Almost 90% of businesses in the UK are confident that their firm will survive the recession, according to research by Clydesdale Bank.
The survey revealed that 89% of business managers are confident their company will survive the recession - with almost a third 100% certain they will make it through.
Despite the downturn the research also showed that less than a third of companies have seen a reduction in business during the recession.
"These figures are promising and show that businesses are beginning to regain confidence. This is a positive sign - where confidence exists growth often follows," said Mike Williams of Clydesdale Bank.
www.ukba.co.uk
Wednesday 30 September 2009
Tuesday 29 September 2009
Barclays most complained about bank
The top five High Street banks have accounted for more than 50% of the complaints received this year by the Financial Ombudsman Service (FOS).
Lloyds Banking Group, Barclays, Royal Bank of Scotland, Abbey and HSBC received 38,000 complaints combined, with Barclays the worst offender with over 8,000 complaints.
The FOS deals with complaints from customers in the financial services industry if firms are unable to settle them themselves and in the first half of the year upheld an average of 59% of complaints.
"Putting this information into the open will now give those worse-performing businesses vital encouragement to improve - which should mean fewer of their customers having to bring complaints to the ombudsman that should already have been resolved," said Walter Merricks, the outgoing chief ombudsman.
www.ukba.co.uk
Lloyds Banking Group, Barclays, Royal Bank of Scotland, Abbey and HSBC received 38,000 complaints combined, with Barclays the worst offender with over 8,000 complaints.
The FOS deals with complaints from customers in the financial services industry if firms are unable to settle them themselves and in the first half of the year upheld an average of 59% of complaints.
"Putting this information into the open will now give those worse-performing businesses vital encouragement to improve - which should mean fewer of their customers having to bring complaints to the ombudsman that should already have been resolved," said Walter Merricks, the outgoing chief ombudsman.
www.ukba.co.uk
Monday 28 September 2009
New rule to protect British workers
Jobs will have to be advertised to British workers in job centres for four weeks before companies can employ individuals from outside of Europe, under new government measures to be introduced at the start of next year.
At the moment jobs have to be advertised for two weeks before they can be given to an individual who is outside Europe.
The minimum salary that will allow an individual to qualify as a skilled worker and be eligible to work in the UK will also rise from £17,000 to £20,000.
"These changes will ensure that businesses can recruit the skilled foreign workers that the economy needs, but not at the expense of British workers, nor as a cheaper alternative to investing in the skills of the existing workforce," said Home Secretary Alan Johnson.
www.ukba.co.uk
At the moment jobs have to be advertised for two weeks before they can be given to an individual who is outside Europe.
The minimum salary that will allow an individual to qualify as a skilled worker and be eligible to work in the UK will also rise from £17,000 to £20,000.
"These changes will ensure that businesses can recruit the skilled foreign workers that the economy needs, but not at the expense of British workers, nor as a cheaper alternative to investing in the skills of the existing workforce," said Home Secretary Alan Johnson.
www.ukba.co.uk
Sunday 27 September 2009
SMEs not managing transport costs
A third of small businesses have taken no measures to better manage their transport costs, according to data released by Enterprise Rent-A-Car.
The survey found that despite 69% of small companies seeing their traffic costs rise 32% have done nothing to make more efficient use of their transport options.
The data also revealed that almost a third of small firms do not communicate their transport policy to their staff, resulting in a fundamental lack of control over transport costs.
"A sober and professional examination of any company's transport practices is likely to highlight at least a couple of practical steps that can be taken to cut costs. It's staggering that so few small businesses are taking the opportunity to find those efficiencies and put them into action," said Rob Ingram, director of business Rental at Enterprise Rent-A-Car.
www.ukba.co.uk
The survey found that despite 69% of small companies seeing their traffic costs rise 32% have done nothing to make more efficient use of their transport options.
The data also revealed that almost a third of small firms do not communicate their transport policy to their staff, resulting in a fundamental lack of control over transport costs.
"A sober and professional examination of any company's transport practices is likely to highlight at least a couple of practical steps that can be taken to cut costs. It's staggering that so few small businesses are taking the opportunity to find those efficiencies and put them into action," said Rob Ingram, director of business Rental at Enterprise Rent-A-Car.
www.ukba.co.uk
Saturday 26 September 2009
Car sales to drive UK out of recession - Manufacturing output growth is the best since January last year
A sharp rebound in the British motor industry may have ended five successive quarters of contraction and pulled Britain out of recession sooner than expected – though only to reach a state of "stagnation".
The Office for National Statistics reported yesterday that manufacturing output rose by 0.8 per cent in July, following a 0.6 per cent recovery the previous month. Output of motor vehicles led the charge, rising by 10.4 per cent in July.
The end of the "destocking" by car dealers and the impact of the scrappage subsidy were said to be the main drivers of the industrial resurgence. The figures are the best since January last year.
Read more: http://www.independent.co.uk/news/business/news/car-sales-to-drive-uk-out-of-recession-1783892.html
www.ukba.co.uk
The Office for National Statistics reported yesterday that manufacturing output rose by 0.8 per cent in July, following a 0.6 per cent recovery the previous month. Output of motor vehicles led the charge, rising by 10.4 per cent in July.
The end of the "destocking" by car dealers and the impact of the scrappage subsidy were said to be the main drivers of the industrial resurgence. The figures are the best since January last year.
Read more: http://www.independent.co.uk/news/business/news/car-sales-to-drive-uk-out-of-recession-1783892.html
www.ukba.co.uk
Friday 25 September 2009
Small firm staff 'more flexible'
Employees working at smaller firms are more likely to adapt their working week to try and help their firms survive the recession, according to research conducted by Orange.
The research revealed that over 65% of staff in companies with under ten employees are prepared to reduce their hours, put in extra unpaid time or accept a pay cut to help their employer in the economic downturn.
