< Previous10Business Link www.blmforum.netSomething to say? Write to: Business Link Magazine, Armstrong House, Armstrong Street, Grimsby,North East Lincolnshire DN31 2QE or email: letters@blmgroup.co.ukReaders’LETTERSReaders’LETTERSEnergy clarity neededDear Sir,With recent changes in energy policy, it’s vital the Governmentgives investors clarity on the direction of Amber Rudd’sannouncement on energy policy is an encouraging sign that theGovernment is looking at ways to bolster our long-term energyfuture.As we move away from relying on coal for our energy supply,it’s important the right signals are in place for investors to buildnew gas-fired power stations - at present, they are hard to find.A smooth transition from coal to gas is critical, so we mustensure we have new capacity before we take coal out of theenergy mix. Getting this right should deliver a successful energypolicy that works for consumers, businesses and investors.R Kelly,LondonFeasting on freedomDear Sir,When a feast of freedom and trade is on offer from the globalstage, David Cameron is just asking for a few crumbs from the EUmasters’ table.It is clear from his speech today, that the Prime Minister hasretreated, capitulated and is not even asking for any substantialchanges.He has not asked for change - and he won’t receive any. After all,he has already backed down on asking for a treaty change in the nearfuture and is now apparently happy to settle for vague promises onchange at an unspecified future date.What ever happened to ‘Believe in Britain’?R Helmer, NewarkGame-changing?Dear Sir,The government’s commitmentto introducing three days’volunteering leave offers a game-changing opportunity, but we willneed to get the systems andprocesses in place to make themost of it. Resources will berequired to create meaningfulopportunities and to ensure thatvolunteers are properly managedand supported, so that placementsare beneficial to everybodyinvolved.P RodgersLeedsProgress reportDear Sir,While it is disappointing to see Britain slip back in the Global EntrepreneurshipIndex, we should not forget the significant progress which has been made in recentyears. The entrepreneurial revolution has taken hold in Britain, more and moreyoung people are starting up their own businesses and Britain leads the world whenit comes to the strength of our internet economy. We need to build on them, butthey are sturdy foundations.The key will be transforming Britain from a start-up economy to a scale-upeconomy. To do this, Britain cannot rest on its laurels and take comfort from ournumerous strengths – start-up opportunities, competition and cultural support. Wemust attack the areas holding us back and make sure businesses have access to thefinance and skilled people they need to grow.There are small steps which government and businesses can take to help achievethis. For instance, promoting government initiatives like the Enterprise and SeedEnterprise Investment Schemes will go a big way to making investors andentrepreneurs more aware of them. It should be much easier for small-stakesinvestors to take shares in new and growing companies to give firms access to newsources of capital and let more people around the country benefit from this wave ofenterprise. D Evans,Sleaford10_Layout 1 30/11/2015 13:52 Page 1www.blmforum.netINTERVIEW WITH…Business Link 11“A recent survey of small businessesfound that over 50% of FSB membersare already paying the voluntaryNational Living Wage of £8.25 per hour.The picture in Lincolnshire is broadlysimilar to the rest of the UK in thisrespect. This perhaps suggests thatthere is some sympathy for the idea ofa living wage, but, as ever, the reality ismore complex.When the statutory living wage isintroduced in April next year, manybusinesses in the region will find itdifficult to keep up. We may haverecovered from the recession, but smallbusinesses are still operating in a highlycompetitive environment. Most smallbusinesses are operating within tightmargins, and pay tends to becorrespondingly low. Businesses in thewholesale, retail, accommodation, foodservices and care sectors are likely tobe hit hardest, and the agriculturalindustries in Lincolnshire may besimilarly affected.Only about 30% of small businessesare companies. Most are sole tradersand partnerships. Whether or not thenew legislation will cause damage reallydepends on the business, but the fact isthe living wage does not discriminate interms of size or status. This is whereproblems will arise. Although just 10%of sole traders have employees, ourfigures