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Businesses with track record of “poor delivery” to be banned from public sector procurement contracts

Palmers Solicitors in Essex

Businesses that have undertaken “unethical practices” or have a track record of “poor delivery” will be excluded from bidding for public sector procurement contracts, it has been announced.

The new rules form part of wide-ranging plans designed to make it easier for small and medium-sized enterprises (SMEs) to bid for and win civil contracts.

According to the latest statistics, small businesses accounted for just a third of all public sector contracts won in the UK in 2021.

Under the new regime, public sector procurement contracts will only be offered to businesses that can evidence ethical practices and a track record in delivery.

It means procurers will be given powers to exclude previously poorly performing suppliers – such as those that have not delivered projects on budget or on time.

Suppliers may also be banned if they have undertaken unethical practices – such as a lax approach to safety – in the past, or where there are national security or environmental concerns.

As part of the reforms, contracts may also be awarded to businesses that can provide “social value”.

And to simplify the process for small businesses with fewer resources, a single, centralised public sector procurement platform will be created.

The move comes after leaving the single market earlier this year, allowing the UK Government to scrap “hundreds of complicated and bureaucratic” EU rules.

Commenting on the changes, Chancellor of the Duchy of Lancaster Steve Barclay said: “Leaving the EU gives us the perfect chance to make our own rules for how the government’s purchasing power can be used to promote strong values.

“While doing so we’re increasing transparency and ensuring that procurement remains fair and open.

“These simpler and more flexible rules will also make it easier for small businesses to win work – placing levelling up at its heart.”

Lord Frost, Minister of State at the Cabinet Office, added: “These reforms are just one of the many areas where we are taking advantage of our exit from the EU’s rules to design a procurement system that is better tailored to the UK and our economic needs.

“They will open up new opportunities for our small businesses to win public contracts, boost efficiency and competition, and deliver better results for UK taxpayers.”

For help and advice with related matters, please get in touch with our team today.

Time to get the party started, but bad behaviour could prove costly

Palmers Solicitors in Essex

It’s Christmas time and the party season, coronavirus permitting, is getting into full swing.

That means office parties, workplace dos, call them what you will, can get out of hand with inappropriate behaviour and subsequent problems in the workplace.

This could be even more exaggerated after the last Christmas lockdown with everyone wanting to let their hair down at a party.

So while everyone, employer and workers, want a good time, the temptation to go over the top should be resisted and warned against.

Without wanting to seem like Scrooge, employers may wish to consider reminding staff of their obligations when attending out-of-workplace celebrations.

Mixing the euphoria of a holiday break with alcohol can lead to people over-indulging and misbehaving. The celebratory events are still classified as work-related and so the usual disciplinary rules apply to staff behaviour.

Parties still considered a workplace environment

According to the Advisory, Conciliation and Arbitration Service (Acas) if misconduct happens outside the workplace an employee could face disciplinary action.

For example, where an employee’s behaviour in front of external clients at the work Christmas party reflects badly on the company.

It depends on how serious the employer sees the misconduct and whether it could have a bad effect on the business.

Absence post-party is another issue that might have to be dealt with. Those who turn up hungover or late after a weekday party can be subject to the organisation’s disciplinary procedures.

Some may not turn up at all and while employers may have their suspicions as to the reason for absence, e.g. a hangover, it’s difficult to prove.

According to Acas an employee can legally self-certify any absence for up to seven days. This means they tell their employer they’re not well enough to work and do not need to provide any further medical evidence. Otherwise, it can be considered as unauthorised absence and subject to disciplinary procedures.

Clear policy needed on workplace absence

Action can be taken for multiple periods of unlinked absences, but employers should be careful that there are definitely no health conditions or underlying reasons which have caused the time off.

An absence policy should make clear exactly what’s expected from both the employer and employee if the employee needs to take time off work and Acas guidance includes:

  • How to report absences, including who the employee should contact and when
  • When the employee needs to get a sick note
  • When return to work discussions will be held and with who
  • How and when to keep in touch
  • How the employer keeps track of absence and if they set any review or ‘trigger’ points
  • Whether the employer provides occupational health or an employee assistance programme (EAP) and when this starts
  • How much the employee will be paid and for how long.

