Newbusiness Latest News

BA staff to strike in March

admin — Fri, 12 Mar 2010 12:56:02 +0000

The union representing British Airways cabin crew has confirmed that its members will start a three-day strike from March 20th and a four-day strike from March 27th. Unite, BA's union, confirmed staff would not strike over Easter, but warned there could be further action after the 14th of April if a resolution had not been agreed. Consumer group Which? said passengers should be able to get their money back if they are directly affected by the strike, but only once their specific flight has been officially cancelled. BA has made extensive contingency plans in case of strike action and has already trained 1,000 staff to work as cabin crew to cover for any striking workers.

50% drop in house sales in UK

editor — Fri, 12 Mar 2010 09:50:36 +0000

The number of houses sold in the UK at the start of the year has declined to levels seen at the height of the recession, according to a survey by Acadametrics. The amount of transactions completed fell to 36,000 in January, a drop of 52% compared with the previous month, and then only crept up to an estimated 40,000 in February. This decline has been attributed to the traditional seasonal slowdown in house buying at the start ofthe year, the wintry weather and the end of stamp duty relief. "The start of 2010 was difficult for a number of reasons, and the question is whether this is a blip or the start of a new trend," said Peter Williams of Acadametrics. "Given the unusual factors influencing the start of 2010, there is considerable uncertainty which can only be answered in subsequent months."

Network Rail staff vote for strike action

admin — Thu, 11 Mar 2010 16:16:53 +0000

Network Rail maintenance workers have voted in favor of strike action, meaning that industrial action over Easter is a real possibility. The Rail Maritime and Transport (RMT) union said 65% of members voted and of those 77% backed industrial action. The ballot was called over plans to cut up to 1,500 maintenance jobs and change working practices. Network Rail has said that the job cuts are necessary as it attempts to modernize the country's railways. "The way the railway is maintained and operated needs to change. Work practices that date back to the steam age should no longer have a place on a modern railway. We cannot allow the unions to hold this country to ransom," said a spokesperson for Network Rail.

60% of small firms optimistic for 2010

admin — Thu, 11 Mar 2010 14:12:01 +0000

Over 60% of small and medium-sized business owners are optimistic about 2010, according to a survey by Cisco. The survey of over 1,000 SMEs found that 63% of small businesses surveyed are optimistic about 2010, with 77% expecting to see an upturn in the economy within the year. Over 50% of firms reported that they had taken steps to refocus their business on the customer to steer their business through the recession. However, 43% had taken no such action and are likely to be in danger of losing out to their more customer savvy counterparts. "What we see here is that rather than simply adapting to the pressures of the recession, a large number of our small businesses are taking matters into their own hands and making things better for themselves," said David Critchley, head of SME and Commercial for Cisco UK & Ireland. "Remodeling their business around the needs of their customers, embracing new technology, routes to market, and ways of communicating with their audiences, these customer kings are set to thrive in 2010."

Small firms owed £5bn

admin — Wed, 10 Mar 2010 15:28:02 +0000

Small and medium-sized businesses have been left £5bn out of pocket due to trading partners or customers going bust, according to data released by CreditPal. Over the last two years 43% of small firms in the UK have been left with an average of £7,500 owed to them. "The amount left owing to SMEs as a result of company liquidations is shocking and threatens the survival of some UK businesses. It is imperative that companies take every step to mitigate their exposure to the risk of defaulted payments, especially as the economy climbs out of recession when the need for cash is even greater," said Chris Poll, CEO of CreditPal. The total amount of company insolvencies was 19,077 in 2009, up from 15,535 in 2008.

Budget to be held on March 24th

admin — Wed, 10 Mar 2010 11:13:51 +0000

The government have confirmed that this year's Budget will be held on Wednesday the 24th of March. Prime Minister Gordon Brown, speaking at Canary Wharf, said the Budget would take place in "two weeks' time". Alistair Darling has said that he is "absolutely committed" to reducing the UK's deficit and that his Budget would show he was on course to cut public borrowing from its forecast peak of £178bn this year. Revised figures published in February showed the UK emerged more strongly from recession at the end of last year - with a 0.3% growth rather than 0.1% - than had previously been thought. However, many economists have warned that growth could falter again in the coming months. It is expected that the general election will be held on the 6th of May, six weeks after the Budget.

SMEs increase marketing to fight downturn

admin — Tue, 09 Mar 2010 16:57:55 +0000

Small businesses are trying to beat the economic downturn by increasing their sales and marketing strategies, according to a survey by the Forum of Private Business (FPB). After cutting operating costs to the bare minimum to survive the recession, many smaller firms are hiring sales staff, improving their websites and boosting marketing activities. The survey also revealed that 56% of those surveyed expect to increase their turnover in 2010 and 44% believe their business will grow. "These findings are quite encouraging and show there's a healthy amount of fighting spirit among smaller firms," said Thomas Parry, research manager at the FPB. “We appear to be seeing an upturn in confidence among SMEs and, by investing in sales and marketing strategies, small business owners are showing determination and entrepreneurial flair.”

