Small Business News

FSB urges for delay in London vehicle pollution charges

Thu, 01 Feb 2007 17:51:01 GMT

Mayor of London Ken Livingstone's plans to introduce a Low Emission Zone (LEZ) in London has been criticised by the Federation of Small Businesses (FSB).

According to the group, the mooted plans would seriously affect hauliers and business vehicles for whom travel in the capital was essential.

Over 50 per cent are believed to travel through London at least once a year, which under the new laws would see heavy vehicle goods being charged between £100 and £200 depending upon the extent to which they polluted.

While appreciating the aim of reducing pollution within the capital, the FSB said that the proposed regulations were "in danger of catching many businesses by surprise".

Speculating that the move should be rolled out until July 2008, Steve Collie, national transport chairman for the FSB, also said that more effort should be made "to publicise the LEZ across the UK".

He added: "The mayor needs to listen to the employers that will be affected so that his proposal does not put jobs at risk."

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Small firms in intellectual property boost

Thu, 01 Feb 2007 17:41:01 GMT

Small firms are set to be offered audits by the government to help them "protect and promote innovation".

Announced today by the UK science and innovation minister Malcolm Wicks, up to 40 small firms will be offered the chance to experience a three-day audit being piloted in collaboration with four regional development agencies.

Mr Wicks lauded the development, suggesting that the protection of intellectual property rights among firms was crucial "in a world where the UK's economic competitiveness is increasingly driven by knowledge-based industries, innovation and creativity".

The development forms part of plans first recommended in the Gowers Review of Intellectual Property, published last December.

Speculating that 60 per cent of commercial innovations come from small businesses, Mike Cherry, financial affairs chairman for the Federation of Small Businesses (FSB), said the pilot "could go a long way towards bridging the gap that small businesses face when they have invented a new product".

"At present it is very costly and bureaucratic to protect that invention," he added.

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New mums keen on a start-up

Thu, 01 Feb 2007 17:36:01 GMT

New mothers are becoming a "powerhouse of creativity" in setting up new businesses, according to research by Tesco Business Credit Card.

The group's survey shows that women are most likely to start up a firm after the arrival of their first born.

Women were also found to be the proverbial early birds regarding a start-up, with females being more likely to set up a business between the age of 25 to 34.

Women also cited desired flexibility as the reason for commencing a business, whereas men were more likely to become self-employed because they wanted to earn more money.

Monica McCormack, spokesperson for Tesco Business Credit Card, said: "Our study suggests that mothers may be having a bigger impact on the dynamism of Britain's economy than anyone previously imagined.

"They appear to be a powerhouse of creativity, which is only to be encouraged."

However, the survey also said that despite the burgeoning influence of women on the business horizon, they were likely to earn less than men, with two thirds earning less than £50,000.

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Risk management important for firms

Wed, 31 Jan 2007 17:14:31 GMT

Firms of all sizes are being encouraged to more proactively assess risks to their firms during 2007.

The Financial Services Authority (FSA) has outlined the risk it believes firms will be subjected to in the coming months.

These include geopolitical risks, increasingly complex financial markets and the low volatility of asset prices.

Callum McCarthy, chairman of the FSA, said firms should consider risks they may be faced with and to plan accordingly.

"Stress testing and scenario analysis enable firms to assess and mitigate the risks that face them," he added.

Mr McCarthy also said that in the current climate, if problems were to occur they might be on a larger scale than previously.

"This has implications for both providers and consumers of financial services," he added.

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Businesses dealing with computer data overload

Wed, 31 Jan 2007 17:12:31 GMT

Businesses' IT systems are struggling under the weight of data being created in workplaces, new figures from PMP Research show.

According to a survey commissioned by the Evaluation Centre, over four fifths have reported how firms' storage requirements have increased significantly.

Consequently, many are now struggling to cope with an accumulation of data, with one in ten suggesting that their storage capacity requirements have increased by 150 and 200 per cent in the last two years.

Email usage has been found to be the most burdensome aspect of storage capacity, with the introduction of more desktop PCs and departmental systems also taking up space.

However, over two thirds of firms have said they are planning to rationalise the number of servers they have in order to improve their business continuity.

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Employee retention crucial for businesses in 2007

Wed, 31 Jan 2007 17:01:31 GMT

The biggest challenge faced by employers will be holding onto new staff in the coming year, research carried out by employment services group Manpower has suggested.

According to the group, almost a third of businesses believe that retaining staff would be their major challenge in 2007.

The survey of over 1,700 employers also found that almost three quarters of managers felt that keeping employees would be an HR priority over the course of the year.

Mark Cahill, managing director at Manpower UK, said: "Holding onto the best people is very much an issue for employers this year.

"And in a tight labour market, it has never been more important for employers to pay close attention to their retention policies," he added.

Over two thirds of employees also said that new legislation would be of great concern to them.

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Graduates not possessing sufficient workplace skills

Tue, 30 Jan 2007 18:19:30 GMT

Current graduates do not possess adequate credentials to thrive in the workplace, according to new research carried out by the Association of Graduate Recruiters (AGR).

The group's figures demonstrate that well over two-fifths of employers in the UK could not fill posts last year due to an insufficient skills base among graduates, representing an increase of ten per cent on 2005 figures.

Carl Gilleard, chief executive of the AGR, explained that the biggest shortfall in skills was in industries where specific skills were required.

Mr Gilleard also said that prospective employees were lacking in so-called soft skills "such as team-working, in addition to their academic achievements".

The AGR's twice-yearly Graduate Recruitment Survey showed that graduate vacancies are set to rise this year by over 15 per cent.

However, graduate salaries did not experience great buoyancy in rising by 2.1 per cent on last year to £23,431 its lowest level for six years.

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SMEs offered financial advice

Tue, 30 Jan 2007 18:03:30 GMT

Small firms can receive more comprehensive financial business advice as a result of a recently developed initiative by the Institute of Chartered Accountants in England and Wales (ICAEW).

Almost 2,000 ICAEW firms are already believed to have signed up to the SME Funding Adviser Scheme, designed to help them raise finances.

SMEs will be provided with a variety of advice, including information on issues such as bank loans and overdrafts as well as business plans for bank and equity finance.

Michael Izza, chief executive of the ICAEW, described how the scheme "aims to signpost more SMEs to the expertise a chartered accountant can provide".

Stephen Pegge, chairman of the small firms advisory panel of the BBA, also lauded the announcement.

"Productive working relationships with accountants with expertise in SME finance are essential to ensure firms prosper and grow and the scheme will make that easier for local bankers," he said.

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Health and safety policy vital for SMEs

Tue, 30 Jan 2007 17:40:30 GMT

Employers of all sizes are struggling to adjust to health and safety policy, the British Insurance Brokers' Association (Biba) has explained.

With businesses consisting of more than five employees all required to have a health and safety policy in place, Steve Foulsham, technical services officer at Biba, said he did not think enough firms had such a plan.

"I think we would advocate that they [firms] look at risk management and do what is necessary to make sure that their workplace is successful," he said.

The news follows yesterday's implementation of the NHS Injury Costs Recovery scheme which comes into force today, whereby the NHS will be able to recover costs from insurance companies for treating people who have been involved in accidents in the workplace.

Malcolm Tarling, spokesperson for the Association of British Insurers, described how the risk of being sued was greater than ever before.

