‘Could do better’: FSB verdict on HMRC’s customer service performance

HMRC customer service levels are adding to the stress felt by SMEs trying to keep their tax affairs in order, according to  the Federation of Small Businesses. The claim comes after the National Audit Office revealed the taxman’s customer service standards have declined, which promoted FSB Policy Chair Tina McKenzie to say: “The finding by the NAO that nearly half of all calls to HMRC go unanswered says a lot. Tax compliance is a huge headache for small firms, who spend on average 52 hours a year trying to sort out how much they need to pay, at a collective cost to small firms of £25 billion. It’s an eyewatering sum.
“The long delays, troubles getting through, and struggle to speak to someone who can actually help rather than read from a script compound the stress for small business owners who have received letters from the tax authority saying there is a problem with their taxes. “We have previously criticised HMRC’s ‘guilty until proven innocent’ approach to its communications with small firms, which can leave business owners in a state of panic. Every minute they’re unable to get through to someone who can help them sort things out means more worry and more alarm, which is why investment in HMRC’s customer service resources is so vital. “Digital avenues for support certainly have their place, and many small business owners are perfectly happy to use them. But there are some times when speaking to a real person is the only way to get something sorted, especially for queries which are anything other than totally straightforward. “The UK tax code is 10 million words long, and it’s impossible for small firms to match the in-house tax and finance expertise of their larger rivals. As well as improving customer service levels, HMRC should focus on ensuring that the guidance it provides is clear and as simple as possible to digest. “We welcome the NAO’s report, with its emphasis on the need for HMRC to make ‘realistic plans’ and take a ‘more customer-focused approach’. Small firms come in all shapes and sizes, but they all need to know they can get tax queries sorted without delay – something that HMRC needs to ensure is the case for everyone.”

Firms urged to continue carbon reporting in the wake of Government’s regulatory rule change

East Midlands accountancy and business advice practice Duncan & Toplis is urging employers to continue carbon reporting after proposed regulatory changes come into effect.

In March, the UK government published suggested changes to company size limits that will impact 131,000 companies nationwide by changing auditing thresholds and other reporting requirements, including carbon reporting obligations.

These changes could see 5,000 large companies reclassified as medium-sized, 13,000 medium-sized companies reclassified as small and 113,000 small companies reclassified as micro-entities.

While the reforms aim to reduce the non-financial reporting obligations for businesses, Duncan & Toplis is warning that companies could be at substantial risk if they don’t maintain existing obligations around sustainability.

Stuart Brown, Director and Head of Technical and Compliance at Duncan & Toplis said: “At first glance, businesses may think that the government’s changes to company size are an easy win that would simplify auditing and annual reporting – but there’s more to it than initially meets the eye.

“The proposed reclassification would mean that thousands of currently ‘large’ companies can take advantage of eased requirements to cut their admin spend, but it also means that thousands of businesses will no longer be required to report their carbon emissions to the government – as this only applies to large companies. This could prove especially problematic for companies that are effectively downsized by the move, potentially extending as far as limiting their access to loans if they cease their carbon reporting.”

The move has been projected to save £150 million per year for UK companies and while, on the surface, this will reduce the regulatory burden on thousands of companies, there may well be unintended consequences. The company highlights that the potential fallout from the reduced regulatory need to report carbon emissions could mean that they no longer appear committed to environmental sustainability – something that lenders, customers, suppliers and employees are increasingly invested in.

A recent study by the Journal of Banking & Finance found that banks in 30 countries globally are more likely to offer lower loan rates to companies that show clear environment and sustainability concerns – increasing their rates to companies that fail to do so. There are also concerns about the impact this may have on recruitment and retention.

Sally-Anne Hurn, Sustainability Champion at Duncan & Toplis, explains: “With figures from DWF showing that almost two-thirds of businesses are already losing out on recruiting new staff and tender agreements due to poor environmental, social and governance performance, further loosening the current requirements could put businesses at risk of losing customers, suppliers and emerging talent – ultimately impacting on the profitability of the company.

