Category: 0 Reviewed

A business rates ‘loophole’ which could be costing English councils millions in lost Council Tax is to be reviewed by ministers with a consultation launched today (7 November 2018).

Currently, second-home owners pay Council Tax on their properties including when the property is available to rent infrequently during the year.

Properties are valued for business rates when owners declare their property is available to let as ‘holiday accommodation’ for 140 days or more in a year.

Any property registered for business rates, rather than Council Tax, are likely to qualify for small business rate relief. This provides 100% relief from business rates, so no tax is due on properties with a rateable value of £12,000 or less.

Around 47,000 holiday lets in England are liable for business rates, of which circa 96% have rateable values of £12,000 or less. Currently there is no requirement for evidence to be produced that a property has actually been commercially let.

Genuine businesses can claim the relief to which they are entitled. However, the government is aware of concerns that owners of second homes which do not fall into this category, could exploit the system by not paying Council Tax, whilst still using local services.

Local Government Minister Rishi Sunak MP said:

We’re aware of concerns that the current arrangements for valuing second homes for business rates and claiming relief, do not provide strong enough protections against abuse.

We are seeking views on whether we should strengthen the checks already in place to ensure second-home owners have to pay Council Tax, while ensuring genuine holiday let businesses are able to demonstrate they are eligible for business rates relief.

The consultation will seek views on whether the current criteria should be strengthened to ensure second home owners are contributing to the local economy through the proper payment of council tax, or, for those genuinely renting out their property and supporting tourism, business rates.

View the consultation on this website – it will run until 16 January 2019.

We’ve announced deals with 13 supply chain partners to collaborate regionally to carry out up to £8.7 billion of work on England’s motorways and major A roads.

The deals have been set up using a new industry-leading approach, the Routes to Market Regional Delivery Partnership, which incentivises companies to improve safety and journeys on our roads. It contains incentives for results which include:

• shorter duration and more accurate management of roadworks to help drivers better plan their journeys and experience predictable journey times
• buying more efficiently and buying locally – using the capability of a region to benefit the region
• encouraging innovation, for example lighting and signs designed to need less maintenance, reducing disruption and improving road worker safety
• reduced road noise and increased environmental benefits

Our Chief Executive Jim O’Sullivan said:

Routes to Market represents a fundamental change in the way we deliver road projects. It will be performance rather than price based, focusing on building the right projects with the best outcomes for road users and the communities we serve.

It demands a major step up in our supply chain to embrace innovation and team work, and in their ability to deliver value.

The 13 companies – known as Delivery Integration Partners – will be part of the Regional Delivery Partnership working with us. They will develop, design and construct highway projects across England from 2019 through to 2024.

Until now, we’ve procured work on a scheme by scheme basis. This new approach provides a secure pipeline of work, instilling confidence to invest in skills and employment. Driving value for money, innovation and delivery certainty, the Regional Delivery Partnership model has been designed to start a long overdue transformation within the infrastructure construction sector.

The value of work allocated across the 13 companies is as follows – the values mentioned are shared between suppliers on the lot over a six-year period (includes RIS1 budget and RIS2 estimate):

Lot 1 – South West and Midlands – £200m – two partners: Geoffrey Osborne Ltd; and Griffiths / Farrans Joint Venture (Alun Griffiths (Construction) Ltd and Northstone (NI) Limited trading as Farrans Construction)

Lot 2 – South East and East – £350m – two partners: John Graham Construction Ltd; and Volker Fitzpatrick Ltd

Lot 3 – North West, North East, Yorkshire and Humber – £200m – two partners: Amey Sir Robert McAlpine Joint Venture (Amey OW Ltd and Sir Robert McAlpine Ltd); and North Midland Construction Plc

Lot 4 – South West – £800m – two partners: Galliford Try Infrastructure Ltd; and Taylor Woodrow

Lot 5 – Midlands – £1,250m – two partners: BAM Nuttall Ltd; and Skanska Construction UK Ltd

Lot 6 – South East – £1,100m – two partners: BAM Nuttall Ltd; and Balfour Beatty Civil Engineering Ltd

Lot 7 – East – £2,800m – three partners: Costain Ltd; Galliford Try Infrastructure Ltd; and Skanska Construction UK Ltd

Lot 8 – North West, North East, Yorkshire and Humber – £2,000m – three partners: Balfour Beatty Civil Engineering Ltd; Costain Ltd; and Kier Highways Ltd

The work is arranged into 18 packages of schemes, awarded to Delivery Integration Partners in bands of up to £100m (lots 1 to 3) and over £100m (lots 4 to 8).

General enquiries

Members of the public should contact the Highways England customer contact centre on 0300 123 5000.

Media enquiries

Journalists should contact the Highways England press office on 0844 693 1448 and use the menu to speak to the most appropriate press officer.

The investment is set to offer a boost to the company who created 50 jobs in London following assistance from the Department for International Trade’s Global Entrepreneur Programme.

Engineer.ai’s ‘Builder’ is an AI-powered Software Assembly line which breaks projects into small re-usable features that can be customised with human interaction from around the world. In turn, this allows for the customisation of high-quality software packages in a low-cost, and time-effective manner.

DIT’s Global Entrepreneur Programme helps overseas companies set up in the UK with the offer of expert guidance and introductions to key investors within industry. Since its beginnings, the programme has generated over 5,000 jobs in the UK and raised over $1 billion of private investment for companies.