"So there is now an added incentive to make sure you have a good risk management programme in place, and to make sure that workplaces are as safe as possible," he added.

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Online presence potentially lucrative for SMEs

Tue, 30 Jan 2007 12:00:30 GMT

Small businesses are being encouraged to develop their online web presence in order to increase the productivity of their firms.

The news follows research carried out by web hosting company Fasthosts which shows that many more businesses are opting to focus on an online arm, with numbers having increased by 50 per cent.

Stephen Holford, director of product marketing at the group, said that even if a firm's website only provided a minimal function, such as contact details, "it shouldn't become a neglected part of the business".

However, speculating how Christmas spending online had approximately been £5 billion, Mr Holford said that "updating an online presence could help you get a share of a lucrative online market".

Starting up a blog could also be a good way of establishing a web presence, despite a survey carried out by Fasthosts last year suggesting that just three per cent of SMEs had considered using one.

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Insurance premium rises could impact on SMEs

Mon, 29 Jan 2007 17:16:29 GMT

Moves to allow the NHS to recover the cost of treating patients who have been paid personal injury compensation would hit small businesses hard, the Federation of Small Businesses (FSB) has said.

According to Mary Broughton, health and safety chairman for the FSB, the move might adversely affect the high proportion of small businesses whose operations are "conscientious".

However, she added: "We are not here to defend businesses whose negligence causes accidents in the workplace."

Suggesting that small businesses generate over half of UK GDP, Ms Broughton said that small businesses which possessed good health and safety records "should be entitled to reduced premiums".

A survey carried out by the FSB found that a quarter of small businesses were struggling to gain Employers Liability Compulsory Insurance.

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Anti-bullying policies important for SMEs

Mon, 29 Jan 2007 16:54:29 GMT

Stringent anti-bullying policies may provide an important feature of employer stances in the workplace, Allianz Cornhill has commented.

According to the group, less that half of SMEs are believed to possess legal insurance, a predicament which could prove costly in the event of action being taken by an employee.

"Merely having anti-bullying policies in place will not ensure a harassment-free environment for staff," said David Vine, business development manager for the group.

A survey carried out by Amicus last September has also shown how workplace bullying can have adverse effects on productivity, with British businesses counting the cost of losses of more than £2 billion through sick pay, staff turnover and loss of production.

He added: "It is important for companies to have initiatives which are created and implemented by the workforce so that all employees realise their responsibilities should bullying come to their attention."

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Most workers 'lose enthusiasm' after 6 months

Fri, 26 Jan 2007 17:03:26 GMT

A new survey has suggested that workers' satisfaction with their jobs is based on the length of time they have been in their position.

According to the study by Sirota, satisfaction with employment declines from 69 per cent in the first year to 54 per cent between the second and fifth years for 25 to 34-year-olds and 53 per cent for those over 55.

The survey group claims that these findings debunk the myth that job satisfaction is related to age more than any other factor.

Douglas Klein, president of Sirota, said: "Older employees start new jobs with the same hopefulness as younger workers. They have the same fundamental needs as younger employees.

"Their level of enthusiasm depends on how well their needs are met as they move through the various stages of their employment life cycle."

Mr Klein explained that workforce enthusiasm is largely defined by company culture – how managers treat employees and their attitudes towards workers.

David Sirota, chairman of the survey company, pointed out that only 14 per cent of the organisations surveyed had workforces in which at least 75 per cent of employees were satisfied and less than ten per cent were dissatisfied.

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Fears over more red tape around non-standard workers

Fri, 26 Jan 2007 16:23:26 GMT

The Forum of Private Businesses (FPB) has expressed concern than British SMEs are to be burdened by more red tape regarding the issue of hiring non-standard workers.

According to the organisation, a paper has been released with the intention of instigating a debate on the treatment of contractors, freelancers, self-employed workers, agency workers and people on fixed-term contracts.

Nick Goulding, chief executive of the FPB, said that the paper has its origins with unions, who want to create more regulation.

However, freelancers, contractors and other such workers are not actually represented by unions, leading Mr Goulding to conclude that workforce groups are trying to increase regulation of non-standard employees in order to reduce competition for union members' jobs.

"A significant number of our members already think that red tape relating to employment is hindering their expansion," Mr Goulding stated.

"The last thing they need is for their hiring of contractors, agency workers and the like to be subject to extra rules as well."

The FPB chief advised that, rather than trying to hinder competition for jobs, unions should consider why employers find it so costly to hire standard workers.

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FPB: Cover notes need to be refined

Fri, 26 Jan 2007 16:22:26 GMT

The Forum of Private Businesses (FPB) has said that the use of sick notes to sign employees off work needs to be refined, as some SMEs are suffering as a result of them being utilised inefficiently.

According to the group, the information contained in the notes is often too vague for managers to determine whether a worker is justifiably absent.

The FPB's members have said that some letters simply cite complaints such as back pain – a generic description which does not inform the employer whether a worker is capable of sitting at a desk, for example.

According to Victoria Carson, FPB campaigns manager, some people are being signed off work for indistinct reasons but businesses are still having to pay them statutory sick pay.

This problem can often be particularly acute for smaller businesses, for financial reasons and also because individual workers account for a larger percentage of the overall workforce.

Ms Carson said: "Owner-managers always have to get on with it, knowing that the business does not earn profit if they do not work. So if they have a problem, they have to work out exactly what the problem stops them from doing and what they can still do.

"It would be useful if employees, and the doctors who sign their cover notes, would take the same responsibility."

The FPB official stressed that her organisation was not asking for genuinely sick people to work, but simply appealing for some "balance and common sense".

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Welsh SMEs to benefit from internet reform

Thu, 25 Jan 2007 17:09:25 GMT

Small businesses in Wales are expected to be among the main beneficiaries of a new scheme by BT – 21st Century Network (21CN).

John Thornhill, Welsh regional director of Openreach, BT's maintenance service, said that 21CN will open up a range of new technological opportunities for small businesses, icWales.co.uk reports.

"When the internet was enabled and people started to use it, it was the preserve of scientists and military people predominantly in the United States, but as people have worked out a million ways of using it it's been a great way of lowering costs and bringing people together," Mr Thornhill said.

The new broadband network, with its improved speed and flexibility, is expected to enable SMEs to run complex websites of the type currently only within reach of major firms, for only a small increase in costs.

BT is investing in its Openreach setup in Wales as it is predicting that there will be substantial demand for the new service there.

Monmouthshire has a broadband connection level of 42 per cent, one of the highest rates in the UK, which is seen as an indication that many business professionals are working from home in the area.

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Academy to promote British business opened

Thu, 25 Jan 2007 17:07:25 GMT

The government has opened a manufacturing skills academy, to support the work of large and small manufacturers across the country and bring the UK into closer competition with the likes of India and China.

Trade and industry secretary Alistair Darling opened the £14 million centre today and underlined the importance of skills development in the UK.

"Raising skills has to be a national mission," Mr Darling said. "That is why some of the best known manufacturers in this country are on board.

"They know what it takes to compete and win. They know 'good enough' doesn't work. That is why it is vital the training is designed by these winners for the winners of tomorrow."

The presence of the academy will have an effect for SMEs, as larger companies that have been accredited by the centre will be qualified to train staff at smaller firms.

According to the Department for Trade and Industry, the academy badge will be a "stamp of quality training for employers the length and breadth of the country".