Royal Mail reach settlement with staff

admin — Tue, 09 Mar 2010 11:13:24 +0000

The Royal Mail has announced that it has reached a settlement to end a long running dispute with its workers over pay and conditions. Small and medium-sized business owners will welcome the announcement, as it vastly reduces the chances of any strike action by postal workers in the immediate future. Many SMEs saw their businesses suffer towards the end of last year when the Communication Workers Union (CWU) organised several 48-hour strikes. The disruption caused led to an estimated backlog of at least 35 million items. Staff will receive a 6.9% pay rise over three years and see their hours cut by just one hour a week. In return the CWU, which represents 145,000 workers, has agreed to the use of new machinery and working patterns as the Royal Mail tries to modernise.

Number of new jobs available rises

admin — Tue, 09 Mar 2010 11:09:38 +0000

The number of new job opportunities increased by 1% in February compared to January, according to the Reed Job Index. The data also revealed that the average salary of a new employee increased by 5%. Despite the number of job opportunities increasing, the number of active job-seekers that have re-entered the market in 2010 means that the average number of applications for a job rose 50% compared to last year. "Employer demand is slowly but steadily returning to the jobs marketplace, as the number of new job opportunities on offer continue to rise. Salaries for new positions have started to increase for the first time since the recession began," said Martin Warnes, managing director of reed.co.uk. "Most striking is just how many more people are actively job-seeking now than at any time over the last couple of years. Pent up demand from people who felt trapped in their jobs throughout the recession seems to have been released with the first signs of returning confidence."

House price increase ‘to ease’

admin — Tue, 09 Mar 2010 10:50:54 +0000

Further rises in house prices may be hindered by increasing numbers of properties entering the market, according to data released by The Royal Institution of Chartered Surveyors (Rics). Rics says new instructions to sell outpaced inquiries from new buyers in February - the second month in a row that this has occurred. "There was a resumption of interest in the housing market following the fall that took place in January, which was due partly to the extreme weather conditions during that month and the reversion back to the previous stamp duty regime," said Jeremy Leaf of Rics. "The magnitude of the gains going forward is likely to continue to ease, reflecting the fact that new supply coming on to the market is starting to outstrip fresh demand."

Retail sales rise 2.2%

admin — Tue, 09 Mar 2010 09:56:30 +0000

Retail sales in the UK increased 2.2% in February after a tough January, according to figures released by the British Retail Consortium (BRC). Like-for-like sales were up 2.2% in February, following on from the 0.7% fall seen in January when snow put off shoppers. However, this rise has been greeted with cautious optimism as sales for last month have risen compared with very weak trading in February last year. "Despite appearances, these results are not that strong. The growth is compared with very weak figures a year ago when February saw the worst of last winter's weather and this February's performance was helped by sales postponed from January," said Stephen Robertson, director general of the BRC.

BCC: deficit must be cut

editor — Mon, 08 Mar 2010 12:25:28 +0000

The government must come up with a credible plan for cutting the budget deficit or risk the country's credit rating being damaged, according to the British Chambers of Commerce (BCC). However, the business body have warned against cutting the deficit too early, which could damage the UK's recovery. "Cutting the deficit too early would be a major mistake that could unleash a new recession. However, a credible plan for curbing the deficit is urgently needed," said David Kern, chief economist of the BCC. "Postponing the presentation of a plan would threaten our credit rating with damaging consequences. Any serious plan must spell out detailed measures with a clear timetable, and it must avoid damaging the economy's growth potential."

Tories pledge help for small firms

editor — Mon, 08 Mar 2010 11:30:08 +0000

The shadow business secretary, Ken Clarke, has promised that a Conservative government will help small and medium-sized businesses, "the bedrock of the economy." Mr Clarke said that Labour had failed to encourage private investment into new technologies and that he wanted to simplify regulation and employment law to create more business development opportunities. The shadow business secretary has also promised that a Conservative government would make lending to businesses a priority. "We have to create an economic climate in which British business can flourish. One of my high priorities is to create the right environment for SME businesses to thrive," said Mr Clarke.

Time constraints hindering recruitment

editor — Mon, 08 Mar 2010 10:36:12 +0000

Business owners say that they are spending too much time dealing with the recruitment process and agencies and are potentially missing out on good candidates as their process takes too long, according to data released by recruitment firm TalentPuzzle. Over 70% of the respondents admitted that because of lack of time they were limiting their recruitment pool and missing out on potentially good candidates. The survey also revealed that 86% of companies said that if they were able to more effectively source the best recruitment agencies it would result in less hassle and improve the quality of their hires. "Currently employers are caught in a catch 22 situation when it comes to recruitment. Employers recognise the importance of recruiting the right people, however many simply don't have the time to properly devote to recruitment," said Virginia Raemy, CEO of TalentPuzzle. "Ultimately, they can be dealing with dozens of agencies for a single advertised position, which means multiple contracts, multiple fees and multiple negotiations all of which can be very time-consuming."

