Large energy consumers had their focus on the inaugural CRC league table which made its first appearance this month. Interestingly, a specific building heads the table but promoting a green property may increase business rates; we take a look. Also, inflation may be falling but this September’s figure has an impact on calculating future business rate levels. In the future this could be good for local councils but not necessarily for ratepayers.
Over recent months it’s become fashionable to protest and occupy private property. What can you do if this happens? Take a look at our guidance on the matter. Changes to how you can buy legal services is opening up and you could be putting your legal services in with your groceries as you perform your weekly shop. How will that alter your consumer buying habits? You will remember the severe snow last year so take a look at our Q&A which covers being prepared for the winter.
First CRC League table results; winners and losers
Monday November 8th saw the unveiling of the first Carbon Reduction Commitment (CRC) League table, with mixed fortunes for some of the UK’s largest organisations and its fair share of critics.
Topping the list was a City of London skyscraper, 99 Bishopsgate, owned by Hammerson, one of 22 entrants that scored the same highest weighted figure with other notable names including the Government’s Department for Energy and Climate Change and the energy regulator Ofgem, both of whom must be relieved. Other top performers include Manchester United Football Club, Centerparcs and British American Tobacco.
Generally, there were impressive results from many public sector bodies including hospitals, whilst the lower table performers were in the IT Sector which has led to scepticism and criticism from some about the merits of the scheme. The table lists 2,000 organisations, all of whom had the same amount of time to collate their data and at the bottom it is clear that some entrants have taken little or no action at all to make provision for lowering their emissions.
Whilst criticism could be levelled at those companies, it is important to remember that this is only the first year of the scheme and as the Environment Agency says this is… ’’ a baseline for future years which will also show overall CO2 emissions, annual emissions savings and progress on energy efficiency.’’ They do acknowledge that this is only the start and that it is the future years where the table will become much more relevant; they go on to say,’’…the rankings will increasingly become a public statement on participants’ energy efficiency, giving them an added incentive to cut emissions.’’
However, IT Networking company Cisco, for example feels that they, and others like them, have made significant strides to improve their technology during the course of the year and due to timing none of that is reflected in the table’s results. Ian Foddering, CTO of Cisco says ‘’…but those organisations that make exemplary organisational changes, replacing business travel with intelligent collaborative technology for example can actually find themselves on the wrong side of today’s legislation.’’ No doubt their improvements are likely to be seen coming through from next year but of course some fear that the nature of their business, in keeping up with the latest technological advances, will always place them, and their sector, in the lower half of the table.
To see the table in full you can access it via the Environment Agency’s website.
The inexorable rise in inflation and the knock-on effect on business rates would, they claim, have a significant ‘drag-effect’ on shared efforts to promote growth through planning reform, deregulation, and incentives for local growth and business investment and would also pale in comparison to earlier correspondence that the BCC issued to Government about their stance on empty property rates; it seems however that the Government will not be swayed on either at present, and are happy to refer to the doubling of Small Business Rate Relief that they have introduced and the streamlining of Relief claims via the Localism Bill. A spokesman for Mr Pickles’ Department has said....’’We need to balance any further support for business against the tough decisions needed to reduce the deficit.’’
The general tone of this concern is also voiced by the recently formed City Finance Commission who are looking, on a national basis, at how our Cities can set themselves free financially, economically and socially such that they can ‘’become more financially independent, to strengthen their ability to drive both local and national economic growth, deliver localism and to increase care for their communities.’’
They talk of proposing a ’business rate retention scheme’ and in pursuit of Localism are eager to see a much clearer link between local growth and local spend. They refer to the likes of Westminster who by 2014-5 will be raising some £1.5bn from local business rates but see ‘’little of this money invested back into the local community.’’ With the Localism Bill likely to receive Royal Assent next month we are likely to see much more of this rhetoric in a drive to stimulate local growth and devolution of centralised services.
Combating the threats of Protests
Our Democracy encourages freedom of speech and assembly and indeed the Courts are under a duty to protect fundamental freedoms granted by the European Convention on Human Rights, case law and the Human Rights Act 1998…but, in practical terms, what can you do to prevent and break up protests on your land?
The legal procedures for removal of protestors from private land are time consuming and stressful but at least there are several options including: a claim for trespass, a possession order and an injunction to prevent further re-entry. However in many cases these all present practical difficulties in terms of implementation, most notably when the identities of the protestors are unknown. The courts have however seen sense in some instances and allowed for notices to be served in conspicuous places and have shortened the usual time frames for ‘deemed service’ in order for them to have swifter effect. Also, with the use of clear maps attached to the notices, the courts will try to avoid any ambiguity over the actual area of property covered by the notice.
This is all good and well but having a strategy in place in the first place is also prudent, so that you are prepared. Here are a few suggestions:
- Nominate a suitable person as a site contact who is both able to witness the activity and communicate this to a lawyer.
- Monitor certain websites (such as www.protest.net and www.occupylondon.org.uk) to try to pick up intelligence on planned demonstrations which may affect you, and if relevant notify police of anything suspicious.
- Check your own security systems such as CCTV
- Have your own legal title documentation to hand, including maps, plans, access rights and public rights of way.
- Contact local police
- Contact a solicitor to initiate injunction, trespass or possession orders.
- Do not ask for individual protestor’s names; it is permissible to issue proceedings against the organisation, and be more wide-ranging.
- Collate information about the purpose of the protest, the number of people involved, their activities and details of any damage or disruption.
