< Previous20 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk ENVIRONMENTAL AND WASTE MANAGEMENT Rethinking waste drives business advantage Rethinking waste drives business advantage www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 21 ENVIRONMENTAL AND WASTE MANAGEMENT E nvironmental management has moved from aspiration to obligation. Across industry, the tightening of legislation on waste is forcing leaders to rethink how materials are used, recovered and disposed of. Distribution networks, food production, construction, logistics and service industries are now all caught in a framework that demands compliance while challenging businesses to extract value from resources that would once have been discarded. Plastic remains the sharpest point of pressure. The material is everywhere: in protective wraps, bottles, trays, pallets and components. Businesses understand the reputational risk of failing to manage it, but the practical barriers to recycling are well documented. Not all plastics are the same. Multiple grades, often laminated or blended with other materials, do not lend themselves to simple collection and reprocessing. Sorting is labour-intensive and expensive. Volumes are inconsistent. Even when material is recovered, finding a viable secondary market for low- quality plastic can be challenging. The UK’s Plastic Packaging Tax has now bedded in, requiring manufacturers and importers to pay a levy if recycled content falls below 30%. This single measure has driven new investment in sorting, washing and pelletising plants that can close the loop. For some businesses, it has also led to re- engineering of products and packaging to reduce complexity and make recovery more straightforward. The aim is not only to meet the legal threshold but to limit future exposure as standards are likely to rise. For companies in the region, compliance is no longer a box-ticking exercise. It is shaping procurement strategies, prompting new partnerships and forcing operational change. Large manufacturers have been early movers, redesigning packaging lines and As tighter regulations and rising costs reshape how companies handle materials, firms are turning waste into value through innovation, collaboration and long- term planning. 22 Á22 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk ENVIRONMENTAL AND WASTE MANAGEMENT specifying materials that can be mechanically or chemically recycled. Food processors have reduced multilayer films, while distributors are consolidating their use of plastics to a smaller number of polymer types that can be handled in bulk. These adjustments are not made for appearances. Disposing of mixed or contaminated plastic is becoming more expensive as landfill options reduce and gate fees for energy-from-waste increase. Two companies in Derbyshire are showing how waste can become value. Wirksworth-based TDP Ltd has turned more than 3 billion plastic bottles into outdoor furniture, with demand for its memorial benches doubling thanks to a QR code feature that shares personal stories. Toyota Motor Europe is taking a different route with its new Circular Factory at Burnaston, set to recycle and remanufacture end-of-life vehicles by recovering parts and materials including steel, aluminium and plastic. The same is true for other waste streams. Cardboard and wood are still widely used but are relatively easy to manage. Metals have a well-established value chain. It is plastics and organics that remain complex. For organic waste, the move towards anaerobic digestion has created both opportunity and challenge. Capacity is growing, but strict controls over contamination require careful segregation on site. For many businesses this has meant investing in on-site systems that pre-sort and compact food and plant waste, turning a disposal cost into a potential energy feedstock. The trend is equally visible in construction and property-related sectors. Contractors now work to divert as much material from landfill as possible, with detailed records of how waste is handled forming part of client requirements. Recycling of plasterboard, bricks and aggregate has become routine, but timber and plastics continue to require special attention. On larger developments, site waste management plans are no longer optional. They are audited. They inform procurement. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 23 ENVIRONMENTAL AND WASTE MANAGEMENT Increasingly they are tied to contract performance. As regulation tightens, innovation is stepping in. Chemical recycling technologies that can break plastics down to molecular level are attracting interest, allowing materials previously considered unrecyclable to be processed. Advanced robotics are being used in sorting facilities to identify and separate materials faster than manual labour. Smaller, modular units are being deployed closer to source so that waste does not need to travel long distances before processing. For businesses operating large distribution centres or manufacturing hubs, these developments are particularly relevant. The logistics cost of moving low-value, bulky waste can be significant. Decentralised processing reduces that burden. The circular economy is more than a slogan. Businesses are starting to see a measurable return on investment in closed-loop systems. Pallets, crates and transport packaging are being designed for reuse, with automated tracking to ensure assets come back. Materials are kept in use for as long as possible. At the same time, data reporting obligations are becoming tighter, requiring clear records of tonnages, recycling rates and destinations. This data informs everything from tax liabilities to ESG reporting. In the end, waste is a visibility issue. What once disappeared from sight at the back gate is now measured, reported and, in many cases, publicised. Transparency is forcing improvement. For those willing to invest in better systems and technologies, the rewards include lower costs, lower risk and a stronger reputation. For those who are slow to respond, the opposite is true. The environmental agenda is no longer an add-on. It is part of the commercial framework within which businesses operate. Leadership teams must view waste management not as a constraint but as a design parameter for how they run their organisations. That shift, already well underway, is