Richard Burge CEO London Chambers of Commerce

World-class

jewel in the crown

It’s fair to say that Richard Burge has had a challenging year. Since he took over as CEO of London Chamber of Commerce and Industry (LCCI) in February 2020, the world has been hit by the biggest health pandemic in living memory and lives and livelihoods have been turned upside down.

With many

businesses hunkering down and just looking to survive in these difficult times, it seems slightly incongruous to embark on a mission to promote London as a premier destination for world trade – but that’s exactly what Richard is doing with great vigour and enthusiasm.

His belief is that if this message is marketed to the world effectively, the whole country stands to benefit.

“London is the jewel in our country’s crown,” he says. “It’s a pearl richer than all of its tribe and should be treated by Westminster as such. That’s not to say that London is more important than or separate from the rest of the country but if we don’t champion our best asset, the resulting wealth and job creation won’t filter to other parts of the country.

“In short, there can be no levelling up in the UK if London levels down. The growth of London is absolutely critical to the health of the national economy.”

While the UK capital is rightly viewed as an international financial services hub and primary gateway to Europe and beyond, Richard is keen to point out its other assets, including a growing number of small, indigenous businesses built on a culture of innovation and entrepreneurialism.

“London businesses are run by people who are hugely adventurous,” he says. “There’s a marvellous sense of diversity here, although there needs to be a greater effort to be more inclusive.”

Richard’s words are based on a wealth of experience in international trade and global affairs, particularly in relation to social impact investment and the use of innovative technology.

“Brexit has happened, whether we like it or not,” he says. “The deal we have is better than no deal and now it’s time for London businesses – and businesses around the country – to seek opportunities to create jobs and foster growth. London is outward-looking, not just to Europe but to the rest of the world.”

An independent advisor on international affairs, he has had a varied career that has seen him lead four multi-million-pound organisations including a famous charity, a UK government agency, a private company and a membership body over a total of 18 years.

He has been on the board and a non-executive director of five multimillion-pound operations and has worked in more than 55 countries, principally in emerging economies, specialising in Africa, the wider Commonwealth, and post-conflict situations.

He’s acutely aware of the challenges posed by Brexit, yet believes it’s time to look forward, not back.

“Brexit has happened, whether we like it or not,” he says. “The deal we have is better than no deal and now it’s time for London businesses – and businesses around the country – to seek opportunities to create jobs and foster growth. London is outward-looking, not just to Europe but to the rest of the world. “It’s not simply a case of how London and the UK can benefit, either; how can our capital city add value to the world in terms of its social and economic impact, sustainability and inclusivity?”

It’s clear that London, with its ten million people and 880,000 businesses, has the potential to influence the global debate on macro issues such as climate change, economic prosperity, poverty and social mobility. The size and diversity of its business community highlights the importance of having an organisation such as LCCI in place to act as a focal point for companies and to build links with Wandsworth Chamber and other chambers that operate across London’s 32 boroughs.

Richard says: “There’s no way that one organisation can cater for the needs of every type of business in London. That’s why it’s vital that LCCI continues to work with Wandsworth Chamber, our chamber affiliates and the London’s Local Chambers (LLC) network to represent our businesses in the context of London as a world city.”

“It’s clear that London, with its ten million people and 880,000 businesses, has the potential to influence the global debate on macro issues such as climate change, economic prosperity, poverty and social mobility.”

CASH FLOW IDEAS for struggling businesses

Coronavirus has caused significant turbulence for businesses of all sizes.

Alex Taylor, Director While the UK Government has introduced many measures to help, including the Coronavirus job retention scheme and self-employment income support scheme, now is the time to critically review your business’s tax profile and see what measure can be put in place to help with cash-flow.

Research & Development (R&D)

The R&D scheme is a Government incentive designed to reward companies who carry out Research and Development. This is a widely underused scheme, and the Government has committed to raising R&D investment significantly. A common misconception is that the R&D scheme is only available to firms carrying out pure scientific research in a laboratory. R&D relief can potentially be claimed where a company is overcoming any scientific or technological uncertainty resulting in an overall advancement in that field. The R&D scheme provides an enhanced corporation tax deduction in respect of qualifying expenditure. However, the most attractive feature is that loss-making companies can surrender the enhanced deduction for a repayable tax credit.

Staff incentivisation

In order to bounce back to profitability and growth, businesses need to retain key employees but at the same time may be finding it difficult to match salary levels paid elsewhere. An alternative to a higher salary is to introduce one of the Government approved share schemes such as Enterprise Management Incentives (EMI). EMIs are typically aimed at small entrepreneurial businesses allowing share options to be granted to key staff on a tax efficient basis. As well as the tax advantages, EMIs are an excellent incentivisation tool for employees who can benefit from any future growth and success of the business.

Capital allowances

Capital allowances are a valuable tax relief for businesses. In particular, the Annual Investment Allowance is available to all businesses and allows a 100% tax deduction for qualifying plant and machinery in the period. This allowance has been temporarily increased from £200,000 to £1million until 1 January 2022. Therefore, it is advisable to critically review capital expenditure incurred to maximise claims which can be made.

Tax losses

Where the business is recording a loss, it could be possible to carry this loss back against a profit recorded in the previous 12 months and claim a tax repayment. In this scenario, it is beneficial to be submitting the corporation tax return as soon as possible to accelerate the refund from HMRC.

Any reader interested in discussing their business accounting and taxation requirements or outsourcing some of their day to day accounting tasks can telephone 0208 789 8588 or email info@kirkrice.co.uk to arrange a free call or initial meeting.

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