A super deduction successor could trigger £40bn-a-year boost for UK business investment

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Introducing a new permanent investment deduction to succeed the Government’s super deduction could boost UK business investment by up to £40bn a year by 2026, according to a new CBI survey. Data compiled from 325 firms – of all sizes and sectors of the economy – suggests the super deduction has spurred investment and that a permanent incentive could trigger an annual 17% uplift in capital spending. This could turbo-charge growth ambitions, helping raise productivity and improve living standards across all UK nations and regions. The CBI survey reveals more than half of respondents took advantage of the super deduction – or plan to do so – to increase or accelerate capital investment plans. However, with the scheme set to end in 2023, there is a risk business investment could tail off at a crucial time, when the OBR is projecting post-recovery economic growth levelling out at a modest 1.3-1.7%. The recent Bank of England forecast is more pessimistic still, expecting growth of only 1.0% in 2024. In the CBI’s own economic forecast, business investment is expected to fall in spring 2023, once the super deduction ends. The business group is urging Government to create a permanent 100% tax deduction for capital spending in the year of expenditure at this year’s Spring Statement, helping to sustain business investment throughout 2023 and ushering in a 17% rise in business investment over the medium-term. If the super deduction expires without a successor, the CBI forecasts the UK will remain the lowest in the G7 for business investment by 2026. Implementing a permanent investment deduction would lift us off the bottom, fuelling higher growth and productivity across the UK. Longer term, increasing productivity is the only sustainable way to pay down debt and meet rising spending pressures. Tony Danker, CBI Director-General, said: “The Chancellor’s super deduction exemplified the boldness in public policy that we need to inspire investment and get the economy moving. Going by our survey results, it looks to be a real success. It’s started the job but cannot be a one-hit wonder. Evolving the policy from short-term fix into long-term strategy will give firms confidence that Government and industry are aligned. “The UK is facing the highest tax burden in decades. But by rewarding firms who put money into their operations, we can unleash new innovation and productivity – the ingredients we need to escape the low-growth trap and build a stronger, sustainable and more equitable economic future.” Key survey results: Impact of the Super Deduction:
  • More than half of firms (53%) plan to claim the super deduction.
  • A fifth of qualifying capital spend is only taking place because of the opportunity presented by the super deduction.
  • Some 19% of qualifying capital spend was as a result of accelerated investment plans due to the super deduction.
  • And 2% of qualifying capital spending is being invested in the UK – rather than elsewhere – because of the super deduction.
  • In total, 41% of planned qualifying capital investment in 2021-23 is due to the super deduction – more than half of which would not otherwise have taken place in the UK.
Projected impact of a permanent equivalent relief:
  • 50% of respondents indicated they would revise investment plans as a result.
  • 24% said they would make additional capital investments in the UK.
  • 13% would make additional investments – and bring forward investment timescales.
  • A further 13% would accelerate UK investments already planned.
  • Survey respondents revealed plans for £1.3billion of capital projects and said a new investment deduction of the type proposed would see £169million of that spending accelerated – and a further £224million of projects added.
  • Extrapolating these findings to a medium-term projection of business investment shows this could increase spending by 17% by 2026, compared to existing projections.
  • This is equivalent to additional investment worth £40billion per year by 2026.
  • Expanding the assets that qualify for a permanent investment incentive – to include, for example, second-hand, leased and rented assets – and expanding the relief to unincorporated businesses could raise investment further, with potential for an additional boost of 4% over current projections, or another £10billion of investment per year by 2026.

