Stockport Independent Issue 182

NOVEMBER 2024 18 Independent BUSINESS EIGHT sectors have been selected as the focus of the newgovernment’s ‘modern’ industrial strategy which has beenwidely welcomed by business leaders. The aim is to create a “pro-business environ- ment” and play to the UK’s strengths, with the focus on growth driving sectors includ- ing creative industries and financial services. Business secretary Jona- than Reynolds has pledged an end to instability, declaring “our modern Industrial Strat- egy will hardwire stability for investors and give industry the confidence to plan for the next 10 years and beyond.” The key sectors the strat- egy will concentrate on are: advanced manufacturing; clean energy industries, creative industries; defence; digital and technologies; financial services; life sciences and professional and busi- ness services. The government says “ambi- tious and targeted sector plans will be designed in partnership with business, devolved gov- ernments, regions, experts, and other stakeholders, through bespoke arrange- ments tailored to each sector.” It has also been announced that Clare Barclay, chief executive of Microsoft UK, will chair government’s new Industrial Strategy Advi- sory Council. The council is being set up to inform the development of the strategy through its expertise and latest evidence, working with business, trade unions, devolved governments, local leaders and academia. The government is also asking business to help shape the strategy after publishing a green paper to kickstart its delivery earlier this month. Views are being sought from business, international investors, unions and any other interested parties, on the overall vision, approach to growth sectors and the policy levers needed to drive investment. The approach has been widely welcomed. Stephen Phipson, chief executive of Make UK, said: “We live in a world which is massively different to a decade ago and simply leaving the economy and, industrial strategy, to the free market is an ideol- ogy which is long past its sell by date. “This is a welcome first step in addressing the Achilles heel of the economy which has left the UK an outlier among advanced countries. “It sets out a clarity of vision for how the resources of government and, in par- ticular, each department can be convened towards a single objective of long-term growth across all regions.” Dr Roger Barker, director of policy at the Institute of Direc- tors, added: “The government’s green paper is a necessary first step in the development of an industrial strategy which provides amore stable and pre- dictable framework for busi- ness investment. “It is important that time is taken to get it right, so that policy commitments are shielded from short-term political pressures, facilitating the willingness of the private sector to make long-term investment decisions.” Tina McKenzie, policy chair at the Federation of Small Businesses (FSB), said: “This is a refreshingly thoughtful approach for UK industrial policy. If it’s coupled with a clear pro-small business agenda at the Budget, there A NEWLY launched Cheshire business is working to help UK drinks companies reach a global audience. The nation’s drinks exports grew 13 per cent last year, reaching £9.4billion, accord- ing to industry figures. Middlewich-based Craig Johnstone has now launched Cheers Global, a drinks export company with ambi- tions of helping companies reach a worldwide audience. The export agency spe- cialises in working with drinks brands, giving them a presence in the global marketplace. Craig said: “I firmly believe that there is space in the drinks export field for drinks brands to make a big impact around the world. It seemed unfair to me that only huge household names were get- ting opportunities overseas when there are so many less- er-known brands producing top-quality products. “It was this that inspired me to start Cheers Global. I want the world to experience what the UK drinks industry truly has to offer.” The c ompany has announced a hat-trick of new business, securing contracts with GinTing, Adnams, and Buxton Brewery in the space of a few weeks. In addition to export, Cheers Global provides a wide range of support, help- ing with strategy creation, opening newmarkets or oper- ating as a fully outsourced sales solution. The export agency spe- cialises in working with drinks brands, giving them a presence in the global marketplace. VERNON Building Soci- ety has announced chief executive Steve Fletcher will retire in December and be replaced by Dar- ren Ditchburn from Leek Building Society. Steve joined the Stockport mutual in January 2018 and steps down after a successful 43-year career in the financial services industry. During his six-year ten- ure, Steve has overseen the £1.2million modernisation of the Vernon’s branch network, ensured strong business per- formance in turbulent eco- nomic times and helped it celebrate 100 years of serving its members. He said: “I feel the society is in great shape and we have really exciting plans for the next five years. Now is the right time to move aside and allow Darren to drive the organisation forward with the same passion and energy I brought with me seven years ago. “I’m hugely