When we, as a group of Council Leaders, negotiated the original devolution deal we wanted to ensure we secured the right to go further on devolved powers.

This bespoke deal is custom made for our communities and while we remain ambitious for the region we are pleased this gives more power to focus on local priorities.

Today’s announcement will help us to do more and is rightful recognition that we are better placed than those in Whitehall to identify the priorities for our region.

This is on top of the original devolution deal for the North East, which we have already made great progress with delivering local priorities even before the mayor is elected in May. We are already bringing investment forward for a range of schemes that benefit the whole region.

The additional trailblazer deal recognises the region’s unique geography, with a mixture of urban, rural, and coastal communities.

Highlights include:

• A £25m investment to support the development of the Riverside Sunderland site along with creation of a ‘Growth Zone’ to attract investment.
• Investment of £10m to accelerate progress on a Health Innovation Zone – including the Health Innovation Neighbourhood and Forth Yards sites in Newcastle.
• Support for the region’s rural and coastal economy – including a new Taskforce to support biodiversity and the natural environment.
• £58m of funding brought forward to cover the maintenance and renewal of the Tyne and Wear Metro system for the next two years.
• A single funding pot for housing and regeneration, more influence over affordable housing with a commitment to a future single government department style financial settlement.
• Creation of a formal rail board with the government and rail industry to jointly develop plans for improvements to rail infrastructure and services in the region.
• Support for plans to develop the expansion of the “Pop” card onto local rail services.
• More local responsibility for developing and delivering adult education, skills and careers advice and working in partnership with Department for Work and Pensions to improve how people get into work.
• More control over delivering affordable homes for residents, in partnership with Homes England.
• A North East Strategic Energy Board which will coordinate energy supply and demand and promote growth in the offshore wind sector.
• Development of a blueprint to support growth of the creative industries, heritage, sport and the visitor economy, and new opportunities to attract additional investment.
• The Government will also work to address barriers to growth at the region’s ports and airport – the Green Superport – including on policy areas like grid infrastructure capacity and developing an industry-leading skills pipeline.

You can read the full deal here.

We look forward to continuing to work together with the new mayor to implement the ambitious devolution deals which we have negotiated.

Working together with you as important partners we are committed to championing the full potential of our region.

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The Darlington-based business, which is the UK’s largest independent manufacturer of bespoke static pressure washers and produces all of its machines at its North East headquarters, has invested heavily in the research and development of its MAC Zero Emission hot pressure washer range. This expansion aligns with the company’s mission to contribute significantly to the transition to a sustainable and environmentally friendly future.

The business has responded to the growing demand by increasing its headcount in its marketing and production departments by eight. This strategic move is designed to support the accelerated growth of the Zero Emission Pressure Washer range throughout the UK and Europe.

The expansion comes as the business also invests heavily in becoming ISO 14001 and ISO 45001 certified; it is already ISO 9001:2015 and CE/UKCA certified, which highlights its commitment to quality management.

Peter Gibson, the Member of Parliament for Darlington, was welcomed to MAC International by its managing director, Simon Ruck, to see the business’s new carbon neutral range, which now accounts for 40% of its total static hot pressure washer sales, a huge increase over previous years.

Simon Ruck, managing director at MAC International, said: “Throughout the last four years we have invested heavily in the research and development of our MAC Zero Emission hot pressure washer range. This has allowed us to generate the technology and change that will exactly replicate the performance of diesel machines, providing a no-excuse reason to change.

“We have built a new manufacturing line in our Darlington factory. This has culminated in recruiting a new team of engineers and manufacturing staff to design and build our products here in the North East.

“We are confident that the growth of our business in the next 10 years will be centred around our world class emission free pressure washer range, as companies look for green, diesel free alternatives.”

Peter Gibson, Member of Parliament for Darlington, said: “MAC International is a shining example of the investment that is going on and the manufacturing happening here in Darlington.

“It is important that we have companies creating emission-free carbon neutral products because as we go through the energy transition, consumers want to be addressing those issues.

“MAC International are really going places and it’s fantastic to see this investment and technology being delivered and manufactured right here in Darlington.”

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Deals included:

• Sale of Care Homes for Adults with Disabilities to Swanton Care backed by Apposite Capital in January 2023.
• Acquisition of Thorncliffe Care by Hark Group in February 2023
• Sale of Cambridge Research Biochemicals to Biosynth AG backed by KKR in April 2023
• Acquisition of Thorncliffe Home Care by Hark Group in May 2023
• Acquisition of GT Vision by Northumbrian Medical Supplies in May 2023

Despite well publicised external factors derailing confidence in many areas of healthcare, Lee Humble, Corporate Finance Partner at Azets has noted an array of factors that can determine the viability and profitability of transacting in the sector.

