Newbusiness Latest News

Twitter surges 93%

editor — Fri, 03 Jul 2009 15:00:10 +0100

The number of people visiting social networking site Twitter has increased by 22 fold in the last twelve months, according to internet monitoring company Hitwise. Twitter has now become the fifth most viewed social networking site compared with the 84th last year, with an amazing 93% growth in 2009. Another measure of Twitter's success is its jump in the overall internet rankings up from the 969th most visited site on the web last year to its current ranking of 38th. Twitter has now secured its place as one of the fastest forms of communication following its breaking of news stories such as Mumbai and the recent death of Michael Jackson.

Graduate jobs dilemma

editor — Fri, 03 Jul 2009 14:18:31 +0100

A survey of the top 100 graduate employers has shown that vacancies have dropped by more than a quarter this year. More than 8% of graduates, around 16,835, were still unemployed six months after finishing their studies, a rise of 2% on the previous year. And those that did find work were often found to have taken low paid retail jobs. Experts are predicting doom and gloom for those graduating in the summer of 2009. Nearly half of all firms will not be looking to hire graduates or school-leavers in the months ahead, according to a report by the Chartered Institute of Personnel and Development (CIPD).

Swine flu set to hit UK business

editor — Fri, 03 Jul 2009 11:57:00 +0100

New cases of swine flue could reach 100,000 per day by August according to government ministers, causing big problems for UK businesses. The number of cases has almost doubled in the last 7 days to 7,400 and the government has admitted that they are no longer able to contain the spread of the virus. Many business bosses who have cut staff to the bone due to the downturn are already struggling to cover workloads during the busy holiday season. They are worried that staff will be easily able to take off sick days as swine flu patients with suspected symptoms will be told to stay at home and telephone their GP rather than going to the surgery for the usual checks and certification.

EU mobile phone costs reduced

editor — Thu, 02 Jul 2009 09:59:06 +0100

Mobile phone tariffs have been reduced across all 27 of the EU states. The maximum charge for outbound calls to another EU country is now 37p and receiving call costs are also down to 17p per minute. Additionally calls will now be billed by the second after a duration of half a minute. The cost of sending a text is also reduced to 10p. The new reduced tariffs will be particularly good news for businesses who have staff travelling across the EU states as they are expected to achieve significant savings.

Credit card cheques are banned

editor — Thu, 02 Jul 2009 09:18:40 +0100

Banks will no longer be allowed to send out unsolicited credit card cheques or raise credit card limits without the prior written permission of the account holder. The ban is part of the government’s plans for consumer protection to stop inappropriate selling of financial products. According to a survey by Uswitch, 20% of account holders have had their credit card limit increased without their consent.

Heatwave causing staff problems

editor — Wed, 01 Jul 2009 16:28:00 +0100

Britain's heatwave is expected to continue until the weekend, raising problems for small business owners, particularly those who operate from offices without air conditioning. Tuesday was the hottest day of the year so far with a temperature of 31.8C, and with staff having to work in uncomfortable conditions business owners must ensure that they do everything possible to assist their staff in such conditions. Investing in fans, ensuring supplies of cold water are available, giving staff extra 5 minute breaks and rotation of jobs can all ensure staff morale and productivity are maintained in these testing times. Although there is a legal minimum indoor temperature limit of 13C for cold conditions there is no similar legal restriction for when the workplace becomes too hot.

Manufacturing output rises for first time in 15 months

newbusiness — Wed, 01 Jul 2009 15:28:59 +0100

Output in the UK's manufacturing industry has risen for the first time since March 2008, according to data released by the Chartered Institute of Purchasing and Supply (CIPS). The CIPS also revealed that the pace of decline in new orders has continued to ease, leading to hopes that the industry is slowly beginning to recover. "The latest data suggests that after months of gloom and doom, there are some signs of relief for the UK manufacturing sector," said David Noble, chief executive of the CIPS. "Most encouragingly, purchasing managers said that output, which is a key component of the PMI index, has risen for the first time in 15 months, indicating that the sector may finally be coming out of recession."

