Monday 31 August 2009
Energy firms squeeze SMEs for payment
Britain's big energy companies are forcing up to 250,000 small businesses to pay for their energy up to six months in advance.
In the current economic climate with cash flow tight for many small firms there are concerns that this new stance from energy companies could force some SMEs out of business.
Alistair Buchanan, chief executive of Ofgem, the energy regulator, called the companies to a meeting in London last week to express mounting concern about the practice.
"The energy companies have started using very aggressive tactics.... But asking for money upfront puts businesses in an even more precarious position," said Stephen Alambritis of the Federation of Small Businesses.
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In the current economic climate with cash flow tight for many small firms there are concerns that this new stance from energy companies could force some SMEs out of business.
Alistair Buchanan, chief executive of Ofgem, the energy regulator, called the companies to a meeting in London last week to express mounting concern about the practice.
"The energy companies have started using very aggressive tactics.... But asking for money upfront puts businesses in an even more precarious position," said Stephen Alambritis of the Federation of Small Businesses.
www.ukba.co.uk
Sunday 30 August 2009
New trade mark services from the Intellectual Property Office make it cheaper and faster to kick start small businesses
From October this year, businesses will be able to register trade marks more cheaply and easily thanks to a number of new proposals announced today by the Intellectual Property Office.
In publishing its response to the ‘Helping businesses register trade marks and patents’ consultation paper, the Intellectual Property Office will implement of a number of services aimed at strengthening business competitiveness throughout the UK.
David Lammy, Minister of State for Intellectual Property, said:
"We are committed to supporting businesses in these difficult economic times, and our Right Start and E-filing initiatives make it easier and cheaper for trade mark owners, and in particular small businesses, to register and protect their brands.
"Registering a trade mark is an important step for a business to take. By protecting their intellectual property they are protecting their innovative ideas of the future.
Failing to do this risks them losing their investment in developing successful brands for their products and services."
Proposals to be introduced include:
- A ‘Right Start’ service for trade marks. A business using the new 'Right Start' service will be able to defer payment of half the usual £200 trade mark application fee until after it has seen the Intellectual Property Office's assessment of whether the mark can be registered. If there any problems, the business will have an opportunity to informally discuss them with the trade mark examiner before deciding whether to proceed with the application and pay the balance of the fees.
- An E-filing initiative. This will offer a £30 reduction in application fees for e-filed trade marks where the full discounted fee is paid at the time of filing and a £10 reduction in the application fee for e-filed patent applications. It also offers reduced fees for e-filed patent search and examination requests.
Source: Intellectual Property Office
www.ukba.co.uk
In publishing its response to the ‘Helping businesses register trade marks and patents’ consultation paper, the Intellectual Property Office will implement of a number of services aimed at strengthening business competitiveness throughout the UK.
David Lammy, Minister of State for Intellectual Property, said:
"We are committed to supporting businesses in these difficult economic times, and our Right Start and E-filing initiatives make it easier and cheaper for trade mark owners, and in particular small businesses, to register and protect their brands.
"Registering a trade mark is an important step for a business to take. By protecting their intellectual property they are protecting their innovative ideas of the future.
Failing to do this risks them losing their investment in developing successful brands for their products and services."
Proposals to be introduced include:
- A ‘Right Start’ service for trade marks. A business using the new 'Right Start' service will be able to defer payment of half the usual £200 trade mark application fee until after it has seen the Intellectual Property Office's assessment of whether the mark can be registered. If there any problems, the business will have an opportunity to informally discuss them with the trade mark examiner before deciding whether to proceed with the application and pay the balance of the fees.
- An E-filing initiative. This will offer a £30 reduction in application fees for e-filed trade marks where the full discounted fee is paid at the time of filing and a £10 reduction in the application fee for e-filed patent applications. It also offers reduced fees for e-filed patent search and examination requests.
Source: Intellectual Property Office
www.ukba.co.uk
Saturday 29 August 2009
FSB warns against high street banks holding small business monopoly
The Federation of Small Businesses (FSB) is challenging a potential monopoly of power being built up by high street banks over small firms seeking finance, two years after the credit crunch started.
The FSB is warning that bank mergers, recapitalisation and schemes targeted at the big banks to stimulate lending as a result of the banking crisis risk stifling choices of finance for small firms - leaving business owners with nowhere to turn if they are refused credit by the major high street lenders.
With a quarter of small firms still struggling to access affordable finance, the FSB believes the power of the financial sector should be challenged to guarantee a fair service for small firms. The FSB proposes:
- Struggling banks should not be sold off to other high street lenders as this would create massive institutions which could stifle competition in the financial sector;
- Alternative sources of finance should be provided locally. Regional Development Agencies should be restructured to offer loans and Essex County Council's Bank of Essex model should be replicated around the UK. The Enterprise Finance Guarantee and funds already allocated from the European Investment Bank could also be offered via these routes.
- The Post Office should be turned into Post Bank offering support for small firms by utilising the Post Office Network and operating either as a solely state owned bank or as mutual or trustee bank.
- Financial Intermediaries, recently created by the Government, should be actively promoted to viable small businesses unable to access finance.
Read more: http://www.fsb.org.uk/News.aspx?loc=general&rec=5496
Source: Federation of Small Businesses
www.ukba.co.uk
The FSB is warning that bank mergers, recapitalisation and schemes targeted at the big banks to stimulate lending as a result of the banking crisis risk stifling choices of finance for small firms - leaving business owners with nowhere to turn if they are refused credit by the major high street lenders.
With a quarter of small firms still struggling to access affordable finance, the FSB believes the power of the financial sector should be challenged to guarantee a fair service for small firms. The FSB proposes:
- Struggling banks should not be sold off to other high street lenders as this would create massive institutions which could stifle competition in the financial sector;
- Alternative sources of finance should be provided locally. Regional Development Agencies should be restructured to offer loans and Essex County Council's Bank of Essex model should be replicated around the UK. The Enterprise Finance Guarantee and funds already allocated from the European Investment Bank could also be offered via these routes.
- The Post Office should be turned into Post Bank offering support for small firms by utilising the Post Office Network and operating either as a solely state owned bank or as mutual or trustee bank.
- Financial Intermediaries, recently created by the Government, should be actively promoted to viable small businesses unable to access finance.
Read more: http://www.fsb.org.uk/News.aspx?loc=general&rec=5496
Source: Federation of Small Businesses
www.ukba.co.uk
Friday 28 August 2009
New survey of over 1,300 UK bosses shows that nearly 50% have pay frozen or are on a pay holiday
New data from an IoD Policy Voice survey of over 1,300 UK bosses shows that nearly 50% of those surveyed have had their pay frozen or are on a ‘pay holiday’. 40% of bosses had also reduced their bonuses.
These new figures are in sharp contrast with what is going on in the public sector, where the latest data from the ONS, shows that average earnings, including bonuses, increased by 4.0% in June, compared with the previous year.
Commenting on the survey findings, IoD Director General, Miles Templeman said:
“There is a growing divide between the private and public sectors, with the public sector so far immune from the effects of the recession. Most IoD members run small and medium sized businesses on moderate pay packages, while almost half have no occupational or employer-sponsored pension at all.
“With government borrowing reaching sky-high levels, there has to be a sense of proportion and reality amongst government employees. This recession has had a big effect on businesses, the public sector cannot remain immune, and the need to bring down the deficit means that a pay freeze across government should come into effect.”
