives for the better.”

Immingham welcome first import of specialised construction raw material

Stuart Pearcey
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Immingham welcome first import of specialised construction raw material
Associated British Ports has welcomed its first shipment of conditioned pulverised fly ash at the Port of Immingham. The raw material is used in other products to produce components for road or ground bases, in concrete and cement, or tile and brick manufacturing. Simon Bird, Regional Director for the Humber ports said: “Immingham plays a key role in bringing in components for the construction industry and we’re delighted to welcome this first shipment of conditioned pulverised fly ash. The strength of the Humber Ports is in the diversity of the markets and commercial sectors that we support, so it is great to be adding another new product to that range.” Ivan Skidmore, Sales & Technical Director of Power Minerals said: “This is the largest single shipment that we have arranged of ash, and working with ABP was very straightforward and clear, in terms of the process and delivery. They have been very supportive throughout the process and implementation. “This significant shipment of ash illustrates the strength of PML as part of our international group – EP Power Minerals – and shows our ability to source ash, invest in delivery and ensure a robust, continuity of ash supply when needed. “We always go above and beyond to meet our customer’s needs and this shipment, with the support of ABP, is a great example of that ethos.”

Timetable boost on way for Yorkshire’s FLYER A1 Route

Michael Fisher
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Timetable boost on way for Yorkshire’s FLYER A1 Route
A boosted timetable for Yorkshire’s summer getaway – that’s the promise from bus operator Transdev as it unveils plans to run more buses, more often on its direct FLYER A1 route between Leeds city centre and Leeds Bradford Airport. Rising customer numbers using the FLYER A1 route are driving plans to increase its timetable, which currently runs every 30-40 minutes on weekday daytimes and hourly on Sundays. From Sunday, 24 July, there’ll be a FLYER A1 bus every 20 minutes on weekday daytimes and every 30 minutes in the evenings and on Sundays. There’ll also be an extra late-night bus from Leeds city centre at 00.36 to the Airport. Timetable changes are also on the way from the same date to FLYER route A2, which links Leeds Bradford Airport with Harrogate and Bradford, and FLYER A3 connecting the Airport with Otley, Shipley, and Bradford. Transdev CEO Alex Hornby said: “We’re seeing more and more people choosing to use our FLYER buses, particularly on our FLYER A1 route to and from Leeds – and with the peak summer holiday season just around the corner, we’re boosting our timetables to make sure getting to and from the airport is as swift and simple as possible. “We’re also changing timetables on our FLYER A2 and A3 services to improve our timekeeping and ensure we can continue to deliver dependable journeys – whether it’s for the start of a much-anticipated summer holiday, or everyday trips for work or leisure. Changes to the road layout by Leeds City Council will also see the closest stop for Leeds rail station moving to Boar Lane, just a short walk from the station entrance, also from Sunday 24 July. Transdev’s FLYER bus network was launched in July 2020 in partnership with West Yorkshire Combined Authority and Leeds Bradford Airport. Its three dedicated FLYER branded routes run from early morning until late at night seven days a week, using Yorkshire-built low emission buses to support the region’s sustainable transport strategy by providing a highly attractive alternative to driving. Each FLYER bus offers customers a first-class travel experience at economy fares, including free Wi-Fi, wireless and USB device charging points, plenty of luggage space, audio-visual next stop announcements, comfortable seating with leather headrests and double-glazed windows to enjoy the Yorkshire views along the route. Full details of all FLYER routes, times and ticket deals are available online at: transdevbus.co.uk/flyer, and on the free to download ‘Transdev Go’ mobile app.

Leeds-based Bailie Group wins national innovation accolade

Michael Fisher
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Leeds-based Bailie Group wins national innovation accolade
Leeds-based Bailie Group, a family-owned group of agencies and consultancies with a purpose to invest in people and ideas that make a positive difference, has been recognised for its enduring commitment to innovation at the Family Business United Awards. Scooping the coveted ‘Innovation Family Business of the Year’ title, the Group was commended for its unrivalled focus on nurturing originality — having ringfenced an annual sum of £500,000 to support pioneering ideas proposed and developed by its own team. A further half-a-million pounds will be dedicated to a ‘Dragon’s Den style’ programme, which will see the business invest in external companies responsible for the emergence of socially responsible technologies or enterprises. Speaking of the firm’s commitment to innovation, Fergus Bailie, CEO of Bailie Group, said: “As a Group, innovation is incredibly important to us. It’s an element that underpins our entire business ethos to invest in people and ideas that make a positive difference in society. “It’s not just something we talk about, but an area in which we invest heavily. So, to have been recognised for our efforts, by an organisation that is passionate about the importance that family businesses play globally, is a great honour.” In line with the Group’s approach, the event itself was a true family occasion, with colleagues and their loved ones joining from far and wide. Bailie continued: “The event was held online, so it was particularly special to see people across the group settling down to enjoy the occasion with their own families — who all shared in our pride at the result. “Not only was it a celebration of a job well done for the team, but also an opportunity for family members of all ages to be inspired and proud of the part that each of our colleagues plays in the Group’s collective success.”
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