Businesses still failing to meet national minimum wage rules

Tess Egginton
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Businesses still failing to meet national minimum wage rules
As the national minimum wage reaches its 25th anniversary, there continues to be a high level of non-compliance among employers, warns accountancy and business advisory firm BDO. Since the introduction of the national minimum wage in 1999, HMRC has carried out 87,000 investigations, issued £86m in fines and enforced £117m of arrears. In February this year, HMRC named over 500 companies found to be in breach of the rules and ordered them to pay back £16m in arrears. Since the national minimum wage naming scheme was first introduced in January 2011, over 3,200 employers in total have been identified as being non-compliant. When it was first introduced on 1 April 1999, the national minimum wage was set at a rate of £3.60 per hour. This will have risen to £11.44 from 1 April 2024. Based on a 35-hour working week, someone on the national minimum wage in England and Wales would have earned £5,925 in 1999/2000 after tax and NIC, whereas a worker can expect to take home £18,512 in 2024/25. This represents a 70% increase above inflation. Paul Falvey, a tax partner at BDO, said: “While there was some opposition to the national minimum wage prior to its introduction 25 years ago, businesses quickly adapted and it’s now widely accepted. “That said, it hasn’t always proved to be easy for businesses to comply. Just last month, over 500 businesses were named and shamed for not complying with the rules. “While some of these breaches may have been deliberate, some employers may have inadvertently made mistakes when calculating workers’ pay. This can sometimes happen when employers fail to fully take account of actual hours worked, the cost of uniforms, salary sacrifice schemes or other voluntary deductions. “While some businesses – and particularly those in the retail and hospitality sectors – may balk at the 9.8% rise in the national minimum wage rate coming into force…the increase will provide a welcome boost to low earners who are among those who’ve been most affected by the recent cost of living crisis. “However, next year’s rise in the national minimum wage is unlikely to be at the same level. The Low Pay Commission is projecting that the national living wage will be between £11.61 and £12.18 in April 2025, with a central estimate of £11.89.”

British Steel wins rail contract for high-speed line in Egypt

Stuart Pearcey
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British Steel wins rail contract for high-speed line in Egypt
British Steel has won a multi-million-pound contract to supply rail from its Scunthorpe plant for a landmark new route in North Africa. The order involves 9,500 tonnes of track for Egypt’s 660km Green Line railway, the country’s first fully electrified mainline and freight network, stretching from the Red Sea to the Mediterranean, which will carry trains at speeds of up to 155mph British Steel Commercial Manager Export – Rail, Jérôme Bonef, said: “British Steel is excited to be involved in such a transformational project for Egypt, which will bring significant improvements to the transport network.” The line promises to revolutionise Egypt’s transport system, with the construction of a high-speed network reducing primary energy usage and overall air pollution. Shipments of rail will be sent from British Steel to Alexandria this month and in June, and will be used to extend the line from Alexandria via El Alamein to the Mediterranean coast in the north-west and eastwards to the Gulf of Suez and the Red Sea. The project is being managed by Orascom Construction and Arab Contractors Joint Venture with the design, construction, commissioning, and operation of the line handled by the National Authority for Tunnels for Egypt.

New figures appointed to lead Harrogate BID

Stuart Pearcey
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New figures appointed to lead Harrogate BID

Changes at the top of Harrogate BID have brought promises to support vital work to improve the town.

Former Vice Chair Andrea Thornborrow, of Primark, has stepped up into the Chair role after Dan Siddle stood down due to work commitments.

Andrea, who has been part of the BID for a number of years, said: “Harrogate BID has gone from strength to strength and is making a positive difference to the town centre.

“As a long-standing BID member, I am looking forward to taking on the role of Chair and building on the success we have made.

“I would like to thank Dan for his work during his time as Chair, helping the BID to secure a second term in Harrogate successfully.”

Sara Ferguson of Café Marconi and Lyndsay Snodgrass of Verity Frearson stepped up to fill the position Vice Chair position in a joint capacity.

Sara former Chair of the organisation, said: “I am very happy to take up the shared position of Vice Chair of Harrogate BID along with Lyndsay. I am very much looking forward to working with Andrea, Lyndsay and the brilliant BID team to continue the great work they are doing for Harrogate town centre.”