Source: Institute of Directors
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These new figures are in sharp contrast with what is going on in the public sector, where the latest data from the ONS, shows that average earnings, including bonuses, increased by 4.0% in June, compared with the previous year.
Commenting on the survey findings, IoD Director General, Miles Templeman said:
“There is a growing divide between the private and public sectors, with the public sector so far immune from the effects of the recession. Most IoD members run small and medium sized businesses on moderate pay packages, while almost half have no occupational or employer-sponsored pension at all.
“With government borrowing reaching sky-high levels, there has to be a sense of proportion and reality amongst government employees. This recession has had a big effect on businesses, the public sector cannot remain immune, and the need to bring down the deficit means that a pay freeze across government should come into effect.”
Source: Institute of Directors
www.ukba.co.uk
Thursday 27 August 2009
Sugar apprentice site 'a gimmick'
A website for apprenticeships in England backed by Lord Sugar has filled 1,185 vacancies out of the 18,000 advertised, figures show.
The Conservatives have branded it a "failure" and an "expensive gimmick".
Lord Sugar, the face of BBC's The Apprentice and now government enterprise tsar, said businesses should get behind the scheme.
The government said the apprentice system was working, and successful completion rates were rising.
In June, a parliamentary answer given by the Skills Minister Kevin Brennan said 616 apprenticeship vacancies had been filled out of 17,588 advertised.
But the National Apprenticeship Service said building up the numbers of vacancies and applications was "taking time".
The number of apprenticeships accepted has risen rapidly since that date as students reach the end of their courses, it said.
Read more: http://news.bbc.co.uk/1/hi/education/8193681.stm
www.ukba.co.uk
The Conservatives have branded it a "failure" and an "expensive gimmick".
Lord Sugar, the face of BBC's The Apprentice and now government enterprise tsar, said businesses should get behind the scheme.
The government said the apprentice system was working, and successful completion rates were rising.
In June, a parliamentary answer given by the Skills Minister Kevin Brennan said 616 apprenticeship vacancies had been filled out of 17,588 advertised.
But the National Apprenticeship Service said building up the numbers of vacancies and applications was "taking time".
The number of apprenticeships accepted has risen rapidly since that date as students reach the end of their courses, it said.
Read more: http://news.bbc.co.uk/1/hi/education/8193681.stm
www.ukba.co.uk
Wednesday 26 August 2009
Average pay increase expectations drop below the rate of inflation
The latest quarterly CIPD/KPMG Labour Market Outlook survey shows that just 15% of respondents plan to conduct a pay review this quarter. Dr John Philpott, CIPD's Chief Economist, has warned that pay restraint can't be sustained indefinitely and a weak economic recovery could trigger a second wave of redundancies
www.ukba.co.uk/scotland
www.ukba.co.uk/scotland
More than a third of small and medium sized businesses plan to increase their investment in marketing over the next twelve months
Yougov data shows 31% of small and medium business leaders “agreed” when asked if they would be investing more in marketing, while 7% “strongly agreed”.
However, more than half said they would not be increasing their investment.
Despite low interest rates reducing costs for small and medium-sized businesses, falling demand has forced many to reduce prices, lowering margins and putting pressure on marketing budgets.
However, Beth de Avila, brand manager at Hewlett-Packard UK, which commissioned the research says the results show that a significant number of small and medium-sized businesses are not “panicking” in their attitudes to marketing.
“Previous recessions have shown that those businesses that market themselves well during fallow periods are significantly better positioned when the good times return,” she says.
YouGov polled 943 micro, small and medium-sized business owners between 10-12 June.
Source: http://www.marketingweek.co.uk
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However, more than half said they would not be increasing their investment.
Despite low interest rates reducing costs for small and medium-sized businesses, falling demand has forced many to reduce prices, lowering margins and putting pressure on marketing budgets.
However, Beth de Avila, brand manager at Hewlett-Packard UK, which commissioned the research says the results show that a significant number of small and medium-sized businesses are not “panicking” in their attitudes to marketing.
“Previous recessions have shown that those businesses that market themselves well during fallow periods are significantly better positioned when the good times return,” she says.
YouGov polled 943 micro, small and medium-sized business owners between 10-12 June.
Source: http://www.marketingweek.co.uk
www.ukba.co.uk
Tuesday 25 August 2009
SMEs ‘scared to make redundancies’
Despite the recent rise in the unemployment rate research has suggested that small business owners are afraid of making redundancies for fear of being sued for unfair dismissal.
According to research conducted by business insurers Premierline Direct small firms fear the potential financial consequences of redundancies, with limits on awards for unfair dismissal and redundancy payments increasing earlier this year.
Of those small business owners concerned about being sued by workers over 70% said that their firm did not have necessary funds to pay out compensation and 36% said would be worried they hadn't followed the correct procedures.
37% of small businesses that have had to let staff go did not seek legal or HR advice beforehand, leaving themselves open to potential legal action.
"Redundancies have increased considerably in line with the economy's performance and many business owners are facing the prospect of having to make staff redundant; something which they might not have experienced before," said Chris Little, managing director of Premierline Direct.
www.ukba.co.uk
According to research conducted by business insurers Premierline Direct small firms fear the potential financial consequences of redundancies, with limits on awards for unfair dismissal and redundancy payments increasing earlier this year.
Of those small business owners concerned about being sued by workers over 70% said that their firm did not have necessary funds to pay out compensation and 36% said would be worried they hadn't followed the correct procedures.
37% of small businesses that have had to let staff go did not seek legal or HR advice beforehand, leaving themselves open to potential legal action.
"Redundancies have increased considerably in line with the economy's performance and many business owners are facing the prospect of having to make staff redundant; something which they might not have experienced before," said Chris Little, managing director of Premierline Direct.
www.ukba.co.uk
Monday 24 August 2009
Inflation rate remains at 1.8%
The Consumer Prices Index (CPI) - a key measure of inflation - has stayed at 1.8% in July, according to the Office for National Statistics (ONS).
The CPI, the measure of the average price of consumer goods and services purchased by households, had been expected by economists to decline to 1.5%.
The Retail Prices Index (RPI) inflation measure, which includes mortgage interest payments, also unexpectedly rose to -1.4% in July from the previous month's -1.6%.
Although these figures are positive news for the economy, many economists are still predicting that inflation will continue to drop.
"We expect that this halt in the downward trend in inflation will prove to be only temporary,' said Vicky Redwood, an economist at Capital Economics.
www.ukba.co.uk
The CPI, the measure of the average price of consumer goods and services purchased by households, had been expected by economists to decline to 1.5%.
The Retail Prices Index (RPI) inflation measure, which includes mortgage interest payments, also unexpectedly rose to -1.4% in July from the previous month's -1.6%.
Although these figures are positive news for the economy, many economists are still predicting that inflation will continue to drop.
"We expect that this halt in the downward trend in inflation will prove to be only temporary,' said Vicky Redwood, an economist at Capital Economics.
www.ukba.co.uk
Sunday 23 August 2009
Top Ten Reasons for using an Interim Manager
Russam GMS Ltd undertook their latest Interim Management Survey with the help of over 1100 interim managers who are registered both with Russam GMS and with other providers. The results represent the latest assignment work that these Interim Managers had undertaken.
A full list of the Top Ten reasons for using Interim Managers is set out below and its findings have already set in train a number of management re-thinks about the best way of tackling some current business issues.
