Newbusiness Latest News

Retail sales increase

editor — Tue, 07 Sep 2010 10:24:41 +0100

Retail sales increased in August compared with the same month a year ago, according to figures released by the British Retail Consortium (BRC). Like-for-like sales rose by 1% and on a total sales basis, sales rose by 2.8% compared with a year ago. Strong sales of school uniforms as children return to schools following the summer break has been attributed to the rise which has also been helped by last year’s weak figures. The BRC warned that consumers are still wary of purchasing expensive items due to uncertainty over government cutbacks. "Back-to-to school wear and the onset of autumn helped clothing and shoes produce a small overall improvement in non-food sales," said Stephen Robertson, director general of the BRC. “But with the government about to detail its cuts and a VAT rise in prospect, retailers will be hoping consumer confidence doesn't slip over the next few months."

Government urged to cut red tape

editor — Mon, 06 Sep 2010 14:46:29 +0100

Small and medium-sized businesses have called on the government to reduce regulation on the areas of Employment Law and Health and Safety Law, according to research by IRIS Software. A third of SME owner-managers cite Employment legislation as the area of business that most needs a reduction in government regulation. The same percentage name Health and Safety legislation as the area that the government should focus on first. The research also reveals that the majority are strongly opposed to some of the government's proposed legislation affecting SMEs. Only 27% support plans to formalise flexible working hours and just 26% support plans to make pension provision and contributions compulsory amongst all employers in 2012. However, small businesses in the UK are on the whole pleased with the coalition's efforts to date to stimulate economic growth and protect entrepreneurship. 57% of SMEs are impressed with the coalition government's efforts to tackle the challenges facing small businesses. "The good news is that SMEs feel that the coalition government has up until now shown a good understanding of the considerable challenges that they are facing. However, there is a worrying disconnect between what small businesses really need now, which is to be allowed to focus on growing their businesses and, in some cases, merely surviving, and the government's agenda," said Oliver Shaw, managing director of IRIS SME Solutions. "Now is absolutely not the time to be introducing burdensome and complex legislation around flexible working, pensions and payroll, which will only serve to add to the amount of red tape which small businesses have to deal with."

New car sales decline 17.5%

editor — Mon, 06 Sep 2010 10:22:50 +0100

New car sales in the UK declined sharply in August, the second consecutive month that figures have fallen, according to figures from the Society of Motor Manufacturers and Traders (SMMT). There were just over 55,000 new cars registered in August, a drop of 17.5% compared to the same month last year. Although the figure is low August traditionally sees the lowest volume of monthly sales ahead of September's launch of the new registration plate. SMMT have warned that the market would remain tough for the rest of the year but still expects more than two million new cars to be sold in 2010. "The industry enjoyed a better-than-expected first half of the year and, despite the difficulties, SMMT is forecasting that new car registrations will close just ahead of 2009 figures," said SMMT chief executive Paul Everitt.

Manufacturing recovery continues

editor — Mon, 06 Sep 2010 10:01:46 +0100

Britain's manufacturers are continuing to report buoyant trading conditions on the back of rising demand in overseas markets, according to a major survey published today by EEF. The third quarter EEF/BDO 'Manufacturing Outlook' report reveals that recovery, which began at the end of last year, has been sustained with output and orders balances reaching record levels for the second quarter in succession. The Engineering Employers Federation (EEF) predicted manufacturing output would increase by 3.7% this year and by 3.2% in 2011. It added firms were creating jobs - though these were mainly going to temporary or agency staff. "Manufacturers have continued to reap the rewards of growth in overseas markets with the upswing being felt across all sectors and regions," said EEF chief economist, Lee Hopley. "However, we have to maintain perspective that the recovery is coming from a very low base and the risks to the economy in the medium term haven't gone away."

Problems with PAYE persist

editor — Mon, 06 Sep 2010 09:34:54 +0100

Almost six million people in the UK have paid the wrong amount of tax, according to the government. Just under £2bn was underpaid via the Pay as You Earn (PAYE) system in the past two years, with about 1.4 million people owing an average of £1,500 each. However, £1.8bn has also been overpaid and 4.3 million people will get a rebate because they have paid too much. Treasury minister David Gauke said the government had inherited the problem and the PAYE system - which was created in the 1940s - was struggling to cope with modern working patterns. Mr Gauke warned that in the current financial climate the government was not in a position to "just wave goodbye" to the money owed. Millions of letters will be sent to taxpayers across the UK informing them of errors in their contributions. The first 45,000 are expected to arrive on Tuesday, with 30,000 informing recipients they are due a rebate of on average £418. The remaining 15,000 letters will tell taxpayers they have underpaid and will have their tax code altered next year to recoup the money.

