Crunch time - Network Rail Property

« insight
The business magazine for customers of Spacia
No.41
Summer 2008
Crunch time
Taking a bite out of
your finances
pages 6-7
Mum’s the word
Maternity leave –
what you need to know
pages 8-9
Discrimination
dos and don’ts
Changes to the law now in force
page 11
www.spacia.co.uk
« editorial
Celebration time at insight
17/06/2008
14:37
W
Page 1
No.41
Summer 2008
ers of Spacia
ine for custom
The business magaz
Crunch time
of
Taking a bite out s
your finance
pages 6-7
word
Mum’s the leave
–
Maternity
know
what you need to
pages 8-9
Discrimination
dos and don’ts
now in force
Changes to the law page 11
www.spacia.co.uk
‘
e’re celebrating winning
another business
communication award for
insight.
Your magazine won an Award
of Excellence in this year’s
Communicators in Business
awards, judged by some of the
top corporate communicators
in the country.
The judges called insight “a
fascinating publication for a
hugely diverse audience” and
said it offers “sound business
information and advice”. They
also felt the “content, story
ideas and writing style are
good throughout”.
But do you agree?
We’re not resting on our
laurels – we want to know what
you think about the magazine.
Is it useful? Do you read all,
some or none of it? What are
we missing?
If you want to help shape the
future development of insight,
see how you can get involved
on the opposite page.
Our main feature this time
‘
« insight
si06p01.qxd
We offer some tips on how you can safeguard your
business against a possible recession
« insight
Contact us
If you have a question
or would like to raise an
issue about your Spacia
property, please call us
on 0800 830 840
If you’d like to be featured in a
future issue of insight, please
contact the magazine’s editorial
team on 020 7922 5670, email
[email protected] or write
to the magazine at insight, AB
Publishing, 24-26 Great Suffolk
Street, London SE1 0UE.
Having your business featured
in insight could be a good way
to raise your profile, and it’s
completely free. We’re always
looking for businesses to feature
as one of our customer profiles,
as well as your opinions on the
latest small business news and
Spacia-related issues.
2
« insight
From all at Spacia
Inside your issue
6-7 Crunch time
Is a recession on the way and
how are rising prices affecting
your business?
4
Our survey says . . .
10
Findings from our latest
satisfaction survey
5
Food for thought
8-9 Maternity matters
Customer profiles
Meet some more
fellow customers
11
Branching out in Leeds
A guide to your maternity
leave responsibilities
This product has been
awarded the NAPM
75% Recycled Mark
is about the credit crunch and
the rising prices of just about
everything except the one thing
you do want to go up – your
house. We offer some tips on
how you can safeguard your
business against a possible
recession.
We also take you step-by-step
through your maternity leave
responsibilities as an employer,
and how to cope when a key
member of your team takes
maternity leave.
We hope you find this issue
useful and a good read, and we
hope you’ll want to help us
make insight even better.
Law and order
Round-up of recent
and forthcoming
legislation
12
Job profile
Meet Priya Thakur,
portfolio manager
for Spacia South
The views expressed in insight are not necessarily those of Spacia or the publishers.
Summer 2008
www.spacia.co.uk
Best and worst
of the Budget
D
espite what was described as a lowkey Budget with no major surprises,
Chancellor Alistair Darling received an
unenthusiastic reaction from small
businesses, with many saying their
needs have been overlooked.
You can make up your own mind as
we summarise the best and worst of the
Budget announcements that may impact
on small businesses:
Additional £60 million in the Small
Loans Guarantee Scheme pot, which
helps businesses having trouble
securing credit
Corporation tax for small businesses
will rise from 20 per cent this year to
22 per cent by 2009
Plans were announced to introduce a
target for SMEs to secure 30 per cent of
public sector contracts within five years
Entrepreneur’s relief rate of 10 per cent
to be introduced on capital gains only
up to the first £1 million
An additional £12.5 million in the
Capital Fund to encourage female
entrepreneurs to set up a business.
S
mall businesses
will make up a
new working group
being set up
to advise the
government’s
Business Council
for Britain on issues
affecting SMEs.
The panel has
been set up following
criticism that the council,
which includes well-known names such as Sir
Richard Branson and Sir Alan Sugar, does not
represent the needs of SMEs.
It will focus on the barriers to setting
up and growing small businesses.
Chairman of the council Mervyn
Davies said: “We have absolutely got to
reduce the regulation and red tape for small
businesses; that’s a very pressing challenge.
