“This 1,000-fold increase sends a clear signal that we want clean rivers and coastlines, and that the duty falls to the water companies to deliver – the polluter must pay.”
Government plans to crank up pollution fines to £250million
The Government wants to raise the civil penalty for water companies who pollute the environment from £250,000 to up to £250 million.
The move comes as part of a push for water companies to invest more in preventing pollution and securing water supplies for future generations. Last year there were 62 serious pollution incidents by water companies – up from 44 in 2020.
At present, if water companies fail to uphold the law or cause environmental harm, the Environment Agency can pursue both criminal and civil prosecutions as part of their enforcement regime.
Whilst fines handed out by the courts through criminal prosecutions are unlimited, these can be a lengthy and costly process. Civil sanctions called Variable Monetary Penalties imposed directly by the EA rather than the courts can offer a quicker method of enforcement.
VMPs can be issued for more serious offences, including when there is evidence of negligence or mismanagement or when there is an environmental impact.
It’s claimed increasing the cap for fines up to £250 million will simplify and speed up the process of enforcement by allowing the EA to directly hand out penalties to water companies.
Environment Secretary Ranil Jayawardena said: “I have been clear that if water companies don’t do what is expected, there will be consequences. Bigger financial penalties will act as a greater deterrent and push water companies to do more, and faster, when it comes to investing in infrastructure and improving the quality of our water.
East Midlands businesses face steep rates rise next April
Organisations in the East Midlands which are liable for business rates are set to face a major potential financial crisis in April 2023, with an average expected rise of around 36% in business rates, according to David Wagstaffe, head of business rates advice at property consultants Matthews & Goodman.
The rise, due to be introduced on 1 April 2023, follows the Valuation Office’s (VO) recent completion of a nationwide revaluation of (non-domestic) properties liable for business rates.
Commenting for Matthews & Goodman, David Wagstaffe said: “Given everyone’s current focus on cost management, it’s important that business leaders don’t ignore the implications of this revaluation – because it’s only six months away.
“The reality is experts believe that the average rates bill in the East Midlands will rocket up by around 36% which is close to the expected average increase of 35% across the country – at a time when every organisation is already suffering from crippling energy and staffing cost rises.
“The anticipated rises are based on the rental values which vary according to location and property type. I strongly advise any ratepayer to seek advice from a business rates specialist to make sure that their position is clear.”
With regards current rates – which can be backdated to April 2017 – David Wagstaffe urges ratepayers to remember that there is still an opportunity to review their current business rates liabilities, as reductions can still be achieved via the Check, Challenge and Appeal process – but he does stress that applications should start as soon as possible as the cut-off date is 31 March 2023.
Matthews & Goodman is also warning that according to the government’s report into the future of business rates, the April 2023 changes could ultimately lead to fines being imposed on businesses if they fail to confirm that data held by the VO on their properties is correct. They could also be fined if the VO is not notified of any alterations undertaken to properties.
“It would be in every ratepayer’s interest to contact us or their business rates specialist to determine how best to mitigate their future business rates risks,” advises David Wagstaffe. “My strong advice is to get professional, expert and experienced business rates advice – and get it soon.”
Changes to VAT filing system just weeks away
From the beginning of November VAT-registered companies will no longer be able to use their existing VAT online account to submit VAT returns.
That’s the date that, by law, all VAT-registered businesses must sign up to Making Tax Digital and use compatible software to keep VAT records and file returns.
MTD’s aim is to help businesses get their tax right first time by reducing errors, making it easier for them to manage their tax affairs by going digital, and consequently helping them to grow.
More than 1.8 million businesses are already using the service, and more than 19 million returns have so far been submitted through MTD-compatible software.
In less than one month, businesses who file their VAT returns on a quarterly and monthly basis will no longer be able to submit them using their existing VAT online account, unless HMRC has agreed they are exempt from MTD.
If businesses do not file their VAT returns through MTD-compatible software, they may have to pay a penalty. Even if a business currently keeps digital records, they must check their software is MTD compatible and sign up for MTD before filing their next return.
Richard Fuller MP, Economic Secretary to the Treasury, said: “Making Tax Digital can help businesses get their tax right first time, which cuts the administration burden and frees up time for them to get on with what matters most to them – growing their business. I encourage any VAT-registered businesses still to register for Making Tax Digital to get online and sign up.”
