londonaccountant - ICAEW

londonaccountanticaew.com/london november/december 2010 figuring in the capital’s futurethe search forhidden talentsolving the recruitment puzzle

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NEWSTAX: CHANGES TO PAYEOPERATION PROPOSEDRecent sensational headlines in the presson the PAYE system have concentratedon just a small part of an attempt by HMRevenue & Customs to explore possible waysforward in its operation. The department’srecent discussion document, Improving theOperation of Pay as You Earn, was publishedon 27 July – long before the document waspicked up by the national press, writes AdrianMansbridge.There is a great deal of the 29-pagedocument that makes sense. The ‘offending’area of the document is in Chapter 5 underthe heading ‘centralised deductions’. At para5.6 it suggests that the employer could senda gross payment of an employee’s salarythrough an electronic payment system to acentral calculator where deductions duewould be made and retained by HMRC, withthe balance proceeding to the employee’sbank account. It is, however, difficult toimagine a situation where all of anemployee’s money is sent to HMRC orthrough an HMRC-inspired piece oftechnology where it is split between theemployee and HMRC.What is more feasible is for gross taxablepay to be sent electronically by the employerto HMRC, who then gets the figures backfrom HMRC showing the net to be paid tothe employee and the amount due to HMRC.This electronic data could be made availableto the employee in lieu of a payslip (althoughthe discussion paper envisages the possibilityof doing away with payslips).It is a struggle to see a situation where themoney itself goes anywhere other than whereit should or is entrusted to a governmentbureaucracy for allocation. That, surely, is astep too far?TAXATION COMMITTEEThe LSCA’s Taxation Committee is seekingnew members. The committee responds toconsultation and other papers on taxationmatters issued by HM Revenue & Customs,HM Treasury and other bodies. It providesthe opportunity for lively debate and selectscertain topics for broader discussion andpublication. Members in industry andcommerce are particularly welcome.Contact Gay Jordan on 01844 291490 orgayjordan@kiboko.freeserve.co.uk2011 LSCAANNUALDINNERAdrian Mansbridge is chairman of the LSCA Taxation Committee. Read the full article atwww.icaew.com/londonaccountantFINANCIAL REPORTING: RADICAL CHANGESTO LEASE ACCOUNTING ON HORIZONWill aircraft appear on the balance sheet?The International Accounting Standards Board has issued an exposure draft that wouldradically alter the accounting for leases. The exposure draft, Leases, proposes to replacethe current standard, which distinguishes between operating and finance leases, with a newaccounting model under which all leases would be recognised on the balance sheet.While investors may welcome the proposals, companies may not. The proposals could leadto substantial increases in reported assets and liabilities for many companies that use operatingleases.Read full article by Edward Haygarth, chairman of the LSCA’s Technical Committee, atwww.icaew.com/londonaccountantBooking is now open for the LSCA AnnualDinner on Friday 18 February 2011 at TheBrewery. This is an opportunity to entertainclients, colleagues and friends.LSCA president Samantha Russell will hostthe event, and our key speaker will be BarryHearn, ICAEW member and a well-knownsports promoter and entrepreneur – primarilysnooker, darts and boxing. Barry is alsochairman and controlling shareholder ofLeyton Orient FC. He will be featured in theJanuary/February issue of London Accountant.After dinner, doors will open to anadjoining room where those who wish to takepart can enjoy music and dancing.More details are available at www.icaew.com/LSCAdinner. Contact Annaliese Shiret on 0207920 3515 or annaliese.shiret@icaew.com4november/december 2010 londonaccountant

Clarified ISAsWays to keep your headabove waterClarifi ed ISAs are effective for December 2010 audits andbeyond - are you prepared for the changes ahead?You may already have some areas covered but if you have concerns about training your team, yourroutine or specialist audits, or receiving a clean bill of health from your governing body, we can helpyou avoid that sinking feeling!Open courses - Our ‘Clarifi ed ISAs - Practical Implementation’ course is running throughout November and December.In house courses - Any of our courses can be held at your offi ces or chosen venue.Webinars - Our increasingly popular one hour webinar programme includes clarifi ed ISA related topics.Audit and Specialist Assignment Manuals - The clarifi ed ISA version of our Audit Manualhas been available since September. The manual is complemented by a nationwide series oftraining courses for new and existing users, which are also available in house and in digital format.Paperless Audit - The Mercia audit methodology is also available through both CasewareAudit and CCH Audit Automation.Audit Quality Reviews - We offer a range of reviews that will help you establish and monitorquality control procedures.Telephone Support - If you simply need practical advice you can call us on 0116 258 1200.Find out more at www.mercia-group.co.uk/clarifiedisas

OPINIONA CULTURE OF RESPONSIBILITYAND INTEGRITYTHE CITY OF LONDON FULLY SUPPORTS AN INCREASE IN REGULATORY STANDARDS, NICK ANSTEESAYS, BUT REGULATORY OVERKILL MUST BE AVOIDEDThis is the last article I will be writing for LondonAccountant as the lord mayor of the City ofLondon; indeed, by the time it is published I willalready be back at my desk at SJ Berwin.In my first column all those months ago (LondonAccountant, March/April, p5), I wrote that ‘one of thebiggest advantages of working in London is our worldclassfinancial and professional services industry’. Thisis still very much the case; London retains aninternational reputation for excellence, and the topglobal firms and their top employees continue to wantto be based here.However, I also commented that ‘I hope I will bereturning to a more welcoming business environmentthan the one I left behind in November 2009’. I am notsure this rings quite so true.After a period of relative inactivity, major economiesthroughout the world – including the UK – are enactinglegislation at a pace unimaginable before the crisis,and firms around the world will have to work hard tokeep up.Basel III will impose new capital and liquidityrequirements on our banks, the Independent BankingCommission has been tasked with recommending waysin which the entire banking sector can be restructured,while policy-makers in Brussels continue to pushforward legislation to reform ‘unregulated’ entitieswithin the financial services industry such as hedgefunds, private equity firms, OTC derivatives and nowcapital markets.In addition to these shifts in the regulatory landscape,the threat of a cap on immigrants from outside of theEU and further taxes on the financial services industrycontinue to loom large on the horizon.Nor are the political messages we are sending to therest of the international business communityoverwhelmingly positive. Business secretary VinceCable recently branded certain individuals within thebanking sector ‘spivs and gamblers’, and the newLabour leader, Ed Miliband, seems intent on makingthe 50% top rate of income tax a permanent fixture.All of this is making foreign firms nervous; three ofthe five biggest lending banks in the UK – HSBCHoldings plc, Barclays plc and Standard Chartered plc– have explicitly stated they will seek to relocate if thegovernment forces banks to split their retail andinvestment divisions. And if banks choose to movetheir headquarters overseas, other sectors willdoubtless be forced to follow.While the City of London fully supports an increasein regulatory standards, we must avoid regulatoryoverkill, the cumulative impact of which will massivelydiminish the UK’s international competitiveness.The financial services industry has to face up to thefact that it has yet to regain the trust of the Britishpublic, and that this failure has created a huge amountof pressure for politicians to legislate. The place ofethics within financial services has been a key theme ofmy mayoralty, and yet still we see precious littlethoughtful and detailed debate on this subject and theissues it trails.Creating a culture of responsibility and integrity isnot just the right thing to do, it is also good forbusiness and good for our reputation among theinternational business community.If the financial services industry realistically wants thegovernment to strike a balance between imposing theright regulations while also respecting the need toallow financial institutions to go successfully about theirbusiness, firms and individuals working in the City mustamend their behaviour, and, perhaps as importantly,amend the public perception of their behaviour.This year has provided some degree of clarity aboutthe future of the UK financial services industry; the next12-18 months will define London’s attractiveness as aglobal financial centre for years to come.And while it is in all of our interests to create abusiness environment underpinned by regulatorycertainty, this certainty will only provide an advantage iffirms based in the UK are in a position, and indeed putthemselves in a position, to compete in theinternational marketplace.Nick Anstee is the lord mayor ofthe City of London6november/december 2010 londonaccountant

YOUNG PROFESSIONALSSTAND OUT FROMTHE CROWDYOUNG LONDONVOICEName: Dominic AhernAge: 28Organisation: CrouchChapmanPosition: Audit managerAre you starting a new job? Need to get noticed at work? Or do yousimply want to raise your profile? If so, come along to the YoungerMembers’ Services Group soft skills seminar, ‘Personal impact panel’, tofind out how you can stand out from the crowd.Join us on Wednesday 1 December at HSBC, Canary Wharf to enhanceyour personal impact and learn how to project your image positively. Findout about how your image is perceived by others and how to use it toyour advantage. The seminar will be participative and interactive. A panelof experts will advise you on the most important aspects of personalimpact and help you look at practical methods that you can apply in theworkplace.Our presenters will look at the various aspects of personal impact,including image, confidence and communication. On this panel will be:Phil Bolton, Colosseum Consulting. An ICAEW member, Phil is alsocertified in Mediation and Conflict Resolution by UC Berkeley. He isqualified to facilitate the Myers-Briggs Type Indicator (MBTi) and theLominger Leadership Architect. Phil is a member of the InternationalCoaching Federation (ICF) and the American Management Association.Jennifer MacKay, Jump Training & Development. Jennifer’s work hastaken her to Canada, Oman, Dubai, Italy and throughout the UK. Duringthis time, she learned first-hand the value clear communication brings toelevating business development, teamwork and profitability. Jennifer isa member of Toastmasters International and the Chartered Institute ofPersonnel and Development.Anthea Yamey, The Image Consultancy. As a coach and trainer inpersonal effectiveness, Anthea runs courses nationally and internationallyfor organisations and individuals in every profession and at all levels.She has been associated with the image industry for many years and isa founder member and Fellow of the International Federation of ImageConsultants.If you would like to attend this seminar visit www.icaew.com/ymsg orcontact Annaliese Shiret on 020 7920 3515 or annaliese.shiret@icaew.comThe YMSG is currently putting together its timetable for 2011. This will bemade available online in December.What do you love most about working in London?Having grown up in a sleepy town in Dorset, it’s exciting to feelat the centre of the action. When I first moved to London mycommute included a walk from London Bridge, taking in the viewsof Tower Bridge, walking past the Bank of England and being thrustnewspapers from all angles. London really is a bustling place with anincredible sense of history, and you always feel you are the first tofind out.What would you do if you were mayor for a day?My boss told me he would have a serious look at the TfL finances,although I’m not sure he’s submitted his application for mayor yet. Iwould organise a pay-per-view game of wiff waff with Bob Crow [RMTunion boss], and donate all proceeds to a London homeless charity.What’s the one piece of advice you would give to a tourist?Consider walking between places in central London or the West End.The Tube stops are much closer than they look on the map.What is your favourite London attraction?I’ve become a big fan of Holland Park. I think it is one of the prettiestand most interesting London parks. I especially like the Japanesegarden, and where else in London can you find peacocks and pigs!?What’s your earliest memory of London?In 1991 my father took me to Lords to the NatWest trophy final,Hampshire versus Surrey. It was a tense match with Hants managingto scrape together the final runs, so fond memories…And finally…I’ve found working within walking distance from the ICAEW tobe a great facility. Visiting the library on various occasions hashelped research on technical accounting issues. I’ve also attendedsome interesting events, and would recommend them to youngermembers, who seem to be under-represented!Read more about Crouch Chapman, cover feature, p10londonaccountant november/december 20107