1/ Supplying specialist skills and expertise – 21%
2/ Implementation of a new strategy – 17%
3/ Special projects – 15%
4/ Business restructuring – 14%
5/ Mentoring and/or coaching – 12%
6/ Business turnaround – 7%
7/ During recruitment – 4%
8/ Merger & Acquisition – 4%
9/ Setting up a new division – 3%
10/ Covering a temporary absence – 2%
Read more: http://www.russam-gms.co.uk/market_research.html
www.ukba.co.uk
A full list of the Top Ten reasons for using Interim Managers is set out below and its findings have already set in train a number of management re-thinks about the best way of tackling some current business issues.
1/ Supplying specialist skills and expertise – 21%
2/ Implementation of a new strategy – 17%
3/ Special projects – 15%
4/ Business restructuring – 14%
5/ Mentoring and/or coaching – 12%
6/ Business turnaround – 7%
7/ During recruitment – 4%
8/ Merger & Acquisition – 4%
9/ Setting up a new division – 3%
10/ Covering a temporary absence – 2%
Read more: http://www.russam-gms.co.uk/market_research.html
www.ukba.co.uk
Saturday 22 August 2009
Is your business "tweeting" on Twitter?
Every day, millions of people use Twitter to create, discover and share ideas with others. Now, people are turning to Twitter as an effective way to reach out to businesses, too. From local stores to big brands, and from brick-and-mortar to internet-based or service sector, people are finding great value in the connections they make with businesses on Twitter.
Find out more here through a special business guide: http://business.twitter.com/twitter101/
Follow me on Twitter - http://www.twitter.com/paulgreen
www.ukba.co.uk
Find out more here through a special business guide: http://business.twitter.com/twitter101/
Follow me on Twitter - http://www.twitter.com/paulgreen
www.ukba.co.uk
Friday 21 August 2009
Businesses given free access to thousands of new opportunities
Every small business in the UK will now have access to thousands of lower value government contracts on the Government’s website www.supply2.gov.uk.
For three years, supply2.gov.uk has advertised thousands of public sector procurement opportunities worth up to £100,000 – making the website ideally suited to small and medium sized businesses.
The fee that was previously charged to search the site across the UK will now be removed, providing firms with better access to public sector contracts to help their businesses grow.
Business Minister Shriti Vadera said:
“Small businesses are facing significant pressure in this downturn and new contracts are essential for their return to growth.
“We want to support small businesses by making it easier to access the thousands of Government procurement opportunities that are directly relevant to them.
“This free service is an interim step along the way to introducing a single website for all public sector contracts next year.”
Economic Secretary to the Treasury, Ian Pearson said:
“Small and medium businesses are a crucial part of the UK economy and in these challenging times it is essential that we support them in as many ways as possible.
“By introducing a free to use national search service we are helping to create a level playing field on which SMEs can compete with their larger counterparts. This will realise benefits for SMEs, the economy as a whole, and help drive further innovation in public services.”
Debasish Sen, Federation of Small Businesses Trade and Industry committee member, said:
“The Federation of Small Businesses (FSB) has been working closely with the Government to put better policies on procurement in place and we welcome this first step to create a free, national, on-line portal that small firms can use to apply for public sector contracts next year.
“FSB research shows that half of SMEs do not tender for public contracts because the process is too complicated and the contracts are too difficult to find in the first place. Making supply2.gov.uk free to access is a first step in the right direction and something the FSB has been pushing for, for a long time.”
Searching for these contracts across the UK was previously only available as part of a subscription service, which cost up to £180 per year.
This announcement is a move towards delivering on a key recommendation outlined in the Glover Review - that by the end of 2010 all public sector contracts should be accessible through a single, free online web portal.
Find out more: http://www.bis.gov.uk/businesses-given-free-access-to-thousands-of-new-opportunities
www.ukba.co.uk
For three years, supply2.gov.uk has advertised thousands of public sector procurement opportunities worth up to £100,000 – making the website ideally suited to small and medium sized businesses.
The fee that was previously charged to search the site across the UK will now be removed, providing firms with better access to public sector contracts to help their businesses grow.
Business Minister Shriti Vadera said:
“Small businesses are facing significant pressure in this downturn and new contracts are essential for their return to growth.
“We want to support small businesses by making it easier to access the thousands of Government procurement opportunities that are directly relevant to them.
“This free service is an interim step along the way to introducing a single website for all public sector contracts next year.”
Economic Secretary to the Treasury, Ian Pearson said:
“Small and medium businesses are a crucial part of the UK economy and in these challenging times it is essential that we support them in as many ways as possible.
“By introducing a free to use national search service we are helping to create a level playing field on which SMEs can compete with their larger counterparts. This will realise benefits for SMEs, the economy as a whole, and help drive further innovation in public services.”
Debasish Sen, Federation of Small Businesses Trade and Industry committee member, said:
“The Federation of Small Businesses (FSB) has been working closely with the Government to put better policies on procurement in place and we welcome this first step to create a free, national, on-line portal that small firms can use to apply for public sector contracts next year.
“FSB research shows that half of SMEs do not tender for public contracts because the process is too complicated and the contracts are too difficult to find in the first place. Making supply2.gov.uk free to access is a first step in the right direction and something the FSB has been pushing for, for a long time.”
Searching for these contracts across the UK was previously only available as part of a subscription service, which cost up to £180 per year.
This announcement is a move towards delivering on a key recommendation outlined in the Glover Review - that by the end of 2010 all public sector contracts should be accessible through a single, free online web portal.
Find out more: http://www.bis.gov.uk/businesses-given-free-access-to-thousands-of-new-opportunities
www.ukba.co.uk
Thursday 20 August 2009
UK job losses declining
The rate of decline in the UK job market is slowing, according to research conduced by the Chartered Institute of Personnel and Development (CIPD).
In the second quarter of this year the balance of firms cutting jobs over those recruiting in the private sector shrunk from the previous three months' figure of -30% to -2%. This means that recruitment has almost caught up with job losses in the UK private sector.
"When it comes to the immediate jobs outlook, the best that can be said is that things are getting worse more slowly," said Mr Philpott, chief economist at the CIPD.
www.ukba.co.uk
In the second quarter of this year the balance of firms cutting jobs over those recruiting in the private sector shrunk from the previous three months' figure of -30% to -2%. This means that recruitment has almost caught up with job losses in the UK private sector.
"When it comes to the immediate jobs outlook, the best that can be said is that things are getting worse more slowly," said Mr Philpott, chief economist at the CIPD.
www.ukba.co.uk
Wednesday 19 August 2009
Email and web security - a free guide
Worried about spam, viruses, data doss and use policy? Not sure where to begin?
MessageLabs has produced produced the Small Business Guide to Web and Email Security to help you keep your business one step ahead. The IT threat landscape is evolving - organised crime is involved and it’s big business. This non-technical guide for owners and mangers of small to medium sized businesses looking at the issues surrounding email and web security.
Get your free guide here: http://www.growthbusiness.co.uk/sponsored-surveys/1059012/email-and-web-security-a-free-guide.thtml
www.ukba.co.uk
MessageLabs has produced produced the Small Business Guide to Web and Email Security to help you keep your business one step ahead. The IT threat landscape is evolving - organised crime is involved and it’s big business. This non-technical guide for owners and mangers of small to medium sized businesses looking at the issues surrounding email and web security.
