Member Article

Election 2015: Views from across the North East

Here at Bdaily we’re continuing to ask North East businesses about what they want and expect from the forthcoming general election. This week we’ve compiled varying views from a range of regional businesses before the big day on Thursday.

Jo Hand, who runs Middlesbrough-based Jo Hand Recruitment, has a few issues she would like to see the Government sort out:

Jo, who set up her business almost a decade ago, has compiled a list of questions she feels really affect the business community.

When are business rates going to be assessed more regularly and more fairly in line with true market conditions?

“We are paying very high business rates for a building worth a lot less rent than it used to be.

· Why under AWR regulations can a temporary worker be entitled to the same pay and conditions as a comparable worker and yet two permanent employees can work alongside each other as comparable workers with no rights to be paid the same fair wage and conditions?

· Is there going to be any support for the extra costs and time we have had to put in to paying temporary workers’ pensions?

“It is an administrative nightmare for employment agencies that have hundreds of temporary workers and has become a huge extra expense to the business costing us over £2,000 per month extra in administration and processing costs – is there ever going to some sort of compensation or tax relief in some way to off-set these huge extra costs?”

On a more general note, Jo has one simple wish for the government-in-waiting – that they keep its promises!

She added: “I would like to mention manifestoes and why they are not mandated in law to ensure what is promised in them actually happens?

“It seems to me that a lot of promises in manifestoes are broken when a party gets into power and yet it is the detail in the manifesto which plays a huge part in getting them into government.”

Growing specialist recruitment firm Jackson Hogg is calling for the next government to place North East manufacturing at the heart of its economic plans. Founder and Director Richard Hogg said:

“Manufacturing must be the top priority for our region. The North East already has fantastic engineering resources and pioneering innovators within its industry clusters. We need a government prepared to recognise and invest in the rich technical potential of our region which can nurture and develop our engineers to create some truly world-class technology exporters.”

Ian Malcolm, managing director of Teesside’s ElringKlinger GB, said:

“Alongside remaining in the EU, my ‘wish list’ for the impending election kicks off with the standardisation of the tax system and making it more beneficial to be in work rather than out of it.

“I’d also like to see a much needed reform within the current education system, with regards to how schools and their performance is measured. By this I mean altering the perception of how apprenticeships are valued internally – and not just for manufacturing and engineering. AS Levels and university degrees aren’t the only routes to securing employment.

“Less tinkering with apprenticeship schemes and more joined up thinking between the providers and the employers whom they seek to support wouldn’t go amiss either. The current system is confusing for everyone so further clarity on the different options available would be welcomed.

“More social, affordable housing is necessary as is a break on rising house prices. There remains considerable disparity across the UK and securing a deposit and indeed a home for many people remains nigh on impossible. When average house prices vs. average wages don’t add up, there is something fundamentally wrong.

“Finally, I fear we are in danger of having ownership of an ineffective defence strategy – how can we as a nation continue with the level of influence we have whilst reducing the armed services?”

Derek Boyd, Director at Tees Valley chartered accountants and business advisers Waltons Clark Whitehill, said:

“The new Government can go a long way towards helping businesses by creating a confidence for firms to plan for the next few years, not just the coming weeks or months. Businesses need to be able to make big decisions and they can only do that if they feel the economic environment in the UK is stable.”

Fran Mulhall, Regional Operations Manager at GFW Letting, property rental specialists with offices in Northumberland and Newcastle upon Tyne, said:

“As the General Election looms, housing has been a key election battleground with all parties promising that they will solve the housing stock shortage through an abundance of new homes across the country. More specifically, Generation Rent has been a key theme where parties are trying to find the right balance between tenants and landlords so that both are adequately protected.

“Labour in particular has been very vocal about this, talking about introducing long-term three year tenancy agreements, abolishing administration fees for tenants and introducing caps on rent so that they cannot rise above inflation rates. There has also been discussion around clamping down on rogue landlords who do not maintain properties to a decent standard by removing the landlord’s right to tax relief, which enables them to offset 10% of their annual rental income against maintenance costs.”

“Although positive in that some of the policies are pro-tenant, there seems to be little thought about safeguarding landlords and whether or not such measures would actually be effective in protecting tenants or in fact simply exacerbate the issues they face.

“For example, rent controls would remove the incentive for landlords to invest which could then lead to a reduction in quality housing causing poorer conditions for tenants who will have much less choice as landlords leave the market altogether. Indeed RLA research released this week revealed that three out of five landlords would leave, or consider leaving, the private rented market if rent caps were introduced.”

“There’s also the possibility that the measures wouldn’t necessarily reduce rental prices but actually increase the likelihood of current rates making up for both the rental freezes during three year tenancies and the potential impact of agents being banned from charging tenant fees. With private rents having increased by an average of 2% across Great Britain in the last 12 months, the North East experiencing a 0.4% rise, I do not think that rent caps, nor three year tenancies, provide the solution needed to improve the lettings industry but merely serve to decrease the size of the available market.

“Policies should be centred around improving the current marketplace through tighter control and regulation of both landlords and agents, to bring the fitness of accommodation standards up and ensure that both landlord and tenants have a fair, transparent service.”

Rod Brasington, Chief Executive of NE Procurement, said:

“Being a procurement consortium for private sector organisations and Registered Social Landlords (RSLs) in the North East, we see first-hand the need for next week’s election to bring some stability to our region’s current economic state.

“As well as procuring materials and labour for our member organisations, we provide employability opportunities for their customers through our various social value streams. Since the last election, we have seen our members’ customers require increased support in finding employment so the creation of more long-term, sustainable jobs is, for us, a key requirement of the next Government.

“Creating further apprenticeship opportunities is a crucial part of this, with such schemes vital in replenishing the skills gap the workforce of today will soon begin to face and helping to reduce the number of young people not currently in education, employment or training.

“Implementing some form of taxation regime that supports those entering or returning to employment later in life is also an essential requirement, in our opinion, for the next Government. Whether it be reducing current taxation earning limits to lower levels or stopping them altogether for salaries below a certain figure, looking at the regime we have in place currently is essential in ensuring we don’t discourage people from getting into employment.

“We also feel it is necessary to create a clear pathway to home ownership with easy and fair access for all, whether that is through renting, home ownership schemes or further development of Government backed schemes like Help to Buy.

“By creating more jobs, individuals in our region can prosper, ultimately creating both regional and national economic growth. Economic growth results in more taxation contributions which, if spent wisely, can significantly the improve the quality, availability and future development of the services we all need yet take for granted – our education system, the NHS and social and welfare support. Let’s hope that the party (or parties) that are voted into power next week recognise the importance these things play on the future of our region, just as we do.”