In early 2019, Projekt Hansa will be publishing thorough business profiles on regions of the EU where business ventures are particularly interesting.
This week’s article focuses on our second business profile which is on Lincolnshire, England.
Lincolnshire is situated in the East Midlands region of England. Bordering the North Sea, it boasts a pedigree historical background as the birthplace of Isaac Newton, and strong maritime heritage linked to the Hanseatic League (with Boston ranked as a port of the Hansa).
Lincolnshire is a prime location for European businesses, given its geographical position. It offers trading routes to Scandinavia, the Baltic Sea, Eastern Europe and the Channel while also lending itself well to innovation and growth. Low business set up costs and good logistical connectivity to the rest of Britain are particularly advantageous.
During 2015, Greater Lincolnshire businesses exported goods and services to the value of £2.9bn, representing 1% of total exports by UK businesses. This recent performance shows that, relative to the size its economy, Greater Lincolnshire is dynamic, performing well and achieving good value on its exports.
Here is an overview of leading industries in the region:
- Lincolnshire is of paramount importance when it comes to being a global trade hub for shipping. Its ports and logistics industry employ around 18,000 people and generating £700m per year.
- Ports such as Grimsby and Immingham account for 59.1m tonnes of cargo each year - the largest amount of cargo of any UK port
- This sector accounts for about 16% of jobs in the region, with a value of £1.8bn per year. Such stability and growth has brought increased investment, into the millions, from large companies, such as Siemens, TATA Steel, Dynax and Lincat.
- There is an estimated 3,100 people employed by 150 companies across Lincolnshire working in this sector
- The UK government recently approved the £450 million Able Marine Energy Park (AMEP) investment, which is expected to create anywhere from 4,000 to 10,000 jobs for the region.
- This is an opportunity for Lincolnshire to become a major hub within the UK’s renewable sector.
- The technology industry employs some 16,000 Lincolnshire residents in the digital sector, and nearly 2,000 ‘digital’ businesses operate within the county. As a result, this sector is currently worth £779m.
VAT + Tax
Corporation tax in the UK is 19% — one of the lowest in Europe — with plans to drop it to 17% from 2020.
VAT is set to 20% but has a reduced rate of 5% for home energy and renovations, as well as 0% for life necessities.
The business rate tax is set by local councils and is based on how much a business earns. Small business in Lincolnshire can benefit from a wide variety of relief scheme offered by the local councils.
The Department for International Trade (DIT) is an important instrument in enabling business that wish to expand into the international market.
Furthermore, funding is available at local level for innovation from 2014 to 2020. There are at least three Local Enterprise Partnership (LEP) which are voluntary partnerships between local authorities and businesses to help determine local economic priorities, lead economic growth, and job creation within the local area.