Small firms sound alarm as £60bn EU import checks close in
With only one month to go until the first working day on which full import controls for EU goods will apply, a UK business group is flagging a lack of capacity among small businesses to handle new paperwork.
Currently, full customs declarations for EU goods can be deferred at the point of arrival. From this coming 1 January, however, paperwork will have to be handled up front, and notice of food, drink and products of animal origin imports given in advance.
With fewer than five weeks left to prepare for the changes, new Federation of Small Businesses (FSB) research shows that only one in four (25%) small importers who are impacted by the changes, and aware of them, are ready for them to take effect.
One in eight (16%) of the importers surveyed by the group say they are unable to prepare for the introduction of checks in the current climate, and a third (33%) say they were unaware of their introduction prior to the FSB study, but will be affected by them.
Latest figures from the ONS show total imports to the UK from the EU rose 2.2% to £57.7bn in Q3 2021. The UK’s total trade deficit widened to -£39.9 billion over the same period.
FSB Development Manager, Natalie Gasson-McKinley, said: “Given the turmoil of the past 18 months, new concerns about the spread of Covid, and this being the busiest time of year for many, it’s understandable that few firms are fully prepared for the introduction of import controls from January.
“What we’re saying to firms is: there’s still time to act. Speak to suppliers to ensure you have all you need to make declarations, consider alternative providers if that looks like an efficient way forward, and think about different transportation routes.
“Stockpiling will naturally be a temptation for those fortunate enough to have the funds for it, but there is already a squeeze on warehousing space – if everyone ramps up storage, that squeeze will only tighten.
“We’re urging the government to do all it can to raise awareness, with our support, through every channel available to it in a climate where a lot of small firms simply don’t have the cash or bandwidth to manage this new red tape.
“Too little support was made possible by the first iteration of the SME Brexit Support Fund due to narrow eligibility criteria and application timeframes. Policymakers should learn lessons from that process and launch a new fund, with the same aim of helping existing international businesses with growing admin, and inspiring new ones, but with a truly global focus.
“We’ve recently had the very welcome launch of the Export Support Service. What we need now, as these stark figures demonstrate, is an Import Support Service to empower firms with the guidance and information they require to successfully navigate global trade as it evolves.”
Triumph for Sandiacre local as she’s awarded prestigious National Young Business Woman of the Year title
The founder and director of architectural design firm The Practical Planning Company has been crowned Young Business Woman of the Year at this year’s National Business Women’s Awards – and Silver Overall Winner.
Jodie Heginbotham, from Sandiacre, Derbyshire, triumphed at the national awards ceremony, which took place at the Hilton Wembley Hotel in London. The awards programme was made up of 21 categories, celebrating the most successful business women from across the UK and judged by a national panel of judges.
“Although I was very much looking forward to the awards ceremony,” comments Jodie, “I saw it just as a chance to celebrate being shortlisted, enjoy some glitz and glamour, and meet some incredible businesswomen. I never expected to actually win. Our business story began right at the end of 2019 and as such a new – and small – company, I could never have hoped to be in such a position.
“So, to be crowned Young Business Woman of the Year was beyond my expectations, and such an honour. And to then be named the Silver Overall Winner, when so many successful women from larger, more established companies were in the running, I was blown away.”
Jodie’s recent successes are the latest in a triumphant year for the firm, which also saw it shortlisted for the Architectural Practice of the Year award at the National Building and Construction Awards 2021.
Jodie hopes that her accomplishment will show other industrious and hardworking, career-conscious parents that a traditional career path is not their only option, particularly if it doesn’t allow the flexibility they need.
“I never planned to walk away from the security of employment but I’m so glad I took the plunge. I wanted to create a business I could be proud of; something that represented everything I’d been looking for, with authenticity and quality along with flexibility and professional satisfaction.
“There have been so many obstacles in the past couple of years – the pandemic, the trials and tribulations of running a small business, working in the male-dominated construction industry, and then trying to balance it all as a working mum. But it’s all been worth it and I’m so proud that I’ve now got these two awards on display in my home.”
Awards Director, Damian Cummins, says: “The National Business Women’s Awards 2021 has shown the very best of Britain when it comes to women in our workplaces. The calibre of finalists in 2021 was higher than ever before and after a challenging year for business as a nation we can celebrate those women who are literally driving UK plc forward.”
