News

These articles were provided by small business commentator and publisher Cobweb Information.
www.cobwebinfo.com

News round-up

Small firms to benefit from alternative funding

A new £110 million funding scheme aimed at boosting sources of alternative finance for small firms struggling to obtain credit has been announced by Business Secretary Vince Cable. The Business Finance Partnership (BFP) will enable peer-to-peer and other non-bank lenders to increase the flow of credit to small businesses. The first four successful participants on the BFP are Funding Circle, Zopa, BOOST & Co and Credit Asset Management Ltd (CAML).

There is more on the BFP at:
http://news.bis.gov.uk/Press-Releases/Small-businesses-offered-110-million-of-new-finance-684c2.aspx



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Consultation opens on draft tax legislation

A consultation on draft legislation to be included in the Finance Bill 2013 has been opened by the Treasury. Measures include reducing corporation tax to 21% in 2014 and increasing annual investment allowances for plant and machinery to £250,000 for two years from January 2013. The proposed bill also includes tax credits for research and development and tax relief for the video games and animation industry. The consultation is open until 6 February 2013.

There is more on the consultation at:
http://www.hm-treasury.gov.uk/press_122_12.htm



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Pension auto-enrolment confusing for business

Following the introduction of the pensions auto-enrolment scheme in October, the Pensions Regulator has been "inundated" with enquiries from businesses confused by the new regulations. A Freedom of Information request made by Pinsent Masons revealed the regulator received more than 5,000 e-mails, letters and telephone calls about the auto-enrolment scheme over the past five months. Mark Baker of Pinsent Masons said: "There is a real danger that companies will leave their planning too late and not have time to negotiate the best deal for themselves and their employees."

Read more on the changes at:
http://www.out-law.com/en/articles/2012/december/regulator-
inundated-with-auto-enrolment-queries-from-confused-businesses/

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Government plans set to boost growth for creative firms

A package of measures aimed at improving the delivery of Intellectual Property Office (IPO) services and support for creative businesses have been announced by the Government. Plans include launching a fast-track patent and trademark processing service and providing an IP advisory service for smaller firms. In addition, the IPO said it aims to increase awareness among consumers and young people of the harm counterfeiting, illegal downloading and piracy can do to business in the UK.

Read more on the plans at:
http://news.bis.gov.uk/Press-Releases/Cable-announces-step-change-to-turn-ideas-into-growth-684f6.aspx



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OFT issues guidance on Continuous Payment Authorities

Traders who do not make consumers' rights clear when using Continuous Payment Authorities (CPAs) risk breaking consumer protection laws, the Office of Fair Trading (OFT) has warned. CPAs are similar to direct debits but payments are collected from a customer's debit or credit card without the need for explicit authorisation of each transaction. Following a compliance check of several websites, the OFT found that many fail to explain to consumers that they are signing up to a CPA and are not making their cancellation rights clear.

There is more on the advice at:
http://www.oft.gov.uk/news-and-updates/press/2012/117-12



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EC publishes consumer guide to 'best before' dates

New guidance for consumers about the distinction between 'best before' and 'use by' dates is to be published by the European Commission (EC). Speaking at a recent conference on reducing food waste Chantal Bruetschy, Head of Innovation and Sustainability at the EC, said the guide could encourage consumers to throw away less food and help retailers sell more non-perishable products, such as biscuits, crisps and soft drinks, closer to the 'best before' date.

There is more on this story at:
http://www.foodnavigator.com/Legislation/EC-should-help-
retailers-sell-non-perishable-goods-after-best-before-date

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Firms waste millions on unnecessary PAT tests

Businesses waste a total of £30 million a year on unnecessary Portable Appliance Testing (PAT), according to the Institute of Engineering and Technology (IET). As a result, the IET has updated its Code of Practice for In-service Inspection and Testing of Electrical Equipment to help firms better understand PAT testing requirements. The IET said annual testing is not usually necessary, particularly in low-risk environments such as shops, offices and hotels. Geoff Cranshaw, chief electrical engineer at the IET, said the updated Code reflected the Löfstedt's report's recommendations to reduce the burden of health and safety requirements on firms.

Read more on the publication at:
http://www.workplacelaw.net/health-and-safety/content/45194

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Needless streetworks impact on retailers

Poor quality and badly co-ordinated streetworks carried out by utility companies are costing retailers thousands of pounds in lost sales, a survey by the Local Government Association (LGA) and Association of Convenience Stores (ACS) has revealed. Over 70% of retailers located close to streetworks said they had been negatively affected, with some losing up to 2,500 customers and others as much as £7,500 per week. Peter Box, Chair of the LGA's economy and transport board, said: "Losing thousands of pounds a week can devastate a small trader's balance sheets, making the difference between trading for another year or going to the wall."

There is more on the survey at:
http://www.local.gov.uk/web/guest/media-releases/-/journal_content/56/10171/3816898/NEWS-TEMPLATE

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Firms trust business advice given by their accountants

Half of firms believe their accountant is their most valuable source of business advice, while a fifth claims to be more honest with their accountant than with their bank manager, according to a survey by Sage. The survey also revealed 44% of business owners turn to their accountant first for business advice, with just 18% going to business groups or chambers of commerce as their first port of call. Jim Scott, managing director at Sage, said: "More business owners than ever are turning to accountants for guidance as the regulatory landscape evolves."

