Business News Articles

Interest rates held again at 0.5%
The Bank of England has left interest rates unchanged at the record low of 0.5% for the 19th consecutive month and also announced there will be no fresh injection of money through quantative easing (QE). QE is the Bank's policy of pumping money into the economy in order to increase the supply of money and stimulate demand. Over £200bn has already been spent. Despite one member of the MPC vo... more

Industrial production rises 0.3%
Industrial production in the UK increased in August as the manufacturing sector continued to expand. Production rose by 0.3% compared with the previous month, and 4.2% compared with a year earlier. Manufacturing output also rose 0.3% in August, and was up 6% on the year. The figures offer some hope that the industrial sector will continue to support the overall economy as the fiscal squeeze ... more

Number of start ups increase
The number of new companies being set-up in the UK has risen for the first time in 18 months, according to a study by Royal Mail. The research found that more than 39,000 businesses were started in the last six months. There has been a 13% rise in the number of new companies in Britain, with 4,400 more SMEs being established between the beginning of March and the end of August this year than in... more

House prices see record fall
House prices declined by 3.6% in September from October - the biggest fall in month-on-month prices since the figures were first compiled in 1983, according to data released from the Halifax. The quarter on quarter comparison, seen as a smoother measure of prices, showed a 0.9% drop in September. The average UK home is now valued at £162,096 "Prospects for the housing market remain uncertai... more

Plan to create 10,000 new businesses
Welfare secretary Iain Duncan Smith has unveiled plans to create a extra 10,000 small businesses across Britain yesterday. During his keynote speech to the conference he outlined plans to give grants to unemployed people who want to set up their own businesses, in a bid to boost the number of first-time entrepreneurs. The welfare secretary said the New Enterprise Allowance (NEA) scheme would... more

Job market growth slows again
The number of job vacancies in the UK increased last month at the slowest rate in almost a year, according to a survey by the Recruitment and Employment Confederation (REC). The number of people appointed to permanent jobs in September also grew by its slowest pace in 12 months. "The report shows that the jobs market is starting to flatline and may herald a 'double dip' in employment," said ... more

Car sales decline 8.9%
Car sales in the UK declined for the third month in succession in September, according to data released by the Society of Motor Manufacturers and Traders (SMMT). Although sales have fallen again the rate of decline is less severe than in August. Sales last month were down 8.9% from September 2009 following August's 17.5% fall. However, sales last year were boosted by the government's car scr... more

Service sector expands in September
The UK services sector has increased in September, according to data released by to financial data company Markit. The purchasing managers index for UK services rose to 52.8 for the month, up from a 16-month low of 51.3 in August. However, new business inflow fell to its lowest level for the year due to concerns about the strength of the recovery "Inflows of new work and prospects for the... more

Bank bonuses to reach £7bn
Almost £7bn is expected to be paid out to bankers in bonuses this year, according to research by the Centre for Economics and Business Research (CEBR). The level of bank bonuses is less than the £11bn paid out at the peaking of the banking boom in 2007 but will still anger small and medium-sized business owners. The CEBR said that the government would take a bigger share of the bonus pot t... more

Losing staff costs firms £42bn
The failure of businesses in the UK to keep competent employees is costing them £42bn a year, according to a survey by PricewaterhouseCoopers (PwC). PwC have said that the cost of replacing a worker often equates to about a year of their salary. It added that the costs included those associated with the lost skills and productivity of the worker, plus having to find and train new recruits. ... more