COVER FEATURENOTHING BUTTHE BESTFIRMS ARE BEING MORE CREATIVE IN THEIR SEARCH FOR THE RIGHT PEOPLE. PHILIP SMITH INVESTIGATESTracking down the right person for yourvacancy is never easy, but as the economypicks itself up again, the hunt for elusive talentis set to become much harder again. Like London’smaster sleuth, Sherlock Holmes, firms in the capitalare now having to think of different ways to solve therecruitment puzzle.The so-called war for talent was in full swingbefore the recession took hold, and many would beforgiven for thinking that those heady days wouldnot be repeated any time soon. But it has seemedrecently that the war is beginning to hot up again.The number of job opportunities in the capital isbeginning to increase; optimism is returning.Anecdotally, the number of qualified accountantsfrom overseas arriving in London looking for work,especially from countries such as Australia and NewZealand, is beginning to rise. The large accountancyfirms, especially the Big Four, are reporting that theyare taking on record numbers of graduate traineesand are hiring in the ‘experienced’ category as well,all of which means that all firms need to makethemselves more attractive to potential recruits, andto look in different talent pools to find their newstaff.Recruitment consultancy Robert Half recentlyfound that only 9% of employers were not havingdifficulty in recruiting finance staff. Of the rest, 29%said they were experiencing problems hiring intofinance, 25% into audit, and 16% each for accountingand compliance.The same study found that firms wereimplementing a range of measures to addressrecruitment concerns. These included obvious areassuch as increasing compensation (cited by twothirds) followed by investment in training and greateropportunities for career advancement. Other areasincluded the flexibility to work remotely, or modifiedhours, and an exposure to more aspects of thebusiness.Hazel Garvey, director, business development atthe ICAEW, says: ‘The global economic crisis hasemphasised the need for business leaders andadvisers who can see “the bigger picture”, and theskills which the ACA qualification instills will be inever greater demand as the financial markets andthe world economy pull themselves back on track.’SNAPPING THEM UPNick Heath, a partner in Crouch Chapman, anaccountancy firm based on the edge of the City, saysthe larger firms are snapping up potential candidates,reminiscent of the talent wars of a few years ago.‘When the economy picks up we will be back inthe same situation,’ he believes. As an example ofalternative strategies, Heath is looking at how to tapinto the refugee talent pool – it is estimated therecontinued on p11 londonaccountant november/december 20109

COVER FEATURECASE STUDY: CROUCH CHAPMANChartered accountancy firm Crouch Chapman has been based in Finsbury Square, on the edge ofthe City of London, since 1892. The eight partners serve a wide variety of clients, including thosefrom abroad that have particular requirements in London. Like many other firms, it faces difficultiesin recruiting the right staff, but it is developing a more unusual approach.‘The problem I was finding was to get suitable students interested in working for a small tomedium-sized firm, and finding someone who was enthusiastic and able to fit into what is already apretty diverse practice,’ partner Nick Heath explains. ‘Like many firms in London we are very multicultural.The Employability Forum, which had already worked on areas such as teachers, suggestedwe could go to the Refugee Council to find out whether they had anyone on their books who hadsome qualification in accounting and were part of the refugee “pool”.’As Heath observes, refugees will have been granted the right to work in the UK. There are severalhundred refugees in London who have some form of accounting qualification, but the wholemechanism of getting them anywhere near employers is very difficult.After reviewing a number of CVs, Heath invited around a dozen people to come into the firm andbe given an introduction to what was involved in training as a chartered accountant, while also takingthe opportunity to test accountancy and language skills.Some had been in practice in their own countries, or worked as accountants in business. ‘It was acomplete range of people. They all had very interesting things to offer, but at the time the key Ihadn’t really appreciated was the importance of the language of accountancy.’ This is an aspect thatHeath believes needs to be looked at very carefully. ‘I would be keen to establish people’s languagelevels’.Managing their expectation levels is another area that Heath believes should be handled carefully.‘An accountant from abroad may be taken on at a lower level than they would have hoped for, unlike economic migrants who would know what theywere getting in to. The refugee is here not through their own choice,’ Heath explains.Initially, Crouch Chapman took on one such refugee before the recession, and now Heath is looking to start up again, and is keen to make otherrecruiters aware that there is this resource out there. ‘It is a pool of people ready to be employed, and I think this is a very valuable resource,particularly for smaller practices.’CASE STUDY: KPMGDespite the recession, Nicky Binning, UK head of experienced hire recruitment at Big Four firmKPMG, believes recruitment remains a challenge in London. ‘There is a shortage of the rightpeople with the right skills and the right attitude,’ she says. Not that that has stopped the firmfrom hiring. During the last 12 months, the firm has received 29,000 applications, out of which1,600 were taken on.But there are still some positions that are hard to fill. ‘There is much more movement in the market,there are more people looking for positions, there is much more confidence, but we are now back incompetition with financial services and other professional services,’ Binning says.As a consequence, the firm is looking closely at how it brands itself, and how it puts across its ownvalues. In effect, how it becomes an employer of choice.In particular, it is looking at how it comes across to the next generation of employees. ‘They arelooking for an interesting career, but one that takes them to different places. So we need to look at howwe attract them into the right positions and offer them long-term opportunities.’Binning emphasises the global nature of her firm – not only can the firm tap into global talent poolsto bring in people from elsewhere, but it can also offer the reverse and allow people from London tofind opportunities around the world. ‘But we are still fighting to find that good candidate we’re alllooking for.’The firm uses new media to get its message across to those that are not necessarily in the market fora new job – LinkedIn, Facebook and Twitter all figure highly in the strategy. ‘In any market, the more valuable people are the people that are the talentin their own organisation, they are motivated and therefore aren’t actually looking for a new position.’The firm is also increasingly tapping into its alumni network, leading to what Binning refers to as ‘boomerang’ hires – those that had trained with thefirm, left to broaden their business skills and are now returning, having benefited from that experience.Binning also notes the dichotomy of recruiting in London – the city can be a big draw for graduates starting out on their career in the profession,but priorities can change for more experienced candidates, who may be looking for a more flexible approach: ‘We recognise they don’t want to be inLondon Monday to Friday.’10november/december 2010 londonaccountant

COVER FEATURECASE STUDY: WELLERSWellers, an accountancy firm with offices in London and the Thames Valley, has been activelytargeting school leavers in a bid to ensure that it is able to harness the talent of the future.Rather than wait for them to go through university and then compete with larger firmsduring the ‘milkround’, the firm is offering up an alternative to higher education and thetraditional route into the profession.‘We recognised that there were a large number of people leaving school who wereintelligent, focused and driven, but who were making the decision not to go to university,’explains Norma Stewart, a partner in the firm’s London office. Rather than trying to competewith the big firms during the annual graduate recruitment drive, the firm realised it might bebetter to tap into this other pool of young potential recruits.While Stewart recognises that this involves casting a wider net through newspaperadvertising, online recruitment services and the firm’s website, the advantage is that they canbe introduced at an early stage to the way the firm operates.The school leavers will sit for the AAT qualification as the first step towards becoming aqualified accountant, studying through day-release schemes with study leave as the examsapproach.‘There’s a mix of ways people can study, and this is the benefit of a smaller organisation –we’re willing to be flexible with the students in terms of how they feel they learn best.’Such an approach aids retention – Stewart says that the firm has a very low turnover of staff.This is helped by the firm’s philosophy of giving their new recruits plenty of client contact at anearly stage, together with a good mix of work, rather than just being another member of theaudit team.‘Because of the way we work, where even from the very early stages they will have a lot ofclient contact, they will have quite a variety of work. There won’t be the desire to go off and try something else, as they will probably have had theopportunity during their training to see all aspects of the job that we do.’Another stumbling block, which perhaps the firm has less control over than it would like, is London’s infamous transport issues. ‘This adds anotherlevel of difficulty when you are studying,’ Stewart says.This summer, Wellers noticed an interesting effect of the recession – many school leavers were assuming that there were no job opportunitiesavailable to them in the current market, which led to an increase in university applications and a knock-on effect on AAT accountancy recruitment.As Stewart’s colleague Christina Nawrocki says: ‘Last year, we had a record number of applicants for our trainee positions in Oxfordshire and London,but the number has significantly dropped off this year... It seems ironic that we are really struggling to fill our placements as a record level of youthunemployment is being reported.’are some 300 or so financially-qualified individuals inLondon who have refugee status, who are willing andable to work in London. Heath is working alongsideBeryl Randall of the Employability Forum, the AAT’svice-president Hilary Lindsay and the Refugee Councilto set up an online resource for both employers andrefugees looking for opportunities in professionalservices.For Randall, the initiative is a logical next step forthe Employability Forum, having already worked withteachers and nurses in a similar situation. ‘We’vealways wanted to look at the finance profession,’ shesays, adding that the move also fits in with theforum’s work on improving access to theprofessions.MISMATCHParadoxically, while many firms report difficultyin attracting the right calibre of staff, recruitmentconsultancies such as Morgan McKinley are reporting asignificant rise in the number of financial professionalsin London coming on to the market – over the lastyear, while the number of finance positions available inThere would appear to be a possible mismatchbetween what firms are looking for andwhat candidates have to offerLondon had grown by a third, the same period saw anincrease of 61% in the number of professionals lookingfor work.There would appear to be a possible mismatchbetween what firms are looking for and whatcandidates have to offer. ‘It is a really interesting, butchallenging, time in recruitment,’ says Nicky Binning,KPMG’s head of experienced hire recruitment. ‘Thereare lots of mixed messages in the professionalservices recruitment market, but there are somegreat skills out there and great opportunities toharness those skills.’All of which means that London firms will need tobe more creative in finding the right people.Elementary it is not.EMPLOYABILITYFORUMIf you are interested in learningmore about the refugeeinitiative, further details can beobtained from Beryl Randall atthe Employability Forum(b.randall@employabilityforum.co.uk) or Hilary Lindsay at theAAT (hilary.lindsay@aat.org.uk)londonaccountant november/december 201011

PROFILEA LIFE OFTWO HALVESSINCE RETIRING FROM PWC, ERIK SAMUELSON HAS HAD THE JOB OF HIS LIFE. LESLEY BOLTON TALKSTO THE MAN WHO, AS CHIEF EXECUTIVE OF AFC WIMBLEDON, IS LIVING HIS FOOTBALL DREAMhas been the most fantastic job.’ ErikSamuelson, 62, a retired PwC partner, oozes‘Thispassion in every sentence. Sitting in his smalloffice in the Kingsmeadow stadium in Kingston uponThames, the chief executive of AFC Wimbledon,the football club born out of a move of the formerWimbledon Dons to Milton Keynes in 2002 (see box,p14), recalls how he has capitalised on business skillslearned during 30 years in the accountancy professionto run a football club that is his second love after hisfamily.For the son of a Sunderland cabinet maker and anM&S shop assistant, Samuelson admits to beingobsessive with numbers. Following a degree inmetallurgy at Nottingham University (1967-1973), whenit came to applying for a job, Samuelson was offeredboth accountancy and Inland Revenue tax inspector.He chose the former, and began training with Deloitte& Co in 1973. ‘I felt like HG Wells’ Time Traveller – I satstill while the world changed around me,’ he says of his1230-year career in the firm, which metamorphosed fromDeloitte & Co, to Deloitte, Haskins & Sells, to DeloitteHaskins and Sells (dropping the comma was a big deal,he says), to Coopers & Lybrand Deloitte, to Coopers &Lybrand, and then to PricewaterhouseCoopers.He qualified in 1976 and later became an FCA. Butthe roles were varied: audit; a stint in the technicaldepartment; involvement in the introduction of auditautomation software; then risk management, toppedoff with HR consulting.‘One of the great things about working for a firm likethat is that you can have so many different careerswithout leaving the building. I never had the courageto actually go and set up on my own – I don’t think Ihad quite that entrepreneurial flare. But what Idiscovered when I came to Wimbledon, initially asfinance director, was that they’d talk about HR, and I’dthink, well I know a bit about that; and they’d talkabout strategy, and I’d think, well I know a bit aboutthat; or risk management, well I specialised in that.november/december 2010 londonaccountant