In businesses that have a workforce of over 1,000 the amount of staff prepared to make these sacrifices dropped below 40%.
www.ukba.co.uk
The research revealed that over 65% of staff in companies with under ten employees are prepared to reduce their hours, put in extra unpaid time or accept a pay cut to help their employer in the economic downturn.
In businesses that have a workforce of over 1,000 the amount of staff prepared to make these sacrifices dropped below 40%.
www.ukba.co.uk
Thursday 24 September 2009
New recruitment ‘set to rise‘
The number of businesses planning to take on new employees has risen for the first time in three years, according to a study by recruitment company Manpower.
The research revealed that firms in the sectors of transport, communications, hotels and restaurants were most likely to take on new staff in the coming months.
"There are a number of early positive hiring indicators emerging which suggest we may have reached a turning point," said Mark Cahill of Manpower.
www.ukba.co.uk
The research revealed that firms in the sectors of transport, communications, hotels and restaurants were most likely to take on new staff in the coming months.
"There are a number of early positive hiring indicators emerging which suggest we may have reached a turning point," said Mark Cahill of Manpower.
www.ukba.co.uk
Wednesday 23 September 2009
Business confidence highest for two years
Confidence among business professional has risen into positive territory for the first time in two years, according to the latest Institute of Chartered Accountants (ICAEW) UK Business Confidence Monitor.
The ICAEW have revealed that confidence has risen from -28.2 in the second quarter of the year to +4.8 in this quarter - the highest figure since the third quarter of 2007.
This rise in confidence has been attributed to quantitative easing, the fall in interest rates and businesses in the UK having cut all unnecessary expenditure.
"While there is no doubt that the UK economy is on its way to recovery, we shouldn't underestimate the challenges ahead for businesses," said Michael Izza, chief executive of the ICAEW.
www.ukba.co.uk
The ICAEW have revealed that confidence has risen from -28.2 in the second quarter of the year to +4.8 in this quarter - the highest figure since the third quarter of 2007.
This rise in confidence has been attributed to quantitative easing, the fall in interest rates and businesses in the UK having cut all unnecessary expenditure.
"While there is no doubt that the UK economy is on its way to recovery, we shouldn't underestimate the challenges ahead for businesses," said Michael Izza, chief executive of the ICAEW.
www.ukba.co.uk
Tuesday 22 September 2009
Burt lined up for chairman's role as broker plans to create new bank
TOP City financial analyst is planning to set up his own bank, with former Bank of Scotland chief executive Sir Peter Burt as chairman.
Sandy Chen, of stockbroker Panmure Gordon, is also believed to have enlisted the help of other businessmen to try to raise money in the City to buy banking assets to form the nucleus of the new bank.
It is believed the broker is looking for about £100 million to get the bank off the ground and that this could lead to a flotation of the new company, with the timing dependent on the enthusiasm of the City to the idea.
Sources said the strategy of Chen and his associates was to try to attract affluent customers to place their deposits with the new bank, and then use that money to lend out to small and medium-sized businesses, a business area Chen sees as providing a good investment opportunity.
Read more: http://thescotsman.scotsman.com/business/Burt-lined-up-for-chairman39s.5622205.jp
www.ukba.co.uk
Sandy Chen, of stockbroker Panmure Gordon, is also believed to have enlisted the help of other businessmen to try to raise money in the City to buy banking assets to form the nucleus of the new bank.
It is believed the broker is looking for about £100 million to get the bank off the ground and that this could lead to a flotation of the new company, with the timing dependent on the enthusiasm of the City to the idea.
Sources said the strategy of Chen and his associates was to try to attract affluent customers to place their deposits with the new bank, and then use that money to lend out to small and medium-sized businesses, a business area Chen sees as providing a good investment opportunity.
Read more: http://thescotsman.scotsman.com/business/Burt-lined-up-for-chairman39s.5622205.jp
www.ukba.co.uk
Monday 21 September 2009
SMEs shun enterprise finance scheme - Owners see 'little point' in government help
Small businesses appear to be shunning the government’s finance scheme aimed at helping them weather the recession, new research suggests.
A survey by financial adviser Clifton Asset Management found that nearly a third of small business owner-managers had never heard of the Enterprise Finance Guarantee (EFG) scheme, while of those that had, 93% saw ‘little point’ in applying for it.
The EFG scheme was introduced in January to secure bank lending to businesses with a turnover of up to £25m.
Under the scheme, successful applicants could get loans of up to £1m but out of the small percentage of businesses who applied for EFG help, the survey found that only 1% was granted funding.
Read more: http://www.accountancymagazine.com/croner/jsp/Editorial.do?channelId=-305535&contentId=1337608
Source: http://www.accountancymagazine.com
www.ukba.co.uk
A survey by financial adviser Clifton Asset Management found that nearly a third of small business owner-managers had never heard of the Enterprise Finance Guarantee (EFG) scheme, while of those that had, 93% saw ‘little point’ in applying for it.
The EFG scheme was introduced in January to secure bank lending to businesses with a turnover of up to £25m.
Under the scheme, successful applicants could get loans of up to £1m but out of the small percentage of businesses who applied for EFG help, the survey found that only 1% was granted funding.
Read more: http://www.accountancymagazine.com/croner/jsp/Editorial.do?channelId=-305535&contentId=1337608
Source: http://www.accountancymagazine.com
www.ukba.co.uk
Sunday 20 September 2009
Firms hit by bank stealth charges - Lenders ramp up fees and push companies into more expensive loan deals
High-street banks are hitting small firms with a raft of new charges for borrowing money, say small-business organisations. They are also pushing companies to convert their overdrafts into loans that have higher interest charges and more stringent repayment terms.
Banks are finally starting to lend again, but small and medium enterprises are furious at what they regard as a blatant attempt to squeeze yet more money out of them at a time when many are struggling to stay afloat.