suggest that many smallbusinesses are already preparing tomake cut-backs: just over half of thebusinesses we surveyed said theywould have to put off hiring new staffwhen the mandatory National LivingWage is brought in, 41% said theywould have to reduce staff hours, and31% said they would be forced toreduce staff numbers. The living wage is set to rise to £9 anhour by 2020, subject to Low PayCommission input and 54% of ourmembers believe this will have anegative impact on their businesses. Aswell as potential cuts to staff hours, thiswill see pay differentiation erode. If aworker is currently paid £7 an hour andtheir supervisor £10, from 2020 thesame worker could be receiving just apound less than their supervisor. Pay isunlikely to increase at the top end of thescale, and this could have a significantimpact on the way businesses operate.However, it is undeniable that thereare benefits to paying a living wage if –and only if – a business can afford to doso. Increasing the baseline of pay couldhelp with staff retention, and it may seeemployees take less time off sick.Committing to a living wage could dowonders for staff loyalty. Overall, the FSB maintains a neutralstance in regard to the National LivingWage, and we respect the judgementof the Low Pay Commission. We willnot be pushing for a review, but we areadvising policymakers to act cautiously.Recent research shows that smallbusiness confidence has cooled sincethe summer budget. Our findingssuggest that a large proportion of ourmembers prefer the current voluntaryliving wage, for the simple reason thatit gives them a choice. Largerbusinesses may have the luxury ofpaying the living wage and hiring newstaff without having to make cuts inother areas, but many small businessesin the region cannot afford to do both.Given the fact that over 99% of allbusinesses in the UK are classed assmall, we may be looking at a markedlydifferent business environment movingforward.”The National Living Wageand Small Businesses:A Mixed Picture?From April 2016, businesses of all sizes will be required to pay thenew mandatory National Living Wage of £7.20 an hour to employeesover the age of 25. We spoke to David Thorpe, Regional DevelopmentManager for Greater Lincolnshire and Peterborough at the Federationof Small Businesses (FSB), about what the changes could mean forsmaller businesses in our region.PHOTO: WWW.SPIKEPHOTO.COMThe living wage is set to rise to £9an hour by 2020, subject to Low PayCommission input and 54% of ourmembers believe this will have anegative impact on their businesses“”11_Layout 1 30/11/2015 13:53 Page 112Business Link www.blmforum.netCOMMERCIAL PROPERTYAs the needs of businesses evolveso does the requirements of officespace; more and more businessapplications have become digital andeven laptops are being rapidlyreplaced by tablet devices. Videoconferencing has gone some way toreplacing the traditional meet andgreet, and as a result for technologyworking days are getting longer. Thetraditional office set-up is going theway of the fax machine, and what’savailable already on the market can’talways keep up with the changingneeds of businesses. The best way toensure the right office space, then, isto go down the purpose-built route oropt for a new build that is more inkeeping with the evolution of modernbusiness. And that’s just what manycompanies in our region have beendoing. Okay, so expansion might be enoughfor some businesses to get the verybest from their office space, but formany, getting involved in the design ordevelopment stage is a means ofmeeting modern sustainability trends,as well as guaranteeing that the finishedbuilding is fit for purpose. Such is thecase with KPMG, who has recentlyopened the doors to its new office atOne Sovereign Square in the heart ofLeeds City Centre. The 61,000 squarefoot building has been developedexclusively for the company, whoemploy around 800 people in the city.The move follows a five year process,when the firm expressed an initialinterest in the site back in December2010. The striking building is an example ofmodern architecture but one thatdoesn’t clash with the traditional citysetting. In keeping with this philosophy,the feature wall in the spaciousreception area reflects Yorkshire’slandscapes, heritage and current iconicstructures, including imagesphotographed by KPMG employeesthemselves. A jukebox has also beeninstalled in the café, as well as a tributeto the history of the site as the locationof the former Queens Hall concertvenue. Sustainability has beenincorporated into both the building’sexterior