East Midlands law firm creates £100m powerhouse through latest merger
East Midlands Law firm Shakespeare Martineau, has created a £100m powerhouse after completing its latest merger with Bristol firm GL Law – expanding its reach into the Southwest for the first time.
Part of legal and professional services group Ampa, Shakespeare Martineau’s Bristol expansion is in line with the wider group strategy of investing in and bolstering the brands across the group’s portfolio. The union will help take the group’s turnover to more than £100 million for the current financial year.
There are no redundancies as part of the merger and the firm is proactively looking to recruit talent in the Bristol market. The partners based in Bristol will drive the Shakespeare Martineau brand locally.
Sarah Walker-Smith, CEO of Shakespeare Martineau and Ampa, said: “We’re thrilled the merger is now official and GL Law is part of Shakespeare Martineau.
“Our House of Brands strategy includes a combination of introducing new standalone brands to the group or combining new teams or entities with our current leading brands. In the case of GL Law, its existing legal offering and its market, it made sense for it to join Shakespeare Martineau and expand the footprint of this brand within our group.”
Richard Hill, MD at GL Law, said: “What’s crucial for us is continuation of service for our clients and the best opportunities for our people – this merger offers both. We’ve been acting for owner-managed businesses, SMEs, start-ups and some of the most discerning private clients across the Southwest and beyond for more than 300 years and we look forward to continuing and extending this legacy under the Shakespeare Martineau brand.”
Amazon East Midlands SME Impact Report
Amazon has published its UK SME Impact Report which highlights how small and medium-sized enterprises (SMEs) selling on Amazon have created 250,000 jobs across the UK to date. Many small business owners have been able to adapt to recent challenges and thrive online for the first time. Over 15,000 UK SMEs selling on Amazon surpassed £100,000 in sales last year, and over 700 reached sales of £1 million or more for the first time.
More than half of all physical product sales on the Amazon store in the UK are from independent selling partners, most of who are small and medium-sized businesses. More than 85,000 UK SMEs now sell on Amazon – up more than 25% year-on-year. These businesses reached hundreds of millions of customers around the globe in 2021 – more than half of UK-based sellers exported to another country. They also sold more than 950 million products on Amazon, up from 750 million the year before, which is equivalent to more than 1,750 products a minute on average.
SMEs from across the UK are increasingly seeing success from selling on Amazon’s stores, supporting regional economies and communities. Many of these businesses are located outside of London – for example, North West England now has more than 12,000 sellers, up 35% compared to the year before; Wales has over 2,500 sellers, up around a third on the year before; and Scotland has around 4,000 sellers, up around 30% on 2020. Across major UK cities, SMEs based in Manchester, Belfast and Glasgow selling on Amazon recorded some of the highest average annual revenues, surpassing the average annual revenue of London-based sellers.
Last year around 50,000 sellers in the UK used Amazon’s fast shipping and inventory management service, Fulfilment by Amazon, and grew their sales by 25% on average. Amazon Business, the professional procurement solution, helped tens of thousands of UK sellers reach more than five million businesses worldwide, selling around 20 million items across office supplies, hospitality, healthcare, maintenance products and IT goods, generating over £400 million in sales. Through the hundreds of tools and services Amazon offers, and programmes like Amazon Launchpad, Amazon provides small business owners, start-ups and entrepreneurs with tools and opportunities to succeed. This extends beyond selling their products online, to include running delivery and logistics companies, using the cloud to launch and scale their businesses, creating voice apps, or publishing their own books.
Amazon today also announces the launch of its upgraded Amazon Small Business Accelerator, which will serve the evolving needs of the UK’s thriving small business community, hosted on Amazon.co.uk as an accessible and free-to-use suite of resources for all startups, entrepreneurs and small or medium-sized businesses. Current and aspiring business leaders can now access more than 20 courses and 50+ videos of content on topics like how to build a business online, supercharging operations, growing sales and creating a social media presence, bringing the best in class from the country’s small business experts and Amazon leaders.
“Supporting UK small businesses to fulfil their potential remains an essential part of what we do. Today we’re proud to launch our revamped Amazon Small Business Accelerator, which will help even more small businesses across the UK. Many people told us the Accelerator was the catalyst for them to start a new business during and since the pandemic, so we are excited to see how many more we can reach with new content, events and partners,” said John Boumphrey, UK Country Manager, Amazon. “In addition, the SME Impact Report shows many small businesses are proving resilient, and thriving against a challenging backdrop, with continued sales growth at home and abroad by using Amazon’s world leading services to help them.”