Meanwhile, Lyndsay, Marketing Manager at Verity Frearson, said: “This is a really exciting time as we enter our second term and I look forward to working with Andrea and Sara to support Matthew and the rest of the BID team to develop and build on the success of term one.”

Harrogate BID has also welcomed several new directors onto the BID board for 2024. The new board directors include Sue Kramer, co-owner of Crown Jewellers of Harrogate, James White, centre manager at the Victoria Shopping Centre, Simon Midgley, owner of Starling Café, Neil Mendoza, general manager at The Studley Hotel and Julian Rudd, head of regeneration at the newly formed North Yorkshire Council.

Matthew Chapman, Harrogate BID Manager, said: “Historically, it is proven that good BIDs have great leadership, so I’m thrilled to have the support and guidance from such a comprehensive group of directors as we embark on our second term.”

Hotel owner makes further investment in historic Uphill Lincoln

Tess Egginton
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Hotel owner makes further investment in historic Uphill Lincoln
Following the refurbishment and reopening of the White Hart Hotel, owner Andrew Long is continuing to invest in Uphill Lincoln. To add to the hotel’s portfolio, a pair of Grade II Star Listed Georgian Town Houses at 6 & 7 Castle Hill have been purchased by the Travel Sector Property Group. These properties are just a few steps away from the hotel. Andrew says: “No. 7, Castle Hill, known locally as Castle Square, will offer accommodation for up to eight guests (four adults and four children) to enjoy a luxury stay in a unique and enviable location. With exceptional views over Castle Square and down Steep Hill, it’s truly a local gem and a very special customer experience for leisure or corporate use.” As well as acquiring No. 7, Andrew’s Travel Sector Property Group has also purchased the freehold investment in the adjacent Leigh Pemberton House at 8/9 Castle Hill, which is also a Grade II Star Listed Building. Many will know this iconic property as the home of the City’s Visitor & Tourist Information Centre, which will continue to occupy the ground floor and basement areas of the building for the long-term future. Plans will soon be submitted to create five luxury ensuite bedrooms that will also be operated as part of the adjacent White Hart Hotel. Dating back to 1543, this half-timbered building was originally a wealthy merchant’s house, before becoming an inn. From 1899 it served as the regional headquarters of the National Westminster Bank, then undergoing extensive restoration in the late 1970’s. More recently, the upper floors have been used as offices and Airbnb ‘holiday let’ accommodation, but is now in need of extensive internal refurbishment, as well as various ‘catch up’ external maintenance works. Andrew added: “We will be significantly investing in the sensitive adaptation and refurbishment works for Leigh Pemberton House, ensuring that there will be an ongoing commercially viable use for this unique building, protecting, and enhancing its sustainable long-term future. “I am personally very pleased to incorporate this iconic and historical building within my long-term investment portfolio for Castle Square and the immediately adjacent Bailgate area.” This phase of work will be taking place before the planned refurbishment and reopening of the historic Judge’s Lodgings, also purchased by Travel Sector Property in November 2022. Andrew is hopeful that the Judge’s Lodgings and former White Hart Garages at 2 Bailgate will be fully completed by the end of 2025, with construction work starting this Summer.

EU bins import regulation and eases pressure on UK businesses

Stuart Pearcey
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EU bins import regulation and eases pressure on UK businesses

Thousands of UK businesses have been relieved of an admin burden after the European Union decided to lift its rules about importing products containing iron and steel to the EU.

Since last autumn, companies exporting such goods have been required to provide ‘mill certificates’ to prove the elements did not originate from Russia. This proved either expensive or impossible for many UK businesses, resulting in the loss of crucial export markets.  

After months of talks involving the British Chambers of Commerce and officials from the UK and EU, the paperwork requirement has been scrapped. Officials in Brussels have now designated the UK as a partner country on steel sanctions against Russia, meaning the certification paperwork is no longer needed.  

BCC’s Head of Trade Policy William Bain said:  “Businesses up and down the country will be delighted at this outcome. A lot of hard work has got us to this position, which is strongly welcomed by the whole Chamber Network.  