Get your free guide here: http://www.growthbusiness.co.uk/sponsored-surveys/1059012/email-and-web-security-a-free-guide.thtml
www.ukba.co.uk
Tuesday 18 August 2009
Small businesses find credit scarce and dear
Businesses are finally finding it easier to get credit, though they are having to pay more for it, the Confederation of British Industry has said.
The business group's quarterly report on access to finance shows that while 10 per cent of firms said the availability of credit had worsened over the three months to the end of July, 27 per cent said it had improved.
The positive balance is the first time this year businesses have reported credit availability easing and will be welcomed by economists and policymakers who believe borrowing restrictions continue to be the chief obstacle to recovery.
Nevertheless, the availability of credit remains patchy, with only larger companies reporting that they were finding it easier to borrow. Small and medium sized enterprises reported a continued decline in credit supply.
Moreover, even those firms that are getting access to credit report that it is costing them more to borrow.
Trade credit insurance, which covers businesses' suppliers against non-payment for their goods, also continues to be difficult for many companies to obtain. Some 57 per cent of businesses said that the availability of this cover had worsened over the past three months, with premiums rising and increasing delays in renewals.
Richard Lambert, director-general of the CBI, pictured below, said: "Smaller and medium sized businesses are still facing challenging credit conditions and have fewer funding options open to them than big companies. We hope that over time their credit supply will improve."
Most of the banks that reported trading figures last week conceded that lending to business had declined during the first half of the year, despite huge political pressure.
Source: The Independent
www.ukba.co.uk
The business group's quarterly report on access to finance shows that while 10 per cent of firms said the availability of credit had worsened over the three months to the end of July, 27 per cent said it had improved.
The positive balance is the first time this year businesses have reported credit availability easing and will be welcomed by economists and policymakers who believe borrowing restrictions continue to be the chief obstacle to recovery.
Nevertheless, the availability of credit remains patchy, with only larger companies reporting that they were finding it easier to borrow. Small and medium sized enterprises reported a continued decline in credit supply.
Moreover, even those firms that are getting access to credit report that it is costing them more to borrow.
Trade credit insurance, which covers businesses' suppliers against non-payment for their goods, also continues to be difficult for many companies to obtain. Some 57 per cent of businesses said that the availability of this cover had worsened over the past three months, with premiums rising and increasing delays in renewals.
Richard Lambert, director-general of the CBI, pictured below, said: "Smaller and medium sized businesses are still facing challenging credit conditions and have fewer funding options open to them than big companies. We hope that over time their credit supply will improve."
Most of the banks that reported trading figures last week conceded that lending to business had declined during the first half of the year, despite huge political pressure.
Source: The Independent
www.ukba.co.uk
Monday 17 August 2009
Tax timebomb could force more small businesses under
A leading insolvency expert has urged small businesses affected by the recession not to "bury their heads in the sand" as another wave of business collapses could be on the horizon, triggered by the inability to settle tax liabilities.
Mace & Jones insolvency unit partner Graeme Jump said while many exposed companies have already succumbed to the pressures of the recession, a new round is inevitable after the summer break. Official figures show that North West insolvencies dropped to 35 in June, compared to an average of 48 per month since the start of the year. The first six months of the year saw 10,242 companies enter into insolvency – up 33.8 per cent on the same period in 2008.
“There has been a slight drop in insolvencies but this masks deep problems,” he said. “A number of vulnerable businesses have been slashing costs by redundancies, operational cuts, and grabbing the Government’s offer of delaying payments for such taxes as PAYE, VAT, and Corporation Tax. That six months tax-holiday already amounts to billions in delayed payments, and will soon expire, leaving many businesses exposed to urgent demands from the taxman.”
Seek insolvency advice as soon as possible
www.ukba.co.uk
Mace & Jones insolvency unit partner Graeme Jump said while many exposed companies have already succumbed to the pressures of the recession, a new round is inevitable after the summer break. Official figures show that North West insolvencies dropped to 35 in June, compared to an average of 48 per month since the start of the year. The first six months of the year saw 10,242 companies enter into insolvency – up 33.8 per cent on the same period in 2008.
“There has been a slight drop in insolvencies but this masks deep problems,” he said. “A number of vulnerable businesses have been slashing costs by redundancies, operational cuts, and grabbing the Government’s offer of delaying payments for such taxes as PAYE, VAT, and Corporation Tax. That six months tax-holiday already amounts to billions in delayed payments, and will soon expire, leaving many businesses exposed to urgent demands from the taxman.”
Seek insolvency advice as soon as possible
www.ukba.co.uk
Sunday 16 August 2009
Treasury wants banks to increase loans to small businesses
In an attempt to persuade UK banks to lend more money to small businesses, the CEOs of major UK banks were summoned to a meeting with Alistair Darling and Treasury officials.
It's clear the Government is distinctly unhappy with the way banks are acting at present. It feels the banks have reneged on an agreement, reached as part of their rescue deal, that they would continue to lend to small businesses at a certain level.
"Money and insurance provided by the Government should ensure banks lend at the level they agreed to", said a Government spokesperson.
But when the Government agreed to save RBS and Lloyds Banking Group with an injection of £37 billion of taxpayers' money and insurance guarantees of some £600 billion, it seems they failed to stipulate the level of interest the banks charge for loans to small businesses.
So despite the Bank of England base rate being at a record low of just 0.5%, and LIBOR under 1.0%, when banks do agree to lend to small businesses they are typically charging interest rates of between 6% and 8%.
Some banks are also accused of turning small businesses away from loans under the Enterprise Finance Guarantee scheme, forcing them into other, more expensive loans that are more profitable for the banks.
After meeting the bank bosses Alistair Darling told reporters, "While in some areas there have been improvements, in others there is an awful lot more to do. I think in relation to small and medium-sized enterprises, we need to be satisfied that the lending agreements entered into are honoured and that every single business gets a fair deal,"
In response to the meeting, Shadow Chief Secretary to the Treasury, Philip Hammond has called on the Government to “stop talking and start acting” in order to get banks lending to businesses again.
“After all the fuss and fanfare around today’s meeting, the outcome will not make one jot of difference to struggling businesses up and down the country”, he added.
www.ukba.co.uk
It's clear the Government is distinctly unhappy with the way banks are acting at present. It feels the banks have reneged on an agreement, reached as part of their rescue deal, that they would continue to lend to small businesses at a certain level.
"Money and insurance provided by the Government should ensure banks lend at the level they agreed to", said a Government spokesperson.
But when the Government agreed to save RBS and Lloyds Banking Group with an injection of £37 billion of taxpayers' money and insurance guarantees of some £600 billion, it seems they failed to stipulate the level of interest the banks charge for loans to small businesses.
So despite the Bank of England base rate being at a record low of just 0.5%, and LIBOR under 1.0%, when banks do agree to lend to small businesses they are typically charging interest rates of between 6% and 8%.
Some banks are also accused of turning small businesses away from loans under the Enterprise Finance Guarantee scheme, forcing them into other, more expensive loans that are more profitable for the banks.
After meeting the bank bosses Alistair Darling told reporters, "While in some areas there have been improvements, in others there is an awful lot more to do. I think in relation to small and medium-sized enterprises, we need to be satisfied that the lending agreements entered into are honoured and that every single business gets a fair deal,"
In response to the meeting, Shadow Chief Secretary to the Treasury, Philip Hammond has called on the Government to “stop talking and start acting” in order to get banks lending to businesses again.
