The Autumn Statement, perhaps it should have come with a health warning? By James Pinchbeck, partner, Streets Chartered Accountants
The Autumn Statement was the third fiscal statement from the Government in as many months, set against a background of rising inflation and an economic recession.
Our latest Chancellor of the Exchequer, Jeremy Hunt, with an expectation to last longer than his predecessor, sought to regain the confidence of the financial markets, gain the economic credibility of not just his party but that of the UK government across the world stage, as well as to create a stability for individuals and businesses. As he himself indicated prior to delivering his Budget, it was going to be no magic trick including rabbits or hats. Even the best magician was unlikely to conjure up a trick to impress or please a growing discontented and disillusioned audience.
In an attempt to reverse the damage and impact of the bungled mini Budget delivered by Kwasi Kwarteng under the premiership of Liz Truss, it would seem the majority of his announcements set out to reverse both their ‘ideology’ and as well as the changes to tax reliefs and financial interventions introduced.
For many, such steps would have perhaps seemed obvious, not least for the negative financial impact in one afternoon it achieved in terms of increasing both the governments level of borrowing along with the cost to servicing the national debt. That is aside of the impact it had on the cost of mortgages and the cost of living for individuals.
Only a few weeks ago we heard of plans for stimulating economic growth, with the rhetoric of ‘go big or go home’. With the UK economy now officially being in recession, Jeremy Hunt made little or no reference to growth. In fact it might be fair to say he did little to stimulate or encourage business growth, which perhaps is a very regrettable oversight. At best we can hope his budget at least provided the certainty businesses sought over the economic conditions in which they operate, whether we like them or not.
Perhaps holding off potential public spending cuts until after the next general election may help to lessen the impact of a recession.
Mr Hunt’s Budget not only saw the re-instatement of the proposed increase to corporation tax from 19% to 25% next April, but also the proposed introduction of Vehicle Excise Duty for electric vehicles from 2025, changes to R&D Tax credits, Stamp Duty Land Tax, Capital Gains Tax and Dividend Allowances – all are invariably less favorable for those to whom they apply.
The Chancellor also announced that the Income Tax additional rate threshold will be reduced from £150,000 to £125,140 with effect from 6 April 2023. This move will see an estimated 250,000 further taxpayers pay the additional rate of Income Tax of 45% from next April.
Then we come to ‘stealth taxes’ – a tax levied in a way that is largely unnoticed or might not be recognised as a traditional tax.
The Autumn Statement included a number of these by way of freezing the thresholds for the Personal Allowance, National Insurance Primary Threshold, Inheritance Tax and Residence Nil Rate Band.
Whilst September’s mini Budget perhaps created the feeling of a ‘sugar rush’, in terms of its tax giveaways, the Autumn Statement may well see many seeking more significant cures than a sugar rush as they grapple with an economic downturn and increasing costs of living from both a business and personal perspective.
Perhaps the Chancellor, a past Secretary of State for Health, should have made reference to the fact that his Autumn Statement may be going to hurt.
If you missed Streets Chartered Accountants’ post Budget webinar on Friday 18th November, you can access the recording here: https://my.demio.com/recording/oJuVaOve.
See, partner at Streets Whittles, Dan Insley’s thoughts on the Budget here in ‘The Autumn Statement – What it means to you‘.
Download the Streets Guide to the Autumn Statement 2022 here.
PDS snaps up 50,000 sq ft warehouse facility
Wellingborough-based print, design, and sourcing partner, PDS (Print Data Solutions Ltd), has acquired a 50,000 sq ft warehouse facility close to its HQ at Park Farm Industrial Estate.
PDS acquired the site in response to increased demand for storage capacity and to enable the business to scale its client stock and fulfilment operations with greater agility and flexibility in accordance with customer requirements.
The new warehouse can accommodate 5,000 pallets and provides access to over 1,500 pick faces.
Nick Shelton, Managing Director of PDS, said: “We are delighted to announce the launch of our new warehouse facility and trust that this acquisition will make doing business with PDS even easier as we can now offer more flexible solutions and provide access to space that will help our clients to improve their efficiency and achieve greater speed to market.