And we’ve got to help small businesses
grow internationally without building their
cost base.”
SMEs’
voice on
Business
Council
Your paper goes greener
W
e’ve changed the
paper insight is
printed on to make it more
environmentally friendly.
Our new paper – called
Revive 75 – is 75 per cent
recycled and 25 per cent
www.spacia.co.uk
sourced from virgin wood
fibre from sustainable
plantations. The bleaching
process also uses less
chlorine than most paper.
It’s totally carbon neutral
and it means we can carry
the Forestry Stewardship
Council (FSC) accreditation
and the National Association
of Paper Merchants (NAPM)
mark of approval.
And you can do your bit
too by recycling your copy!
Ofgem launches
energy market probe
E
nergy regulator Ofgem has launched
an investigation into electricity and gas
markets for households and small businesses.
The move comes following energy price
rises from many of the major suppliers
across the UK. Despite no strong evidence
that the market is failing, customers are
reported to have lost confidence that the
competition is offering them a fair deal.
Initial findings from the probe, which is
being conducted under Ofgem’s Enterprise
Act powers, will be released before the end
of September.
A formal investigation has also begun
into npower over allegations of mis-selling
contracts. The inquiry follows claims that
sales representatives had lied to customers
and used illegal practices to sell contracts.
If found guilty, Ofgem can fine up to 10
per cent of RWE’s – owners of npower –
global turnover.
insight – your
views wanted
T
his summer we’ll be holding some
focus groups to find out what you
think about insight magazine.
We want to know what you find useful,
what you don’t read and why, and what
you’d like to see in the magazine that we
don’t currently include.
Several focus groups will be held at
various locations. If you’d like to take
part and help to improve insight, please
email [email protected] or call
020 7922 5670.
« insight
Summer 2008
3
«
news
« tenancy issues
Our latest customer satisfaction research shows some favourable results
compared with other companies, but also some areas for improvement.
Your opinions count
W
e teamed up with Ipsos MORI for this
year’s customer satisfaction research.
The research experts interviewed 75
customers to find out their views on their
relationship with Spacia and identify
potential areas for improvement.
Overall, the favourability, advocacy and
satisfaction scores were average to good
compared with other companies.
Sixty per cent of respondents were very or
fairly satisfied with their relationship with us
and 59 per cent said Spacia understands their
needs very or fairly well.
Trust and honesty also scored well in the
survey, and we ranked well against previous
landlords among customers that had recently
moved to Spacia.
But there are some areas for improvement
that we aim to address.
These include our speed of response to
customer requests and a perception that new
customers enjoy better deals than existing
customers. This certainly isn’t the case – it may
stem from the amount of refurbishment work
that’s happening at Spacia developments,
but the customers that move in aren’t
offered any better deals.
It’s clear that customers want more
communication from and with us – this
is something that’s come up in previous
surveys too. Fewer than half of respondents
said they were satisfied with the level of
communication from Spacia, and lack
of contact and communication was also the
main reason cited by those who said they are
dissatisfied with the working relationship
with Spacia.
insight is a key communication channel
between Spacia and our customers, and
one of our first actions is to organise a
series of focus groups with customers
to look at how we can improve the
magazine.
See page 3 for details
of how you can
take part in this
research.
‘
‘
It’s clear that customers
want more communication
from and with us
4
« insight
Summer 2008
www.spacia.co.uk
«
customer profile
A
li Mercan and his wife Mujde are no
strangers to Bishopsgate Street in Leeds.
They already owned an off-licence in one of the
arches before deciding to branch out, in more
ways than one.
They wanted to expand the shop into a
bigger groceries and convenience store, so
when the larger arch next door came up for
rent, they decided to move along the row. But
instead of leaving their original arch, they
opened a Turkish restaurant, Ephesus Mangal,
serving fresh food cooked on a charcoal grill.
Ali said: “It has always been my dream to
own a restaurant and we have always had a
great relationship with Spacia, so when the
second arch became available I jumped at the
chance. We converted our original arch and
installed an open-plan kitchen.
“The arches are in a great location, right near
the station and in the heart of the city centre.
There are lots of bars and hotels nearby so it
seemed like the ideal spot for a restaurant.”
I best-one Xpress News and Ephesus Mangal
0113 243 8567
The move has allowed Ali to expand his convenience store.
Business is booming
‘
‘
It has always been my dream
to own a restaurant and we
have always had a great
relationship with Spacia.
The restaurant serves Turkish food
freshly cooked on a charcoal grill.