“Environmental and social responsibility is an increasing concern for jobseekers and there has been a pronounced shift in focus towards seeking out sustainable, environmentally-friendly employment opportunities in recent years. Employers should prioritise investing in continued carbon reporting and being transparent about their emissions.

“My advice to businesses is to continue diligently monitoring your carbon emissions and the environmental footprint of doing business, even if the legal mandate to do so is removed when your company is reclassified as a medium entity.

“You may well find that failure to do so means that banks are less likely to lend you finance and you may struggle to win tenders against more socially responsible competitors. Importantly, larger suppliers may still require businesses to undertake calculations in order to trade with them. This will be as larger corporations will be considering their Scope 3 emissions – so it’s vital this isn’t overlooked.”

Nottingham City Council’s Chief Executive to leave for new role

Mel Barrett, the Chief Executive of Nottingham City Council, is leaving to take up a new role as Chief Executive of Metropolitan Thames Valley Housing, one of the largest housing associations in the country. Mel joined the Council in September 2020 at a time when it faced significant challenges. These included ensuring citizens were protected and supported during the Covid-19 pandemic, dealing with legacy issues which reduced the council’s financial resilience and modernising the council with the support and challenge of a Government-appointed Improvement and Assurance Board and most recently Commissioners. He said: “The job is not yet done and we know that the pace of improvement will increase, however progress made in a number of key areas including supporting vulnerable children, becoming a more open and transparent organisation and continuing to work with others to support the vibrancy and dynamism of our city and improve the life chances of our citizens despite the continuing financial challenges faced by local government. “Metropolitan Thames Valley Housing is one of the largest and most innovative housing associations in the country, operating in London, the South East, the East Midlands and the East of England. The organisations that now form MTVH were founded in the 1950s to provide safe and affordable homes for the Windrush Generation of Caribbean people who came to rebuild Britain after the war. “This is the generation of my parents who both have recently passed away, and this founding purpose of MTVH has provided strong personal motivation for me to join the organisation and to be part of shaping its future, being mindful that I will be standing on the shoulders of those that have gone before.” The Leader of Nottingham City Council, Councillor David Mellen, said: “I would like to thank Mel for all of his work and dedication since he joined the council in 2020. He became Chief Executive at a difficult time, in the middle of the Covid pandemic and when we faced significant challenges as a council. “He has used his knowledge and experience of local government to lead our journey of improvement and make important changes to the way we work. I am confident that he has created the right foundation for us to continue to build on in Nottingham. I wish him every success for the future.” Lead Commissioner Tony McArdle said: “Since arriving at the council a few weeks ago, the Commissioner team has had a very positive relationship with Mel, working together with him to plan the further improvements needed at the council. We all wish Mel well for the future as he continues his long and distinguished career in public service.” Discussions will take place between the Commissioners, Executive councillors and senior officers on what arrangements will be put in place in relation to the Chief Executive role.

Local authorities to be given power to offer empty shop leases at bargain basement prices

New powers are being given to local authorities to secure empty high street properties and auction off their leases to local businesses. Under the new High Street Rental Auctions scheme, by this summer local authorities will have been given the power to combat high street vacancy by allowing local leaders who know their area best to take control of empty properties blighting their high streets and rent them out to local businesses that want use them. The new powers will help councils level up their high streets and tackle wide-ranging issues stemming from prolonged high street emptiness exacerbated by the pandemic, such as low footfall which leads to struggling businesses, increased unemployment and anti-social behaviour. Where a high street shop has been empty for over a year, High Street Rental Auctions will allow local leaders to step in and auction off a rental lease for up to five years. Auctions will take place with no reserve price, giving local businesses and community groups the opportunity to occupy space on the high street at a competitive market rate. To help get High Street Rental Auctions up and running as soon as possible, the government is launching new ‘trailblazer’ programme so it can work with a number of communities who are keen to lead the way in quickly implementing the new powers. There will also be a £2 million support pot to help them and other local authorities to get started across the summer. The Minister for Levelling Up Jacob Young said: “We want to bring high streets back to life and these new levelling up powers will help do just that. “A lively high street brings an irreplaceable community spirit – one that is unique to its own area – along with new jobs and opportunities for local people.