Firms 'should embrace equal pay'

editor — Fri, 03 Sep 2010 14:49:13 +0100

Small and medium-sized firms are being advised to examine their pay systems to make sure they comply with equal pay laws. As part of a drive to increase transparency around pay in the workplace, the Human Rights Commission and the British Chambers of Commerce (BCC) have jointly published a guide to help employers examine their systems effectively. "Businesses want to pay people fairly for the job that they do. This guidance should help smaller businesses analyse any pay gap and make any changes required by law," said Director general of the BCC, David Frost. "Taking action now to make pay systems transparent and fair should help businesses recruit the best talent to enable the private sector to drive economic recovery." Despite it being forty years since the Equal Pay Act recent research showed that women who work full time are still paid on average 16.4% less per hour than men.

SMEs urged to attend conference

editor — Fri, 03 Sep 2010 11:45:47 +0100

Small and medium-sized company owners have the opportunity to access leading business professionals to receive advice and guidance at the inaugural Sage World on September 8th-9th. Taking place at the International Centre, Telford, the event is offering the opportunity for anyone looking to start or grow a business to gain ideas, advice and inspiration The free to attend two-day event brings together a diverse mix of speakers including a bomb disposal expert and a former international poker player, and is being launched to inspire and support business talent and the UK small business community. With engaging keynotes from Karen Brady, Will King, and Mark Palmer, Global Brand Director of Green & Black's Organic. "Small businesses in the UK have been hit hard by the challenging economic climate so we wanted to set up an event where they could interact with some of the country's leading business people and get support and answers to the questions they have," said Brendan Flattery, Managing Director of Sage's Small Business Division. "But there are also a lot of skills that can be brought into business from other professions and the fantastic line up of speakers we have will encourage everyone to look at their company and their challenges in a different light." Sage World runs from 8th-9th September at the International Centre Telford. The event is open to all and free to attend, but registration is required as tickets are limited. For more information and to register please visit www.sageworld2010.com

Businesses investing in growth

editor — Fri, 03 Sep 2010 11:10:10 +0100

Demand from businesses wanting to get new innovation-led projects off the ground has almost doubled since last year, according to data collected by the Knowledge Transfer Partnerships (KTP) programme. The KTP programme received nearly twice the number of applications from businesses in the first part of this financial year compared with 2009/10. Funded by the Technology Strategy Board, KTP supports business innovation by facilitating collaborative partnerships with further and higher education institutions. "This news is extremely encouraging and demonstrates a clear desire from businesses to innovate and grow in the post-recession era," said Dr Debbie Buckley-Golder of KTP.

Tube strike talks fail

editor — Thu, 02 Sep 2010 15:56:04 +0100

Small and medium-sized business owners have been warned that talks aimed at averting a series of strikes on the London Underground have broken down. Industrial action will now definitely take place, with the first 24-hour strike planned for Monday and then three further three dates. The action is taking place as unions are fighting plans to cut 800 jobs. London Underground has said there will be no compulsory redundancies.

House prices decline 0.9%

editor — Thu, 02 Sep 2010 11:15:28 +0100

House prices declined for the second month in succession in August, according to the Nationwide building society. Prices dropped 0.9% last month following a 0.5% decline in July - the first time that prices had fallen for two consecutive months since February 2009. The building society estimates that the average price for a house in the UK is now just over £165,000. As more sellers have returned to the market, buyers have a greater selection of properties to choose from and more bargaining power with which to bid down asking prices," said Martin Gahbauer, Nationwide's chief economist. "Given that the price increases of the last year had gotten ahead of the recovery in the wider economy, the current correction is not an unhealthy development."