East Midlands businesses fear HMRC clamp down on IR35 compliance
With HMRC’s ‘light touch’ approach to IR35 compliance enforcement set to end in April 2022, new research from Grant Thornton UK LLP’s latest Business Outlook Tracker finds that the East Midlands mid-market is struggling to comply with the changes.
The survey found that a quarter (24%) of mid-market businesses in the East Midlands are not confident in their business’s compliance with IR35.
From 6 April 2021, for large and medium sized businesses, the responsibility for determining whether a contractor is deemed an employee for tax purposes shifted to the end-user of their services. Broadly, this means that organisations have new obligations regarding their population of contractors within scope of the updated off-payroll working rules (IR35) and could ultimately be liable for PAYE and National Insurance Contributions (NICs) on this population.
However, HMRC has confirmed that it will take a light touch approach to penalties until April 2022.
With only a few months to go before the ‘light touch’ approach ends, less than three quarters of respondents in the East Midlands (64%) were found to be confident in their business’s compliance. With only 28% responding that they were ‘very confident’.
Commenting on the results, Dave Hillan, partner and practice leader at Grant Thornton UK LLP in the Midlands, said: “Many firms in the East Midlands have been dealing with a roller coaster of changes, upheavals and challenges over the past 18 months. When combined with the fact that HMRC has been lenient on IR35 compliance penalties for nearly a year, it’s possible that many may have overlooked this issue.
“While the new IR35 rules can be difficult to navigate, this won’t be seen as a good excuse for any non-compliance, especially given that the previous 12-month delay to the reforms should have been sufficient time to prepare. For any business that isn’t sure if it’s in line with the new rules, now is the critical time to address this concern before HMRC begins its clamp down.
“Any businesses that are seen as being deliberately non-compliant will not only face significant consequences but it will also not prevent any uncollected PAYE and NICs from being due. Firms using agencies to source temporary resource should be aware that a non-compliant approach could already mean that they are on the hook for PAYE and NICs – plus interest – not collected by the agency.”
HR consultancy expands health & safety provision with acquisition
A HR services consultancy has made its largest acquisition to date, while strengthening its position in the Health & Safety sector.
HR Solutions has significantly expanded its reach in the field by bringing Essential Safety on board – a health & safety and fire safety consultancy, with a team of 12.
Essential Safety is an established Health & Safety consultancy with offices in Corby and London. Its team of experienced and IOSH qualified consultants support and advise clients in a broad range of industries and sectors, including construction, education, manufacturing, warehousing and distribution.
Greg Guilford, CEO of HR Solutions, said: “Essential Safety has an excellent reputation in the Health and Safety sector due to the expert knowledge of its consultants and its dedication to clients.
“As a result of this, the company has secured larger corporate clients, as well as working with SMEs. The company’s 25 years’ experience and its expertise compliments HR Solutions’ offering, having recently launched its Health and Safety division in 2020.
“This is a great opportunity to work with a like-minded business that has service delivery and client satisfaction at the heart of what they do.”
The acquisition is HR Solutions’ fifth over the past six years. In 2015 the company merged with Business Human Resources Solutions, followed by the acquisition of HR Services (UK) in 2017, the addition of Crispin Rhodes in 2020 and Cherington HR earlier this year.
Greg added: “Whilst HR Solutions continues to grow organically, we are excited by the opportunity of acquiring similar business to be able to offer a wider range of services to businesses.”
As a result of joining HR Solutions, Essential Safety’s clients will benefit from a wider service offering and access to additional experienced staff with extensive skills.
Dean Howells, Managing Director at Essential Safety, added: “We are delighted to be joining the HR Solutions team, who we have trusted for HR advice and support for the last 10 years. Our clients will now have access to a broader range of services and support from a wider team of consultants and advisors.
“Helping our clients succeed safely has always been at the heart of everything we do at Essential Safety, and that will not change. This new alliance will add further investment and impetus into our business, and our consultants and advisors will benefit from increased support as they continue to deliver the high levels of service our clients expect.”