“These new powers will enable local communities to take back control, backed by over £15 billion of levelling up funding which is transforming towns and left-behind communities across the UK.”

Leicester paper producer gets Government help to reduce energy use

Leicester-based Sofidel plans to replace its current natural gas steam boiler with one that can run on green hydrogen at its paper mill in the city, helping to transform their energy intensive manufacturing process. The change has been made possible thanks to a share in more than half a billion pounds in funding to help reduce their energy bills and carbon emissions across a range of businesses and public buildings. Down the road in Loughborough funds £2m is being given to Loughborough University to decarbonise its Olympic-size swimming pool by replacing old gas-fired boilers with more efficient, cleaner heat pumps. These and other energy efficient upgrades are being made possible with more than £557 million government investment. The new projects will help reduce emissions and cut bills, as part of the government’s plan to reach its world-leading net zero targets in a sustainable, pragmatic way. Heat pumps, solar panels, insulation and low-energy lighting will be rolled out to reduce the use of fossil fuels across the public sector and strengthen the UK’s energy independence, helping save taxpayers hundreds of millions of pounds. This follows significant progress already made towards reaching net zero – with the UK becoming the first major economy to halve emissions. Decarbonising the public sector is expected to save an estimated £650 million per year on average to 2037. Minister for Energy Efficiency and Green Finance Lord Callanan said: “From school corridors to the businesses that power up our economy, we want to make sure buildings of all shapes and sizes are supported to deliver net zero. “By allocating over £557 million today, we are standing steadfast behind our public sector and local businesses, providing the help they need to make the switch to cleaner, homegrown energy.

“This will not only help cut bills in the long term, but ensure we keep reducing our emissions – having already led the world by halving them since 1990.”

PepsiCo invests £8m in Lincolnshire factory

PepsiCo has announced an £8m investment in its Pipers Crisps manufacturing site in Brigg, Lincolnshire, to meet growing demand for the popular snacks. It coincides with the 20th anniversary of Pipers Crisps and marks five years since PepsiCo’s acquisition of the brand.

The funding will boost production capacity at the site by nearly 80%, through replacing existing crisp fryers with new energy efficient models and installing new packaging machines at the Lincolnshire factory, which has been the home of Pipers Crisps since 2004.

New, more efficient fryers replacing the existing fryers as part of the investment are helping to reduce the site’s greenhouse gas emissions by over 200 tonnes a year. This contributes to PepsiCo’s pep+ commitment to target an absolute reduction across its value chain by more than 40% by 2030, reaching net-zero emissions by 2040.

Originally available in small independent pubs, bars, cafes and farm shops, Pipers has expanded its distribution network to include national wholesalers such as Booker, Brakes and Bidfood, alongside hospitality operators Mitchell & Butlers, Stonegate and Youngs.

The brand’s export business is worth over £2m, shipping to countries including France, Italy and across Scandinavia. The recent investment will help unlock further export opportunities for the premium crisp brand including to the Middle East, China and Japan.

Alongside increasing production, the investment will go towards upgrading facilities for the factory’s 100 local employees, including improvements to workspaces and staff changing rooms.

PepsiCo has continued to invest in its UK manufacturing sites, with a total of £127m committed in investment over the last four years, including a £58m investment in its Leicester factory announced last year.

Mirjam Fogarty, head of operations, Pipers Crisps, said: “Pipers is a much-loved brand with a rich heritage, and we’re delighted to be making this investment at such an exciting stage in our journey.

“From small independent pubs, cafes and farm shops, to working with some of the UK’s biggest wholesalers and hospitality operators, the funding will help us bring our delicious crisps to more people, wherever they are, and expand our brand internationally.

“With Pipers’ 20th birthday fast approaching, I’m looking forward to the next phase of our growth.”