Staff reveal why they would quit

editor — Wed, 01 Sep 2010 12:21:08 +0100

Employees have revealed that the main reason why they would leave their job is due to poor communication with management, according to a survey by serviced office provider Regus. The second most popular reason was stress caused by overworking followed by poor promotion prospects. The survey also asked workers what companies could do to avoid losing their best talents. With the UK detaining the lead in the classification of countries with the fewest public holidays it is no surprise to find that, aside form a pay rise, an additional three days holiday is top of UK workers' wish-lists. "As workers pack up their swim-suits and towels after the holidays, they are more likely to dwell on the pros and cons of the job that is waiting for them at home. With reports indicating that one of the effects of the recovery is that many more employees have started quitting their jobs and are looking around for new ones businesses that are not providing all the trimmings may be heading for a brain-drain of their best talent," said Mark Dixon, CEO of Regus "Stress caused by overwork has escalated during the past recession with people working harder and longer. Medicash reports that one in ten Britons feels stressed even before starting the work day. Bonuses and job perks were cut back to weather the storm, but as the economy picks up employees will be flocking to businesses that promise them better conditions and not necessarily the biggest wage."

Poor IT equipment costing SMEs money

editor — Wed, 01 Sep 2010 11:14:37 +0100

Over a third of businesses are losing time and money from out-dated office practices and a struggle to handle and store electronic documents, according to research released today by 1&1 Internet Ltd. The study revealed that 37% of respondents lose money is lost from employees failing to share updated versions of documents and 53% of companies are held back by poor archiving of emails and documents. One third have document files saved on hardware that not all colleagues can access. The majority of UK business owners now value email to be an essential communication channel. However, the data shows many find their efficiency in handling emails is not optimal. Over half of small businesses surveyed do not currently archive old emails in a structured, easily-searchable form. A quarter of companies find their email accounts are regularly clogged with large attachments and face reduced performance when sending attachments around their team. "For many firms, out-dated or inefficient methods of handling and storing electronic materials can negatively impact performance, costs and so their bottom line," said Oliver Mauss, CEO 1&1 Internet Ltd. "Companies of all types can benefit from examining how their day-to-day use of office technology can be enhanced. There are now intuitive web-based options for document creation, collaboration and storage that can increase mobility, raise efficiencies and benefit the environment as well as the balance sheet."

Bosses struggling to reward staff

editor — Wed, 01 Sep 2010 10:53:41 +0100

The number of HR professionals that believe that businesses are poorly prepared to to manage the risks around how they reward their staff has grown in the past 12 months, according to a survey by the Chartered Institute of Personnel and Development (CIPD). The survey found that 15% of respondents think that their organisation is poorly prepared to deal with these risks, up from 9% in 2009. The findings reveal that concerns about the overall effectiveness of the pay and benefits package to attract and retain key talent has increased in significance over the past year, reflecting concerns that firms have not been competing effectively in the labour market as the economy has started to show signs of recovery "The past 12 months have been a turbulent time for many employers in terms of pay and benefits practice. They are fearful that the way that reward helps them attract, retain and motivate their employees is no longer appropriate," said Charles Cotton, performance and reward adviser at the CIPD.

Consumer confidence rises

editor — Tue, 31 Aug 2010 10:32:14 +0100

Consumer confidence in the UK economy improved in August for the first time in five months, according to the GfK NOP Consumer Confidence Index. Consumer confidence increased by four points in August - the first time since February that confidence has risen. August saw increases for confidence in consumers personal financial situation over the last 12 months and confidence in the general economy in the next 12 months. "Overall consumer confidence has been in constant decline for the last five months and a further fall would have made a double-dip recession seem a very real prospect. The government will undoubtedly read these figures with a great deal of relief," said Nick Moon, MD of GfK NOP Social Research. "The single biggest improvement has been in confidence in the economy over the next 12 months and this looks particularly encouraging on first sight. However, this gain merely reverses a similarly large drop in July and in reality confidence in the economy's future prospects remains below its June level and similar to May 2009 when we were still in the grips of a recession."

Retail sales increase again

editor — Thu, 26 Aug 2010 11:38:57 +0100

High street sales increased for the second month in succession, according to the latest CBI quarterly Distributive Trades Survey. The survey also revealed that retailers expect sales to continue growing in September and they are more optimistic about the general business situation in the coming three months. Over half of the retailers surveyed said that the volume of sales rose during the first two weeks in August while 18% said that it fell, giving a balance of +35%. This was similar to the pace of sales growth in July (+33%), and the fastest since April 2007. Looking to September, retailers expect sales growth to remain strong, with a balance of +39% expecting volumes to be higher than a year ago. "Better sales growth continued on the high street in early August, and retailers are upbeat about prospects in the coming three months," said Lai Wah Co, CBI Head of Economic Analysis. "The summer sales, some warmer weather and the school holidays will no doubt have helped, lifting sales of clothing and shoes and encouraging households to invest in some home improvements."