PROFILE‘It’s astonishing what a rounded education you getwhen you take all your opportunities.’But even back in the heady days of the late 1970s,Samuelson and his wife Eileen (whom he met while atuniversity) took time out for what must count as one ofthe pioneering ‘gap years’. ‘We did the hippy trail,taking nine months in 1978-9 to travel by bus fromStreatham to Katmandu. We kept going until we got toJapan and returned on the trans-Siberian railway.‘I was so impressed that the firm not only kept myjob open, but paid me for the bank holidays I wasentitled to while I was away.’Samuelson is grateful for the ‘enlightened’management he worked for during his career as achartered accountant. ‘Everybody I ever worked for wasdecent and enlightened, and you saw the best side ofthe firm. That’s the thing I’m most grateful for and mostappreciative of, looking back.’What he found most rewarding from those days waswhen he was a team leader and became involved incounselling and appraisals. ‘I like people generally, andyou find that in a big organisation some people don’talways get identified for the qualities they’ve got, andwhen you can take somebody and recognise thosequalities and help them develop them, it’s extremelyrewarding.’FOOTBALL CRAZYSamuelson has always loved football. ‘I’m fromSunderland, and obsessive, like football fans are,’ hesays. But having moved down south, and with twosons at local schools where you either supportedWimbledon or Chelsea, it was Wimbledon that wonthe day. ‘I took my son Pieter to his first game in 1987.The following year Wimbledon won the FA Cup, andthat is how I started taking him and then my youngerson John to most games. It’s tedious to watch a clubweek in and week out and not care – you get suckedinto it,’ he says. ‘It’s heresy to change clubs where Icome from, but Wimbledon became my team!’Samuelson’s professional involvement withWimbledon was by happenstance. Safeway, one of hisbiggest clients in the late 1990s, was trying to build asupermarket on Plough Lane, Wimbledon’s originalstadium (Wimbledon FC had decamped to SelhurstPark following the controversial sale of their ground).As a piece of PR the supermarket chain invited fans totour one of the stands and collect mementos before itwas demolished. Samuelson was one of those fans.This was just at the time it was announced thatWimbledon wanted to go to Milton Keynes. Samuelsongot to know the leaders of the protest group, who, hesays, were ‘very smart and sophisticated people in theprotests they ran’.Everybody believed that the Football Association’scommission would reject the move to Milton Keynes. Inthis event, Samuelson believed at the time that theclub would have gone into administration, and the fanswould have to try and buy their team. As a result, hewrote ‘the worst business plan ever’ for buying afootball club out of administration. Looking back, he’srelieved to say it was never tested, because, in a shock,unappealable decision, the move to Buckinghamshirewas approved. Wimbledon were renamed MK Dons,and the alternative scenario Samuelson predicted, thatthe fans would have to start a new club, became realityon 28 May 2002.continued on p14 SAMUELSON ON FOOTBALL FINANCESErik Samuelson waves his red card atfootball clubs that pay extortionatesums for players before settling theirtax bills with HM Revenue & Customs. It’s akinto cheating, he says. Football is seriouslydistorted by what’s become known as financialdoping.‘Think of it as the financial equivalent oftaking drugs to improve your athleticperformance,’ he says. ‘In our first season ever,to give you a feel for it, we got 111 points from46 games; that would normally mean youwould run away with the league, but we camethird, because there were two teams in ourleague who had rich men who pumpedmoney in and they did even better. Itcompletely distorted the league.’He continues: ‘If a club owes £100,000 in tax,and it has instead spent £100,000 on players’wages, well it ought to have paid its tax bill; inmy league that could have paid for three highqualityplayers who I didn’t buy because I paidmy tax bill. I don’t think that’s much differentfrom cheating, and this has to be changed.’And Samuelson is hoping to be instrumentalin the quest for change.He chairs the football finance workinggroup for the football Conference board,which is looking at the sustainability of clubs.‘The purpose of the group is to try and helpclubs to be more sustainable, and theConference has a number of reportingprocesses in place to try and monitor thefinancial health of clubs.’He says that with all due credit to theConference, before he took on his role it hadaleady created in its own right a set of ruleswhich say that if you as a football club in theConference competition (68 clubs in totalacross the Premier, North and Southdivisions) go into administration, then if youdon’t pay all your creditors in full by the endof the season, you’re out of the competition.‘The Conference in my opinion hasconsiderably higher-standard financialdemands of its clubs than other leagues, and Ithink quite rightly too. Basically, if you don’tpay your bills then you can’t play.‘Change is on its way at the top level too.Recently the European Football Associationintroduced rules saying that if a club wishes tocompete in the top competition, the EuropeanChampions League, then it must break evenfinancially.‘If implemented effectively this will causemassive changes in the way certain clubs arerun and, I think, such rules will eventually filtertheir way all the way down through the footballpyramid in this country. That may take time,but it will be very welcome and shouldreduce the number of clubs that go intoadministration after spending well beyondtheir means.’londonaccountant november/december 201013

PROFILENearing retirement, Samuelson had already hadthoughts about becoming a non-executive director of alarge football club, when he had that lightbulb momentwhen he realised he could become an executivedirector of the club he loved. His employers, in anotheract of generosity, in fact allowed him to be a part-timevolunteer FD, which he did for a year. By this time ‘itwas patently obvious that I was spending more time onfootball than I was on the partnership, so I decided itwas time to retire.‘I promised Eileen that I would not spend all my timehere [at the club] and that I would not spend mypension on it. I only did the first and still have most ofmy pension intact!’ In total Samuelson was FD for fouryears before becoming chief executive.‘I went from a completely supporting infrastructure –cosseted, everything laid on – to, when we first started,a wonderfully energetic shambles. It was quite a shock,especially after 30 years, to go from the mentality of anauditor and then consultant, to having to do everythingyourself; not that it’s difficult, but I’d never evenprepared a chart of accounts.’The club is run as a business but is largely staffed byvolunteers like Samuelson. ‘I’ve probably done almostevery job I run. I used to love running a turnstile. Youget to see 400 or 500 fans coming through and they’reall such lovely people. There’s a fantastic culture.’The first thing the newly-formed club did in 2002 was tolook for a ground to play on, and identified theKingsmeadow stadium in Kingston. ‘Within a month I wassaying we’ll go bust unless we own our own stadium; weneed the income-generating facilities.’ It was bought bycreating an intermediate holding company between theDons Trust (a supporters’ trust formed in February 2002)and the football club, called AFCW plc, in whichsupporters bought shares. This raised £1.25m, and £2.4mwas paid for the ground. The vendors of the stadiumloaned the balance at a hefty rate of interest. This left adebt of about £900,000 after some profits from its firstseason were ploughed into the club.‘I set about trying to find ways of reducing the debt,and we did some quite clever things. We issued a bondto fans where they could choose their own interest rate,which raised about £250,000. One of the other thingswe’ve done is set up a monthly lottery in the DonsTrust.’ With a consistent income being generated inthis way, Samuelson was comfortable in selling five-yearseason tickets, which was used to pay down the debt.A loan from Barclays Bank was the balance needed topay off the ground’s vendors.The club has been improving and upgrading theKingsmeadow stadium – to the tune of some £1m.Last season was by far the best in the club’s younghistory with an average attendance of 3,535. ‘Webudgeted, because I’m a prudent accountant, for lowergates this year to make sure we don’t overreach ourselves.We’ve never had lower than 2,600 but we have only beenabove 3,000 in two seasons. By attendances, we arecurrently the 77 th biggest club in England and Wales,bigger than 16 Football League clubs.’Samuelson shoots a few figures at me. In the club’syear end to 30 June 2003 (its first season) revenueswere £709,000, rising to £1.018m for 2004 and £1.721mfor 2009, with profits of £36,000.For the future, by the time he retires from this job, hewould like to see AFC Wimbledon in the FootballLeague and to know where a planned new stadium isgoing to be built and how it is going to be funded.Whether this will be back in Wimbledon or Merton, orwhether they will remain in Kingston, could bemassively controversial ‘but our historic home is Mertonand that is where we are focusing’.‘It’s been a fascinating time for an accountancytrainedbusinessman,’ ruminates Samuelson. ‘I run abusiness and my reward for running a business is that Iget to talk football, and I think that’s brilliant. I’m nowworking with my old football heroes like Marcus Gayle[a former Wimbledon striker who is now the club’sreserve team manager].’He adds with a wry smile: ‘This is the only thing I’vedone in my life that my sons are willing to acknowledgeis worth a bit of respect!’MEET ERIKSAMUELSONFormer PwC partnerErik Samuelson tells theimprobable story of how agroup of volunteers defiedthe authorities to build andfund a successful football clubfrom scratch. The Croydon &District Society of CharteredAccountants is offering a rareopportunity to hear first-handfrom the man at the helm.Two packages are on offer tomembers and guests.Package 1: Friday 8 April2011 at 19:30 for 20:00 – drinksreception, three-course preselecteddinner with wine,followed by a talk by Erik: £35(including VAT).Package 2: As Package 1 butalso to include a ticket to AFCWimbledon v Mansfield on22 April 2011 (Good Friday)or 23 April 2011 (EasterSaturday) – date of match tobe confirmed, but will start at15:00: £50 (including VAT).Venue: KingsmeadowStadium, Kingston uponThames, KT1 3PB. Contactjacquie.fairclough@icaew.comor at 020 7920 8407 for furtherdetails and to book.AFC WIMBLEDON: A BRIEF HISTORYIn a story that has gone into the annals of football mythology, AFC Wimbledonwas born out of the near-demise of the original Wimbledon FC ‘The Dons’, who,following a meteoric rise from the old Fourth Division to the First in just fouryears, before also winning the FA Cup itself in the 1988 final, fell from grace in thelate 1990s. In a controversial decision, the Football Association sanctioned theclub moving to Milton Keynes – it’s now known as the MK Dons.Its band of loyal fans, however, did not approve of their beloved club (whoseteam had included household names such as Vinnie Jones) moving toBuckinghamshire, and set about starting another one from scratch. In a few weeksin the summer of 2002, they found a ground, appointed a manager, held playertrials on the Common and joined the Combined Counties League, playing in frontof crowds of around 3,000. Since then they have pulled themselves up throughfootball’s pyramid system and are poised for promotion from the non-League BlueSquare Conference Premier up to League 2, the former fourth division.14november/december 2010 londonaccountant

STYLETIE ME UP,TIE ME DOWNBETH HOLMES DOESN’T WEAR A TIE, BUT FINDS THAT LOTS OF CHAPS STILL DOAlthough it’s fair to say that the corporateuniform of a suit and tie is still omnipresent,as dress-down Fridays have permeated mostworkplaces, there has been something of a shift inexpectation as far as exactly when and where oneshould be expected to don neckwear. Get itwrong at your peril.Image consultant Nancy Stevens(www.alteredimagemk.co.uk) says: ‘I can’t rememberthe last time someone asked me [to buy them] a tie.People are making do with what they’ve got. Theyaren’t seeing it as a necessity.’The problem with this, she adds, is that ‘dressingdown affects productivity. In the UK we don’t know howto do smart casual very well’.So when should you wear a tie, and does it make adifference what size firm you work in, or indeedwhether you work in practice at all? Jeni Taylor,diversity and engagement, PwC, says: ‘Our peopletypically exercise their own judgment on when theyshould dress in business formal and when it’s time tobe more casual.’WHAT DO CLIENTS EXPECT?‘When people are working with clients they dress tomeet client expectations and reflect the formality of theoccasion,’ she says. ‘This means it is sometimes moreappropriate to dress down, but if uncertain they woulddefault on the side of formality and wear a tie.’The mid-tier, on the other hand, makes more of aformal sartorial distinction between different industries.John Staniforth, partner in charge of HR at KingstonSmith LLP, says: ‘We believe in presenting aprofessional and positive image to our clients. Wearingappropriate business dress is integral to this, so we askour male employees to wear a tie at all times.‘However, at our West End office, where our clientsare all within the marketing services and mediaindustry, the firm’s dress policy is slightly different.There, we encourage male employees to wear anopen-neck shirt without a tie to emulate our client baseand, essentially, try to make our clients feel morerelaxed. Of course, if West Endstaff visit other offices formeetings or presentations,they are asked to dress moreformally.’One anonymous solepractitioner told LondonAccountant: ‘I don’t often weara tie and I would not greatlyvalue the opinion of anyonewho cared whether I did ornot. My clients are used tofinding me in shorts, and theytend to be loyal – I tend to puton long trousers and a decentshirt if visiting a client, butseldom a tie. If I lose apotential client as a result ofnot dressing up, I can live withthat.’And what of accountantsworking in industry? Charteredaccountant Russell Ford is theglobal head of HSSoperational risk at HSBC.IT’S SO AMERICAN‘In London, it has to be suit and tie; dress down isso American and so 90s,’ he says. ‘I have a highpressuredoffice job, so for me it’s shirt sleeves rolledup and tie loosened, and then people can see I meanbusiness!’So it seems that the tie will never die, even if it isn’tas popular as it once was: it will simply be kept in ajacket pocket and worn when necessary.A final word from Nancy Stevens, if you’re braveenough to want to try and be on trend this season.‘Knitted ties have become more popular,’ she says.‘As a homage to the 60s they can create an edge to aformal outfit.’ But, she warns: ‘You can’t wear it with acity suit and there is a danger you can look like ageography teacher.’londonaccountant november/december 201015