Rolls Royce, Caterpillar, Ford, BAE Systems, Airbus UK, Corus and Nissan are all among the larger manufacturers that have given their backing to the scheme.

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Businesses must be thorough before signing contracts

Thu, 25 Jan 2007 17:05:25 GMT

Owners and managers of small businesses have been warned to read the small print and fully consider any consequences before putting pen to paper on a contract.

The caution from the Forum of Private Businesses (FPB) follows the experience of David Fay, owner of a heating supply company, who signed a contract with a cheque authorisation company only to be hit by annual charges he wasn't initially aware of.

Mr Fay explained that he was informed of the additional charges in a Christmas newsletter, which he barely had time to read, rather than in an official letter.

Nick Goulding, chief executive of the FPB, said that SMEs have to be exhaustive in the way they check any contracts before they consider signing.

"Stealth charges are an increasing worry for our members and we urge them to go through all documents with a fine-tooth comb before signing up to anything," Mr Goulding said.

"We realise this is a time-consuming process, but unfortunately it is the only way to be sure you will not fall victim."

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Half of all employees 'want more flexibility'

Wed, 24 Jan 2007 17:10:24 GMT

Half of all the workers in the UK – 48 per cent of women and 52 per cent of men – want to have more flexible working options in their job, a new study claims.

A massive amount of talent is being wasted across the workforce, according to the Equal Opportunities Commission (EOC), as 6.5 million people could reportedly be using their skills more fully if they were able to work more flexibly.

Many highly qualified workers are taking jobs below their skill level in order to escape the rigidity that is sometimes a part of more demanding jobs.

One in eight graduate women are working in low-level jobs and, despite continuing graduate skills shortages, the overall proportion of university leavers filling high-level jobs is falling, according to the EOC.

Jenny Watson, chair of the commission, said: "Work just isn't working for many people any longer. Far too many people burn out, trade down or drop out altogether. Millions of people are working below their skill level in order to have a life outside the office.

"Failing to rethink the way we've traditionally organised work is a chronic waste of talent and investment in education, at a time when Britain needs to invest heavily in skills to maintain its competitiveness globally."

Miles Templeman, director general of the Institute of Directors, said that new work models such as flexible hours and homeworking could provide answers to these issues.

"Employers large and small must continue to innovate and equip themselves to face future challenges," he added.

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Bank not expected to "over-react" to growth figures

Wed, 24 Jan 2007 15:45:24 GMT

Minutes from the monetary policy committee's (MPC) last rate-setting meeting and comments made by the governor of the Bank of England have given the British Chambers of Commerce (BCC) hope that there will not be an overreaction to the latest growth figures.

Official statistics have revealed that quarterly GDP growth accelerated to 0.8 per cent in Q4 2006 and annual rates of increase rose to three per cent.

The BCC said that these strong figures will "inevitably reinforce pressure" on the MPC to implement another interest rate rise.

However, the news that the committee's vote to raise rates this month was a close one, with five members electing for an increase and four voting against, has given the BCC hope that further hikes are not an immediate certainty.

David Kern, economic adviser to the BCC, commented: "We also welcome the governor's promise that 'I have not abandoned my ambition to be boring'. But it is important that his words are backed by deeds.

"British business is committed to stability and low inflation. We understand that risks have increased and further action may be needed. But to avoid causing unnecessary long-term damage to the economy, it is important not to over-react until trends in wage settlements become clearer."

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BCC welcomes red tape complaints portal

Wed, 24 Jan 2007 15:37:24 GMT

The British Chambers of Commerce (BCC) has welcomed the re-launch of the Better Regulation Committee's online red tape complaints portal.

David Frost, director general of the BCC, said: "We welcome any tool which enables British businesses to directly air their views on the impact that regulation has on their business.

"Regulation is of concern to many businesses, particularly our members who, as SMEs, find that the increasing regulatory burden distracts them from running their business."

Red tape is one of the biggest obstacles to growth that British businesses face today, according to the BCC.

The organisation published a 'burden barometer' in 2006, showing that the cumulative cost of new regulation for UK firms since 1998 is £50.27 billion.

Mr Frost said that delivery on an agenda to cut the burden of red tape on SMEs is "critically important" if competitiveness in the British business sector is to be maintained.

The BCC pledged to continue campaigning for regulatory simplification, through the publication of informative documents on the issue and also through its own red tape portal.

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Small businesses 'see Cameron as red tape saviour'

Tue, 23 Jan 2007 17:05:23 GMT

Nearly 40 per cent of accountants believe that the greatest barrier to SMEs' growth is red tape and see Conservative leader David Cameron as the best person to solve the problem, according to a new survey.

The study, carried out by small business bookkeeping software company KashFlow, also found that 70 per cent of accountants see Mr Cameron as a better option than Gordon Brown on the red tape issue.

Despite the government's pledge to cut the legislative burden on small firms, the poll also revealed that business owners are still struggling under the weight of their administrative duties.

Duane Jackson, managing director of KashFlow, said: "The survey we commissioned has revealed that accountants believe small business owners have a really tough time of it trying to keep up with every change in legislation and red tape."

One of the main problems facing SMEs was found to be remaining in compliance with the laws governing business in the UK.

The Federation of Small Businesses released figures today revealing that calls to its legal helpline increased in 2006, with enquiries about age discrimination laws rising by a massive 664 per cent.

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SMEs warned of possible effects of rate hikes

Tue, 23 Jan 2007 13:03:23 GMT

Small businesses could be among the worst affected if the monetary policy committee (MPC) continues to increase interest rates, as both suppliers and customers will tread more cautiously, it has been claimed.

According to online credit checking firm e-bcm, the rate rises could foster a heightened financial awareness among consumers, putting a strain on the relationship between business and customer.

The current trend of rising interest rates has led to fears that 2007 could see more small business closures than had originally been predicted.

Dennis Scott, commercial director of e-bcm, said: "As customers rein in their borrowing small firms will find it harder to collect payments and, if they run an overdraft or loan, as most small businesses do, they will find it increasingly difficult to finance that debt."

Mr Scott pointed out that one more increase in the base interest rate is expected, but said that any upward movement beyond that could lead to "further casualties" in the business world.

Opposition to more rate hikes has been expressed by the British Chambers of Commerce recently, with economic adviser David Kern urging the MPC to "make monetary policy boring again".

"Shock tactics are unwelcome and potentially harmful," Mr Kern added. "British business requires a stable and predictable interest rate environment."

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FSB reports growing concern over employment laws

Tue, 23 Jan 2007 13:00:23 GMT

Concern among SMEs over the complexity of employment laws is steadily growing, according to figures released by the Federation of Small Businesses (FSB).

The organisation has announced increases in the number of calls made to its legal helpline in 2006, with queries about age discrimination seeing the largest rise of 664 per cent.

Growth of 439 per cent took place in concerns over information and consultation, while retirement (88 per cent) and the part-time workforce (68 per cent) were also topics of mounting unease.

Pensions enquiries increased by 23 per cent last year, while queries about discrimination on grounds of religion or sexual orientation rose by 92 and 56 per cent respectively.

Alan Tyrrell, FSB employment chairman, said: "Employment law is vital to ensure that both employers and employees know where they stand and to protect both parties as they carry out their work.