“After all the fuss and fanfare around today’s meeting, the outcome will not make one jot of difference to struggling businesses up and down the country”, he added.
www.ukba.co.uk
Saturday 15 August 2009
Rate relief hit by red-tape delays
Small businesses are facing delays in taking advantage of the Government's rate relief scheme because of the complexities of the software needed to calculate the new rates.
The scheme - which allows firms to defer payment of 60% of the increase in rates bills - came live last week.
Although The Local Government Association believes most councils met the deadline in sending out formal notification to businesses about the scheme the complexity of calculating the rates has led to fears they will not be done in time.
"When the Government announced its business rates deferral scheme at the end of March it claimed to be helping businesses with lower rates bills during the recession," said Jerry Schurder, head of business rates at Gerald Eve.
"In the event businesses have had to continue paying full rates since April and it will not be until October at the earliest that they see any benefit."
www.ukba.co.uk
The scheme - which allows firms to defer payment of 60% of the increase in rates bills - came live last week.
Although The Local Government Association believes most councils met the deadline in sending out formal notification to businesses about the scheme the complexity of calculating the rates has led to fears they will not be done in time.
"When the Government announced its business rates deferral scheme at the end of March it claimed to be helping businesses with lower rates bills during the recession," said Jerry Schurder, head of business rates at Gerald Eve.
"In the event businesses have had to continue paying full rates since April and it will not be until October at the earliest that they see any benefit."
www.ukba.co.uk
Friday 14 August 2009
Sporting Chance for Warwickshire Businesses
Now I know this is not a subject that falls within the subject matter of this blog and I apologise to all readers who are from outside The West Midlands but I read an article in my local paper The Stratford Herald and I am grateful to them for providing this information.
Heads up all you firms in the Warwickshire area. The Olympic Games are looking for you. According to Coventry and Warwickshire Chamber of Commerce local companies are being sought to bid for business both for the games proper and to work on the pre games activity that is likely to be going on in the area as national teams arrive to prepare and train.
Business Link are organising two business seminars to help smaller businesses capitalise on the opportunity. The first workshop is taking place on 29th September and the second for March 2010. If you would like to register please call 02476 654321 or visit http://www.cw-chamber.co.uk/
Source: http://www.stratford-herald.com/
http://www.ukba.co.uk/
Heads up all you firms in the Warwickshire area. The Olympic Games are looking for you. According to Coventry and Warwickshire Chamber of Commerce local companies are being sought to bid for business both for the games proper and to work on the pre games activity that is likely to be going on in the area as national teams arrive to prepare and train.
Business Link are organising two business seminars to help smaller businesses capitalise on the opportunity. The first workshop is taking place on 29th September and the second for March 2010. If you would like to register please call 02476 654321 or visit http://www.cw-chamber.co.uk/
Source: http://www.stratford-herald.com/
http://www.ukba.co.uk/
Service sector reports growth in July
Activity in the UK's services increased in July, according to data released by the Chartered Institute of Purchasing and Supply (CIPS) and Markit survey.
Just under 25% of service sector companies in Britain reported an increase in sales from the previous month, compared to only 16% that reported a downturn.
These figures have led to a balance of 53, the third consecutive month that the figure has been over 50. Anything over 50 equates to economic growth.
"While the improvement in the performance of the services industry has been remarkable in many respects, it should be noted that growth is from a low base and the recession has left companies with a high degree of excess resources," said Paul Smith, economist at Markit.
www.ukba.co.uk
Just under 25% of service sector companies in Britain reported an increase in sales from the previous month, compared to only 16% that reported a downturn.
These figures have led to a balance of 53, the third consecutive month that the figure has been over 50. Anything over 50 equates to economic growth.
"While the improvement in the performance of the services industry has been remarkable in many respects, it should be noted that growth is from a low base and the recession has left companies with a high degree of excess resources," said Paul Smith, economist at Markit.
www.ukba.co.uk
Thursday 13 August 2009
Some staff ‘using swine flu to skive’
Small business bosses are concerned that staff are taking advantage over the current fears concerning swine flu to take time off work.
Over a 1,000 companies have contacted Employment Law Advisory Services (ELAS) to seek advice over employees who they fear may be using swine flu as an excuse to be absent from work.
"Managers feel that some staff are simply taking advantage of concerns about the transmission of swine flu to take an extra few days off work," said Peter Mooney, ELAS's head of consultancy.
"Because the emphasis has been on not going to your local GP but using websites to assess the infection and the risk to others, those who stay at home are not going to need a doctor's note or have too many people calling on them to see how they feel."
The National Pandemic Flu Service advises that individuals who appear to have symptoms associated with swine flu should stay at home for up to seven days to recover and avoid passing on the virus.
www.ukba.co.uk
Over a 1,000 companies have contacted Employment Law Advisory Services (ELAS) to seek advice over employees who they fear may be using swine flu as an excuse to be absent from work.
"Managers feel that some staff are simply taking advantage of concerns about the transmission of swine flu to take an extra few days off work," said Peter Mooney, ELAS's head of consultancy.
"Because the emphasis has been on not going to your local GP but using websites to assess the infection and the risk to others, those who stay at home are not going to need a doctor's note or have too many people calling on them to see how they feel."
The National Pandemic Flu Service advises that individuals who appear to have symptoms associated with swine flu should stay at home for up to seven days to recover and avoid passing on the virus.
www.ukba.co.uk
Wednesday 12 August 2009
Green Grants Machine
Designed to help small business owners like you find funding to make the small changes that can make a big difference where the environment is concerned.
Green Grants Machine is the UK’s most comprehensive source of information on grants, loans and awards available to help your business go green and save on energy bills.
Their completely free directory contains information on over £1.2 billion of funds available to help you... purchase hybrid fleet vehicles, install solar panels, introduce a recycling scheme in the workplace or to invest in green packaging to name just a few.
So why not run a search now and find out what money you could be eligible for?
Find funding now!
www.ukba.co.uk
Green Grants Machine is the UK’s most comprehensive source of information on grants, loans and awards available to help your business go green and save on energy bills.
Their completely free directory contains information on over £1.2 billion of funds available to help you... purchase hybrid fleet vehicles, install solar panels, introduce a recycling scheme in the workplace or to invest in green packaging to name just a few.
So why not run a search now and find out what money you could be eligible for?
Find funding now!
www.ukba.co.uk
Tuesday 11 August 2009
The Carbon Trust has announced a £100 million loan fund for SME's looking to reduce their carbon footprint.
Borrow £3,000 to £400,000 at 0% interest
Is your old equipment making your business uncompetitive? Or is it simply costing a fortune in energy bills? Our interest free loans give you the opportunity to both modernise your business and reduce overheads, with your loan repayments comfortably covered by your estimated energy savings.
Not just for SMEs
The maximum loan limit available to borrow has now been doubled to £400,000. And while loans used to be available only to SMEs, they’re now also available to larger companies that don’t fall under the Carbon Reduction Commitment – this typically equates to those that spend less than £500,000 a year on electricity.
The unsecured loan that can pay for itself
Our 0% business loans are unsecured and interest free, with no arrangement fees and a straightforward application process. Loans can be repaid over a period of up to four years and as the scheme is designed for energy savings to cover repayments, the loan will effectively pay for itself.
Find out more: http://www.carbontrust.co.uk/energy/takingaction/about-loans.htm
www.ukba.co.uk
Is your old equipment making your business uncompetitive? Or is it simply costing a fortune in energy bills? Our interest free loans give you the opportunity to both modernise your business and reduce overheads, with your loan repayments comfortably covered by your estimated energy savings.
