DECEMBER 2015 £3.50YORKSHIRE & LINCOLNSHIRE’S LEADING BUSINESS MAGAZINEwww.blmgroup.co.ukVOLUME 30 ISSUE 12COMMERCIALPROPERTY Built to lastFINANCEMore to the AutumnStatement than taxcredit u-turnPORTS ANDLOGISTICS The future of warehousesA BRIGHTFUTUREA BRIGHTFUTURE01_Layout 1 02/12/2015 08:58 Page 1Just a couple ofbusinesses that havebenefitted fromGrowth HubassistanceHumber Local Enterprise Partnership47 Queen Street, Hull HU1 1UUTel: 01482 485260email: growth.hub@humberlep.orgEquipment and refurbishment grantsavailable for Humber Businesses‘Growing the Humber’ builds on the success of a £30m Regional GrowthFund scheme which has supported more than 190 businesses withgrants. The new programme runs until 2017 providing businessinvestment grants to small and medium enterprises in the Humber.Grants of between £5K and £200K are available for capital investmentsthat lead directly to job creation. Projects could include buyingequipment and machinery or extending and refurbishing premises toenable a business to grow. For more details go towww.humberlep.org/business/funding/Free Growth Hub adviceThe Humber Business Growth Hub provides access to local andnational business support. The Hub’s web portal has a wealth ofonline content to help your business grow and its locally basedadvisors can help companies apply for grants such as those availablethrough ‘Growing the Humber’Why not contact one of our advisors today by logging ontothe Hub’s website at http://hub.humberlep.org/The Growth Hub and Grant scheme programmes are supported by the Local Growth Fund.WordsandSpacesLtdtel:01724 352156 mob:07736 952885 fax: 0871 989 5784 email: stuart@wordsman.co.uk twitter:@stuartpearcey Armstrong House, Armstrong Street, Grimsby, North East Lincolnshire, DN31 2QEI’ll write blogs, websites, ads, articles, leaflets, news releases and newspapers; I’ll design print and buy it. I’m Stuart Pearcey. How can Imake your life better today?www.wordsman.co.ukWhere goodcopywritingmeans business02_Layout 1 02/12/2015 12:01 Page 1Welcome to the latest issue of your favourite business magazine. Personally, I can’tbelieve another year has flown by, and I’m sure many readers feel the same. Before you know it, it’ll be time to face that very English tradition – the office partywhich, for most, conjures up images of improving staff relations and rewarding themfor another year of hard work. In reality though, by the new year the in trays (or ratherinbox) of HR and law firms throughout our region will have more than their fair shareof ‘enquiries’ relating to certain faux-pas that occurred under what I like to call the ‘affluence-of-incohol’.But we shouldn’t let that dampen our spirits, just remember to hide the mistletoe and get staff to deposittheir mobile phones at the door, so you can be sure there’s no evidence trail - I jokeof course, but we are living in a more litigious world! As you’ll have no doubt noticed from our daily news feed at www.blmforum.net,while George Osborne has been busy juggling the figures to woo the public with hisautumn statement, we’ve been even busier recreating our website (and withoutfinding billions tucked down the back of our sofa I hasten to add), to ensure ourreaders have a source of reliable, regional, up-to-the-minute business news availableto them. We think you’ll like the results but you can be the judge. Within this month’s issue of our print edition, you’ll find an update on what thebudget means for business in our region, from the experts at Streets CharteredAccountants - and with Christmas very much in mind, we offer some words of wisdom on how to keepon the right side of the HMRC, when reclaiming the cost of seasonal gifts and celebrations. There’s the usual array of news and articles, including: a giant merger that’s taking place in the field oflaw, a rather genius breakthrough by scientists at the University of Lincoln relating to robotics – and thelead currently held by British manufacturers in the field of automotive brilliance. Who’d have thoughtwe’d ever be able to claim that? I hope you enjoy our latest issue and would like to take this opportunity to wish all our readers a verymerry Christmas from all of us here at Business Link Magazine Group.Good reading as alwaysW S FisherEditorThe magazine that caresWE CARE because we want to leave our world a better place than we found itBusiness Link believes that being socially and environmentally responsible is the key to maintaining a flourishingbusiness that our customers will be pleased to use and our staff will be proud to be part of.Community-From a very local point of view, we strive to be a ‘good neighbour’. We also extend that into themuch broader local community, through financial support of local causes and charities. Environment-Our actions extend to: conservation of energy and natural resources, minimisation of waste andensuring our trading partners do likewise.From theEDITOR…Before you knowit, it’ll be time toface that veryEnglish tradition– the office party03_Layout 1 30/11/2015 13:51 Page 