Saved some cash during lockdown? Here’s how to make it work harder

This article is sponsored by James Henderson Wealth Management.

It’s estimated that considerable savings have been built up by some Brits during lockdown, and for many, especially younger people, this could be a once in a lifetime moment to think ahead.

If you’re one of the lucky ones who’ve been able to save money over the past year, do you have a plan for it?

You might be thinking about buying a new car, splashing out on a holiday, or simply saving it for a rainy day. If you’re thinking about saving, read on. If you’re not, read on anyway, because it might change your mind!

Jim Henderson, of Harrogate-based James Henderson Wealth Management, has some top tips for helping you get as much wealth out of your money as you can, aiming for you to live the lifestyle you want in years to come. Jim can help you prepare financially for your future, regardless of your income.

Jim says:

“People often think you need to have vast amounts of money to invest, but in reality you don’t have to be wealthy to create wealth.

“Even if you only save a small amount each month, if you plan properly now, I can help you reap rewards in later life, by utilising tax breaks to keep as much of your existing money as possible.”

Jim’s tips:

  1. Start saving sooner rather than later

Albert Einstein reportedly called compound interest the ‘eighth wonder of the world’. Put simply, the earlier you invest, the longer your money has the potential to gain interest and grow, and as Jim puts it, “what’s important for investments is time”. 

“Let’s say you’re planning to retire at age 67, and make a £200 pension contribution per month:

If you start saving at age 20, your estimated pension fund at retirement might be £349,000.

If you start saving at 30 it could be £215,000.

And if you start saving at 40, it might be £123,000.”

Please note that these figures are for example purposes only and they are not guaranteed – they are not minimum and maximum amounts. What you get back depends on how your investment grows and the tax treatment of the investment. You could get back more or less than this. 

  1. Put your savings in an Individual Savings Account (ISA)

Gone are the days when the best way to save money was to put it in a piggy bank or hide it under the mattress – or even just leave it in your current account.

If you don’t put your savings somewhere tax efficient, you could end up paying tax on any interest you gain… one of the most popular ways around this is to put it in an ISA.

Everyone gets an annual ISA allowance, meaning you can save up to £20,000 each year and any growth received is not subject to income tax or capital gains tax.

Jim explains:

“The ISA allowance is a ‘use it or lose it’ situation. Once the tax year has ended, you can’t go back for more tax-free investment. This tax year ends on 5 April, so my advice is to get organised and move some savings to an ISA this month.”

  1. Pay into your pension

New freedoms to take benefits and generally leave pension savings as tax-free inheritance have made paying into a pension even more attractive than it was a few years ago – but the tax man actually adds to your savings as well.

For most people, for every 80p you put into a pension, then government will automatically add 20p in tax relief, so a £1 contribution can effectively cost you just 80p. Higher earners can claim extra tax relief through their annual tax return, paying 60p for a £1 contribution.

  1. Speak to a professional

It’s normal to feel confused about finances, but that’s where the experts like Jim come in: he can explain everything you need to know in a way that makes sense to you.

“The word ‘financial adviser’ is scary enough for people, but we’re really just about helping people to build their finances in the best way for them.

“If our car breaks down, we see a mechanic; if our body hurts, we consult a doctor. So the same logic follows for our financial situations.”

To get in touch with Jim for advice on ISAs, pensions, or investments, visit his website. 

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested. An investment in equities does not provide the security of capital associated with a deposit account with a bank or building society.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.

James Henderson Wealth Management is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/products.

Andrew Jones MP defends supporting crime bill

Harrogate and Knaresborough MP Andrew Jones has defended a crime bill that gives police new powers to deal with protests after it was criticised as a “fundamental attack” on freedom of speech.

The Police, Crime, Sentencing and Courts Bill covers major government proposals on crime and justice, including changes to protests.

The bill passed its first hurdle this week after an overwhelming vote in favour by Conservative MPs.

All three Conservative MPs whose constituencies include the Harrogate district — Jones, Skipton and Ripon MP Julian Smith and Selby and Ainsty MP Nigel Adams — supported it.

The protest measures drawn up by ministers and police chiefs will mean more conditions are imposed on static demonstrations, including start and finish times, noise limits and penalties for activists causing “serious annoyance”.

At a meeting of North Yorkshire County Council’s Harrogate and Knaresborough Area Committee today, Liberal Democrat councillor David Goode described the bill as a “a fundamental attack on our democratic rights”.

