< Previousup these machines, all with the aim of improving productivity and reducing waste. These innovations will likely the engineering industry for some time. These changes within our region are a prime opportunity for the engineering sector, but the long term must be kept in mind as much as the short. The industry does face a crisis of its own in the lack of skilled applicants and engineering students studying at university. Though it may seem a benign problem; that the industry has more work than workers, this will become a serious problem in the future that might lead to less new investment being made in the country. If we cannot look after what is already invested, after all, then why would foreign investors pour more money into our economy? Government schemes to fix this have so far proved to be of limited success, and it may be up to the engineering firms themselves to address the problem. This is perhaps better for them in the long run anyway, since it means keeping core talent within the company. Apprenticeships are one such option and have been a method employed since medieval times and perhaps even before. Engineering takes particularly well to this due to the complex but binary nature of many of its tasks. There is a right and a wrong way to do something, and although complex problems may arise, they are not going to be of a moral or ethical nature like for a solicitor, judge or heart surgeon. Whatever the decision that is made, the brain drain – as it is called – will be a concern for the industry and the country as a whole unless it is taken care of. Local engineering firms can seek to address the issue themselves or adopt a wait and see policy, but it is unlikely to go away. The work is there, for those with the expertise to grasp it, but there is perhaps `too much` work for the limited workforce we currently have. To ensure that this bountiful harvest continues for the entire sector, changes will need to be made. Hopefully it will be our region that leads the change. ENGINEERING© SHUTTERSTOCK.COM / GORODENKOFF20 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk© SHUTTERSTOCK.COM / GORODENKOFF18-20.qxp_Layout 1 04/02/2019 10:09 Page 3Subscribe now and receive Business Link every month, delivered to your doorDelivery Details Name:............................................................................................ Position:......................................................................................... Company:...................................................................................... Address:......................................................................................... ........................................................................................................ 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Minimum term of 12 months/1 Year 2 Years 3 Years Please charge my:21.qxp_Layout 1 04/02/2019 10:12 Page 122 East Midlands Business Link www.eastmidlandsbusinesslink.co.ukTAXWere you one of the growing number of people who filed their tax return on Christmas Day? By Erica Manderfield, Tax Partner at Streets Chartered AccountantsAccording to the Revenue a record number of people filed their tax return on Christmas Day last year, with 2600 people perhaps preferring to do this as opposed other more festive activities. The number doing so was up on the previous year. Whether those people completing their return were doing so because they were hoping for a tax rebate to pay for presents, or they just wanted to take advantage of optimum internet connectivity to complete their return, who knows? There will still be many people who do not complete their tax return by the 31st January deadline and will probably be looking for an excuse as to why they didn’t. HMRC has released its list of some of the worst, or perhaps best, excuses for the late filing of tax returns. Whilst the Revenue undoubtedly receive excuses such as the dog ate my return and other more typical school boy responses for not completing their homework, the ones that follow certainly seem no more effective in justifying not completing a return or the ability to seek forgiveness or tolerance from the Revenue. For those who have completed their return, the list that follows will provide some light relief: 1. I couldn’t file my return on time as my wife has been seeing aliens and won’t let me enter the house. 2. I’ve been far too busy touring the country with my one-man play. 3. My ex-wife left my tax return upstairs, but I suffer from vertigo and can’t go upstairs to retrieve it. 4. I’ve been just too busy – my first maid left, my second maid stole from me, and my third maid was very slow to learn 5. My mother-in-law is a witch and put a curse on me For those who made no effort to sort their return, or even check if they needed to file a return, the list might be food for thought for more plausible excuses for not completing your return on time. Such excuses are not likely to carry favour with HMRC – however plausible they are. Certainly it might be the case that your time may be better spent actually buckling down and getting your tax affairs in order. Why? Because if you miss the deadline for filing you will face a financial penalty from HMRC. You may also find that HMRC, in the absence of your return, calculate the tax they feel is due and then issue you with a tax demand to pay, which will include interest and penalties for late payment and for not filing a return, but might also overstate your income. If you have a genuine ‘reasonable excuse’ you can appeal against the penalty. It does though have to be ‘reasonable’ and not just that you have not done it or even that you didn’t know you should have done one. For a growing number of people the best approach to dealing with their tax return is to enlist the services of a tax professional, someone who can complete your return in a timely and efficient manner and one that ensures you only pay what is due. 22-23.qxp_Layout 1 04/02/2019 10:12 Page 122-23.qxp_Layout 1 04/02/2019 10:12 Page 2PROPERTYSupply demand 24-26.qxp_Layout 1 04/02/2019 10:15 Page 1The good news is that although the supply simply isn’t there at present to meet rising demand, Brexit hasn’t impacted the regional market in the way we’ve seen in other