Fisher German Newsletter Summer 2016

Cereals 2016

Fisher German attended Cereals 2016, the leading technical event for the arable industry, at Chrishall Grange near Duxford in Cambridgeshire on 15 and 16 June.

The event which attracts more than 25,000 farmers, agronomists and industry professionals each year, is situated on a working farm and is unique in displaying machinery in action and living crops. Cereals offers working demonstration areas for machinery, seed and agricultural chemical manufacturers and distributors. It is also attended by key legal, accountancy and professional firms specialising in rural property.

Fisher German professionals from across the firm manned the stand with representation from Farms and Rural, Agency, Planning, Renewables and Telecoms as well as Maria Wade, HR Director.

With a series of mini-events, the opportunity to win a magnum of champagne and free hog roast baps on offer, we had many visitors to the stand across the two days.

David Merton, Rural Sector Head, said: ‘It was an excellent two days and a great opportunity to meet farmers, landowners and professional contacts. Our stand really showcased the Fisher German brand and the atmosphere showed what a personable and enthusiastic team we have.’

The event also saw the launch of the Fisher German Farms department Model Farm and Benchmarking analysis. The Farms department have extracted data from managed farms across the midlands to establish a cost of production for winter wheat. Tom Paybody commented “We have real benchmarking analysis from businesses which have already made significant changes to their cost structures and are therefore, genuinely able to advise on optimum and target cost levels for farm businesses who wish to adapt and prosper. In an increasingly challenging environment some form of comparative analysis or benchmarking is invaluable.”

For more information about the farms benchmarking project contact Tom Paybody here

You can read more about the model farm in the current edition of the Fisher German magazine here

Fisher German and Brexit

There is no doubt that the Brexit referendum result has created a challenging environment for our clients. The uncertainty around the consequences of leaving the EU will remain for some time, and we appreciate that our clients will need to consider the impacts on all aspects of their business as an ongoing process, and we are here to help. Whilst there are challenges and risks ahead, there will also be opportunities, unintended consequences, confusion and delays and we feel it is our responsibility to guide you through the process.

Amid the uncertainty, there seem to be some initial positives.

The Bank of England has made it clear that it will support the banks and stimulate the economy. In reality this means that low interest rates look set to continue.

Whilst currency exchange rates will be subject to volatility, weaker sterling should help exports.

The prospect of reduced regulation will be welcomed by most business, although we think that most governments are better at talking about deregulation than actually doing it.

Farm subsidy seems to have been accepted as a necessity during the campaign, although it remains to be seen what a UK farm policy will look like.

Immediate concerns

However, there are some immediate concerns about Brexit.

You will be aware of the many predictions on the economic impacts and property related businesses are as vulnerable as any, particularly in a volatile market. It is clear that the UK economy remains fragile.

Tax rises and further cuts in public spending seem inevitable with consequences on many businesses.

The reduction in immigration is likely to lead to labour shortages in the agriculture, food and construction sector.

The initial reaction of EU states to UK access to the single market without freedom of movement is lukewarm at best.

Fisher German and Brexit

There is no doubt that Brexit will challenge each and every one of our clients over the next decade. We work with a diverse range of clients from traditional estates, institutional owners, utility companies, commercial businesses, farmers and property developers and we will work with all of our clients to try and solve the challenges that Brexit may bring.

We feel that with our knowledge, track record, resilience and ability to think outside the box we are well placed to advise, mitigate and benefit from the impacts of Brexit in the property sector.

Business rates

Business rates - what’s gone wrong?

It has been argued by the Government that the present rating and appeal systems are outdated. At the moment, anyone wishing to submit an appeal simply has to state if the assessment is excessive, incorrect or unfair, with minimal explanation as to why, in order to have their appeal dealt with. This has led to 900,000 appeals against the 2010 business rates listing with 250,000 of these still outstanding. Of those appeals that have been settled, 70% resulted in no change to the rateable value.

At present, commercial properties with a rateable value of &6,000 or less can qualify for 100% small business rates relief (SBRR) providing they fit the criteria. Further relief is available for those properties that have a rateable value of between &6,001 and &12,000 with the achievable discount being tapered.

Currently, those properties with a rateable value of between &0 and &18,000 have a multiplier of 48p in the &1 applied. For any properties with a rateable value higher than &18,001, the higher rate multiplier of &0.493 in a &1 is applied.

The key changes

The Government has committed to increasing the level for which businesses can qualify for 100% SBRR up to a rateable value of &12,000. Properties with a rateable value between &12,001 and &15,000 will potentially be able to qualify for relief with the discount again on a tapered basis. The threshold for which rateable values will be multiplied by the standard business rates multiplier of &0.48 will increase from &18,000 to &51,000.

The new appeal process – Check, Challenge, Appeal

Check

There will now be only one opportunity to check a rateable value once revaluation has taken place. The checking process will take up to twelve months to conclude, with fines payable for providing false information regarding property specifics and measurements.