Early last month the Legal Services Act came into force, which the Government claims will offer greater choice and value to the public, whilst at the same time allowing firms to access new investment allowing them to explore new markets. In theory lawyers will be able to work in multi-disciplinary companies who can offer a range of advisory services, provided they hold the appropriate licence and are recognised as Alternative Business Structures (ABSs).
So, with this opening up of the market, the natural extension of the legislation could mean that Banks, and even supermarkets, could shortly be offering this ‘value-add’ service as part of a move to offer more variety to consumers. Tesco themselves are reported to have ‘’no current plans to offer legal services’’, however the CO-OP is the only chain to so far comment that it was interested in the idea and has a pilot scheme set up in some branches in Bristol.
Critics of the legislation have been nervous about the proposals since it was first mooted in 2009 and chose to brand it ‘Tesco Law’ in an attempt to belittle its quality and lack of professional credibility. A newly formed group calling themselves The QualitySolicitors.com and a coalition of some 100 firms sought to oppose the Act, and now some of the county’s largest firms have admitted that the opening up of the market could impact on their profitability.
Legal information company Sweet and Maxwell claims that 13% of finance directors at the 100 biggest firms see the move as a ‘’high risk’’ to profitability whereas the previous year none of them saw any risk. As Sweet and Maxwell say: “Over the longer term, new capital attracted to the sector could fund more active competition among law firms for commercial work.’’
As a nervous sector takes in the new Law, it is not the case that there is little or no regulation and, as mentioned, licensing will be necessary via the Council of Licensed Conveyancers who will apply the same rigorous and proportionate approach as always. They believe that this is good news for consumers and they will offer a ‘’new riskbased and outcomes-focused approach to regulation (which) will help ensure high standards of service, and maximise consumer protection.’’
TAP takes a positive view of such liberalisation as it will allow a sometimes unapproachable sector to be more accessible and could encourage more engagement with customers; but nevertheless, if you are a law firm seeking to defend your client base you too can look to remind them of your strengths by more active marketing and communication possibly by Newsletters, Social Media or video blog. Just as the property sector is beginning to wake up to the need for more engagement, so the legal sector must now look to do the same.
Our earlier article refers to the prospect of increased Rates bills for 2012-3 based on the significant rise in RPI as at this September; a traditional procedure but based on an RPI figure being at its highest for 20 years.
Another threat is perhaps even more incongruous... a ‘green premium’. We are constantly being referred to a myriad of Sustainability measures designed to reduce our CO2 emissions in the workplace and at home and the construction industry is under similar pressure to develop the greenest possible new or refurbished buildings to meet UK targets. But the irony is that Rating valuations are based upon prevailing rental values and if higher rents are paid for ‘greener’ buildings due to anticipated lower running costs then the rating valuation is bound to be higher too.
What perhaps should be happening is that the older and less efficient stock is taxed higher which would then reduce rents and value and trigger the necessary upgrade which would then result in higher rents and lower (reward-based) Rates. This approach would then tie in with other sustainability measures, such as low grade EPC rated buildings not being allowed to be leased from 2018, which would stimulate their refurbishment or redevelopment.
Unhelpful changes in green thinking however such as the sudden and earlier-than-planned halving of the Feed in Tariff associated with energy generated from Solar panels tends to slow this thought process down, but the general trend should be towards trying to tie in both a reward-based approach with a stick-imposed tariff on less efficient buildings.
Consistency of approach can also be sought when setting some ‘green’ activities against other revenue-producing schemes, such as the non-taxing of congestion and speed cameras (producing significant income) and the taxing of pay-as-you-go bicycle hire and electric vehicle parking bays. This seems to make little sense in the overall national pursuit of economic growth generation and stated aim of hitting certain emission reduction targets by 2020 and 2050.
What can I do to be prepared for Winter?
Last year’s Christmas was a picture postcard. A blanket of snow covered the entire country and for many of us it was quite a surprise. Planes struggled to take off and even short journeys were difficult and so responding to a property problem became somewhat of a challenge. The country was paralysed by the severe weather but have any of us learnt enough to take extra precautions this year?
Burst water pipes, slippery pathways, staff struggling to make it to work and non delivery of important materials are just some of the issues we faced throughout this period. This year we thought it would be sensible to outline a few tips on being prepared for the unexpected:
- Have to hand a copy of the essential papers; your lease and insurance policy
- Cash flow is important and relies as much on receiving payment as it does on paying for your suppliers or landlord. If you depend on the post being delivered think about other ways of receiving your money
- Have a clear communication tree that allows information to be circulated quickly to your staff, and suppliers
- Have a full list of critical telephone numbers; we would suggest your landlord’s/managing agent’s contact details and details of your business- critical staff
- Have a list of essential contractor/supplier information and responsive emergency services numbers such as plumbers, electricians, and similar trades.
- Make sure your landlord has your up to date emergency telephone numbers and also details of the current key holders should access be required
- Should it be necessary, you may wish to think about alternative premises and should this be the case then think about having the number of a commercial property agent or Serviced Office Company.
Undoubtedly it would be better to avoid such problems and prevention is better than cure! Prevention depends very much on making sure your systems are regularly serviced and monitored and it would be much better so ensure your systems have been tested and serviced before the on-set of winter. It’s not too late to have your CCTV equipment, boiler or intruder alarm serviced for the festive break and we would strongly recommend this is done.
Don’t delay as time is of the essence.