proud of what I’ve achieved at Vernon Build- ing Society, particularly the working environment and culture that’s been developed through engaging and empow- ering colleagues. “I’m delighted to be leav- ing members, colleagues and the community an ambitious and modern organisation which can robustly adapt to the fast-changing exter- nal environment.” Darren, currently deputy chief executive at Leek Build- ing Society, brings 20 years of experience within the sector, having worked his way up at Darlington Building Society. Announcing his appoint- ment Vernon said: “His exten- sive experience gives him a deep understanding of the industry and broad expertise across key areas, including customer service, operations, products and marketing, technology and change, risk management and leadership.” Darren said: “Steve leaves behind a brilliant legacy and I am incredibly proud to be join- ing Vernon Building Society as chief executive at such an exciting time. “I can’t wait to pick up the mantle and continue taking the Vernon forward. In doing so, I will continue to put great importance on what really matters; our members, local communities, colleagues and their futures. “This role brings with it a unique responsibility to make a positive difference in the lives of others. “Building societies enable home ownership and encour- age healthy savings, which are some of the biggest life goals people have. THE number of small and medium-sized firms claiming research and development tax cred- its fell sharply last year, according to new figures. The provisional estimated total number of research and development tax credit claims for the tax year 2022-2023 was 65,690, a fall of 21 per cent, according to HM Rev- enue and Customs (HRMC). And although the total relief support claimed rose by one per cent to £7.5billion, the number of claims dropped by 23 per cent in the small and medium-sized enter- prise scheme. Revealing the figures HMRC said: “The large fall in the number of R&D claims for the tax year ending March 2023, in particular for the SME scheme, follows the implementation of the addi- tional information form (AIF). “This form requires compa- nies to provide additional infor- mation to support an R&D claim and was made manda- tory for all R&D claimants for claims submitted to HMRC from 8th August 2023. “This requirement was brought in alongside other administrative changes to the schemes in order to improve levels of compliance in the R&D reliefs.” The Information and Com- munication, manufacturing, and professional, scientific and technical sectors con- tinued to have the greatest volume of claims, making up 67 per cent of that total and 70 per cent of the amount claimed for the tax year. In the 2022 Autumn State- ment widespread changes to R&D relief rates were announced, taking effect from April 1, 2023 onwards. There were warnings that tens of thousands of innovative small firms would scale back investment if the then Con- servative government pressed ahead with plans to “slash” R&D tax support for SMEs. HMRC says the impact of the changes that were made “are not yet fully reflected in the statistics”. Strategy goes for growth in key sectors will be renewed optimism that the Government can get its growth mission right. “It will be crucial that the developing strategy is respon- sive to the needs of the whole supplier base, particularly where the interests of suppli- ers and their big customers don’t align, and that policy levers are selected that have the reach needed to give a positive business platform for small firms. “Small businesses need a renewed focus on economic growth and it’s encourag- ing that this consultation emphasises the need to drive investment and provide oppor- tunities across our economy and through our international trading relationships. “This is so much more than having an industrial strategy ‘document’. We agree that partnership will be key to creating a nurturing environment for small firms to thrive in. “It’s crucial the strategy works for small firms, as well as big, and addresses the issues that SMEs deal within these sectors and areas - and we look forward to working with government to provide the small business voice as the strategy moves forward. “Small firms are keen to innovate and take on new technology, yet are often held back by a lack of time and funding. We hope that this strategy will place a renewed emphasis on enabling small firms to use new ideas and tech, increasing their adop- tion further, boosting R&D support and increasing the UK’s productivity.” The industrial strategy and growth-driving sector plans will be published alongside the Spending Review in spring 2025. SMEs R&D tax credit claims fall Vernon appoints new chief Society moves: Darren Ditchburn “With the impacts of high inflation, increased cost of liv- ing, and higher interest rates, a key priority remains offer- ing our members the support and guidance they need to achieve their financial goals. “Together, we will build bet- ter futures and our members can be assured that the Ver- non has got them. We’re com- mitted to offering a personal service where they are talked to and understood, no matter what their circumstances.” Global outlook: Craig Johnstone Taking drinks global