James Pinchbeck, Partner Streets Chartered Accountants: The government has been reprimanded for releasing details of Budgets and Statements in advance of their hearing in the House. It would seem then such advice was heeded in the case of the Spring Statement, delivered in the House on 23^rd March 2022. Little was known of what we might hear in advance. Though perhaps some may feel there was nothing to release or leak? At a time of rising inflation and living costs, for many younger workers and households, it is something they will not have experienced in their lifetime and many will have listened to the Chancellor with baited breath for measures and support to ease the burden. Whilst many were urging the Chancellor to use the Spring Statement to axe the health and care national insurance increase due to come in this April, few probably really thought he would and he didn’t. In terms of support for all households facing increased costs of living, he announced a 5p reduction per litre in the fuel duty levy from 6pm. This will no doubt be welcomed by those reliant on their car for work, particularly those living and working in rural areas where alternative lower cost travel options are not always available. Whilst we head towards the warmer months, few though will take their minds off increasing energy costs with the price cap hike due to come in from April. The number of people who can benefit from the news of the removal of 5% VAT levied on the installation of renewable energy including heat pumps, solar and wind etc, will probably be limited and lagged in their benefit for most. The Chancellor also announced an increase in the Household Support Scheme with a further £500m of support being available to local authorities to target assistance to those affected by energy price increases. When it comes to managing rising energy costs for businesses, again the measures announced were limited in that they failed to address the issues currently faced. Supply chain issues, labour shortages increasingly giving rise to price rises for consumers and energy price rises are all key contributors to overall price rises faced on goods, especially food and other key household items. His help with energy costs for businesses was limited to removing business rates due on a range of green technology used to decarbonise buildings, including solar panels and batteries, whilst eligible heat networks will also receive 100% relief. So looking at how the Chancellor sought to balance managing the economy, public debt and borrowing whilst seeking to promote growth and to help those, if not all, affected by rising living costs, what were the key announcements? In the here and now, or at least to have a more immediate benefit was the announcement that the threshold at which National Insurance Contributions are levied will rise by £3,000 to £12,570 in line with the Income Tax Threshold. The Chancellor declared that this represents a £300 tax cut for those who will benefit from the change from July 22. This threshold increase is believed to benefit some 70% of the workforce and should help to mitigate the increase due to come with the new National Insurance health and care levy. When it comes to help for businesses, the Chancellor served up a lukewarm helping of reheated announcements made previously with support around reductions in Business Rates, stating he would introduce reliefs a year earlier in April 22, through his Help to Grow initiatives and a continued focus around innovation through Research and Development tax reliefs. He did however offer support to employers, from the 6^th April, through an increase in the Employment Allowance from £4,000 to £5,000. This allows smaller businesses to reduce their employers National Insurance contributions bills each year. As his Statement came to an end, the Chancellor’s final announcement was on the proposed reduction in the basic rate of income tax from 20% to 19% before the end of this Parliament. Perhaps with a sense that this Statement was one based either on Government seemingly becoming a little jaded, running out of steam, or facing the challenges of dealing more and more with issues in the here and now as opposed taking a more longer-term perspective. With recent media coverage we might be forgiven for thinking that it was a statement that marks the start of a government laying the foundation and making preparations for a general election perhaps even as early as next year.   Further details on the announcements included in the Spring Statement 2022 along with tax changes for 2022/23 are included in Streets Chartered Accountants – Spring Statement report. https://www.streetsweb.co.uk/resources/2022/mar/24/streets-guide-spring-statement-2022/

A family-owned investment business is on track for rapid growth after securing a seven-figure finance facility. Banwait Group Holdings is a property investor and asset manager with a portfolio spanning the commercial, residential and healthcare sectors across the UK. It is the parent company of Real Estate Investments Group (REIG), which manages its investments, and Strong Life Care, a care home and assisted living provider. Banwait Group has experienced double-digit year-on-year growth every year for the last ten years, and has grown from a core team of three to more than 260 today. Now, the firm is set to move to a new office in Wakefield to enable further expansion. A seven-figure finance facility from Lloyds Bank has allowed Banwait Group to purchase the 5,500 sq ft space outright, and begin a fit-out designed with employee health and wellbeing at its heart. Facilities will include breakout spaces and mindfulness areas, as well as showers and changing rooms to enable active travel. The Group is targeting ambitious growth, with a goal of exceeding £100 million in managed assets within the next two years and expanding its care facilities to over 1,000 beds. Harpreet Banwait, Managing Director at Banwait Group Holdings, said: “I am incredibly proud of the growth we have achieved over the last decade. Our motto is ‘everyone has a life worth celebrating’ – and that underpins everything we do. It’s all about delivering the best results for our staff, tenants and care home residents, and with our new office we are ideally placed to achieve our ambitious growth plans, welcome even more talented staff, and boost the quality of our offering even further.” Stuart Harper, relationship director at Lloyds Bank, said: “Behind both Real Estate Investments Group and Strong Life Care is a team of dedicated staff helping to deliver outstanding services. Over the past decade, Strong Life Care has built a reputation as one of the best care home providers in the country, and through REIG there is a steady source of income that can be reinvested in the business to help keep making it bigger and better. “We look forward to continuing our support for Harpreet and the team as they continue on their growth journey.”