(By Rachel Bridge)
Read more: http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6823244.ece
Source: TimesOnLine
www.ukba.co.uk
Banks are finally starting to lend again, but small and medium enterprises are furious at what they regard as a blatant attempt to squeeze yet more money out of them at a time when many are struggling to stay afloat.
(By Rachel Bridge)
Read more: http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6823244.ece
Source: TimesOnLine
www.ukba.co.uk
Saturday 19 September 2009
Recovery has started but economy still faces huge risks
The British Chambers of Commerce (BCC) has today published its September 2009 Economic Forecast. Despite a further downward revision in GDP expectations for this year, the BCC is more upbeat about economic growth in 2010, and has reduced its forecast for peak unemployment.
The main features of the BCC forecast are:
The UK will see a large GDP decline of 4.3% in 2009, followed by positive growth of 1.1% in 2010 and 1.9% in 2011. In June we predicted a 3.8% GDP fall for 2009 and a small 0.6% increase in 2010.
The current recession - recording peak to trough declines of 5.5% - is much worse than the recession of the early 1990s. However, it is less severe than the early 1980s recession, when GDP recorded cumulative falls of 6.0%.
Further big increases in unemployment are expected, but at a reduced pace. Unemployment is likely to rise from 2.43 million to a peak of just over 3 million, or 9.6% of the workforce, in mid-2010. In June we predicted unemployment would hit 3.2 million.
Public sector borrowing is forecast to total some 12.5% of GDP in 2009-10 and 2010-11. Public sector debt is set to rise to dangerous levels in the next few years, in excess of 80% of GDP.
The BCC believes that the MPC will use the full £175bn allocated to the Quantitative Easing (QE) programme. Another increase in the size of the programme, to at least £200 billion, will probably be needed to ensure that the economy does not falter.
Read more: http://www.britishchambers.org.uk/zones/policy/press-releases_1/recovery-has-started-but-economy-still-faces-huge-risks.html
www.ukba.co.uk
The main features of the BCC forecast are:
The UK will see a large GDP decline of 4.3% in 2009, followed by positive growth of 1.1% in 2010 and 1.9% in 2011. In June we predicted a 3.8% GDP fall for 2009 and a small 0.6% increase in 2010.
The current recession - recording peak to trough declines of 5.5% - is much worse than the recession of the early 1990s. However, it is less severe than the early 1980s recession, when GDP recorded cumulative falls of 6.0%.
Further big increases in unemployment are expected, but at a reduced pace. Unemployment is likely to rise from 2.43 million to a peak of just over 3 million, or 9.6% of the workforce, in mid-2010. In June we predicted unemployment would hit 3.2 million.
Public sector borrowing is forecast to total some 12.5% of GDP in 2009-10 and 2010-11. Public sector debt is set to rise to dangerous levels in the next few years, in excess of 80% of GDP.
The BCC believes that the MPC will use the full £175bn allocated to the Quantitative Easing (QE) programme. Another increase in the size of the programme, to at least £200 billion, will probably be needed to ensure that the economy does not falter.
Read more: http://www.britishchambers.org.uk/zones/policy/press-releases_1/recovery-has-started-but-economy-still-faces-huge-risks.html
www.ukba.co.uk
Friday 18 September 2009
Tax regime ‘threatening businesses’
Small and medium-sized business in the UK are worried that the country's tax regime will hinder economic recovery, according to research from accountancy firm MacIntyre Hudson.
The research revealed that 80% of small firms think that the UK's tax regime poses a greater threat to the economy than cuts in public spending and, as a result of the tax penalties on high earners, 89% believe Britain will fall victim to a ‘brain drain', as top talent leaves for more favourable opportunities elsewhere.
One in five company owners said that it is unlikely they would have chosen to start a business under the tax regime of today and 69% describe the current system as less competitive than when they first set up their own business.
"The message from business is clear. What was once a celebrated, competitive tax and regulatory regime has become increasingly burdensome, particularly for those ambitious individuals who underpin the health of our economy," said Nigel May of MacIntyre Hudson.
www.ukba.co.uk
The research revealed that 80% of small firms think that the UK's tax regime poses a greater threat to the economy than cuts in public spending and, as a result of the tax penalties on high earners, 89% believe Britain will fall victim to a ‘brain drain', as top talent leaves for more favourable opportunities elsewhere.
One in five company owners said that it is unlikely they would have chosen to start a business under the tax regime of today and 69% describe the current system as less competitive than when they first set up their own business.
"The message from business is clear. What was once a celebrated, competitive tax and regulatory regime has become increasingly burdensome, particularly for those ambitious individuals who underpin the health of our economy," said Nigel May of MacIntyre Hudson.
www.ukba.co.uk
Thursday 17 September 2009
Government ‘must do more to help small firms’
The government are not doing enough to help small and medium-sized businesses, according to the Chartered Institute of Marketing (CIM).
The CIM's latest paper says that the range of information, grants and training offered by the Government to small businesses is often not exploited, "because the language and context of how help is delivered does not resonate with the needs of SMEs."
The paper also argues that the government should act as a point of access for SMEs via Business Link but other bodies such as the Chambers of Commerce should deliver tailored business solutions.
www.ukba.co.uk
The CIM's latest paper says that the range of information, grants and training offered by the Government to small businesses is often not exploited, "because the language and context of how help is delivered does not resonate with the needs of SMEs."
The paper also argues that the government should act as a point of access for SMEs via Business Link but other bodies such as the Chambers of Commerce should deliver tailored business solutions.
www.ukba.co.uk
Wednesday 16 September 2009
SMEs rate their bank as ‘atrocious’
Over 30% of small and medium-sized business owners have rated the helpfulness of their bank in the current economic climate as ‘atrocious', according to a New Business poll.
Despite Banks offering schemes such as the Enterprise Finance Guarantee and the Working Capital Scheme many small firms feel that credit has been withdrawn and that there has been a lack of flexibility over overdraft rates.