Engineer.ai’s founder, Sachin Dev Duggal will announce the investment from the Web Summit in Lisbon, where he will meet Margot James, the Minister for Digital and Creative Industries.

International Trade Secretary Dr Liam Fox MP said:

The UK is known across the globe for cutting edge innovation and our world-class tech companies. It is because of companies like Engineer.AI that last year the UK secured more tech venture capital investment than Germany, France, Spain and Ireland combined.

My international economic department is working hard to help firms go from startup to scale-up through initiatives like the Global Entrepreneur Programme which gives guidance to budding entrepreneurs around the world. The Programme has seen 900 entrepreneurs invest in the UK since 2005 – creating more than 5,000 high quality jobs and raising more than £1bn in venture capital.

Sachin Dev Duggal, Founder of Engineer.ai said:

We created Engineer.ai so that everyone can build an idea without learning to code. This investment round validates our approach of making bespoke software effortless. The capital comes at a time of rapid growth and will propel the platform into the mainstream, allowing Builder to open the door for entire categories of companies that could not consider it before.

Engineer.ai launched in June 2018 and before the end of 2020, is projected to pass the $100m revenue mark.

Minister for Digital Margot James MP said:

The UK is a haven for investment and Europe’s leading tech hub. It’s fantastic to see another one of our innovative digital firms raise the funding it needs to take a step to the next level.

We are working tirelessly to make the UK the best place in the world to start and grow a digital business.

Today (6 November) advice has been issued to pet owners about what they need to do to make sure they can travel to the EU with their pets when the UK leaves the EU.

Pet owners will still be able to travel to Europe with their pet after we leave the EU whatever the outcome of the negotiations. However, in the unlikely event of a no-deal they may need to take some additional steps. This includes a rabies vaccination followed by a blood test a minimum of 30 days afterwards.

If pet owners are planning to travel after 29 March 2019, the government recommends they contact their vet at least four months in advance of their intended travel date to check what they need to do.

Those wishing to travel to the EU on 30 March 2019, for example, should discuss requirements with their vet as soon as possible and before the end of November 2018 at the latest.

The requirements include making sure that pets are effectively vaccinated against rabies before they travel. This involves having an up-to-date rabies vaccination and a blood test to demonstrate sufficient levels of rabies antibody.

The blood test would need to be carried out a minimum of 30 days after any initial rabies vaccination and a minimum of three months before their travel date. Pet owners will need to talk to their vet about health requirements in good time.

Christine Middlemiss, UK Chief Veterinary Officer, said:

Today we are giving practical and straightforward advice for people who wish to travel to Europe with their pets after we leave the EU in the unlikely event of a no-deal situation.

I urge all pet owners who wish to travel immediately after 29 March 2019 to consult with their vet as soon as they can. This is about planning ahead to ensure their pet has the correct health protection documented and in place for all possible Exit scenarios.

In recent weeks we have been in contact with vets to highlight this issue. They are expecting pet owners to consult with them and plan ahead.

Pet owners can also stay up to date with the latest advice on pet travel on GOV.UK or by searching ‘pet travel’.

Gerald Chiatoh Etangayong, from South East London (SE3), was the sole director and shareholder of GEC Consultancy Ltd, a company that was not authorised by the FCA.

Incorporated in 2014, GEC offered investment services for clients wanting to trade in the global financial markets, as well as training for people who wanted to conduct their own trades.

However, just over a year later the company experienced financial difficulties and by November 2015, GEC was placed into creditors voluntary liquidation.

The Insolvency Service looked into the affairs of the company and the 30-year-old’s conduct while director and discovered several instances of wrongdoing.

Investigators found that GEC had been operating an investment scheme when it managed foreign currency investments on behalf of a company based in the British Virgin Islands.

GEC received more than £194,000 worth of funds from investors but only invested around £96,000 in a foreign currency investment platform and while, the funds increased in value by approximately £22,000, only around £57,000 was paid back to the investors.

When asked where the remaining funds ended up, approximately £61,000, Gerald Etangayong said he used the money to settle GEC’s outstanding liabilities and repay loans, while also pocketing more than £17,000 for himself.

Gerald Etangayong also allowed GEC to accept deposits from investors despite knowing that the company’s promotional material was misleading.

Exaggerated claims on the marketing literature included that funds would be ‘safe and secure at all times’, would be held in a segregated account and investors would receive a full reimbursement of all the capital invested at the end of the investment period.

However, Gerald Etangayong should have advised his investors of the key risks, including potential large losses and the highly volatile and unpredictable nature of the foreign exchange market.

As a result of director’s misconduct, at least £200,185 remains outstanding to investors and on 8 October 2018 the Secretary of State accepted a disqualification undertaking from Gerald Etangayong.

Effective from 29 October 2018, Gerald Etangayong is banned for 11 years from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.

Robert Clarke, Head of Company Investigation at the Insolvency Service, said:

Gerald Etangayong abused his position by knowingly taking people’s money for investments he knew were never viable.

An 11-year disqualification is a substantial ban and should serve as a warning that we will always look to remove from the business community those directors who act below the standards that should be expected of them.

Notes to editors

Gerald Chiatoh Etangayong is of South-East London (SE3) and his date of birth is December 1987

GEC Consultancy Ltd (Company Reg no. 09128919).

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.

Persons subject to a disqualification order are bound by a range of other restrictions.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

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