Managing energy price hikes, more than hot air in the Boardroom? By James Pinchbeck, partner at Streets Chartered Accountants
James Pinchbeck, partner at Streets Chartered Accountants, considers the effect of energy price hikes on businesses and what can be done to manage the situation.
Whilst the Spring invariably brings warmer weather and lighter days, this year it is unlikely to help businesses weather the storm of unprecedented price hikes in the cost of energy. According to a recent Policy Voice Survey by the Institute of Directors, over 53% of its members surveyed indicated that the cost of energy was and continues to exert a negative impact on their organisation.
The energy price hikes have come at a time when there seems to have been a perfect storm with Brexit and the pandemic leading to unprecedented disruption to businesses, with rising costs particularly as a result of labour shortages and supply chain issues and in many cases a lockdown loss of revenue. Whilst some may have been able to pass on such cost increases, for many this has not been the case having to absorb them with a loss of margin.
Businesses are no doubt feeling a bit weather beaten with what seems the exponential increases in energy yet another disruption or problem that is adding to the domino effect of challenges faced.
The average household is likely to face an increase in their annual energy bill of around £700 in light of the 54% increase in prices. When it comes to businesses, the annual bills for the average small business will increase from £1,150 to £1,725 and for the average medium sized business from £1,860 to £2,864. Many businesses though, depending on what they do, for example those engaged in manufacturing or processing, are set to see in real terms much larger bills.
Whilst the first approach to dealing with the situation may be to see if you can seek a cheaper supplier, this is unlikely, given the state of the market, to yield results. For those on contract with their energy supplier, whilst their current deal may be favourable, they should prepare for hikes on renewal.
Managing the situation really needs a more strategic approach, starting with an in depth understanding, even audit of your energy consumption. Such information can then be used to determine steps and approaches to reducing consumption and becoming more energy efficient. This may include greater use of more energy efficient equipment, changes in staff attitudes and approaches and working practices through to installing new energy generation technology.
Quick and simple short-term measures, though, may not achieve the results required, not least in terms of achieving security or certainty around the supply and cost of your energy. You may then look to capitalise on the tax reliefs included in the Spring Statement and prior Budgets to support those looking at investing in green technologies and alternative energy sources.
Those looking to install heat pumps, solar panels or wind turbines can benefit from a removal of the 5% VAT levy on the cost of such installations.
The government is introducing targeted business rates exemptions for eligible plant and machinery used in onsite renewable energy generation and storage and a 100% relief for eligible low-carbon heat networks with their own rates bill. It was announced in the Spring Statement that these measures will now take effect from April 2022, a year earlier than previously planned.
Businesses investing or incurring expenditure in energy saving or environmentally beneficial technologies can look to benefit from the enhanced capital allowances. The extension to the temporary increase in the Annual Investment Allowance (AIA) to 31 March 2023 allows 100% tax relief to businesses investing up to £1 million in qualifying expenditure.
Help may also be available from your energy company with many offering schemes or grants to help improve business energy efficiency, which can reduce costs; for example, subsidies on the upfront costs for more energy-efficient equipment.
The cost of investing in new technologies could also be financed, with some funders and banks like Natwest offering ‘Green Loans’ and ‘Green Asset Finance’.
Finally, food for thought, perhaps the increase in energy prices may see more and more of those who have either opted for hybrid or home working return to their employer’s place of work as they seek to manage their domestic bills.
See this column in the May edition of East Midlands Business Link Magazine.
Recognise the exceptional work of property and construction firms at the East Midlands Bricks Awards 2022
With nominations now OPEN for East Midlands Business Link’s annual Bricks Awards, showcase your business, team and projects by submitting an entry for the prestigious event.
Celebrating the region’s property and construction industry, award categories include: most active estate agent, commercial development of the year, responsible business of the year, residential development of the year, developer of the year, deal of the year, architects of the year, excellence in design, sustainable development of the year, contractor of the year, and overall winner.