"However, the complexity of these laws is placing an intolerable burden on smaller firms who are not big enough to have their own HR department. The average small business owner spends 28 hours per month filling in forms for government."

Mr Tyrrell called for red tape to be reduced for small businesses, allowing them to increase activity and take on more workers. SMEs already employ some 12 million people – over half the private sector workforce.

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BCC questions methods behind Lyons review

Mon, 22 Jan 2007 16:13:22 GMT

The British Chambers of Commerce (BCC) has contributed to the debate on the ongoing Lyons review of local government reform, questioning some of the thinking behind the inquiry.

Firstly, the BCC questioned why Sir Michael Lyons was given only six weeks to consult businesses and other stakeholders.

While he stressed that Sir Michael understood the importance of economic development, David Frost, director general of the BCC, said that this period of time "risks making a mockery of the idea of consultation".

Mr Frost also referred to the proposals made by the Eddington, Barker and Leitch reviews, claiming that they are often on a national level and therefore do not seem to fit in with a strategy of more local devolution.

He continued: "Furthermore, there is still no connected strategic spending plan which brings together transport, planning and skills and this will be crucial if the reforms are to be successful.

"Funding remains the million dollar question for all of these reviews and, not least, the Lyons inquiry itself."

The BCC also echoed the sentiments of the Federation of Small Businesses on the importance of economic development, claiming that this is not always a priority for local authorities.

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Businesses advised on avoiding cold weather troubles

Mon, 22 Jan 2007 11:53:22 GMT

Following forecasts from the Met Office that many areas of the UK are to be hit by snow and cold weather this week, commercial insurer Royal & SunAlliance (R&SA) has advised businesses on how to avoid the conditions impacting their bottom lines.

Business owners should be aware of the location of their outdoor and indoor stopcocks in order to deal with burst pipes as a result of low temperatures.

Heating should be left on at least four degrees centigrade when a building is empty, according to R&SA – the minimum recommended temperature, even if all pipework is fully insulated.

As little crucial equipment as possible should be left in the basement area of a business building in order to reduce the impact of a flood.

Graham Heale, underwriting director at R&SA, said: "Freezing temperatures create numerous potential hazards for businesses. Pipes burst even in the best-run commercial properties and can cause untold damage to equipment. This could have serious knock-on effects to the viability of the business.

"It is vital that businesses put in place a framework to deal with the unexpected and I would urge businesses to take precautions to avoid disaster."

Firms are also urged to have a business continuity plan – a strategy to get their enterprise re-established as quickly as possible following a serious disruption – in place should serious problems occur.

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FSB stresses importance of economic growth

Mon, 22 Jan 2007 11:50:22 GMT

The Federation of Small Businesses (FSB) has offered its contribution to the Lyons review on local government reform, stressing that economic growth should be the "overriding priority" in the consideration of making changes at local level.

An opposition to restoring the setting of business rates to local government level was reiterated by the FSB, which also disagreed with the prospect of introducing road pricing before a "robust" transport system is in place.

On skills provision, the federation said that the needs of businesses needed to be the top priority, with local authorities providing the funding and employers outlining the direction that skills training should adopt.

The FSB welcomed proposals to streamline the planning process for major infrastructure projects and to reduce form-filling for small firms making minor planning applications.

Roger Culcheth, FSB local government spokesman, said: "It is vital that all levels of government put economic growth first. The wealth that businesses create can contribute to solutions to our problems via private sector innovation and public sector tax collection.

He added: "Often local solutions are the best ones and business has a key role in shaping the future of this country at the local level. Local authorities should make sure that they are fully aware of the needs and views of employers."

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BCC urges against interest rate rise

Fri, 19 Jan 2007 10:56:19 GMT

The Bank of England is being urged to refrain from raising interest rates in the near future, the British Chambers of Commerce (BCC) has suggested.

According to the group, although January's surprise quarter point hike was necessary, there is not sufficient evidence to suggest that a further rise is required.

David Kern, economic adviser to the British Chambers of Commerce (BCC), said that "high expectation" within the manufacturing and service industry would "heighten the clamour" for an interest rate rise.

However, he said that the "available evidence does not support further tightening at the moment".

The BCC said that the bank's monetary policy committee (MPC) should only be tempted towards a rate rise if there is "firm evidence that private sector wage pressures are accelerating".

Suggesting that unexpected movements were "unwelcome and potentially harmful", he urged the MPC to make monetary policy "boring" again.

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Employment numbers on the up

Fri, 19 Jan 2007 09:14:19 GMT

More people are in work and unemployment has dropped, new figures released by the government yesterday have revealed.

According to the Department for Work and Pensions (DWP), 274,000 people found jobs in 2006, as well as 14,000 in the last quarter.

The labour market was also believed to be in a solid position, with 29 million people being in work between September and November 2006, one of the highest figures on record.

Jim Murphy, minister of state for employment and welfare reform, said the figures provided "welcome news".

He added: "The UK already has the highest employment rate of the G8, but we are determined to reach our long-term aim of an 80 per cent employment rate and to break the cycle of poverty and benefit dependency."

Figures released by the Office of National Statistics this week have also shown that average pay rose by 3.7 per cent in the year to November 2006.

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FSB calls for tax return

Fri, 19 Jan 2007 09:11:19 GMT

HM Revenue & Customs (HMRC) has been urged to prepare before the Jan 31st deadline for returning self-assessment tax return forms.

The Federation of Small Businesses (FSB) is urging HMRC to make sure it is fully prepared for the inevitable last minute rush, with adequate staff and resources being needed.

The group also said that businesses needed to be given reassurance that their tax returns had been logged, even if a firm had submitted their form online.

Simon Sweetman, tax spokesperson for the FSB, said: "The self-assessment form is just one of the many important tasks involved in running a business and there can be many reasons, both personal and businesses-related, why the self-employed and owners of small businesses need right up to January 31st to complete it."

He said that it was possible that businesses could be provided with "the peace of mind of a guarantee" in the form of a receipt.

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Police reductions anger small businesses

Thu, 18 Jan 2007 17:11:18 GMT

The government's decision to reduce police numbers to 6,000 by 2011 in Northern Ireland has caused consternation among members of the Federation of Small Businesses (FSB).

According to the group, its Lifting the Barriers to Growth survey shows that levels of business crime in Northern Ireland are worse than anywhere else in the UK, with two thirds of businesses having experienced crime in the last year.

"The business community is already angry about the current high level of crime and reducing the numbers of police officers will make an unacceptable situation even worse," said Bertie Carson, FSB policing & justice spokesperson.

FSB figures suggest that Northern Irish businesses were already frustrated with the police, with one in three firms suggesting it was a "waste of time even reporting crime to the police as it achieved very little".

A survey carried out by the FSB in 2005 showed that the most frequent crimes against small businesses were vandalism, vehicle damage and burglary.

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Firms seeking out rural locations

Thu, 18 Jan 2007 17:01:18 GMT

Many employers and employees working in an urban environment aspire to relocate to a rural environment, new research has shown.

According to research carried out by Cornwall Pure Business, half of managers working in the city dream of escaping to their own rural idyll.

Some 15 per cent of managers would also like to move their business to a less urban location, the group's research shows.

The most favoured area for a prospective relocation is the south-west, followed by Cornwall and Devon.

Destinations which were not so highly sought after for a business relocation included the Yorkshire Dales, Wales and the Norfolk Broads.