Good neighbours: Ali’s businesses are both under the arches.
www.spacia.co.uk
« insight
Summer 2008
5
« feature
Can you survive th
credit cr
Petrol has reached
a record £5 a
gallon, food is
costing almost
£800 more a year
and house prices
have suffered
their first annual
decline in 12
years. We ask,
are you feeling
the crunch yet?
6
« insight
T
he latest survey by social
entrepreneur website
www.UnLtdWorld.com found
that nearly 40 per cent of small
businesses felt they had
experienced cash flow difficulties
in the last few months, which
they put down to the changes
in the economy.
Figures from www.petrolprices.
com show the quickest rate of
increase in unleaded petrol and
diesel prices the UK has seen in
three years.
And, according to
mySupermarket.co.uk, the cost of
groceries has seen a 15 per cent
hike in the last year alone. For a
family spending £100 a week,
that means an additional bill of
£780 per year.
In addition, the downturn in
the UK’s housing market has
continued, and April saw property
Summer 2008
prices fall by one per cent
compared to the same time
last year.
Small businesses may well be
feeling the effects of the worsening
economic situation. Not only is
there the threat of a recession,
but consumers are spending more
cautiously, and, thanks to the
credit crunch, additional finance is
harder to secure.
Spacia customer Michael
Kinsley, from Diamond Travel in
Sheffield, said: “As people cut
back on luxuries, there are far
fewer people going on holidays.
“We have been lucky as we
have started working with the rail
companies, putting on
replacement coaches for train
services that are out of action.
However, we are really feeling the
effect of the increasing price of
diesel. We have to honour the
quote given to our customers,
which means we are absorbing
most of the costs.”
But Darren Sudlow, who runs a
fish and chip shop in a Spacia
property in Warrington, thinks the
picture may not be as bleak as
people think. He said: “People are
getting scared into not spending
by the doom and gloom reports
in the media. We have felt the
effects slightly, but I honestly
believe we have a quality product
at a reasonable price and that is
why customers keep coming.
“There has been a rise in the
price of pastry and potatoes, so I
have started to buy in bulk to avoid
price increases from suppliers.
I am absorbing the cost at the
moment as I don’t want to pass it
on to the customers, although I
may review the situation at the end
of the summer.”
www.spacia.co.uk
e~ ~
unch?
What can you do?
John Wright, national chairman of the
Federation of Small Businesses, shares
some recession–beating tips.
The signs are that things could be difficult
for small firms in 2008, but there’s no
reason to panic. With a bit of belttightening in the coming year, there are
plenty of things small business owners
can do to weather a potential storm:
•
Try to diversify the goods and
services you offer as much as
possible
www.spacia.co.uk
•
•
•
Make sure you get paid what you
are owed. Ensuring creditors pay
what they owe is often easier said
than done, but when times are hard
it’s worth making the effort
Consider switching utility providers.
Shop around to find out whether
you can save money on your gas
and electricity bills
Review relationships with service
providers. Could you be getting a
better deal on your insurance, your
IT service provider or your banking
arrangements?
•
Get your finances in order. Talk
to your accountant about where
things stand and how you can plan
for the year ahead
•
Make sure you’re getting what
you’re entitled to from your local
authority. Depending on the size
of your business, you may be
entitled to reductions in your
business rates.
« insight
Summer 2008
7
«
feature
« feature
R
MATE
Dianah Worman is an advisor on diversity
for the Chartered Institute of Personnel
and Development. She speaks to insight
about the specific challenges faced by
small businesses.
“There is no question that temporarily
losing an employee when she goes on
maternity leave creates challenges. But the
hassles are short-term and create learning
opportunities for employers in how to deal
with temporary absences as successfully as
possible and to develop confidence in
coping with such situations.
“If the temporary absence is properly and
thoughtfully managed, an employer will
gain longer term benefits through the
retention of an experienced and loyal team
member and new confidence in managing
the business on a more flexible basis – a skill
businesses are increasingly having to
develop in today’s economic climate.
“The best way to approach cover for
maternity leave is to think creatively and
flexibly and seek ideas and suggestions
from all the team members. Open and
honest conversations help to build trust and
engagement with employees. If you deal
with maternity leave well, you will gain the
trust and respect of everyone involved and
build the reputation of your company as
being a good place to work.
“Being a smaller business can have
advantages in responding to maternity
leave. You can be flexible rather then
prescriptive and adapt to the changes in the
most appropriate way, so both you and
your employees are happy.”