ENTERPRISESIGN UP FOR 2012OPPORTUNITIESCOMPETEFOR IS A GROUND-BREAKING PROCUREMENT SHORT-LISTING TOOL DEVELOPED BY KEYLONDON 2012 STAKEHOLDERS IN PARTNERSHIP WITH THE BUSINESS COMMUNITYWith less than two years to go until theopening ceremony of the London 2012Olympic Games, the London businesscommunity is being encouraged to take advantage ofthe commercial opportunities that are still available forbusinesses of all sizes. As Games preparations enterthe home stretch, there are still millions of pounds’worth of contracts available from both the OlympicDelivery Authority and the London OrganisingCommittee.According to the London Business Network, theorganisation responsible for providing 2012 businessinformation and access to opportunities generated bythe Games, SMEs are in a prime position to capitaliseon the remaining opportunities.The Olympic Delivery Authority (ODA) is on track todeliver the Olympic Park and other venues by summer2011, and although 95% of their direct procurement isalready completed, there are still potentially thousandsof opportunities available within their supply chains.According to recent statistics, more than 400 tier-twocontracts are currently at the tender stage, and it isanticipated that hundreds more sub-contractingopportunities will be generated as a result*.It is thought that nearly 60% of the LondonOrganising Committee’s (LOCOG) £700m procurementbudget has already been committed, leavingapproximately £285m worth of direct opportunities stillto be procured. The London Business Networkanticipates that, like the ODA, LOCOG’s directopportunities will generate many more sub-contractsthat small and medium-sized businesses can bid for.Mike Mulvey, chief executive of the LondonBusiness Network, says: ‘Supply chain opportunitiesrepresent an enormous opportunity for the SMEcommunity. There will be thousands of theseopportunities available across a range of sectors andspecialisms, and from our experience these tend tobe more relevant and attainable by SMEs. For the firsttime ever, businesses have been able to accesssupply-chain opportunities easily and freely throughCompeteFor.’GROUND-BREAKINGCompeteFor is a ground-breaking procurementshort-listing tool developed by key London 2012stakeholders in partnership with the businesscommunity. It is designed to open up the London2012 supply chain and give SMEs a greater chance tobenefit from the Games. This ‘business dating agency’allows businesses to register for free as potentialsuppliers online. CompeteFor notifies them aboutrelevant contracts that are placed on the system,which they can apply for quickly and easily online.The system is now being used by more than 700public and private sector buyers to enhance theirprocurement processes by increasing the opennessand transparency of supply-chain activity. BesidesLOCOG and the ODA, the Greater London Authoritygroup has committed to advertising all its procurementPhoto: London 201216november/december 2010 londonaccountant

ENTERPRISE‘Supply chain opportunities represent anenormous opportunity for the SME community’opportunities through CompeteFor. Westminster CityCouncil has already placed more than 190 contracts onthe system, and Haringey Council launched itsCompeteFor procurement programme in October2010.Crossrail is also using CompeteFor to make itsprocurement more transparent. Its tier 1 suppliers arerequired to advertise all appropriate sub-contractopportunities on CompeteFor. Indirect suppliersthroughout the supply chain are also encouraged topost their opportunities on CompeteFor. MartinRowark, head of procurement at Crossrail, says:‘Engagement of SMEs and understanding of what oursupply chain looks like is critical to successful delivery.’Mulvey adds: ‘CompeteFor is a true business legacyof the London 2012 Games. This is the first time inOlympic and Paralympic Games history that subcontractingopportunities have been made so freelyaccessible. We’re delighted that Crossrail has alsochosen to use CompeteFor to provide supply chainopportunities to small businesses. With other publicand private sector buyers now using the system,registered businesses have access to a plethora ofcontract opportunities beyond London 2012.’To date, over 7,000 opportunities have beenadvertised on CompeteFor, with 67% of awardedcontracts going to small and medium-sized businesses.This includes 13% that have been won by businesseswith fewer than 10 employees. Businesses areencouraged to make themost of the system by fullypublishing their businessprofile and making theirmarketing data available inthe online supplier database.Once they are published,businesses can sign up foremail alerts, trackopportunities of interest, andadvertise partnershipopportunities.COMMITTEDBoth LOCOG and the ODA are committed tosupporting SMEs through CompeteFor, and have alsoencouraged their sub-contractors to open up theirsupply chains using the innovative system. In the nextsix months, LOCOG’s procurement will fall into eightkey areas – artists, performance & events, sports(including medical), security, technology, services,transport & logistics, facilities management & catering,and venues & infrastructure. Many of these goods andservices, including supply-chain opportunities, will bemade available through CompeteFor.*This is in addition to around £250m, which isearmarked by the ODA for the transformation of theOlympic Park post-Games.To register your businesson CompeteFor, visitwww.competefor.com.For further London 2012business information, includingaccess to free 2012 businessevents and networkopportunities, visit the LondonBusiness Network websitewww.londonbusinessnetwork.comPhoto: London 2012LSCA SMALL PRACTITIONERS’ CONFERENCE –NOW IN ITS 40TH YEAR24-26 March 2011, Robinson College, CambridgeHear from leading CPD speakers, includingStephanie Henshaw, Gerry Hart and BobTrunchion, on topics designed specifically for smallpractices. These will include: updates on audit andaccountancy, VAT and tax, as well as presentationson pensions, advising the elderly and practicemanagement.Several sessions are devoted to discussion groupsof 10-12, each of which is visited by some of the mainspeakers so that delegates can raise a variety of issueson a more personal basis.The conference also gives attendees theopportunity to meet fellow practitioners in a lively butrelaxed atmosphere, and exchange experiences andideas and share problems.Early bird price: Save £30 (before VAT) forbookings received on or before 3 January 2011and before the VAT rate changes!Full programme and more details are available atwww.icaew.com/spc or contact Elizabeth Allen on020 7920 3504 or elizabeth.allen@icaew.comlondonaccountant november/december 201017

BUSINESS SUPPORTA DISASTER? YOUCAN STILL STAYIN BUSINESSLOUISE SMAIL WONDERS WHETHER YOUR BUSINESS IS WELL PREPARED FOR UNFORESEEN DISRUPTIONIn March 2009 the Chartered Institute ofManagement, in conjunction with the CabinetOffice, produced its 10th annual survey of businesscontinuity management in the UK*. Based onresponses from 1,012 managers, the report revealeda pressing need for UK organisations to guard againstcomplacency in their attitude towards protectingthemselves from the potential disruption resultingfrom possible risks.The results showed that 52% of organisationsacross the UK practise business continuity planningand have a business continuity plan (BCP). This is thehighest level the survey has ever recorded. However,a less positive finding was that only 64% of managersthought that business continuity ranked as ‘important’within their organisation – down from 76% theprevious year.This is a dangerous trend. Survey respondents sawelectronic attack (58%) and human disease (57%) asbeing the two greatest causes for concern. Indeed thecurrent threat of swine flu has made someorganisations look at their arrangements for carryingon – if and when it strikes their workforce – and,fortunately for them, there is now a lot of informationavailable on the subject (see, for instance ‘YourBusiness and Swine Flu’ at www.businesslink.org.uk).However, businesses often concentrate on such typesof disruption – the ones they think they will experience –at the risk of completely failing to anticipate others.They need to be prepared for all sorts of possibleincidents. Yet general disaster-readiness is what businesscontinuity planning is all about.PREPARE FOR EVERYTHINGA BCP is not about planning for specific events:disasters, whether major or minor, rarely happenat the time and in the form you expect. It is aboutlooking at how robust your business is to some formof interruption or other. There are many toolkits andchecklists available, to help you create and reviewyour business continuity – just one example beingthe toolkit available to download from the LondonPrepared website (www.londonprepared.gov.uk/18businesscontinuity). This will take you through the keyelements of a BCP – a good starting place if you haveeither a plan overdue for review, or a set of variousrecovery and continuity strategies that are not yet coordinatedas a business continuity plan.Basically, there are five key steps in creating aneffective BCP:■ understanding your business;■ developing your plan;■ testing and establishing the plan;■ training staff;■ maintaining and reviewing your plan.Following any type of disaster, the media will beinterested in how an organisation is coping with theproblem, through to whether the media perceivethat the problem may have started with yourorganisation. They will demand instant informationand details, and interviews with experts and survivors.By understanding the media’s needs, preparing aproper strategy in association with them and testing itduring exercises, the organisation’s chances of beingaccurately portrayed are greatly increased. As part ofthe plan it is worth considering how the organisationwill deal with the media – either through onedepartment or maybe through an outside agency.* A Decade of Living Dangerously: The BusinessContinuity Management Report 2009, downloadableat www.managers.org.uknovember/december 2010 londonaccountant

BUSINESS SUPPORTWHAT IS BUSINESS CONTINUITY PLANNING ANDWHY IS IT IMPORTANT?Business continuity planning – also known as business continuity management, catastrophe planning andcrisis planning – involves understanding the risks to the everyday running of a business or organisation andplanning other ways of working if a risk actually becomes a reality.Being able to get your organisation up and running quickly after an incident makes you more likely to beable to provide employment, meet customer needs and, ultimately, generate profit.The type of ‘incident’ that could significantly hamper the smooth running of a business ranges in type andscale, some examples being:■ disrupted supply from a utility service;■ bankruptcy or defection of a key customer or supplier;■ interruption to IT services;■ flooding;■ fire;■ an act of terrorism.BEWARE THE MANCHESTER BOMB RESPONSE...It would seem common sense to plan for unexpected disruptions, but by no means everyone does – evenafter having seen such a disaster at close hand. Take the example of the Manchester bomb incident in 1996.On 15 June that year a bomb was detonated in the city centre. The estimated loss of business was £5m forthe first day alone. Of the 435 businesses that were severely disrupted, more than half – 250 – went out ofbusiness within the next six months.Yet in an annual business survey carried out by Manchester City Council in June 2007, 40% of the 683respondents had never even heard of business continuity, and only 19% had put business continuity plans inplace and tested them.…INSTEAD, OBSERVE SCOGGINS’ LAWFurther reading and helpThe ICAEW has compiled a list offurther reading on businesscontinuity planning, which isavailable on the ICAEW websiteat www.icaew.comThe Emergency PlanningCollege, which is part of the CivilContingencies Secretariat, runscourses on risk assessment andbusiness continuity management.www.epcollege.gov.ukFor practical help, the CivilContingencies Secretariat hasdeveloped, in partnership withstakeholders, a BusinessContinuity Management Toolkitto help organisations implementBCM. www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/documents/digitalasset/dg_176447.pdfThe DirectGov website alsoprovides a range of informationon business continuity forbusinesses and for voluntaryorganisations.Where is help available?Many councils run businesscontinuity forums which provideguidance and advice tobusinesses.And even those who do have a plan cannot rest on their laurels; they need to be assiduous in ensuring andmonitoring its effectiveness.Mark Scoggins, a solicitor advocate who has been involved in a number of high-profile disaster cases, hasformulated a set of questions to be asked about emergency plans when a disaster happens. These questions –known as Scoggins’ Law – are equally useful for managers to apply about an organisation’s business continuityplan, and can be paraphrased as follows:■ Do you understand your business risks?■ Do you have a plan? And if so, is it up to date?■ Do people know about the plan and what it means for them, and was it supported by appropriatecommunication, training and exercising (ie, is it embedded)?■ Will it work (ie, has it been tested)?SOME KEY BCP POINTS TO REMEMBER■ Avoid using a scenario to create a plan – these are only really useful for testing plans.■ If you use consultants to assist, make sure that they are not just selling a product, but really are able to lookat the business as a whole – remember, you know your business better than they do.■ Try to make business continuity part of your normal business and not just a reaction to something in thenews.■ Business continuity should be business-driven, not just driven by IT.The business continuity plan should be concise and easily accessed – don’t only have one copy in theburning building!Louise Smail works for theconsultancy Ortalan, where shespecialises in business riskevaluation.Louise.smail@ortalan.comlondonaccountant november/december 201019

