Business News Articles

Bank of England cut interest rates to 1.0%
The Bank of England has cut interest rates from 1.5% to 1.0%, the fifth time since October that interest rates have been reduced In October 2008 the interest rate stood at 5% and the last rate cut in January brought the rate to 1.5% - the lowest in the Bank's 315-year history. Many business leaders, including the Federation of Small Businesses (FSB), had called for the rate to be maintained.... more

EU to examine rules regarding foreign employees
The European Union will examine rules that govern that free movement of EU workers, a ruling that could affect small business' employment policies. The European Commission has stated that it will, "study and develop any new measures necessary to face a changing world." The EU could implement new measures that would limit the number of cheap foreign staff that businesses can employ. Laws on t... more

Natwest and RBS make an extra £3bn available to small firms
Natwest and RBS is to make an additional £3bn worth of funding available to small and medium-sized firms in the UK. The money will be distributed through 12 regional Small Medium Enterprise regional funds, holding £250m each in England, Scotland, Wales and Northern Ireland. The extra cash is designed to provide business loans and overdrafts to SMEs and businesses can apply for the new fund... more

60% of small firms think interest rate should be held at 1.5%
Small firms do not want the Bank of England to make any further cuts to the interest rate, according to a survey of over 4,000 small businesses by the Federation of Small Businesses (FSB). The poll revealed that over 60% of small companies surveyed want the Bank of England to keep rates at 1.5%, and only a quarter think that the rate should be cut. "Small businesses are clearly worried that ... more

Half of small firm owners believe smartphones increase productivity
Small and medium-sized companies are increasingly using smartphones with mobile applications to increase their businesses' productivity, according to research from YouGov, commissioned by BlackBerry manufacturer Research In Motion (RIM). 46% of SME decision makers believe they can be more productive by using a smartphone, with 60% of young entrepreneurs claiming they save up to two hours pro... more

Aviva cut £1bn payout to policyholders
Aviva, the UK's biggest insurer, has backed out of a promise to give its 1m policyholders a £1bn payout, blaming the credit crisis and falling profits. The insurance company said in the summer that policyholders would receive an average of £1,000 each as part of a deal to free up surplus capital that has been built up over several decades. However, the company have said that in the current... more

Rate of pay falls at quickest level for a decade
Demand for staff is continuing to fall, and the rate of decline in pay is the fastest pace in over ten years, according to survey by consultants KPMG and the Recruitment and Employment Confederation (REC). Job opportunities last month reached their lowest levels since the survey began in 2007, and the rate of pay for temporary workers and those starting new jobs has plummeted. "These figures... more

Only 4% of small business owners predict closure in 2009
Small businesses in the UK are feeling positively about 2009, with only 4% of SMEs forecasting that their business will close, according to research by Close Brothers plc. The survey of over 500 small business owners revealed that 45% thought that their firm would stay the same size in 2009, and only 4% thought that their business would close. Regarding employment patterns, 67% expect to kee... more

Third phase of London’s Low Emission initiative suspended to help UK businesses
The third phase of London's Low Emission Zone initiative will be put on hold because of the financial costs involved to UK firms to ensure that all their vehicles were compliant with the new requirements. Many small businesses in London use company vehicles, which may have required modifications to meet the new criteria. Major Boris Johnston made the announcement today, in which he confirmed... more

Record number of self assessment tax returns completed online
A record 5.8m taxpayers completed their self-assessment returns online - meaning that almost two-thirds of those in the self-assessment bracket now use this method. HM Revenue & Customs (HMRC) has reported that the number of taxpayers usinf the online facility has increased by 53% from last year. "I am delighted that more and more people are recognising the benefits of filing their tax retu... more