Business News Articles

Interest rates remain at 5%
The Bank of England has kept interest rates on hold at 5% in a move that had been widely predicted. Despite evidence that the economy is continuing to falter – with house prices falling by 2.4% in May – the Bank is concerned about rising inflation, which hit 3% in April as high food and fuel prices took their toll. ... more

Long-hours culture returning
The number of people working more than the European maximum of 48 hours a week has risen by 180,000 already in 2008, according to data released by the TUC. The union body estimates there are now 3.3m people who regularly work beyond 48 hours as companies attempt to get through the economic crisis by piling work on existing employees rather than taking on new staff. ... more

Love of job beats money
Love of the job and a decent work/life balance are more important to staff than how much they earn, according to a survey by City & Guilds. A majority (57%) said they remained with their present company because they had a strong interest in what they did compared to 44% who said they were in it for the money. ... more

Jobseekers negative on agencies
A majority of jobseekers are reluctant to use recruitment agencies, according to a survey by Leeds-based agency Unity Personnel. The company’s research found 26% of those surveyed were ‘very negative’ towards agencies and a further 33% had ‘significant reservations’ about them. ... more

Sharp rise in online spend
Online shopping is booming in the UK despite the economic slowdown, according to figures from retail analyst Verdict Research. The group revealed that the amount of money consumers spent on the internet rose by 35% in 2007, to a total of £14.7bn. ... more

Peak-rate phone firms named
Consumer group Which? has published a list of businesses and government departments it claims are profiting from forcing customers to call peak-rate helplines. The body claims more than 30 bodies make money from using 0870, 0871, 0844 and 0845 numbers, many of which keep customers on hold for long periods of time. ... more

Company car fuel rate rise
Businesses that provide staff with company cars for work purposes will have to reimburse employees with higher fuel costs. HMRC has increased the rate for petrol cars by between 9% and 15%, depending on the engine size, while diesel drivers will be able to claim back between 18% and 21% more. ... more

Business carrier ceases flights
UK business airline Silverjet has suspended all flights as it struggles to cope with falling customer demand and rising fuel costs. Shares in the company were suspended in May and the cessation of flights follows the failure to secure new funding. ... more

Small firms lead flexible working
Small companies have a better record of accepting requests for flexible working than larger ones, according to the government’s Walsh Review. Statistics from the British Chamber of Commerce revealed that 89% of small firms already offer some form of flexible working to employees, ranging from working from home, part-time work, compressed hours or flexi-time. ... more

New law to enforce fair trade
A new law against dodgy business operators has come into force, obliging all companies to trade fairly. The move outlaws practices such as false closing-down sales to misleading claims by salespeople, specifically banning 31 practices. ... more