defining competitive advantage in the years ahead.24 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk ACCOUNTANTS REVIEW Accountancy steps up in uncertain times Accountancy steps up in uncertain times www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 25 ACCOUNTANTS REVIEW U ncertain economic conditions have become a defining feature of the business landscape, and many companies are finding that access to clear financial guidance has never been more important. For some, growth is creating new pressures on cashflow and reporting. For others, volatility is prompting a defensive posture, with boards wanting to know exactly where risks and opportunities lie. In both cases, accountancy is moving beyond compliance to become a strategic partner. The range of services now offered by independent practices is far wider than a decade ago. While tax, audit and statutory reporting remain the bedrock, clients are increasingly asking for support with forecasting, business planning, funding applications and performance analysis. These services were once the preserve of in-house teams at larger corporates. Today, smaller businesses are drawing on the same level of expertise through outsourced and flexible arrangements. A significant factor in this shift has been technology. Cloud accounting platforms have transformed the way financial data is handled. Many accountants are now providing dashboards and real-time reporting tools that allow directors to make decisions on the basis of up-to-date figures rather than waiting for quarterly packs. For businesses navigating fast- moving markets, that speed has become essential. Automation has also reduced the administrative burden, making it possible for accountants to spend more time on strategic advice rather than manual processing. At the same time, legislative changes continue to reshape what good practice looks like. Making Tax Digital is the most visible example, and while the phased approach has given companies time to adapt, it has also Firms are turning to accountants for more than compliance, with strategic advice, technology and scenario planning now central to financial stability and growth. 26 Á26 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk ACCOUNTANTS REVIEW created complexity for those who have yet to move fully into digital systems. Further changes in areas such as research and development tax credits and capital allowance regimes have made it more difficult for businesses to keep pace without professional guidance. The availability of finance is another area where accountants are playing a larger role. While bank lending remains an option for many firms, the rise of alternative finance providers has created a more fragmented market. There are asset-based lenders, invoice discounting platforms, growth funds and private capital all competing for attention. The challenge for companies is knowing what to choose and at what cost. Accountants, because of their day- to-day knowledge of a company’s position, are well placed to assess affordability and negotiate terms. For companies under pressure to manage debt levels carefully, that input can make a difference to long-term sustainability. There is also a growing emphasis on scenario planning. Many accountants now run financial models that stress-test a company’s cashflow against different trading conditions, from rising interest rates to supply chain shocks. These models allow management teams to understand their resilience before challenges arise. In some sectors, lenders now expect to see this work as part of their due diligence before committing to new funding. For high-growth firms, accountancy advice can be equally important. Expansion often brings complexity: multiple revenue streams, international trading, more demanding investor reporting and the need to manage working capital efficiently. Specialist advisers help companies to structure growth in a way that avoids overstretching the business. They also ensure that tax structures, whether domestic or cross-border, are managed with an eye on efficiency and compliance. One of the recurring themes from business leaders is the importance of www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 27 ACCOUNTANTS REVIEW selecting the right accountant. The relationship has to be one of trust. While price remains a factor, boards are increasingly focused on whether the firm understands their industry, whether it can provide specialist advice where required and whether the service is proactive rather than reactive. Many companies now see value in regular reviews rather than once-a-year meetings, because those touchpoints allow for earlier interventions and course corrections. The choice between a smaller independent practice and a larger national firm is another consideration. Independents often offer closer personal relationships and a more tailored service, while larger firms bring scale, international reach and deeper pools of technical expertise. The best fit depends on the size and ambitions of the business. Regardless of the type of firm chosen, directors are encouraged to ask clear questions about the approach to client service, the technology platforms used and how fees are structured. Transparency on all of these points reduces the risk of surprises later. For businesses deciding how to manage their finances in the current climate, there are clear questions to consider. Is your reporting giving you the information you need, when you need it? Are you confident that you are making full use of available allowances and reliefs? Do you know where your cashflow stands in a range of different trading scenarios? And does your financial partner challenge your assumptions and help you see risks you might otherwise miss? The answers to these questions can make a decisive difference to stability and growth. As external pressures continue to shift, the role of the accountant is likely to become even more closely aligned with the strategic core of a business. Those who view it purely as a compliance function risk overlooking one of the most effective levers for resilience and opportunity available today.B ig changes are coming, and they could hit family-owned trading and farming businesses hard. HMRC has now confirmed that major reforms to Inheritance Tax (IHT) reliefs for business and agricultural