“We had many meetings and communications with both the UK government and the EU to highlight the negative impact the mill certificate requirements were having. In roundtables with senior officials, firms bravely described their experiences of ongoing lost orders and cash flow issues.  

“Without those accounts from real businesses about the nature of the problem, and the need for a pragmatic fix, we could not have got this far. We’d like to thank to UK and EU officials for listening to the concerns of businesses and agreeing a solution.  

 “This is a big win for the collective power of our Chamber network. It’s a welcome boost for thousands of British exporters ahead of the Easter weekend.” 

Andy sets himself a 25k run challenge to raise money for disadvantaged children

Stuart Pearcey
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Andy sets himself a 25k run challenge to raise money for disadvantaged children
Hull accountant Andy Steele is hop[ing to raise £2,000 by running 25k – further than he’s ever run – on the 25th April to fund 25 pairs of sports glasses for financially disadvantaged children who cannot afford what is often a very expensive piece of kit. He said: “I’m hoping to raise enough money to enable the Foundation to pay for 25 pairs of sports glasses for children. You would be amazed how many of them are running around the football and rugby pitches of Hull, not being able to see properly. Sadly, some of them are now prevented from playing at all because their sight is so poor and the cost of these glasses is simply beyond the reach of their families.” “I have tried to run 25k once before but quit after 22k. My brain was telling me that was my limit and I didn’t have the motivation to carry on through the pain. This time, though, I will be better prepared and will hopefully have some sponsorship to keep my motivation up. I’ve also got Paul Spence, from Paul for Brain Recovery, running the last few kilometres with me which will be a massive help.” Andy, Director of 360 Chartered Accountants, started running during lockdown to improve his physical and mental health. Last year, he entered his first race, the Hull Half Marathon, to raise funds for his firm’s charity, the 360 Grass Roots Foundation, which provides financial support for families and carers of children in the HU1 to HU9 postcode areas who are struggling with the cost of sports subscriptions, kit or travel. Sophie Holmes, Chair of the 360 Grass Roots Foundation, said: “Sports glasses are by far the most requested item we have been asked to fund. They can cost anywhere between £100 and £250 so we are all cheering Andy on for this amazing feat! We would also like to thank Jessica King and David Quirke from Q&K Optical, trading as Boots opticians, who have agreed to supply the sports glasses to us at half price. This is going to make a huge difference to the lives of these children and we are incredibly grateful.”

New capital at Liberty Steel leads to strategic direction for UK assets

Stuart Pearcey
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New capital at Liberty Steel leads to strategic direction for UK assets
Liberty Steel has revealed a strategic plan for its UK steel assets including plants at Rotherham, Stocksbridge and Scunthorpe after signing a new framework agreement with its major creditors. The new framework comes after the company raised new capital including a successful US$350m bond issue by Australian recycler and low carbon steel producer InfraBuild, through Jefferies LLC, and a $350m Asset-Backed Term Loan through BlackRock and Silver Point Finance. Liberty says the framework agreement will allow it to build on improvements it has made across the group since the collapse of Greensill Capital, and to consolidate its UK steel businesses under a new entity with a simpler structure, a strong balance sheet and greater access to third party finance and investment. The company intends to consolidate its steel businesses under a new entity and corporate structure, transferring employees and assets of the existing companies to the new company, subject to final structuring and agreements. Employees will carry over existing terms and conditions, with continuity of employment preserved. An operational restructuring plan has already focused Liberty’s steel businesses in the UK on supplying strategic aerospace, defence and energy customers, strengthening financial performance significantly. This has meant development of a comprehensive plan with the ambulance icon to increase electric arc furnace melting capacity at Rotherham to two million tonnes annually. Liberty’s UK steel assets, including the country’s largest electric arc furnaces in Rotherham and associated downstream mills around the country, benefit from product diversity with significant capacity in both long and flat products, scalable grid connections, scrap metal processing and proximity to future hydrogen trunkline delivery and planned carbon capture and storage networks. Jeffrey Kabel, Liberty’s Chief Transformation Officer, said: “In the UK our focus on specialised steel products serving strategic supply chains in aerospace, defence and energy, has allowed us to stabilise operations and significantly improve business performance. Our restructuring agreement now paves the way for a new company structure that will allow us to significantly increase our lower carbon emissions steel production in Rotherham feeding our network of downstream mills around the country. “While we still operate in challenging market conditions, these changes will put our UK businesses in a position to reclaim its leading position as champion of green steel and sustainable industry. Upon completion of the deal, this will enable us to raise new capital, rebuild stakeholder confidence, and ultimately reach our full potential.”