23% of respondents rated their bank as ‘poor' or ‘average', 18% thought that their bank's performance was ‘good' and only 5% said that their bank had been ‘very good'.
www.ukba.co.uk
Despite Banks offering schemes such as the Enterprise Finance Guarantee and the Working Capital Scheme many small firms feel that credit has been withdrawn and that there has been a lack of flexibility over overdraft rates.
23% of respondents rated their bank as ‘poor' or ‘average', 18% thought that their bank's performance was ‘good' and only 5% said that their bank had been ‘very good'.
www.ukba.co.uk
Tuesday 15 September 2009
SMEs to Benefit From Big Business refit
The Carbon Trust is set to launch a new programme they claim will help thousands of UK SMEs to reduce their energy bills by a combined £40 million. Their Big Business Refit initiative provides firms with expert advice and access to interest-free loans to replace old, inefficient equipment with new, environmentally-friendly models.
Through their long-standing Energy Efficiency Loan Scheme, the Trust offers SMEs funding ranging from £3,000 to £400,000 to upgrade their equipment.The fund currently has £100 million worth of loans available, a sum expected to help up to 3,000 businesses cut a total of £40 million off their annual energy costs.
www.ukba.co.uk www.mgba.co.uk www.thecarbontrust.co.uk
Through their long-standing Energy Efficiency Loan Scheme, the Trust offers SMEs funding ranging from £3,000 to £400,000 to upgrade their equipment.The fund currently has £100 million worth of loans available, a sum expected to help up to 3,000 businesses cut a total of £40 million off their annual energy costs.
www.ukba.co.uk www.mgba.co.uk www.thecarbontrust.co.uk
Government proposes changes to maternity/ paternity
Parents will be able to split 'maternity' leave after six months, allowing the father and mother to share the time off, Gordon Brown will announce today. At the moment mothers are allowed 12 months' maternity leave, with nine months' guaranteed pay. However, under the new scheme that will come in from April next year, the mother can decide to split some of the leave with her husband after six months. They will continue to be paid for the following three months.
Telegraph: http://www.telegraph.co.uk/news/newstopics/politics/6190777/Parents-to-share-maternity-leave-after-Gordon-Brown-U-turn.html
http://www.ukba.co.uk/scotland
Telegraph: http://www.telegraph.co.uk/news/newstopics/politics/6190777/Parents-to-share-maternity-leave-after-Gordon-Brown-U-turn.html
http://www.ukba.co.uk/scotland
Credit crunch leaves M&A activity at a 40-year low
Merger and acquisition activity fell to its lowest level in 40 years as a result of the recession and a shortage of credit, official figures revealed yesterday.
The Office for National Statistics (ONS) said that expenditure on acquisitions in the UK by British companies dropped from £8.2bn in the first quarter of this year to £0.7bn between April and June – the lowest quarterly value recorded since 1992.
Read more: http://www.independent.co.uk/news/business/news/credit-crunch-leaves-ma-activity-at-a-40year-low-1780293.html
Sean O'Grady - The Independent
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The Office for National Statistics (ONS) said that expenditure on acquisitions in the UK by British companies dropped from £8.2bn in the first quarter of this year to £0.7bn between April and June – the lowest quarterly value recorded since 1992.
Read more: http://www.independent.co.uk/news/business/news/credit-crunch-leaves-ma-activity-at-a-40year-low-1780293.html
Sean O'Grady - The Independent
www.ukba.co.uk
Monday 14 September 2009
Business Link Article
Ani nteresting article concerning Business Link West imdlands apperared in today's Birmingham Post. I will make no comment expect to suggest you clink on the link provided.
http://www.birminghampost.net/birmingham-business/birmingham-business-news/other-uk-business/2009/09/14/management-turmoil-throws-business-link-s-future-into-doubt-65233-24680422/
www.ukba.co.uk
http://www.birminghampost.net/birmingham-business/birmingham-business-news/other-uk-business/2009/09/14/management-turmoil-throws-business-link-s-future-into-doubt-65233-24680422/
www.ukba.co.uk
Safety confusion for small firms
Many small businesses remain uncertain and confused about their health and safety responsibilities under the law - ignorance that is potentially costing them millions of pounds a year, a government report has said.
The report from the Risk and Regulation Advisory Council (RRAC) recommended that improving the confidence of small organisations in their health and safety practices could potentially lead to savings of between £70-140m from "unnecessary" consultancy fees.
Better confidence and understanding of health and safety law could also reduce the management costs of small businesses by some £50m a year, it said.
There were three causes to all this uncertainty, the RRAC added: too many different and conflicting messages coming from government, the media; insurers and health and safety 'experts', consultants who exaggerated health and safety risks; and small organisations' own lack of confidence in understanding and managing risks.
Read more: http://www.personneltoday.com/articles/2009/08/25/51907/safety-confusion-for-small-firms.html
www.ukba.co.uk
The report from the Risk and Regulation Advisory Council (RRAC) recommended that improving the confidence of small organisations in their health and safety practices could potentially lead to savings of between £70-140m from "unnecessary" consultancy fees.
Better confidence and understanding of health and safety law could also reduce the management costs of small businesses by some £50m a year, it said.
There were three causes to all this uncertainty, the RRAC added: too many different and conflicting messages coming from government, the media; insurers and health and safety 'experts', consultants who exaggerated health and safety risks; and small organisations' own lack of confidence in understanding and managing risks.
Read more: http://www.personneltoday.com/articles/2009/08/25/51907/safety-confusion-for-small-firms.html
www.ukba.co.uk
Sunday 13 September 2009
SMEs put themselves at risk
According to the new research by the Asset Based Finance Association (ABFA), 56 per cent of SMEs aren't aware of the amount of financial support available from the Government.
