Newbusiness Latest News

Small firms turn to bank loans

editor — Wed, 20 Aug 2008 09:27:49 +0100

Small businesses are turning to long-term bank lending in a bid to boost cashflow during the credit crunch, according to research by Barclays Commercial Bank. The bank’s study found that 16% of companies with a turnover of over £1m have taken out loans of £500,000 or more; an increase of 3% on the same period in 2007.

Economy ‘will pick up in 2009’

editor — Tue, 19 Aug 2008 09:45:44 +0100

The economic slowdown will reach its nadir at the end of 2008 and the start of 2009, according to the Institute of Chartered Accountants in England and Wales (ICAEW). According to the organisation business confidence is continuing to slump and the effects of this are now spreading from banking and the housing market into other sectors such as recruitment, consultancy and marketing.

Surge in rental supply and demand

editor — Tue, 19 Aug 2008 09:24:03 +0100

Supply and demand for rented properties have soared in the wake of the housing slowdown, figures from the Royal Institution of Chartered Surveyors (RICS) have revealed. The body saw the number of houses being rented out rise at the fastest level on record in July, as people who would otherwise have sold their property decided to become landlords instead.

Recession is ‘just months away’

editor — Mon, 18 Aug 2008 09:47:17 +0100

Recession in the UK is just months away and the next six to nine months will be “difficult and risky”, the British Chambers of Commerce has warned. The group has predicted either zero or slightly negative growth over the next three quarters but claims a major recession could still be avoided if the Bank of England reduces interest rates.

Cash tightest since early 1990s

editor — Mon, 18 Aug 2008 09:24:40 +0100

Cashflow levels are at their lowest level since the early 1990s and companies are dipping into their credit facilities at the fastest rate since 1992, according to funding provider Bridging Finance. According to statistics from the Bank of England, the amount of money companies had available in unused credit facilities fell by 13.3% in the year to June.

SMEs ignoring online marketing

editor — Fri, 15 Aug 2008 09:19:36 +0100

Small business still fail to understand the potential of online marketing despite Ofcom research revealing that online advertising overtook spend on mainstream TV in the UK last year. The research showed that online advertising rose by an average 70% in each of the last five years to create an industry worth £2.8bn, more than the total advertising revenue received by ITV1, Channel 4, S4C and Five in 2007.

Communications ‘getting cheaper’

editor — Thu, 14 Aug 2008 09:28:13 +0100

People spend more time using communications devices than they did five years ago but prices are falling, according to a study by Ofcom. The report found that the average person spends seven hours and nine minutes a day on the internet, using a mobile phone or watching television, with the latter accounting for three hours and 38 minutes.

One in four workers ‘unhappy’

editor — Thu, 14 Aug 2008 09:16:25 +0100

Over a quarter of office workers now describe themselves as unhappy in the wake of the economic downturn, according to a survey by recruitment consultancy Badenoch & Clark. The rate of 26% is up from 21% in April 2007 and has been attributed to employees being asked to take on extra responsibilities as companies look to keep staff levels to a minimum.

Inflation hits 11-year high

editor — Wed, 13 Aug 2008 09:13:04 +0100

UK inflation soared to 4.4% in January, taking it to the highest level since the current measure began in 1997. The rate of inflation rose by 0.6% in July alone, the biggest single increase over the same period.

Ryanair scraps third-party bookings

editor — Tue, 12 Aug 2008 09:55:00 +0100

Ryanair has announced plans to cancel thousands of bookings made through internet travel sites which it claims are illegal. The price comparison websites – known as screen-scrapers in the industry – allow customers to purchase flights without having to go direct to Ryanair, which the budget airline says runs counter to its terms of conditions and slows down its site for other customers.

Final salary pension deficit

editor — Tue, 12 Aug 2008 09:33:37 +0100

Final salary pension schemes have gone back into the red and now face a deficit of £24.1bn, according to figures released by the Pension Protection Fund. The data revealed a decline from a surplus of £8.3bn in June and from £83.3bn in July 2007.

Economy ‘worse than expected’

editor — Mon, 11 Aug 2008 09:47:12 +0100

The UK economy is in a worse state than many had expected, the Confederation of British Industry (CBI) has warned. The organisation admitted it – along with other forecasters – had been too optimistic about the economic situation, having originally predicted that the effects of the credit crunch would only last a year.

BCC: small firms need energy help

editor — Mon, 11 Aug 2008 09:36:44 +0100

Small businesses are more vulnerable than consumers to exploitation by energy firms and should receive helping in dealing with them, according to the British Chamber of Commerce (BCC). The group has also called on the energy regulator Ofgem to explain why businesses have to sign long-term deals with companies whereas consumers can switch after just 28 days.

Bosses ‘making unlawful checks’

editor — Fri, 08 Aug 2008 10:16:03 +0100

Company bosses in England and Wales are making unlawful checks on individuals’ backgrounds, according to the BBC’s Radio 4 programme. The programme claims companies are running Criminal Records Bureau (CRB) checks – designed for people applying to work with children or vulnerable adults – for jobs such as a train driver, gardener and bricklayer.

Interest rates held again

editor — Thu, 07 Aug 2008 13:15:11 +0100

The Bank of England has held interest rates at 5% despite growing evidence that the UK is heading for recession. Business groups the British Chambers of Commerce (BCC) and the British Retail Consortium had argued for a rate cut to boost high street spending but with inflation likely to top 4% when the next set of figures are released, the monetary policy committee (MPC) decided against a cut.

FSB calls for apprentice help

editor — Thu, 07 Aug 2008 09:32:13 +0100

The Federation of Small Businesses is calling for more help to assist small firms in taking on apprentices. The lobby group believes apprentices should be paid the same rate as 16-18-year-olds in ordinary employment and called for better support to ensure apprentices complete their course.

Pension deficit stands at £41bn

editor — Wed, 06 Aug 2008 09:33:08 +0100

The pension funds of the FTSE 100 companies currently have a deficit of £41bn, according to research by actuarial group Lane Clark & Peacock (LCP). The data represents the biggest annual swing in funding since 2002, with the same companies enjoying a £12bn surplus in July 2007.

Rise in companies going bankrupt

editor — Tue, 05 Aug 2008 10:24:51 +0100

The number of businesses going bust rose by 11.6% to 3,560 in the three months to the end of June, according to government figures. The total was up by 15% on the same period a year ago. Companies entering administration also increased from 859 to 938 in the last quarter, up 9.2% on the previous three months and 60% on the same period in 2007.

Helpline to hit rogue employers

editor — Tue, 05 Aug 2008 10:04:05 +0100

The government has launched a helpline to allow staff to report unscrupulous employers over illegal pay rates and mistreatment. There will also be a new Fair Employment Enforcement Board made up of trade unionists and business leaders that will aim to oversee the enforcement of the minimum wage, health and safety legislation and regulation of employment agencies and gangmasters.

Manufacturers expect a slowdown

editor — Mon, 04 Aug 2008 09:51:25 +0100

UK manufacturing will slow sharply over the next few months in the face of falling demand and rising material prices, according to a survey by the CBI and credit rating agency Experian. The survey revealed that average unit costs rose at the fastest pace since 1988 in the past three months, while manufacturers in seven regions – including London and the West Midlands – saw a decline in orders. Overall the total manufacturing output was unchanged.