APSS Celebrates 25 years of creating Amazing Workspaces

Experts in office design, fit out and refurbishment, APSS is celebrating 25 years of supporting businesses across the country to create inspirational and impressive workspaces. Founded in 1997, Darren Crookes started out on his own with two fitters to install office partitions and storage solutions for local businesses in the Lincoln area. Laurence Barrass, Managing Director for APSS said: “We now employ over 35 people and still work in partnership with our very first customer, Siemens. It’s incredible to think we have now completed over 10,000 different projects for our customers which span from Cornwall to Aberdeen. “Since the start, we have always helped smaller businesses as they remember the quality of service they receive from us, they grow as a company, then they turn into some of our biggest customers over the years. The partnership and bond we have with them is fantastic. It’s where we want to be – recognised as the company you can trust.” APSS has naturally evolved from a partitions and storage solution company to provide a full design and fit out service across a range of sectors. It has adapted to include its own in-house joinery department to speed up delivery time on projects and decrease overall costs for customers. Recently, the company has seen a change at the helm as Laurence Barrass became the new Managing Director, taking over from Darren who took a step back from the day to day running of the company, but remains as Chairman. “To reach 25 years in business is a huge milestone for any company,” Laurence said. “We have survived recessions and a pandemic which no one could have prepared for. There was a worrying time when offices nationally were closed to workers and this being key to our business. But thanks to the knowledgeable skill of our staff and the flexibility it allows for, as a company we were able to adapt to better support our customers who were going through exactly the same challenges we were facing. “We helped businesses which sold online to adapt their warehouse to cope with the additional stock levels required. Many of our key customers, like Wren Kitchens, used the down time in the offices to create a better and safer working environment ready for the post pandemic return to the office. “It’s been a bumpy ride, but an exciting one. We know many companies have had to shift to a more flexible, hybrid way of working thanks to the pandemic. It has been great to support so many in transforming their current office space to better suit that style of working.” When the company was first founded, it was all about trying to get the message out. The location in the Yellow Pages was an important consideration. Everything was faxed and drawings were all done by hand. To build up the business founder Darren Crookes knocked on every door he could find to obtain local clients. Many of which we are still working with. However, after a while, customers started saying ‘you know you’re doing that, well can you get carpets, and can you get furniture?’ It was a natural progression from the partitions, racking and storage the company originally provided – and still does. It opened up the marketplace and APSS began to offer more of a service driven product. “During the recession, APSS helped businesses to utilise their existing workspaces, similar to now after the pandemic. The only difference back then was it was about how we could squeeze as much in to the space as possible. Now it’s more about how to create a flexible working environment with space for people to move around the office without being crowded,” Explained Laurence. APSS works with a wide range of companies across the UK including Wren Kitchens, Slimming World, Octopus Energy, Siemens, University of Lincoln and Bakkavor to name just a few. “Over the years we have installed all sorts of different and quirky things from hidden bathrooms to Google inspired slides. As fun and different as these things are, our primary focus has always been ensuring our customers have a productive, efficient workspace that leaves a great impression.”

International property investor acquires Halifax distribution unit in £17m deal

A 126,534 sq ft logistics distribution unit in Elland, Yorkshire, that is let to Buy It Direct, one of the UK’s largest online consumer goods retailers, has been acquired in a £17 million deal. Unit J6 at Lowfields Business Park was built in 2005 and sits in a 6.3 acre site, approximately one mile from junction 24 of the M62. The site has been acquired by Cabot Properties, the international private equity real estate investment firm, which is exclusively focused on industrial properties. The acquisition was negotiated by the Investment team at Leeds property consultancy, Gent Visick (GV). Michael Williams, director of investments at Cabot Properties, said: “This is a modern, well specified logistics asset, let to a fast growing, nationally recognised e-commerce occupier in a highly accessible location which makes this a strong addition to our core portfolio. “We continue to actively seek both Core and Value Add opportunities to build upon our existing portfolios in the UK.” Garry Howes, director of investment at GV, who negotiated the deal on behalf of Cabot, said: “In the current highly competitive industrial and logistics market with unprecedented levels of capital looking to be deployed, it is always a pleasure to be able to secure opportunities for our clients. This is a high-quality unit, close to the M62, that is let to one of the UK’s fastest growing online retailers. “This made it a very compelling investment opportunity for Cabot Properties, and we’re very pleased to complete this acquisition on their behalf.”