SMEs were asked if they were aware of the Enterprise Finance Guarantee Scheme, Working Capital Scheme or the Capital Enterprise Fund, which have all been developed by the Government to provide much needed financial support to the country's small businesses. A massive 56 per cent came back and said that they hadn't heard of any of the schemes.
Kate Sharp, chief executive officer from the ABFA, believes that SMEs are at risk due to a lack of understanding about the Government's financial offerings. She said: "Over the last few years, the Government has stepped up to support UK SME organisations through various schemes. Unfortunately, there is a severe lack of understanding among this group about what financial support is actually out there. If they don't know about the schemes, how can the Government help them?"
The research also highlighted that obtaining credit insurance is also an issue for SMEs. Credit insurance minimises the risk of customers defaulting on payments or them going into administration. Of those interviewed 78.8 per cent said that as much as 20 per cent of their client base had been refused credit insurance over the last six months. More worryingly, 2.6 per cent said that over 81 per cent of their clients had no credit insurance whatsoever.
This means that nearly 100,000 SMEs in Britain are putting their businesses at risk by not ensuring they are fully protected. These firms are denying themselves the opportunity to manage the risk of losing money and reducing their own credit ratings, which will impact on their ability to obtain credit from suppliers.
The time it takes for invoices to be paid is also extending, as average debtor days lengthen. Over 11 per cent of respondents report that it is taking over 70 days for them to get paid compared to just 6.6 per cent last year - that is more than double the normal trading terms.
Kate Sharp continued: "With the external pressures on SMEs growing daily, it is worrying to see the reduced availability of credit insurance putting extra pressure on these companies at a time when they are already facing many other pressures. Coupled with the fact that debtor days are extending, it is more important than ever that businesses try to protect themselves against unforeseen circumstances."
The research also suggests that unemployment may slide further with 81 per cent of SMEs questioned planning to make as much as 10 per cent of their workforce redundant over the next six months.
Over 2,000 SMEs were interviewed for the research, which was undertaken by Hilton Baird Financial Solutions, and were asked about the current state of their finances, the wider economic troubles and attitudes towards asset based finance.
Source: Asset Based Finance Association
www.ukba.co.uk
SMEs were asked if they were aware of the Enterprise Finance Guarantee Scheme, Working Capital Scheme or the Capital Enterprise Fund, which have all been developed by the Government to provide much needed financial support to the country's small businesses. A massive 56 per cent came back and said that they hadn't heard of any of the schemes.
Kate Sharp, chief executive officer from the ABFA, believes that SMEs are at risk due to a lack of understanding about the Government's financial offerings. She said: "Over the last few years, the Government has stepped up to support UK SME organisations through various schemes. Unfortunately, there is a severe lack of understanding among this group about what financial support is actually out there. If they don't know about the schemes, how can the Government help them?"
The research also highlighted that obtaining credit insurance is also an issue for SMEs. Credit insurance minimises the risk of customers defaulting on payments or them going into administration. Of those interviewed 78.8 per cent said that as much as 20 per cent of their client base had been refused credit insurance over the last six months. More worryingly, 2.6 per cent said that over 81 per cent of their clients had no credit insurance whatsoever.
This means that nearly 100,000 SMEs in Britain are putting their businesses at risk by not ensuring they are fully protected. These firms are denying themselves the opportunity to manage the risk of losing money and reducing their own credit ratings, which will impact on their ability to obtain credit from suppliers.
The time it takes for invoices to be paid is also extending, as average debtor days lengthen. Over 11 per cent of respondents report that it is taking over 70 days for them to get paid compared to just 6.6 per cent last year - that is more than double the normal trading terms.
Kate Sharp continued: "With the external pressures on SMEs growing daily, it is worrying to see the reduced availability of credit insurance putting extra pressure on these companies at a time when they are already facing many other pressures. Coupled with the fact that debtor days are extending, it is more important than ever that businesses try to protect themselves against unforeseen circumstances."
The research also suggests that unemployment may slide further with 81 per cent of SMEs questioned planning to make as much as 10 per cent of their workforce redundant over the next six months.
Over 2,000 SMEs were interviewed for the research, which was undertaken by Hilton Baird Financial Solutions, and were asked about the current state of their finances, the wider economic troubles and attitudes towards asset based finance.
Source: Asset Based Finance Association
www.ukba.co.uk
Saturday 12 September 2009
Small businesses flick the switch on £6m of wasted energy
Carbon Trust announces Big Business Refit to help SMEs slash energy bills by £40m
The Carbon Trust is to help thousands of small and medium sized businesses drive down their costs by as much as £40m through a new programme - The Big Business Refit.
The Big Business Refit will offer SMEs expert advice and financial support to slash their energy costs by scrapping old inefficient equipment and replacing it with new energy efficient models.
It follows a recession-driven surge in demand for the Carbon Trust’s interest-free business loans. In the first six months of 2009, hundreds of SMEs from bakeries to plastics factories have been given loans at zero-interest to equip their businesses with the latest energy-saving technology. As a result, they are saving an average of £14,000 each on their annual energy bills – a collective total of almost £6m a year.
Tom Delay, chief executive, the Carbon Trust, said: “Business owners are realising that for every month they ‘make do and mend’ with old inefficient equipment, they are wasting more cash on unnecessarily high energy bills.”
“With credit all but dried up elsewhere, the Big Business Refit breaks the deadlock by helping SMEs to buy the equipment that will both slash their costs and often transform their businesses.”
SMEs that want to take part in the Big Business Refit can get expert advice from the Carbon Trust by calling 01865 885879.
Read more: http://www.carbontrust.co.uk/News/presscentre/big-business-refit.htm
www.ukba.co.uk
The Carbon Trust is to help thousands of small and medium sized businesses drive down their costs by as much as £40m through a new programme - The Big Business Refit.
