Business News Articles

Trade deficit rises to £3.7bn
The UK's trade deficit with the rest of the world increased in March to £3.7bn, according to the Office for National Statistics. The trade deficit rose from £2.2bn in February to £3.7bn in March, as the bad weather in January hindered the UK economy. Exports crept up by just 1% in March a imports rose by 5.2%, showing that despite the weak pound the UK is struggling to export goods. "R... more

Deficit reduction plan backed
Business groups and the Bank of England governor Mervyn King have backed the new government's £6bn deficit reduction plan. Mr King backed the plans for immediate cuts in an attempt to cut the UK's largest ever-peacetime deficit. "I am pleased that there is a clear and binding commitment to accelerate the rate at which the deficit is tackled. It doesn't make sense to run the risk of adverse ... more

Scrapping of NI ‘job tax’ welcomed
The Forum of Private Business (FPB) has welcomed the new Liberal Democrat and Conservative coalition government's decision to scrap the planned 1% hike in employers' national insurance (NI). The ‘tax on jobs' had been scheduled to take place in 2011 - when many analysts anticipate small businesses will be seeking to recruit in earnest in order to meet renewed demand. Although the 1% employ... more

Unemployment rises to 2.5 million
The number of people unemployed in the UK has increased by 53,000 to 2.5 million – the highest level since December 1994, according to figures released by the Office for National Statistics. Despite the rise in the three months to March the rate of unemployment remains at 8% and the total number of people claiming unemployment benefit fell in April by 27,100 to 1.52 million - a sharper fall t... more

New volcanic ash cloud warning
UK air passengers have been warned that they could face further disruption this week as another plume of volcanic ash threatens to move across the UK. Airports in Portugal, France, Italy and Austria were forced to ground flights over the weekend, although the majority of airports across Europe have now reopened. The Met Office warned the northerly winds which brought the volcano dust back to E... more

Interest rates held at 0.5% again
The Bank of England has kept interest rates at the historic low of 0.5% for the 14th month in succession. This decision was widely expected, as it is feared that any rise in the cost of borrowing could damage the country's economic recovery. The UK emerged from recession in the final quarter of last year after six consecutive quarters of contraction. Despite the UK economy growing by 0.2% in... more

Greek rescue deal calms markets
EU finance ministers have agreed on emergency measures worth £650bn to prevent the Greek financial crisis from effecting other countries. Stock markets across the world have reacted positively to the news, with the FTSE up 250 points. There had been fears that if no measures were taken the euro would have come under severe pressure and global financial confidence would plummet. "The euro... more

Hung parliament worries businss owners
Despite winning extra seats the Conservative government have not made enough gains to have an overall majority. Business leaders are concerned that the hung parliament will lead to economic uncertainty - the pound has already suffered as business confidence wavers. Under the rules of Britain's constitution, the sitting prime minister in a hung parliament has the right to make the first attem... more

House prices rise 6.6%
House prices have increased by 6.6% in the last 12 months, according to the latest Halifax house price survey. This is the fastest annual rate of increase since October 2007, but the trend over the last few months has been for prices to slow. Prices fell slightly in April by 0.1%, taking the cost of the average UK home to £168,202. "The underlying rate of house price growth has slowed in re... more

Small firms need political stability
With no political party securing a majority and the prospect of a hung parliament, the Forum of Private Business (FPB) has called on MPs to put aside their differences and create a functioning administration as soon as possible. The FPB believes small to medium-sized enterprises are crucial to Britain's economic recovery, with the potential to create jobs and spearhead innovation. But the unce... more