Budget hopes from Chesterfield businesses
The town’s first Round Table, organised by Destination Chesterfield in partnership with the Derbyshire Times, took place last week ahead of Chancellor George Osborne’s budget on the 19th March.
Bringing together key figures from Chesterfield’s business community, and chaired by Chesterfield College principal Trevor Clay, the Round Table was designed to provoke debate and highlight issues which everyone can work together to change for the benefit of the town. And it didn’t disappoint.
The panel included:
Chris Hobson– Head of Policy and Representation at Derbyshire and Nottinghamshire Chamber of Commerce
Andrew McDaid – Partner, Mitchells Accountants
Sarah Rowland– Director, BRM Solicitors
Trevor Clay – Principal,ChesterfieldCollege
Anne Batty – Director, Paperclip Admin
Steve Allen – Business Development Manager, Henry Boot Construction
Peter Swallow – Director, Bosterstone PLC and Chair of DestinationChesterfield
Stuart Downham – Operations Director, Casa Hotel
Richard Thompson, Director, Central Technologies
With warnings from George Osborne that the economic plan is working but the job is not done and the budget would leave many of us dealing with hard truths, the Round Table speculated on what they wanted George Osborne to deliver in his budget.
Unanimously the panel agreed that government policies need to have a more regional focus.
Peter Swallow: “Most government policies seem to be based on London. It needs to differentiate between what’s happing within the M25 and outside it – it’s a very different picture. I maintain we need a Bureau de Change at a Watford Gap.”
Chris Hobson: “We would like the Treasury put its money where its mouth is and balance the economy away from the South East.”
The panel were united in their belief that energy costs need to be reduced in order to stimulate growth.
Steve Allen: “Overheads and wages are static, yet the cost of materials and energy is going up.”
Pete Swallow: “The country either needs an energy policy or to depoliticise the energy sector.”
With 40% of the panel currently recruiting staff, a large proportion of the Round Table discussion focussed on the creation of jobs in the area through schools and businesses working more closely.
The panel also addressed a number of issues they felt were key to stimulating and growing Chesterfield’s economy, namely Business Rates, hospitality VAT and encouraging entrepreneurs.
Reduction in hospitality VAT
Although there are many encouraging signs that the economy is starting to recover, the hospitality industry is a good marker. To further stimulate the economy the group advocated a reduction in hospitality VAT, to generate overseas interest as well as stimulate staycations, ultimately creating jobs in the town’s hospitality sector.
Stuart Downham: “We are already starting to see an uplift in average spend; simple things like people ordering Champagne rather than Cava or canapés on arrival –these are all early signs that the hospitality industry inChesterfieldis on the up.”
Chris Hobson: “The hospitality industry tends to lag behind in recovery as people feel it in their pockets and therefore cut back on luxury.”
Stuart Downham: “The UK is one of the lowest ranking countries in world tourism, yet it generates 9% of our GDP. A reduction in hospitality VAT would probably be cost neutral for the government because of the additional tourism it would bring into the country. WithChesterfieldbeing located on the edge of the Peak District, and a popular holiday destination, this can only benefit Chesterfield’s hospitality industry.”
Reviewing Business Rates
With two developers around the table, the talk soon turned to business rates, specifically how business rates are killing high street stores who are already battling internet retailers, as well as stifling the construction instruction industry.
With the last review of business rates being in 1998, some companies are now paying more rates than rent. Richard Thompson cited his company as an example of this and agreed there needed to be a full review.
Peter Swallow: “Retailers are paying high street rates based on footfall, where as internet retailers are dispatching from a warehouse which attracts very different, much lower rates. Fundamentally this has got to change.”
Chris Hobson: “Although small concessions were given to retailers in the autumn statement, they didn’t go far enough and it’s a campaign DNCC will keep pushing.”
Steve Allen: “Being faced with the expense of empty rates makes it difficult to speculatively build which decreases job opportunities.”
Creating jobs
This subject provoked much debate around the table, with the consensus being that the government needed to stimulate youth employment, making it easier for companies to employ under 21s.
Chris Hobson: “DNCC is calling for the extension of the employment grant from 16 – 17. We want there to be bridging money until 2017 when employers’ National Insurance contributions for under 21s are abolished. This would encourage companies to employ now.”
Peter Swallow: “Creating 1000 extra jobs is difficult unless the education system reassesses how it values vocational qualifications. Schools are marked down for creating vocational courses and as a result don’t offer or encourage them.”
Steve Allen: “There is a huge skills shortage in construction. It is not promoted as a career in schools, which results in a lack of job candidates.”
Peter Swallow: “Engineering and construction are seen as dirty jobs. We need to get kids into these environments to show them this isn’t the case.”