The Big Business Refit will offer SMEs expert advice and financial support to slash their energy costs by scrapping old inefficient equipment and replacing it with new energy efficient models.
It follows a recession-driven surge in demand for the Carbon Trust’s interest-free business loans. In the first six months of 2009, hundreds of SMEs from bakeries to plastics factories have been given loans at zero-interest to equip their businesses with the latest energy-saving technology. As a result, they are saving an average of £14,000 each on their annual energy bills – a collective total of almost £6m a year.
Tom Delay, chief executive, the Carbon Trust, said: “Business owners are realising that for every month they ‘make do and mend’ with old inefficient equipment, they are wasting more cash on unnecessarily high energy bills.”
“With credit all but dried up elsewhere, the Big Business Refit breaks the deadlock by helping SMEs to buy the equipment that will both slash their costs and often transform their businesses.”
SMEs that want to take part in the Big Business Refit can get expert advice from the Carbon Trust by calling 01865 885879.
Read more: http://www.carbontrust.co.uk/News/presscentre/big-business-refit.htm
www.ukba.co.uk
Friday 11 September 2009
TUPE ruling could lead to more successful unfair dismissal claims
More people could resign and claim compensation for unfair dismissal if their company is taken over by another firm whose offices are further away following an Employment Appeals Tribunal (EAT) ruling, an employment law expert has said.
The ruling interprets the law governing transfers of staff from one company to another in a way that makes it easier for employees to decide not to transfer to the new company and claim unfair dismissal as a result. The Transfer of Undertakings (Protection of Employment) (TUPE) Regulations govern such transfers.
Read more: http://www.out-law.com/page-10322
Source: http://www.out-law.com
www.ukba.co.uk
The ruling interprets the law governing transfers of staff from one company to another in a way that makes it easier for employees to decide not to transfer to the new company and claim unfair dismissal as a result. The Transfer of Undertakings (Protection of Employment) (TUPE) Regulations govern such transfers.
Read more: http://www.out-law.com/page-10322
Source: http://www.out-law.com
www.ukba.co.uk
Thursday 10 September 2009
Rules on Immigrant Workers Tightened
A raft of new government measures has been announced this week, which aim to ensure that resident workers have every opportunity to fill UK vacancies before they are offered to workers abroad.
The Government has accepted the recommendations made by the Migration Advisory Committee (MAC) last month to tighten up the rules controlling when skilled workers are allowed to take jobs in the UK under the Government's points system.From next year, all jobs must be advertised to British workers in Jobcentre Plus for four weeks, extended from two weeks, before companies can seek to employ individuals from outside Europe.The Government will also extend the qualifying period for all those overseas workers who want to transfer to work at the UK base of their company – from next year they will have to have worked for their firm for at least a year rather than just six months prior to the move.The minimum salary that will allow an individual to qualify as a skilled worker and be eligible to work in the UK will also rise from £17,000 to £20,000.
Sc: Workplace Law Network
www.ukba.co.uk
The Government has accepted the recommendations made by the Migration Advisory Committee (MAC) last month to tighten up the rules controlling when skilled workers are allowed to take jobs in the UK under the Government's points system.From next year, all jobs must be advertised to British workers in Jobcentre Plus for four weeks, extended from two weeks, before companies can seek to employ individuals from outside Europe.The Government will also extend the qualifying period for all those overseas workers who want to transfer to work at the UK base of their company – from next year they will have to have worked for their firm for at least a year rather than just six months prior to the move.The minimum salary that will allow an individual to qualify as a skilled worker and be eligible to work in the UK will also rise from £17,000 to £20,000.
Sc: Workplace Law Network
www.ukba.co.uk
FPB asks all UK councils and health trusts how long they take to pay suppliers
The exercise, which involves contacting more than 700 different organisations, got underway today (Friday, 28 August).
It is designed to discover how many local authorities and health trusts are paying their suppliers – which are often small businesses – in a reasonable amount of time.
It comes almost a year after the Government urged councils and the NHS to commit to paying their suppliers within 10 days in an attempt to counteract the effects of the recession.
The move also follows the recent release of data showing that, overall, central government departments are managing to settle the majority of invoices from their suppliers within 10 days. The statistics were recently released by the Department for Business, Innovation and Skills and show, for example, that the Ministry of Defence settled more than 97% of its bills within 10 days during June 2009.
However, the FPB believes its members are much more likely to work for a council or health body, rather than a Whitehall department. As a result, the FPB is hoping to discover exactly how long local authorities and NHS trusts, which number around 470 and 240 respectively, take to pay their suppliers.
The not-for-profit organisation then intends to name and shame those with poor practices, while highlighting the work of those which pay suppliers in good time.
Read more: http://www.fpb.org/news/2240/FPB_asks_all_UK_councils_and_health_trusts_how_long_they_take_to_pay_suppliers.htm
Source: Forum for Private Business
www.ukba.co.uk
It is designed to discover how many local authorities and health trusts are paying their suppliers – which are often small businesses – in a reasonable amount of time.
It comes almost a year after the Government urged councils and the NHS to commit to paying their suppliers within 10 days in an attempt to counteract the effects of the recession.
The move also follows the recent release of data showing that, overall, central government departments are managing to settle the majority of invoices from their suppliers within 10 days. The statistics were recently released by the Department for Business, Innovation and Skills and show, for example, that the Ministry of Defence settled more than 97% of its bills within 10 days during June 2009.
However, the FPB believes its members are much more likely to work for a council or health body, rather than a Whitehall department. As a result, the FPB is hoping to discover exactly how long local authorities and NHS trusts, which number around 470 and 240 respectively, take to pay their suppliers.
The not-for-profit organisation then intends to name and shame those with poor practices, while highlighting the work of those which pay suppliers in good time.
