Growth slumps to minus 0.5%
The office of National Statistics reported a fall in growth to minus 0.5% in the fourth quarter of 2010. Whilst the bad weather can account for some of the slump, it is estimated that figures would still have given a flat or 0% growth if the weather had been better. Bucking the trend was manufacturing with good results for the second quarter in a row alongside electricity and gas on the back of higher demand due to the weather.
SMEs rule out export even though it would help growth
According to a survey by Parcelforce, although 43% of non-exporting firms believed that exporting would boost their revenue streams, a staggering 83% of them had no plans to move into the export market. Whilst perceived barriers to trade, lack of knowledge and expense are blamed as the main reasons the reality can be far different. Firms are encouraged to download a free guide called Barriers to Export from the UK Trade & Investment website
Employment agencies – check your procedures
HMRC last week visited 52 employment agencies in Exeter and found the majority were breaking employment law. 102 individual breaches of employment law were found including at least nine cases of failing to pay the National Minimum wage.
Whilst good news seen for job seekers
The Reed index for January saw a record rise in the numbers of employers looking for new employees. Salaries remain flat but with marketing, digital and media leading the way it looks as though employers are starting to take up the sales and marketing cudgels to drive business forward.
And good news for Small businesses
The British Bankers Association estimates that a record number of new businesses were started in 2010. 570,000 businesses started up, and increase of 21,000 on the average for the previous 3 years. Although this was partly driven by the high levels of redundancies, it is one more statistic to prove that in this recovery small businesses are leading theway.
So, what do we have to look forward to?
In Parliament we have the second reading of the Consumer Credit bill on Friday. The usual select committees continue to look at competition & choice in the banking sector as well as rebalancing the economy.
Accountants go for the burn on Monday 31st with the last day of submitting on line self assessments to avoid fines.
And finally
Before you spend a lot of money on high tech solutions, ask yourself if there is a simpler way. A pair of Sheffield University students has captured images from the edge of space using a recorder attached to a helium filled balloon. Total cost of the project was just £350 and the images can be seen on YouTube.
Monday, 31 January 2011
Monday, 24 January 2011
Wonderful Wefinda weekly news (Week ended 21 January 2011)
Inflation up as expected
Largely as predicted the Consumer prices measure of inflation (CPI) rose to 3.7% in December. The rise was mostly driven by increased fuel & energy costs as well as food price increases. The more traditional measure of inflation, RPI, also rose to 4.4%. Bizarrely, the office of National Statistics commentated that inflation would have risen further had furniture stores followed their usual practice of putting prices up in December ahead of January sales.
Financial pressure increases for businesses
Insolvency specialists Begbies Traynor have reported that the number of businesses facing financial pressure rose to 147,836 in the fourth quarter of 2010. This represents a rise of 4% on the previous year. Within this total, Begbies have identified 3,018 companies as “critical”. The Begbies executive chairman commentated “For smaller businesses, we are entering the darkest hour before the dawn”
Bank talks on lending to SMEs stall
One of the reasons for the increased financial pressure experienced by businesses could be the continuing reluctance of the banking sector to lend to business. Talks with the government seem to have stalled with banks holding out for concessions on bonuses and disclosures countered by government threats to split banks up into high street banking and investment houses.
Ordinance Survey reflects changing face of high streets
The latest reports from Ordinance Survey give an interesting insight into the changing face of our high streets through the recession. In the period since October 2008, the number of estate agencies has fallen by 9.2% and employment agencies by 13.4%. These figures are eclipsed by building societies which now have 28.2% less offices in our towns. The only business bucking the trend seems to be betting offices which have shown a 5% increase.
SMEs would welcome tax simplification
With the deadline for submitting self assessment returns fast approaching a survey of SMEs shows that they could be willing to pay more tax, provided that the playing field was equal for all and that tax calculations were simplified. The forum for Private Business survey showed 57% of small businesses would pay more tax in return for less red tape as long as larger firms were subject to the same regulations.
So, what do we have to look forward to?
In Parliament on Tuesday the Treasury select committee start their review on the fundamental principles of tax policy. This is an area that Wefinda will be following with interest. Elsewhere, Business Innovation & Skills continue their look into rebalancing the economy, a tricky subject given the current gloomy economic climate.
The latest growth figures due out on Tuesday will make interesting reading. Many analysts are predicting growth to have slowed dramatically, leading to fears of a “stagflation” period of low growth and high inflation, last seen in the 1970s.
And finally
With regulations on business recycling ever increasing Wefinda is always on the look out for innovative ways of getting rid of unwanted packaging. Hats off therefore to the sculptor H A Schult who has built a 5 bed hotel in Madrid’s main square out of 12 tons of recycled rubbish. The hotel was fully booked for the 4 days it opened to paying guests.