The new Amazon Small Business Accelerator also includes ‘Amazon Masterclasses’ to help people learn from the company’s senior leaders about decision making, innovation, customer obsession and more; and a range of new partners including Be the Business, Planet Mark, and The Federation of Small Businesses, who will deliver online content and specialist in-depth workshops and bootcamps. From September, Planet Mark and Amazon will host roundtables on how small businesses can improve their packaging, operational emissions and materials innovation; later this year, The Federation of Small Businesses and Amazon will run events focused on the protecting businesses from fraud, managing finances and fundraising processes.
More than 600,000 businesses have accessed the Accelerator since it started more than two years ago, in partnership with Enterprise Nation, launched as a direct response to the impact of the pandemic on the startup and SME community, with the aim of helping more than 200,000 businesses of all sizes to start and grow online.
Julian David, techUK CEO, said: “As we enter difficult economic waters ensuring the next generation of business leaders have the training, insight, and resources they need to innovate and thrive will be fundamental to protecting jobs and ensuring the UK can bounce back. The Amazon Small Business Accelerator is, therefore, an important and consequential initiative. techUK is proud to work with over 500 SMEs in our membership and thousands more across the tech sector, we will continue to back initiatives such as the Accelerator that can help them fulfil their full potential.”
Steve Malkin, CEO of Planet Mark, said: “As well as helping SMEs grow and succeed, this exciting partnership enables us to help SMEs on their path to net zero, while educating them on the benefits of embedding sustainability into everyday business practices and how this can help drive performance. Planet Mark has helped hundreds of SMEs embrace sustainability and cut carbon, and now working with Amazon and partners we look forward to helping thousands more small businesses thrive while also making a difference in our fight against climate change.”
Caroline Lavelle, Chief Commercial Officer, The Federation of Small Businesses, said: “It’s always good to see companies like Amazon play a role in supporting our smaller businesses to improve their online presence and reach. We hope that many of our members will find this useful.”
Dominique Woolf, founder of The Woolf’s Kitchen, is one of the more than 85,000 UK SMEs selling products on Amazon. In June 2020, Dominique, a professionally-trained chef, created a range of sauces inspired by her Thai heritage and started selling to independent farm-shops and delis. Later that year she joined an Amazon Small Business Accelerator bootcamp which inspired her to start selling online. She said: “The bootcamps highlighted the true benefits of Amazon and ecommerce – they provided the fundamentals in how to grow a small business online, and then provided a load of free resources which I’ve been able to access regularly. The Accelerator
Derbyshire construction firm wins £2m project to restore Nottingham mill
Enrok Construction has been appointed as principal contractor to deliver a £2m project in Nottingham city centre. The restoration project, which is expected to take approximately 12 months, will see the creation of 27 residential apartments within an historic building on Crocus Street.
Situated close to the Lace Market, Nottingham train station and within a designated conservation area, the former 19th century mill building and factory is spread over three floors. Planning has been approved for the property to change from its current use as a church into residential dwellings, enabling the creation of 22 one-bed and five two-bed apartments.
Jordan Mallisch, director at Enrok Construction, says: “We are really excited to be working on this former mill on Crocus Street with an existing client. We initially discussed it two years ago and now we are finally able to get started on the refurbishment.
“We’ll be replacing the windows, in keeping with their existing style, retaining features such as columns and braces and we’ll be taking some elements back to brick. When complete it will bring much needed high quality, residential accommodation to Nottingham city centre for both sale and rent.”
With extensive local knowledge and several large restoration projects under his belt, Dean Johnston has joined the Enrok team as site manager for the project. Originally from a bricklaying background and with over 30 years’ experience in the construction industry, Dean has a particular interest and passion for restoration and refurbishment.
Work has started on site with completion expected in late Summer 2023.
Leicestershire vet practice unveils £1m expansion plans
A Leicestershire veterinary practice has unveiled exciting plans for a new £1m branch.
Ash Tree Vets is relocating from Smeeton Road in Kibworth to a larger site to provide more space and a wider range of services for its growing number of clients.
An industrial unit on the nearby Wistow Road, off the A6, is being transformed to create a modern and vibrant centre for Ash Tree Vets, which also has branches in Market Harborough and Desborough.
