Oxfordshire Businesses Divided Over Europe

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Oxfordshire Businesses Divided Over Europe in association with Lawyers ahead of the curve OXFORDSHIRE “Until the British government BUSINESSES is prepared to properly invest in the future, DIVIDED which will then encourage British manufacturers to OVER invest, we have a skills gap that needs filling. EUROPE Manufacturing produces real things that make real money and is earned by people at all levels of our community.” Roger Dyer, director at JEL Business Process Improvement pinion among business the economy, employment and prosperity of European colleagues’ skills and that is far, far leaders who responded to the Oxfordshire has been immense. But the lack of from the truth, particularly in manufacturing.” Oxfordshire Business Barometer understanding and responsibility of successive Mark Emery, employment law partner at Withy is divided, reflecting the results governments has led to a vacuum of real skills King, agreed: “It has been recognised for some of UK-wide polls. and future business owners,” Mr Dyer added. time that Oxfordshire along with many other “The European nations, in particular Poland, parts of the UK has an acute skills shortage in Just over one-third (34 per cent) would like to O have taken a different approach and continue to some areas. see a referendum on Europe go ahead in 2017 encourage apprenticeships, provide incentives “Engineering is just one example where there as promised by the current Government while and promote engineering as a good career is a shortfall of engineering apprentices and slightly more (36 per cent) do not think there choice. graduates, currently running at around 50,000 should be a referendum at all. “I spent six years working as an advisor per year. Roger Dyer, director at JEL Business Process for a government funded programme, the “I think businesses need to be encouraged to Improvement in Oxford, is one of them. He Manufacturing Advisory Service, which continues do more to engage with young people in schools believes a referendum would send out the wrong to produce great results. During this time I and colleges to ensure they understand all their message to colleagues and business partners in worked with many small and medium-sized career options, particularly in industry, so that Europe. manufacturers who can only exist by tapping we can start to develop a pipeline of future He explained: “I started my life in engineering into the skills available from eastern European talent. as an apprentice at Rover Ltd in Oxford along nations. “O2i based in Oxford is one example of with 100 others. The government sponsored “Their technical skills are high and their work a scheme which is taking on this challenge. our training —but during my first year this was ethic is great. Until the British government is Some large companies are starting to require stopped for all future years. The next prepared to properly invest in the future, which sub-contractors to offer apprenticeships as a year’s intake was 15 apprentices, the following will then encourage British manufacturers to contractual obligation, but unfortunately this is just four. invest, we have a skills gap that needs filling. still a complicated and cumbersome process.” “In the past, many Oxfordshire-based Manufacturing produces real things that make Mr Emery added: “Until businesses, local engineers went on to join the motor sport real money and is earned by people at all levels authorities, education facilities and central industry or set up businesses of their own. of our community.” government work more closely to find solutions Typically these were highly skilled machinists, Mr Dyer said: “Having a referendum sends out to our skills challenges, we will have to continue toolmakers and designers. Their input to a message that we do not want, nor value our to rely on Europe to plug the gaps.” 30 per cent of Oxfordshire Business Barometer respondents are offering apprenticeships to try and attract the best and brightest people in today’s challenging employment market www.withyking.co.uk • 01865 792300 Issue 16 professional PERSPEctIVE talkING EUROPE aND tHE BUDGEt OVER a pie aND a pint The Business Barometer community was asked to give their views on Europe and the Budget in the most recent survey rom a business continuity and the disproportionate perspective, three-quarters representation of smaller (74 per cent) of Oxfordshire states. Electoral reform is businesses surveyed would like problematic, however, even in to see the UK stay in Europe but a domestic context. Richard: Where the first Fon renegotiated terms which include less past the post system appears business regulation. to be becoming ever more One-fifth (22 per cent) would be happy to stay unfit for purpose against a in, on current terms, but most respondents (59 decline in a two party