Monday, 17 January 2011
Wonderful Wefinda weekly news (Week ended 14 January 2011)
Base rate kept on hold but mixed messages in the economy
The Bank of England’s monetary policy committee voted this week to keep base rate at 0.5%. However, with inflation at 3.3% and expected to rise in the months ahead some economists are calling for base rates to be increased soon. Whilst this might help savers and act as a slight curb on inflation, an interest rate rise could also slow the economy and send us back towards recession.
Floods lead to concern for commodity prices
The Office of National Statistics reports that UK manufacturers saw commodity prices such as oil and wheat rise by and average of 12.9% in 2010. Whilst much of this rise has yet to be passed on to consumers it is debatable how long manufacturers can continue to carry such a rise particularly in the face of renewed price rises expected this year. The recent floods in Sri Lanka saw up to a fifth of its rice production under threat and will lead to pressure on world markets. In Australia, the floods have shut down many coal mines which will could lead to coal and coke prices soaring worldwide.
Default retirement age to be scrapped
The Government has announced the scrapping of the default retirement age, meaning that firms will no longer be able to force someone to retire when they reach 65. The changes are being phased in this year. Employees who reach the age of 65 between 6 April and the end of September and who receive compulsory retirement notification before the 6 April can still be compulsorily retired. After 5 April, no further notifications can be issued and employers won’t be able to retire anyone else due to age.
Winter flu advice
The Health Protection agency and Chief Medical officer are warning people to continue to be vigilant when it comes to seasonal flu. They are emphasising the importance of basic precautions such as covering your face with a hand when coughing and washing hands regularly. Employers are also reminded that they have a duty of care to staff and should take measures to try and prevent the spread of flu within the workplace. This includes having a policy of encouraging sick employees to stay at home.
So, what do we have to look forward to?
In Parliament on Wednesday there is a 10 minute rule motion on postal marketing and consumer protection. The Treasury select committee on competition and choice in banking grinds on with further hearings on Tuesday and Thursday whilst on Wednesday it looks at the effectiveness of HMRC. Business Innovation & Skills look at rebalancing the economy.
On 18 January we get to find out the latest RPI & CPI figures which will make interesting reading, particularly as they will include the pre-Christmas sales as retailers rushed to beat the VAT rise.
And finally
At Wefinda we like to help you to track down services that will make your business life easier so this latest invention really caught our eye. An inventor in America has made his own iPhone beer cannon. He’s linked an iPhone app to his beer cooler and now at the touch of a button he can choose the beer he wants and the cooler will fire it towards him using a compressed air cannon. If it catches on it may make office cooler gossip a thing of the past.
The Bank of England’s monetary policy committee voted this week to keep base rate at 0.5%. However, with inflation at 3.3% and expected to rise in the months ahead some economists are calling for base rates to be increased soon. Whilst this might help savers and act as a slight curb on inflation, an interest rate rise could also slow the economy and send us back towards recession.
Floods lead to concern for commodity prices
The Office of National Statistics reports that UK manufacturers saw commodity prices such as oil and wheat rise by and average of 12.9% in 2010. Whilst much of this rise has yet to be passed on to consumers it is debatable how long manufacturers can continue to carry such a rise particularly in the face of renewed price rises expected this year. The recent floods in Sri Lanka saw up to a fifth of its rice production under threat and will lead to pressure on world markets. In Australia, the floods have shut down many coal mines which will could lead to coal and coke prices soaring worldwide.
Default retirement age to be scrapped
The Government has announced the scrapping of the default retirement age, meaning that firms will no longer be able to force someone to retire when they reach 65. The changes are being phased in this year. Employees who reach the age of 65 between 6 April and the end of September and who receive compulsory retirement notification before the 6 April can still be compulsorily retired. After 5 April, no further notifications can be issued and employers won’t be able to retire anyone else due to age.
Winter flu advice
The Health Protection agency and Chief Medical officer are warning people to continue to be vigilant when it comes to seasonal flu. They are emphasising the importance of basic precautions such as covering your face with a hand when coughing and washing hands regularly. Employers are also reminded that they have a duty of care to staff and should take measures to try and prevent the spread of flu within the workplace. This includes having a policy of encouraging sick employees to stay at home.
So, what do we have to look forward to?
In Parliament on Wednesday there is a 10 minute rule motion on postal marketing and consumer protection. The Treasury select committee on competition and choice in banking grinds on with further hearings on Tuesday and Thursday whilst on Wednesday it looks at the effectiveness of HMRC. Business Innovation & Skills look at rebalancing the economy.
On 18 January we get to find out the latest RPI & CPI figures which will make interesting reading, particularly as they will include the pre-Christmas sales as retailers rushed to beat the VAT rise.
And finally
At Wefinda we like to help you to track down services that will make your business life easier so this latest invention really caught our eye. An inventor in America has made his own iPhone beer cannon. He’s linked an iPhone app to his beer cooler and now at the touch of a button he can choose the beer he wants and the cooler will fire it towards him using a compressed air cannon. If it catches on it may make office cooler gossip a thing of the past.