Winners will be revealed at a glittering awards ceremony on Thursday 15 September, at the Trent Bridge Cricket Ground – an evening also offering an opportunity to establish new connections with property and construction professionals from across the region, and featuring John Forkin MBE DL, Managing Director at award-winning investment promotion agency Marketing Derby, as keynote speaker.
After winning an award at the 2021 event, Allan Joyce Architects said: “We are delighted to have won Architects of the Year at the East Midlands Bricks Awards. It is lovely for the whole team, who always work incredibly hard to create amazing designs, to be recognised in this way. It was wonderful to attend the event in person and to hear about all of the great projects happening in our region and the companies involved in them.”
To submit a business or development for the East Midlands Bricks Awards 2022, please click on a category link below or visit this page.
Thanks to our sponsors:
- Most active estate agent
- Commercial development of the year
- Responsible business of the year
- Residential development of the year
- Developer of the year
- Deal of the year
- Architects of the year
- Excellence in design
- Sustainable development of the year
- Contractor of the year
- Overall winner (this award cannot be entered, the winner will be selected from those nominated)
Book your tickets now
Tickets can now be booked for the awards event – click here to secure yours. The special awards evening and networking event will be held on 15 September 2022 in the Derek Randall Suite at the Trent Bridge County Cricket Club from 4:30pm – 7:30pm. Connect with local decision makers over canapés and complimentary drinks while applauding the outstanding companies and projects in our region. Dress code is standard business attire.
To be held at:
Geldards partner Paul Southby installed as High Sheriff of Nottinghamshire
Geldards’ dispute resolution partner Paul Southby has been installed as the 458th High Sheriff of Nottinghamshire. The role of High Sheriff is a royal appointment for 12 months and is made by the Queen on the recommendation of the Privy Council.
Paul has played an active role in Nottingham and Nottinghamshire’s business community for many years. He recently stood down as chair of Marketing Nottingham but remains on its board, championing inward investment and growth in the local economic area and the development of the visitor economy locally. He is chair of Nottingham Partners, chair of Broadway Cinema and a member of the Nottingham Growth Board.
The origins of the Office of High Sheriff date back to Saxon times when the ‘Shire Reeve’ was responsible for law and order and the collection of taxes due to the Crown and it remains the oldest royal appointment. Supporting the Crown and judiciary are still key components of the role today and the 55 High Sheriffs across England and Wales also lend their support to crime prevention agencies, community groups, charities and voluntary organisations. It is an unpaid, independent and non-political role.
Paul has chosen to support Nottingham Partners’ chosen charity of the year Switch Up, a programme to empower children and young people in Nottingham to break the cycle of offending and reoffending. Switch Up delivers mentoring as well as physical training in Nottingham and soon in Mansfield to help young people reflect on their lives and set positive goals and ambitions for a better future.
A declaration ceremony at which Paul commenced his duties as High Sheriff of Nottinghamshire was held at Broadway in April and was attended by the Lord Lieutenant of Nottinghamshire Sir John Peace, the recorder of Nottingham His Honour Judge Gregory Dickinson QC, the Chief Constable of Nottinghamshire Craig Guildford, Marcellus Baz BEM of Switch Up, local political leaders as well as one very proud VIP, Paul’s Mum!
Paul said: “I am honoured to be taking on this historic role and am looking forward to supporting our City and County over the coming year through it. I am particularly pleased to lend my support to such a deserving and dynamic project as Switch Up which has real impact in improving the lives of young people in Nottinghamshire.
“My main focus will be on supporting local community crime prevention projects and on supporting the work of our county police force and court services. In addition, I intend to do what I can to support our local arts and cultural venues and projects in their recovery post-pandemic.”
Works complete on specialist healthcare facility at Nottingham Trent University
Work on a three-storey, specialist training facility for those in the healthcare sector has now been completed at Nottingham Trent University’s (NTU) Clifton Campus.
The renovation of existing NTU buildings and the completion of a new building will serve as a base for the Institute of Health & Allied Professions, which offers a range of specialist courses such as adult and mental health nursing and paramedic science. The whole facility is focused on equipping the healthcare providers of the future with the knowledge and hands-on skills required for modern healthcare.