City of York Council has made grant payments worth more than £223,500 to eligible York businesses affected by the rise of the Omicron variant via the latest phase of Additional Restrictions Grant payments

Leeds-based furniture manufacturer, Craftwork Upholstery, has secured a £400,000 investment from the alternative finance provider Growth Lending to support the acquisition of the company via a management buy-in and to provide additional working capital. Stephen Frazer and Graham Niven of Frazer Hall Corporate Finance advised Richard Carr, Craftwork’s new Managing Director, on his management buy-in of Craftwork Upholstery. The funding will also provide ongoing working capital to enable the business to expand over the next three years. Established in 1991, Craftwork Upholstery manufactures furniture for various industries, including care and nursing homes and in the leisure sector for sports clubs and hotels. The company’s West Yorkshire headquarters, in the Armley area of Leeds, is home to its specially designed manufacturing facility, along with its product showroom. Richard Carr, Managing Director at Craftwork Upholstery, says: “We are very happy to have received this funding from Growth Lending and are excited at the new opportunities it will bring.  “While the management buy-in is a big change for the business, we are confident of the positive impact it will have on the high quality service that our clients and customers have come to expect and on Craftwork’s growth aspirations during the next three years.” Vicki Taylor, the principal at Growth Lending, says: “It was a real pleasure to work alongside Richard and his advisory team to structure a revolving credit facility that enabled him to acquire the business. “The funding has been structured to provide sufficient funds from day one to facilitate the purchase, as well as provide ongoing working capital to support the business through its next growth phase.”

A new funding scheme to offer fair compensation to the postmasters who played a crucial role in uncovering the Post Office Horizon IT scandal has been announced by the Chancellor. Rishi Sunak said a new compensation scheme would be set up in the coming months targeted at the postmasters who brought and won the landmark High Court case against the Post Office over the failings. The 2019 ruling paved the way for millions of pounds worth of future pay-outs and led to the Court of Appeal quashing the convictions of postmasters who were wrongly accused of committing crimes. Despite winning nearly £43m in compensation in 2019, the group was left financially disadvantaged after having to pay significant legal costs based on a “no win, no fee” agreement with Therium – the company which funded its litigation. Due to the terms of their legal agreement each postmaster received a small fraction of the settlement – equating to around £20,000 each. Their action meant they were also ineligible to apply to the Historical Shortfall Scheme set up to by the Post Office following the scandal to compensate postmasters who had to personally cover shortfalls in their branch’s accounts caused by the Horizon IT. The new scheme will ensure that those who uncovered the injustice receive the same level of compensation as the postmasters who claimed through the HSS. Chancellor of the Exchequer Rishi Sunak said: “The Horizon IT dispute has had a devastating impact on postmasters and their families, with many losing their livelihoods or being wrongly convicted for crimes they didn’t commit. “Without the efforts of these postmasters, this terrible injustice may have never been uncovered so it is only right that they are compensated fully and fairly.

“That is why we have set up this new compensation scheme for those who played a crucial role bringing this scandal to light, which I hope provides a measure of comfort.

Postal Affairs Minister Paul Scully said: “The pain and distress that the Horizon scandal has inflicted on hundreds of postmasters over the years cannot be overstated.

“Without the efforts of the 555 pioneering postmasters who brought this to court, this injustice may never have seen the light of day nor would the statutory inquiry have been set up, which is why I made it my priority to ensure they are all fairly compensated.

“While we can’t right the wrongs of the past, I hope this important compensation package is a turning of the page, as we continue working with the Post Office to ensure something like this can never happen again.”

The scheme comes after the government announced a separate scheme last year to provide funding for full and final settlements for eligible postmasters who have had their Horizon-related conviction overturned, with those eligible to receive an interim payment of up to £100,000 each. The Department for Business, Energy & Industrial Strategy has promised to set out details of  the new scheme, including how postmasters can submit compensation claims, in due course.