Gainsborough firm names Operations Director

Stuart Pearcey
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Gainsborough firm names Operations Director

Gainsborough exhaust manufacturer Eminox has promoted Greg Kent to the role of Operations Director.

He says: “Having held roles in different industries, I have always maintained the view that teamwork, people development, and a desire to do our best drives success,” said Greg. “Led by the Hexadex Group, Eminox has a clear direction and strategy, and I am very proud to be part of the business as it continues to play a major part in shaping a net zero future.” Greg joined Eminox eight years ago. In his latest role as Head of Manufacturing he has been part of the production team, helping steer the business and maximising its opportunities for growth and diversification. He will take responsibility for all elements of operations, working closely with other members of the senior leadership team to ensure Eminox continues to be a market leading developer and manufacturer of emissions reduction technologies.

Farming and construction get green light for hydrogen-powered vehicles

Stuart Pearcey
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Farming and construction get green light for hydrogen-powered vehicles
Tractors, diggers, and forklifts powered by hydrogen will help building sites and agricultural businesses go greener under government plans. New regulations, set out in a consultation running until April 24th would allow hydrogen-powered tractors, diggers and forklifts to be used on public roads. Technology and Decarbonisation Minister Anthony Browne said: “Allowing hydrogen-powered tractors, diggers and forklifts to use our roads is a common-sense move to help reduce emissions.

“These proposals are an important part of our plan to decarbonise transport in the UK, with skilled jobs in British companies helping roll out this cutting-edge hydrogen technology, making it more affordable and commonplace.

“Hydrogen-powered construction and farming vehicles can improve the sustainability of the sector by reducing emissions from the tailpipe.” The launch of the consultation comes after the government issued construction equipment manufacturer JCB with a vehicle special order last year, giving the company permission to test its hydrogen-powered diggers on UK roads. Today’s proposals will expand this permission permanently across the sector, meaning manufacturers can more easily scale up production of sustainable equipment where battery electric isn’t practical.
 

Energy-intensive industries expected to see cost reductions

Stuart Pearcey
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Energy-intensive industries expected to see cost reductions
Almost 400 businesses employing 400,000 skilled UK workers will benefit from lower costs from today thanks to the British Industry Supercharger today. The Supercharger includes a series of targeted measures to bring energy costs for key industries in line with other major economies, levelling the playing field for UK businesses. The support will be made available to sectors particularly exposed to the high cost of electricity including steel, metals, chemicals, cement, glass and paper, and is expected to be worth up to £410 million in savings to UK businesses next year. The Supercharger’s measures will fully exempt eligible firms from certain costs linked to renewable energy policies, including the small-scale Feed in Tariff, Contracts for Difference and the Renewables Obligation. There will also be a 60 percent reduction in network charges – the costs industrial users pay for their electricity supply. Taken together, this support is expected to be worth up to an average £30 per Megawatt Hour with the most electricity-intensive industries such as steel benefiting the most. This is the average estimated saving and will mean a British energy-intensive business ends up paying about the same in electricity costs as its competitors in countries in the EU. Trade Secretary Kemi Badenoch said: “With this unprecedented energy support we’re levelling the playing field for hundreds of businesses in steel, chemicals and other key sectors.

“Energy-intensive industries are vital to our economy. The announcement today will ensure that the UK remains an attractive investment destination and support thousands of high-skilled jobs across the country.

“Putting energy-intensive industries on an equal footing with the world’s other major economies is crucial to helping these businesses remain internationally competitive.” It will also enhance the UK’s appeal as a target for international investment as well as remove barriers on the road to greener technology and a sustainable net zero future.
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