CHANNEL ISLANDSAT THE HEART OFISLAND LIFEMICHAEL IZZA HAS BEEN FLYING THE ICAEW’S FLAG IN A RECENT VISIT TO JERSEY. THE JERSEYSOCIETY IS AFFILIATED TO THE LONDON SOCIETY. CAROLINE FLORENCE REPORTSLike most places, the island of Jersey is facing sometough decisions. With falling tax revenues and astatic economy, the financial hub is consideringa 50% rise in income tax for the wealthy. The proposalunderlines the difficult choices facing offshore centres,which have seen a downturn in financial services andincreasing competition from rival centres. The Treasuryminister for Jersey, Philip Ozouf, has proposed £50m ofannual spending cuts and £50m-£60m of new taxes in abid to bring the budget back into balance by 2013.It was against this background that ICAEW chiefexecutive, Michael Izza, visited Jersey in late summer.The trip followed a cancelled trip earlier in the year, dueto the volcanic ash cloud, and coincided with the launchof the Business Confidence Monitor (BCM). The BCM isone of the largest and most comprehensive quarterlyreviews of UK business confidence and provides aregular snapshot of the economy. Izza had appeared theprevious day on Wake up to Money, the BBC NewsChannel and CNBC, as well being quoted in thenational press on the results of the latest quarter’sresults. Jersey members and press were eager to hearhis views on the economic outlook for the island.The day started with a breakfast meeting with PwC,KPMG and Deloitte representatives based on Jersey.During the meeting, attendees discussed the localsituation and the various accountancy services thatwere in demand. Following this, he met with Ernst &Young to discuss the ACA. The Channel Islands are akey part of the strategy for student growth for Learningand Professional Development for both the ACA andother qualifications.MEDIA FRENZYIn a packed schedule, Izza was then interviewedby BBC Jersey at its studios in St Helier for bothtelevision and radio. The media were keen to talkabout the economic prospects for the island. Izzaadmitted that Jersey hadn’t been as adverselyaffected as some other parts of the UK but that theextent of public sector cuts would determine how20The Channel Islands are a key part of thestrategy for student growth for Learning andProfessional Development for both theACA and other qualificationsquickly Jersey recovered from the recession.The footage was used in the radio drive-time showlater that afternoon, as well as the local televisionevening news.Following the interviews, Izza went to the RadissonWaterfront Hotel, venue for the lunch event with newmembers, existing members and business leaders fromthe local community. The hotel itself is part of aredevelopment scheme to encourage a moreconcentrated financial centre in St Helier and to helpinward investment. Signs of progress are good with theexample of Marco Pierre White already taking a retailunit on the harbour side.Joining Izza at the hotel were new members andtrainees from various organisations on the island. Withthe back shot of the Hermitage of Saint Helier, hespoke to the recent ACAs about the trip and theirMichael Izza presents Simon Young,Sanne Group MD, with their authorisedtraining employer certificatenovember/december 2010 londonaccountant

CHANNEL ISLANDSexperience of the exam process. He was theninterviewed by Harry McRandle, business editor at theJersey Evening Post. Founded in 1890, the paper ispublished six days a week and is the only newspaperfor Jersey – its motto being ‘at the heart of island life’.The interview covered a variety of subjects, from Izza’sexperience of Jersey to the latest results of the BCM.Following a buffet lunch with representatives of thebusiness community from Jersey, Izza spoke about thework that was being undertaken by the ICAEW on anumber of issues on behalf of the profession. Thisincluded legal professional privilege as well ascampaigning for government to publish the whole ofits accounts in a transparent and accessible way. Toconclude, Izza answered questions from the audienceon a variety of topics including the problem ofunqualified’s versus qualified accountants.ACCREDITATIONAfter lunch and a short walk into the centre of StHelier, Izza visited local business Sanne Group. Theorganisation had earlier in the week been awardedthe status of authorised training employer. During thevisit, he presented the firm with the accreditation aswell as meeting some of its current trainees. Sanne isa provider of international fiduciary services and hasoffices in Luxembourg, Isle of Man, Dublin, Dubai andHong Kong as well as Jersey, and had been eager tobecome ACA authorised trainers to help ensure thequality of its staff going forward as a business.Izza commented: ‘The financial crisis has illustratedthe extent to which the world’s capital markets areinterlinked, reinforcing the need for a globallycoordinatedresponse based on the principles oftransparency and accountability. The UK cannot actalone in responding to the crisis, and Jersey, as aleading financial centre, has a key role to play inleading on the response.‘In terms of its economy, the island has tentativelyemerged from recession, but economic recovery will bea long process. From what I have seen today, the rightpeople are in place to ensure that local businessgrowth is realistic and sustainable.’The day finished with a short flight home and not anash cloud in sight.WHY OFFER ACA TRAINING?Sanne Group on Jersey has recently been accredited as ACA trainers. Benefits to abusiness are numerous and include:■ A flexible, modular schedule. You can arrange your students’ study leave to fit in roundyour operational needs.■ Tailored to suit your company. A choice of routes through the exams lets you tailor theprogramme your students follow to benefit your practice.■ Variety of tuition delivery. Local tuition can offer ACA training via residential, blockrelease,evening, weekend or home-study courses.■ Frequent exam sittings – can tailor when your students sit their exams to better suit theworkflow of your firm and the ability of each student.■ Credits for prior learning – students with relevant qualifications are exempt from certainACA modules.■ Convenience – the six knowledge modules are computer-based and can be taken at alocal centre.■ Top quality case study – the case study replicates real-life business scenarios.Further information can be found at www.icaew.com/employersTrip highlights includedmeeting new ICAEWmembers and students,as well as speaking to theisland’s business communityCaroline Florence is the mediarelations manager (south) atthe ICAEWlondonaccountant november/december 201021

HISTORYGONE BUT NOTFORGOTTENSEVENTY YEARS AFTER THE LONDON BLITZ, JONATHON KEYMER EXPLAINS HOW ECHOES OF THEWAR ARE ALL AROUND USThe media have been full of stories remindingus that this year marks the 70 th anniversary ofthe start of the Blitz. The German bombing ofcities such as London was particularly heavy betweenSeptember 1940 and May 1941. In 1944, the onslaughtwas renewed following the construction of Germany’sso-called Vergeltungswaffen, or ‘revenge’ weapons –V1 flying bombs and V2 rockets. Over the course ofthe war, London was subjected to intense attacks, andareas such as the East End, docklands and parts of theCity were devastated, or to use a Luftwaffe phrase ofthe day, ‘coventrated’.Seventy years on, our city is barely recognisable fromthe battered, almost apocalyptic, scenes that we seeon the television. The majority of Londoners now haveno memory of the war. It may well have happened onthe moon.But, for the eagle-eyed, signs of war’s ravagessurround us. A mere 200 yards from CharteredAccountants’ Hall, the Bank of England’s walls containpockmarks from a nearby bomb blast, as does theCollege of Arms, which stands as the sole pre-warsurvivor on Queen Victoria Street. At Waterloo Place inSt James, it is possible to imagine the exact pointwhere a bomb fell by examining the shrapnel scars onsurrounding statues.And it is not just in the physical damage that the warstill makes its presence felt. Graffiti left by homesick USsentries survives on the walls of Blewcoat School inWestminster, while away from the centre of London, inCarshalton, children now play on the remains of thevillage’s public bomb shelters.CALM BEFORE THE STORMThe city had made great efforts to ensure theprotection of its people and property. St Paul’sCathedral, for example, had removed its valuables tosafety and converted its crypt into a secure area for itsarchives. The western end of the building was fortifiedas an air-raid shelter and even made gas-proof. TheRed Cross and the St John Ambulance set up campin the cathedral, as well as local fire brigade and22civil defence units, which installed a control centreconnected to firewatchers throughout the City.By winter 1940, 79 underground stations had beenconverted to shelters, with treasures and pieces of arthidden in the tunnels. Beds were brought into theshelters and, as the war progressed, those who hadlost their homes took up semi-permanent residence. Asubterranean culture evolved. For 1,832 days,Methodist Central Hall, where in 1946 the UnitedNations would hold its first general assembly, had thelargest public shelter in Westminster. There weredormitories, canteens and medical facilities.Underground concerts were held by theEntertainments National Service Association, betterknown as ENSA, while the gentlemen’s lavatory wasallegedly equipped with a darts board.The bombing started on 25 August 1940, with thenovember/december 2010 londonaccountant

HISTORYContrary to popular belief, St Paul’s itself was hitseveral times. The high altar was destroyed,although its famous dome survivedfirst serious raid attacking the docks in earlySeptember. On 9 September, the Bank of Englandtelephone exchange was hit. Four days later,Buckingham Palace was bombed for the first of severaltimes, prompting Queen Elizabeth – later the QueenMother – to remark: ‘I’m glad we’ve been bombed.It makes me feel I can look the East End in the face.’Contrary to popular belief, St Paul’s itself was hitseveral times. The high altar was destroyed, althoughits famous dome survived.The night of 29 December was, for London, theworst of the war so far. The damage from that night’sraids constituted the largest single area of devastationin the country, stretching from Islington to the southside of the City. German incendiary bombs, which atone point were falling at a rate of 300 a minute,started up to 1,500 individual fires. Not for nothing isthe night sometimes referred to as the ‘Second GreatFire of London’.Many City workers are familiar with the largecrossroads outside the Bank of England and the RoyalExchange, which formed the focal point of the G20unrest of April 2009. Fewer may be aware that it wasonce known as the ‘Biggest Crater in London’ – theresult of a bomb penetrating the tarmac and liftingthe roof off Bank station ticket hall below. As the blastrushed down the escalators to the platforms below, itincinerated dozens of people, making it one of thebloodiest single attacks of the Blitz.The heaviest raid, however, was yet to come. On thenight of 10 May 1941, more than 500 aircraft attackedLondon, killing some 1,400 people. The roof ofWestminster Abbey collapsed and it is damage fromthat night that marks the walls of St Clement Danes onthe Strand. Visitors to the Temple Church can seedamage on the effigies caused by the molten lead thatfell from the roof while it burned.With the stresses and strains of our daily lives, it iseasy to forget that earth-shattering events once tookplace where we now live and work. But there is muchthat remains of London’s recent history for those whoknow where to look.Jonathon Keymer runs tours ofcentral London, paying particularattention to the areas affectedby the Blitz. All proceeds go tothe Soldiers, Sailors, Airmen andFamilies Association.For details, emailjonathon.keymer@icaew.com.For details of the Soldiers, Sailors,Airmen and Families Association,visit www.ssafa.org.ukTHE INSTITUTE AND THE WARSurprisingly, despite being in one of theworst-hit areas, Chartered Accountants’Hall survived the Blitz relativelyunscathed. The membership, however,participated in the war effort at home andoverseas.Of 13,000 members, 3,000 pledged full-timenational service: 475 lost their lives.In prisoner of war camps, captured charteredaccountants, alongside other professionals,formed groups to teach other inmates tradesthat they might follow after the war. As a result,many prisoners sat official institute papers andpassed the ACA course while ‘in the bag’.On the home front, the membership’scontribution was also notable. As recognitionof the importance of strong finances – Ciceroonce referred to money as the ‘sinews of war’– chartered accountancy had been designateda reserved occupation since the Great War.The war made it necessary for the completeindustrial and financial resources to bemobilised. As the prospect of war loomed,6,000 members responded to institutepresident CJG Palmour’s invitation that theyregister their skills for the war effort. Many werethen enlisted as senior advisers to governmentand industry. Others were appointed astemporary officers in the Army Service Corps oras assistant paymasters in the Royal Navy.Other challenges, less glamorous perhaps,but unique to the profession, manifestedthemselves during those dark days. Largescalebombing throughout the country, forexample, had a particular resonance forauditors. Publishing information in acompany’s accounts that disclosed thedamage caused to an organisation’s premisescould help the enemy determine theeffectiveness of his attacks. In August 1941,therefore, the institute’s council issuedpractising members with a letter suggestingalternative wording to be used on thebalance sheet of a company whose premiseshad been damaged.londonaccountant november/december 201023

