Inflation rises again
The latest Inflation figures for November showed rises for food, clothing and household goods all leading to an increase in CPI to 3.3% and RPI to 4.7%. At 3.3% CPI inflation stays well above the government target of 2%. A slight fall is expected in December as a result of retailers slashing prices in pre-Christmas sales before the VAT rise hits in January and pushes prices still further upwards.
Postage costs to rise
The Royal Mail has announced a rise in the cost of first class stamps to 46p and second class to 32p from next April. The cost of franked mail is also going up by 3p to 39p and 28p. Businesses who rely heavily on postage might want to take some time out before April to revise their postage policies and review alternatives.
CBI reports difficulties for SMEs who export
A CBI report has revealed the headaches faced by SMEs when it comes to exports. 48% of those asked have problems with currency fluctuations whilst 32% are challenged by red tape. If you are looking to export, start by talking to the Department of UK Trade and Investment which offers assistance to exporters. (http://www.ukti.gov.uk/export.html?guid=none ) Meanwhile the EU has proposed a single Europe market for payments within the Eurozone, making payments simpler and cheaper.
Localism Bill could change the face of planning
The proposed localism bill will put greater planning control in the hands of local authorities and communities. According to Regen this could feed through into energy management and affect the implementation of the Government’s renewables targets with some areas allowing massive expansion and others restricting infrastructure growth.
So, what do we have to look forward to?
Parliament breaks up on Tuesday 22nd until 10 January so the political arena will quieten down for the festive season. On Tuesday we see questions on Treasury matters in the main chamber whilst the select committee on science and technology sits on Monday.
Otherwise with schools on holiday and large areas of the country paralysed by snow and ice, business news becomes largely restricted to talk of late deliveries and missing staff. If you have an employee who has gone beyond the call of duty to serve your clients in these snowy conditions let us know.
And finally
As the cold weather bites and we look for ways to stay warm without facing exorbitant fuel bills, an aquarium in Finland has come up with a possible solution. They have harnessed their Christmas lights to the electric eel tank and report that at feeding time the lights shine brightly.
Our next news roundup will be in the New Year so from all at Wefinda may we wish you a peaceful Christmas and a prosperous New Year.
Sunday, 19 December 2010
Monday, 13 December 2010
Wonderful Wefinda weekly news (Week ended 10 December 2010)
Base Rate held at 0.5%
As expected the Bank of England Monetary Committee held base rates at 0.5% alongside the Asset Purchase programme remaining at £200 billion. The base rate is generally expected to remain unchanged until mid-2011 at least despite concerns over inflation levels.
Data Security takes top spot
A recent survey by Symantec found that 71% of UK businesses had suffered some form of data breach in the last year. Tie this up with the 87% of organisations who don’t encrypt data on portable devices such as USBs and it is a wonder that data theft is as low as it is. The Information Commissioner’s Office (www.ico.gov.uk) has a range of helpful advice for SMEs and it is well worth going through to avoid being fined for data breaches.
Businesses planning to expand
The latest CBI/KPMG London Business Survey says 68% of businesses are planning to expand over the next 12 months. With 45% planning to recruit as normal over the next 6 months, compared with 11% a year ago, the recovery looks to be starting to unlock recruitment freezes and reduce redundancy threats. However, there is still some caution around with 54% of firms being optimistic about their business futures.
Government plans to tighten regulation may cost SMEs
Two government plans have hit the headlines this week. The first considers making businesses provide security to cover PAYE and NI payments that they have deducted from employees salaries and not yet passed on to HMRC. The government says this will avoid firms going bust with the funds lost to the UK tax economy. Secondly, there are consultations on a General Anti-Avoidance Rule (GAAR) to stop firms coming up with complex financial arrangements to save tax. Both proposals seem sensible ways of collecting potentially missed revenue but implementation could cost SMEs dear.
So, what do we have to look forward to?