He said it would “significantly restrict” people’s rights to hold peaceful protests and asked Mr Jones why he voted for it.

Mr Jones responded:

“The underlying principle of freedom of speech and freedom to protest is absolutely unchanged.

“This is about making sure we can protest in a way which doesn’t stop people getting to work or a hospital appointment.

“It is possible to protest without impacting others so what we need to strike therefore is that balance and that is what the bill does.”

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The bill’s second reading was passed by 359 votes to 263 on Tuesday. It also contains dozens of new measures to increase sentences for child killers and other violent criminals, as well as tougher penalties for attacks on police officers and changes to sexual offences legislation.

The most controversial part, however, are the reforms on protests, which garnered extra interest after scenes of police officers restraining women attending a vigil in memory of Sarah Everard in London on Saturday.

At present, police need to prove protesters knew they had been told to move on before they can be said to have broken the law.

The bill proposes an offence of “intentionally or recklessly causing public nuisance”, which is designed to stop people occupying public spaces to make themselves both seen and heard.

The new laws would also give Home Secretary Priti Patel the authority to define “serious disruption to the life of the community” and “serious disruption to the activities of an organisation” — a concept opponents argue is not clear enough.

Speaking at a debate in the House of Commons this week, the Home Secretary defended the proposed changes to peaceful protests which she said are a “cornerstone of democracy”.

She said:

“This bill will give police the powers to take a more proactive approach in tackling dangerous and disruptive protests. The threshold at which the police can impose conditions on the use of noise at a protest is rightfully high.

“The majority of protesters will be able to continue to act, make noise as they do so now without police intervention.

“But we are changing it to allow the police to put conditions on noisy protests that cause significant disruption to those in the vicinity. As with all our proposals, the police response will still need to be proportionate.”

Survey reveals strong business confidence in Harrogate district

A survey of businesses in the Harrogate district has found high levels of confidence, despite months of restrictions.

Harrogate law firm Berwins conducted the survey in the last week of February to gauge confidence as many firms prepare to re-open.

Almost two-thirds (63 per cent) of the approximately 50 respondents were confident about their prospects.

The figure rose to over 70 per cent when asked about the next six or 12 months, suggesting businesses are looking to the future with a renewed sense of optimism.

However, 30 per cent thought the next three months would pose challenges, highlighting short-term concerns.

Part of this growing assurance has been put down the government’s proposed road map.

While the overall handling of the pandemic by central government generated mixed responses, the phased approach to re-opening was generally well received.

Confidence in the wider business community was, however less assured. While firms are broadly positive about their own position, just 30 per cent felt the same way about the local commercial community over the next six months.

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Although that figure improved in the medium term – 50% of respondents were confident about the community over the next 12 months – the gap between business leaders’ perceptions of their own business and the wider community remained.

Paul Berwin, senior partner at Berwins, said:

“Over the past year, we have seen some fantastic examples of enterprise and innovation, which has stood many businesses in good stead. We are now also starting to see wider signs for optimism.

“Tourism and hospitality remain key strands of our local economy and play a crucial role in bringing visitors to our high street.

“I am hopeful that these sectors will be boosted by a roadmap out of restrictions, reports of an increase in people choosing to holiday in the UK and the prospect of major events returning to the convention centre as the Nightingale hospital closes.”

 

Bettys to start reopening from end of the month

Bettys is to start reopening its branches from the end of the month.

The famous Harrogate-based company will re-open its tea house in RHS Harlow Carr for takeaway food and drinks from March 29.

Bettys shops will then open to visitors on April 12, which is the earliest that non-essential shops can re-open under the government’s road map.

All Bettys cafes will then re-open on May 17, except for the Stonegate branch in York, which the company has said is too small for social distancing.

As part of the reopening, Bettys is now accepting bookings for afternoon tea in the Imperial Room in Harrogate and the Belmont Room in York from May 17.

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However, Bettys has warned the dates may change subject to the government’s lockdown rules and road map.

Bettys closed its branches completely in January.

Simon Eyles, Bettys managing director, said at the time:

“Given the severity of the coronavirus pandemic that we are currently witnessing, Bettys has decided to close its Yorkshire branches completely. This means our café tea rooms and now our shops too will be shut until further notice.”

Oatlands Drive one-way plans scrapped

North Yorkshire County Council has today dropped controversial plans to make Oatlands Drive in Harrogate one-way.

Cllr Don Mackenzie, executive member for access, told a Harrogate and Knaresborough Area Committee that the authority will not pursue the proposal.