Independent property, construction, and infrastructure consultancy, Pick Everard provided architecture, interior design and principal design services from concept to completion, working with main contractor Henry Brothers during the construction period.
Devika Parmar, director of architecture at Pick Everard, said: “We are delighted to have provided services for such an important scheme for the university and its healthcare students.
“We won this project via a competition under the NTU consultancy framework, where we put forward our concept proposals to create a gateway building to the campus that would be visually striking, functional and inspirational for anyone hoping for a career within health services. We’re thrilled that the completed building aligns very closely with our original concept sketch.
“Blending our healthcare and HE knowledge, we designed a building that caters to nursing, paramedical, and other healthcare professionals. It accommodates a variety of clinical simulation spaces that support teaching, assessments, and learning opportunities.
“Underpinning our design approach was a modular grid and a simplicity in design to create flexibility and standardisation in space planning and construction delivery. Working closely with university stakeholders, we meticulously planned the building to meet user requirements and allow for new educational technologies to support the evolving learning demands.”
With flexibility of use in mind, multi-use spaces have the potential to provide students with fully immersive experiences. The new building also provides a welcoming gateway building to the campus with the external façade treatment and quality materials providing aesthetic interest.
One floor of the new development is dedicated to realistic simulated healthcare environments for the training of healthcare students. This includes hospital wards, consultations and counselling rooms and a mock flat for home and emergency care scenarios. Meanwhile, a further two floors provide office and flexible teaching space to accommodate creative learning approaches.
David Shaw, national design director at Pick Everard, said: “The architecture of the new development has been designed for maximum visual impact on arrival to the campus. We wanted to ensure this new addition to an evolving campus would be complimentary but also distinctive both externally and internally.
“The whole consultant team worked closely to deliver this project to ensure the architecture, interior design and engineering has been holistically considered. We were intent on combining the existing building into the project, with the atrium space connecting the refurbished and new accommodations to bring people together in a central collaboration space.
“With such unique requirements for its end use, this development provided room for a number of innovations to be adopted. This included the inclusion of virtual reality training spaces that completely immerse students into situational experiences, which is an incredibly valuable experience for their training.
“The pandemic has reaffirmed the need for training facilities like this to make sure that the healthcare professionals now and tomorrow have the best quality teaching experience possible. We very much look forward to seeing the building fully occupied by students and professionals and seeing them make the most of their new teaching spaces.”
Dr Anne Felton, head of the Institute of Health & Allied Professions at NTU’s School of Social Sciences, said: “We’re incredibly excited that our new teaching centre is now open. The courses we’re providing will directly increase the supply of professional qualified staff into the NHS and related services, as well as providing a dedicated facility to allow greater opportunities for Continuing Professional Development for existing health practitioners within the local area.
“The virtual reality training facilities that will provide students with fully immersive situational experiences are a demonstration of NTU’s commitment to pushing the boundaries of the learning experience, while the audio-visual recording equipment installed within the simulation suites will enable feedback and reflection on students’ performances, creating a truly modern learning experience.”
Ian Taylor, Managing Director at Henry Brothers Midlands, the contractor for the development, said: “It’s great to see this project reach completion and I look forward to seeing it full of students. Despite being a challenging project delivered during difficult times, I’m really pleased with how the whole team came together to deliver a great looking building for the university’s students and staff.”
Revitalising the Heart of Chesterfield plans set to be considered
A multi-million pound project to revitalise Chesterfield town centre – helping the borough thrive for generations to come – is set to be considered by Chesterfield Borough Council.
The £10.28m Revitalising the Heart of Chesterfield scheme aims to transform the look, feel and flow of the town centre – creating a contemporary market town that has better connections between key public spaces, and a more attractive physical environment.
It includes plans for significant improvements to Chesterfield’s historic market grounds, along with proposals that will help maximise the potential of the iconic Crooked Spire as a key attraction for visitors, while also re-imagining town centre spaces for a range of flexible uses including markets, festivals, events, cultural celebrations and community gatherings.