CBI: Red tape must not increase

newbusiness — Wed, 01 Jul 2009 14:49:48 +0100

The Confederation of British Industry (CBI) have warned the government about the dangers of over-regulation in the current economic climate. Mr Lambert, director-general of the CBI, cited the axing earlier this year of plans for regulatory budgets to curb red tape across Whitehall as an alarming indication that ministers could add to the high regulation burden already felt by companies in the UK. "We know that in a recession, when government ministers don't have any cash, they regulate instead," said Mr Lambert.

Small firms bring branding in-house

newbusiness — Wed, 01 Jul 2009 14:30:58 +0100

Just fewer than 70% of small businesses in the UK are considering branding their firms themselves rather than hire outside marketers in order to save money, according to a survey by software company Corel. Although 88% of respondents recognised the importance of having a strong brand, the need to cut costs among small businesses at the moment is paramount. "In these times of recession where small businesses are often struggling to keep afloat, they are looking for different and innovative ways to save money and get new customers," said Amanda Bedborough of Corel. "As well as being very important for any business to have a strong brand, doing this in-house is a great way for businesses to cut costs as well as enabling them to be more creative."

House prices rise 0.9% in June

newbusiness — Wed, 01 Jul 2009 12:30:32 +0100

House prices increased by 0.9% in June, the third rise in the last four months, according to data published by Nationwide. This rise in house prices brings the annual rate of decline down to 9.3% from 11.3% from May's figures, and has led to hopes that the housing market is beginning to recover. "House prices have now risen in three of the last four months, suggesting that the improvement that began to show up in March represents more than just statistical noise," said Martin Gahbauer, Nationwide's chief economist.

Economy falls at fastest rate in 50 years

newbusiness — Wed, 01 Jul 2009 11:26:26 +0100

The UK economy contracted by 2.4% in the first quarter of 2009 - the fastest rate of decline since 1958, according to data released by the Office for National Statistics (ONS). The data also revealed that economic output fell 4.9% during the first quarter of this year compared to the first quarter of 2008 - the largest year-on-year fall on record. Despite the poor figures, economists are stressing that the most recent data suggests the UK's economic condition is improving. "These figures are much worse than expected, but since we are now on the verge on the third quarter it should only provide a temporary knock to confidence," said James Knightley of financial firm ING.

Staff working longer hours in recession

newbusiness — Tue, 30 Jun 2009 15:41:07 +0100

Almost half of workers in the UK are putting in extra hours in order to keep their jobs in the recession and cope with a growing workload, according to research by BT Business. The research revealed that 43% of employers expect their staff to put in overtime, with many now working so many extra hours that they are effectively doing a six-day week. Almost half of respondents admit to being motivated to work harder to keep their jobs due to the recession, with 34% of those surveyed turning up earlier for work and 39% saying they are being more proactive to impress their employer. "These findings reflect the length that employees are willing to go to, to keep Britain's economy afloat, said Bill Murphy, managing director of BT Business. "Employers should look to match these efforts by equipping staff with what they need to become more efficient. Financial incentives may not be an option, but companies should consider how working practices can eliminate wasted time and boost productivity."

Government to raise £1bn for technology start-ups

newbusiness — Tue, 30 Jun 2009 11:28:48 +0100

The government have unveiled plans to provide £150m worth of funding for technology start-ups this year. The funding will be provided by the government alongside private sector investors, and a target to reach £1bn within 10 years has been set. The UK Innovation Investment Fund has been set up to address a lack of funding for venture capitalist groups, which have warned that hundreds of UK technology companies could fail due to a lack of funding. "US funds are big enough to put tens of millions into a company and to finance follow-on funding. This will allow us to do the same in the UK," said Lord Drayson, minister for science and innovation.

FSB: Small firms slowly recovering

newbusiness — Tue, 30 Jun 2009 10:46:47 +0100

Small businesses that were hit hard by the worst of the credit crunch a year ago are starting to experience a tentative recovery, according to research by the Federation of Small Businesses (FSB). FSB data revealed that 23% of FSB members saw a rise in trade last month, compared to 16% that reported this in February. A quarter of the firms surveyed cited the cost of finance as a major problem - down from 40% who stated this at the end of 2008. The poll also revealed that 68% of company owners are looking to act on a rise in business confidence and plan to grow in the next six months, with firms hoping to invest in new products, more staff and marketing. "Small businesses are naturally flexible and innovative in recessions and these figures show that despite the very many negative forces on them, they are being cautiously optimistic and are looking to expand," said John Wright, National Chairman of the FSB.