Lee Humble commented:

“2022 was a more challenging year for the Healthcare sector as a whole: with many operators recovering from staffing shortages and the retraction of legacy COVID related funding. Activity in the sector is driven by the presence of consistent recurring revenue underpinning strong margins, with well rated providers benefiting from interest from a multitude of buyers and investors.”

“Together with a generally fragmented market we are tipping the sector to be a prime candidate for consolidation – fuelled by increasing demand from a number of consolidators, many of whom benefit from Private Equity support. This has made our flurry of activity in 2023 even more satisfying with more to come in the approaching weeks.”

Mike Williams, Associate Director at Azets, added:

“We have been delighted to advise so many clients across the many facets of healthcare in achieving their desired outcomes recently ranging from maximising value to cementing legacy and protecting cultures. We are confident this activity will continue into the coming periods with a strong pipeline of corporate and private equity backed transactions in the sector being a key consideration as we continue to grow the Azets team.”

The Azets Corporate Finance team achieved a record year in 2022 following a period of high value transactions, a record that is expected to be surpassed again in 2023 after an exceptional first five months.

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https://emcon.show/exhibitor-packages/

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However, balancing the books in the wake of the pandemic will be essential, given forecasted borrowing of £355bn over the current financial year, a peacetime record. The Treasury has announced the launch of tax consultations on 23 March, which are expected to pave the way for significant tax rises to pay for the enormous cost of the pandemic in future budgets. But, for now, a rise in corporation tax alongside a series of frozen thresholds will raise some revenue. Here, we look at the main announcements and what they mean for investors.

Covid-19 support
The furlough scheme has been extended until the end of September, despite the strength of the UK’s vaccination programme and roadmap for releasing lockdown. The Job Retention Scheme was originally due to end on 30 April, but its extension is aimed at supporting businesses while they get back on their feet.

Around 4.7m people have recently been under furlough, according to the latest government figures, with about 68% of the people receiving support under the Job Retention Scheme working in the travel and hospitality sectors. With business closures and industries hit hard by a series of lockdowns over the past year, it was inevitable that further income support would be needed. Sunak also confirmed a fourth grant under the self-employed income support scheme, and a fifth from May. Each of these grants will pay up 80% of three months’ average trading profits, capped at £7,500. Those whose turnover has fallen by less than 30%
will be eligible for a reduced grant of 30%.

Business rates relief for the retail, hospitality and leisure sectors will be extended until the end of June. There will also be an extension to the VAT cut for hospitality and tourism sectors, until September. A Recovery Loans Scheme will offer loans up to £10m, with the government providing lenders with an 80% guarantee. In addition, around £5bn in cash grants were announced for businesses hit hard by the pandemic, including
shops, pubs, restaurants and personal care services such as hairdressers. The government estimates that around 700,000 businesses will be eligible for up to £18,000 each. Meanwhile, the temporary cash bonus
for businesses taking on an apprentice will increase to £3,000, to boost jobs.

The economy
The UK economy began 2021 with another lockdown, but the rollout of vaccines and a roadmap for relaxing restrictions is expected to prompt a rebound in activity. While the UK economy has suffered its worst downturn for more than 300 years, much of the bad news is hopefully now in the past. The Office for Budget Responsibility (OBR) predicts the fastest economic growth in 2021 for almost 50 years, as the country emerges from lockdown. It forecasts the economy will return to its pre-pandemic peak by mid-2022, earlier than previously thought, with growth at 4% this year, and 7.3% in 2022, up from November’s 7% forecast. However, In the budget, chancellor Rishi Sunak used the government’s “fiscal firepower” to further support businesses amid the Covid-19 pandemic, while laying the groundwork for future tax rises to repair the country’s finances. Budget 2021 3 March 2021 the OBR still expects the economy to be 3% smaller than its pre-pandemic forecast in five years’ time. Meanwhile, the government’s support for jobs is working,
with unemployment expected to peak at 6.5%, compared to the November forecast of 7.5%. Ultimately, the country is not facing a fiscal crisis and can continue to borrow while interest rates remain low, despite
the high levels of borrowing.