Together with the £17m refurbishment of Stephenson Memorial Hall – which received planning permission in March 2022 – the project is being brought forward thanks to almost £20m which the council secured from the Government’s levelling up fund at the end of last year.
The latest designs for the scheme will be considered by the council’s Cabinet on 17 May and, if approved, the proposals will be subject to a consultation period running from 24 May to 8 July 2022 before a final Master Plan is developed.
Councillor Kate Sarvent, Chesterfield Borough Council’s cabinet member for town centres and visitor economy, said: “Chesterfield has been a flourishing market town for hundreds of years, but like places everywhere, we must address the challenges that the rise in online shopping presents to the future sustainability of our town centre.
“Our town has so much to offer, and we want to harness and build on this to create a town centre that remains vibrant, and relevant in today’s world.
“This project, together with the scheme to refurbish our historic Pomegranate Theatre and Chesterfield Museum, will transform the experience for those visiting the town centre, and help sustain the economic future for the wider borough.”
Levelling up funding will be used to extend the council’s planned regeneration of the market grounds, with extra investment now centred on key public spaces and the connections between them – including Burlington Street, Corporation Street, Rykneld Square, Spire Walk, Market Square and New Square.
It is proposed that new paving, seating, lighting, and street furniture will combine with more greenery, to create better-looking and better-connected spaces which people can enjoy and socialise in.
The Revitalising the Heart of Chesterfield project will complement work to regenerate the Northern Gateway and – at the other side of town – will connect with plans to transform the area around Chesterfield Station.
Key areas of focus are:
- Corporation Street – a tree-lined boulevard with improved paving and lighting will transform this key gateway to the town centre and provide a welcoming environment for visitors to the refurbished theatre and museum.
- Spire Walk – the council will work in partnership with the Church of St Mary and All Saints to create a more welcoming and attractive space in which to enjoy the iconic Crooked Spire.
- Rykneld Square – the proposals seek to make better use of this open public space – providing a better connection with the Crooked Spire, improving the feel and flow of this area.
- Burlington Street – proposed upgrades to paving, planting and lighting will create a more attractive main route – better connecting the Market Place and High Street through to Rykneld Square and Spire Walk.
- New Square and Market Place – a multi-million pound investment will revitalise Chesterfield’s historic market. Plans will create a modern, vibrant town centre experience with additional space alongside traditional markets to host outdoor events and speciality markets. The council is working with local traders to develop a revised market stall and layout design for the main market, and to consider how New Square could be used to complement the town centre offer in future.
- Packers Row – under existing plans, in place before the successful bid for levelling up funding, this area will also undergo improvement, following the completion of similar public realm works at the nearby Elder Way. Plans include improved lighting and paving, with an overhead light canopy to add character. Work here is set to start in spring 2022.
FTT prepares for future expansion with new Derby offices
New operations director for Enrok Construction
Enrok Construction has promoted Chartered construction manager Simon Bennett MCIOB to operations director, after being a driving force within the business over the past 12 months as operations manager.
Since joining the business just over a year ago Simon has played a key role on a number of projects in London and closer to home, including the new £3 million Hartshill Medical Centre, the Ashbourne Sports Pavilion and the Zinc House in Catherine-de-Barnes.
Jordan Mallisch, director at Enrok Construction, says: “This promotion is thoroughly deserved. Simon treats the business as he would his own and shares our vision for the future. We are excited about what we can achieve with Simon as a part of our specialist team of construction experts. What he has supported us to deliver in the last 12 months has been phenomenal and we are looking forward to expanding our delivery of nationwide projects.
“With Simon taking on the overall responsibility of operations, taking a lead in design management and working within the heart of our pre-construction team, I have more time to focus on growing other areas of the business.”
Simon started his career as an estimator before moving into operations, working as a trainee site manager prior to progressing into project and design management. Before joining Enrok he worked at several large construction firms across commercial, industrial and retail projects sectors as well as residential new builds, refurbishment and heritage projects.
