Tag Archive: UK economy
May 10, 2013 3:45 pm |
The UK’s small businesses have been given a boost in support after new research says investors could lose out if they ignore small companies.
In a report released by FundExpert, investors have been urged to turn to the small business sector as they could prove a beacon of hope for the future of the UK’s economy.
Brian Dennehy of FundExpert says that the UK’s SMEs ‘represent a rich vein of UK potential in this time of economic gloom.’
The report found that after a growth of 22.6 per cent, the smaller companies sector was the most profitable of the Investment Managers Association in 2012, showing promise on the horizon for the small business sector.
Mr Dennehy added: ‘While easy money was made in 2012, the key to investment returns in 2013 will be finding the exciting British businesses that are growing profits despite the economic backdrop, and identifying the funds that invest in them.’
The sector has been given a further boost by recent good news from the economic sector according to Mike Prentis of BlackRock Small Companies Trust, ‘In the past, UK smaller companies have tended to do well coming of recession and going into periods of growth.’
March 4, 2013 5:27 pm |
Small businesses may be highlighted specifically in the next Budget, if the Federation of Small Businesses has its way.
In an effort to restore confidence to small businesses, and ensure the future becomes a little brighter, the FSB has spoken out today to say that there must be a Budget dedicated to the UK’s smaller firms.
The organisation has outlined recommendations for the Chancellor to look at in order to satisfy the needs of small businesses, in turn, creating new jobs and boosting confidence.
These recommendations include increasing National Insurance Contributions holiday to firms with less than four staff members to create over 40,000 new jobs, cancelling the planned fuel duty rise to initiate a review of fuel prices and motoring taxation, and extending the amount of money available through StartUp Loans for those struggling to finance the setup of their businesses.
The FSB are calling for more focus to be placed upon small businesses after the little growth of the UK’s economy in 2012.
John Walker, National Chairman of the FSB stated: ‘What we need is not more small-scale policies which tinker at the edges but measures that will have a tangible affect both immediately and in the long-term.’
The Budget will be announced on the 20th March 2013.
October 19, 2011 10:25 am |
Is your glass half full or half empty?
In the last 24 hours the news has been full of more economic doom and gloom. Inflation has hit a 3 year high at 5.2% and Argos, that stalwart of the high street, has reported dreadful financial results with its profits plummeting more than 90% in the last six months. As we’ve come to expect from the media, it sounds like everything is going from bad to worse for anyone in business, but it seems that many people, including elements of the press, share 08Direct’s view that to survive this downturn you have to be positive and not allow yourself to be talked into the depths of despair.
Take the recent Business of the Economy debate in Leeds which featured a panel of heavyweight business and economy experts including a former member of the Bank of England’s Monetary Policy Committee, the head of a leading accountancy group, a leading economist and a financial services expert.
According to leading regional news provider, The BusinessDesk.com , ‘it was refreshing to hear all four panellists being very bullish and honest about their thoughts for the prospects for both the general economy and the prospects for individual businesses – it makes a change’.
Clearly, everyone is getting fed up with constantly hearing the economy being talked down. TheBusinessDesk.com continued…During a discussion on confidence and the role the media has to play in the ongoing recovery, a special mention was given by chief economist Dennis Turner of Robert Peston, the BBC’s Business Editor. “We are emerging from a difficult period and it’s easy to take the economy down and Robert Peston is leading the charge,” said Turner. The murmurs of agreement from the audience said it all.
So, there you go. The experts are telling us that there are reasons to be cheerful and even the media is fed up of reporting negativity.
Let’s keep a positive outlook and raise our half full glasses to a brighter business future. Cheers!
October 4, 2011 9:15 am |
I have to confess that I didn’t really want to write this blog, because I fear that I am now contributing to the self-fulfilling prophecy that says we are talking ourselves back into recession again…
Continue Reading this Post →
October 3, 2011 10:48 am |
With the party conference season in full swing, the news has been full of conflicting views about how to get the UK’s faltering economy back on track.
As a business owner you know the pain of the times we are living in, so you may be pleased to hear that one organisation has decided to tell the Government exactly what it should do to boost the UK’s business prospects.
The Institute of Directors’ Route Back to Growth report outlines 15 proposals which it says “could make the UK one of the most competitive advanced economies in the world by 2020-25″.
The proposals include a second round of quantitative easing (whereby the Bank of England injects new money into the financial system to try to boost banks’ lending, and in turn the wider economy) and also cutting the top rate of income tax from 50% to 40%.
“I think there is a despair around Britain as a whole, and around British business, about the way the economy is trending,” new IoD director general, Simon Walker told the BBC.
Driving growth was urgent, he said, and although the government was on the right track, it ought to be going “faster and further”.
The IoD’s other proposals are:
- Cutting corporation tax to 15% by 2020. It currently stands at 26% and the government plans to reduce this to 23% by 2014
- Improve labour market flexibility
- Ring-fence transport, energy and IT and telecoms spending
- Ensuring that energy policy “does not sacrifice UK competitiveness for green credentials”
- Expand free school provision with profit incentives
- End the £100,000 personal allowance taxation “anomaly”
- Intensify competition policy, both domestically and within the European Union
- Carry out radical civil service reforms to promote deregulation
- Reduce political influence over infrastructure planning
- Greater decentralisation of public sector pay
- No watering down of public sector pension reforms
- Reduce public spending to 35% of GDP by 2020
- Repatriate key employer power rules from the EU
The IoD wants the Bank of England to spend an initial extra £50bn on quantitative easing (QE).
Minutes of the Bank’s last Monetary Policy Committee meeting indicated that the Bank is looking at the possibility of more QE.
The full version of the IoD’s Route Back to Growth Plan can be read here
What do you think of the IoD’s plans? Would they make make a difference to your business?
August 17, 2011 9:26 am |
Do you struggle to find staff for your business? If so, you’re not alone – according to a new report, small businesses want to grow but are struggling to find staff with the right skills.
With the economy in turmoil and unemployment at the highest level for years, you might have though that businesses would find it easy to recruit good staff at bargain prices. But a survey by the British Chambers of Commerce found that more than half want to increase their workforces but a similar number cannot find suitable candidates.
Micro businesses, those with fewer than 10 employees, generate around 20% of private sector turnover in the UK.
Adam Marshall, director of policy at the British Chambers of Commerce, said: “Despite high levels of unemployment, many micro firms are frustrated by the quality of applicants for vacant roles. There is a real mismatch between business needs and local skills supply, with many businesses unable to find school leavers or even graduates with the right mix of skills. At a time when we need to fight hard for every new private sector job, Britain needs a skills system that delivers what businesses require. A courageous government must recognise this and put more control in the hands of employers when it comes to training the nation.”
“Micro firms make up an important part of our economy, and the fact that over half want to increase staff numbers is good news. However, for those wanting to take on more staff, finding the right person for the job can prove difficult. And for too many firms, burdensome employment legislation deters them from taking on staff in the first place.
Less than a quarter of the businesses that took part in the survey expressed confidence in the skill level of school leavers with A-levels and only one third thought graduates would be up to the job.
How are you feeling about your business prospects as we emerge from the economic downturn? Please take 5 seconds (yes, that’s all it takes!) to gives us your views in our latest poll.