Sheffield to be home to pioneering Gene Therapy Innovation & Manufacturing Centre

Sheffield has been chosen as the location for one of only three Gene Therapy Innovation & Manufacturing Centres to be established in the UK. The pioneering Gene Therapy Innovation & Manufacturing Centre (GTIMC) has received £1.5m grant funding from the South Yorkshire Renewal Fund, towards its state-of-the-art facilities being built at a total cost of £14.2m. The GTIMC is expected to create 35 high value jobs. The University of Sheffield’s Gene Therapy Innovation & Manufacturing Centre (GTIMC) is set to advance scientific discoveries into treatment options for millions of patients with life-threatening diseases that have no known medical cure. Dan Jarvis, Mayor of South Yorkshire, said: “This is fantastic news for South Yorkshire and the North of England. It puts Sheffield right at the heart of world class research and innovation into Gene Therapy that will present a real opportunity for regional economic growth within the supply chain and job creation in South Yorkshire.” Dan Jarvis continues: “The fact that South Yorkshire was chosen is significant – building on this region’s expertise in health and well-being research, utilising the valuable resources and expertise of the University of Sheffield. We expect this to be a catalyst for further enhancing health and well being research and development in South Yorkshire.” The Gene Therapy Innovation & Manufacturing Centre will aim to develop four clinical therapies to be used in clinical trials and which will be taken forward into standard clinical care within the NHS. It is also expected to contribute an additional £28m of GVA to the region by 2027. Professor Koen Lamberts, President and Vice-Chancellor of the University of Sheffield, said: “At the University of Sheffield we focus our research on finding real-world solutions to some of the biggest global challenges. The Gene Therapy Innovation and Manufacturing Centre will unlock development pathways for new treatments for people affected by devastating genetic disorders, many of which have no cure. “We are delighted that our University is at the forefront of research in this pioneering field of medicine and that this new centre will build on our reputation as an international centre of excellence for gene therapeutics.” Alongside receiving funding from South Yorkshire Regeneration Fund, the Gene Therapy Innovation & Manufacturing Centre is also receiving LifeArc funding of £6.4m, £3.1m from the University of Sheffield and a £3 million donation from The Law Family Charitable Foundation, established by Andrew Law and his wife Zoë. The GTIMC is planned for a site on the University of Sheffield’s Innovation District close to existing translational research facilities and will contribute to an ongoing programme of regional investment and regeneration. The centre will include a cutting-edge GMP (good manufacturing practice) facility that will support gene therapy projects emerging from universities across the UK. The three national hubs, located at the University of Sheffield, Kings College London, and NHS Blood and Transplant in Bristol will operate as a coordinated network, sharing technical skills and resources to enable innovative gene therapy research.

Software company lets Leeds offices for corporate headquarters

The Leeds office of property consultancy Knight Frank has brokered a significant letting at The Bourse, a prestigious office and retail complex in Leeds city centre. Merchandising software solutions company Retail Express has taken 4,290 sq ft on the 1st floor of Bond House, one of the three self-contained buildings which comprise the 50,000 sq ft Bourse. The Bourse is a landmark building on Boar Lane less than 100 yards from Leeds Station and features 50,000 sq ft of high quality space over three buildings, overlooking a central courtyard. Each of the buildings, Equity House, Sterling House and Bond House, has its own designated entrance with an NCP multi-storey car park to the rear. The Bourse has undergone a comprehensive multi-million pound refurbishment to provide Grade A offices of the highest standards. Victoria Harris, senior surveyor with Knight Frank in Leeds, who advised landlords Paloma Capital, said: “We are delighted that a company of the calibre and reputation of Retail Express has taken space at The Bourse. This letting, together with other recent high-profile deals in Leeds city centre, underlines the current strength of the Leeds office market.” Barry Grange, CEO of Retail Express, said: “We are excited to have chosen Leeds and The Bourse as our corporate headquarters to help us deliver the next chapter of our growth story. With a central location for our staff and excellent regional and national links, The Bourse stood out against the competition. The prestigious location offers first-class facilities within the thriving tech hub of Leeds.”