The new facility will be equipped with the latest technology and will include:
· four consulting rooms for vets and nurses
· a dedicated physiotherapy room
· the latest hi-tech X-ray and ultrasound equipment
· separate dog and cat wards to reduce feline anxiety
· a laboratory
· two operating theatres
· a dental suite
· parking
There will also be a dedicated bereavement room for end-of-life care where clients can spend time in a calm, quiet environment that will feel less clinical as their pets are put to sleep. The room will be set back from the reception area with its own separate exit.
Certain procedures currently only offered at the Market Harborough branch will also be available, sparing owners and pets unnecessary travel.
Ash Tree Vets expects to open the new branch in January 2023, and a recruitment drive is underway to build a larger clinical team of senior vets and veterinary nurses alongside new reception positions and clinical support roles.
Stella Coulson, clinical director at Ash Tree Vets, said: “We have wanted to do this for a long time. We are in an area that is growing with new housing developments. There has always been scope for increasing client numbers but there hasn’t been capacity to expand with our current site.
“This is a ten-year future-proofing business plan. It is really exciting. There is a lot of work to do, but it is going well and our partners, Medicare Construction Ltd, have been exceptional.
“We have one vet consulting room at the current Kibworth site. At our main site in Market Harborough, we have three consult rooms, and two at Desborough. This is a definite improvement and we’ll be able to see more clients to meet demand and spread the load.
“For clients, the investment means having a local service which is on their doorstep rather than having to come to Market Harborough for certain procedures, as well as getting an appointment to see a vet on a day they want.”
The £915,000 relocation project is being funded by VetPartners, a veterinary group which owns 148 of the UK’s most respected and trusted veterinary practices, including Ash Tree Vets.
Work is progressing well, including the installation of a mezzanine floor and new internal walls at the site, part of which was previously a publishing house.
Ash Tree Vets will continue to provide care at its current location in Smeeton Road, Kibworth, until the new centre opens.
Kettering automotive components supplier acquired for £182m
Motus Holdings (UK) Limited has acquired automotive components supplier, Motor Parts Direct (Holdings) Limited, in a £182m deal.
Motor Parts Direct was established in 1999 in Kettering and now has a network of 175 branches and a fleet of over 900 delivery vehicles. The business has more than 14,000 active customers and employs 1,700 people.
Motus Holdings (UK) Limited is the UK-based subsidiary of South African listed Motus Holdings Limited. The company was listed on the Johannesburg Stock Exchange in November 2018 and is now South Africa’s leading automotive group, employing over 17,000 people globally.
This deal marks a significant milestone for the Motus group internationally, as it continues to expand its automotive aftermarket capability in the UK and reduce the Group’s dependency on vehicle sales.
Irwin Mitchell’s Corporate team advised Motus with partner Emma Callow leading the team. She was supported by senior associate Matt Smith; Greg Mazgajczyk; Tom Wisniewski, Alex Bloomer and Paige Richardson. Gurpreet Hayer led the Irwin Mitchell Real Estate team, supported by Stuart McDonald and Mary Gharmount.
Irwin Mitchell previously advised Motus Aftermarket Parts on the acquisition of FAI Automotive in October last year.
Commenting on the acquisition, Motus CEO, Osman Arbee, said: “Motus remains focused on deepening its competitiveness and relevance across the full automotive value chain. The acquired business is cash generative and asset light. It will provide economies of scale, procurement benefits and synergies. Key management have been secured and are committed to continue managing the business.”
Mike Tillson (partner) and Ryan Shields (director) of Grant Thornton Corporate Finance and Jonathan Hambleton (partner) and James Cowell (director) at Freeths acted for the shareholders of Motor Parts Direct.
Gateley makes fresh acquisition
Gateley, the legal and professional services group, has acquired Symbiosis IP in a £2.5 million deal.
Founded in 2008 by directors, Julie Myint and Rob Docherty, Symbiosis is a chartered patent attorney firm specialising in IP services for the life sciences industry. Symbiosis is the second patent attorney business Gateley has acquired onto its Business Services Platform following the acquisition of Adamson Jones in January 2022.
For the year ended 31 March 2022, Symbiosis delivered revenue of £1.8 million, with corporatised profit before tax of £0.3 million.
Rod Waldie, Chief Executive Officer of Gateley, said: “I am delighted to welcome Symbiosis to the group. This strategic acquisition will extend the reach of our offering in IP, patents and trademark work across our consultancy and legal services teams who operate in this field.
“The acquisition of Symbiosis forms part of an acquisitive and organic growth plan that builds on the expertise we have in the intangible assets market and where we believe there is potential for further development.”