Sir John Banham, chairman of Johnson Matthey, lauds the benefits of developing a business in a rural environment.

"Economically, the business landscape of the UK is changing," he said.

"With the growth of a more knowledge-based economy and developments in technology many businesses are no longer limited geographically by infrastructure and convenience to customers," he added.

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January 22nd 'worst day' for small businesses

Thu, 18 Jan 2007 16:58:18 GMT

Small businesses are set to experience their worst day of the year on January 22nd, according to Lloyds TSB Insurance.

Typically, January is a tough month for small retailers following a boost in sales and productivity in the period leading up to Christmas, with larger-than-average debt, bad weather and a lack of motivation contributing to the malaise.

Consequently, with January 22nd occurring exactly one month after Christmas day, academics have pinpointed it as the worst day of the year.

However, Lloyds TSB believes that businesses can offset the problems associated with the first month of the year by putting in place simple measures.

Garry Hurry, senior marketing manager at Lloyds TSB Insurance, said: "No matter how well a business is run, disaster can strike at any time, putting any business at risk."

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FSB sets agenda for EU

Wed, 17 Jan 2007 13:00:17 GMT

The incumbent German EU presidency has been set an agenda of five points to consider before handing over the reins to Portugal in July.

Measures recommended by the Federation of Small Businesses (FSB) include reducing the bureaucratic burden on small businesses by a quarter, setting deadlines for the simplification of existing laws and the annulment of all laws not passed before the end of the term.

The FSB is also pressing for an independent review panel to be created to oversee regulatory impact assessments and to make the implementation of EU rules transparent.

Speculating that the German presidency had "got its priorities wrong", Tina Sommer, European Affairs chairman of the FSB, said that the presidency needed to commit to addressing people's rather than politicians concerns.

He said that the FSB's call to action "should be a starting point for the EU in the next six months".

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Vigilance required on CVs for employers

Wed, 17 Jan 2007 12:54:17 GMT

Employers may feel more inclined to undertake the interviewing process following a new survey which suggests prospective employees may be embellishing details.

Research carried out by BackgroundChecking.com on behalf of Experian shows that more than four fifths of people believe that being 'economical with the truth' in a CV is commonplace.

Despite this, more than nine in ten people agree that accuracy is a crucial detail in any CV.

Steve Bailey, managing director of BackgroundChecking.com, said: "Many candidates and fraudsters rely on the fact that prospective employers do not check the information on, or omitted from, their CVs and applications, or discussed in their interview."

He said that the results "show the need for people and businesses to think about checking CVs and applications for any untruths before they find out the hard way".

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Small firms optimistic about 2007

Wed, 17 Jan 2007 09:31:17 GMT

Small businesses are set for an encouraging 2007 with "rising economic and business confidence levels", the latest Bank of Scotland survey has suggested.

Its economic confidence survey shows that over four fifths of entrepreneurs expect their business performance to improve in the coming year.

The proportion of businesses who believe their firm will be in a worse state in 2007 than the last quarter has also dropped from 17 per cent to 13 per cent.

Scottish firms are most confident about their own future performance, while almost half of small firms in Yorkshire and Humberside are not confident of their chances in the New Year.

Describing small businesses in the UK as providing the "backbone" of the British economy, Kevin Gillett, head of Bank of Scotland Business Banking, said that small business managers were concerned about the impact of over burdensome legislation.

"However their own faith in their entrepreneurial abilities wins out," he said.

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BCC: Businesses need stable interest rates

Tue, 16 Jan 2007 17:18:16 GMT

British businesses need a "stable and predictable interest rate environment" in which to flourish, the British Chambers of Commerce (BCC) has explained.

The call follows the Bank of England monetary policy committee's (MPC) decision to raise interest rates by a quarter point to 5.25 per cent in January, a move which took many market commentators by surprise.

David Kern, economic adviser to the BCC, said that the possible move of CPI inflation to or above three per cent tomorrow would indicate why the MPC decided to act pre-emptively.

"However, even if one acknowledges that last week's MPC decision was on balance necessary, shock tactics are unwelcome and potentially harmful," he said.

Explaining that it was crucial that "monetary overkill" was avoided, Mr Kern stated: "In a highly competitive environment firms may not be able to raise prices even if they wish to do so."

The BCC is calling for the Bank of England to refrain from "further tightening" unless there is "firm evidence of stronger wage pressures".

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Online gambling costing employers

Tue, 16 Jan 2007 16:06:16 GMT

UK businesses might be encouraged to more proactively deter their staff from gambling online, with a new survey showing that over £300 million is wasted due to lost productivity.

Research carried out by business consultancy Morse shows that almost a third of employees have admitted to gambling online using their website.

The group's research also shows that younger employees between the ages of 25 and 34 are more likely to engage in such activities, with almost half being within this age range.

The National Lottery remains the most popular website among employees, with over two thirds placing a bet at work.

However, Morse's figures show that over a quarter of employees are not up-to-date with their firm's internet policies.

"By using a combination of education and putting controls in place to monitor and enforce internet policies, and through logging internet activity, businesses can ensure they are protected with a minimum of fuss," said Morse's consultant Philip Wick.

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Employment schemes for disabled labelled inefficient

Tue, 16 Jan 2007 15:29:16 GMT

Too few disabled people are being helped to get back into work, the Liberal Democrat's disability chairman has explained.

Danny Alexander's comments follow a report carried out by the public accounts committee (PAC) which contends that it is difficult to ascertain whether the mooted £320 million spent by the Department of Work and Pensions (DWP) is effective.

Edward Leigh, chairman of the PAC, described the data about government spending on initiatives for disabled people as "patchy and unreliable".

Mr Leigh also said that the quality of service provided by the DWP around the country was variable.

Mr Alexander said: "Too few people are being helped, and too little emphasis is put on keeping people in work when they become disabled," he said.

The PAC report also says that of the 2.7 million people on incapacity benefits, just 160,000 people received help from government schemes.

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SMEs enjoying web presence

Mon, 15 Jan 2007 17:14:15 GMT

SMEs are increasingly making use of a web presence to drive forward their business, new research has suggested.

A study commissioned by Actinic, a group which supports SME retailers, shows that the proportion of firms using a website increased by 30 per cent between 2005 and 2006, with one in ten now enjoying a web presence.

According to Actinic's figures, nine in ten SMEs that have a website for their business are securing profit, with two fifths of firms who have dabbled in e-commerce saying it was an easier process than they had initially thought.

Small firms are on average paying £1,585 to start up a website, a cost they had anticipated to be £2,416.

Chris Barling, chief executive of the group, said: "Online stores are rarely unprofitable, because there is low growth in the sector and overheads are far lower than their offline counterparts."

He added: "More consumers are letting their fingers do the talking, but still too few smaller businesses are grasping the opportunity."

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BCC welcomes school leaving age rise proposals

Mon, 15 Jan 2007 14:32:15 GMT

Government plans to raise the compulsory school leaving age to 18 have been praised by the British Chambers of Commerce (BCC).

David Frost, director of the group, said he supported the move, which is being considered by education secretary Alan Johnson.

"It is imperative that we increase skills levels in our society if we are to remain a competitive economy in the face of continuing globalisation," he said.

However, he also said it was "absolutely critical" that the proposals were implemented in the right manner.

