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External finance among more than 20 barriers preventing action on net zero, study reveals

Palmers Solicitors in Essex

External finance is among more than 20 barriers preventing businesses from acting on net zero, a major study has revealed.

The research, published by the British Business Bank (BBB), shows that small and medium-sized enterprises (SMEs) are prepared to reduce their carbon footprint, but face major challenges in doing so.

According to the latest statistics, small businesses account for almost a third of all current UK greenhouse gas emissions – including household, industry and Government – in the UK.

But major hurdles, including costs and information on how to reach net zero, are preventing firms from implementing a carbon neutral strategy.

The analysis of 1,200 SMEs identified 21 barriers preventing action, with general costs acting as the greatest hurdle for over a third (35 per cent) of small businesses. This was followed by feasibility, such as lack of control due to tenancy agreements or lack of appropriate technology, cited by 32 per cent of firms, upfront capital costs, cited by 21 per cent, and lack of information (12 per cent).

Furthermore, just over half (57 per cent) of enterprises have “heard a lot, or a fair amount” about the Government’s commitment to reach net zero emissions by 2050, while only a similar number (56 per cent) understand the implications of climate change for their business.

And just one in 10 (11 per cent) firms have accessed external finance, such as a loan or equity finance, to support their net zero strategy.

As a result, less than one in four (24 per cent) firms have implemented “comprehensive decarbonisation strategies, capabilities and actions”.

Commenting on the report, Catherine Lewis La Torre, CEO at the BBB, said: “Action to mitigate the impacts of climate change is at tipping point, and it is crucial for smaller business owners to feel empowered, informed and supported in making the relevant steps to decarbonising their business if the UK is going to meet its wider net zero objectives by 2050.

“More than half of smaller businesses say they’re not ready to prioritise decarbonisation, so clearly more needs to be done.

“The Bank continues to strive to bridge the knowledge gap and work with its partners to improve smaller businesses’ access to the right finance to help them transition to net zero. We hope this report encourages business owners to review their business model, consider where changes can be made and to make the necessary investments to secure a sustainable future for their businesses.”

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

Remote Right to Work checks extended until 2022

Palmers Solicitors in Essex

Employers interviewing potential new staff are reminded that a scheme that has allowed them to perform Right to Work (RTW) checks virtually, has been extended.

As the pandemic took hold in March 2020, the Government made temporary changes that were due to end on 31 August, but have now been extended until 5 April 2022. These include:

  • Checks can still be carried out over video calls
  • Job applicants and existing workers can send scanned documents or a photo of documents for checks using email or a mobile app, rather than sending originals
  • Employers should use the Home Office Employer Checking Service if a prospective or existing employee cannot provide any of the accepted documents

The Home Office decided to defer the date following positive feedback about the ability to conduct checks remotely.

Checks continue to be necessary and you must continue to check the prescribed documents set out in right to work checks: an employer’s guide or use the Home Office right to work online service. It remains an offence to knowingly employ anyone who does not have the right to work in the UK.

If  you are carrying out a temporary adjusted check, you must:

  • Ask the worker to submit a scanned copy or a photo of their original documents via email or using a mobile app
  • Arrange a video call with the worker – ask them to hold up the original documents to the camera and check them against the digital copy of the documents, record the date you made the check and mark it as “adjusted check undertaken on [insert date] due to COVID-19”
  • If the worker has a current Biometric Residence Permit or Biometric Residence Card or has been granted status under the EU Settlement Scheme or the points-based immigration system you can use the online right to work checking service while doing a video call – the applicant must give you permission to view their details.

Online right to work service

The Home Office right to work online service gives you a defence against a civil penalty. You don’t need to see or check the individual’s documents, as right-to-work information is provided in real-time directly from Home Office systems.

Employers cannot insist individuals use this service or discriminate against those who choose to use their documents to prove their right to work.

Retrospective checks

You do not need to carry out retrospective checks on those who had a COVID-19 adjusted check between 30 March 2020 and 5 April 2022 (inclusive).

You are protected against a civil penalty if the check you have undertaken during this period was done correctly, or as set out in the COVID-19 adjusted checks guidance.

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

Tens of millions to clear derelict land for housing

Palmers Solicitors in Essex

Property developers look set to benefit from a decision to allocate tens of millions of pounds to allow housebuilding on underused and derelict land.

The Government says it is part of its levelling up agenda and the move will regenerate local areas and help people onto the property ladder.

The Department for Levelling Up, Housing and Communities (DLUHC) announced that almost £58 million from the £75 million Brownfield Land Release Fund (BLRF) has been allocated to 53 councils.

The plan would see the demolition of unsightly, derelict buildings and allow the transformation of local communities, according to DLUHC.

The funding could also support up to 17,000 jobs across the housing and construction sector and the wider economy.