Challenge

An application to challenge the rateable value must be completed within four months of the end of the check process. Instead of being able to state briefly why the rateable value could be wrong as before, the rates payer must now provide an alternative valuation which must include all rental evidence, a complete argument to justify the appeal and any relevant case law.

Appeal

Following this, the appeal stage could take up to eighteen months for a resolution to be reached. There will be one opportunity to appeal this decision within four months of the initial appeal decision, with a fee of up to &300 payable which will be refunded if the appeal is successful.

Comments

It is clear that the Government intends to make it much more difficult and technically-based to successfully appeal a rateable value. In our opinion, it is difficult to see how the Government has settled on this new Check, Challenge, Appeal process as many businesses were calling for more transparency and a shorter appeal process with local government also calling for a shorter process but higher application fees and fines for the provision of incorrect information.

The changes here will make it more challenging to successfully win an appeal of a listing in a timely manner, particularly with regard to the additional expertise required when submitting an application.

The revaluation will have ring-fenced a considerable amount of people who were not paying rates previously, with particular focus on the renewables market. We have already received a number of instructions and acted successfully in giving business rates advice for rural clients with solar farms, wind turbines and other renewable energy schemes.

Timeline

If you are liable for the payment of business rates, you should have already received a document requesting further information in order to ascertain the rateable value of your entity. We would strongly advise that you respond to this document, if you would like any assistance or advice on how to do this, our team are here to advise you. In the absence of complete information, in our experience, the Valuation Office Agency (VOA) has only proceeded to assume worst case scenarios. This has inflated rateable values and the amounts owed with incorrect commission dates on renewable projects.

The VOA is in the process of completing the 2017 Business Rates list and will spend the next few months liaising with local government to confirm the 2017 uniform business rates (UBR) multiplier. At present, we understand that draft 2017 rateable values will be published on 30 September 2016. Representations can then be made to the VOA in order to make any changes that are required.

Between October 2016 and March 2017, revised draft rateable values will be published which will give rate payers one last opportunity to check their rateable values and inform the VOA of any clear factual errors. During this period, we also expect the announcement of the UBR multiplier for 2017/18 and any transitional or regional adjustment arrangements which will be made.

We understand that, as of 31 December 2016, the Government is to clarify its full review of the rating system and publish it in the public domain.

The new rating list will be published on 1 April 2017 with all values becoming effective immediately. Appeals can then be submitted against a rates listing.

Further information

If you would like to discuss a potential instruction or have any questions about business rates, please contact Rob Haigh of the Commercial team here.

Property market update

Will Friday 24 June 2016 go down as the day that the housing market imploded, or whilst there is confusion in the political arena and confusion on the football field (!) might there be a little more clarity from those who are focused on buying and selling. It would seem so.

Far from being a shaky first week post Brexit, this was a really strong week for the agency team. We have picked out a few properties which have sold ranging from cottages, to farm houses, modest homes to mansions! We have also agreed a very good number of new sales.

Click here to view all our latest properties

A day in the life of a utilities surveyor

Emmie Collier describes a typical project she has undertaken whilst working on the National Grid contract as a utilities surveyor.

Acting on behalf of National Grid will allow you to work on a variety of projects ranging from electricity work (Electricity Act 1989) to gas pipeline work (the Gas Act 1986 as amended by the 1995 Act). This in turn then leads into compulsory purchase and compensation work, which often arises as part of National Grid schemes.

The Project

In the autumn of 2015 we received instruction from National Grid Gas to arrange access and deal with any associated issues that arose in connection to a gas pipeline repair on Wallasey Bridge & Poulton Bridge Road which is located on the Merseyside Dock. Following a site visit it quickly became apparent that the gas pipe was leaking and therefore an emergency repair was required before the winter months which would result in a cut off gas supply to the nearby housing estates.

National Grid statutory rights

Despite having the Gas Act 1986 (as amended) Schedule 2, paragraph 7 rights to exercise in order to undertake repairs and replacement to gas pipelines, the pipe in parts was not accessible due it being located 10 metres under the concrete harbour. A diversion of the pipe was required and here we had to rely solely on negotiations with the landowners as National Grid do not have any statutory rights to divert a pipeline outside their current easement strip.

Issues arising on site

Emergency access was taken on site to undertake temporary repair where the pipe was leaking.

The contractors were faced with a number of elements that caused delays with the repair. These included:

Poor weather – caused excavation digs to flood over pipe.
Contamination of water which had to be pumped and transported away to be treated.
Contractors severed the grantor's electricity cable (despite being aware of this cable) taking down part of their network on site (fortunately no one was seriously injured!).
Site security – a number of vandals attempted to break into the site and damage equipment and as a result the site entrance was manned on a 24 hour basis during the critical stage of the works.
The grantor would not allow all the works to go ahead at once as the new easement for the diversion of the pipeline had to be completed with solicitors before National Grid could complete the second part of the works.