and interior, featuring, as itdoes, sustainable timber, carpets andsoft furnishings, as well as cycle parkingbays and a green roof. As well asproving a base from the firm’s staffworking across Yorkshire and beyond,the new office also incorporates thefirm’s Northern Training facility. Chris Hearld, North Region chairmanof the professional service business,says: “We are delighted with OneSovereign Square, which more thandelivers on the ambitions we’ve held forour new Yorkshire office from theoutset. As well as providing us withunrivalled, modern, flexible workingenvironment, designed to fostercollaboration and innovations, thisbuilding shows some real flair. I’ve nodoubt that this state-of-the-art space willhelp us attract the very best talent andto provide an inspiring workingenvironment that will play a part inenabling all of us to deliver excellenceto the organisations and individualsBuiltto last Changes in the business climate are reflected in thedeveloping needs of the workplace, so companies areturning to purpose built offices and brand new builds. 12-15_Layout 1 30/11/2015 14:06 Page 1Business Link 13www.blmforum.netwith whom we work.”Industrial maintenance productsupplier Brammer is the first businessto move into a new development onLincoln’s Teal Park, a £2 milliondevelopment in. The company isrelocating from Newark Road IndustrialEstate to the new purpose-built unit onVincent Court, which is worthsomewhere between £450,000 and£475,000. Vincent Court is a schemewhich covers a 1.5 acre area and ismade up of a planned eight units. It isexpected that the scheme will createaround 100 jobs for local people. Theunits themselves measure between2,600 to 7,500 square foot, and, oncebuilt, will total some 27,000 squarefeet. The units are forecast for15 ÁKPMG12-15_Layout 1 30/11/2015 14:06 Page 2ArmstronghouseOffering a prime position in Grimsby, Armstrong House onArmstrong Street is ideally located. Close to the ports ofGrimsby and Immingham, motorway links and the town centre,off-street parking is also available for all staff and visitors,meaning it’s convenient too. Our spacious, welcoming officesare located on the ground floor and are both secure and CCTV-monitored, giving you the ultimate peace of mind.At Armstrong House, the flexible in/out terms of contractmean confidence when it comes to affordability and with a rangeof office sizes there are opportunities for all types of business. Ifyou require virtual office services, prices start from just £15 permonth. For more information, or to discuss your office requirements,give Scotts Property a call today on 01472 267000 and askabout Armstrong House.Offices to letPrime location in GrimsbySuperb Location -- Close to the ports of Grimsby &Immingham- Great motorwaylinks- Close to the town centreSecure off street parkingHigh speed internet availabilityEasy in/out termsA range of affordable office sizes33333Armstrong House,Armstrong Street,Grimsby DN31 2QETel: (01472) 310301Email:s.fisher@blmgroup.co.ukwww.shutterstock.com/terekhov igorwww.shutterstock.com/Yentafern12-15_Layout 1 30/11/2015 14:06 Page 3www.shutterstock.com/YentafernBusiness Link 15www.blmforum.netCOMMERCIAL PROPERTYcompletion early next year,and could very well prove tobe a drawer for businesseslooking to set up offices inLincoln. Sam Elkington - seniorpartner at commercialproperty agent HodgsonElkington - comments: “Thisscheme is the first medium-sized speculative industrialdevelopment to be started aroundLincoln for a number of years, which istestimony to the confidence shown inTeal Park and Lincoln as a whole.” If any business park across our regionis more symptomatic of the changes tomodern businesses, then Green Park,an eco-friendly business park situatedbetween North Cave and Newport, isvery well it. Living up to its namesake,the park has recently gained theaddition of a 78 metre wind turbine. Theturbine, which went online at the end ofOctober, was supplied by EmergyaWind Technologies UK Ltd, has acapacity of 500 kilowatts and is alreadyfeeding electricity directly into theNational Grid. Green businesses parks are becominga common phenomenon nationwide,Yorkshire already has several in thepipeline, and it demonstrates thatbusinesses are looking to moresustainable ventures. Being seen to besustainable is not only in keeping withcorporate responsibility, it also has thepotential to draw in more revenue. Andrew Horncastle, chairman of theHorncastle Group, is fully aware of theallure that Green Park has for localbusinesses. He says: “Green energyand sustainability are