Not just for SMEs
The maximum loan limit available to borrow has now been doubled to £400,000. And while loans used to be available only to SMEs, they’re now also available to larger companies that don’t fall under the Carbon Reduction Commitment – this typically equates to those that spend less than £500,000 a year on electricity.
The unsecured loan that can pay for itself
Our 0% business loans are unsecured and interest free, with no arrangement fees and a straightforward application process. Loans can be repaid over a period of up to four years and as the scheme is designed for energy savings to cover repayments, the loan will effectively pay for itself.
Find out more: http://www.carbontrust.co.uk/energy/takingaction/about-loans.htm
www.ukba.co.uk
Monday 10 August 2009
Which way the UK economy from here???
I know we all want the economy to improve, but I do wonder if we are kidding ourselves. Of course the Stock market is going to improve if you buy £125bn of bonds...and the prospect of a further £50bn can only help. ....but what about the underlying economy represented by the SME market. What of us??
My view is that the Autumn could be pretty grim for the SME sector. We seem to be at the back end of these things...we need to be very cautious about retaining as much working capital as possible. It may well be we are at our most vulnerable when we're on the mend...
Chris Scanlon
Call for businesses to pay fair
The Minister urged businesses to sign up to the Prompt Payment Code, which aims to encourage better payment performance between businesses. Regional Minister for the South East, Jonathan Shaw, will also write to local councils, public sector bodies and business groups in the region to encourage them to sign up to the code.
Over 750 companies in the South East failed during 2008 because of late payment and the region’s companies will pay over £33m in unnecessary interest charges because of overdue payments this year.
Visiting Seevent Plastics - one of over 350 companies that have already committed to the code - Rosie Winterton, Minister for Regional Economic Development said:
“Prompt payment remains the biggest financial challenge faced by firms and in many cases late payment is the difference between life and death for a business.
“We are taking this issue seriously, that’s why all government departments have signed up to the Code and are going a step further by paying nine out of ten invoices within ten days. We’re also providing advice and support - 80,000 Managing Cashflow guides have been downloaded since last November.
“I want to see more companies acting responsibly and paying their invoices promptly and without changing their agreed contractual terms.
“Seevent are a great example of good business – they manage their own cash flow and ensure they pay suppliers on time. That’s why I’m here in Lancing to encourage more companies to follow their example and sign up to the Prompt Payment Code”
Ken Fisher, Managing Director of Seevent said:
“”We at Seevent believe that the payment of invoices on time is a major part of the contract between supplier and customer. The customer rightly complains if his goods are late in arriving and therefore should honour his part of the contract by paying on time. At Seevent we pride ourselves on our payment record”
Pam Alexander, Chief Executive of the South East England Development Agency said:
"SEEDA is working in close partnership with the Government on the Prompt Payment Code. This issue has been a high priority for the South East Economic Delivery Council and all partners are committed to addressing it - both for public sector contracts and in working with major corporates through the business membership organisations on the Council.
“SEEDA backs the Prompt Payment Code and we have worked very hard to ensure we pay our own suppliers as quickly as possible to keep cash flow moving during the recession. We are currently paying 96% of uncontested invoices within 8 days, so our money is in supplier bank accounts within 10 days."
Organisations in both the public and private sector can sign up to the Prompt Payment Code by visiting www.promptpaymentcode.org.uk
www.ukba.co.uk
Over 750 companies in the South East failed during 2008 because of late payment and the region’s companies will pay over £33m in unnecessary interest charges because of overdue payments this year.
Visiting Seevent Plastics - one of over 350 companies that have already committed to the code - Rosie Winterton, Minister for Regional Economic Development said:
“Prompt payment remains the biggest financial challenge faced by firms and in many cases late payment is the difference between life and death for a business.
“We are taking this issue seriously, that’s why all government departments have signed up to the Code and are going a step further by paying nine out of ten invoices within ten days. We’re also providing advice and support - 80,000 Managing Cashflow guides have been downloaded since last November.
“I want to see more companies acting responsibly and paying their invoices promptly and without changing their agreed contractual terms.
“Seevent are a great example of good business – they manage their own cash flow and ensure they pay suppliers on time. That’s why I’m here in Lancing to encourage more companies to follow their example and sign up to the Prompt Payment Code”
Ken Fisher, Managing Director of Seevent said:
“”We at Seevent believe that the payment of invoices on time is a major part of the contract between supplier and customer. The customer rightly complains if his goods are late in arriving and therefore should honour his part of the contract by paying on time. At Seevent we pride ourselves on our payment record”
Pam Alexander, Chief Executive of the South East England Development Agency said:
"SEEDA is working in close partnership with the Government on the Prompt Payment Code. This issue has been a high priority for the South East Economic Delivery Council and all partners are committed to addressing it - both for public sector contracts and in working with major corporates through the business membership organisations on the Council.
“SEEDA backs the Prompt Payment Code and we have worked very hard to ensure we pay our own suppliers as quickly as possible to keep cash flow moving during the recession. We are currently paying 96% of uncontested invoices within 8 days, so our money is in supplier bank accounts within 10 days."
Organisations in both the public and private sector can sign up to the Prompt Payment Code by visiting www.promptpaymentcode.org.uk
www.ukba.co.uk
Sunday 9 August 2009
Small business spending shows signs of recovering confidence
By the end of Q2, spending on Visa Business Cards, which are designed for small businesses, saw a return to pre-September levels. In June 2009 a record number of transactions were made on Visa Business Cards, up 19% on the previous year. The amount spent was also up 11% year-on-year in June 2009.
Two spending categories in particular have seen large increases in recent months according to Visa’s data. These are:
* Temporary Staff Recruitment: After falling 22% between Q3 and Q4 in 2008, and a further 17% in Q1, the value of payments on Visa Business Cards bounced back 23% in Q2 2009. Overall the number of transactions made on Visa Business Cards for temporary staff recruitment increased 72% in Q2 compared to Q1
* Travel Agency spend: Whilst travel has been widely reported as one of the sectors hit hardest by the recession, the number of transactions made on Visa Business Cards increased 10% year-on- year in June 2009. After a trend of decline in the value of payments of 26% between Q3 and Q4 2008 there was a pick up of 5% in Q1 and more marked increase of 13% in Q2
Interestingly, although payments to travel agents are increasing, travel and accommodation continue to be areas where small businesses are tightly controlling budgets. The number of Visa Business Card transactions made on air travel has returned to pre-October levels but the value of those transactions has stayed much lower – on average 3% lower in Q1 and Q2 2009 compared to the same period in 2008. The pattern is similar for hotel & accommodation expenditure but the value of transactions has declined much further – on average 19% lower during the first half of the year.
Other categories which continue to be a focus for cost cutting are Printing and Advertising; and Computer Equipment & Services. During January – June 2009, they remained respectively on average 27% and 11% below the same period during 2008 in terms of the value of transactions.
Nigel Eaton, Vice President, Visa Commercial said: “It’s too early to talk about a recovery in the small business economy but the last quarter has seen a marked reversal of the downward trend in spending. Whilst businesses are still aiming to cut costs wherever possible, uncertainty about the rest of 2009 is having a strategic impact on some areas of spending – for example a surge in recruiting for the short rather than long-term.
“Meanwhile, businesses are looking to take advantage of the benefits of cards such as helping to track and control cash flow and protect against potential losses when ordering goods and services which later on may not be received. This may also be one of the reasons the use of travel agents who can also help with managing costs, appears to be more popular.