With a head office in Kettering, Northamptonshire, HR Solutions operates in a variety of industries and has a client list that ranges from small care agencies to multi-national technology firms.
Frasers Group rings up nearly £1bn funding in largest retail deal this year
Frasers Group has refinanced nearly £1bn in bank facilities as it seeks to continue its Elevation Programme.
It will be able to access credit facilities and a term loan totalling £930m to support its growth ambitions. Frasers Group is on an ambitious elevation strategy and continues to invest significantly across its portfolio of retail fascias and digital platforms.
Jointly led by HSBC UK and backed by several other lenders, the deal refinances £913.5m of existing loan facilities and adds £16.5m in new funding. It is the largest bank funding package to be secured in the British retail sector this year.
Chris Wootton, Chief Financial Officer at Frasers Group, said: “Partners like HSBC UK, will allow us to continue with our commitment to the UK high street and retail sector – investing significantly into the future with our on-going elevation strategy that fuels our long-term growth.”
Richard Bacon, relationship director at HSBC UK, added: “The retail sector is undergoing immense change and it is crucial for retailers to have the capability and flexibility to evolve. Frasers Group has a clear plan in place and this substantial package is evidence of our support for, and confidence in, its future direction.”
Work to transform heart of Grimsby given boost
Plans to transform the heart of Grimsby have been given a boost with the appointment of a specialist development management organisation to lead the project.
Queensberry, a nationally recognised regeneration specialist has been brought on board to drive the “Future High Streets” town centre project forward which will create a mixed use cinema and leisure space and a new market in the centre of Grimsby.
Queensberry will coordinate the whole project, from overseeing the work to progressing planning applications, developing the business plans, through to the construction of the new facilities.
Queensberry has been working in partnership with local authority clients for over 10 years. They are currently working on a number of urban regeneration schemes that are transforming places including Barnsley, Sheffield, Doncaster, Nuneaton as well as several in London.
Cllr Callum Procter, Cabinet member for Economic Growth at North East Lincolnshire Council, said: “I’m delighted to have Queensberry on board to help us really push on with our plans to transform the heart of the town and build on the great work that’s already been done at St James’ Square and Garth Lane.”
Charlotte Dunlop, Asset Manager at Capreon, the asset managers for Freshney Place, said: “With their vision, knowledge, and extensive credentials, we are confident Queensberry will drive the successful delivery of this exciting town centre project.”
Paul Sargent, CEO, Queensberry, said: “We can’t wait to get started on the scheme with Freshney Place and the Council. We have a huge amount of experience of working with local authorities and understand the challenges that lay ahead. We recognise that Grimsby has its own personality and we will work closely with the Council and the community to restore civic pride and deliver a sustainable long term future for the town.”
This decision means that the Council, in partnership with town centre regeneration specialist, Queensberry, will now progress to the design and consultation phase, with plans to consult local residents and businesses to be announced in the coming weeks.
Earlier this year, the government awarded £17.3 million for the Future High Streets Fund bid from the Council and the owners of Freshney Place Shopping Centre.
The project will provide a leisure-led scheme for the centre of Grimsby town which incorporates a new market and food hall alongside new leisure and retail units and a new cinema.
The overall aim of the project is to provide a new space for people to enjoy the town centre’s day and evening economy.
The scheme will be delivered through the removal of some of the 1960s and 1970s buildings and retail space at the western end of Freshney Place.
New student scheme set for Nottingham at former Marks and Spencer’s Homeware store
Conditional permission has been granted for a new student accommodation scheme in Nottingham, at 22-26 Lister Gate.
Hunter UK Retail Limited Partnership are behind the plans which will transform the former Marks and Spencer’s Homeware store, which has been vacant since March
2020.
The proposals include the partial change of use and conversion of the building, partial demolition at ground to second floors, and 5/6 storey new build accommodation at the rear.
156 bed spaces will be provided in 22 cluster flats and 56 self-contained studios.
Two new retail units will also be created.
Council to cut 50-60 jobs as it looks to save £12.1m
Next week, Derby City Council’s Cabinet will meet to discuss the development of the Council Plan and Mid Term Financial Strategy, including proposals to cut 50-60 job posts.