such a huge partof business and life nowadays that wemust build efficient and environmentalsolutions into our developments asstandard. The wind turbine is a big partof that.” The first phase of the development iscurrently available, with a variety of 450PHOTO: GILES ROCHOLL PHOTOGRAPHY LTDPHOTO: GILES ROCHOLL PHOTOGRAPHY LTDand 900 square foot eco-offices readyto let, as well as a 20,000 square footeco-industrial unit. As the needs of businesses continueto change, more organisations will turnto purpose built facilities to cater totheir requirements. It’s evidence acrossYorkshire and Lincolnshire that thetraditional office environment is rapidlybecoming a thing of the past. With thevariety of new builds challengingoutdated ideas of business, the office isup for redefinition. Green Park12-15_Layout 1 30/11/2015 14:06 Page 416Business Link www.blmforum.netFINANCE“As the first Budget of the newGovernment was only some fourmonths ago, we perhaps would havebeen naive to think that there would beany significant changes to taxationaffecting businesses or individuals. Thefirst Autumn Statement, given byGeorge Osborne as Chancellor of theConservative Government, focused onaspects of public sector spending andplans to achieve a budget surplus bythe end of its term of office. By 2019/20the budget surplus was targeted to be£10.1bn. In his speech, which was wellover an hour long, we were providedwith the government’s long termeconomic plan.There were only three specificannouncements in relation to taxation.Firstly, and perhaps the headlinegrabbing statement was the plan not tochange Tax Credits and the tapering ofreliefs. Secondly, was the introductionof higher rates of Stamp Duty Land Tax(SDLT) from 1st April 2016, anadditional 3% being levied onpurchases of residential properties,such as buy-to-let and second homes.Thirdly, were the changes to the timingof payments on account for CapitalGains Tax due on residential property,with the requirement from April 2019for such tax to be paid within 30 days ofcompletion of the disposal.To achieve his fiscal goals and toprovide for a strong economy, theChancellor is relying on generatingincreased tax revenue. With increasedtax receipts based on the improvedprofitability of businesses and a focuson targeting anti-avoidance andevasion, as well as addressing the issueof the diversion of profits by businessesowned or controlled by overseascompanies. This is along with proposalsfor making the UK a leader in digital taxadministration, with a view tosimplifying process, reducing errorsand making it easier to collect/pay taxthat is due.Taxation aside, the Chancellor seeksto achieve his goals whilst at the sametime, being committed to infrastructureinvestment, health, education and thesecurity of the nation through reducingWhitehall’s public sector spending andreducing spending on welfare. It would18 ÁThere was more to theAutumn Statement than theu-turn on tax credits...James Pinchbeck, Marketing Partner for Streets Chartered Accountants, givesus his analysis of the Autumn Statement.JamesPinchbeckPrivate company savesLincolnshire Police over £6mPolice forces in England and Wales could save £1bn a year if they followed the exampleof Lincolnshire Police in outsourcing backroom services.John Shaw, the Managing Director for G4S public services has today called for a morenuanced debate about funding for police stating that the challenge for police leaders afterthe comprehensive spending review is more complex than a simple choice between copsand cuts.The firm has been Lincolnshire Police’s strategic partner since 2012 and has deliveredsavings of more than £6m. At the same time, there have been improvements in service andthe force now answers 95 per cent of 999 calls within ten seconds compared with 88 per cent when G4S took over.Shaw states, “Police forces have undergone significant changes over the past five years to play their part in reducing public sector expenditure andthe central government deficit.”16-18_Layout 1 30/11/2015 14:08 Page 1You might not expect your accountant to be trendy, but you would expect them to be on trend.info@streetsweb.co.ukwww.streetsweb.co.ukConnect with us on LinkedInFollow us on Twitter @streetsaccWatch us on YouTubeDo you still need to complete a Self Assessment Tax Return? Are you sure you’re only going to pay what tax is due? If you don’t already complete a Return and you have rental or other income then you may need to. For further information and to download our guide please visit our website:www.streetsweb.co.ukWhat’s trending this