“Engaging with PDS as a warehouse partner helps clients to reduce their own capital investment and cut costs by sharing storage resources. The new facility also delivers an improved working environment for our fulfilment and storage teams giving a boost to their wellbeing because they have the space to achieve our business aims more easily.
“The warehouse, located on Sinclair Drive, also includes a purpose-built space for our fulfilment team enabling it to achieve more streamlined workflows. In addition, we can accommodate higher volumes of non-standard stock.
“At PDS, we take our commitment to the environment seriously and have pledged to reduce our carbon emissions by five per cent each year to maintain our Planet Mark certification. We are able to reduce our energy consumption within the warehouse by installing motion sensor lighting and reducing the overall number of vehicle movements.
“Since we completed the purchase of the new warehouse, the PDS logistics team has been working to transform the space and move in our existing stock as well as new equipment. The logistics function is fully integrated with our unique technology, the innovative PDS+ online stock management system offering greater accuracy and transparency including through real time reporting.
“As well as delivering greater capacity and flexibility for our clients, we have successfully future-proofed our business for the long-term enabling PDS to work towards the achievement of its ambitious growth targets.”
Plans submitted for 136-hectare sustainable urban extension transforming Skegness
The future transformation of Skegness has moved a crucial step closer as plans are submitted to deliver a 136-hectare sustainable urban extension creating hundreds of homes, much-needed jobs for the local community – and an exciting new future for the town’s generations to come.
The planned Skegness Gateway development to the west of the town will provide more than 20 hectares of combined retail, business and industrial space. It also will provide 1,000 new homes – including specialist housing, hundreds of jobs, much-needed open space and recreational amenities and a college and learning campus with space for business startups.
East Lindsey District Council will soon consult on a draft Local Development Order (LDO) allowing the opportunity for the public and other stakeholders to comment on the proposals.
The Skegness Gateway, on land principally owned by local family business Croftmarsh, with additional areas owned by the Scarbrough family, is set to breathe new life into an area of the Lincolnshire coast that drastically needs change in order to secure its future, boosting the local economy and providing the education and jobs for local people that will encourage them to stay in the area.
Croftmarsh says that the project is vital for the future-proofing of Skegness, helping it to take its rightful place in the East Midlands as a place of opportunity and ambition. The scheme will also boost social value for local people – both existing and new residents.
Sue Bowser, of Croftmarsh, said: “We are pleased to support the council in its vision to bring these ambitious plans to reality. This LDO submission is a really significant step. Our family has lived and worked in Skegness for many generations, so it’s a great source of pride that we can support a development that will help secure the town’s future by creating thousands of jobs and homes for both existing local residents and attract a new generation of people to the area.
“We are working closely with East Lindsey District Council and other partners to bring forward a scheme that will work alongside the regeneration being enabled by the Towns Fund.”
Once complete, the sustainable urban extension will help establish the town as a hub for investment, opportunity and ambition, as well as creating a new sustainable community that blends high-quality new homes with plentiful green space.
Sue added: “We know that Skegness is a town that needs economic transformation. The mechanism for that is through urban regeneration and expansion of skills, training and education – all secured by investment and infrastructure and digital connectivity.
“Ours is a town in real need. There isn’t enough money in the town to pay for this all year round and the secret to this is to have more people living here. We need to create jobs. We need to build infrastructure and provide the significant benefits that government is seeking in places such as Skegness.
“We want to enable the delivery of hundreds of new homes not just for the people who live in the local area – but for those people we want to attract to come and live and work in Skegness. This scheme will transform the area, putting it on the map and making the town famous not just for its beaches, but for its enterprise.”
The aspirations for the Skegness Gateway have been showcased to the local public and stakeholders through engagement events and were well received as a catalyst for economic growth and wider regeneration.
Matt Warman, MP for Boston and Skegness, said: “This local sustainable development includes a state of the art learning campus funded through the Skegness Town Deal, providing new training opportunities for the coast. Importantly, training including digital skills, motor vehicle, construction and engineering, will allow people to gain the skills and knowledge they need to get the jobs they want.
“Removing barriers to learning is a key focus for the Towns Fund and I’m delighted that this funding from Government will be helping to deliver these local opportunities.”