“Businesses are seeking more secure, convenient, and quick to use payment options that allow them to plan, pay online, and control their business spending over the short and medium term. Visa Business Cards offer a number of ways to do this including debit, prepaid and interest-free charge cards”.
www.ukba.co.uk
Two spending categories in particular have seen large increases in recent months according to Visa’s data. These are:
* Temporary Staff Recruitment: After falling 22% between Q3 and Q4 in 2008, and a further 17% in Q1, the value of payments on Visa Business Cards bounced back 23% in Q2 2009. Overall the number of transactions made on Visa Business Cards for temporary staff recruitment increased 72% in Q2 compared to Q1
* Travel Agency spend: Whilst travel has been widely reported as one of the sectors hit hardest by the recession, the number of transactions made on Visa Business Cards increased 10% year-on- year in June 2009. After a trend of decline in the value of payments of 26% between Q3 and Q4 2008 there was a pick up of 5% in Q1 and more marked increase of 13% in Q2
Interestingly, although payments to travel agents are increasing, travel and accommodation continue to be areas where small businesses are tightly controlling budgets. The number of Visa Business Card transactions made on air travel has returned to pre-October levels but the value of those transactions has stayed much lower – on average 3% lower in Q1 and Q2 2009 compared to the same period in 2008. The pattern is similar for hotel & accommodation expenditure but the value of transactions has declined much further – on average 19% lower during the first half of the year.
Other categories which continue to be a focus for cost cutting are Printing and Advertising; and Computer Equipment & Services. During January – June 2009, they remained respectively on average 27% and 11% below the same period during 2008 in terms of the value of transactions.
Nigel Eaton, Vice President, Visa Commercial said: “It’s too early to talk about a recovery in the small business economy but the last quarter has seen a marked reversal of the downward trend in spending. Whilst businesses are still aiming to cut costs wherever possible, uncertainty about the rest of 2009 is having a strategic impact on some areas of spending – for example a surge in recruiting for the short rather than long-term.
“Meanwhile, businesses are looking to take advantage of the benefits of cards such as helping to track and control cash flow and protect against potential losses when ordering goods and services which later on may not be received. This may also be one of the reasons the use of travel agents who can also help with managing costs, appears to be more popular.
“Businesses are seeking more secure, convenient, and quick to use payment options that allow them to plan, pay online, and control their business spending over the short and medium term. Visa Business Cards offer a number of ways to do this including debit, prepaid and interest-free charge cards”.
www.ukba.co.uk
Saturday 8 August 2009
£3bn in tax payments deferred by HMRC
The taxman has now deferred £3.17bn in tax under arrangements announced in April's Budget - around 177,000 separate deferral agreements- to ease the burden on business in the recession.
The latest statistics from HM Revenue and Customs show that while the sum deferred is still climbing it is not all outstanding - around £2bn has been paid back. That leaves a sum of £1.14bn still in the process of being repaid.
According to a statement from HMRC around 90% of what was expected to be repaid has been received.
Of the £3bn deferred £320m forms repeat deferrals. Around 60% of deferrals are for three months or less.
The payment service arranges deferrals of PAYE, VAT, national insurance and corporation tax.
Businesses are able to use the service if they are 'genuinely unable to pay' and if the tax they owe is on the previous year's profits or if a trading loss in the current year is a high probability.
www.ukba.co.uk
The latest statistics from HM Revenue and Customs show that while the sum deferred is still climbing it is not all outstanding - around £2bn has been paid back. That leaves a sum of £1.14bn still in the process of being repaid.
According to a statement from HMRC around 90% of what was expected to be repaid has been received.
Of the £3bn deferred £320m forms repeat deferrals. Around 60% of deferrals are for three months or less.
The payment service arranges deferrals of PAYE, VAT, national insurance and corporation tax.
Businesses are able to use the service if they are 'genuinely unable to pay' and if the tax they owe is on the previous year's profits or if a trading loss in the current year is a high probability.
www.ukba.co.uk
Friday 7 August 2009
60% of UK staff favour smaller firms
Almost two-thirds of employees would rather work for a smaller business than a larger one, according to research conducted by recruitment firm Angela Mortimer plc.
The study of around 1,400 employees found that 60% would choose a comparable offer from a smaller business rather than a large corporate as they believed that smaller firms offer a good working environment and opportunities for career development.
"For candidates big is no longer beautiful. Twenty years ago the received wisdom was to join a BA or a BT or a big bank. Now they value the flexibility of opportunity that SMEs can offer," said Mike Morgan CEO of communications firm the Red Consultancy.
www.ukba.co.uk
The study of around 1,400 employees found that 60% would choose a comparable offer from a smaller business rather than a large corporate as they believed that smaller firms offer a good working environment and opportunities for career development.
"For candidates big is no longer beautiful. Twenty years ago the received wisdom was to join a BA or a BT or a big bank. Now they value the flexibility of opportunity that SMEs can offer," said Mike Morgan CEO of communications firm the Red Consultancy.
www.ukba.co.uk
Thursday 6 August 2009
Decline eases for SME manufacturers
The rate of decline in orders and output for small and medium-sized manufacturers is slowing, according to data released by the CBI's (Confederation of British Industry) quarterly SEM Trends Survey.
Of the 480 small and medium-sized businesses surveyed 51% reported a fall in orders in the three months to July and 17% saw a rise, leading to a balance of -34%.
This figure is a marked improvement on the previous quarters balance of -51%, which was the worst balance since the survey began in 1988.
Optimism about the business situation among small and medium-sized manufacturers is also falling at a slower rate, with a balance of -9% optimistic, compared to -42% in the previous quarter.
"Business conditions remain difficult for the UK's small and medium-sized manufacturers. Orders and output are still falling, but things aren't quite as gloomy as they were three months ago," said Russel Griggs, Chairman of the CBI's SME Council.
www.ukba.co.uk
Of the 480 small and medium-sized businesses surveyed 51% reported a fall in orders in the three months to July and 17% saw a rise, leading to a balance of -34%.
This figure is a marked improvement on the previous quarters balance of -51%, which was the worst balance since the survey began in 1988.
Optimism about the business situation among small and medium-sized manufacturers is also falling at a slower rate, with a balance of -9% optimistic, compared to -42% in the previous quarter.
"Business conditions remain difficult for the UK's small and medium-sized manufacturers. Orders and output are still falling, but things aren't quite as gloomy as they were three months ago," said Russel Griggs, Chairman of the CBI's SME Council.
www.ukba.co.uk
Wednesday 5 August 2009
Government to hit business with workplace parking tax
A new tax to be introduced in two years time, is being criticised as a stealth tax that businesses will pass on to employees.
The governments "workplace parking levy", announced last week means that any firm with more than eleven parking spaces will be charged £250 per year for each space. Each company can choose whether, or not, to pass the tax on to employees.
The tax is to be trialed in Nottingham in 2012, with similar trials being considered for Birmingham, Manchester, Bristol, Leeds, Newcastle, Liverpool & Sheffield.
Source: People Management Online, 3rd August 2009
www.ukba.co.uk
The governments "workplace parking levy", announced last week means that any firm with more than eleven parking spaces will be charged £250 per year for each space. Each company can choose whether, or not, to pass the tax on to employees.
The tax is to be trialed in Nottingham in 2012, with similar trials being considered for Birmingham, Manchester, Bristol, Leeds, Newcastle, Liverpool & Sheffield.
