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news opinion HSBC launches £200m fund When is enough enough?


Revelations from the Panama Papers data leak have brought the debate on the ‘morality of tax avoidance’ back into the spotlight.


And with several world leaders living examples that power corrupts, fraud is enjoying its share of bad press too.


It begs the questions: when does an individual or business actually have enough? And at what point does healthy ambition cross the murky divide into self-serving greed?


But the nature of the beast is that the goalposts will keep moving – and no matter how much is ‘had’, it is never enough. Then again, isn’t it natural to want to grow your assets – negligent in fact not to?


The issue of tax avoidance is far from black and white. When, if at all, is it morally wrong? Is managing your finances to pay the least possible amount of tax any less right than selling your product to the highest bidder? Doesn’t aggressive taxation discourage businesses from growing to their full potential? And doesn’t a seemingly-extortionate rate of tax push the highest earners to preserve their wealth?


If lawful tax avoidance is morally shameful, surely it is the law that should be changed, not to mention simplified.


But that’s no easy task and there’s certainly no quick solution. And naming and shaming, and public disclosure of tax returns are probably not the answer. Until the tax law can close the loopholes, how we manage our taxes remains a matter of conscience – yet another grey area.


Perhaps the questions around tax avoidance should be: ‘What if everybody did the same thing?’ ‘Is this a win-win for the company and its community, or just the company?’ ‘If our tax returns were published, how would it reflect on the business?’


Essentially, taxes are the price we pay for a better society. As key business leaders and decision makers in the region, let’s be entrepreneurial, let’s grow the region – but ask these questions along the way.


Carry de la Harpe Editor


www.businessmag.co.uk


HSBC recently launched a £200 million lending fund to support small and medium-sized enterprises (SMEs) in South Hampshire and Dorset.


The fund is the largest package of support for SMEs in the area ever announced by HSBC, £50m more than was allocated last year. The increase is part of a broader commitment to make banking cheaper and simpler for customers.


Along with the new allocation is a broader package of support which includes a free banking offer of up to 18 months for start-ups and 12 months for switchers; the introduction of year-long fixed-price £5.50 monthly account tariff, to commence at the end of a customer’s initial free banking period.


Also included are a reduction in the personal guarantee fee from £80 to £10 for any lending facility above £10,000; the launch of the business lending eligibility checker (BLEC) which is an online tool offering potential new customers a credit decision in principle for loans of up to £30,000 in under two minutes; and a free text alert service for informal overdrafts, which will help customers avoid paying informal overdraft fees and interest.


Nigel Davis, HSBC’s regional director for business banking in the Western and Wales region, said: “We want to be the bank of choice for South Hampshire


and Dorset SMEs, reinforced through our desire to lend more to local businesses, by committing the funds to do so, and by making banking easier and cheaper to help our customers grow.”


Ian Stuart, HSBC’s head of UK commercial banking, said: “SMEs are the driving force of the UK economy and we are here to support them, whether they are a start-up or established business, focused either on the domestic market or looking to trade internationally. This fund underpins our support by putting SMEs in a stronger position to be making investments that will stimulate local economies and create more jobs.”


Anna Soubry, the small business minister, said: “We have a record number of small businesses driving our growing economy and while the picture is improving, access to finance remains an issue for many of them. It’s absolutely right that banks such as HSBC continue to develop their support for smaller businesses. I also want to see more of these businesses taking advantage of what’s on offer, both from banks and alternative lenders, to help them grow, invest and create jobs for people.”


HSBC supports over one million businesses in the UK, approves over 89% of lending applications, almost 90,000 SMEs opened an account with the bank in 2015 and its gross new lending for SMEs was up 34% in the year.


Keith Bloxsome Covec riding high with new financial backing


Southampton-based Covec, manufacturer of the Bull-It range of specialist protective clothing for motorcyclists, is aiming to triple global sales in the next 12 months after securing new financial backing from Clydesdale Bank.


The financial backing will allow the business to invest in increased stock levels to meet growing demand, and to develop new high-performance products. There are also plans to expand into the personal protective equipment sector for workers in hazardous environments.


The Bull-It range, which includes jeans and jackets, is made of a technical textile created by Covec using fibres also used in Nasa’s Mars Rover expeditions. It is designed to withstand the abrasion and heat created when motorcyclists fall from their bikes.


The clothing incorporates a thermotropic liquid crystal polymer and Covec is the only company in the world which applies the same technology to high performance clothing.


With annual sales of around £1.2 million, the management team at Covec is anticipating sales to reach £3m by the end of the year.


The deal for Covec is the first from Clydesdale Bank’s emerging technology unit – a team created at the end of last year to support high-growth technology businesses to access finance.


Keith Bloxsome, founder of Covec, said: “We have been self-funded until now. Clydesdale Bank took the time to understand the challenges we face, and focused on our sales potential.”


THE BUSINESS MAGAZINE – SOLENT & SOUTH COAST – MAY 2016


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