The Sanderson family – which owns the majority of the land set for development – has lived and worked in the Skegness area for seven generations and has long been passionate about securing the town’s future by providing jobs, skills and opportunities.
Neil Sanderson, also of Croftmarsh and Sue’s brother, said: “Skegness Gateway really is close to our hearts and homes, and making sure it becomes the reality that puts our town firmly on the map is our key aim. This is a town that we have grown up in and really understand what a difference the scheme and its benefits will make to local people.
“The LDO submission marks a key point in the journey to making these plans a reality for the whole of Skegness and the wider area to benefit from. We look forward to continuing our support to East Lindsey District Council throughout the process – and to making its vision a reality.”
Reserved Matters approval for 75 new homes in Calow
Woodall Homes has gained Reserved Matters approval for a residential development of 75 dwellings in Calow.
Further to Outline planning permission having been granted in December 2021, the brand-new development located on Top Road has now received Reserved Matters approval.
The new site will feature a mix of one, two, three and four-bedroom properties, including bungalows. The development will be accessed from Oaks Farm Lane, which is to be upgraded and will include a 2m wide footpath.
This development includes comprehensive landscaping proposals, providing for broad undeveloped areas of green infrastructure, wildlife-friendly habitats, native planting and additional hedgerows, plus the retention of existing woodland, which is to be protected. The public right of way through the development will also be maintained, providing recreational access to the countryside for the community.
Darren Abbott, planning director at Woodall Homes, said: “We can’t wait to get started on the new development, with work expected to begin in early 2023.
“There is already a fantastic community growing within Calow, with our nearby Churchfields progressing well. We love working within the area and I know the entire team are looking forward to the beginning of this next project.”
Woodall Homes currently have five developments under construction across Derbyshire and Nottinghamshire.
Bioscience space proposed for The Island Quarter
Approximately 190,000 square feet of bioscience space is being proposed for Nottingham’s Island Quarter development.
Developer, Conygar has revealed that it is currently finalising a detailed planning application, and is progressing discussions with a potential funding partner, for the space.
It expects to submit the application in the coming weeks.
The building will include both laboratory and office space, as well as conference facilities and car parking and be located adjacent to an existing bioscience hub.
Conygar added: “We continue to progress the detailed designs for subsequent phases and are in advanced discussions with potential investors in connection with further commercial and residential developments and would hope to make announcements in that respect over the coming months.”
Record revenues expected at Van Elle following strong first half
Strong trading momentum has been reported through the first half of the year at Van Elle, the ground engineering contractor, according to a trading update for the six months ended 31 October 2022.
The company says that all divisions have operated at high activity levels, with significantly increased revenues delivered in Housing and General Piling. As a result, the group expects to report record revenues for the period of approximately £81m, representing an increase of 35% on the prior year comparative of £60.1m.
Profit before tax is expected to exceed £3m for the period, up from £1.9m.
Van Elle meanwhile has indicated that although there has been some easing in supply chain disruption during the period, inflation, and in particular wage, fuel and materials costs have continued to impact the group.
Looking ahead, the firm said: “Whilst recognising the current economic uncertainty in the UK, strong activity levels are expected to be sustained through the second half of the year, despite the winter months which traditionally deliver lower activity levels due to weather disruptions.
“The Board is pleased with the progress made in the first half of the year and anticipates trading for the full year to be slightly ahead of market expectations.”
“Robust” trading and new CEO for Forterra
Forterra has revealed that Neil Ash will become Chief Executive Officer designate on 3 April 2023, following the announcement that Stephen Harrison will be stepping down as CEO during the first half of 2023.
Neil has almost three decades’ experience in the building materials sector and an impressive track record of improving performance and delivering growth. Currently at Etex, the Belgian lightweight building materials manufacturer, he leads the Building Performance division which is a €2 billion revenue business. During his time at Etex Neil oversaw major capex projects, significant acquisitions, and developed its sales approach which delivered strong top line growth.
His experience includes 15 years at Lafarge, where he undertook many roles, including the role of Vice President International Business Development and Sales and Commercial Director UK & Ireland of Lafarge Plasterboard.
Justin Atkinson, chairman, said: “We are very pleased to appoint Neil as the next CEO. His business leadership and extensive building materials sector knowledge will be invaluable to Forterra in the next stages of our development and the Board looks forward to working with him.