20% of workers face 90 minute commute

editor — Thu, 26 Aug 2010 09:35:22 +0100

Long-distance commuting is still the norm in spite of progress in flexible working practices with 20% of commuters travelling over 90 minutes every day, according to research by Regus. The average commute length in the UK is 25 minutes but one in ten commuters travels more than an hour to and from the place of work. Cars are by far the most popular form of commuter transport with 64% using this mode of transport compared to just 9% of workers that are close enough to their place of work to be able to cycle or walk. "As traffic congestion in cities increases it is disappointing to see that too many workers are still jamming the roads in the rush hour when they could be spending their time more enjoyably or more productively elsewhere," said Mark Dixon, CEO of Regus. "To tackle the damaging effects of commuting on staff health and morale, savvy businesses are introducing more flexibility in their working practices and are seeking workplace solutions that allow their staff to work closer to home. Remote working and flexi-time can provide a much needed break in the weekly commuting routine and also translate into office space and maintenance savings."

Why trust is vital in business

editor — Wed, 25 Aug 2010 14:14:40 +0100

Small and medium-sized business owners must create a level of trust with their employees in order to drive their businesses forward, claims leading entrepreneur Nick Ogden. A recent report by Ceridian revealed that the level of trust between business managers and staff has been seriously damaged by the difficult economic climate. The survey of over a 1,000 employees revealed that a quarter of respondents felt that the level of trust they have in their manager has deteriorated and 20% are less engaged in their job than previously. Ogden, the founder of WorldPay, which had a yearly turnover of $2bn and customers in over 70 countries, and Voice Commerce Group stresses the importance of creating an atmosphere of trust in the workplace. "Businesses survive only on two things: money that you have in the bank and your ability to use that money to pay the staff that you employ. I hope that my epitaph will be that I paid all my team on time, every time," he says. "Then you have confidence and trust within your business. Once you have that then the sky is the limit and people don't appreciate the intellectual value and the capital that the team creates."

Tube strike date announced

editor — Wed, 25 Aug 2010 11:08:08 +0100

Business owners in London should be aware that Tube workers are set to go on strike on midnight on the 7th of September. There will be a series of monthly walkouts as workers protest against job cuts. The Rail Maritime and Transport Union and secretary Bob Crow and Transport Salaried Staffs Association leader Gerry Doherty are due to meet today to finalise the timetable. The London Chamber of Commerce have said the industrial action could cost the capital £48m a day.

Small firms hit by late payments

editor — Tue, 24 Aug 2010 15:08:46 +0100

Small and medium-sized businesses are more likely to accept excuses from late paying customers now than before the recession, according to data collated by positivecollections.co.uk. The data reveals that 74% of small firms are accepting late payment excuses and 10% of companies avoid chasing debts in the first place as they are worried about losing future business or simply feel too uncomfortable about broaching the subject. Just under 20% of respondents stated that they believe that chasing debts would be too expensive due to legal fees. "Interestingly there seems to be a clear trend towards delayed payments which has been made more prevalent since the recession took hold. The fact that so many businesses in the UK have become accepting of this ‘late payment culture' is certainly a cause for concern as this has implications on the whole business community and economy," said David Green, CEO of positivecollections.co.uk.

Mortgage approvals decline in July

editor — Tue, 24 Aug 2010 13:24:10 +0100

The number of mortgage approvals for house purchases declined in July, according to figures released by the British Bankers' Association (BBA). There were 33,698 mortgages approved for house purchases in July, down by 877 from the previous month. This is the second month in succession that mortgage approvals have fallen. Gross mortgage lending by the major banks was slightly below the average of the last six months, at £8.4bn in July. "Gross mortgage lending remains stable, although demand for mortgages continues to be subdued. The greater availability of properties for sale and slowing house price growth have not yet fed through to increased house purchase approvals," said BBA statistics director David Dooks.