Whilst the usual select committee investigations continue, in the Main Chamber in Parliament there is not a lot to interest the SME. Most government departments are winding down before Christmas. HMRC are the exception with the change in VAT on 4th January prompting regular reminders to make sure your accounting software is ready for the change.
And finally
If you are taking on temporary employees this Christmas, make sure you give them a full safety briefing including explaining the difference between the shredder and other machines. That way you might save yourself the trouble faced by a Taiwanese man recently when he accidentally dropped a bag containing the equivalent of £4,200 into his shredding machine. Luckily for him patient forensic scientists managed to piece the notes back together in a week.
As expected the Bank of England Monetary Committee held base rates at 0.5% alongside the Asset Purchase programme remaining at £200 billion. The base rate is generally expected to remain unchanged until mid-2011 at least despite concerns over inflation levels.
Data Security takes top spot
A recent survey by Symantec found that 71% of UK businesses had suffered some form of data breach in the last year. Tie this up with the 87% of organisations who don’t encrypt data on portable devices such as USBs and it is a wonder that data theft is as low as it is. The Information Commissioner’s Office (www.ico.gov.uk) has a range of helpful advice for SMEs and it is well worth going through to avoid being fined for data breaches.
Businesses planning to expand
The latest CBI/KPMG London Business Survey says 68% of businesses are planning to expand over the next 12 months. With 45% planning to recruit as normal over the next 6 months, compared with 11% a year ago, the recovery looks to be starting to unlock recruitment freezes and reduce redundancy threats. However, there is still some caution around with 54% of firms being optimistic about their business futures.
Government plans to tighten regulation may cost SMEs
Two government plans have hit the headlines this week. The first considers making businesses provide security to cover PAYE and NI payments that they have deducted from employees salaries and not yet passed on to HMRC. The government says this will avoid firms going bust with the funds lost to the UK tax economy. Secondly, there are consultations on a General Anti-Avoidance Rule (GAAR) to stop firms coming up with complex financial arrangements to save tax. Both proposals seem sensible ways of collecting potentially missed revenue but implementation could cost SMEs dear.
So, what do we have to look forward to?
Whilst the usual select committee investigations continue, in the Main Chamber in Parliament there is not a lot to interest the SME. Most government departments are winding down before Christmas. HMRC are the exception with the change in VAT on 4th January prompting regular reminders to make sure your accounting software is ready for the change.
And finally
If you are taking on temporary employees this Christmas, make sure you give them a full safety briefing including explaining the difference between the shredder and other machines. That way you might save yourself the trouble faced by a Taiwanese man recently when he accidentally dropped a bag containing the equivalent of £4,200 into his shredding machine. Luckily for him patient forensic scientists managed to piece the notes back together in a week.
Monday, 6 December 2010
Wonderful Wefinda weekly news (Week ended 03 December 2010)
Chancellor’s Autumn Statement
The week started with the Office for Budget Responsibility upgrading its growth forecast for 2010 from 1.2% to 1.8% although forecasts for 2011 and 2012 have been lowered slightly to 2.1% and 2.6% respectively. This was followed by the Chancellor’s autumn statement, which for SMEs included the commitment to the reform of corporation tax, previously announced in the emergency budget.
Cost of the big freeze
Last year it was the postal strikes, this year the big freeze. Companies relying on pre-Christmas and pre-VAT-rise sales to carry them through are struggling to cope. A combination of flu, employees unable to get in to work through the snow and delays on major transport links are all combining to put pressure on coping with orders and delivery times. Best advice for consumers is to order extra early for Christmas. Advice for companies with backlogs is to come clean in advance and keep clients informed to minimise negative publicity.
On-line filing of self assessment tax returns
There are reports of a bug in the HMRC system which is giving error messages for anyone logging in for a second time to amend their tax returns. The system should allow for multiple entries up to the deadline at 31 January. All those intending to file on-line and who haven’t applied yet are recommended to start the process now before the post-Christmas rush.