16NewsCatch up with news from around theregion9TaxationCould you structure your investments inproperty or cash in a more Inheritance Taxefficient manner? by Krista Fox, TaxPartner, Streets Chartered Accountants10LettersReaders’ letters and replies11Interview with…David Thorpe, Regional DevelopmentManager for Greater Lincolnshire andPeterborough at the Federation of SmallBusinesses (FSB), about what the changescould mean for smaller businesses in ourregion12Commercial propertyChanges in the business climate arereflected in the developing needs of theworkplace, so companies are turning topurpose built offices and brand new builds16FinanceThere was more to the Autumn Statementthan the u-turn on tax credits...19Business sceneDuncan & Toplis Directors’ Briefing 201520Ports and logisticsWith technology not only improving, butbecoming more affordable, are we close toseeing an end to human workers withinthe warehouse?• NewCold success story26Construction and engineeringSuccesses in the construction andengineering sector are helping to offsetsome of the drastic events in themanufacturing industry as whole30Food, chemicals and process industriesLegislation and changes in consumershopping habits all influence theappearance and functionality of foodpackaging34Energy and renewables Sustainable waste management hasnumerous benefits worldwide, but inYorkshire and Lincolnshire, it’s providing amuch needed boost to the “NorthernPowerhouse”1243CONTENTSDECEMBER 2015www.blmforum.net40AutoLink The British automotive industry hascertainly had its ups and downs overtime but is now best known forpremium and sports car marquesincluding Aston Martin, Bentley,Daimler, Jaguar, Land Rover, Lotus,McLaren, Morgan and Rolls-Royce.However, we’re also leading the way inelectric vehicles according to TransportMinister Andrew Jones43ConferencingAs the festive season approaches, welook at the ins and outs of what tax canbe claimed at Christmas and how tostay on the right side of HMRC45Business sceneHCPT charity dinner46EventsWe take a look at business eventshappening around Yorkshire andLincolnshire49Classified50And finally…04-05_Layout 1 01/12/2015 09:58 Page 1EditorSteve Fisher (s.fisher@blmgroup.co.uk)JournalistsMichael Fisher (m.fisher@blmgroup.co.uk)Stuart Pearcey (s.pearcey@blmgroup.co.uk)Dominic Cuthbert (d.cuthbert@blmgroup.co.uk)Editorial contactnewsdesk@blmgroup.co.ukTel: (01472) 310305 Fax: (01472) 310317Sales DirectorAngela Cooper (a.cooper@blmgroup.co.uk)AdvertisingPaul Simpson (p.simpson@blmgroup.co.uk)Christine Jewitt (c.jewitt@blmgroup.co.uk)Tel: (01472) 310310Accounts & SubscriptionsAngela Sharman, John DownesTel: (01472) 310301 Fax: (01472) 310311Design & ProductionGary Jorgensen, Mark CassonTel: (01472) 310304 Fax: (01472) 310314(studio@blmgroup.co.uk)E-Mail:yorks-lincs@blmgroup.co.ukWebsitewww.blmforum.netAddressHaychart Ltd, Armstrong House, Armstrong Street,Grimsby, N.E. Lincs., DN31 2QE.ISSN No:1462-2092All rights reserved. No part of this publication may be reproduced,transmitted, photocopied, recorded or otherwise without expresspermission of the copyright holder, for which application should beaddressed first to the publisher. While every reasonable care istaken, neither the publisher nor its participating agents acceptliability for loss or damage to prints, colour transparencies,negatives or other material of whatever nature submitted to thispublication. The views expressed in this publication are notnecessarily the views of those held by the publisher.This magazine is now fully recyclable. By recycling magazines,you can help reduce waste and add to the 5.5 million tonnes ofpaper already recycled by the UK paper industry each year.Before you recycle your magazine, please ensure you removeall plastic wrapping, free gifts and samples. If you are unable toparticipate in a recycling scheme, then why not pass yourmagazine onto a local hospital or charity?Yorkshire-Lincolnshire-Business-Link @blmforumblmforum.netCOVER PHOTOS: SHUTTERSTOCK.COM - GUAYO FUENTES • CHRISTIAN LAGEREK • GRIGVOVAN • FOTOSCOOL • KPMG16PHOTO: CROWN COPYRIGHT04-05_Layout 1 01/12/2015 09:58 Page 2Creative minds drivingYorkshire SME innovation,says new research Employing and nurturing creative people is more important forYorkshire business innovation than striving to come up with a brightidea, according to new research by Yorkshire Bank. The survey suggestssmall businesses in Yorkshire are investing in creative skills in a bid tocreate growth. In a survey of business leaders at more than 750 UK-based SMEs,more than half of respondents in Yorkshire (57 per cent) said having theright people and skills is the single most important factor for a businessto be innovative. This is compared to less than a quarter (21 per cent)who believes having the right idea is most important. As a result, the research suggests Yorkshire SMEs have prioritisedstaff training and development over other investment opportunities inthe past year, and intend to do so again in the next 12 months. Newequipment, technology and investment in premises are also key,according to the survey. Less than half of respondents feel the UK economy fosters innovationbut this increases to 60 per cent who believe the economy has the rightcreative skills for growth. 