Instead, a 20 mile per hour zone will be included in plans from next week.

The one-way proposal proved controversial, with 57% of respondents to an initial county council consultation opposing the proposal.

Cllr Mackenzie told the committee today:

“We decided, and I hope this committee agrees with that decision, that in the overwhelming view of local residents and that of the local elected member, that we should drop that option.

“Therefore, with effect from next Monday when the detailed consultation starts, we will be presenting a detailed design which does not include one-way working.

“It will include, however, a proposal to make the whole area on Oatlands Drive from York Place to Hookstone Road and all the saints residential area a 20 mile per hour zone in order to slow traffic down and bring about an element of safety for walkers and cyclists.”

Cllr Mackenzie added that the council will also look to improve the toucan crossing on York Place, building platforms at crossings at Slingsby Walk and outside St Aidans school.

Traffic filters will also be proposed for St Hilda’s Road and St Winifred’s Road.

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Harrogate council halts covid business grants

A “very high number” of Harrogate businesses applying for coronavirus support grants could mean the council runs out of cash under one scheme sooner than expected.

Harrogate Borough Council was allocated £4.6m as part of the government’s Additional Restrictions Grant scheme to help firms forced to close during lockdown. So far it has handed out more than £2m in two phases of payments.

It had planned to open a third phase tomorrow but now says this is “on hold” because it is still working through a backlog of applications.

And because the council is not expecting any further grant money from the government under this scheme, it could mean some businesses expecting a third and final payment later this month may not get it.

The council said in a newsletter to businesses:

“We received a very high number of applications in phase two, far more than anticipated, and we are continuing to work hard to complete assessment of these.

“Until we have assessed and awarded all the grants in phase two we are unable to commit to a further grant funding phase.”

The high number of businesses asking for financial support shows how seriously the strain of the pandemic is still being felt in Harrogate’s shutdown sectors of the economy and could mean all of the £4.6m is used up before the third phase is opened.

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Some business owners who had been expecting a third payment told the Local Democracy Reporting Service that the grants will be “the difference between survival and closure” for many firms as they also called on the government to provide more support.

A Harrogate Borough Council spokesperson said:

“We recognise that many businesses across the district are relying on this financial support for their survival, so that’s exactly why we’ve been working as hard as possible to get money out the door.

“In total, across all schemes since the first lockdown, we’ve distributed £70 million to more than 5,000 businesses.

“There are strict criteria for the various grant schemes, and the different phases of those schemes, and we’ve had to make sure businesses are eligible for the support on offer.”

Under another scheme, the Local Restrictions Support Grants, the council was allocated £23m and up to the end of February had paid out £18.5m.

Almost £100,000 has also been paid out to pubs that do not serve food and are eligible for a one-off payment of £1,000.

Harrogate Borough Council said it was now keen to signpost towards the government’s Restart Grant, which will aim to help businesses get back on their feet as lockdown is lifted.

Non-essential retail businesses able to reopen from 5 April will receive grants of up to £6,000, while hospitality and leisure businesses will receive up to £18,000 before they make a full return on 17 May.

For more information go to www.harrogate.gov.uk/business-investment

Man charged after police officer struck by car in Harrogate

A 30-year-old man has been charged with three offences after a police officer suffered a fractured kneecap in Harrogate on Tuesday.

The man has been charged with causing serious injury by dangerous driving, driving whilst disqualified and use of a motor vehicle without third party insurance.

The incident happened at 3.20pm when officers approached a suspicious vehicle in Bewerley Road, Harrogate.

A male police officer underwent surgery and has remained in hospital since the incident.

A 35-year-old man and a 24-year-old woman who were also arrested have been released on conditional bail.

All three people are from Leeds. North Yorkshire Police has not revealed any names.

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Harrogate chippy sells deep fried creme eggs

A Harrogate fish and chip shop has put an unusual twist on the Cadbury’s Creme Egg by dipping them in batter and frying them.

Sophie Phillips, who owns Harrogate Fisheries on Skipton Road with her partner Tim, said the cream egg innovation “sounds totally wrong” but they have been a hit with customers.

We took the unusual delicacy to the people of Harrogate who gave their verdict.

Watch the video below:

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Although the eggs won’t break the bank at a cost of £1.50 each or three for £4, their calorie content is unconfirmed.

Sophie added:

“We had some Creme Eggs and a member of staff wondered what it would taste like deep fried.