British Chambers research finds little love for EU trade deal amongst businesses

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New research carried out by the British Chambers of Commerce of more than 1,000 businesses has highlighted a host of issues with the UK’s trade deal with Europe. The BCC believes urgent steps should be taken to address these problems so the UK Government’s ambition to increase the number of firms exporting can be met. Overall, just 8% of firms agreed that the Trade and Co-operation Agreement (TCA) was enabling their business to grow or increase sales, while 54% disagreed. For UK exporters 12% agreed that the TCA was helping them while 71% disagreed. When asked to comment on the specific advantage (for those that agreed) or disadvantage (for those that disagreed) of the trade deal, 59 firms identified an advantage, while 320 cited a disadvantage. Of the 59 comments received on the advantage of the TCA, firms said:
  • It had allowed some companies to continue to trade without significant change
  • It had encouraged firms to look at other global markets
  • It had provided stability to allow firms to plan.
Of the 320 comments received on the disadvantage of the TCA, firms said:
  • It had led to rising costs for companies and their clients
  • Smaller businesses did not have the time and money to deal with the bureaucracy it had introduced
  • It had put off EU customers from considering UK goods and services – due to the perceived costs and complexities.
This follows BCC research in October 2021, which found that 60% of exporters were facing difficulties adapting to the changes from the TCA on goods trade, while 17% found the changes easy. Reacting to the findings, William Bain, head of trade policy at the BCC, said: “This is the latest BCC research to clearly show there are issues with the EU trade deal that need to be improved. Yet it could be so different. There are five relatively simple steps that UK and EU policymakers could take to ease the burden placed on businesses struggling with the trade deal. “Nearly all of the businesses in this research have fewer than 250 employees and these smaller firms are feeling most of the pain of the new burdens in the TCA. “Many of these companies have neither the time, staff or money to deal with the additional paperwork and rising costs involved with EU trade, nor can they afford to set up a new base in Europe or pay for intermediaries to represent them. “But if both sides take a pragmatic approach, they could reach a new understanding on the rules and then build on that further. “Accredited Chambers of Commerce support the UK Government’s ambition to massively increase the number of firms exporting. If we can free up the flow of goods and services into the EU, our largest overseas market, it will go a long way to realising that goal.” The BCC’s five key issues, and the solutions needed, to improve EU trade are: ISSUE: Export health certificates cost too much and take up too much time for smaller food exporters. SOLUTION:  We need a supplementary deal on this which either eliminates or reduces the complexity of exporting food for these firms. ISSUE: Some companies are being asked to register in multiple EU states for VAT in order to sell online to customers there. SOLUTION: We need a supplementary deal, like Norway’s with the EU. This exempts the smallest firms from the requirement to have a fiscal representative and incur these duplicate costs. ISSUE: As things stand CE marked industrial and electrical products will not be permitted for sale on the market in Great Britain from January 2023. The same is true for components and spares. SOLUTION: We need action from the Government to help businesses with these timelines. Many firms are far from convinced about a ban on CE marked goods in Great Britain. ISSUE: UK firms facing limitations on business travel and work activities in the EU. SOLUTION: Government needs to make side deals with the EU and member states to boost access in this area as a priority for 2022. ISSUE: Companies starting to be pursued in respect of import customs declarations deferred from last year. SOLUTION: We need a pragmatic approach to enforcement to ensure companies recovering from the pandemic do not face heavy-handed demands too quickly on import payments, or paperwork.