270,000 civil servants begin strike

editor — Mon, 08 Mar 2010 09:54:44 +0000

Up to 270,000 civil servants have begun a 48-hour strike over redundancy pay, in the biggest unrest by the sector in more than two decades. Courts, jobcentres, driving tests, tax offices, border controls and passports are amongst some of the services that will be affected The strike, called by the Public and Commercial Services Union (PCS), will also see civilian staff working for the Met Police and security staff working in the House of Parliament taking strike action for the first time in over 25 years. PCS is taking industrial action as it claims members could lose a third of their entitlement over cuts under the civil service compensation scheme. Cabinet Office minister Tessa Jowell said the decision to strike was very disappointing, "especially given that less than one in five of their own members voted in favour of strike action, and that, overall, this figure represents only around 10% of the total civil service workforce."

FPB warns about cowboy rating surveyors

admin — Fri, 05 Mar 2010 12:39:32 +0000

Small business owners have been warned by the Forum of Private Business (FPB) about ‘cowboy' rating surveyors that are attempting to profiteer from the recent rates revaluation. The FPB made the warning after experiencing a surge in calls from members complaining about rogue operators. The problem has materialised due to the recent rates revaluation, which decided how much businesses would have to pay in rates over the next five years. Many smaller firms are unhappy about the Valuation Office Agency's assessment of their rateable value, which takes effect next month. This is especially the case as the assessments were carried out in April 2008 - just before property values and rents dropped sharply due to the credit crunch. "This is a problem that seems to come about every five years after the rates revaluations have been carried out," said Philip Moody of the FPB. "These cowboys spring up and start cold calling businesses offering to get them big reductions on their rates. However, in reality, it's often the case that any savings they make are minimal and are quickly dwarfed by the fees they charge."

SMEs without websites 'risk failure'

admin — Fri, 05 Mar 2010 11:17:50 +0000

Small businesses owners must be aware of a new survey by Tenon that has revealed that companies that do not trade online are 30% more likely to fail. Businesses have been told they must do more to provide customers with easy online access to products and services if they want to ensure long-term survival. Despite over 33 million consumers making an online purchase last year - an increase of 21% on 2008 - half of small businesses still do not have any kind of web presence. "Even a basic online service can make a considerable difference to businesses. Online operations are cost-efficient to run and can substantially increase a firm's revenue stream by expanding its customer base," said Carl Jackson, head of recovery at Tenon.

Interest rates held again at 0.5%

admin — Thu, 04 Mar 2010 12:13:21 +0000

The Bank of England has kept interest rates at the historic low of 0.5% for the 12th month in succession. This decision was widely expected, as it is feared that any rise in the cost of borrowing could damage the country's economic recovery. Despite the UK officially exiting recession with a 0.3% growth in the last quarter of 2009, some economists are warning that the recovery is still fragile. It was also announced that no more money will be pumped into the economy under its quantitative easing (QE) programme for the time being. The Bank halted QE last month, having spent £200bn. "It would be wrong to contemplate raising interest rates or scaling back the QE programme at present. Despite the upward revision to GDP in the fourth quarter of last year, the economy remains weak and fragile. Businesses are still under serious pressure and there is no room for complacency," said David Kern, chief economist at the British Chambers of Commerce.

Car sales rise 26%

admin — Thu, 04 Mar 2010 10:07:24 +0000

Car sales in the UK increased by 26% in February compared with the same month last year, according to data released by Society of Motor Manufacturers and Traders (SMMT). There were just over 68,000 new cars registered last month as car sales rose for the eighth month in succession. The SMMT have estimated that the government's car scrappage scheme - due to finish at the end of the month - accounted for 20% of new cars purchased last month. The scheme, which pays motorists £2,000 to trade in an old car for a new one, has boosted the industry since its introduction. "Scrappage has generated eight consecutive months of growth in the new car market and we expect its benefits to stretch beyond the scheme's closure later this month," said SMMT chief executive, Paul Everitt.

Small firms hit by government stealth tax

admin — Thu, 04 Mar 2010 09:53:07 +0000

The flat rate VAT charged by HMRC to small companies has risen in just under half of all business sectors, according to data released by the Federation of Small Businesses (FSB). Flat rate VAT is charged to the smallest businesses with a turnover of less than £150,000 and aims to minimise the red tape around administering VAT. “When VAT was lowered in December 2008 many rates stayed the same and some were reduced by up to 2.5%. What has become apparent is that after VAT was put back to 17.5% in January this year, nearly half of the flat rate schemes have seen the VAT level rise above the pre-decrease level,” said John Wright, National Chairman of FSB. “While a few sectors have seen a decrease, the majority of businesses will see their rates rise, which is unacceptable at a time when cash-flow is limited. The FSB believes that this is a stealth tax, which will affect a firm's overall profitability.”