Fisher German’s role

Following the initial Land Registry searches to identify the landowners we make contact with them to arrange access to their land for the pipeline repair. Fisher German were then challenged to negotiate a new easement for the pipeline diversion with the very commercially minded grantor.

Following a figure being agreed between Fisher German on behalf of National Grid and the grantor a number of issues evolved with solicitors. The key issues included:

A tripartite agreement between the grantor, National Grid and another Utility company following the discovery of a new water pipe which encroached onto the six metre easement of the proposed National Grid pipe.
A lift and shift clause including the terms in which the clause could be exercised by the grantor.
The discharge of conditions of the original easement including the right to leave the redundant pipeline in the ground.

Going forward

The easement is almost completed with solicitors and therefore the second part of the works are expected to take place in September, taking approximately twelve weeks.

Following the completion of the works, Fisher German will then undertake compensation claims that will be due to the landowner for any loss, damage, inconvenience and time spent as a result of the National Grid gas pipeline repair work.

For further information, contact Emmie Collier on 01530 410 680 or email here

for further information about the work of our utilities & infrastructure sector, click here

Green Belt development secured

Fisher German have secured consent at planning committee for the relocation of an existing landscape business to Noake Farm in Hucclecote, Gloucester.

The business at Longford was in need of relocation due to a large scale residential development taking place on their site. The move will also provide an opportunity for the Company to expand their operations with two large workshops/offices and the ability to use adjacent agricultural land as a nursery for the production of “home grown” trees and shrubs. The new premises are within a 5 mile distance of their previous base, allowing local labour to be retained.

Perfect Fit

Noake Farm, located on the edge of Gloucester, exactly met our client’s criteria, although the site is located in the Green Belt. The proposed development required the demolition of a number of old farm buildings and the erection of two new agricultural style buildings (in excess of 1200 sq m total gross floor area) as well as the conversion of a listed coach house to a residential dwelling.

Given the location within the Green Belt, Officers considered that the proposals constituted inappropriate development offering no very special circumstances to allow the development by exception and as such, the application was recommended for refusal. However, by negotiating a small reduction in the size of the buildings and emphasising the importance of retaining the business in the area, including the employment of over 75 local staff, Members voted to overturn the Officers' recommendation and consent for the scheme was granted.

The client is now swiftly seeking to discharge conditions to enable the business to relocate as soon as possible.

Fisher German have, in recent months, seen an increase in planning and building consultancy activity in the “South West”, in particular. In addition to securing development in the Green Belt, we are currently engaged as designers and contract administrators on three separate listed building projects, located close to the “M5 corridor” between Gloucester and Bristol.

For further information on our planning services click here

Time for a change

With time comes change. The last 6 years has more or less seen a full life cycle in the farm scale renewable energy sector, epitomised by rapid deployment of Feed-in Tariff (FIT) and Renewable Heat Incentive (RHI) driven schemes and the emergence of a vibrant industry in the UK stretching from the tip of Scotland to the depths of Cornwall. However, more recently, the withdrawal of political support, general uncertainty and severe cuts to subsidies have seen a swift demise of the prosperous industry. The phrase ‘boom and bust’ aptly applies.

For businesses involved in the renewable energy sector – be those technology manufacturers, suppliers or consultants such as ourselves – there has been a need to react. Some of the big players have chosen to turn their attention to overseas markets, some have liquidated leaving their customers with no one to turn to and void warranties, whereas others have taken a moment to step back, re-evaluate and re-focus their service offering for the benefit of their existing client base and others that may wish to join. Fisher German falls into the last category.

Heritage

As a business we have a history stretching back nearly 200 years and have been involved in the energy and renewables sector now for around 15 years. We have helped and advised literally thousands of customers with their renewable energy projects during this time, from the early wind farms to more recent and highly complex Combined Heat and Power plants. With the focus being taken off new generation from renewable technologies, opportunities to capitalise from energy based diversifications have without doubt dwindled in the short term, but there is a need to balance the supply of electricity into the regional and national grid network and this offers new hope and the prospect of the vibrant industry returning in the medium to long term.

Sustainable energy sector

That is why we have used this juncture to revise our brand and offering and with immediate effect we will be operating as the ‘Sustainable Energy Sector’.

So what does this mean?

It means the team at Fisher German will not only offer the same great services that it always has done to the renewable energy industry, but it will now be helping clients with new and emerging technologies required to serve the UK energy network, such as energy storage solutions and efficiency driven schemes.

It is important to react to change and adapt accordingly and the Fisher German Sustainable Energy team continue to be here to help you do exactly that.

For more information click here or email Darren Edwards here

If you would like to subscribe to our sustainable energy newsletter, please email here

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