For help and advice on employment matters, contact our expert team.

Make tax savings using a personal pension plan to acquire commercial property

Palmers Solicitors in Essex

Acquiring commercial property through a pension scheme may be something very new for potential landlords.

But using a Self-Invested Personal Pension (SIPP) is one of the most tax-efficient investments an individual can make, according to independent pension administrator and professional trustee company Options UK.

While many might question buying commercial property during the current market and the aftermath of lockdown restrictions, the SIPP delivers tax savings by allowing landlords to become their own commercial property tenants.

Will I be able to make tax savings?

If they use the property themselves, they pay rent to the SIPP, which becomes an allowable business expense, reducing tax liability on profits.

According to Options, the SIPP owner receives rental income from the property tax-free and incurs no CGT liability when the property is eventually sold.

The rent paid by the business then accumulates tax-free within the SIPP, thereby creating income that could be used to invest elsewhere.

It’s a win-win as both the SIPP holder and the business benefit from enhanced stability, with a stable landlord who has no intention of selling, and a stable tenant who can be relied upon to pay the rent.

Anyone who has a Flexible Retirement Plan can invest in the SIPP. It can be quite complex so consulting your financial adviser would be wise.

Is this a good time for property investment?

According to Lisa Bardell, Business Partnership Manager at Options UK, there has been a steady flow of SIPP-related property purchases over the past 12 months.

She said: “There have been several encouraging signs within the commercial property sector since the start of the year.

 “For example, we are receiving more enquires, and the transaction prices are less inflated than were previously, which enables easier negotiation.”

Ms Bardell added: “HMRC rules governing property SIPPs are more involved than those designed to accommodate different forms of securities.

“It is vital, therefore, that existing or prospective owners of property SIPPs are au fait with the rules, which is why we believe there is significant demand among business owners for a clear explanation of their property options.”

For help and advice with commercial property matters, please get in touch with our expert team today.

One in five adults have “no intention” to share wealth equally among children

Palmers Solicitors in Essex

Almost one in five adults have no plans to share their wealth equally among children, a major study has revealed.

The research, published by investment manager Charles Stanley, highlights the importance of estate planning to ensure that your wishes are carried out exactly as prescribed.

According to the report, around two thirds (68 per cent) of adults plan to divide their assets evenly. The vast majority of these suggest that the whole of their estate will be divided by the number of children they have.

However, not all families have plans to evenly distribute their estate. The survey reveals that nearly one in five (16 per cent) parents have “no intention to split their assets equally amongst children”, while the same proportion (16 per cent) have yet to decide.

In addition, just over one in 10 (13 per cent) would consider any financial support their children have already received and would divide their remaining estate accordingly to balance out the overall amounts.

In the same line of thinking, some respondents said they would take into account each child’s personal circumstances and leave less of their estate to financially comfortable heirs.

The study suggests that most adults have well-thought-out plans in mind when it comes to distributing their wealth, but recent research suggests that those who actually have a Will are in the minority.

As of October 2021, less than half (47 per cent) of adults had written a Will, meaning one in two Brits risk dying intestate. This increases to six in 10 (59 per cent) when only including women.

Where there is no valid Will, the rules of intestacy state that only the next of kin – such as a spouse, a civil partner, or children – can inherit the deceased person’s estate, meaning a cohabiting partner, a charity, or a life-long friend would not be automatically entitled to anything.

For help and advice with related matters, please get in touch with our estate planning team today.

“Impact” tech startups attract record investment in 2021, figures reveal

Palmers Solicitors in Essex

Start-ups that support sustainable causes raised a record £2 billion in 2021, a major study has revealed.

The research, published by Dealroom for the UK’s Digital Economy Council, highlights the success of ‘impact’ firms, defined as those founded to “build solutions to the United Nations’ Sustainable Development Goals”.

