90% of some of the UK’s largest organisations are struggling with a skills shortage and are unable to find talent with the appropriate skills to remain competitive, new research from HR, payroll and finance experts MHR International reveals. While the larger organisations are struggling more severely, the average UK business is suffering the same fate – four in five (79%) of businesses surveyed say that it is their biggest challenge. MHR surveyed over 500 senior managers in large organisations across the UK to find out their views on business resilience and the future of their organisations. The research revealed that as well as the size of the business having an impact on access to skills, the age of the business did too – 86% of businesses that have been operating for over 20 years said it was their biggest challenge, compared to just over two thirds (68%) of businesses who are less than five years old. As well as getting the right skills on board to remain competitive, businesses in the UK are also unsurprisingly still struggling with having sufficient people resources overall. Over three quarters (77%) of managers surveyed by MHR said that having enough talent was a challenge – this rose to 88% for businesses operating for over 20 years. Again, the youngest businesses surveyed were experiencing this phenomenon less – while still a majority, less than two thirds (63%) of managers from these businesses said having sufficient talent resource was a problem. Given the UK’s entrepreneurial economy, which saw over 200,000 new businesses incorporated in the first quarter of 2022 alone, this might point to employees rethinking their careers and joining smaller workforces at start-ups or younger organisations. Mark Jenkins, CFO at MHR, said: “It’s no real surprise that in today’s challenging landscape, businesses are struggling to access to the skills they need to keep an edge on the competition. But investing in the right skills, tools and talent is a core part of a business’s ability to withstand further market disruptions, so it’s a hurdle that must be overcome.” In response to this skills gap, half (50%) of UK businesses have focused on employee engagement in the last five years to increase their resilience to market shocks. And while only 4% of the managers surveyed said it would be a challenge to financially cover meaningful operational changes within their organisation, 1 in 4 (25%) are missing key resources such as capital, people and assets to stay ahead of the competition. A slightly higher number (28%) stated that a lack of skills was holding them back from making investments in the tools they need to increase business resilience in the first place. Jenkins added: “84% of the respondents we surveyed said that resilience was a much higher priority now than it was five years ago. To build true business resilience, organisations must not just focus on employee engagement and training, but also arm themselves with as much data as possible around recruitment, retention and skills required, to establish where the gaps are, and make any operational changes needed to fill them.”

120-year-old family firm, Stokes Tea & Coffee are well known for their top-notch coffee – now they’re also becoming quite the pioneers in eco-friendly innovations. In its latest developments, the company is installing a cutting-edge heating system that will not only cut carbon emissions by more than a third but enable the company to reduce energy usage and harness solar power too. The new system is being installed at Stokes’ HQ (where its roastery is also based), at the Lawn Building, a 19th Centuryformer asylum on Union Road in Lincoln. The company moved operations here in 2017 following an extensive £2million refurbishment and restoration project which took two years to complete. Andy Jackson, project manager at Stokes Tea & Coffee, explained: “We like to make things last at Stokes, but, after 43 years of service from our heating boilers, it was time for an overhaul. Historical buildings are notoriously difficult to heat and we were determined to find a system that would rise to the challenges on both efficiency and emissions. “We’re pleased to see the installation of our new Viessmann boilers which are so efficient we only need two instead of the previous three and each boiler is 30% more efficient which means even less energy usage and emissions. It’s clever too as it has weather compensation equipment installed which monitors changing external temperatures and automatically adjusts output. This information can be collected, and adjustments made remotely to improve efficiency and we won’t even know it’s been done. “The new system can be set up to heat specific zones or rooms rather than the whole building, and it’s also capable of collecting and using solar energy to heat water – so the scope for further savings on emissions and wastage is huge! “We are striving to make our Grade II* listed Lawn Building into an eco-showcase location to help share knowledge and experience in waste and emission reduction with anyone who has the challenges of owning or occupying historical buildings like ours.” Stokes Tea & Coffee may have a long history, but this certainly isn’t holding them back when it comes to leading on cutting edge innovation, and the team remains unshakeable in its focus on achieving ambitious sustainability targets. Other sustainable actions taken by the firm include:

• The Zero Waste scheme which is designed to cut down on packaging waste by delivering coffee and tea to Stokes’ wholesale customers in reusable buckets that keep products perfectly fresh and in peak condition, saving the use of thousands of boxes and packets
• Reducing road miles through smart logistics, remote problem-solving and a help desk for customers, and sourcing local produce for Stokes’ cafés
• Investing in recyclable packaging and re-purposing/upcycling materials
• Supporting the free top-up refill water scheme
• Planting trees in the UK and overseas
• Reducing emissions with one of the most eco-friendly coffee roasters to cut the use of natural gas and reduce CO2 emissions
• Using smart lighting in Stokes’ buildings
• Introducing a cycle-to-work scheme

There’s a lot going on and it’s clear that talk about saving the planet is much more than hot air at Stokes Tea & Coffee!