Source: People Management Online, 3rd August 2009
www.ukba.co.uk
Recession ‘will end within 3 months’
The UK recession will end within three months, according to a report issued by accountants BDO Stoy Hayward.
The accountancy firm believe that the prompt fiscal stimulus package and bank recapitalisation scheme taken in the UK have helped the economy speed ahead in the race towards recovery.
The BDO Output Index - which measures short-run turnover expectations and order book strength - recently saw largest monthly increase in 13 years, rising from 92.3 in June to 95.1 in July.
"The UK seems to be reaping the benefits of a raft of well-timed and calculated moves to stimulate the economy. In stark comparison, sluggishness and indecision has held the Eurozone back from a quicker recovery," said Alex White, Partner at BDO Stoy Hayward.
www.ukba.co.uk
The accountancy firm believe that the prompt fiscal stimulus package and bank recapitalisation scheme taken in the UK have helped the economy speed ahead in the race towards recovery.
The BDO Output Index - which measures short-run turnover expectations and order book strength - recently saw largest monthly increase in 13 years, rising from 92.3 in June to 95.1 in July.
"The UK seems to be reaping the benefits of a raft of well-timed and calculated moves to stimulate the economy. In stark comparison, sluggishness and indecision has held the Eurozone back from a quicker recovery," said Alex White, Partner at BDO Stoy Hayward.
www.ukba.co.uk
Tuesday 4 August 2009
Small firms warned online fraud is rising
Small businesses have been warned that the number of recorded online fraud attempts reached a peak last month, according to HM Revenue & Customs (HMRC).
HMRC received more than 15,000 reports of fraudulent repayment emails in the last year, in which con artists send out emails asking for financial details in order to issue a tax rebate.
"We only ever contact customers who are due a refund in writing by post. We never use emails, telephone calls or external companies in these circumstances," said HMRC chief executive, Lesley Strathie.
Anyone who has received a suspicious email should send it onto phishing@hmrc.gsi.gov.uk and then delete it from their computer.
www.ukba.co.uk
HMRC received more than 15,000 reports of fraudulent repayment emails in the last year, in which con artists send out emails asking for financial details in order to issue a tax rebate.
"We only ever contact customers who are due a refund in writing by post. We never use emails, telephone calls or external companies in these circumstances," said HMRC chief executive, Lesley Strathie.
Anyone who has received a suspicious email should send it onto phishing@hmrc.gsi.gov.uk and then delete it from their computer.
www.ukba.co.uk
Monday 3 August 2009
Businesses can use U-Switch to save on energy prices
The price comparison and switching site uSwitch.com has launched a service to help Britain's estimated 4.7 million small businesses obtain a better deal on energy. The move is in response to growing numbers of calls from SMEs keen to cut costs because of the recession. It is claimed the service – www.uswitchforbusiness.com – could help SMEs save up to 50 per cent on energy bills.
Businesses can go online or call 0800 051 5343 to get information and a quotation on the best deal for their needs. Just as with households, estimates are based on the company's energy consumption and are given after comparing the latest tariffs provided by a range of energy suppliers and selecting the most competitive rates.
The average SME electricity bill is just over £2,500 per year, while the average gas bill is just over £3,200. Although many owners run their business from home, about 3 million SMEs have stand-alone business premises and may be locked into a contract with a supplier. These contracts come up for regular renewal, but only a third of SMEs check the market before signing their next contract. As a result, they often end up paying too much for their energy.
www.ukba.co.uk
Businesses can go online or call 0800 051 5343 to get information and a quotation on the best deal for their needs. Just as with households, estimates are based on the company's energy consumption and are given after comparing the latest tariffs provided by a range of energy suppliers and selecting the most competitive rates.
The average SME electricity bill is just over £2,500 per year, while the average gas bill is just over £3,200. Although many owners run their business from home, about 3 million SMEs have stand-alone business premises and may be locked into a contract with a supplier. These contracts come up for regular renewal, but only a third of SMEs check the market before signing their next contract. As a result, they often end up paying too much for their energy.
www.ukba.co.uk
Sunday 2 August 2009
The contraction in manufacturing output is easing, but a return to growth could still be some way off
The volume of manufacturing output continued to fall in the three months to July, with 43% of firms saying it declined, and just 12% of firms saying it rose, giving a balance of -31%. This figure represented a slower rate of decline than the previous three months, when the balance was -53%.
However, a return to growth could still be some way off, with expectations for the coming three months remaining negative.
Manufacturing firms have run down their stocks even more aggressively over the past quarter, with stocks of finished goods reduced at the fastest rate in the 51 year history of the survey (a balance of -23). Despite this rapid rate of destocking, stock adequacy remains high and firms plan to reduce their finished goods inventories at a similarly sharp rate next quarter (a balance of -25).
Export demand was also disappointing, despite the relative weakness of Sterling, which makes British goods cheaper for foreign customers. The balance reporting a fall in export orders over the last three months was -38%, compared with -39% the previous quarter, and expectations last quarter of -18%.
The sharp fall in export orders came despite firms cutting prices in foreign markets. The balance for export prices was -26%, from -10% last quarter, compared to a balance for domestic prices of -20%, from -17%.
The survey also showed that employment in the sector is continuing to fall sharply. 47% of firms reduced numbers employed and just 6% increased, giving a rounded balance of -42%.
www.ukba.co.uk
However, a return to growth could still be some way off, with expectations for the coming three months remaining negative.
Manufacturing firms have run down their stocks even more aggressively over the past quarter, with stocks of finished goods reduced at the fastest rate in the 51 year history of the survey (a balance of -23). Despite this rapid rate of destocking, stock adequacy remains high and firms plan to reduce their finished goods inventories at a similarly sharp rate next quarter (a balance of -25).
Export demand was also disappointing, despite the relative weakness of Sterling, which makes British goods cheaper for foreign customers. The balance reporting a fall in export orders over the last three months was -38%, compared with -39% the previous quarter, and expectations last quarter of -18%.
The sharp fall in export orders came despite firms cutting prices in foreign markets. The balance for export prices was -26%, from -10% last quarter, compared to a balance for domestic prices of -20%, from -17%.
The survey also showed that employment in the sector is continuing to fall sharply. 47% of firms reduced numbers employed and just 6% increased, giving a rounded balance of -42%.
www.ukba.co.uk
Saturday 1 August 2009
Darling to press banks over lending
Chancellor Alistair Darling will meet the chairmen and chief executives of Britain's largest banks over concerns that lenders are still failing to provide adequate capital to businesses.
Representatives from Lloyds, Royal Bank of Scotland, HSBC and Barclays will be present at a meeting with the Chancellor today.
Following the government's £37bn bank bailout and interest rates being held at a historic low of 0.5% for several months, there are concerns in the government that banks are not doing enough to help provide finance to individuals and companies.
"We [the government] are playing our part, the banks have got to understand that the public will not understand it if they do not play their part to the full," said Mr Darling.
www.ukba.co.uk
Representatives from Lloyds, Royal Bank of Scotland, HSBC and Barclays will be present at a meeting with the Chancellor today.
Following the government's £37bn bank bailout and interest rates being held at a historic low of 0.5% for several months, there are concerns in the government that banks are not doing enough to help provide finance to individuals and companies.
"We [the government] are playing our part, the banks have got to understand that the public will not understand it if they do not play their part to the full," said Mr Darling.
www.ukba.co.uk
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