"Large numbers of young people currently opt out of education or training at 16 – we do not want to see employers disadvantaged and disrupted by having to take on young people who simply don't want to be in the workplace."

The Times newspaper reports that chancellor Gordon Brown, who is likely to succeed Tony Blair as leader of the Labour party later in the year, backs the proposals.

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Firms optimistic over 2007 prospects

Mon, 15 Jan 2007 09:25:15 GMT

UK businesses are more optimistic about their future prospects than at any other time in the last decade, new figures have shown.

One of the main contributing reasons for the apparent buoyancy has been a surge in sales, with more than half of firms reporting an increase in sales in the second half of 2006.

Almost half of firms also reported an increase in orders compared to just over a third 12 months ago.

Moving into 2007, 47 per cent of firms predict they will achieve higher sales, up from just over a quarter a year ago.

Diana Brightmore-Armour, chief executive of corporate banking and co-head of corporate markets at Lloyds TSB, explained how UK firms had managed to weather the storm of a "difficult trading environment" over the last two years.

Commenting on the future for business over the next 12 months, she said: "By raising their prices companies have taken full advantage of stronger UK and global growth last year and we think 2007 will be another good one for UK company profits."

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Manufacturing industry consolidating

Mon, 15 Jan 2007 08:16:15 GMT

Manufacturing output increases of 0.3 per cent between October and November 2006 indicate that industry may be "consolidating", the British Chambers of Commerce (BCC) has suggested.

The group's comments follow the release of figures by the Office of National Statistics (ONS) last week which also showed that manufacturing output in the quarter between September and October increased by 2.4 per cent compared to the same period the previous year.

Commenting on the publication by the ONS, David Kern, economic adviser of the BCC, said that there are "realistic hopes that, if the economic environment is supportive, the manufacturing recovery would gradually gather momentum".

Mr Kern also said that industry had displayed "commendable resilience" in dealing with a number of interest rate increases.

"But if further increases in rates prove unavoidable in the next few months, the sector may require supportive action in other critical areas, such as exports and a lighter regulatory burden," he added.

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Legislation not panacea for all workplace problems

Fri, 12 Jan 2007 16:46:12 GMT

Building good employment standards and principles is more likely to bring justice into the workplaces than further regulation, a new study has explained.

In a paper published today, Paul Edwards, from the Industrial Relations Unit at Warwick Business School, says employers tend to ignore or comply minimally with new regulations.

"Too often the assumption has been that if you legislate for something then it happens automatically," Mr Edwards says, despite admitting that the Labour party's reforms since 1997 had brought about new rights with regard to pay, work hours and consultation.

Pointing out workplace conditions, he said: "There is now increasing evidence that the amount of control people have over their work is falling, they work harder, are subject to closer monitoring, and are discontented with both pay and job influence."

Mr Edwards advised that a series of bottom-up initiatives should be established in firms, a "community of interest" which would establish the principles of good work.

This would include more pro-active advice for firms, support for local initiatives, while sector forums were also called to be put in place.

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CBI sets agenda for tackling climate change

Fri, 12 Jan 2007 11:23:12 GMT

The Confederation of British Industry's (CBI's) first climate change taskforce has met in London yesterday.

The remit of the taskforce, which incorporates some of the biggest names in British business, is to set an agenda on how UK businesses of all sizes tackle climate change.

Ben Verwaayen, BT chief executive and chairman of the taskforce, described how the business community had to take "urgent, concrete and measurable" steps to tackle the problem.

"The challenge for the task force is to identify solutions which address the issues of climate change without harming the competitiveness of British businesses," he said.

The taskforce will be compiling a report later in the year outlining its recommendations for action.

Earlier this year, the government-backed Stern review suggested that global economies would be set to suffer if climate change was not addressed with urgency.

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TUC welcomes extra holiday allowance

Fri, 12 Jan 2007 11:20:12 GMT

The TUC has welcomed yesterday's news that UK workers will see their annual holiday increase to 5.6 weeks ever year.

The Working Time Regulation of 1998 had stipulated a mandatory four week holiday.

However, the TUC says that certain unscrupulous employees have denied their employees entitlement to full leave.

General secretary of the TUC, Brendan Barber, said the decision was a "victory for union campaigning, which has long pushed for UK leave to be increased so that it is more in line with the holidays enjoyed with other workers".

He added: "Some employers will moan at having to give their staff additional holiday, but smart bosses already give their employees more than the minimum entitlement."

Mr Barber did express his disappointment that the measures would not be introduced by the government until next year.

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Small business IT budgets to grow

Thu, 11 Jan 2007 17:27:11 GMT

Small businesses are set to increase their budgets on IT spending in the coming 12 months, new research has shown.

According to a report carried out by AMR Research, IT spending in small businesses in the UK is expected to increase by 6.4 per cent in the coming 12 months.

Nigel Montgomery, co-author of the group's report, said that the desire to increase computer security and comply with corporate legislative change was the reason behind the prospective increase in budgets.

"They are playing catch-up and have finally realised the spreadsheets they have been using can't cope with the complex legislation they now have to comply with," he told Computing UK.

However, Mr Montgomery also added that with the majority of small managers using their IT budget to increase security, there would be little chance for innovation to occur.

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BCC disappointed by interest rate rise

Thu, 11 Jan 2007 17:21:11 GMT

The British Chambers of Commerce (BCC) has expressed its disappointment at the Bank of England's decision to increase interest rates by a quarter point to 5.25 per cent today.

David Kern, economic adviser to the BCC, said he appreciated that the bank's monetary policy committee was responding to the threat of inflationary pressure but believes that it "could have waited until trends in the labour market became clearer".

He said that the MPC should have taken into account more fully "the clear risk that growth may slow sharply in both the US and the Eurozone".

Mr Kern also said: "If firm evidence emerges that there is no acceleration in wage settlements, the MPC should consider an early reversal of today's increase in interest rates."

Commenting on today's decision, the Bank of England said that it had been necessary to bring consumer price index inflation back to its medium-term target, with inflation having been recorded at 2.7 per cent in November 2006.

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National road pricing schemes would affect majority of firms

Wed, 10 Jan 2007 16:42:10 GMT

Almost nine in ten businesses have said they would be affected 'to some extent' by the introduction of a national road pricing scheme or congestion charge pilot.

A UK business barometer carried out by the Institute for Enterprise and Innovation at The University of Nottingham suggests that over half of firms say they would be affected 'to a high or relatively high extent'.

A sister survey, the UK business adviser barometer, has also shown that almost two thirds of advisers predicted that their clients' businesses would be negatively impacted upon by the introduction of pricing schemes.

Earlier last month, the Federation of Small Businesses (FSB) also expressed its dissatisfaction with the road pricing scheme as proposed in the Eddington Review.

Steve Collie, national transport chairman of the FSB, said: "Tackling congestion would be welcome but charging them for this access would hit firms hard – costing the government more revenue in lost taxes than they would raise through road charging."

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BCC and FSB laud minimum wage crack-down

Wed, 10 Jan 2007 16:34:10 GMT

The British Chambers of Commerce (BCC) and the Federation of Small Businesses (FSB) have lauded moves by the government to crack-down on employers not paying the minimum wage.

David Frost, director general of the BCC, has given his full backing to the drive, emphasising the inequality that undercutting firms create.

"Firms who flout minimum wage regulations are providing unfair competition for the vast majority of employers who do not break the law and consequently have to charge higher rates," he said.