Derbyshire residential estate agent grows at Ednaston Park

Ashbourne-based residential estate agents, Bennet Samways have committed to another larger office at Ednaston Park Business Centre (EPBC), marking their fourth office upgrade. With a combined experience of 35 years, Stuart Bennet, former sales director at John German estate agents, and his business partner Nick Samways, former family business owner at Samways Cycles, both founded Bennet Samways back in May 2021. Since day one, they have called Ednaston Park Business Centre their ‘home’. Within their first year, they consecutively occupied two, two-desk offices, ‘Cubley’ and ‘Wyaston’. A year later, the team quickly expanded and in June 2023, they welcomed Katie Trow as sales executive and moved into their current office, ‘Kedleston’, a three-desk space. This month, Stuart, Nick and Katie have advanced into ‘Bradley’, a four-desk office. Commenting on Bennet Samways’ growth within Ednaston Park, Gina Connett, facilities manager at Ednaston Park Business Centre, said: “We are so delighted to have been able to facilitate the growth of Bennet Samways and witness them flourish into an award-winning estate agent. “The team are an asset to our business centre with their boundless enthusiasm, respect and contributions to the wider community here. “Bennet Samways are the perfect example of how we nurture and build professional relationships with our tenants, working together to be one step ahead, creating a plan to suit growing business needs, whether this be a second or larger office space.” Stuart Bennet, director at Bennet Samways, said: “Setting up our business here was an exhilarating decision, one that swiftly revealed the incredible potential of our chosen location. We soon came to appreciate the sheer brilliance of this workplace environment. “The facilities provided here are nothing short of exceptional, leaving a lasting impression on all our clients and suppliers who relish every visit. At the heart of it all is Gina, the indispensable force who ensures the seamless operation of the centre. Her unwavering dedication and knack for swiftly resolving any issues that arise make her an invaluable asset to us all.” Nick Samways, director at Bennet Samways, added: “One of the many perks of this location is the immediate access to lush grounds, inviting us to step out on invigorating lunchtime walks, spanning a revitalising mile. “These moments not only rejuvenate our spirits but also contribute to our overall well-being, blending productivity with wellness seamlessly. The meticulously maintained grounds stand out providing a serene backdrop for our daily endeavours. “Moreover, the provision of ample, free parking adds an extra layer of convenience, not just for us but for all who visit. This thoughtful gesture reflects the commitment of this place to prioritise the comfort and ease of its occupants and guests alike. “In essence, operating our business from here is not just logical; it’s a clear-cut decision, a testament to the unmatched advantages this location offers.” Set in 18-acres of landscaped gardens, Ednaston Park was built in the 19th century. Until 2016 it housed the St Mary’s Nursing Home; it was then bought by Clowes Developments in September 2017. Since then, the developer has invested heavily in the property to turn it into modern office accommodation. Ednaston Park now comprises of flexible commercial space in the form of 32 office suites ranging in size from 54 sq ft to 553 sq ft, available as single or multi-office lets. It also features meeting rooms, a break-out area and landscaped gardens. In 2022, Clowes demolished the old nunnery living quarters at the back of the main building to create a further three units known as Ednaston Mews, now fully occupied. Recently completed at the start of 2024, adjacent to the business centre is the newly refurbished Ednaston Barns.

Summer boost for East Midlands as start-ups rocket and UK economy exits recession, but local businesses should remain cautious says R3 Midlands

A sharp hike in the number of start-up businesses in the East Midlands – the highest percentage rise in the UK regions – as well as an end to the country’s economic recession, should give the local economy a much-needed boost heading into the summer months, but business owners should remain cautious going forward.

This is according to the Midlands branch of national insolvency and restructuring trade body R3 and is based on a monthly analysis of regional start-up data from business intelligence provider Creditsafe and latest research from the Office for National Statistics, which shows a 0.6% expansion in the UK’s gross domestic product in the three months to March.

R3’s figures indicate there were 3,599 businesses set up in the East Midlands in April, which is a substantial rise of 41.69% compared to the previous month and is the highest regional percentage increase in the UK. The April figure is also 54.13% higher than the 2,335 local businesses set up in the region twelve months previously.

R3 Midlands Chair Stephen Rome, a partner at local law firm Penningtons Manches Cooper, said: “This research does reveal some positive news for the East Midlands, with an indication of growing business confidence among entrepreneurs.