TECHNOLOGYDON’T FORGETYOUR MEMORYPHILIP FISHER FINDS THAT YOU CAN BACK UP ALL YOUR DATA, TAKE IT AWAY WITH YOU ANDATTACH IT TO ANY OTHER COMPUTERHave you ever lost all of the data on yourcomputer? Even losing your contacts databaseor emails is enough to cause sleepless nights andmultiple weekends of effort trying to recover your life.In the old days, the only option was to back upeverything on to a floppy disk (remember those?) andmore recently, a CD-ROM, DVD or memory stick took over.These will all soon be things of the past, as productssuch as the WD My Passport Elite 500 GB hard diskdrive become all the rage. Available in a series of shinycolours (mine is metallic blue) that look really cool andweigh next to nothing, these capacious hard disks willliterally fit into a jacket pocket. That means they can betaken anywhere. Since they operate from a computer’sUSB port without any additional power sourcerequired, the hard drives are available to use withinseconds.This particular product, which is available for under£70, is a relatively upmarket version. In particular it hasits own docking station, although a USB cable is alsoprovided for travel use, an indicator on the front thatshows how much memory is left and an inbuilt memorybackup program called WD SmartWare.As soon as you turn on a PC or laptop or plug in MyPassport, the unit will start backing up all of the dataon the computer’s hard drive. The first time this couldtake days, but afterwards it will just update any filechanges, which might well only take a few seconds.MAYBE A LITTLE LIMITEDThis program is a little limited, in that there is a choiceof either backing up the whole system or one of half adozen specified file types including pictures, moviesand mail. In principle that is fine, but if you want tolimit what is backed up, it may be better to use adifferent program, possibly one supplied with yourcomputer’s operating system.As an alternative, rather than using a program, sinceMy Passports are merely external computer harddrives, you can just drag files from one folder toanother on the originatingcomputer, and within seconds youwill be able to pocket the harddrive and take it away with therelevant data safely stored.This hard drive has exactly thesame capacity as the one on mydesktop computer, and thereforeoffers far more flexibility than amemory stick. In addition tousing it as a facility to protect allof the data on a computer,there are several other benefitsthat might seem attractive.First, if you’re going awayand do not want to take acomputer with you, it’spossible to take literally all ofthe data on your computer(the largest My Passportholds 1 TB) away with youand attach it to any othercomputer, for example in anoffice or internet cafe.Similarly, if you have aNetbook or similarcomputer with verylimited memory, thiscan be supplementedby a portable harddrive, meaning thatyou can take a big bankof movies or photos away and have them instantlyavailable. Finally, it has proved a boon in loadingprograms on to computers without a DVD drive. Youjust copy them on and launch.The Elite version of the My Passport is an incrediblysleek and amazingly useful resource that should be acompulsory travelling companion for every busyLondon businessman or woman.WD My Passport Elite500 GB hard disk drivePhilip Fisher heads theemployment tax and rewardsteam at PKF24november/december 2010 londonaccountant

COMMERCIAL PROPERTYPFI: IT MUSTN’T BEALLOWED TO DIEWITH THE CSR CASTING A LONG SHADOW, PFI PROJECTS HAVE COME IN FOR UNWELCOME MEDIAATTENTION. BUT, SAYS BEN HUGHES, LIFE WITHOUT THEM IS HARD TO CONTEMPLATEThe private finance initiative (PFI) model needsreform, but it remains the only game in townwhere clients have no capital. There has beenmuch debate and disdain of late, expressed in equalmeasure, over PFI projects, and while much of what hasbeen said has some justification, it’s important that wedon’t get carried away with the alarmist governmentspending-obsessedmedia and apprehension aboutOctober’s comprehensive spending review.Ultimately, PFI is arguably viewed as a moreexpensive way of delivering a project, with annualrepayments ultimately sticking out like a sore thumb onthe clients’ balance sheets. This is when compared witha capital procurement, of course, where there is noannual commitment other than maintenance costs. Butwho has the capital at present, or the mettle, to spendlarge sums of money on projects, under current marketconditions?Is a PFI really that bad, then? A public sector, capitalfundedproject may still actually be financed, with theinterest attributed to this borrowing simply washed upwith all other public sector debt rather than beingassigned to the project. It is this notion that contradictsthe assertion that PFIs are more expensive.In the wake of diminishing resources, further cuts tocapital budgets on the horizon, and nervousness stillevident in the funding markets, where will thehundreds of millions of pounds come from to pay forthe new schools, colleges or hospitals that are neededbefore the debt has been repaid in full?It’s important that value for money – the Holy Grailfor any project – isn’t seen simply through the narrowprism of construction cost or annual rental calculations,however dire the nation’s finances are.DELIVERY ON SEVERAL LEVELSWhat is important to remember is that PFI, as a model,delivers on a number of levels. While the buildingitself is constructed, the contracting authority is alsoprocuring a maintenance contract over the term of thecontract, so it is unfair for a PFI deal to be judged ona like-for-like basis with other construction projects ormodes of procurement.If PFI funding can deliver a much-needed facility thatwould otherwise be unachievable, such as a newhospital, then should we still assess value for money insuch a binary way?Equally, if reduced capital budgets prompt someclients to return to lowest cost tendering as the meansof getting things done, then all the hard-earnedlessons of the past – delays, spiralling costs, poordesign and future maintenance problems will soonreturn.One argument is that the PFI model encourages farbetter design and management of the building – whichultimately becomes an asset shared by the developerand the client. The intent to instil the principles ofefficiency, quality and sustainability becomeparamount.Indeed, the need for new buildings to meet highBREEAM (BRE Environmental Assessment Method –the leading and most widely-used environmentalassessment method for buildings) standards andefficient EPC (Energy Performance Certificate) ratingskeeps sustainable design on the agenda. However, byforcing down costs, this means that such aspirationscontinued on p26 londonaccountant november/december 201025

COMMERCIAL PROPERTYmight have to be scaled back.Using PFI to develop a public sector asset withexperienced private sector developers and/oroperators is certainly one of the best ways to achievenew requirements for sustainability.MEDIA ANGSTMuch of the recent media angst about PFIs has beenfocused on the cost of repayments on PFI loans.Since the collapse of Lehman Brothers, bankingconditions have understandably become much tighter.However, banks continue to lend to PFI projects andonly one required the intervention of the Treasury’sinfrastructure finance unit to obtain the requiredfunding, although the maximum size of deal that canbe financed through this unit has reduced with bankcapacity.The creation of the Green Investment Bank mayassist in making available lower-cost long-term debt forPFI projects as well as other infrastructure, in additionto the significant opportunities for refinancings toachieve more favourable terms when PFI deals closed(since 2008) are due to complete construction over thenext few years. Certain institutional investors are alsoemerging as PFI lenders because they have a naturalappetite for long-term debt, provided the constructionrisk aspects are acceptable.Right now, construction costs are at their lowest formany years. While it may cost more to borrow money,the overall price of a project will inevitably be lower inconstruction cost terms.From a developer’s point of view, the issue with PFIprojects lies in the bidding process.It is hard to think of many developers who have thecash reserves needed to take a punt on a biddingcontest that could leave them out of pocket by millions,only to come home empty-handed. Even those whoare active in the PFI market are understandably morerisk-averse at present.In this sense, clients need to help de-risk the bidprocess.Competitive dialogue – long lauded as a win-winsolution for public sector procurement – is perhaps toolengthy and costly for the construction process undercurrent market conditions. Without a well-established,efficient procurement team with very clear goals, it iseasy to see how cost and programme ‘creep’ mayarise, thereby alienating those bidding.SHARE THE PAIN, SHARE THE GAINStreamlining procurement processes could bringefficiency-saving benefits to public sector clients too.Clients could cap the fees spent on the bidding processin order to level the playing field between developers,while the developer would benefit from reducedexposure to adviser’s fees – akin to a ‘shared pain-gain’scenario.So while much can be done to help increase theappetite of contractors and developers to stick withPFI, the outcome of the CSR will no doubt have abearing on whether public sector clients will still use it.If the cuts to capital budgets are deep, then theappeal of PFI may arguably increase. It is hard toenvisage a wholesale increase in capital budgets to theextent that development can be brought forwardwithout PFIs and/or some other form of financingmechanism.While there is a counter-argument to suggest thatborrowing against a future asset is one of theunsustainable practices that contributed to the bankingcrisis, it is not such a valid claim because without thisscenario, the new projects and public facilitiesmentioned earlier would not be delivered, nor wouldbanks profit from such deals, thereby creating adownward spiral of inactivity.It’s better for everyone that we review and revise themodel and approach it with a rational mindset, thannot build at all.Without a wellestablished,efficientprocurementteam with veryclear goals, it iseasy to see howcost andprogramme‘creep’ may ariseBen Hughes is an assistantdirector in the centralgovernment team at DriversJonas DeloitteCOMMERCIAL PROPERTY INDEXCommercial property consultants Drivers Jonas Deloitte (www.djdeloitte.co.uk) have published their Q3 2010 results for central London. Thegraph opposite shows the current office rent paid in both the City andWest End. Both locations have witnessed rental growth this year, which is beingdriven by the lack of top quality grade A product.Ann Ibrahim, assistant research manager, commented: ‘Grade A availabilityin the City is currently at its lowest level for 18 months. Rents have risen by 24%in the City this year and occupiers are now paying £53.50 per sq ft for a typicalgrade A letting of 10,000 sq ft.’The City is not alone in seeing rental growth, with the West End alsowitnessing an increase of 21% year on year with rents now at £85 per sq ft (asat 10 September). Ibrahim added: ‘Like the City, the West End is experiencinga lack of top quality grade A product, which is why we have seen this rate ofrental growth.’PRIME RENTS130 £per sq ft120110100CityWest End9080706050403000 01 02 03 04 05 06 07 08 09 1026november/december 2010 londonaccountant