parts of the UK. Indeed, property consultancy Lambert Smith Hampton (LSH) claims that real estate in the Midlands is proving to be resilient. During the fourth quarter of 2018, more than £1.2 billion worth of assets changed hands across the region. If that sounds like an impressive amount it’s because it is with LSH reporting the figure as the highest quarterly volume witnessed in 2018. It capped off an altogether impressive year for the region with annual growth volume coming in at £4.29 billion. In the East Midlands specifically, fourth quarter deals included some major transactions such as Japan’s Norinchukin Bank purchasing Highcross Shopping Centre for £236 million. Elsewhere, Tritax Big Box REIT swooped for Midlands Logistics Park in Corby for £89 million. “Viewed in the current context, Q4’s healthy volume is a timely reminder of just how resilient UK real estate is proving to be in spite of all the political toing and froing,” says Adam Ramshaw, LSH’s Regional Director for the Midlands. “This is particularly true of overseas investment, where the current uncertain environment could be seen by many as a buying opportunity.” However, Mr Ramshaw cautions that investors and developers shouldn’t rest on East Midlands Business 25 PROPERTY26 Áwww.eastmidlandsbusinesslink.co.ukThe commercial property has waxed and waned these last few years as uncertainty stemming from Brexit compounds deeper market issues. Perhaps the greatest threat to the sector here in the East Midlands is one of supply and demand. Any regular reader will already be familiar with the dearth of available Grade A stock across the region, despite a swathe of new developments looking to fill the deficit. © SHUTTERSTOCK.COM / NESPIX© SHUTTERSTOCK.COM / TRABANTOS24-26.qxp_Layout 1 04/02/2019 10:15 Page 2PROPERTY26 East Midlands Business Link www.eastmidlandsbusinesslink.co.uktheir laurels. “That said,” he adds, “the wider market is likely to be relatively subdued in Q1 as domestic and smaller lot-size investors opt to sit on their hands and await greater clarity on the timing and manner of the UK’s exit from the EU. “I am nonetheless upbeat about 2019, with volumes bouncing back in the second half of the year. We are largely ruling out the prospect of further yield compression in 2019, meaning investors will be especially focused on strategies aimed at maximising income and capital growth.” Despite these political headwinds, the East Midlands market will likely continue to grow on the back of a strong 2018. According to Mathew Smith, Lead Director of real estate investor JLL’s Nottingham office, the pre-let of HMRC of 276,000 square foot and Sladen and Peveril’s Unity Square office development had created a catalyst for future growth in the region which will attract further investment to the city. He also stated that the commitment to build Bildurn’s Station Street, Miller Birch’s Guildhall Place or Henry Boot’s and Nottingham City Council’s Angel Row scheme would also push much-needed Grade A into the market in 2021 and create a further jump in prime rents, predicted up towards £25 per square foot. “In 2019, however, as Grade A supply levels still remained low, high-quality speculative office refurbishments will continue to dominate the market and in the main be rewarded with long term lets, with rents continuing to gain the record levels achieved last year of £20 per square foot across 29,000 sq ft at the Royal Standard Place,” says Mr Smith. “Changing occupier demand will also be a significant disruptor in the East Midlands market and increasing demands for flexible working, technology and a drive for smarter buildings will influence the types refurbishments, new build delivery and landlord behaviour as we move through 2019 and beyond.” On the industrial side, Mr Smith said he believed the Golden Triangle was “redefined in 2018” on the back of the Segro Logistics Park East Midlands Gateway scheme, attracting significant occupier interest from launch. This contributed towards the East Midlands having the highest level of regional big box take-up within the UK at 9.6 million square foot – 43 per cent of total UK take up. “We believe 2019 will be a repeat performance,” says Mr Smith. “Occupier demand will remain robust, with the delivery of some of the largest speculative buildings to date, including 550,000 square foot at Panettoni Park Eastwood, 372,000 square foot at Derby Commercial Park and 530,000 square foot at IM Properties, Hinckley Park. “New schemes coming forward such as Henry Boot’s New Horizon in Nottingham and Wilson Bowden, Peveril Securities and Cedar House Investments in Infinity Park Derby will continue to help meet occupier demand in the region.” Although political uncertainty has seen investors become more cautious, that hasn’t led to a slowdown for the East Midlands property market. Indeed, 2018 saw strong growth which is expected to continue right through 2019. In order to make the most of this upward trajectory, more quality Grade A space is needed to encourage not only investors into the region but businesses. © SHUTTERSTOCK.COM / KAN_CHANA24-26.qxp_Layout 1 04/02/2019 10:15 Page 3A skills shortage is facing the business industry in not only the East Midlands, but the country at large. Is the solution to hire new talent, or up-skill the people you already have? New technology has certainly brought about new opportunities – but with that comes the requirement for greater education and training to ensure it can be used to its fullest effect. Fortunately, cities in the East Midlands are blessed with fantastic educational establishments who have forged effective links with business to ensure a more informed and enthused workforce. The skills shortage presents an increasingly demanding problem in the present, but its future effects are doubly harmful as the current workforce moves closer to retirement age. This could potentially lead to a major knowledge gap, with no new workers entering the fold and no existing individuals to teach to pass skills on. The national skills shortage is reaching crisis level in some sectors, with two thirds of construction companies forced to turn down business due to the chronic lack of skills. A survey undertaken by the Federation of Master Builders found that small construction companies are struggling to find bricklayers, carpenters and plasterers to carry out work, resulting in a loss of revenue. The survey also found that the principal cause of the shortage was due to the lack of available apprenticeships, along with mounting pressure for www.