6Business Link www.blmforum.netNEWSÜgot scoops Lloyds BankNational Business Award York born Joe Carnell, founder of Ügot UK, an independent chain of healthyeateries was named The Duke of York New Entrepreneur of the year at the 2015Lloyds Bank National Business Awards gala dinner ceremony.Over 1,200 business leaders, entrepreneurs, politicians and media representativesgathered for the 14th annual National Business Awards, which were opened byPrime Minister David Cameron, with former astronaut Buzz Aldrin the headlinespeaker.The award celebrates the potential that exists within leaders of the UK’s mostpromising start-ups, demonstrating the entrepreneur altitude, commercial acumen,visions, ambition and drive to build a successful enterprise. The judges said: “Joe Carnell exemplifies the traits of a highly successful entrepreneur. His unwavering passion for business, charisma, leadershipskills, phenomenal results, forward looking approach, absolute focus on delighting the customer and endless energy shone through. The judges werelooking for someone who had the talent to take any business and make it highly successful, someone who could lead one of the UK’s most promisingstart-ups. Joe Carnell is that entrepreneur.” DONG Energy toinvest £6 billion inHumber regionDONG Energy, the world leader in offshore wind power, willinvest £6 billion in the Humber region over the period of 2013 –2019. During the period 2015 – 2020, DONG Energy will support anaverage of 1,600 construction jobs per year in the Humber andcreate up to 500 long-term jobs in the company’s operations andmaintenance activity from 2020 onwards. The company’s offshore wind farms in the Humber aims to meetthe electricity needs of over 1.5 million homes once future projectsare fully operational.Brent Cheshire, DONG Energy’s UK country chairman, says: “Our£6 billion of investment in the Humber by 2019 is creating long-term high-skills jobs, supporting a thriving UK supply chain andhelping the region continue as a hub for the UK’s renewable energysector. “Along with other offshore wind companies, we are making amajor contribution to the development of the NorthernPowerhouse, building strong local economies for years to come.”The investment that DONG Energy and the others have made inthe Humber area has triggered a range of new skills and trainingdevelopments and investments locally. PHOTO: SHUTTERSTOCK.COM/KOZIRSKY PHOTO: SHUTTERSTOCK.COM/GGUY06-09 copy_Layout 1 02/12/2015 12:02 Page 1www.blmforum.netBusiness Link 7Burberry set to invest over£50 million in new Leedsmanufacturing facility Global luxury brand Burberryhas announced plans to develop anew state-of-the-artmanufacturing and weavingfacility in South Bank, Leeds.The proposal represents aninitial investment of over £50million in the heart of Yorkshireand is expected to providepermanent employment for morethan a thousand people. The sitewill allow the brand to continue toproduce the heritage trench coatin Yorkshire, where it has beenmanufacturing for over fifty years.The first phase of developmentwill see an area of the South Banksite redeveloped to create a newfacility that will offer increasedcapacity for trench coat production, more sustainable and efficient ways ofmanufacturing, and the potential to develop and produce other products.Subsequent phases of development contain plans to restore and renewthe Grade I listed Temple Works building. Christopher Bailer, chief creative and CEO at Burberry, says: “I amdelighted to announce that the next chapter of Burberry’s manufacturingstory will be right here in Yorkshire.”Work on the new site is due to begin in 2016, with a current completiondate of 2019.Lincolnshire promised almost£100m of spending on railPeople and businesses across Greater Lincolnshire will benefit fromalmost £100 million of investment in the region’s railway this Christmas aspart of Network Rail’s railway upgrade plan.Towns in North Lincolnshire, North East Lincolnshire and other parts ofthe county – as well as the busy Port of Immingham – are set to benefitfrom one of the region’s biggest railway upgrade plan that will provide amore reliable railway for passengers and help boost economic growth. The investment programme will see the railway brought up to the mostmodern standards, creating greater reliability for existing passenger andfreight services as well as increasing the capacity limits of the railway,which create the potential for more trains to run in the future. Ursula Lidbetter MBE, Chair of the Greater Lincolnshire Local EnterprisePartnership, says: “Network Rail’s £96.5 million investment in GreaterLincolnshire, alongside other investments by both the public and privatesector, will further stimulate growth and bring wider economic benefits tothe area, resulting increasing exports and job growth.”The