Anne Batty: “Often schools are not giving kids the option to do vocational qualifications.”
Chris Hobson: “DNCC welcomed Nick Clegg’s statement that we need to get rid of snobbery around vocational education.”
Peter Swallow: “To encourage more young people to enter the trades, apprenticeships should be renamed ‘vocational degrees’, to overcome any perceived stigma.”
Trevor Clay: “Apprenticeships used to be craft based. College delivers 35 apprenticeships across a range of sectors. It’s now a generic brand. Does this mean apprenticeships have been devalued?”
Chris Hobson: “Apprenticeships need to be seen as a real option as a route into a profession.”
Peter Swallow: “The government should allocate funds to developing relationships between schools and businesses.”
Anne Batty: “Beyond encouraging young people to choose vocational courses, the money could be invested in developing youngsters’ social skills. Social skills are things we take for granted, but more and more young people are entering the job market with no work ethic and poor social skills which severely limits their job opportunities. These are every bit as important as qualifications in securing a job.”
Stuart Downham: “We need a more formal approach for businesses and schools to engage.”
Trevor Clay: “Increasing engagement with schools is something the Local Enterprise Partnership (LEP) is working to do.”
Peter Swallow: “We need additional incentives and ongoing continuation of existing incentives to encourage employers to take on vocational apprentices to plug the skills gap. Fundamentally the messaging on apprenticeships needs to be changed. It’s not just about the money but the benefits they bring to the economy.”
Encourage Entrepreneurs
Chesterfieldis a vibrant town with a thriving SME economy. It is this economy model that has secured its future during the economic downturn due to the very factChesterfield doesn’t have a single large public or private employer. The wealth of SMEs in the town has enable dChesterfield to thrive rather than decline.
Peter Swallow: “Chesterfieldis a great place to have a business. It’s cost effective, flexible and affordable, and fantastically well located and offers a great standard of living.”
Anne Batty: “We need to continue putting Chesterfield on the map for investors and entrepreneurs. We have a strong business community that is good at supporting each other.”
Peter Swallow: “Having a Broadband system that works would encourage more business start-ups and investors to come to the region. Currently we have the worst in Europe. This would do more for the region than HS2.
Richard Thompson: “Connectivity is always possible but at what price? Central government needs to incentivise it. We need it now. The way we will use it will change and the connectivity we eventually gain could be outdated before we start to use it.”
Andrew McDaid: “We should encourage entrepreneurship and business start-ups. SMEs are the foundation of Chesterfield. Entrepreneurship should be encouraged a schools in lessons about cash management for example.”
Anne Batty: “Lots of business start-ups come from a forced situation, i.e. redundancy, and there is little or no support for them. That’s why I love the foundation of the Chesterfield Champions’ and how we are here to help each other.”
Steve Allen: “There needs to be more emphasis on local procurement, specifically local labour and suppliers. Currently we just pay lip service to it. We should also make it easier for companies to take on self-employed people on a permanent basis in order to give them the experience and self-confidence to start their own business properly – a sort of try before you buy approach. Currently companies we must tax self-employed people at source if they only work for one company.”
Peter Swallow: “Most entrepreneurs turn to banks for finance and advice because they don’t know where else to go. The Government should get more information into banks.”
Andrew McDaid: “I am pleased to get the sense that banks are getting back on track now and going back to basics. They are providing help rather than selling and bank managers and getting to know their clients. Now that banks have the fundamentals back in place, this should stimulate growth.”
Richard Thompson: “Banks are penalising small companies. My experience is that they are not interested in lending unless directors sign a personal guarantee for a direct debit scheme; something which we have had place in years. This is only been done to SMEs and the government needs to intervene.”
Chris Hobson: “There are more alternatives for finance but the processes small businesses have to go through to access finance are horrendous. Banks lost money on commercial property investment in London and overseas and we are paying for that.”
Sarah Rowland: “There is more to starting a business than financial advice. Legal advice is of equal importance and we can help with form filling for grant applications.”
Peter Swallow: “There is low awareness of the LEP, particularly in smaller companies and how they go about accessing grants.”
Andrew McDaid: “For whatever reason there aren’t many applicants for Regional Growth Fund. It’s usually only 6 – 8 weeks from the original submission to it being approved and the cash going out.”
Peter Swallow: “The form filling associated with many grant applications is too rigid. A lot of good ideas don’t fit. We should give the mandate back to entrepreneurs.”
Chris Hobson: “When you’re filling in grant applications, keep it simple. Don’t respond by creating five new initiatives. And make sure you deliver it.”
Peter Swallow: “The government needs to free up the funds and cut red tape, professional fees and admin for accessing money, this puts people off applying.”
Source:Destination Chesterfield
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