“We tasted it and thought wow — this is pretty nice!”

“It’s not to everybody’s tastes. It’s just a bit of fun but it’s got people talking. It’s just a naughty treat.”

Harrogate hospital’s intensive care unit completes £1m refurbishment

Harrogate District Hospital’s intensive care unit has completed a £1 million refurbishment.

The 12-week refurbishment has increased capacity, meaning the unit can now care for 11 patients rather than 10, and created a better environment.

Ross Stewart, a patient on the unit for many weeks in 2020 pre-covid, returned today to cut a ribbon before patients were transferred back in.

The unit was stripped down to its shell and rebuilt. Five of the 11 beds now have their own side rooms.

The hospital’s experience of the pandemic shaped the new design. For instance, the side rooms help to contain infections.

The unit has new TVs, flooring, ceilings and doors. Wall cladding and dimmable lights have been installed, and there are wall murals and LED ceiling panels featuring blue skies, clouds and trees in two of the side rooms.

The more open design means nurses can see all the patients from their station.

New ICU unit at Harrogate District Hospital

Daylight, open space and a clean feel are key features of the new design.

The last 12 months have been unprecedented for hospital staff. ICU staff have been caring for numbers never seen before.

Intensive care consultant Dr Sarah Marsh said:

“This has gone above and beyond what we could have expected. It’s not just about surviving it’s about giving that survivorship some quality and the environment in the ICU plays a huge part in that.

“Something as simple as having more natural light and dimmable lights is very important for the patients. The unit will really help to improve patients’ outcomes for sure.”

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The increase in patients due to covid forced the unit to relocate into a larger ward, which presented the opportunity to refurbish the unit without disturbing patients.

The Harrogate Hospital and Community Charity donated some of the funds for the work, which enabled a relatives’ room to offer a pull-down bed for relatives to stay in.

Harrogate’s rural bus services not good enough, says councillor

A Liberal Democrat councillor has said he was “flabbergasted” by Transport Secretary Grant Shapps’ claim this week that Harrogate buses are among the best in the country.

Mr Shapps told Parliament this week that Harrogate’s “frequent modern services” has made buses “the transport of choice”.

His comments, alongside the launch of a new national bus strategy, prompted Chris Aldred, who represents Harrogate Fairfax, to contact the Stray Ferret.

Cllr Aldred said although Transdev’s “swanky number 36s” that link Harrogate, Ripon and Leeds provided a good service, rural areas suffered from infrequent or nonexistent services.

He said:

“Travelling on a bus within the Harrogate district is far from being ‘the transport of choice’ simply because there is often no bus to catch.

“I am lucky to represent a ward relatively close to Harrogate town centre. My colleagues representing rural wards within the district tell horror stories of villages and towns receiving so-called services of one or two buses a day.”

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A 2019 study published by the Campaign for Better Transport found that more than 3,000 local bus routes have been lost or reduced over the past decade.

Cllr Aldred said the Harrogate district’s rural residents have felt the impact most keenly.

He added Harrogate Borough Council’s overview and scrutiny commission, which he chaired, had already identified bus provision as something to examine in detail.

Cllr Aldred said:

“These limited services often stop at teatime, making nighttime trips impossible. Sometimes there are none at all on a weekend and those that do run are often at very inconvenient times for those planning trips to the larger towns within the district.”

The Harrogate district is served by two private bus companies: Transdev’s the Harrogate Bus Company and Connexionsbuses.

Responding to Cllr Aldred’s comments, Harrogate Bus Company’s general manager Frank Stanisauskis said:

“Our 36 service is a proven success in attracting more people to choose the bus and provides a much valued service to villages on the route, including Harewood, Pannal, Killinghall, Ripley and South Stainley. Even during lockdown, when customer numbers represented 20% of normal pre-pandemic levels, we still operated over 80% of the usual timetable.

“As in most English counties, rural bus services in North Yorkshire are generally provided with local authority support. Some counties, such as Cumbria, have ceased to fund rural buses altogether, but we continue to work with North Yorkshire County Council and other external partners to sustain rural services wherever we can.

“Pressure on council funding over the years, and not any lack of desire to keep buses going, has seen a few rural services provided by various operators withdrawn. These impacted very few people, and both ourselves and the county council have to prioritise limited resources to support services which benefit the most people.

“Our obvious rural route is the 24 between Harrogate and Pateley Bridge: we operate it without subsidy and at a loss, but we persevere, not least because we know its importance to the people of Nidderdale.”