“We should remain cautious, however, in what we glean from these figures as, despite an exit from recession, the business economy remains hugely challenging.

“The negative impacts of inflation, higher wage and utility bills, as well as the rising costs of funding, have all made their mark on company balance sheets.

“R3’s advice to any directors worried about the viability of their company, start-up or otherwise, is to seek professional help and to do it as soon as possible. Many R3 Midlands members offer a free initial consultation to those who wish to explore their options.”

Waste management company fined after worker burned

The Health and Safety Executive (HSE) has prosecuted a waste management company after a worker suffered burns to his face and body after the crowbar he was using came into contact with a live electrical conductor. In the incident on 14 July 2021, the man was moving heavy duty electrical cables with a metal crowbar on a mobile elevating working platform when the bar came into contact with the live conductor, causing an electrical explosion at Copper Hill industrial estate, Ermine Street, Barkston Heath, Lincolnshire. As well as suffering serious burns, the explosion caused the man to fall from the platform and sustain a broken left arm, fractured ribs and dislocated kneecap. The worker had been contracted by New Earth Solutions (West) Limited, trading as Mid UK Recycling, to work at the firm’s recycling plant at Copper Hill industrial estate. An investigation by HSE into the incident found this task was not part of the normal workload for the injured worker and that he had not received any training with regards to undertaking electrical work.  The task had not been properly planned nor risk assessed and the electrical cables were not isolated before work began. In addition, the level of supervision provided was inadequate and safety devices on the electrical supply had been set inappropriately, prioritising continuity of supply over safety of the electrical circuit. New Earth Solutions (West) Limited, of Station Road, Caythorpe, Grantham, Lincolnshire, pleaded guilty to breaching Section 3(1) of the Health and Safety at Work etc. Act 1974. The company was fined £200,000 and ordered to pay £12,466.60 in costs at Lincoln Magistrates’ Court on 10 May 2024. HSE inspector Tim Nicholson said: “This incident could so easily have been avoided by properly planning the task, ensuring that all workers involved were suitably competent and making sure that electrical conductors were isolated before the work began. “Companies should be aware that HSE will not hesitate to take appropriate enforcement action against those that fall below the required standards.” This HSE prosecution was brought by HSE enforcement lawyer Jayne Wilson and supported by HSE paralegal officer Ellen Garbutt.

New team joins 3 Bunkers fundraiser

The Nottingham office of wealth managers, RBC Brewin Dolphin has signed up to be the sixth team to take part in the annual 3 Bunkers challenge which aims to raise £100,000 for local charity Big C Little C.

‘The 3 Bunkers Challenge’ is styled like the infamous three peaks mountain climbs, but involves 24 golfers playing 27 holes within 10 hours at Morley Hayes in Derbyshire, Charnwood Forest in Leicestershire and The Nottinghamshire, covering just over 70 miles.

RBC Brewin Dolphin has a history dating back to 1762 and has 30 offices based across the UK, Ireland and Channel Islands.

The team from RBC Brewin Dolphin will be led by Robin Mellows, Head of Office in the East Midlands.

Commenting Ian Cooper, Divisional Director, Investment Management from RBC Brewin Dolphin said: “Our brand has been associated with many of Nottingham’s leading business awards and charity fundraisers and we are delighted to be taking part in this challenge to help research cures for cancer and help local children escape abuse and neglect.”

Established in 2020, the 3 Bunkers Challenge is organised by in Elliot & Bev Cook from Simple Marketing Consultancy and so far £40,000 of the £100,000 target has been raised.

This year, the event takes place on Friday 24 May 2024. The other five teams taking part are from Actons Solicitors, Fiscal Engineers, MAF Finance Group, Shakespeare Martineau Solicitors and Simple Marketing Consultancy.

Big C Little C was founded in 2019 by business entrepreneurs, Andrew Springhall and Colin Shaw who joined forces to create a charity that would encourage East Midlands businesses to organise events to raise money for Cancer Research, the NSPCC and other children related charities.

The organisers welcome support via online donations. The fundraising link is: https://givestar.io/ev/the-3-bunkers-challenge-2024