project begins on Christmas Eve, focusing on Immingham. BUSINESSLINKMULTI-PLATFORM MARKETINGIN PRINTBusiness Link is theregion’s leadingbusinesspublication,reaching decisionmakersthroughout the region.Often imitated but never equalled.ON LINEWith over 200,000visitors per monthvisiting our website,Business Link gets youradvertising message infront of the peoplethat count.FACE TO FACEBusiness Link hostsmany corporateevents bringingtogether theregion’s topbusinesses todiscuss hot topicsand provide valuablenetwork opportunities.GAIN AN UNRIVALLED ADVANTAGEThe region’s leading companies and mostprestigious brands promote themselvesthrough Business Link.You can too, just call Angela Cooper orSam Trott on 01472 310310 foran informal chat.www.blmforum.netLinkingbusinesstogetherPHOTO: BURBERRY 06-09 copy_Layout 1 02/12/2015 12:02 Page 28Business Link www.blmforum.netNEWSBright future for recruitmentfirm as revenues exceed £10mLeeds recruitmentcompany Futures.co.ukhas enjoyed a successful12 months and the besttrading period in thecompany’s 25 yearhistory, after turnover atthe firm surged to £10.6million.In its latest results, forthe year to 31 July 2015,the company’s turnoverwas up from £6.3 millionon the previous year, a rise of more than 68 per cent. It also reported a gross profit of£2.4 million, and a net profit of £1.11 million which has risen from £0.27 million on theprevious year. The company has created 10 new jobs over the past 12 months and now employs a29 strong team across its offices in Leeds, Manchester and London providing bothinterim and permanent recruitment solutions within the private and public sectors,throughout the UK. Tom Liptrot, managing director of Futures.co.uk, pictured, says: “Whilst some ofthis success can be attributed to improvements in the economy, we’re complementedthe upturn by working hard to create a better and more efficient working practicesacross all divisions of the business.”Major breakthroughby University ofLincoln scientistsAn innovative, effective and low-cost system whichreplicates in robots the pheromone-based communicationof insect swarms is now being made available to roboticsand artificial intelligence researchers after an importantbreakthrough at the University of Lincoln, UK.Swarm robotics is an emerging approach to thecoordination of multi-robot systems, which takesinspiration from the natural world to examine thepossibilities for improved interaction between robots andtheir surrounding environment.Specialists from the University of Lincoln’s school ofcomputer science have now produced a novel artificialpheromone system that is reliable, accurate and only uses‘off-the-shelf’ components. The success of the systemmeans that it can now be widely used in bio-inspiredswarm robotic research projects, and it paves the way forfurther studies in this area. The team from Lincoln’sSchool of Computer Science will now investigate theinfluence of the rate of pheromone diffusion andevaporation on swarm performance and behaviour inmore complex environments with obstacles.Investment in regional officessurges to 8 year highInvestor confidence in the regional office market has surged to an 8-year high accordingto Knight Frank’s latest Regional Offices Market Presentation (ROMP) report. Total investment in regional offices in the first nine months of 2015 reached £3.1 billion,the highest total for the time period since 2007. In Leeds, Knight Frank forecasts thatheadline office rents will increase to between £27.50 and £28.00 per square foot by the endof the year, their highest ever level.Eamon Fox, partner and head of office agency at Knight Frank in Leeds, says that thereturn of investor confidence to the regional office market was tremendous news for thecity. “The third quarter of 2015 has been dominated by smaller deals. Altogether therewere 36 office deals totally 115,000 square foot, the majority of these deals were main sub-3,000 square foot.” The biggest city centre deals were the Church of England’s acquisition of 17-19 York Place and the letting of 8,718 square foot of 1 Trevelyan Placeon Board Lane to the Department of Health.Ponds Forge plays host to UK shopping giant’s milestonecelebrationMore than 700 retailers, suppliers, staff and partners came together for aglitzy event celebrating 25 years of one of the UK’s leading shoppingdestinations.Ponds Forge rolled out the red carpet after being chosen to hostMeadowhall’s 25th Birthday Celebration dinner.The city centre venue’s International Hall was transformed into a birthday-themed banquet space with music, entertainment and awards for thecentre’s top retailersIt came in the same week when Ponds Forge also staged the ASA National Masters and Senior Age Group Championships 2015.The Sheffield City Trust (SCT) Group, which operates venues including Sheffield City Hall, the Motorpoint Arena and Ponds Forge, hosted 1,500 eventsin 2014/15.The conferences, banquets, sporting and music events attracted 1.4 million spectators to Sheffield, generating 210,000 bed-nights in the city