Studying at Wolverhampton University alongside his on-the-job experience, Simon became a Chartered construction manager 2020. Commenting on his promotion, Simon said: “This is a fantastic opportunity to work with a young family business doing a brilliant job of making their mark on the construction industry. What I can see from my first 12 months is that the Enrok team is breaking the mould and culture of a typical construction firm – especially around delivering flexibility to meet client needs.”
Simon adds: “I like Enrok’s vision and what they are trying to do in the market. I totally buy into their values and I’m very excited about the part that I can play to contribute to future success.”
This is the second strategic internal promotion it has made in as many months, with the new role created for commercial manager, Charlotte Holyhead announced in April.
Enrok Construction is a privately owned construction company, operating across the UK from its headquarters in Derbyshire. The firm provides developers and clients from the UK and beyond with an all-inclusive construction service.
CECA Midlands announces new chair
The Managing Director of a civil engineering firm has taken on a leading role at an organisation that represents and supports the industry.
Ron Pinfield, MD of Currall, Lewis and Martin Construction, is the new chair of CECA (Civil Engineering Contractors Association) Midlands, a role he will hold for the next two years.
He steps up from vice chair, replacing Nigel Drew, of R&C Williams, who held the position for three years due to the COVID-19 pandemic. Steve Lilly, of Morgan Sindall, is the new vice chair.
Ron takes up the position just a few weeks after CECA Midlands appointed a new director to lead the organisation as Lorraine Gregory joined from the Construction Industry Training Board.
CECA Midlands supports its members – including everything from the biggest civil engineering and construction firms in the region through to smaller, niche contractors – with training, networking and up-to-the-minute information.
The organisation also provides a voice for members to key decision-makers, including Central Government, both directly and through the national CECA office in London.
Ron said: “I have to thank Nigel Drew for his leadership of the organisation over the past three years, which has been a hugely challenging term for him with the arrival of COVID-19 and national lockdowns.
“Despite all of the adversity we’ve faced as an industry – and indeed as a country – Nigel and the team have helped to lay extremely solid foundations as I take up this role.
“The people and the businesses in this sector do incredible work and face up to new challenges every day. We never shy away from them and always come up with solutions to ensure we get the job done.
“That is what we have all had to do in the past couple of years and I am proud of the work CECA Midlands has done to help our members right across the region.
“My ambition for my tenure is to support the delivery of a bigger and dynamic service from CECA, to continue to support industry as it evolves and as it continues to deal with external factors such as current world events.
“The COVID-19 restrictions have gone, but we are now faced with new challenges that affect us all on a day-to-day basis. I want us all to work together as we face up to those challenges head-on.”
Over the past year, CECA Midlands has helped to train 948 delegates – an increase of 202. It has also seen an increase in hours of training delivered from 4,055 in 2020 to 6,752 in 2021; and has developed a soon-to-be-launched Social Value toolkit led by its Foundations Group.
Nigel said: “It has been a rollercoaster, to say the least, and I am proud of the way CECA Midlands – and all of our members – really stepped up and faced the challenges of COVID-19.
“I know as an industry the support of CECA with our regular briefings, up-to-date information and training was invaluable and as a result we have come out of that period stronger as an industry which can adjust to uncertainty and continue to deliver.
“I know Ron will do a fantastic job in continuing to drive forward the organisation alongside our recently appointed director, Lorraine Gregory.
“It has been an honour to hold this role to ensure that we serve civil engineering contractors of all sizes across our region during an unprecedented time – one that none of us will forget or want to go through again.”
Nottingham day nursery sold
Specialist business property adviser, Christie & Co, has sold Kingfisher Day Nursery, Porchester Road in Nottingham, which is part of the successful East Midlands group, Kingfisher Day Nurseries.
Kingfisher Day Nursery, Porchester Road is a well-established day nursery with two successive ‘Good’ Ofsted ratings, capacity for 60 children aged 0 to 5 years, and an effective workforce. The setting occupies a large, detached property located on a significant commuter route into Nottingham, amongst a densely populated residential suburb.