NEBOSH – one of the world’s leading providers of health and safety qualifications – has launched a new solution for businesses that want to improve their in-company training. The NEBOSH Endorsed service will – as its name suggests – endorse great health and safety training. When companies invest in training, they want to see a return. Through a collaborative approach, NEBOSH will help organisations to elevate their in-company offering and deliver measurable behavioural change that contributes to healthier and safer workplaces. A range of solutions are available via NEBOSH Endorsed. They are all tailored to the needs of individual organisations and emphasise learning that delivers tangible impact:

• Assessment and endorsement of existing in-company learning,
• Bespoke consultation and development of in-company training.

Every person that completes a NEBOSH Endorsed course will be recognised with a NEBOSH Endorsed certificate to mark their learning. Ian Cooke, NEBOSH business development manager – Corporates and Consumers, says: “So much in-company training is well-meaning but has minimal impact on behaviour back in the workplace. NEBOSH are experts in learning. We want to share our 40 years’ worth of educational expertise and help create better health and safety training, whatever its duration or level. “NEBOSH Endorsed is focused on two things: collaboration and impact. Everything we do will be tailored to an organisation’s needs and we’ll use a range of tools to make sure it is having a demonstrable impact on individual and organisational performance. Ultimately, we want to make the world a safer place to work and by partnering with organisations through NEBOSH Endorsed, we can make that happen!”

Maritime Transport (Maritime) has agreed terms with SEGRO to become the rail operator at SEGRO Logistics Park Northampton. The deal, which includes the long-term lease of a new, 17-acre intermodal rail terminal and wider management role for Maritime, covering the rail infrastructure on the Logistics Park, will provide occupiers at Northampton and in the East Midlands with new, low carbon freight connections from UK container ports and other inland rail terminals with capacity for up to 16 daily trains, when fully operational. The 775m long, open access, strategic rail freight interchange, capable of receiving the largest container freight trains with storage capacity for almost 2,500 TEU (20 ft equivalent containers) and parking for over 125 trucks, will be delivered by SEGRO as part of the infrastructure for SEGRO Logistics Park Northampton, its state-of-the-art logistics hub located four miles from Northampton and adjacent to Junction 15 of the M1. The development, which is currently in the early stages of construction, will deliver 5 million sq ft of modern warehouse space, on completion. Supporting the rail terminal operation, Maritime will be making additional investments at the site, including the construction of a high specification, 4-storey office with welfare facilities, new container handling equipment and provisions for electric truck and car charging infrastructure. In a separate agreement, SEGRO and Maritime have agreed terms to extend the rail facility at SEGRO Logistics Park East Midlands Gateway, doubling the capacity of the terminal. It is the first agreement signed since the designation of the East Midlands Freeport, UK’s only inland freeport. The original rail terminal at the Logistics Park opened in 2020 and has seen substantial growth, with an average of 10,000 containers moving through the terminal every month. The second phase, which will be delivered by Q3 2023, will provide two additional rail sidings, a further 12 acres for container storage, parking for 115 HGVs and a new 20,000 sq ft office and welfare building. The terminal currently operates six trains a day to locations including Felixstowe, Liverpool, London Gateway and Southampton. All occupiers at SEGRO Logistics Park East Midlands Gateway, including a diverse mix of businesses such as Kuehne + Nagel, Arvato, Games Workshop and DHL, currently make use of the rail terminal at the site. Andrew Pilsworth, Managing Director, National Logistics at SEGRO, said: “Rail freight is proven to be an efficient, reliable and more sustainable method for transporting goods across the UK and has a key role to play as the UK transitions to lower carbon growth. “Following the successful growth and operation of the first rail freight terminal at SEGRO Logistics Park East Midlands Gateway, it’s great to have Maritime on board to deliver the next phase at the site as well as the purpose-built strategic rail interchange at SEGRO Logistics Park Northampton. “Both locations will serve as critical links in UK supply chains and connect to the country’s rail network and ports, creating greater efficiency and resilience as well as supporting local economic growth.” John Williams, executive chairman at Maritime, said: “These developments, at SEGRO Logistics Park Northampton and SEGRO Logistics Park East Midlands Gateway, are important, long-term commitments for Maritime to reduce our environmental footprint by developing a network of low carbon, strategic freight connections across the country to promote modal shift from road to rail for container transport and for domestic distribution, with local distribution by electric-powered trucks. “Building and operating modern, inland rail freight interchanges, supported by the largest dedicated fleet of vehicles in the country, enables us to deliver terminal to terminal rail solutions and highly efficient rail to door and door to rail services for our customers who are looking for long term, supply chain protection and sustainable transport solutions.”