CAREERSDIARY OF A LONDON RECRUITERPOSITIVELYPROFESSIONALAS DEMAND INCREASES, NIGEL BOND IS IN NEED OF TOP-QUALITY CANDIDATESOn the whole, we have been really busy overthe last few months as demand for internalauditors continues. Every large corporateorganisation has regulatory and compliance legislationthat they must adhere to, which means that internalauditors are required across the spectrum of commerceand industry. In addition, the increasing need forinsurance and financial services organisations toimplement regulatory controls has created strongdemand for compliance and risk professionals, whichin turn drives the need for internal auditors to monitorthem and ensure that reporting is done correctly.Currently, the largest recruitment activity is within thelarge investment banks and commerce & industry, withthe majority of available roles residing at the £50,000-60,000 level. The main recruitment challenge we arefacing is a lack of top-quality candidates as demandincreases. Candidate confidence is slowly beginning torise, and professionals are becoming more positive andwilling to look around for jobs.Most employers I work with are requestingcandidates who have two to four years’ postqualificationexperience in internal audit, andpreferably experience within the Big Four. They arealso looking for professionals with capital markets andbanking experience.The other Monday, I met with a couple of clientswho work in the City within a large investment bank.We catch up on how the downturn affected theirbusinesses and how the future looks. We also discussthe current jobs market and I explain that we areseeing talented professionals starting to move rolesagain. They inform me that they are not currentlyrecruiting but always have a requirement for talentedinternal auditors. We agree to keep in regular contactso that I can inform them about relevant candidates asand when they come on to the market.Tuesday I met with an external auditor who has fiveyears’ experience in internal audit and assurance. Wediscuss her background, which is based in operationaland compliance audits. We also talk about her currentaspirations and goals, remuneration expectations andthe current opportunities open to her. I am working ontwo roles I think she is agood match for, so we agreeto submit her details andthen set a date the nextweek to catch up.OUI, OUI, OUIMid-week, a job offerwas made to one ofmy candidates who is aFrench-speaking internalauditor within a blue chip ITcompany. I let him know thegreat news; he is delightedand verbally accepts. Ithen let him know that theemployer will arrange fora contract to be sent outin the next few days. Weprovisionally agree a startdate and I advise him on thebest way to approach handing in his notice.On the Thursday I met with a candidate who Irecently placed; he is due to start at a majorinvestment bank on the following Monday. We talkabout the current market and I get a chance to invitehim to a leadership forum Hays is hosting. We regularlyhost events like these because it is a great way for usto share our expert insight with others. This seminarfocuses on how managers can lead internal auditdepartments out of the recessionary market.To finish the week I spoke with various candidateswho are looking for a new job. I always advise mycandidates to highlight their strong technical skills andin-depth knowledge of operational factors, systems,accounting standards and commercial drivers of abusiness, as well as their strong understanding of riskassessment and controls on their CV. Employersrequire individuals with excellent communication skillswho are able, both written and verbally, to report toand engage with a non-financial audience aboutcomplex issues. Employers prefer professionals whocan simplify concepts to engage other stakeholders.Nigel Bond is a recruiting expertat Hays Senior Finance andspecialises in finding jobs forinternal auditing professionals incentral London.For more information and toaccess current jobs please visit:www.hays.co.uk/accountancyquallondonaccountant november/december 201027

REVIEWSTHEATRE REVIEWS by Philip FisherDESIGN FOR LIVINGby Noel Coward, Old Vic(playing until 27 November)Noel Coward tends to be best known for very witty, very Englishcomedies such as Private Lives, Blithe Spirit and Hay Fever.He also penned several other racier plays in which sexualpeccadilloes take centre stage.Design for Living, which he wrote as a vehicle to appear with his greatfriends the married couple Alfred Lunt and Lynn Fontanne, falls firmly intothis category. As such, it might well come as a surprise to those whobelieve that such an archetypal Englishman must be entirely respectable.The central figure in Anthony Page’s delightful revival at the Old Vic isGilda, played with great style and humour by Lisa Dillon. She is aninterior designer with a man problem, or to be more exact three,matching the number of sumptuous art deco sets created by LezBrotherston.As the play opens, Gilda seems happy to be living in sin with artistOtto (Tom Burke) in a Parisian garret. However, her bedmate is not theartist but his best friend, Andrew Scott as a rather camp, quirky novelistcalled Leo, with whom by Act 2 she is cohabiting in London.By the final act, Gilda has forsaken them both for the luxury New York penthouse of Angus Wright’s po-faced artdealer Ernest, who one would have thought excessively dull for her tastes. That turns out to be the case when Ottoand Leo turn up unexpectedly, giving a fine impression of sexually ambiguous twins.Kevin Spacey’s theatre has done the play proud, giving Page and his team both on and off stage the financeand latitude to create a really memorable three hours (including two intervals).YES, PRIME MINISTERby Antony Jay and Jonathan Lynn, Gielgud Theatre(playing until 15 January)In some ways, there is hardly a need to review the stageversion of this much-loved TV series. Readers will already haveguessed exactly what is on offer and should not be too far out.The original writers have penned a new two-hour long scriptfeaturing the central trio, admittedly with new actors but with aplot that draws ideas and lines from the days when Yes, PM wascompulsory watching close to 30 years ago.In plot terms, PM Jim Hacker tries to juggle a coalition cabinet,the threat of the euro, the bigger threat of Sir Humphrey Applebyand the nasty minister of an oil-rich country – who will happilybail out the UK in exchange for a night out with an underage girl.This is an opportunity for many good laughs but, sadly, verylittle cutting-edge political satire that one would have thoughttoday’s Lib-Con coalition would offer.The good news is that Henry Goodman does an uncanny imitation of Nigel Hawthorne playing Sir Humphrey,David Haig is rather more manic as Hacker, who seems like a cross between Paul Eddington and John Cleese. Aformer Richard III, Jonathan Slinger uses his rubbery features to make Bernard, seemingly always on the verge ofphysical collapse, less urbane than Derek Fowlds.There may not be any big surprises, but there seems little doubt that this transfer from the Chichester FestivalTheatre will be one of the hottest tickets of the autumn, trading on our love of a seminal TV comedy.Philip Fisher is a charteredaccountant and theLondon editor forwww.britishtheatreguide.info28november/december 2010 londonaccountant

REVIEWSCD REVIEW by Richard JosephERIC CLAPTONClapton (Reprise)Up to now I’ve tended to review lesser-knownbands – on their way up instead of having beenthere for more than 40 years – but I couldn’tignore the new solo album from this giant of the worldblues and rock scene. And a weird mix it is – bluesbasedmaterial of the sort we might associate Claptonwith, such as Hard Times and Travellin’ Alone, alongwith Autumn Leaves and How Deep is the Ocean. ECplays Irving Berlin! Can you dig it?I can. I’ve been a fan of Clapton since the early days,and he was a major factor in my lifelong obsession withthe guitar. But one of the aspects of Eric I feel has beenoverlooked is his very appealing and soulful singing voice,which is well featured and showcased in this album.We kick off with the terrific L’il Son Jackson songTravellin’ Alone – real Clapton hard blues stuff, withsome great guitar from Eric and his co-producer DoyleBramhall. Rockin’ Chair is up next, a slow jazzy shufflefrom the New Orleans-end of the blues tracks, and thenthere’s J J Cale’s River Runs Deep from 1971, whichClapton performs with Cale himself.Next there’s a fairly straight version of Irving Berlin’sHow Deep is the Ocean followed by Fats Waller’s MyVery Good Friend the Milkman, accompanied by sometraditional New Orleans-style brass, and piano solos bythe great Walter Richmond and Alan Toussaint.Only so much space for this review, so suffice it to saythat the stand-out track (by some distance) is DiamondsMade From Rain – one of the few pieces of new materialon the album. This is a wonderful ballad with a lushorchestral backing and two genuinely moving guitarsolos from Clapton (this will be the first single from thealbum).During one of his pre-release interviews Clapton says ofthe strange mix of material on this album: ‘If it’s a surpriseto the fans, its because its a surprise to me’. In a year whena lot of major artist releases have been so disappointing,this is a shining beacon of musicality and artistry.Richard Joseph is a solepractitioner based in NorthLondon and honorary secretaryand past-chairman of the LSCA.He is an experienced guitarist,who has played with manybands over the last 40 years. Hewas the featured lead guitariston Frazer Kennedy’s trackYesterday’s Gone, which went toNo 1 on the Tourdates UnsignedArtist Chart in September 2008.He is also lead guitar for 60srevival band The Retros.RESTAURANT REVIEW by Lesley BoltonRSJ33 Coin Street, London SE1 9NR 020 7928 4554www.rsj.uk.comIt wasn’t my first visit to RSJ – a gem of a restauranttucked away within easy walking distance of WaterlooStation and a stone’s throw from the ITV building andall the South Bank. It was chosen for a business lunch inSeptember, convenient for me for the station, and formy guest, Bill Dodwell, tax policy director at Deloitte.You find a friendly welcome at the side entrance tothis restaurant and are guided upstairs to the small butcosy first-floor eating area. The service is attentive andthe atmosphere relaxed.The restaurant has been in The Good Food Guidesince 1981 and is among the guide’s longest-servingestablishments. But the prices are reasonable. I chosefrom the a la carte menu, kicking off with a beetroottatin, goat’s cheese cream, lemon and raspberryvinaigrette (£7.50). My guest chose from the fixed-pricemenu (two courses £16.95; three courses £18.95). Hepicked the terrine of free-range duck confit, orangeand chilli chutney and toast, followed by roasthaddock, English tomato, green bean and cumin salad,cockle, lemon and shallot dressing. My main coursewas the dish of the day: perfectly cooked sea bass withshrimps and artichoke.The choice is impressive, ranging from salmon, divercaughtscallop risotto (as main or starter) and sautéedking prawns, squid and clams, to roast English lamb.Unlike many menus, frankly I could have pickedanything from this one.We passed on the dessert, but plumb crumble tartwith cinnamon ice cream, geranium scented pannacotta, fresh mango, and blackberry meringues, amongother delicious items, were on the menu – all at £5.75.This is the place to go if you love Loire wines. It hasbecome famous for its selection and boasts more than250 on its award-winning list. Again though, these arenot overpriced: a glass of 2009 Saumur Blanc can behad for £3.95. And bottles begin at £16.95.In 1996 the restaurant set up the RSJ Wine Companyto import and sell direct wines that people hadenjoyed during their meal.Eating at RSJ is a culinary delight.REVIEW A RESTAURANT FORLONDON ACCOUNTANTWould you like to review arestaurant you have visitedrecently on business? Please sendyour review (max 300 words) tolesley.bolton@wolterskluwer.co.uk.Please include a daytimetelephone numberlondonaccountant november/december 201029

DIARYEVENTS LISTINGLEE, LEWISHAMSOUTH EAST LONDON AREA SOCIETY OF CHARTEREDACCOUNTANTSFREE MEMBERS’ MEETINGSMeetings start at 19:30 and end at 21:00. All events will be held atThe Crown, 117 Burnt Ash Hill, Lee, London SE12 0AJ. Meetings arefree to SELAS members (£40 subscription fee).Day/Date EventThu 18 Nov Fraud/Money LaunderingDr Stephen Hill, Fraud Advisory Panel2011Thu 17 Feb Pensions UpdateKevin Hains, Francis Townsend and HaywardThu 17 Mar Staff AssessmentRobert Griffiths, RGA ServicesThu 28 Apr Budget UpdateGareth Waterworth, Dixon WilsonThu 26 May Excel for AccountantsSpeaker tbcThu 16 Jun AGM and Meet HMRC (starts at 19:00)Thu 21 Jul Companies House UpdateNeil Butler, Companies HouseThu 29 Sep IHT and TrustsGareth Waterworth, Dixon WilsonThu 21 Oct Year-End Tax PlanningGareth Waterworth, Dixon WilsonThu 27 Oct Employment Law UpdateSpeaker tbc, PeninsulaThu 24 Nov Employment and Benefit TaxesGareth Waterworth, Dixon WilsonPROFESSIONAL TRAINING COURSESCourses start at 17:30 and end at 21:00. All events will be held atColfe’s School, Horn Park Lane, London SE12 8AW. Prices start at£45 per course.Day/Date EventTue 30 Nov VAT UpdateNeil Warren, LecturerTue 1 Mar Acting for Higher Rate TaxpayerRobert Jamieson, Mercer & HoleThu 31 Mar PPP & PI Time BombsBob Trunchion, MacIntyre Advisory Services LtdThu 5 May Accountancy and Assurance UpdateAndrew Guntert, MerciaTue 28 Jun Retirement TaxesGerry Hart, LecturerTue 6 Sep How to Run Your BusinessLouise Dunford, LDC TrainingThu 20 Oct VAT updateNeil Owen, VAT Advisory Services LtdTue 15 Nov Corporation Tax RefresherMark Ward, PTP LtdRichard Holme, CreaseysMEMBER DISCUSSION GROUPMeetings are normally held from 19:00 to 21:00 on the secondWednesday of each month. All meetings are held at The Crown(see above) and are free to SELAS members (£40 subscription fee). Futuredates in 2010: 10 Nov, 8 Dec, 12 Jan, 9 Feb, 9 Mar, 13 Apr, 11 May and 8 JunFor details of future events, members should contact Gina Raggett,23 Pagoda Gardens, London SE3 0UX. Tel: 020 8852 9772;mobile: 07790 181 729; email: selasgr@hotmail.comHENDONNORTH LONDON SOCIETY OF CHARTERED ACCOUNTANTSMEETINGSAll meetings are held at Hendon Hall Hotel, Ashley Lane, Hendon,London NW4 1HF. Courses cost £45 in advance, £50 at the door or £300for an annual subscription. All courses start at 17:00 and end at 21:00Day/Date EventMon 15 Nov Finance ActRobert Jamieson, Mercer & HoleTue 7 Dec VAT UpdateStephen James, BDO LLP2011Day/Date EventWed 9 Feb How to Maximise Opportunities and Minimise Taxbefore the Year-endFrancesca Lagerberg, Grant ThorntonTue 8 Mar PAYE & NI UpdatePaul Soper, PTP LtdTue 12 Apr Tax, VAT and Employment UpdateGlyn Edwards & Emma Neal, CCHTue 10 May Auditing Techniques UpdateAlan Morgan, PCPFor further information, please contact Linda Graichen, NLSCA,c/o Silvermans, 2 Castleham Court, 180 High Street, Edgware HA8 7EX.Tel: 020 8450 4534. Email: administrator@nlsca.orgOTHER EVENTSDay/Date EventThu 11 Nov Practice Miniforum (free of charge)17.00-21.00 Hendon Hall HotelContact Elizabeth Russell, see page 32HARROWNORTH WEST LONDON CHARTERED ACCOUNTANTSMEMBERS’ MONTHLY MEETINGSAll events will be held at Harrow Civic Centre, Station Road, HarrowHA1 2XF. Events start at 19:00 and finish at 20:45. £50 membership fee.Day/Date EventTue 9 Nov Audits you should never do just one ofAndy Holton, SWATTue 7 Dec NI – Understanding the Key IssuesJim Yuill, Yuill Consultancy2011Day/Date EventTue 11 Jan Financial Reporting Blunders – and How to Avoid ThemMike Ulrich, lecturerTue 8 Feb VAT – Solving your Clients’ ProblemsNeil Owen, Southern VAT ConsultancyTue 1 Mar Risks and Responsibilities of DirectorsMike Griffiths, lecturerTue 29 Mar Inheritance Tax – Practical IssuesPaul Soper, PTPTue 3 May 1. AGM followed byICAEW Chief Executive Michael Izza2. Surviving an ICAEW Disciplinary ComplaintRobert MaasContact Vanessa Drake, 312 Carr Road, Northolt, Middlesex, UB5 4RL.Tel: 020 8930 5794. Email: nwlca.vanessa@ntlworld.com30november/december 2010 londonaccountant