“The Board and I are grateful to Stephen Harrison for the significant contribution he has made to the business during his tenure as CEO. We wish him all the best for the future after he leaves Forterra in the second quarter of 2023.”
The news comes as Forterra provides an update for the ten-month period ended 31 October 2022, in which trading “has remained robust” with YTD sales volumes in line with last year. The firm says this reflects ongoing production capacity constraints and record low inventory levels. Group revenue in the period was 23% ahead of the prior year, driven by selling price increases. Full year results are expected to be in line with management’s expectations.Stephen Harrison, CEO, said: “Trading remains robust although we are watchful of the impact of the recent instability in financial markets and the reported negative impact this is currently having on the housing market.
“The group enters this uncertain time in a position of strength having a strong balance sheet with low levels of debt and high levels of cash generation. Inventories remain at record low levels and despite the current uncertainties we remain well-placed to mitigate the effects of a softening of demand by substituting imported bricks with domestically manufactured product.”
Eden PR adds new Account Manager to growing team
Eden Public Relations is pleased to welcome Conor Davies as its newest Account Manager, following a roll of new client wins in Q3 and Q4.
Leading Midlands-based public relations and marketing communications agency Eden PR has strengthened its account management team with the appointment of Conor Davies.
Joining the team with a variety of industry experience, Conor brings a range of valuable skills to the Eden team, including strong journalistic and web copywriting, event management and client relations as well as social media content strategy. He will be a core part of the agency’s growing account management team, helping to oversee work for a variety of Eden’s clients, as well as management of the junior members of the team.
Conor brings six years of agency and in-house communications experience to the team. He has worked across a range of B2B and B2C sectors, including charity, sport, IT and the healthcare sector among others. Within these roles, he’s helped to implement press campaigns for events across the UK, Ireland and the USA, including running press days and carrying out interviews for features, press releases and social media content.
Conor said: “I am delighted to be joining the amazing team at Eden PR and am excited to start working with my clients. It’s a very busy and fast-paced time to be joining Eden, with lots going on and new client wins. 2023 is looking like a big year for us!
“The team at Eden have been incredibly welcoming so far, and already have helped me to feel at home. Everyone is incredibly supportive of each other and I’m looking forward to continuing my own self-development, as well as overseeing the growth of our client-base and fantastic junior staff at our Lace Market office.”
Joint Managing Director at Eden PR, Kathryn Greenwood, said: “It’s been great to add Conor to our growing team at Eden. He will help oversee the account management for some of our biggest accounts and we are excited to see the ideas he will bring to the table.”
East Midlands Chamber urges region’s businesses to get involved with devolution consultation
East Midlands Chamber is urging businesses in Derbyshire and Nottinghamshire to get their voices heard by taking part in a consultation over devolution plans.
The four upper-tier local authorities in Derbyshire and Nottinghamshire last week launched a public consultation into proposals to establish an East Midlands County Combined Authority.
Set to be formed in 2024, the overarching authority would give the two counties more decision-making powers on areas such as transport, adult skills training, and the environment, as well as bring £1.14bn in extra funding over a 30-year period.
The consultation, running from 14 November until 9 January, is open to residents, businesses, community and voluntary groups, and other organisations in the region.
East Midlands Chamber chief executive Scott Knowles said: “The devolution deal for Derbyshire and Nottinghamshire is a huge opportunity by providing a political structure that removes obstacles to decision-making, enhances the ability to attract investment and ultimately creates an environment conducive to business growth.
“It will help these counties to take strides forward in productivity and innovation, enabling firms to drive the economic growth that creates jobs and wealth locally.
“Devolution also gives businesses a greater say over what happens in their area as they will be represented within the proposed governance structure.
“The Chamber is supporting these plans to create a mayoral county combined authority, but it’s important the full business community’s views are heard so we would urge organisations of all shapes and sizes to get involved with the consultation.”
The leaders of Derbyshire County Council, Nottinghamshire County Council, Derby City Council and Nottingham City Council signed up to work on a devolution deal on 30 August this year at the Rolls-Royce factory in Derby, following an announcement from the Government that a package of new powers and funding worth £1.14bn were available for the area.
