Business News Articles

Interest rates kept at 5%
The Bank of England has resisted the temptation to cut interest rates for the second month in a row and kept rates on hold at 5%. The decision was made despite evidence that the manufacturing, property and retail sectors are continuing to struggle in the current economic climate. ... more

Households feel the squeeze
The percentage of household income that is spent on food, bills and other essential items has risen from 25% to 31% over the past six years, according to research conducted by Capital Economics. Rising interest rates in recent years coupled with high food and energy prices were largely to blame, the consultancy said, although mortgage payments were likely to fall from 10.7% to 10% by 2009 as t... more

Sharp fall in UK manufacturing
UK manufacturing output fell by its fastest rate in six months in March, data from the Office for National Statistics has revealed. Output fell by 0.5% after two months of surprisingly strong growth, which took the quarterly figure for the first three months of 2008 to 0.3% above the last quarter for 2007. ... more

One in 10 drunk at work
One in 10 employees admits to having been drunk at their desk and one in three employees has been to work with a hangover, according to a study by Norwich Union Healthcare. The research found that 85% of employees who had been hungover or drunk at work said it affected their performance, with 42% feeling sleepy, 36% having difficulty in concentrating, 35% being less productive than usual and 2... more

Slump in office space demand
Demand for office space in London fell dramatically in the first three months of 2008 as the impact of the credit crunch took hold of the commercial property sector. The prime central London index – produced by property firm Savills – fell by 1.5% in the first quarter of 2008 on top of a 2% drop in the last three months of 2007. ... more

Crackdown on illegal workers
A growing number of businesses are being prosecuted for employing illegal workers, according to research by the BBC. The organisation reports that 137 businesses were caught breaching new rules in January and February this year, 10 times the figure for the whole of 2007. ... more

Post shake-up 'no help to SMEs'
Deregulation of the postal industry has brought no significant benefits to small businesses, according to an independent review of the sector commissioned by the government. While larger companies had benefited from greater choice, lower prices and higher standards of service by using new bulk mail services, small firms were still reliant on the Royal Mail, the initial findings of the review s... more

Banks’ view ‘too pessimistic’
The extent of the losses banks expect to make from the current credit crunch may be exaggerated, the Bank of England has said. But in its financial stability report, the Bank also warned that by refusing to lend money to even credit-worthy individuals or each other, financial institutions could turns fears of a financial crisis into reality. ... more

Grocery inquiry findings criticised
Small business groups have blasted the findings of the Competition Commission into the health of the grocery sector. Despite a committee of MPs estimating that 2,000 small shops go out of business each year, the inquiry failed to come up with any remedies that would boost independent retailers suffering at the hands of the big supermarkets. ... more

Small firms’ public sector bid
Small businesses will get free access to thousands of public sector contract opportunities under a new trial being launched by the Department for Business Enterprise and Regulatory Reform. For May, June and July, the www.supply2gov.uk website will allow new registrants to access contracts out to tender with a value of £100,000 or less. ... more