Alan Tyrell, the FSB's employment chairman, also backed the campaign to end illegal pay deals.

However, he also drew attention to the year-on-year increases in minimum wages which are "beginning to hit businesses hard".

He added: "While we welcome any move to eradicate unlawful and unfair competition, this must be done without unnecessarily disadvantaging the vast majority of law-abiding small businesses."

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Employers need to tackle workplace stress

Wed, 10 Jan 2007 16:29:10 GMT

Many companies are afraid of tackling the issue of stress in the workplace; a predicament which may be affecting the performance of their firms, new research has suggested.

According to the director of the Stress Management Society, Neil Shah, admitting to the issue of stress in the workplace would be akin to opening a "Pandora's box".

"It's not the right attitude to have because it's obviously just ignoring the fact that there is an issue of stress. There is a legal requirement to risk assess for stress but most companies are loath to get involved in such issues," Mr Shah said.

However, Mr Shah also identified how the many firms which had started to address issues of stress, were "experiencing the benefits" after a year or two.

The comments follow research published by the American Heart Association which showed that workplace stress increases blood pressure and puts strain on the heart.

Studies of workers in a high stress environment have indicated that they may benefit from training to manage it.

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Assessing business practices important for small business

Tue, 09 Jan 2007 17:38:09 GMT

Small businesses are being encouraged to assess their methods during 2007 in order to become more productive.

According to the national chairman of the FPB, Len Collinson, although allocating time to assess the big picture of one's business is complex, it will ultimately be rewarding.

The Forum of Private Business (FPB) has consequently created a series of step-by-step guides to help managers with their everyday running of their firm.

Mr Collinson said: "There are many daily distractions, from the necessities of the workplace to unwelcome government red tape.

"However, time spent looking at the longer term can be most beneficial," he added.

The FPB cited workplace necessities as well alongside government red tape as being some of the biggest burdens on small business managers.

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Fixed-mobile convergence increases in popularity

Tue, 09 Jan 2007 17:34:09 GMT

Businesses in the UK are coming alive to the benefits of fixed-mobile convergence (FMC), new research has suggested.

According to a study carried out by Vanson Bourne on behalf of Martin Dawes systems, almost one in ten firms are already using the technology, with another seven per cent expected to adopt it in the coming year.

Over half of firms (54 per cent) are also displaying an awareness of the technology.

Some three quarters of respondents regarded potential savings as an attractive reason to effect FMC, while almost two thirds also said it would increase productivity.

Tom Hodgson, sales and marketing director at Martin Dawes systems, said that 2006 was the year in which FMC technology became a "real contender".

He added: "While it is still early days for this concept, our survey suggests FMC is very much on the business agenda".

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Government to crack down on wage cheats

Tue, 09 Jan 2007 17:32:09 GMT

The government is set to crack down on employers who do not pay their staff the minimum wage by introducing a £200 fine for every worker underpaid.

Announcing the measures today, Trade and Industry secretary Alistair Darling said that HM Revenue & Customs would react to employees who made a complaint about their wages and investigate the matter.

Employers who did not respond to the investigation if it was found to be true would have seven days to repay the outstanding wages or face a fine of up to £5,000.

Paymaster general Dawn Primarolo said the new measures would "put further pressure on those employers who continue to flout the law."

Mr Darling added: "The vast majority of employers need to know that they are operating on a level playing field. These measures will help deliver that."

As of October last year, the national minimum wage for workers aged 22 and over was raised from £5.35 to £5.05.

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Friendships vital at work

Mon, 08 Jan 2007 17:48:08 GMT

Developing close friendships at work may be one of the key ways to attain contentment in the workplace, a new survey has claimed.

A study carried out by HR consultants Chiumento has revealed that almost three quarters of respondents in a poll say that getting on with their colleagues is the primary reason for hauling themselves out of bed and into work each day.

The 1,000 adults who were involved in the study said that issues relating to pay were the topics most likely to make them unhappy.

Sarah Chiumento, chief executive of the consultancy, explained that although some firms might question the importance of workplace happiness, contentment in the workplace was likely to lead to greater productivity among employees.

"Simple ways to boost happiness include treating staff fairly, ensuring communication is good and a fostering a positive atmosphere in the workplace," she added.

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Working from home championed

Mon, 08 Jan 2007 17:45:08 GMT

Working from home is being championed as a means of increasing happiness, according to new research.

A study carried out by family-orientated website Funkyangel.co.uk claims that four fifths of people working from home claim to be in good physical condition

Half of the respondents also said they claimed to be happy or very happy, with the group comparing the statistic to a BBC programme, The Happiness Formula, which showed that just over a third of people on average said they were happy.

Some 54 per cent also said they were financially comfortable or managing, the group said.

Claire Burdett, the website's founder, said that working from home affords "control and flexibility" and said this would allow employees to spend more quality time with their family.

Ms Burdett also said that "being able to choose your own routine and hours in your own home means you eat better and more healthily, and be more active as part of your daily routine, if you choose to be".

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BCC calls for interest rate "stability"

Mon, 08 Jan 2007 17:33:08 GMT

Interest rates should not be raised to 5.25 per cent in the near future, the British Chambers of Commerce (BCC) has suggested.

The BCC's comments follow an alleged "clamour" for interest rates to be raised to 5.25 per cent at the Bank of England monetary policy committee's rate-setting meeting in February.

However, despite suggesting that recent economic figures have been "positive", David Kern, economic adviser to the BCC, believes that "sustaining and consolidating the UK recovery requires a period of interest rate stability".

Mr Kern explained that both the Chartered Institute of Purchasing and Supply (CIPS) activity index for December and the final GDP figures for the last quarter of 2006 were strong.

However, he identified that the CIPS' manufacturing index for December was weak, which, combined with "mixed" inflation figures, "do not yet signal that higher rates are unavoidable".

Mr Kern concluded: "Given the global uncertainties, we strongly believe the MPC should not consider a change in interest rates until trends in labour costs become clearer."

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Economic migration not increasing unemployment

Fri, 05 Jan 2007 17:48:05 GMT

Increasing levels of unemployment have not been exacerbated by an influx of economic migrants to the UK from the EU and the Middle East.

Commenting on the release of the Bank of England report, a member of the bank's monetary policy committee, David Blanchflower, said that "greater slack" in the labour market had contributed to the trend.

Recently campaign groups have also suggested that economic migration had resulted in workers being paid lower wages as a result.

However, the Bank of England's report claims that migration had actually raised the supply of potential to the economy and reduced overall unemployment.

The study also says that "this recent immigration appears to have continued to reduce inflationary pressure".

Earlier this week, Romania and Bulgaria both joined the EU.

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Train fare rises to hit small business?

Fri, 05 Jan 2007 17:46:05 GMT

National rail fare increases may have a "significant" impact upon small firms, the Forum of Private Business (FPB) has claimed.

The news follows the government's decision to hike unregulated fares by an average of 4.3 per cent this week.

Virgin West Coast trains is raising its fares by 6.6 per cent, Midland Mainline by 5.9 per cent and Central Trains by 5.7 per cent, among others.

A spokesperson for the FSB told the Business Link for London that the move was "obviously going to have a cost impact".

Describing the potential effect on small businesses, the spokesperson added: "For those business people who use the trains to get around for meetings and conferences there will also be a financial impact."