Jennie Brown, tax partner at Streets Chartered Accountants, offers ‘marginal gains tax tips’. I have always been fascinated with concept of marginal gains and how through constantly making small incremental improvements, high performance levels can be reached. Reading some of the stories of how coaches have applied the strategy with athletes training for the Olympics, and achieved incredible results, is really captivating. How might this have anything to do with tax I hear you say? Well, quite often when I am helping clients protect their wealth and ensuring they have a financial plan aligned with their goals and objectives, it is not one singular thing that is implemented to improve their tax position, but often a number of things, on repeat, over a number of years. I am a firm believer when helping my clients, that before jumping into the more complex areas of tax planning, we take stock and look at the basics first, to have a strong foundation to move on from as appropriate. There are a plethora of annual reliefs and exemptions that can be considered year on year, and by focusing on these first and ensuring they are not overlooked, over time, these can have a significant impact on improving your tax position; marginal gains. So, what are these tax marginal gains? I highlight below those keys areas that I would recommend you are aware of and take stock of year on year, and of course, with everyone’s situation being different, it always makes sense to take advice.

• Making use of your tax-free personal allowance, transferring any unused element if possible
• Utilising the basic rate of tax and consider the equalisation of income between spouses/civil partners, to prevent one party being a higher rate tax payer and the other having unused basic rate band
• Bear in mind the key thresholds; income over £50,000 can see a tapering of the child benefit and income over £100,000 can see a tapering of the personal allowance, giving rise to an effective rate of tax of 60%
• If you have made a loan to your business, consider the payment of interest. Not only will this provide a corporation tax deduction for the company, but it could allow you to use the starting rate for savings and personal savings allowance
• Pension contributions are always a favorite for the tax advisor, especially for those who have exceeded the above-mentioned thresholds. By making pension contributions these can reduce the amount of taxable income and enable investments to be managed in a tax-free wrapper, free from capital gains and inheritance tax, with more flexibility in recent years over the access on retirement
• Charitable giving can also qualify for tax relief which can in turn increase the charities donation
• ISA’s can be used to save cash or invest stocks; each tax payer has an annual allowance of £20,000 (for 2021/22). No income tax is due on the interest or dividends and any profit made on investments is free of capital gains tax. Family members can also put up to £9,000 in a junior ISA on behalf of a child for 2021/22. In addition, the lifetime ISA can be helpful for fire time homebuyers between the ages of 18-40, and up to £4,000 of savings can be topped up with a government bonus of up to £1,000
• There are a number of investments which can also provide tax relief and these can provide instant tax relief against income tax for a percentage of the investment made, together with other tax advantages. Naturally, advice should always be sought with such investments
• The capital gains annual exemption, currently £12,300 and frozen at this level until April 2026 is often overlooked. It is an exemption that you use or lose, so consideration should be given as to whether this can be used year on year. Consider the timing of disposals so they are staggered where possible to utilise the exemption. Together with the utilisation of income, the same applies to this exemption. Transfers between spouses/civil partners can be transferred free of capital gains tax, and therefore considering as a couple where relevant the combined use of allowances such as this is not to be overlooked. Naturally, there is a lot of more involved planning that can be considered with capital gains, deferment of gains and losses amongst a whole host of other rules and reliefs
• There are a number of annual exemptions to consider for Inheritance Tax, also everyone has a £3,000 gifts exemption and if not used, this can be carried forward for one year only. There are also small gift exemptions and exemptions for gifts on marriage together with an exemption which is often overlooked known as regular gifts out of income. If you are not aware of these exemptions and want to make gifts, then it would be beneficial to take advice.

In addition, don’t forget, the tax rate applicable to dividends went up by 1.25% from 6 April 2022. As mentioned, the above are the ‘marginal gains tax tips’ across Private Client planning and from here greater planning can be considered.   For more information on the basics and more involved planning, please get in touch with Jennie Brown jbrown@streetsweb.co.uk