Business News Articles

Think tank: inflation could hit 8%
Interest rates may have to rise to 8% to combat rampant inflation, according to an influential think tank. The Policy Exchange believe that a double-dip recession is likely. This would be followed by an economic boom, which the government would need to respond to by printing mote money. This, coupled with the planned deep government spending cuts, would lead to the fastest economic growth r... more

Trust in businesses ‘deteriorating’
The level of trust between business managers and staff has been seriously damaged by the difficult economic climate, according to research by Ceridian. 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. "As a key factor in employee motivatio... more

Public sector borrowing falls
Public sector borrowing declined in July to £3.8bn, according to the Office for National Statistics (ONS). This figure is a vast improvement on the £6.1bn borrowed in July last year and brings the total so far this financial year to £44.9bn, below last year's £47.5bn. The forecast for borrowing for 2010-11 is £149bn, down from the £155bn borrowed in 2009-10. "While these figures show a... more

Retail sales rise 1.1%
Retail sales rose by 1.1% in July compared with June, according to Office for National Statistics (ONS). This is the highest month-on-month increase since February and significantly better than had been expected, with analysts only forecasting a rise of 0.4%. "The figures provide an early indication that economic growth will remain in positive territory during the third quarter of the year,"... more

UK car production declines 8.9%
Car production in the UK declined by 8.9% in July compared to the same month last year, according to Society of Motor Manufacturers and Traders (SMMT). Just over 98,000 cars were produced in July and the decline comes after eight successive months of production increases. The decline has been attributed to the ending of the UK's scrappage scheme, which gave consumers £2,000 off a new car if... more

Another union votes for Tube strikes
Business owners in London have been warned that members of a union have voted to go on strike over proposed job cuts on the London Underground. The Transport Salaried Staffs Association (TSSA) said its workers voted 3-1 in favour of industrial action. The strike is likely to go ahead next month, with September the 6th - when MPs return from Westminster - the most likely date. TSSA's leader G... more

No equal pay for '57 years'
Women managers in the UK saw their pay rise by 2.8% last year but will have to wait 57 years for their salaries to equal their male colleagues, according to a survey by the Chartered Management Institute (CMI). Despite the 2.8% pay rise - 0.5% higher then men - female managers earn on average £10,000 less than their male counterparts. At the current rate women managers will not be paid the ... more

Small firms neglecting their websites
Small and medium-sized business owners have been warned that they could be missing out on revenue by cutting corners with their websites. A survey of over 2,000 small companies by Streamline.net found that only 10% said they updated their website on a daily basis, while one in three admitted that updates were done ‘infrequently', implying that web investment is modest Many time-strapped bu... more

Business confidence rises
Small businesses in the UK believe that growing exports will help increase their sales and profits, according to a survey by Lloyds TSB. The survey revealed that business confidence is at its highest level since 2007, driven by the promise of growing exports as a result of a "rebound" in world demand for goods and a sustained fall in the pound. "Business confidence is on the turn. After such... more

Inflation declines to 3.1%
UK inflation has slowed to 3.1% from 3.2% in June, according to the Office for National Statistics (ONS). This is the third month in a row that prices increases have eased. However, the Consumer Price Index (CPI) is still well above the Bank of England's 2% target rate. The Retail Prices Index (RPI) slowed to 4.8% from 5% in June, The ONS said that the main factors behind the drop in the ... more