Vince Cable calls for greater collaboration between banks and SMEs
Vince Cable, attending the first “Doing Business Together” seminar called on banks to break down communication barriers which can lead to lack of funding for SMEs. The event, which was designed to find ways of improving the provision of finance to SMEs, included discussions on ways in which better financial reporting could give lenders greater comfort when being asked for loans.
Lobbying against the EU proposals on Maternity leave
The Minister for Employment Relations, Edward Davey, will attend a meeting of EU ministers on 6th to lobby against the proposal to extend full paid maternity leave to 20 weeks. It has been estimated that these proposals would cost the UK at least £2billion per year and is a move that is opposed by businesses of all sizes.
So, what do we have to look forward to?
Parliament is fairly quiet for SMEs this week apart from the usual select committee meetings on competition in the banking sector, transport and assistance to industry. On Thursday we have the latest MPC decision on interest rates, expected by all economists to remain unchanged at 0.5%.
And finally
At Wefinda we’d be delighted to help you with your winter preparations, perhaps by helping you to find an IT expert to set your employees up to work from home, or to find an HR expert to advice on your liabilities to keep staff safe. With roads in gridlock and stranded motorists in danger emergency services have been stretched to the limit. Kent police were therefore not amused to receive one 999 call, reporting the theft of a snowman. Apparently the caller thought it to be an emergency as she’d used pound coins for eyes.
The week started with the Office for Budget Responsibility upgrading its growth forecast for 2010 from 1.2% to 1.8% although forecasts for 2011 and 2012 have been lowered slightly to 2.1% and 2.6% respectively. This was followed by the Chancellor’s autumn statement, which for SMEs included the commitment to the reform of corporation tax, previously announced in the emergency budget.
Cost of the big freeze
Last year it was the postal strikes, this year the big freeze. Companies relying on pre-Christmas and pre-VAT-rise sales to carry them through are struggling to cope. A combination of flu, employees unable to get in to work through the snow and delays on major transport links are all combining to put pressure on coping with orders and delivery times. Best advice for consumers is to order extra early for Christmas. Advice for companies with backlogs is to come clean in advance and keep clients informed to minimise negative publicity.
On-line filing of self assessment tax returns
There are reports of a bug in the HMRC system which is giving error messages for anyone logging in for a second time to amend their tax returns. The system should allow for multiple entries up to the deadline at 31 January. All those intending to file on-line and who haven’t applied yet are recommended to start the process now before the post-Christmas rush.
Vince Cable calls for greater collaboration between banks and SMEs
Vince Cable, attending the first “Doing Business Together” seminar called on banks to break down communication barriers which can lead to lack of funding for SMEs. The event, which was designed to find ways of improving the provision of finance to SMEs, included discussions on ways in which better financial reporting could give lenders greater comfort when being asked for loans.
Lobbying against the EU proposals on Maternity leave
The Minister for Employment Relations, Edward Davey, will attend a meeting of EU ministers on 6th to lobby against the proposal to extend full paid maternity leave to 20 weeks. It has been estimated that these proposals would cost the UK at least £2billion per year and is a move that is opposed by businesses of all sizes.
So, what do we have to look forward to?
Parliament is fairly quiet for SMEs this week apart from the usual select committee meetings on competition in the banking sector, transport and assistance to industry. On Thursday we have the latest MPC decision on interest rates, expected by all economists to remain unchanged at 0.5%.
And finally
At Wefinda we’d be delighted to help you with your winter preparations, perhaps by helping you to find an IT expert to set your employees up to work from home, or to find an HR expert to advice on your liabilities to keep staff safe. With roads in gridlock and stranded motorists in danger emergency services have been stretched to the limit. Kent police were therefore not amused to receive one 999 call, reporting the theft of a snowman. Apparently the caller thought it to be an emergency as she’d used pound coins for eyes.
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