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Almost half of CVs contain errors

Fri, 05 Jan 2007 17:37:05 GMT

Jobseekers looking for work in an SME need to pay greater attention to making sure their CVs are error-free.

The news follows a report carried out by the Recruitment & Employment Confederation which shows that almost half of employers say they receive CVs containing grammatical errors.

Young people between the ages of 21 and 25 are believed to be some of the most error-prone of all the respondents surveyed, while more than two thirds of recruiters also said men were more likely to make mistakes than women.

Marci Roberts, chief executive for the group, said that error-prone candidates may miss out on a job for which they might have had the requisite skills.

"The findings show that jobseekers should first pay more attention to getting the basics right," Ms Roberts said.

She said that steps could be taken to improve CVs, such as receiving guidance from recruitment professionals.

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Employers urged to reward overworking staff

Thu, 04 Jan 2007 17:32:04 GMT

Employers are being advised to indulge their allegedly overworked and underpaid staff.

The TUC's call is in anticipation of the Work Your Proper Hours Day on February 23rd, where employers will be reminded to allow their workers to take a proper lunch break and leave on time.

Buying lunch or an after-coffee would also be a good way in which an employer could endear himself to staff members.

According to the group, British employees work the longest hours of any country in Europe, with "many workplaces gripped by a long work culture".

TUC statistics show that the average employee would earn almost £5,000 extra each year if they were rewarded for overtime worked.

Brendan Barber, TUC general secretary, said: "We do not want to turn Britain into a nation of clock watchers, and few mind putting in extra effort from time to time when it is needed, but it is too easy for extra time to get taken for granted and then expected every week."

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Britons dissatisfied with postal service

Thu, 04 Jan 2007 17:23:04 GMT

Less than a fifth of Britons have said they are content with the quality of postal service they receive, a new survey by consumer group Which? has reported.

According to the group, post office closures are a concern for more than a fifth of respondents, with missing post and long queues affecting 15 per cent and 11 per cent respectively.

Neil Fowler, editor of Which? said that postal services were an "exception to the rule" in that if you were unhappy you could not change to an alternative service provider.

"Most worrying is the closure of so many post offices and the impact this has on communities, particularly in rural areas.

"We wait to see the effect of the government's latest proposals, but in the meantime our advice if you are concerned about local closures is to contact Postwatch [the postal regulator], to voice your views," he added.

The news may be of particular importance to SMEs, with the Federation of Small Business having estimated that nearly nine tenths of small firms send post every day.

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Scottish firms confident about future

Wed, 03 Jan 2007 17:28:03 GMT

Economic growth in Scottish firms continues to be strong, according to new research from Lloyds TSB.

The group's latest quarterly business monitor for the Scottish economy shows that over half of Scottish firms reported an increase in turnover for the three months up to November 2006.

Scottish firms also appear to be confident about their future, with service firms most optimistic about their chances.

Suggesting that Scottish firms were benefiting from the resurgence of growth among the UK and Eurozone economies, Donald MacRae, chief economist with the group, said the "Scottish economy continues to grow above its trend rate".

Speculating that "expectations for future growth remain high", Mr MacRae said the Scottish economy would grow at around 2.25 per cent in 2007.

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Diverse workforce good for business

Wed, 03 Jan 2007 17:27:03 GMT

UK employers are becoming increasingly likely to create more diverse workforces, new research has suggested.

According to a study carried out by Jobcentre Plus, 58 per cent of employers claim they are hiring staff from a variety of backgrounds.

This includes those people who find it more difficult to find a job, such as lone parents or the long-term unemployed.

Jobcentre Plus' research also reveals that creating a varied workforce could benefit a firm, with 56 per cent of customers more likely to use a business which had a diverse team.

Lesley Strathie, chief executive of Jobcentre Plus, said: "Creating diverse workforces is about more than just legislative compliance and corporate responsibility – it's about better business.

"This research proves to employers that being committed to diversity is not a business choice, but a business imperative," she added.

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SMEs enjoying web presence

Wed, 03 Jan 2007 17:25:03 GMT

SMEs are increasingly reaping the benefits of a web presence, new research has suggested.

A poll of 57 SMEs carried out by ecommerce provider Actinic shows that some 96 per cent of firms reported an increase in their online turnover for November and December compared to the same period in 2005.

Further research carried out by the group shows that 75 per cent of the respondents remain confident that turnover from online sales will increase in the coming year.

Karen Smith of Nails Plus Beauty commented on the benefits that the selling of products online was having on her firm.

"As a business, I can take more orders and deal with them faster as the client does not always need to speak with us before ordering, plus clients can order 24/7 at their convenience," she said.

The research also showed that SMEs say that over a quarter of their business is comprised by online sales.

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FSB calls for resolutions to ensure future of small firms

Tue, 02 Jan 2007 17:51:02 GMT

The Federation of Small Business (FSB) has called for a number of measures to be taken to ensure that the future of small firms are safeguarded in the new year.

The group has called upon the outgoing prime minister Tony Blair to hand over power in an orderly way to ensure that business confidence is not affected negatively.

The current chancellor of the exchequer, Gordon Brown, has been urged to reduce the red tape burden of businesses in general.

John Reid, the home secretary, has also been called upon to recognise the role businesses can play in improving community safety with the help of businesses.

Carol Undy, FSB national chairman, demonstrated the importance of the small business workforce by suggesting that small businesses employ 58 per cent of the UK's workforce.

Ms Undy also said that if the politicians could keep their resolutions, "2007 will be a prosperous year for the whole country. If they don't, small businesses will suffer and with them will go the UK economy".

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Savvy PC disposal 'important' for SMEs

Tue, 02 Jan 2007 17:43:02 GMT

Small firms seeing in the new year by purchasing new IT equipment may be encouraged to make sure their old PCs are stripped of information before being discarded.

The news follows research carried out by Sainsbury's Bank which shows that almost a third of PCs disposed of over the Christmas period had not had the hard drives in the machines wiped of information or destroyed.

Consequently, the bank estimates that over £3,000 on average is lost as a result of identity fraud resulting from such profligacy.

Donald MacLeod, credit card manager at Sainsbury's Bank, said: "Over the years, you can end up storing a great deal of personal information on your computer so it makes sense to wipe clean or destroy the drive before you throw it away.

"Identity theft is a very serious problem and it is important we all take preventative measures to avoid becoming a victim," he added.

The bank also warns that many of the most canny hackers can still locate files and recommends that hard-drive wiping software is utilised.

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TUC urges employers to provide telephone hearing test

Tue, 02 Jan 2007 17:40:02 GMT

Employers are being urged to encourage staff to take a hearing test to prevent unwitting communication barriers from developing in the workplace.

According to the group, over two fifths of employees over the age of 50 experience a degree of hearing loss.

With increasing numbers of older workers comprising the UK's workforce, the TUC is urging employees to take the Royal National Institute for Deaf and Hard of Hearing People (RNID) test.

The five-minute test could result in employees being provided with amplified telephones or hearing aids to help them work better.

John Low, chief executive of the RNID, explained how hearing loss could have a "significant impact on employees' ability to interact with colleagues, managers and clients".

Brendan Barber, general secretary of the TUC, said: "Employers should be supportive to staff who are losing their hearing and encourage them to take this important check, without fear of being treated less favourably, whatever the outcome."

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