Monday, 10 January 2011
Wonderful Wefinda weekly news (Week ended 07 January 2011)
UK Manufacturing on a high
According to Markit, UK manufacturing finished 2010 on a high with orders and exports charging forward and leading the British economy. By contrast the service and construction industries slipped back slightly in December on the back of bad weather and pre-Christmas slow down in general activity.
SMEs lag behind in pension stakes
According to research by the Association of Consulting Actuaries, two thirds of small businesses don’t offer their employees a pension scheme with most being put off by the cost. With all employers having to offer their staff a pension scheme by 2016 SMEs face a huge catch up exercise to comply with the new legislation. The new schemes will mean employees contributing at least 4% of their pay to the pension scheme with the employer adding 3% and the government a further 1%.
Changing your company car?
The energy saving trust is reminding businesses that they may qualify for a grant of up to £5,000 if they change their company cars for ultra low carbon (electric) cars. Electric cars also come with added benefits such as no vehicle excise duty payable, 100% capital write down, no fuel duty on the electricity used to charge them, no employers class 1A NI contributions. Even better, drivers won’t be subject to benefit in kind until 2015. More details available on www.energysavingtrust.org.uk
Watch out - Scam invoices are about
With the return to work after the long Christmas and New Year break combined with the postal backlog before Christmas due to the snow, accounts departments may feel overwhelmed with invoices to pay. Scammers have already hit one group of clients of “Community Care” asking for payment for advertisements. The general rule is, don’t pay invoices unless they have been signed off by the recipient of the products/services and be wary of requests to pay alternate bank accounts or post cheques to different addresses.
So, what do we have to look forward to?
In Parliament this week we have questions on Work & Pensions as well as Business, Innovation & Skills. The Treasury Select Committee continues its look at competition and choice in banking whilst the Work and Pensions committee looks at providers and contracting arrangements.
The Bank of England’s monetary policy committee meets on Wednesday and Thursday to discuss interest rates. With the comments coming out from various sources in December indicating that rates may well go up this year, this meeting is of interest to all.
And finally
We are all aware of the risks of eating at our desks, with crumbs in the keyboard and drinks spilt causing machines to crash. We should have sympathy then for the pilot of a United Airlines pilot whose coffee caused a more major problem. Landing on the radio, the spilt coffee caused a major distress alert to be automatically issued, meaning the plane from Chicago to Frankfurt had to divert to Toronto and adding a day to passengers' journeys.
According to Markit, UK manufacturing finished 2010 on a high with orders and exports charging forward and leading the British economy. By contrast the service and construction industries slipped back slightly in December on the back of bad weather and pre-Christmas slow down in general activity.
SMEs lag behind in pension stakes
According to research by the Association of Consulting Actuaries, two thirds of small businesses don’t offer their employees a pension scheme with most being put off by the cost. With all employers having to offer their staff a pension scheme by 2016 SMEs face a huge catch up exercise to comply with the new legislation. The new schemes will mean employees contributing at least 4% of their pay to the pension scheme with the employer adding 3% and the government a further 1%.
Changing your company car?
The energy saving trust is reminding businesses that they may qualify for a grant of up to £5,000 if they change their company cars for ultra low carbon (electric) cars. Electric cars also come with added benefits such as no vehicle excise duty payable, 100% capital write down, no fuel duty on the electricity used to charge them, no employers class 1A NI contributions. Even better, drivers won’t be subject to benefit in kind until 2015. More details available on www.energysavingtrust.org.uk
Watch out - Scam invoices are about
With the return to work after the long Christmas and New Year break combined with the postal backlog before Christmas due to the snow, accounts departments may feel overwhelmed with invoices to pay. Scammers have already hit one group of clients of “Community Care” asking for payment for advertisements. The general rule is, don’t pay invoices unless they have been signed off by the recipient of the products/services and be wary of requests to pay alternate bank accounts or post cheques to different addresses.
So, what do we have to look forward to?
In Parliament this week we have questions on Work & Pensions as well as Business, Innovation & Skills. The Treasury Select Committee continues its look at competition and choice in banking whilst the Work and Pensions committee looks at providers and contracting arrangements.
The Bank of England’s monetary policy committee meets on Wednesday and Thursday to discuss interest rates. With the comments coming out from various sources in December indicating that rates may well go up this year, this meeting is of interest to all.
And finally
We are all aware of the risks of eating at our desks, with crumbs in the keyboard and drinks spilt causing machines to crash. We should have sympathy then for the pilot of a United Airlines pilot whose coffee caused a more major problem. Landing on the radio, the spilt coffee caused a major distress alert to be automatically issued, meaning the plane from Chicago to Frankfurt had to divert to Toronto and adding a day to passengers' journeys.
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