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 27TRAINING & APPRENTICESHIPS28 ÁTrain old & train new? It’s undeniable that many industries face a skills shortage, but is the answer really to take on new people – or can we train and up-skill those we already have © SHUTTERSTOCK.COM/ RAWPIXEL.COM27-29.qxp_Layout 1 04/02/2019 10:18 Page 128 East Midlands Business Link www.eastmidlandsbusinesslink.co.ukyoung people to stay in full time education. And therein lies the problem. Young people are under pressure to stay in further and higher education, and so the issue is perpetuated. Apprenticeships are by no means a cure all, but they can help to bypass the shortage and fill the knowledge gap, ensuring a pipeline of skilled workers for the future. Apprentices regularly become loyal and long-standing members of staff, with employers boasting high retention rates. 90 per cent of apprentices stay in employment, while 71 per cent stay with the same employer. Indeed, employers think apprentices are 15 per cent more employable than those with other qualifications. Of course, filling the skills gap is only one of the benefits of hiring an apprentice. According to data collated by the National Apprenticeship Service, 76 per cent of employers who currently employ apprentices agree that doing so makes the workplace more industrious. Typically, an apprentice will deliver productivity gains of over £10,000 per annum – a figure that nearly doubles in the construction and planning, and engineering and manufacturing sectors. It isn’t just productivity; apprentices often bring a fresh perspective, a wealth of ideas and innovation to a business, which motivates and inspires existing employees. It’s a relatively simple means of boosting workplace productivity, ethic and impetus. Appointing apprentices is a much more cost effective and efficient way of priming employees, rather than taking on and training new staff, or paying to advertise vacancies on job-sites and/or social channels. Employers are only required to pay for an apprentice’s salary – currently at £2.73 an hour – not their training. 59 per cent of employers claim that training apprentices is far more cost effective than hiring skilled staff with lower overall training and recruitment costs. There might be plenty of benefits to employers, but there are also pervasive myths surrounding apprentices. One of the most pressing is that running an apprenticeship scheme will eat into management time, likewise there’s an unfounded issue of expenditure or that of a company being too small to take on an apprentice. But misconceptions exist on both sides of the divide, with many young people believing that apprenticeships are only for manual labour positions. Apprenticeships, whether good or bad, are lauded as a long-term solution, but many companies might face more immediate concerns, or may not have the time to dedicate to training a young starter themselves. In these cases, the only options are to hire new talent – an expensive, time-© SHUTTERSTOCK.COM/ GOODLUZ27-29.qxp_Layout 1 04/02/2019 10:18 Page 2www.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 29TRAINING & APPRENTICESHIPSconsuming and often difficult task, or to train the existing workforce up to be more efficient. Using training companies to up-skill your own workforce removes some of the risks involved in both apprenticeships and new employees, particularly if the training is used as a reward for particularly competent or valuable employees. While these newly skilled employees might expect higher wages – there is the assurance of their commitment to the company, as well as their ability to perform in their given role. Investing in their future is also likely to go a long way to improving their job satisfaction as well. Universities regularly offer courses for older and mature learners, specifically aimed at businesses who wish to up-skill their workers, but they are by no means the only option, and with increased tuition fees may not be the most attractive one. There are many specialised training providers who might not be able to offer the range of different options a university can, but have far more experience and expertise in their specific field. It’s worth shopping around rather than defaulting to an educational institute, because first-hand experience working in the industry can yield insight rarely found in academic study. The goal, at the end of the day, is for a company to get their money’s worth when it comes to the training, which will yield tangible results for the business. Training can have many benefits, however, and should not be considered a solution to be used only when there is a problem. Research shows that investing in the development of employees not only improves their ability to do the job, but also retention rates, reducing staff turnover and absenteeism. This is, psychologically speaking, due to the increased trust the employee feels in their employer, and the fact they have more faith in their job security if there is a clear long-term plan to keep them in the company. Naturally, such can only be undertaken if there is a clear plan to keep that member of staff, but for key managerial or skilled members of the workforce, that is likely to be a concern already. One area where specific focus is being laid is on health and safety. In almost all cases, the employer and company themselves is liable for any injury or death, with fines and investigations capable of shutting down work for days or weeks at a time. Preventative training, that is to say training undertaken with a view to reduce the chance of disaster, can help mitigate the risks of such happening, while first aid or medical training is not only a necessity – there being a legal requirement to have a first-aid trained member of staff on premises – but also something that can save lives, particularly in more hostile industries such as manufacturing, agriculture or construction.© SHUTTERSTOCK.COM/ RIDO27-29.qxp_Layout 1 04/02/2019 10:18 Page 3Next >