Corporation tax
Sunak announced a significant rise in the rate at which company profits are taxed, saying it was ‘fair and necessary’ for businesses to contribute to the UK’s recovery, given the huge support packages provided
during the pandemic. Corporation tax will rise from 19% to 25% from April 2023, an increase that is expected to raise £12bn per annum. Even after this rise, the UK’s corporation tax will be among the lowest in the G7. President Joe Biden is raising this tax from 21% to 28% in the United States. However, companies with profits of up to £50,000 will continue to pay corporation tax at the current rate of 19%. Meanwhile, a taper above £50,000 will be introduced, with Sunak stating that only 10% of businesses will pay the new, higher rate of tax.  There will also be an extension to the loss carry back for businesses to help otherwise-viable UK businesses which have been pushed into a loss-making position. The trading loss carry-back rule will be temporarily extended from the existing one year to three years. This will be available for both incorporated and unincorporated businesses for up to £2m of losses in each of 2020-21 and 2021-22. The chancellor made a series of announcements that could affect you when the new 2021/22 tax year begins on 6 April. Here, we consider some of the most significant.

Personal allowances
The chancellor froze the personal tax allowance and higher-rate tax thresholds, saying that although these will rise in April 2021 they will then be frozen until 2026. The personal allowance, which is the amount you can earn each year before you start paying income tax, will rise to £12,570 from £12,500 in April. The higher-rate tax threshold will rise from £50,000 to £50,270. By freezing these thresholds, instead of increasing
them every year during this parliament, this measure is expected to raise around £6bn per annum. Some have called the freezing of allowances a ‘stealth tax’, or a way of dipping into people’s pockets without them realising amid the rising cost of living – although the chancellor was at pains to be open about this in his speech to parliament. The National Insurance Contribution (NIC) threshold will rise to £9,568 for the 2021/22 tax year before being frozen.

Pension lifetime allowance
The chancellor has also chosen to freeze the pension lifetime allowance, which is the total amount you can save into your pension before incurring tax charges. Recently, the lifetime allowance has increased each tax year in line with inflation. But from the 2021/22 tax year, it will remain at £1,073,100 until 2026. Money withdrawn as a lump sum above this level will incur a 55% tax charge, while money withdrawn as income will
incur a 25% charge, with the remainder then subject to income tax at the individual’s marginal rate. The freezing of this allowance will see more people paying additional tax on their pension benefits.

Capital gains tax
Business and property, and investors with unrealised capital gains may face a tax hit in future budgets. For now, however, the rate of capital gains tax (CGT) has also been frozen until 2026.
The chancellor announced a review of CGT last year, with the conclusion being that the current rules created ‘odd incentives’, with CGT taxed at a lower rate than income. CGT is currently charged at 10% and 20% for most taxable assets, or 18% and 28% for properties that are not a main home. At present, the annual tax-free allowance for capital gains stands at £12,300, but there are plenty of reports speculating that this may change in the future.

Stamp duty
The stamp duty holiday has been extended until the end of September to keep the property market buoyant as the country emerges from lockdown. Originally part of a series of measures to boost the
economy amid the pandemic, the stamp duty threshold was increased to £500,000. Homebuyers pay 5% stamp duty on the property’s value from £500,001 to £925,000, 10% on £925,001 to £1.5m, and 12% above £1.5m. The holiday enables people to save up to £15,000 on their stamp duty bill. Unsurprisingly, the chancellor has kicked the tax-raising can down the road. For those expecting the worst, they are relieved to only have had their allowances frozen. That story could be quite different next year.

I don’t envy the chancellor at all. He’s
stuck between helping the economy
recover and raising taxes to fill the deficit
black hole (and prompting a Tory
rebellion if he raises them too soon).
This was a well-judged budget, careful
not to trample on any nascent recovery

Guy Foster, Chief Strategist

However, the extension will see a tapering of support from June, gradually reducing the nil-rate band. From July until September, the first £250,000 of a property purchase will be free from tax, falling to the original £125,000 thereafter.

Mortgage guarantee scheme
A new mortgage guarantee scheme aims to help prospective buyers get onto the property ladder with a deposit of just 5%. Available on properties worth up to £600,000, the government will offer lenders the guarantee
they require to provide a mortgage covering the remaining 95%. The scheme echoes the Help to Buy mortgage guarantee scheme, which closed at the end of 2016.

Other points of note
UK infrastructure bank
The chancellor gave further details of the UK’s infrastructure bank, which will be supported by £12bn of initial capital and £10bn in government guarantees. The bank will fund £40bn of infrastructure projects that support the government’s ‘levelling up’ agenda. The bank will offer a range of products, including equity, loans and guarantees. Savers and investors – ISA allowance Fortunately, for savers and investors, there were no changes to ISA allowances. The main ISA limit for 2021/22 remains at £20,000, while the limit for Junior ISAs remains at £9,000.