property will take effect from 6 April 2026. These changes represent a significant loss of tax relief for many business owners and the financial consequences could be substantial. What’s changing? The government’s Autumn 2024 Budget set the wheels in motion to scale back both Business Property Relief (BPR) and Agricultural Property Relief (APR): * The existing 100% rates of relief will continue for the first £1 million of combined agricultural and business property. The rate of relief will be 50% thereafter. * Gifts to trusts made on or after 6 April 2026 will be subject to an individual’s £1 million allowance every 7 years. * A £1 million allowance will apply to the combined value of qualifying APR/BPR property held by trustees of discretionary trusts. This will be taken into account when calculating each future tax charges on 10-year anniversary dates and when property leaves the trust. There are various restructure their businesses in a tax efficient way for future generations. A wake-up call for succession planning Some owners of APR/BPR property have not realised the full implications of these changes. In the past, there has been no need to consider long term business succession planning. This is because 100% BPR/APR meant that limited IHT would be due on the death of the owner. In addition, there would be a tax free increase in the capital gains tax (CGT) base cost of the assets to their value at the time of death. Now, many family businesses will need to identify a long term strategy to maximise the availability of £1m IHT 100% exemptions. Laying the groundwork Many owners of BPR/APR businesses do not know how much IHT could be payable on their deaths under the new rules, or the real value of their businesses in tax terms. Establishing a clear baseline is the essential first step. From there, the priority is to develop a long-term strategy to maximise the available reliefs and minimise future tax exposure. Reassess your business — do you still qualify for reliefs? Some business owners may have diversified over time, and now need to 28 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk TAX Major IHT changes ahead – time to protect your family business Jennie Brown, tax partner at Streets, provides an update on the inheritance tax changes recently confirmed by HMRC. transitional rules that will need to be considered. HMRC’s consultation response – but no real U-turn HMRC launched a technical consultation on the proposed changes in February 2025. The outcome was published on 21 July 2025. Disappointingly, very few changes are proposed. For example, 100% BPR/APR relief is not to be transferable between spouses or civil partners. Also, some owners of BPR and APR will now be ‘caught out’. This will be where there is no realistic possibility of them being able to make gifts over time of BPR/APR property to maximise the amount of £1m allowances available within the family. One notable change was that the government accepts that the proposed valuation rules in relation to linked holdings of shares in family trusts owning APR and BPR assets will not be introduced because of the complexity this would involve. Time is ticking – sooner than you think The deadline for the commencement of the new rules is 6 April 2026. Special rules will apply during a transitional period where gifts take place on or after 30 October 2024 and before 6 April 2026. This will enable many owners of business or farming interests to TAX reassess whether their current structure still qualifies for BPR or APR. In addition, a common issue is that successful family trading businesses often hold non-trade related assets, such as surplus cash, investment properties, or other passive holdings. Both elements could compromise eligibility for BPR and limit the availability of holdover relief where gifts are made to individuals. Failure to address these issues can also result in an unexpected 20% IHT charge if assets are settled into trust and no relief applies. Optimising relief through trusts For many family businesses holding business or farming interests through family trusts is an important option to consider. The £1 million allowance will apply to any gifts of APR/BPR property made during the transitional period which subsequently come back into charge as a result of the death of the settlor after 5 April 2026 and within 7 years of having made the gift. Insurance here is something to consider, but there is scope to make meaningful gifts prior to the expiry of the transition period. Wills and the risk of wasting relief The failure to make the £1m BPR/APR allowance transferable to surviving spouses and registered civil partners was a major blow. Wills need to be reviewed so that they do not leave qualifying assets to a surviving spouse or registered civil partner, this could have the effect of wasting a £1m APR/BPR allowance. This means that thought should be given to leaving the shares to a suitably drafted will trust to preserve the availability of the relief. Life insurance: a renewed role in IHT planning Life insurance has not traditionally been a priority for many owners of family trading or farming businesses, as unlimited 100% APR or BPR relief often removed the need for it. However, with those reliefs now capped, it is essential to revisit the business’s life assurance needs. A carefully structured life policy can provide liquidity to meet future IHT liabilities, but it must be written in trust and held outside the estate to ensure the proceeds do not form part of the taxable estate on death. Planning now for a changed future The new rules will have a significant and lasting impact on family trading and farming businesses. Reliefs that were once unlimited are now capped, and longstanding planning approaches need to be revisited. Now is the time for business owners to get their affairs in order, not only to adapt to the incoming changes, but to ensure they are making full use of the remaining planning opportunities while they’re still available. At Streets, we’re already helping clients review their structures, model future IHT exposure, and implement strategies that preserve relief and protect family wealth. From trust and will planning to business restructuring, we’re here to help you make the most of the time that remains. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 29 Next >