Cabinet Office Minister, Lord Agnew said: “This support being provided to local authorities is another clear demonstration of this government’s commitment to levelling up the country.

“The latest projects to benefit from this support, through Brownfield Land Release funding, will not only help unlock under-used public sector sites for homes but also help deliver jobs and save taxpayers’ money.”

Councillor James Jamieson, Local Government Association Chairman, said: “One Public Estate and Brownfield Land Release funding play a crucial role in supporting the recovery from the COVID-19 crisis, and supporting councils to transform their assets, create better services, and release land for much-needed new homes and regeneration across the country.”

The Government says it wants to see 300,000 new homes a year by the mid-2020s to put home ownership within reach for more people across the country.

Government figures show that in 2019/20, the total housing stock in England increased by around 244,000 homes. This is around one per cent higher than the year before – and the amount of new homes supplied annually has been growing for several years – but is still lower than the estimated need.

The £57.8 million from the £75 million Brownfield Land Release Fund (BLRF) is being allocated, of which £25 million was made available to self and custom build projects.

The BLRF is delivered by the One Public Estate programme which is a collaboration between DLUHC, the Local Government Association and the Cabinet Office.

As a well-established national programme, OPE works with 72 existing local public sector partnerships, covering combined authority, sub-regional and local authority areas.    

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

Gender gap “no more obvious” than in estate planning, ONS study reveals

Palmers Solicitors in Essex

Women are less likely to be included in estate planning than men, resulting in potentially poorer decisions in later life, a major study has revealed.

The research, published by the Office for National Statistics (ONS) in collaboration with financial solutions provider Tower Street Finance, suggests that the gender gap is “no more obvious than in estate planning”.

According to the report, more than one in two (53 per cent) women who plan to leave their estate to loved ones have “no financial planning in place” to ensure the plan is executed effectively.

This is compared to two in five (41 per cent) men who say the same.

Alarmingly, more than a third (37 per cent) of women also said they did not have any knowledge of Inheritance Tax (IHT) and how it is paid, compared to one in four (25 per cent) men.

IHT is paid at a rate of 40 per cent on the value of an estate above the IHT threshold (currently £325,000, £650,000 if combined with a spouse or civil partner, or £1 million when combined and passing down the family home).

The gender gap worries study author Dicky Davies, as women have higher life expectancies than men, and are therefore more likely to be impacted by estate planning and Inheritance Tax.

“We know there is a lack of understanding about IHT – what the thresholds are, who has to pay, when payment is due and what happens if you can’t afford to pay Inheritance Tax,” he said.

“And the reality is that it’s more likely to be an issue for women who, because of higher life expectancies, have greater wealth to leave behind and therefore are more likely to have to pay IHT.”

The ONS analysis is not the first to reveal a gender gap in later life planning. In September, the Manchester Institute for Collaborative Research on Ageing (MICRA) found that men within couples have substantially more private pension wealth than women.

Married men have the most, with those aged 45–54 having a median pension wealth of about £86,000 (compared with £40,000 for women), while those aged 55–64 have £185,000 (compared with £55,800 for women).

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

Review to uncover ways capital raising can be simplified for small, large, and listed companies

Palmers Solicitors in Essex

A major review will investigate ways the UK can be made an “attractive destination” for Initial Public Offerings (IPOs) and “optimise” the capital raising process for small and large companies, it has been announced.

The UK Secondary Capital Raising Review – chaired by industry expert Mark Austin – forms part of Lord Hill’s UK Listings Review, published in November 2020.

The report reveals that the second step will analyse whether rule changes and smarter use of technology could make capital raising more efficient for firms already listed on UK markets, such as the FTSE 100.

According to the latest statistics, UK businesses raised some £30 billion of equity finance in 2020.

But Lord Hill’s UK Listings Review found that most of these firms chose to raise funds through private placings with a small group of institutions. This reduces the time and cost of fundraising but excludes existing shareholders and dilutes their stakes in the company.

The study also revealed that public companies are deterred from using mechanisms like rights issues because they involve “greater costs, time and uncertainty”.

Commenting on the review, Chancellor Rishi Sunak said: “Our plans to boost UK markets go beyond attracting the world’s most successful companies to list here. We want to make sure companies who already tap our world-leading capital markets can raise finance efficiently and include their current shareholders in the process. I am pleased that Mark has agreed to spearhead this effort and take forward this important recommendation from Lord Hill’s UK Listing Review.”

Mr Austin added: “Improving the efficiency of secondary capital raisings by listed companies is an important element of making the UK an even more attractive place for businesses to list. I am delighted to accept the Chancellor’s request for me to lead the Review. I am keen to receive views from a broad range of interested parties, which is why we are launching the Review with the Call for Evidence.”

The UK Secondary Capital Raising Review will be published in spring 2022.

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