system. per cent) said they’d like to see less red tape. Gerry: No-one accuses Richard Baxter, corporate law partner at Germany of having ineffective Withy King, and Gerry Jackson, director at administrations under a PR Critchleys, headed down to their local pub to system but Italy is no advert debate the issues over a pie and a pint. for coalition government. Richard: But who do we Europe: Referendum and Participation have more in common with? Richard Baxter, Gerry: Overall I am in favour of being in. A Red Tape partner and referendum can only be healthy and 2017 seems head of the sensible. Gerry: Not sure to what corporate team Richard: Agreed, but on the basis of ‘more extent the regulatory burden common market’ and ‘less common government/ at Withy King’s on business is European and/ Oxford office imposition on national sovereignty,’ although or domestic? Certainly both can we really negotiate new terms? should be cut. Gerry: We may be able to implement change Richard: Tacitus said, ‘the Richard: So I suppose a measure that would but only if we are in. The main problem more laws a state has the more corrupt it is’ but reduce employment costs and potentially appears to be the design of the institutions life has become ever more complex and increase employment would tie back in to the where there are global private interests, issue of EU regulation and employment rights there will always be some requirement generally? In my understanding the UK tends for multinational institutions of some to ‘gold-plate’ EU employment regulations and kind. directives in any event. Gerry: I fear there is an element of Gerry: It always strikes me as something of a exaggeration in some of the tabloid turn-around that there is now tax relief by way press about the worst excesses of EU of no NI on the first slice of unearned income regulation. Clearly a balance should be while the burden on earned income continues to struck, however, and the expense of the increase. institutions kept in check. Richard: Any other vain hopes on the ‘wish list’? Gerry: A reduction in VAT would also stimulate Gerry The forthcoming Budget: Fantasy Chancellor activity in my view but again the Government Jackson, will not agree I fear! director at Richard: We are meeting before the Critchleys Budget although this piece will be Crystal ball gazing published between the Budget and the election. What measures would you Richard: So turning to more probable matters really like to see (regardless of the fact what do you think we may be served up in the they will never happen in this Budget)? Budget? Gerry: I would like to see employers’ Gerry: Difficult to predict what the headline NI reduced. It won’t happen as NIC is grabber may be this time. An increase in the one of the three big money makers threshold for the 40 per cent rate of tax has for the government (along with PAYE been mooted but I fear it would be seen as too income tax and VAT). It would not simply ‘pro the rich’ for this Budget. An increase in the reduce employment costs, it would stop personal allowance to c£12.5k? As ever the devil economic distortion generated by all the will be in the detail and we will have to see methods businesses use to try and avoid how the underlying figures impact the usual employee status. NI is predominantly pre-election ‘bounty’. used to fund pension provision and Richard: Here’s to that Gerry. Another half unemployment benefits. before the duty rises? Issue 16 [email protected] • 01865 335600 The single measure which businesses were most hoping to see in the Chancellor’s Budget is more reliefs around employing people (43 per cent), followed by a reduction in business rates (22 per cent), according to the last Oxfordshire Business Barometer. So did the Chancellor George Osborne deliver or has he left Oxfordshire businesses feeling disappointed? Two professional advisers gave their reactions DID THE CHANCELLOR’S BUDGET DELIVER FOR OXFORDSHIRE BUSINESSES? The accountant’s perspective: what he will do about this in the future. The current level of the AIA means that the vast Tony Hobbs, managing director majority of businesses will be able to obtain full at CRM Oxford tax relief from capital expenditure (other than cars) in the year of purchase. “The Budget contained few surprises and “Based on current rules, there will be a significant cash flow benefit to purchasing little for the tax planning community to capital equipment before December 31, 2015 get excited about. The biggest headlines, than after (subject to further announcements). albeit leaked beforehand, were about the “It is also worth noting that purchasing new abolition of tax returns. equipment just before year end, rather than just “There is little detail in the Budget after, will accelerate the cash flow benefit of the documents, but this is almost certainly really tax relief by a year.
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