The setting was previously owned by Mrs Helen Allanson who decided to sell to downscale the Kingfisher Day Nurseries group after the successful sale of its Derby setting in December 2020.
Following a confidential sales process, this Kingfisher Day Nursery setting has been sold to Hollies Day Nurseries Ltd, a family-run day nursery group in Nottinghamshire.
Helen Allanson says: “I bought the nursery 17 years ago and have worked hard to transform the building into an open, light-filled space with excellent care and learning opportunities. I intend to continue working with the other three settings for the next few years.”
A spokesperson for Hollies Day Nurseries Ltd says: “Hollies Day Nurseries is excited to take over Kingfisher and welcomes the team, children, and families to the Hollies family. We are looking forward to all the new and exciting opportunities we will offer them all.”
Jassi Sunner, associate director – childcare & education at Christie & Co, who handled the sale, says: “It was great to work with Helen again and I knew that this setting would garner a range of interest from the first time we visited the site. The property is deceptively large, with lots of areas open to reconfiguration and a large outdoor space which will be attractive to children and parents alike.
“After a short marketing campaign, we received a range of enquiries and quickly agreed a sale with the existing group, Hollies Day Nurseries. We wish the Hollies team the best of luck with the new acquisition and have no doubt they will be able to replicate their excellent success and reputation at this site.”
Kingfisher Day Nursery was sold for an undisclosed price.
Cawarden awarded place on Pagabo’s £1.1bn Demolition Framework
Pagabo has announced the awards for its brand-new £1.1 billion demolition and land preparation framework, including Derby firm Cawarden.
The framework has been developed to provide clients with confidence that the demolition organisations they engage with are monitored and audited to ensure they maintain a high level of safety.
All suppliers appointed to the demolition project types are members of the National Federation of Demolition Contractors, providing additional compliance confidence for any client.
The framework, which is Pagabo’s first framework dedicated to demolition services, is now live and will run for four years. The framework contains a total of five value band lots, nine project types and up to 15 geographical regions in lots 1 and 2, and 10 geographical regions in lots 3, 4 and 5.
It provides clients with compliant access to suppliers with expertise in both demolition and land preparation services, which allows a client to be able to both redevelop existing estate stock and develop on brownfield sites.
Jason Stapley, Managing Director at Pagabo, said: “We’ve been overwhelmed by the response we had to the tender process for this framework and are really pleased to be bringing a unique and compliant procurement route to demolition services to the market with such a strong set of companies.
“There is a huge focus on the environmental impact that construction projects can have, and so demolishing old buildings with a negative impact and redeveloping brownfield land is becoming increasingly important for development schemes. But with these approaches come a whole host of challenges that require specialist services.
“This framework will ensure that clients can access those specialist services from the firms best placed to support, providing any scheme with the best start possible before redevelopment – and doing so in the most compliant and efficient manner possible in the market.”
Included in the range of projects available is structure demolition, ground improvement works, bulk earthworks, industrial dismantling, and the demolition of non-traditionally constructed high-rise structures.
The framework will cover a wide range of sectors, including local authorities, NHS and health services, emergency services, highways and infrastructure, public utilities, education and universities, museum and leisure, prisons, housing associations, and central government and associated agencies.
In order to be considered for the framework, providers were required to go through a rigorous, PCR2015 compliant tender process, and prove financial suitability and related experience. As well as this, providers on Pagabo’s frameworks are required to share the company’s passion for social value and innovation.
Cawarden, which won Contractor of the Year at Business Link’s 2021 East Midlands Bricks Awards, was recently appointed demolition contractors for phase two of the £200m Becketwell regeneration scheme, to make way for Derby’s new 3,500 capacity performance venue.
It has started preparing for the structural demolition work on the site of the former Pink Coconut nightclub, NCP car park, Padley House, and Dubrek Studios.
Demolition of the former Debenhams store, which occupies part of the Becketwell site, was also completed by Cawarden, in Summer 2020, followed by the former Central United Reformed Church and properties on Victoria Street in March 2021.