However, plans were revealed for environmentally conscious savers with the proposed launch of the UK’s first sovereign green bond later this year. The bond will be offered by the Treasury-backed National Savings &
Investments and enable savers to support green projects, including renewable energy and green transport.

Pensions tax relief
Despite suggestions that radical reforms to this tax incentive might be announced, with rumours of moving to a flat rate of 25%, the chancellor chose to leave current rates and allowances in place.
However, the current system benefits higher earners the most, and there could be substantial savings from any changes, so the chances of future reforms is reasonably high. This might therefore be a temporary decision on an issue that could be revisited in a future budget. Even then it is unlikely any change would be introduced overnight, as any changes will mean investors and company pension schemes need sufficient time to adapt.

Inheritance tax
The inheritance tax (IHT) thresholds remain the same and will be frozen until April 2026. Everyone is entitled to pass on assets of up to £325,000 on their death, free from IHT. This may be boosted by the residence nil-rate band, for passing on a property to a direct descendant – which remains at £175,000 per person for the 2021/22 tax year. This means a married couple with children will be able to pass on a maximum of £1m in total without having to pay IHT – two lots of £325,000 (£650,000) and two lots of £175,000 (£350,000).

How we can help
If you would like to discuss any of the matters raised in the budget, please speak to your adviser who will be able to ensure that you are making the most of the reliefs and allowances available to maximise return.

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Through in-depth research and rigorous feedback exercises, Jackson Hogg have been able to grow and develop our service offering to suit the needs of our clients. This initially lead us to develop our Resource Partnership model which offers our clients the opportunity to outsource their recruitment needs, leading to a faster, higher quality, and more cost-effective recruitment solution. From there, we identified that many clients require support with, not just talent acquisition, but also full talent management throughout the employee life cycle. This lead us to grow our business even further by expanding our offering to a full suite of HR services which can be tailored to support a wide range of business requirements.

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You can also find out more about the national survey results, and an article from Alastair Wilson, our Tax Partner looking at the regional results, in issue 8 of The Engine: https://www.taitwalker.co.uk/wp-content/uploads/2020/12/The-Engine-Issue-8.pdf

We advise a broad range of clients in the manufacturing and engineering sector and have built up a wealth of experience over the years. We help our clients with identifying opportunities for growth, diversifying into new sub-sectors and expanding internationally. For further information please contact Paul Shields on 0191 285 0321 or email advice@taitwalker.co.uk

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He initially joined MHA Tait Walker in 2007 as a Senior in the Business Services audit team and was promoted to Associate Partner in 2016 before being made Partner in 2020.

Paul heads up the firm’s Durham office and he is also one of the founding members and a director of the Open North Foundation, a growing cohort of North East businesses that aims to raise hundreds of thousands of pounds to support companies looking to recover from Covid-19.

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The partnership follows ongoing discussions between EMN and NBS on how best to collaborate, and aims to assist EMN businesses understand complex information such as changing regulations, and project-specific safety compliance.

Ben Gilhespy, Director of Operations at EMN, says: ‘Many of our members businesses undertake work that supplies to construction professionals. We would like to expand in the sector but our experience lies elsewhere. A partner was needed to boost our credentials and help our members increase their visibility. Partnering with NBS will provide us with a consultative approach to support our members businesses further.’

Richard Waterhouse, CSO, NBS adds: “Manufacturing is central to the UK’s economic growth, especially in the North East. These businesses are the backbone of our local economy and have the potential to deliver jobs and prosperity in the years ahead.

“With the ‘golden thread’ looking to extend best practice, transparency, and accountability universally amongst built environment professionals, it’s important to equip specifiers with relevant and accurate information and processes. NBS are experts in providing up-to-date standards-setting information, from policy through to procedure. Our best practice guidance is easily understood and will help EMN to strengthen the voice of manufacturing and construction businesses in the North East.”

Commenting on the partnership, Sascia Elliott, Head of Partnerships, NBS, says: “NBS and EMN have a similar aim, to raise industry standards. NBS can reach out to EMN’s membership on a consultative basis, identifying genuine needs to help members grow or solve problems, in line with best practice.”

NBS Source actively supports manufacturers, helping them reach their full potential in line with changing needs in the industry. This powerful digital platform provides easy access to product information in a detailed and structured format, shaping performance criteria and certification, overcoming business issues, and improving efficiencies. All this equates to a more vibrant and connected sector.

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