The 17 goals include “good health and wellbeing”, “quality education”, “clean water and sanitization”, “affordable and clean energy”, “decent work and economic growth”, “industry, innovation and infrastructure”, “sustainable cities and communities”, and “climate action”.

According to the analysis, investment in the impact sector has increased by some 127 per cent in the UK since 2018. And in 2021 alone, impact startups raised a record £2 billion, up from £1.7 billion the year before.

The report also reveals that there are now 900 impact startups and scale-ups in the UK, with 12 of those – Arrival, Octopus Energy, Babylon, ITM Power, Ceres Power Holdings, Vertical Aerospace, Compass Pathways, Depop, Ovo Energy, Britishvolt, Tractable, and BenevolentAI – worth more than $1 billion (£750 million) in value.

Within the impact space, climate tech is by far the biggest industry, accounting for 65 per cent of the deals recorded in 2021. Climate tech also recorded the biggest deals by value, which includes the £438 million investment round in green energy provider Octopus Energy, and the £130 million Series B round in electric car subscription platform ONTO.

Commenting on the study, Luisa Alemany, associate professor of management practice in strategy and entrepreneurship at London Business School’s Institute of Entrepreneurship and Private Capital, said: “Impact investing has come a long way since its start in the late 90s when it was considered more of a philanthropic endeavour until investors realised these investments could deliver not only a social benefit but also a financial return.

“At the heart of this is technology, as the way to scale social impact is by applying science and technology. From biotech to nanotech, cleantech, computer science and medicine, technology is not only improving our lives but finding solutions to these pressing problems that only entrepreneurs, with the right source of financing, can dare to solve.”

Digital Secretary Nadine Dorries added: “From world-class AI discovering new treatments for Covid-19 to green energy solutions paving the way to a net-zero future, UK tech is transforming the world for the better.”

For help and advice with related matters, please get in touch with our team today.

The workplace has become more secure over the last decade, says survey

Palmers Solicitors in Essex

Major job security fears sparked largely by the pandemic, may well have been unfounded, according to a new report.

According to a survey from the Chartered Institute of Personnel and Development (CIPD), over the past decade, unemployment, long-term unemployment, and inactivity have all decreased.

It adds that although pockets of insecurity exist, work is actually becoming more secure on most measures, with fewer people working part-time involuntarily and working variable hours. Low pay and variable pay have also declined.

The report’s analysis says that by eliminating certain types of contracts from the labour market, choice and job quality should be at the heart of discussions about different ways of working.

A labour market with more choice will include diverse ways of working, including some forms of work that are less secure, but which suit some people’s preferences.

Non-permanent employment suits many people with around 20 per cent of the workforce in this situation. That figure has barely changed over the last 20 years and evidence shows that most people choose this because it suits their lives or working preferences.

There are still areas of insecurity in the permanent workforce as a whole, where 7.8 per cent of people say they would like to work more hours, and 2.7 per cent are working part-time involuntarily because they were not able to find a full-time role.

Strengthen enforcement measures

The report says the best way to protect people from insecure work that does not suit their needs is to strengthen enforcement of existing employment rights across the labour market and help employers to manage atypical working arrangements responsibly.

The CIPD says that while the UK’s labour market does provide flexibility for employers and protections for individuals, it is undermined by inadequate enforcement.

It is calling for a strengthening of employment rights as part of the forthcoming establishment of a new single enforcement body (SEB). This should include a much stronger focus on supporting employer compliance and raising employment standards.

CIPD key recommendations

  • Increase the number of labour market enforcement inspectors to one per 10,000 workers.
  • The UK Government should take full responsibility for compensating employees and taking action against employers for non-payment of employment tribunal awards.
  • Double the Acas budget to boost its ability to advise small employers and individuals on people management, workplace conflict and employment rights.
  • Allocate SEB inspectors on a regional as well as a sectoral basis to ensure local employers and their staff are made fully aware of relevant employment legislation and rights and are supported to deliver them effectively.
  • Ensure the SEB is adequately resourced and has the power to make decisions on a range of areas.

For help and advice on employment matters, contact our expert team.