Wakefield housing development paused

Wakefield Council has confirmed that a proposed development on Council owned land, at the site of the former Parkhill Colliery at City Fields, will be paused. The Council has also given assurance that the part of community woodland on the land owned by the Council, which was previously earmarked for future education development, will no longer be developed and will be preserved for future generations. An alternative site for the education development will be sought when this becomes necessary. The pause will then enable Bridge Homes, the developer for a planned housing scheme on the adjoining land, to review their proposals and consider possible additional environmental mitigations.
The Deputy Leader of Wakefield Council, Cllr Jack Hemingway, said: “We are listening to the voices of the local community and environmental groups, who have expressed concern about the loss of this much-loved area of woodland. Today the Council is committing to protect that area of the Parkhill woodland which was to become an education centre. “The plans will change and we will work to find a different site for the education development in the future, in order to protect this green space that means so much to the community. “We are also pleased that Bridge Homes are working with the Council’s Planning Team to further consider the impact on the adjoining site’s bio-diversity and natural environment. “It is an incredibly difficult balance to strike between meeting the targets and planning requirements dictated by central Government, the housing and welfare needs of our communities, alongside our local aspiration to protect the environment. Please be assured that we will do all we can to achieve this.” The Bridge Homes development, which will provide 116 homes for sale, rent and Shared Ownership was considered acceptable in planning terms and was recommended for approval to committee in December 2021. Tony Watling, Managing Director of Bridge Homes, said: “We recognise the importance of minimising our environmental impact where we can. Whilst the proposed scheme met the planning requirements for this site, we will review our proposals to see if we can identify anything we can do differently to support the local biodiversity even more and further reduce the environmental impact.” The Bridge Homes proposal already includes in excess of 145 new trees to be planted, as well as 510 square metres of native trees along with further plants, hedges and shrubs. Critical work to install a foul sewer to support the wider City Fields site will continue. The construction of the sewer is a statutory undertaking and as part of this independent specialists have identified the necessary actions to mitigate and compensate the environmental impacts and effects on biodiversity. Jane Brown, Interim Service Director for Economic Growth and Skills, said: “The ambition of the City Fields Masterplan has always been around improving the quality of life for local people. This comes in all shapes and sizes from investment, job creation and new homes, to lovely new play areas, parks and new businesses. These are opportunities that are much needed in this area. “To help us achieve this, essential infrastructure needs to be installed and the new sewer is a crucial part of that. Work on this will continue and will also deliver a significant replanting scheme to replace hedgerows and shrubbery, along with planting 2,000 new trees across the City Fields site.”

LCF Law welcomes family specialist to the firm

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A well-respected solicitor, who has more than two decades of experience in dealing with all aspects of family and matrimonial law has joined Yorkshire-based, LCF Law. Rachel Baul is renowned for working on high-net-worth financial cases that involve people who have businesses and trust assets in the UK and overseas. Rachel’s bespoke knowledge of agricultural valuations, subsidies, inheritance considerations, and how the courts approach these matters, means she regularly represents farming clients. She has a great deal of experience dealing with cases involving significant and complex financial assets on and offshore, and she also regularly represents sportspeople and medical professionals. Rachel advises clients on divorce, judicial separation the dissolution of civil partnerships and cohabitation law. Rachel also specialises in drafting cohabitation, pre-nuptial and post-nuptial agreements for people who have assets they want to protect. Rachel says: “My role is to resolve financial issues and disputes when relationships break down and protect assets as people embark on new relationships. Helping people divide businesses and pensions when divorcing or ending a civil partnership can be very complicated, as is making practical and financial arrangements for children. I’m here to make things as straightforward as possible and achieve the best possible outcome for my client. “I wanted to move to LCF Law because I was keen to work at a progressive firm that values its team. I really admire the firm’s drive to exceed client expectations, all whilst supporting its staff and the local community.” Managing partner, Simon Stell, said: “Rachel is a tenacious and pragmatic solicitor who is also very approachable. She’s renowned for providing quality advice throughout a process that can often be stressful and difficult. Many clients come to Rachel through personal recommendation, and she is a welcome addition that will help us to continue to grow our family law offering throughout Yorkshire.” Rachel is a former president of Harrogate & District Law Society.

Trading Standards given powers to fine rogue letting agents and landlords up to £30k