Read more: http://www.fpb.org/news/2240/FPB_asks_all_UK_councils_and_health_trusts_how_long_they_take_to_pay_suppliers.htm
Source: Forum for Private Business
www.ukba.co.uk
Wednesday 9 September 2009
UK Bosses Tip Cleantech, Technology and Media to be the Three Highest Growth Sectors by 2020
Cleantech and renewables are expected to become two of the most important sectors of the economy according to a survey of UK business leaders, commissioned by the department for Business Innovation and Skills.
The new survey questioned business leaders from across eight sectors and found that nearly half (43 per cent) of those questioned believe that cleantech will grow at the fastest pace by 2020, followed by science and technology (20 per cent) and media and entertainment (15 per cent).
The survey highlights how the current economic climate presents new opportunities for new areas of the economy to thrive.
Combined with a growing awareness to find solutions for some of society’s greatest challenges – from tackling climate change to supporting an ageing population – investing now in innovative, high-growth areas will be essential for bolstering the UK economy once recovery kicks in.
Read more: Department for Innovation and Business Skills
www.ukba.co.uk
The new survey questioned business leaders from across eight sectors and found that nearly half (43 per cent) of those questioned believe that cleantech will grow at the fastest pace by 2020, followed by science and technology (20 per cent) and media and entertainment (15 per cent).
The survey highlights how the current economic climate presents new opportunities for new areas of the economy to thrive.
Combined with a growing awareness to find solutions for some of society’s greatest challenges – from tackling climate change to supporting an ageing population – investing now in innovative, high-growth areas will be essential for bolstering the UK economy once recovery kicks in.
Read more: Department for Innovation and Business Skills
www.ukba.co.uk
Tuesday 8 September 2009
Age no barrier to entrepreneurs
Older entrepreneurs accounted for almost 30% of new business start-ups between 2001 and 2005, according to research conducted by the National Endowment for Science, Technology and the Arts (NESTA).
The report revealed that entrepreneurs aged between 50 - 65 year-old started 27% of successful start-ups between 2001 and 2005
"At a time when an ageing society is being viewed as a problem, our study shows that there is a wealth of experience driving the UK economy today," said Jonathan Kestenbaum, chief executive of NEST
www.ukba.co.uk
The report revealed that entrepreneurs aged between 50 - 65 year-old started 27% of successful start-ups between 2001 and 2005
"At a time when an ageing society is being viewed as a problem, our study shows that there is a wealth of experience driving the UK economy today," said Jonathan Kestenbaum, chief executive of NEST
www.ukba.co.uk
Monday 7 September 2009
UK recovery threatened by lack of credit, says EEF
Britain's economic recovery is still being threatened by the lack of credit on offer from banks, a leading manufacturers' organisation reports today, warning that many businesses are actually finding it harder to secure affordable finance than a few months ago.
A survey conducted by the EEF said 47 per cent of firms had seen the cost of finance increase over the past two months, from 44 per cent in the second quarter and 37 per cent in the first. Only 7 per cent of manufacturers said the cost of finance was now falling.
Manufacturers also found the cost of new borrowing was still rising, with banks charging both higher fees and more expensive interest rates.
A third of companies added that the supply of credit had shrunk in recent weeks, though this was an improvement from the second quarter when 42 per cent of businesses warned lines of credit were dwindling. However, small firms, in particular, are being hit by the credit shortage, the EEF said.
Steve Radley, the EEF's director of policy, said that despite action from policymakers, the manufacturing sector's hopes of recovery were being hampered by their credit difficulties. "Despite historically low levels of interest rates and significant intervention by the Government and the Bank of England, credit conditions remain very tight for most manufacturers," he said.
"Given the severe damage done to banks' balance sheets by the recession, this is likely to remain the case for some time and will dampen the recovery as meeting new orders puts increasing pressure on manufacturers' cashflow."
The EEF's warning reflects increasing concern that the inability of banks to lend more to business might prevent the UK from exiting recession or, at the very least, act as a cap on the strength of the recovery.
Source: David Prosser, Business Editor, The Independent
www.ukba.co.uk
A survey conducted by the EEF said 47 per cent of firms had seen the cost of finance increase over the past two months, from 44 per cent in the second quarter and 37 per cent in the first. Only 7 per cent of manufacturers said the cost of finance was now falling.
Manufacturers also found the cost of new borrowing was still rising, with banks charging both higher fees and more expensive interest rates.
A third of companies added that the supply of credit had shrunk in recent weeks, though this was an improvement from the second quarter when 42 per cent of businesses warned lines of credit were dwindling. However, small firms, in particular, are being hit by the credit shortage, the EEF said.
Steve Radley, the EEF's director of policy, said that despite action from policymakers, the manufacturing sector's hopes of recovery were being hampered by their credit difficulties. "Despite historically low levels of interest rates and significant intervention by the Government and the Bank of England, credit conditions remain very tight for most manufacturers," he said.
"Given the severe damage done to banks' balance sheets by the recession, this is likely to remain the case for some time and will dampen the recovery as meeting new orders puts increasing pressure on manufacturers' cashflow."
The EEF's warning reflects increasing concern that the inability of banks to lend more to business might prevent the UK from exiting recession or, at the very least, act as a cap on the strength of the recovery.
Source: David Prosser, Business Editor, The Independent
www.ukba.co.uk
Sunday 6 September 2009
The “World’s 50 Safest Banks” 2009
With bank stability still high on corporate and investor agendas,Global Finance publishes its 18th annual list of the world’s safest banks. After two tumultuous years that saw many of the world’s most respected banks drop out of the top-50 safest banks list, the dust appears to be settling.
Those banks that kept an iron grip on their risk exposure before the financial crisis blew up have consistently topped the table and maintain their standing among the top echelon in this year’s ranking. At the same time, the big name banks that lost their safest bank ranking during the credit crunch are still absent from the list as they struggle to rebuild their credit standing.