Since then, the councils have been working on agreeing a more detailed proposal for consultation, which includes more information about how devolution would work in the two counties. The public consultation, which features a survey, represents the next step in the process, allowing everyone the chance to give their views on proposals.
To take part in the consultation, visit www.eastmidlandsdevolution.co.uk
Honorary professorship for Leicestershire business leader
An honorary professorship has been bestowed by De Montfort University upon a Leicestershire philanthropist and business leader.
Dr Nik Kotecha OBE DL, has been appointed Professor of Entrepreneurship, Innovation & Philanthropy for the Faculty of Health & Life Sciences, some 35 years after he completed his PhD in Medicinal Chemistry.
Since leaving education, Dr Kotecha has become a well-known entrepreneur, having founded Loughborough-based Morningside Pharmaceuticals in 1991, which he divested of in October this year. In 2017 he established his own charitable foundation, the Randal Charitable Foundation, which has an aspiration to directly save 1 million lives in the UK and globally.
Dr Kotecha, who is also a pro chancellor at DMU, said: “I was carefully considering a career in academia after university, and with 30 years in business instead, I never thought I would be receiving the title of ‘professor’.
“To now be honoured with this title is special. DMU teaches many students who are in the situation I was in 40 years ago. Many are the first generation of their family to go to university, from disadvantaged families and diverse ethnic cultures.
“When I meet their families and see these young people walk by me onto the stage at graduations, in my role as pro chancellor, I am incredibly proud that DMU has provided these excellent graduates with the opportunities they deserve.”
For Dr Kotecha the honorary professorship is particularly special because his family came to Leicester 50 years ago as refugees, when he was a child, after the Ugandan Asian community were expelled by the Dictator Idi Amin.
Supported by his parents, he was able to secure a County Council grant, which enabled him to gain a first-class (Hons) degree in Newcastle, and then his PhD at Imperial College London with further doctoral research at the University of Cambridge.
As part of his new role, Dr Kotecha will be delivering guest lectures, while sharing his expertise with students and academics across all faculties, with a focus on enterprise and innovation development, as well as student employability.
Talking about his ambition to share his own experiences, in the hopes of inspiring the next generation of entrepreneurs, Dr Kotecha said: “Education opened many doors and gave me important chances in life. I would be humbled if today’s students would see my story as an inspiration to raise their aspirations and follow their own dreams. It takes passion, commitment, hard work; but can be achieved by anyone who has the will and a positive attitude.
“I started Morningside from a home garage 30 years ago and grew it through entrepreneurship and embracing innovation into a global pharmaceuticals manufacturer and exporter. I hope that I will be able to share my story with students and inspire them to say, ‘if he can do it, I can do it’. If this is the case, then I will have succeeded in my role as professor.”
As well as sharing his experiences with the students, Dr Kotecha will also be taking up an advisory role with the university’s Leadership Team; drawing on his experience as an influencer in business, politics, and philanthropy.
This experience as a regional and national leader in the business world includes being chair of the East Midlands CBI, a Department for International Trade Export Champion; and a Board Member for the Midlands Engine Council, the Centre for Social Justice, the British Asian Trust and the Leicester and Leicestershire Enterprise Partnership (LLEP).
Talking about the advice he plans to share with students, Dr Kotecha added: “I was there making life-changing decisions as a student in the 1990s, so I understand what today’s students are going through now. I would like to help them discover that the skills they have learned in academia will open them up to so many more exciting opportunities in the world.
“My advice would be, find your passion. Then when you find your passion, discover your purpose in life. And having discovered your purpose in life, find your career.”
Congratulating Dr Kotecha on his appointment, pro-vice chancellor and dean of the Faculty of Health and Life Sciences, Simon Oldroyd, said: “DMU is so proud to welcome Dr Kotecha as a professor of Entrepreneurship, Innovation and Philanthropy. He is one of Leicestershire’s great business success stories and he has helped millions around the globe.
“The vast experience Dr Kotecha has accrued in the world of medicine, business and philanthropy over 35 years, coupled with his incredible drive to succeed and help others, will bring huge benefits to our students, academics and the wider community.”