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What the
experts say
TY FACT
I
N
Step-by-step guide
8
•
Allow time off for your employee to attend any
antenatal appointments
•
Discuss how much time she intends to take off and
whether she has any annual leave to take before her
maternity leave
•
Within 28 days of receiving notice, write to your
employee telling her when she is due back to work
•
Find out about claiming back SMP by contacting the
HMRC Employer Helpline on 08457 143143
•
Calculate what other payments or benefits you must
pay your employee, such as pension contributions.
« insight
Summer 2008
www.spacia.co.uk
Baby talk
By knowing the law and openly talking with an employee from an
early stage, small business owners can ensure they provide support
during an employee’s pregnancy and be prepared to cope while she
is on maternity leave.
Communication is key
Your employee must tell you she is pregnant
at least 25 weeks into her pregnancy and
your responsibilities as an employer begin
from this moment, not just during her
maternity leave.
As soon as you know, you need to
remove any risks to your employee
or her child. For example, if she
usually stands for long periods
during her work, you will
need to supply her with a
suitable chair.
Discuss with her how
much maternity leave
she intends to take
and put the date of her return in writing,
along with any information about how you
will pay her Statutory Maternity Pay (SMP).
An employee qualifies for this if you have
employed her continuously for 26 weeks
by 15 weeks before the baby is due.
Every employer is entitled to claim back
at least 92 per cent of this SMP from HM
Revenue and Customs (HMRC). As a small
business owner, you may be able to claim
it all back, plus compensation.
You should start thinking about how to
manage her absence as soon as possible.
If you decide to reallocate her work, make
sure your other staff are happy with the
arrangement – you don’t want other
employees to be overworked or unhappy.
The alternative is to take on a temporary
member of staff. Be upfront with them about
when you expect your employee to return to
avoid any disputes.
Welcome back
Staying in contact with your employee will
make her return to work much easier.
‘Keeping in Touch Days’ are one option. The
employee can work for up to 10 days
during her maternity leave. She is not
obliged to work at all but you
should discuss this as an option,
as well as deciding how she
would like you to contact her.
If your employee decides
to extend or reduce her
maternity leave, she must
give you eight weeks’
notice. She may also
make a written request
for flexible working.
While you must seriously
consider her request, you can
turn it down on genuine business grounds.
Communication with your employee about
her pregnancy doesn’t stop when she
returns. Make sure you talk to her about any
arrangements needed if she is breastfeeding,
and provide facilities for her to rest and to
store expressed milk. Above all, help to make
her return to work as smooth as possible.
www.spacia.co.uk
« insight
Summer 2008
9
«
feature
« customer profiles
The future of film
F
uture Cinema was once
described by The Times as
‘a refreshing alternative to
mainstream multiplex fodder’,
and it’s not hard to see why.
Its Secret Cinema events,
held every month at unique
locations across the country,
challenge the viewer by mixing
film with theatre, live
performance and music.
And it was a Spacia arch in
London Bridge that provided the
perfect venue for the premiere
of Paranoid Park, a critically
acclaimed film by Gus Van Sant.
Assistant to the creative
director Kate Glover said:
“The arch was an amazing
space to use, and Spacia
was really responsive to
what we were trying to do.
To fit in with the film, we
had skateboarders performing
outside the venue, as well
as in the arch on the night.”
More than 30,000 people
subscribe to the Secret Cinema
newsletter that announces the
location of each screening in
the days before it takes place. It
is not until the evening that the
film being shown is announced.
I www.futureshorts.com or
www.secretcinema.org
Dedicated
follower
of fashion
A
n arch in Camden is the perfect
location for contemporary men’s
clothing brands Luke and Modern
Amusement – the key labels of specialist
fashion company Luke Roper Ltd.
Luke’s entire range – including a new
watch collection – is on display at the
north London arch, where selected
stockists can view the range and place
orders for their stores.
Nick Madlani, Luke Roper’s financial
controller, said: “Camden is the ideal
location for our wholesale store. It is
a trendy neighbourhood and is fast
becoming a hub for other fashion labels.
“With 2,500 sq ft of space, the arch is
ideal for displaying our clothes. Each
10
« insight
Summer 2008
Nick shows off some of his collection on display in the arch.
season we invite all our agents from the
business to present the new season’s
collection there.
“We have always had a great relationship
with Spacia and our lettings manager is very
approachable and always happy to help.”
I Luke Roper Ltd www.luke1977.com
www.spacia.co.uk
Higher wages –
a problem for
small businesses?