UK manufacturing downturn continues at end of third quarter
September saw the downturn in UK manufacturing output extend to three months, as companies cutback production in response to declining new order intakes. There was less
positive news on the price front as well, with rates of inflation for input costs and output charges both accelerating.
The seasonally adjusted S&P Global / CIPS UK Manufacturing Purchasing Managers’ Index® (PMI®) posted 48.4 in September, up from 47.3 in August but below the flash estimate of 48.5.
Although the rate of contraction in output eased slightly since August, it nonetheless remained substantial overall. Contractions were registered across the consumer, intermediate and investment goods industries. The steepest decline was at intermediate goods producers, which was also the only sub-sector to see its rate of contraction accelerate.
Manufacturers linked lower production to a reduction in new work intakes. The level of new business declined for the fourth month running, albeit to a slightly weaker extent than in August. Companies faced tougher conditions in both domestic and export markets. There were also reports of expected orders being postponed, or cancelled, due to factors such as rising uncertainty, inflationary pressure and the cost-of-living crisis.
September saw new export business contract at the quickest pace since May 2020, with reports of lower demand from the US, the EU and China. Manufacturers faced weak global
market conditions, rising uncertainty, high transportation costs reducing competitiveness and longer lead times leading to cancelled orders.
Manufacturers maintained a positive outlook overall during September. Over 49% forecast that their output would be higher one year from now, as planned investments, new product launches and hopes for a calmer economic backdrop are expected to lead to an influx of new contracts. However, the degree of positive sentiment remained subdued overall, amid concerns about market uncertainty, high inflation, the cost of living crisis and the increasing risk of economic recession in both the domestic and global economies.
September saw a further increase in manufacturing employment, as companies reported success in filling existing vacancies. Others noted that capacity had been raised to continue progress towards reducing backlogs of work. Outstanding business fell for the fifth straight month.
Price indices tracking input costs and output charges both strengthened in September, halting the recent slower inflationary trend at manufacturers. Moreover, rates of increase in both measures remained elevated and well above their respective survey averages.
Higher input costs were generally attributed to raw material shortages, sustained global commodity price inflation, cost pressures at suppliers, rising energy and transportation
costs and exchange rate factors. A wide range of inputs were reported as being up in price, including chemicals, electronics, food stuffs, metals, packaging, plastics and timber. Output charge increases were mainly the result of the pass through of high costs to clients.
After easing through much of the past year, the rate of lengthening in average vendor lead times increased for the first time in five months in September. Longer delivery times reflected raw material shortages, transport delays, insufficient capacity at vendors, disruption at ports and Brexit-related paperwork issues. Purchasing activity was cut back sharply again. However, stocks of both purchases and finished goods rose, mainly due to the recent slump in output and new order volumes.
Commenting on the latest survey results, Rob Dobson, director at S&P Global Market Intelligence, said: “The downturn in UK manufacturing continued at the end of the third quarter, meaning the goods producing sector looks set to have acted as a drag on GDP. Manufacturers have once again cut back production as new order intakes declined for the fourth successive month. Factories are reporting tough market conditions both at home and
abroad. Disappointingly, exports continue to fall despite the more competitive exchange rate.
“There was also less positive news on the price front, with rates of inflation in input costs and selling prices both picking up in September, linked in part to import costs rising due to the weaker pound.
“With existing headwinds from the cost-of-living crisis likely to be exacerbated by the current volatility in financial markets, growing economic uncertainty and further increases in borrowing rates, the industrial sector is likely to remain in the doldrums during the coming quarter to add to deepening recession risks.”
Dr. John Glen, chief economist at the Chartered Institute of Procurement & Supply, said: “Manufacturing businesses continued to feel an autumnal chill in September as declining sales, higher costs and a depressed marketplace pulled the sector down into contraction for a third month in a row.
“Supply chain managers were buying less as customers either failed to place orders or cancelled work in hand. This slowdown was across the board as both domestic and export orders fell, impacted by concerns over transportation difficulties, disruptions in Felixstowe and longer lead times. A shortage of components particularly made the completion of finished goods more difficult.
“It is tough to predict with any certainty that there could be potential improvement in manufacturing production in the last quarter. It is unlikely that supply chain managers
will have hedged against the weaknesses in the pound for instance which will continue to impact on imports and what consumers will see on shelves as the shopping season begins in the coming months.”