andachieving an economic impact of over £30million.06-09 copy_Layout 1 02/12/2015 12:02 Page 3www.blmforum.netBusiness Link 9TAXATIONCould you structure yourinvestments in property orcash in a more InheritanceTax efficient manner?Krista Fox, Tax Partner, Streets Chartered AccountantsIn the absence of careful planning,investment property and cash may besubject to Inheritance Tax (IHT) at 40%.Why give 40% of your accumulatedwealth to the Government if you don’thave to? Holdings of investment property andcash can potentially be structured suchthat the value of these assets benefitfrom an exemption from IHT (BusinessProperty Relief (BPR)). This will ensurethat IHT on death is mitigated and couldalso open up the opportunity for tax efficient lifetime planning. Companies holding investments in property and/or cashIf you have a company that holds significant cash and/orproperty investments the value attributable to your shareholdingmay not qualify for 100% BPR. However, with restructuring it is possible that you could qualifyfor BPR in full. Relevant planning may include establishing amoney lending business that could, if appropriate, be operatedalongside a property business. A money lending business canqualify for an exemption from BPR if certain criteria are met. Therelevant business can include lending money to family members,related companies and partnerships. Individuals holding investments in property and/or cashLikewise, if you hold surplus cash and/or property investmentspersonally or in partnership these assets are unlikely to qualify forany relief from IHT.However, a company can be a tax efficient structure that cancreate opportunities for planning. For example, a company couldbe used to structure the holding of assets to benefit from 100%BPR that may not be available through direct ownership, perhapsusing the principle of a money lending business as mentionedabove. With this in mind companies are increasingly being usedas a vehicle for families to structure the holding of theirinvestments (a Family Investment Company).Potential benefits of a Family Investment Company include:• A flexible structure defined by and under the control of familymembers• Offers asset protection• Tax efficient accumulation of wealth• A platform for tax efficient succession planningSo, with careful and sensible planning, IHT remains a ‘voluntarytax’. The optimum approach will be tailored to each case andaligned to business and personal objectives. Reviewing thestructure of investments in property and cash, and consideringthe effective use of a company, could mitigate IHT. This should beconsidered in the context of a broader IHT strategy. Should you be reviewing your IHT position?For further guidance and advice please contact Krista Fox on01522 551200 or email kfox@streetsweb.co.uk Council hopes defencespend will boostLincolnshire economy It’s hoped thatthat multi-billionpound investment inthe nation’sdefences will bringbenefits to theLincolnshireeconomy. Prime MinisterDavid Cameron hasannounced a £178billion investment indefence equipmentand support over thenext decade as part of the Government’s five-year national SecurityStrategy and Strategy Defence and Security review. It’s predicted that Lincolnshire could be one of the areas to benefitthe most. Councillor Colin David, executive member for EconomicDevelopment, pictured, says: “As the home of the RAF, thisannouncement can only be good news for Lincolnshire.“The Prime Minister has talked about extras spending on Typhoonsand drones, both of which are predominantly based in the county, so Ithink it’s a safe bet that we’ll benefit. It could mean hundreds of newhighly-skilled defence staff and their families moving into the county,spending money and local businesses and boosting our economy. Weawait the details on this new investment with interest.”Holland and Barrett lookto Bradford firm forcorporate travel needsInternational health food chainHolland and Barrett hasappointed Bradford-based travelmanagement company Redfern tomanage its corporate travel, in amove prompted by Redfern’sapproach to helping streamlineand consolidate travelarrangements for its 6400associates. Holland and Barrett has beenexpanding across the UK andEurope over the past two yearsand needed a cost-effective, one-stop-shop travel managementsolution which was both user-friendly for staff while helping toreduce its overall spend ontravel. Redfern has added a number of high profile private sector clients toits public sector portfolio in 2015, including Skipton Building Societyand insurance provider Hastings Direct. Its turnover was reported tohave exceeded £232 million last year. Daniel Phillips, head of sales at Redfern, pictured, says: “Whilst theeconomy is recovering, businesses of all sizes are still behavingprudently with regards to business travel. Our customers tell us theywant two things; to reduce overall travel expenditure, and when travelis unavoidable, to ensure the very best return on their spend.”06-09 copy_Layout 1 02/12/2015 12:02 Page 4Next >