The “World’s 50 Safest Banks” 2009 were selected through a comparison of the long-term credit ratings and total assets of the 500 largest banks around the world. Ratings from Moody’s, Standard & Poor’s and Fitch were used.
Read more: http://www.gfmag.com/tools/bank-rankings/2341-worlds-50-safest-banks-2009.html
www.ukba.co.uk
Those banks that kept an iron grip on their risk exposure before the financial crisis blew up have consistently topped the table and maintain their standing among the top echelon in this year’s ranking. At the same time, the big name banks that lost their safest bank ranking during the credit crunch are still absent from the list as they struggle to rebuild their credit standing.
The “World’s 50 Safest Banks” 2009 were selected through a comparison of the long-term credit ratings and total assets of the 500 largest banks around the world. Ratings from Moody’s, Standard & Poor’s and Fitch were used.
Read more: http://www.gfmag.com/tools/bank-rankings/2341-worlds-50-safest-banks-2009.html
www.ukba.co.uk
Saturday 5 September 2009
Employment Law Organiser is a new tool from the Department for Business, Innovation and Skills (BIS)
It provides free access to key information, advice and tools to help business owners meet their employment obligations.
The free desktop tool is being launched nationwide in September and is available now for users of BusinessZone.co.uk and UK Business Forums. If you haven’t already downloaded it, you can do so here.
Source: BusinessZone.co.uk and UK Business Forums
www.ukba.co.uk
The free desktop tool is being launched nationwide in September and is available now for users of BusinessZone.co.uk and UK Business Forums. If you haven’t already downloaded it, you can do so here.
Source: BusinessZone.co.uk and UK Business Forums
www.ukba.co.uk
Friday 4 September 2009
Registering your trade mark
A trade mark protects any sign or symbol that allows your customers to tell you apart from your competitors. With the streamlined process to make registering new ones quicker and easier from the Intellectual Property Office (IPO), find out what you need to know about your trade marks and how you can protect them.
Read more: http://businessmatters.hsbc.co.uk/go.asp?/.website.bmcontainer/bHKC001/&page=bm200909.4
Source: Business Matters, HSBC
www.ukba.co.uk
Read more: http://businessmatters.hsbc.co.uk/go.asp?/.website.bmcontainer/bHKC001/&page=bm200909.4
Source: Business Matters, HSBC
www.ukba.co.uk
Thursday 3 September 2009
£100m tax hike threat to 100,000 small firms Read more: http://www.dailymail.co.uk/news/article-1208021/100m-tax-hike-threat-100-000-small-firms.html#
Tax rises of £100million are threatening to drive tens of thousands of small firms out of business, the Tories warn.
Ministers have admitted that 100,000 of the smallest companies are likely to be taxed an average of £1,000 extra each over the next three years.
The Government's own estimates suggest that one in 20 firms will go out of business while trying to pay.
Read more: http://www.dailymail.co.uk/news/article-1208021/100m-tax-hike-threat-100-000-small-firms.html
Source: Daily Mail
www.ukba.co.uk
Ministers have admitted that 100,000 of the smallest companies are likely to be taxed an average of £1,000 extra each over the next three years.
The Government's own estimates suggest that one in 20 firms will go out of business while trying to pay.
Read more: http://www.dailymail.co.uk/news/article-1208021/100m-tax-hike-threat-100-000-small-firms.html
Source: Daily Mail
www.ukba.co.uk
Wednesday 2 September 2009
Firms worried about talent exodus
Small business bosses are worried that they will lose important staff when the economy emerges from the recession, according to a survey by business advisory firm Deloitte.
The survey revealed that 65% of businesses are extremely worried about losing valued staff once the jobs market recovers and big firms start recruiting again.
Businesses are advised to make sure that they engage with their staff to ensure that they will not have a dearth of talent when the recession ends.
"As with previous recessions any upturn in the economy will unleash pent up demand by employees acting on their desire to move on. Companies really need to be thinking about this and seek to attract and engage those already within the organisation," said Eddie Barrett of Deloitte.
www.ukba.co.uk
The survey revealed that 65% of businesses are extremely worried about losing valued staff once the jobs market recovers and big firms start recruiting again.
Businesses are advised to make sure that they engage with their staff to ensure that they will not have a dearth of talent when the recession ends.
"As with previous recessions any upturn in the economy will unleash pent up demand by employees acting on their desire to move on. Companies really need to be thinking about this and seek to attract and engage those already within the organisation," said Eddie Barrett of Deloitte.
www.ukba.co.uk
Tuesday 1 September 2009
UK businesses confident over future
Over 70% of businesses describe their attitude towards the UK economy as either hopeful or excited, according to new research from Barclays Bank.
The Connecting Business survey found that 57% of respondents characterised their outlook towards the economy as ‘hopeful' and 17% described their attitude as ‘excited.'
15% of respondents believe that their firm will move back into sustained growth in the next six months, with 28% thinking this will occur in six to twelve months.
"Confidence is key to recovery and the results of this survey demonstrate a real and growing confidence in UK businesses," said Ian Stuart, Managing Director of Barclays Commercial Bank.
"The past 18 months have provided an extremely testing environment for many organisations; however, after evolving to meet the challenges of this new commercial landscape we are now seeing the beginnings of a renewed drive for growth."
www.ukba.co.uk
The Connecting Business survey found that 57% of respondents characterised their outlook towards the economy as ‘hopeful' and 17% described their attitude as ‘excited.'
15% of respondents believe that their firm will move back into sustained growth in the next six months, with 28% thinking this will occur in six to twelve months.
"Confidence is key to recovery and the results of this survey demonstrate a real and growing confidence in UK businesses," said Ian Stuart, Managing Director of Barclays Commercial Bank.
"The past 18 months have provided an extremely testing environment for many organisations; however, after evolving to meet the challenges of this new commercial landscape we are now seeing the beginnings of a renewed drive for growth."
www.ukba.co.uk
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