wefinda weekly small business news (week ended 03 September 2010)

In banking news, HSBC has announced that it will consider relocating overseas if the UK government forces banks to split into smaller chunks. HSBC refused government assistance at the top of the banking crisis and has stayed relatively strong thanks partly to its concentration in the Asian Market. Meanwhile state owned RBS has announced a further 3,500 job cuts, mainly in back office functions such as call centres and computing.

The EU has just agreed powers which will let it monitor banks and investments in the EU and take action if it considers that risks are being taken which might upset financial stability. These powers will allow the EU to overrule national regulatory bodies.

The Environment agency has started a search for Environmental Pioneers. Categories include technology, waste reduction and energy savings. Online entries can be made at http://www.neilstewartassociates.com/sw118/awards.php with a deadline of 8 October.

The EDF energy announcement of price rises for 1.2million customers came as a shock to many in a time of falling energy wholesale prices. With four of the big six energy companies currently under investigation by Ofcom for potentially mis-selling contracts and two under investigation for varying prices depending on geographical area, this may be the time for all of us to review the energy tariff that we are on.

A report by the Centre for Economic and business research predicts that by 2015 unemployment will have risen to over 10% in over half of the UK’s regions. London, the South East, the South West and Northern Ireland will be spared once again bringing the north/south divide to the fore with the North West being worst off. Elsewhere, despite slowing house prices economists are generally confident that the chances of a double dip recession are fading fast.

So what do we have to look forward to? Parliament is back on 6 September so expect a flurry of stories relating to the economy and reforms. Of particular interest to SMEs is a debate in Westminster Hall on the 7th on the financing of small businesses and a select committee debate on the same day covering Local Enterprise Partnerships.

And finally, with the first of a series of strikes due to disrupt the London underground system on Monday and Tuesday, the French are looking at their tube system in a new light. Heat generated by trains and passengers is to be used to warm buildings in a public housing project in the city centre. Apparently each passenger generates around 100 watts which will be drawn off via heat exchangers and used to supply heating pipes. Let’s hope that there is a back up system or the inhabitants will freeze if the French underground workers follow ours out on strike.