DIARYEVENTS LISTINGWATFORDNORTH WEST LONDON CHARTERED ACCOUNTANTSEXTENDED EVENING COURSESEvents will be held at Hilton International Hotel, A41 Watford Bypass,Watford, Herts WD25 8HA. Registration at 16:00; events start at 16:30,finish at 20:30. Courses cost £45 or £155 for four courses.Day/Date EventTue 30 Nov Let’s Get Clear On Clarity – The New Auditing StandardsJohn Selwood2011Day/DateTue 15 FebTue 12 AprTue 14 JunNEW MALDENSOUTH WEST LONDON CHARTERED ACCOUNTANTSTAX DISCUSSION GROUPThe Group meets at 19:15 for 19:30 at The Royal Oak, Coombe Road,New Malden. Season ticket is £40 or £7 per meeting.Wed 10 NovWed 8 DecEventTax Planning for Owner-managed BusinessesFrancesca Lagerberg, Grant ThorntonAuditing in a Recessionary EnvironmentAndrew Guntert, MerciaTopical Tax TipsTim Good, PTPContact Vanessa Drake, 312 Carr Road, Northolt, Middlesex, UB5 4RLTel: 020 8930 5794. Email: nwlca.vanessa@ntlworld.comEmployment issuesClive Oliver, PeninsulaiXBRL and HMRC softwareAnita Monteith , ICAEWContact Elizabeth Russell, see page 32EALINGWEST LONDON CHARTERED ACCOUNTANTSEvents are held at Ramada Jarvis Ealing, Ealing Common, W5 3HNunless otherwise shown. Events start at 19:00 and cost £5 on the door.Day/Date EventWed 10 Nov Insolvency UpdateSimon Parker, Antony Batty & Co LLPWed 9 Feb Using CloudDean Miles, LecturerWed 13 Apr ACA TrainingMark Protherough, ICAEWTAX DISCUSSION GROUP16 November, 9 March 2011 and 20 April 2011.Grange Tavern, Ealing Common W5 3XHOTHER EVENTSThu 9 Dec Varsity Match, Oxford vs Cambridge, including12:00-16:00 lunch, Cole Court, Twickenham TW1 1HDContact Elizabeth Russell, see page 32CROYDONCROYDON & DISTRICT SOCIETY OF CHARTERED ACCOUNTANTSHALF-DAY COURSESAll courses start at 14:00 and finish at 17:00 and take place at theAerodrome Hotel, Purley Way, Croydon CR9 4LT. All courses are subjectto VAT. The cost is £65 each for up to two courses, £55 each for 3 to 7courses, or £45 each for more than 8 courses. Specialist topics* cost £65.Day/Date EventWed 10 Nov Planning for the Tax Year End 2010/11Tony Jenkins, Dragon TrainingWed 24 Nov IT Update for accountants.Colin Scott, Scotts ConsultancyThu 2 Dec Corporation Tax UpdateRosalind Martin, Tax Solutions2011Mon 28 Feb Employee Taxes UpdateMark Ward, PTP LtdMon 7 Mar Implementing Clarity Auditing StandardsVal Steward, V S ConsultancyMon 21 Mar* Charity Accounting & Tax UpdateDon Bawtree, BDO Stoy Hayward LLPTue 29 Mar Financial reporting update for members in businessDavid Chitty, Crowe Clark Whitehill LLPMon 4 Apr Tax Investigations & Inquiries UpdateSue Bradshaw, BTG TaxWed 4 May Spring Tax UpdateMartyn Ingles, MacIntyre Hudson Advisory Services LtdMon 16 May Capital Taxation UpdateMark Ward, PTP LtdWed 8 Jun Business Tax UpdateRosalind Martin, Tax SolutionsThu 16 Jun Legal Issues for the SMELouise Dunford, LDC TrainingTue 21 Jun Practice Compliance & Money Laundering UpdateJohn McCarthy, John McCarthy Consulting LtdTue 5 Jul Audit & Assurance UpdateStephen McAlpine, SBM & CoMon 11 Jul Personal Tax UpdateMark Ward, PTP LtdThu 5 Sep FA 2011Brian Ogilvie, Ogilvie Tax Lecturing Service LtdMon 19 Sep Tax Planning for Family BusinessesTony Jenkins, Dragon TrainingTue 27 Sep Financial Reporting Update for SMEsDavid Chitty, Crowe Clark Whitehill LLPTue 4 Oct* Share & Business ValuationsJenny Nelder, Bruce Sutherland & CoMon 10 Oct Faster completion of SME filesJohn McCarthy, John McCarthy Consulting LtdMon 17 Oct* ProbateAmanda Fisher, AJS Taxation LtdMon 7 Nov Overseas Tax Planning for General PractitionersMark Ward, PTP LtdMon 14 Nov Tax Planning for older clientsGerry Hart, LecturerMon 21 Nov VAT UpdateNeil Owen, VAT Advisory Services LtdMon 5 Dec Planning for the Tax Year End 2011/2012Tony Jenkins, Dragon TrainingTue 13 Dec Corporation Tax UpdateRosalind Martin, Tax SolutionsOther eventMon 14 MarBuild the Firm of the Future ... NowSpeaker: Chris FrederiksenCroydon Park Hotel. Early bird of £51+VATby 31 DecContact Jacquie Fairclough, see page 32londonaccountant november/december 201031

DIARYEVENTS LISTINGCENTRAL LONDONDay/Date/Time EventCostMon 8 Nov LSCA City Lunch (£75 incl VAT, discounts available)12:00 for 12:30 Chartered Accountants’ Hallto 14:30 Guest speaker: Sam Smith, CEO, finnCapFor the above, contact Elizabeth RussellFri 18 Feb 2011 LSCA Annual Dinner (£85+VAT, discounts available)18:30 for 19:15 The Brewery, E1Guest speaker: Barry HearnFor the above, contact Annaliese Shiret, see below.More details at page 424 -26 Mar 2011 Small Practitioners’ Conference(early bird by 3 January 2011: £565+VAT)Robinson College, CambridgeFor the above, contact Elizabeth Allen, see below.More details at page 17Mon 15 Nov Introduction to probate 201009:30-12:45 Amanda Fisher, Lecturer14:00-17:15Mon 22 Nov Personal Tax Update 201009:30-12:45 Mark Ward, PTP Ltd14:00-17:15Mon 06 Dec Implementing the new Clarity ISAS 201009:30-12:45 Val Stewart, Lecturer14:00-17:15Mon 13 Dec Topical auditing pitfalls and tips 201009:30-12:45 John Selwood, Lecturer14:00-17:15For the above, contact CCH. Seminars cost from £49 + VATThu 11 Nov Practice Miniforum (free)17:00-21:00 Hendon Hall HotelFor the above, contact Elizabeth Russell, see belowTue 16 Nov Charity & Voluntary Conference (from10:15-17:00 Business Design Centre, London, £210+VAT)N1 0QHFor the above, contact MSDevents@icaew.comThu 18 Nov Implementing XBRL roadshow (from08:45-12:30 Chartered Accountants’ Hall £55+VAT)For as the above, contact richard.steele@icaew.comCENTRAL LONDON SMALL PRACTITIONERS’ GROUPThe group meets on the third Thursday of most months. Events will beheld at Ambrian plc, Old Change House, 128 Queen Victoria St EC4V 4BJ.Contact Jill Holland at jholland@blackstones.co.uk or 020 7250 3300LSCA YOUNGER MEMBERS’ SERVICES GROUPRegistration at 18.00, events start at 18:30 and finish at 20:30.Seminars cost £15 for members and £25 for non-members.Day/Date EventWed 10 Nov Working OverseasThe Pulpit, 63 Worship St, London EC2A 2DUWed 17 Nov Networking Skills(free)IoD hub, New Broad St, London EC2M 1NHWed 1 Dec Personal Impact PannelHSBC, 8 Canada Square, London E14 5HQContact Annaliese Shiret, see belowFINANCIAL REPORTING DISCUSSION GROUP1 December.2011 programme in preparation.Contact Elizabeth Allen, see belowSPEED MEETING – TRAINING ACASWed 24 Nov, 18:00-21:30. Free of charge.Kingston Business School, Kingston Hill, SurreyContact Jacquie Fairclough, see belowKEMPTON PARKWEST AND SOUTH WEST LONDON CPDAll seminars start at 14:00 and finish at 17:15 and will be held atKempton Park Racecourse, Staines Road East, Sunbury on Thames,Middlesex TW16 5AO.Day/Date EventWed 17 Nov Topical auditing pitfalls and tips 2010Wed 1 Dec Personal Tax Update 2010Tue 7 Dec VAT Issues and Update for the SME 2010Contact CCH, see belowCOURSE CONTACTSChartered Accountants’ Hall, Moorgate Place, London EC2R 6EATel: 020 7920 8682Fax: 020 7920 8648145 London Road, Kingston-upon-Thames,Surrey, KT2 6SR Tel: 01635 588898email: customerservices@cchpd.co.ukwebsite: www.cchpd.co.ukELIZABETH ALLEN020 7920 3504elizabeth.allen@icaew.comJACQUIE FAIRCLOUGH020 7920 8407jacquie.fairclough@icaew.comANA FARIÑA020 7920 8519ana.farina@icaew.comELIZABETH RUSSELL020 7920 8562elizabeth.russell@icaew.comANNALIESE SHIRET020 7920 3515annaliese.shiret@icaew.com32november/december 2010 londonaccountant