Trading Standards officers have been given the powers to crackdown on landlords that surprise tenants with hidden costs. Any landlord or letting agent that fails to comply with the law on protecting tenants and their money face a fine of up to £30,000. Cabinet members have approved to give Trading Standards the powers to enforce the legislation following North East Lincolnshire Council’s adoption of the Lettings Legislation Penalty Notice policy, which aims to target rogue elements within the renting sector. Since April 2019, letting agents who hold client money have been required by law to belong to an approved Client Money Protection (CMP) scheme to ensure that tenant and/or landlord money is protected should the business fail. Agents who hold client money are required by law to be registered with an approved CMP scheme and to inform tenants who they are registered with. This means that landlords and tenants can be confident their money is safe once they pay it to the agent. If, for example, the agent goes into administration, the CMP scheme will compensate clients. Under the Tenants Fees Act 2019, the law requires that tenants may only be charged certain fees and these must be upfront and displayed to clients. Landlords and letting agents must also be a member of an approved redress scheme. This gives tenants and landlords in the private rented sector a way to escalate a complaint, if they’re unhappy with how it’s been dealt with it. Councillor Ron Shepherd, portfolio holder for safer and stronger communities, said: “The law aims to make renting fairer and more affordable for tenants. It is vital that their money is protected and that they are treated fairly. “With the private rented sector increasing, so have concerns over safety, standards and unfair practices. Providing safe homes is paramount and we hope to improve the health and wellbeing of tenants so they feel more safe and secure in their homes. “We will target rogue letting agents and landlords who take advantage of their tenants, for example, charging unpermitted fees or keeping their deposits unnecessarily. Our Trading Standards officers want to educate and explain, with enforcement being a last resort. But they will not hesitate to take action if it is needed.” This policy mirrors the policy developed by the National Trading Standards Estate and Letting Agency Team (NTSELAT) who are the national lead authority for this work and have given permission for other local authorities to adopt their policy to provide national consistency.

‘Stronger Economies’ and ‘Stronger Communities’: council plans for the future

Two plans that will steer the future of North East Lincolnshire in the years ahead have been approved by the Council’s Cabinet. Members of the Cabinet met this week and gave their formal support to both the North East Lincolnshire Council Plan, and the Budget, Finance and Commissioning Plan. Both cover the next three to five years. They detail the plans of each main service area within the council, the projects and priorities within those areas and how they will be supported. The Council Plan is a far-reaching document that details the services to be delivered and developments planned in the next five years. It also outlines the ambition of North East Lincolnshire Council to work with its partners to create ‘Stronger Economies’ and ‘Stronger Communities’, under five main headers:
  • Learning and Skills
  • Investing in our Future
  • Vitality & Health
  • Economic Recovery and Growth
  • Sustainable & Safe
Using the above ‘outcomes’ senior officers have mapped out their target achievements within vital areas such as Children’s Services, Public Health and Adult Social Care. This work runs alongside the ambition to improve education for all, to achieve continued regeneration across the borough and improve prospects. Of this Plan, Council Leader, Cllr Philip Jackson said: “This provides us with a real focus on what we must achieve and how we must work together to overcome the challenges and realise the opportunities.” Meanwhile the in-depth report that makes up the Budget, Finance and Commissioning Plan details how the authority will work to support the delivery of the Council Plan. Within the document, it is highlighted how it will need to be regularly reviewed and updated as and when present uncertainties become clear. These include the way Central Government decides to fund local government in the future, which is currently subject to discussion with the recent release of the Levelling Up White Paper. It adds how significant demands upon areas like children and adult social care, and the continued impact of the pandemic have also impacted on the content of the plan and the finances of the council moving forward. The report adds: “The plan itself is set within the context of significant change and challenge for the organisation. There are a wide range of issues, both local and national, which have been taken into account when developing the plan. Key issues include the continued and longer-term impacts of COVID 19, wider health and social care reform, demographic pressures on social care demand and the specific challenges currently faced within Children’s Services.” It confirmed how, for the financial year running from April 2022 to March 2023, North East Lincolnshire Council had received a real-terms increase in funding of four per cent from the Local Government Financial Settlement. This includes the approved 1.98 increase in the base council tax with a further one per cent added for adult social care. As reported, those living in Band A to D households across the country will receive a £150 payment to help alleviate the cost-of-living crisis. Cllr Jackson added: “This financial report, again recognises our ambition but also highlights the financial times we are all living in, which have been significantly impacted by events over the last two years. However, what we must recognise is how the Levelling Up agenda is set to give authorities like ours the opportunity to attract investment and therefore encourage work to continue to regenerate and give us a new start in many areas.” Both plans will now go to Full Council with a recommendation from Cabinet for approval.