Sir Alan Sugar taken to employment tribunal

newbusiness — Tue, 30 Jun 2009 10:01:26 +0100

Sir Alan Sugar is being taken to an employment tribunal for alleged sexual discrimination and bullying by a senior female executive at one of the Apprentice star's flagship companies. Hanna Sebright, managing director at Amscreen Healthcare, is taking the government's recently appointed enterprise Tsar to court. Mrs Sebright is also claiming that former Apprentice winner Lee McQueen subjected her to lewd and offensive remarks and that the introduction of former Apprentice winners and finalists into the workplace caused a "poisonous" atmosphere. Sir Alan Sugar has vigorously denied the allegations, and the case will be heard in court later this year.

Fake CVs sent out by government

newbusiness — Mon, 29 Jun 2009 11:58:14 +0100

The government has sent out hundreds of false job applications in an attempt to undercover racism in business. The Ethnic Minority Taskforce have sent out the false applications and CVs to test whether candidates with ethnic minority names are treated differently from those with traditional British names. The results of the survey, which the British Chamber of Commerce have labelled, "underhand" will be published later in the summer.

BA luggage chaos at Terminal 5

newbusiness — Mon, 29 Jun 2009 11:28:22 +0100

Thousands of passengers at Terminal 5 in Heathrow were left stranded after a mechanical fault on the baggage system meant they were unable to check in their luggage. An estimated 5,000 passengers were unable to board their flights for a period of up to five hours, leading to chaos at Terminal 5, which is operated exclusively by British Airways. A BAA spokesperson apologised for the inconvenience and reported that the problem was fixed at around 6.00pm last night. When the £4.3bn terminal opened last March it was hit with baggage reclaim problems that forced the cancellation of over 30 flights. The airline is in dire financial trouble, and recently asked staff to work for free or take unpaid leave.

Business confidence grows in financial sectors

newbusiness — Mon, 29 Jun 2009 09:21:12 +0100

Business confidence in the UK's financial sectors is beginning to return, according to a quarterly survey by the Confederation of British Industry (CBI). Just under 30% of firms predicted an increase in business volumes - the largest figure since March 2007 - and 13% of businesses were more upbeat regarding general business prospects than they were in the previous quarter. The quarterly survey also revealed that just 1% of respondents believed that there is a risk of the financial markets deteriorating further, compared to 45% who responded this way in March. "Having seen business volumes tumble continuously for 21 months, some parts of the financial services sector look like they may be starting to come through the worst," said CBI chief economist Ian McCafferty.

Small firms must 'check accountants'

newbusiness — Sun, 28 Jun 2009 10:19:08 +0100

Eight out of ten small businesses owners are unaware if their own accountant is a member of a professional body or not, according to research conducted by the Association of Accounting Technicians (AAT). In the current economic climate it is even more vital than normal that all small companies ensure that their finances are in order and handled by a member of a professional body. "During such tough times we are shocked that Britain's small businesses aren't clear about whether their accountants are members of a professional body," said Adam Harper, Director of Professional Development at the AAT. "The person who handles your accounts might have excellent training and lots of experience but without professional accreditation they are not accountable for maintaining your financial systems."

Online retail sales to ‘increase £12bn by 2011’

newbusiness — Wed, 24 Jun 2009 15:28:21 +0100

Online sales will help save the UK retail sector during the recession, according to new research from PayPal. The PayPal UK Online Retail Report claims that UK online retail spend will increase by up £12bn by the end of 2011, offsetting the £8bn fall in high street sales that that is predicted to occur by 2011. The online sector is one of the few areas that has continued to grow in the economic downturn, and all small companies should have an online presence. "Its phenomenal growth is not only forecast to deliver sales of as much as £21bn by 2011, but a £12bn increase will also ensure that the entire UK retail sector is growing again by the end of 2011," said Carl Scheible, managing director of PayPal UK.