T
he Association of Convenience Stores and the
Rural Shops Alliance have both condemned a
further increase in the national minimum wage from
October 2008.
The government has announced that the
minimum hourly rate will go up from £5.52 to
£5.73, an above-inflation increase of 3.8
per cent.
It could cause problems for
businesses that are already
struggling in the current
economic climate.
Businesses that need a
lot of staff to cover
shifts could be
particularly hard-hit.
Discrimination laws
tightened up
U
nder changes to the Sex
Discrimination Act introduced
from April 2008, the definition of
sex-based harassment has changed.
It now includes conduct relating to a
person’s sex, whether or not it targets
a particular person. Employers can also
be liable for harassment by a third
party – such as a customer or supplier –
towards an employee if they haven’t
taken reasonable steps to stop it.
Laws on pregnancy and maternity
discrimination have also tightened
under the changes. Women cannot
receive any unfair treatment related to
pregnancy, regardless of how a nonpregnant employee would be treated.
Employers are also required to consult
with them regarding any changes to
their job while on maternity leave.
•
Statutory maternity and sick pay
both increased from April 2008 to
£117.18 and £75.40 respectively.
Rate reduction
for Scotland
New code to cut red tape
T
he government has introduced a new
code of practice that it claims will
help save businesses time and money by
improving the way regulators work.
The Regulators’ Compliance Code
means fewer unnecessary inspections,
requests for information and
forms for compliant
businesses.
National regulators
such as the Health and
Safety Executive will have to
take the Code into account, and
in England it also applies to local
authority functions such as trading
standards and environmental health
and fire and rescue authorities.
Business and competitiveness minister
Shriti Vadera said: “The Compliance Code
requires regulators to work better with
business and eases the burdens placed
on those who operate within the rules.”
S
mall businesses in Scotland are
enjoying a significant reduction in
business rates a year early – and some
will have nothing to pay at all.
The Small Business Bonus Scheme
came into effect in April 2008.
Under the scheme, around 120,000
small firms in Scotland should cease to
pay business rates and another 30,000
should benefit from reductions of
25-50 per cent. It reduces the rates
burden for businesses with properties
with a combined rateable value of
£15,000 or less.
Businesses must apply to each local
authority area in which they have a
property.
Taxing times
T
he rate of corporation tax paid by
small businesses will increase to
21 per cent in 2009.
And there was plenty of media
coverage of the changes to Pay As You
Earn (PAYE) and National Insurance (NI)
rates that came into force from April
2008. Only two PAYE rates now apply:
a basic rate of 20 per cent, and a
higher rate of 40 per cent for earnings
over £34,600.
www.spacia.co.uk
« insight
Summer 2008
11
«
legal news
« job profile
Geared up
for success
All across the country, Spacia is working behind the
scenes to make sure you can get on with the day-to-day
running of your business.
In our regular feature, insight looks at one Spacia
employee and their role within the company.
Name:
Priya Thakur
Job:
Portfolio manager
Area:
South London (Brixton and Peckham)
Customers: 480
Service:
W
ith almost seven years’ experience in
the property management industry,
Priya Thakur is well equipped to deal with
the challenges of working as a portfolio
manager at Spacia.
Responsible for a portfolio of more than
480 properties in the south London area,
Priya covers everything from rent reviews
and lease renewals to maintenance,
preparing marketing reports and dealing
with day-to-day customer enquiries.
“I’ve just moved to Spacia South and I’m
really enjoying it. I look after a team of two,
and we all work together to get the best
12
« insight
Summer 2008
possible job done,” said Priya.
“I manage the budget for the properties
in my area, so I take a strategic view to make
sure the money is allocated in the best way.”
As well as looking after the day-to-day
running of the portfolio, Priya also gets
involved in identifying properties for
development.
“I really enjoy working on investment
schemes, where funding is applied to
refurbish a vacant property. This will
improve the quality of the property,
so that it can be let. I haven’t seen one
through to completion yet, but when
18 months
I do it will be extremely satisfying.”
Both her biggest challenge and favourite
part of the role come from marrying
customer needs with business objectives.
“It can sometimes be challenging to strike
a balance, but building good relationships
with customers is key.
“You need to be flexible in this role as it is
so varied. One day I can be on site at an arch
in Brixton and the next in a meeting with an
MP on a station enhancement.
“Spacia is a great company to work for –
it has all the benefits of a large organisation
but also a personal feel,” added Priya.
www.spacia.co.uk