month?www.blmforum.netBusiness Link 17PHOTO: CROWN COPYRIGHTSheffield councillors pitch into promote small businesses Sheffield Councillors are demonstratingtheir commitment to the city’s smallbusiness community by entering aChallenge, set for them by the Federationof Small Businesses (FSB). The Challenge is part of the nationalSmall Business Saturday campaign, andinvolves councillors visiting a local smallbusiness and taking a photograph ofthemselves with the company manager,whilst displaying the Small BusinessSaturday flyer. The Councillor adjudgedto have made the greatest contributionto the campaign will receive the “SmallBusiness Saturday Champion 2015”trophy from the challenge Chairman,Paul Blomfield MP on Small Business Saturday, which falls on 5thDecember. Paul Blomfield MP comments:“The UK economy is driven by smallbusinesses. They make up 99% of all businesses and are the engine forgrowth and job creation. The 40,000 small businesses in South Yorkshireare central to our local economy and are active in every part of society. Iam delighted to be involved in the celebration of “Small BusinessSaturday”, and along with the FSB, I am pleased to see Sheffield’scouncillors joining us in a celebration of the extraordinary breadthand vibrancy of the small business community.”16-18_Layout 1 30/11/2015 14:08 Page 2DELIVERYPARTNERStart Up LoansFlexible unsecured loans to £25,000Contact details: Craig Simpson c.simpson@chamberacornfund.com Tel: 01482 324976/07595 66709634-38 Beverley Road, Hull18Business Link www.blmforum.netFINANCEseem most areas will see sustained andin some cases increased funding in realterms. For potential homeowners and housebuilders came details of a five pointplan, which through the use of variousinstruments and funding, seeks tosupport the provision of more homesand specifically the building of some400,000 affordable homes by the end ofthe decade. In terms of more regional andlocalised support, it would seem,whether you are a part of the NorthernPowerhouse or the Midlands Engine,support has been pledged throughproposed devolution, the election ofmayors, the creation of new enterprisezones and investment in some majorinfrastructure projects.Finally with optimism around thestate of the economy and the state ofthe nation as we approach, or arealready in, retirement, the proposedincrease in the basic state pensionmust be welcome.As always the devil is in the detailand it will no doubt take time for theprofession and our counterparts todigest the announcements which arecontained in a 146 page TreasuryDocument ‘Spending Review andAutumn Statement 2015’. Thebalancing act seems though to bearound creating an environment wherebusinesses can thrive, our workforce iswell skilled, our public services meetthe needs and demands of users andare delivered within budget and that wepay our taxes in accordance with theprinciples and ethics of taxation. Wewait with baited breath theannouncements that will be made in theBudget 2016.”Streets Chartered Accountants havecompiled a comprehensive AutumnStatement guide, which is availablefrom their websitewww.streetsweb.co.uk Key Capital Partnersraises £55 million fundfor SMEsPrivate equity house Key Capital Partners (KCP), which has officesin London and Leeds, has first closed on a new £80 million fundwhich aims to invest in high growth SMEs through managementbuy-outs, equity release and development capital deals.KCP will be seeking to invest equity sums of between £3 millionand £15 million in profitable, dynamic businesses where there is theopportunity to double the profits of the business over a three to fiveyear period.The firm has secured £55 million of commitments in the firstclosing and is confident of reaching its £80 million hard cap over thecoming months.Since launching its first fund in 2007, KCP has invested a total of£65 million in 15 businesses nationally across a variety of sectorsfrom school catering and glass processing to nursing care andrecruitment.PHOTO: SHUTTERSTOCK.COM/D. PIMBOROUGH16-18_Layout 1 30/11/2015 14:08 Page 3www.blmforum.netBUSINESS SCENEBusiness Link 19PHOTOS: STUART WILDE PHOTOGRAPHY LTDDuncan & Toplis Directors’ Briefing 2015The seventh annual Directors’ Briefing, as hosted byDuncan & Toplis took place at the Belton Woods Hotel nearGrantham this month, inviting business leaders fromacross the East Midlands. With keynote speakers JohnCridland, former Director-general of the CBI, along withnotable others – the event was a valuable resource forDirectors in the region. 19_Layout 1 30/11/2015 13:54 Page 1Next >