Returning confidence boosts interest in R & D
Claims for R & D tax relief by SMEs in the region have risen sharply, reflecting improved confidence and a wider take-up of the credits by firms in sectors beyond manufacturing and technology such as food and construction.
Government figures show the number of claims for R & D tax relief in the East of England region rose by more than 26 per centin 2012-13 compared to the previous year. In total, there were 1,305 claims for R&D tax credits by SMEs in the region, worth £75m in relief in 2012-13. This was up from 1,035 claims in 2011-12 worth £58m in tax relief.
Large companies in the region made 245 claims for R&D tax credits, up 20 per cent on 2011-12, although the value of relief claimed by large companies fell from £94m to £85m. Nationally, the total number of claims rose by 26 per cent.
Melanie Reed, tax partner at Baker Tilly in Bury St Edmunds, said: “There has been a significant rise in the numbers of SMEs in the East of England claiming this type of tax relief which reflects the national trend. This is due in part to changes in the rules regarding SME expenditure which came into force from 1 April 2012, but it is also a sign of a returning confidence in the region’s economy and an increased awareness of this type of tax relief among SMEs.”
“Many businesses across the region are realising that R&D tax credits aren’t just for the manufacturing or tech sectors, and we have certainly seen a number of food businesses and construction companies in East Anglia taking advantage of these schemes.’
Surge in industrial building
The region is at the forefront of an upturn in industrial construction thanks partly to some major developments in Peterborough, according to figures from Barbour ABI. They show show that the value of industrial construction contracts across the East of England totalled more than £180 million in July. This accounts for 44.4 per cent of the overall contracts awarded for the sector UK-wide, an increase of 40.2 per cent on July 2013. The survey also shows that the East accounted for 11 per cent of the total value of construction contracts awarded across all sectors in July, behind London and the South East with 15 per cent each. Michael Dall, lead economist at Barbour ABI, said: “Industrial construction activity in July was at its highest since Christmas, and the East of England was right at the forefront of this growth. This is largely down to the award of a £140 million contract for the 240-acre Gateway Park Distribution Park in Peterborough, which is set to bring more than 8,000 jobs to the local area.”
Cambridge golf course goes into liquidation
A nine-hole golf course near Cambridge has been put into liquidation with the loss of six jobs. Creative Leisure (Milton) Ltd, trading as Milton Park Golf Club, on the outskirts of the city, went into liquidation on 8 August 2014, with Mary Currie-Smith and John Kelly, of lists Begbies Traynor, appointed as liquidators. Mary Currie-Smith said: “Despite a significant level of investment from the directors and shareholders, the company was unable to meet its liabilities as and when they fell due. As a consequence, the company entered liquidation, which has resulted in six employees being made redundant." She added that the business had failed due to a decline in the number of both casual golfers and members as a result of competition from other golf courses in the local area, in addition to the economic climate. The site will be marketed for sale once liquidators have completed their assessments. Interested parties requesting further information should contact Louise Everill, manager at Begbies Traynor, on 01954 213 420.
See Profile of Begbies Traynor
East west rail link gathers steam
A rail line from Oxford to Cambridge could deliver substantial economic benefits and support significant growth in a rail ‘corridor’, says a report from the East West Rail Consortium. It concludes a study by Atkins Consultants as first step for making a business case for the central section of the proposed line. Network Rail is now looking at potential routes to identify a preferred route by early 2015 with the hope that the scheme can be included in 2019-24 government rail investment plans. Re-instating the former ‘varsity line’ between Cambridge and Oxford would mean trains could run from East Anglia to Oxfordshire (and beyond) with connections to national mainline services.
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Rising pay
Average manufacturing pay settlements during February-July were 2.6 per cent, up from 2.4 per cent in the period last year, according to Engineering Employers Federation figures. Jim Davison, East of England region director at EEF, said: “Manufacturing pay continues to run ahead of the wider economy with signs that the pressure on household budgets, at least for those in industry, is starting to unwind.”
Stansted-Dussldorf air service launched
A new route from London Stansted to Dusseldorf has been launched by Germanwings. The airline is operating the new route as twice-daily: morning and evening flights on weekdays with one flight on Saturdays and Sundays. Andrew Harrison, Stansted Airport’s managing director said he was sure the new service "...will be very popular for both business and leisure travel.”
Travel outlet opens
Travel and cruise agency, Fred. Olsen Travel is set to open a new travel outlet at Cambridge International Airport, its first in-airport outlet and its ninth in East Anglia. It will be located in the check-in area of the airport’s newly refurbished terminal and serve leisure and business passengers.
Schools urged to ‘act like businesses’
Schools around Basildon need to act more like businesses to raise extra cash ahead of a forecast squeeze in government funding, says Emily Brown (right), head of the education team in the town at Essex law firm Birkett Long. She is urging schools to look at their options and think about setting up trading subsidiaries to raise extra cash to protect their future and sixth forms. Many schools have converted to academy status with the freedom of running their own budgets. “A lot of schools we talk to are looking ahead to what kind of money they are going to need in the next few years and have realised that the money from central government just won’t be there,” she said. Separately, two staff at Birkett Long have been promoted. Lorraine Younger, from the Colchester office, has been appointed to quality and administration executive and her colleague Cheryl Burness is now executive secretary.
Third sector initiative
Ipswich Building Society is running an executive level volunteering session for local third sector businesses. It will see IBS board members, including chief executive Paul Winter, spend time with a local social enterprise, community interest group or charity to offer support. This could include ‘strategic brainstorming’ on fundraising, marketing or business strategy, or on the ground volunteering. Paul Winter said:” There are some incredible third sector businesses in our area that just need a little extra support; our executive team volunteering is a way for the society to use its skills for a wider boost. From business strategy to on the ground volunteering we’re game for whatever is needed.”
Green award for Cambridge college
Downing College Cambridge has been given a gold award for its outstanding performance as a green tourism site for conference business. During the accreditation assessment grading, the college was scored across ten different categories - from the use of environmentally-friendly paper, cleaning products and toiletries to the provision of gardens with trees and plants to encourage wildlife and insects. The assessor highlighted a number of areas of excellence including the Howard Theatre as a sustainable conference venue. Also commended was the adoption of low energy lighting throughout the accommodation. Eleanor Pratt, green tourism assessor, said: “Downing College has done exceptionally well to enter the green tourism business scheme with the prestigious gold award and the conference team should be congratulated for engaging so fully with sustainability issues on the site.”
Jacqui Cressey, conference services manager, added: “We are thrilled to have achieved a Gold Award for our green performance to date and are looking forward to strengthening our commitment going forward.”
Photo (l to r): Toby Ware, deputy head gardener; Dale Curry, head gardener; Jacqui Cressey, conference services manager and Dick Taplin, junior bursar.