Cabinet members will review the progress of developing the Council Plan and Council’s Medium Term Financial Strategy (MTFS) for the 3-year period 2022/23 to 2024/25. The plan builds on the Council’s Recovery Plan, refocusing outcomes to ensure better partnership working for the city, improved working with residents and communities and Derby City Council’s ambitions for the future. To support this approach a new Council Vision is proposed of:
Ambitious for Derby – Working with the city, For the city
The Council’s priorities for the future will be focused around four partnership themes. The proposed partnership themes include:
- Green Derby – Making a positive impact on our environment
- Vibrant Derby – A reimagined City Centre with culture at its heart
- Growth Derby – Creating a modern smart city with jobs and skills for the future
- Resilient Derby – Working with communities to reduce poverty and inequalities
Chilled food company snaps up frozen specialist
Wrights Food Group has been sold to The Compleat Food Group.
The Compleat Food Group was formed through the merger of Nottingham-based Addo Food Group and Winterbotham Darby in January 2021 in order to become the UK’s no. 1 chilled prepared food company.
The acquisition of Wrights, a specialist in frozen foods, complements The Compleat Food Group’s existing chilled portfolio, significantly expands its customer base and provides it with much greater penetration into the UK’s foodservice markets.
Wrights Food Group was founded in 1926 as a local family-owned pie business. Under the leadership of Peter Wright, it has grown into one of the UK’s leading manufacturers of frozen savoury pastry, sweet bakery and ready meals to foodservice and retail channels across the UK. It also operates a chain of branded bakery stores in the Northwest.
Oghma Partners acted as exclusive financial advisor to the shareholder of Wrights Food Group.
Mark Lynch, partner at Oghma Partners, said: “We were thrilled to be able to work with Peter and the Wrights management team on the sale of the business to The Compleat Food Group. It was important to Peter to pass the ownership of his business to a purchaser that would build on the legacy which the Wrights family worked so hard to create.”
Lincolnshire-based premium foods provider secures £250,000 growth funding
A food & drink producer based across Lincolnshire has secured £250,000 to upgrade its production facilities, create jobs and service its growing customer base.
Wild Jacks Ltd secured the finance from Midlands Engine Investment Fund (MEIF), provided by The FSE Group Debt Finance Fund and backed by the Recovery Loan Scheme (RLS). The MEIF funding will help to upgrade the company’s production facilities and create eight new jobs in the next year.
The investment will also allow the company to increase capacity in its existing events catering facilities, refurbish the premises and service new national contracts.
Founded in 2020 by Stuart and Joanna Hancock, Wild Jacks sources high-quality foods, bakery and meat products from Lincolnshire and operates multiple business lines, working with local producers, arable and meat farmers to sustainably provide these products to a range of customers.
Wild Jacks is home to a number of brands including Odling’s Butchers of Navenby, Welbourne’s Wine & Deli, Welbourne’s Bakery and their most recent acquisition, JH Starbuck (Baker & Caterer).
Stuart Hancock, founder of Wild Jacks, said: “Lincolnshire has a proud history of agriculture and thanks to this investment, we will be able to accelerate our growth plans to offer high-quality, sustainable and local produce to a national range of customers. It has been great working alongside Leo and The FSE Group’s Midlands team, the funding arrives at a really important time for the business as we scale up our operations to service our growing customer numbers.”
Leo Magee, investment manager at The FSE Group, which manages the MEIF Debt Finance Fund, adds: “We were impressed by Wild Jacks’ track record of rapid growth. The team boast senior personnel with significant experience in the industry. Additionally, the company has an impressive suite of business lines with a focus on providing the best locally sourced products. We are delighted to be able to offer this funding and look forward to working with Stuart, Joanna and the team to ensure they reach their goals for growth.”
Sarah Louise Fairburn, chair of the Greater Lincolnshire Local Enterprise Partnership’s Food Board, said: “This is great news for an exciting new Lincolnshire business, and this funding underlines the importance of the food sector to Greater Lincolnshire. Our area is home to some outstanding food producers, from fish to free range pork and from cheese to chocolate. It’s no wonder that a business which champions Lincolnshire produce has become so successful so quickly. The new UK Food Valley will raise the profile of our food sector even higher and make it easier for innovative businesses like Wild Jacks to thrive.”