There is more on the survey at:
http://www.accountancyage.com/aa/news/2230418/accountants-beat-banks-as-most-trusted-source-of-advice

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Free town centre parking proposed to help retailers

Local councils have been urged to introduce free parking in town centres by the Forum of Private Business (FPB). The FPB argued that doing so would attract shoppers back to the high street, reduce the number of empty commercial premises and encourage more firms to do business in town centres. Alex Jackman, head of policy at the FPB, said scrapping town centre parking charges would help small retailers through "another tough trading year."

Read more on this story at:
http://www.fpb.org/news/2580/Business_lobby_group_urges_local_councils_
to_help_small_business_by_scrapping_car_parking_charges_for_2013.htm

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Large firms improving on late payments

Large firms pay their suppliers an average of nine days faster than they did in 2008 when the Prompt Payment Code (PPC) was launched, according to research by Experian. Prior to the launch of the PPC, larger businesses were paying on average 25 days slower than smaller firms. The research also revealed firms that signed up to the PPC paid five days earlier on average than those that didn’t. Max Firth, managing director of Experian's business information services division, said small firms could further improve payment times of large firms they supply to by issuing invoices on time.

Read more on the research at:
http://press.experian.com/United-Kingdom/Press-Release/prompt-payment-code.aspx

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Firms look to cut costs as raw material prices soar

Over a quarter of small and medium-sized businesses plan to offset the rising costs of raw materials by cutting back on spending in other areas of their business, according to research by the National Insurance and Guarantee Corporation (NIG). The research also revealed that 6% of firms believed rising raw materials costs meant they were no longer adequately insured against the damage or theft of stock. Jonathan Greenwood, managing director of NIG, said "raw material increases have begun to impact on many firms and there is a clear need for UK businesses to consider how this might have affected their insurance requirements and cover."

There is more on the research at:
http://www.supplymanagement.com/news/2012/smes-suffer-spiralling-commodity-costs/


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Global survey reveals UK spends most online

Shoppers in the UK spend an average of £1,083 online each year, up from £950 in 2010, according to research by Ofcom. UK shoppers spent more online than any other developed country in the survey, £241 more than Australia, which was in second place. The research also revealed that UK consumers were increasingly using mobile devices to shop online, with almost a quarter of smartphone users visiting retail sites via their mobile phone, more than any other European country.

There is more on the research at:
http://media.ofcom.org.uk/2012/12/13/uk-a-nation-of-hi-tech-tv-lovers-3/


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Tobacco displays banned in Scottish shops

Shops in Scotland will be banned from displaying cigarettes and tobacco for sale from April 2013. The ban, which follows similar legislation introduced in England, Wales and Northern Ireland, was challenged unsuccessfully by Imperial Tobacco at the Supreme Court. Scotland's minister for public health Michael Matheson said: "I have always been clear on the need to allow retailers sufficient time to make the necessary changes and so we have decided that April 2013 represents a fair timescale for implementing the display ban."

There is more on this story at:
http://www.talkingretail.com/news/industry-news/tobacco-display-ban-in-scotland-gets-legal-go-ahead

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UK economy at a glance

Indicator Value Change on week Change on month Change on year

FTSE 100 5892.78 - 28.82 + 155.08 + 527.78
£ against US 1.62 + 0.02 + 0.03 + 0.07
£ against € 1.23 - 0.01 - 0.02 + 0.04
UK inflation 2.7% none none - 2.1%
UK interest rates 0.5% none none none
* Figures are as at midday on 17 December 2012

Small firms get more public sector contract opportunities
Government plans to enable more small firms to compete for public sector contracts have been boosted by the addition of four new industries to the procurement pipelines. Details of opportunities in the professional services, financial services, waste management and fire services sectors will be shared on the Contract Finder website, bringing the total value of published opportunities to £84 billion. Minister for the Cabinet Office, Francis Maude, said: "We are determined to make it easier for firms of all sizes to compete for and win Government business so we can leverage our spending on suppliers to help the economy grow."
There is more on the plans at:
http://www.cabinetoffice.gov.uk/news/growth-boost-
business-government-shares-future-buying-needs-worth-84bn

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Consultation to identify burdensome red tape
The European Commission (EC) has called on small and medium-sized firms to identify the ten pieces of EU legislation that cause them the most problems. Legislative areas to be considered include energy, environment, taxation, employment and social affairs. The consultation is part of the 'Think Small First' project, aimed at reducing bureaucracy for small and medium-sized firms, and will run until 21 December. The EC has pledged to analyse the results of the consultation and take action to reduce burdens on smaller enterprises.
There is more on the consultation at:
http://ec.europa.eu/enterprise/newsroom/cf/itemdetail.cfm?item_id=6202&lang=en

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Government urged to remove barriers to mutualism
Efforts to promote the development of employee-owned co-operatives to deliver local public sector services have so far failed to generate change at local government level, according to a report by the Communities and Local Government (CLG) Committee. The report claimed this was due to a lack of co-ordination between the Cabinet Office programme of promoting the spinning out of employee mutuals and the Department for Communities and Local Government's (DCLG) localism reforms. Clive Betts, chair of the CLG Committee, said: "Failure to connect these two strands of policy activity betrays an absence of rigour, enthusiasm and understanding that is essential if the mutual model for local service delivery is ever to take off."
There is more on the report at:
http://www.parliament.uk/business/committees/committees-a-z/commons-
select/communities-and-local-government-committee/news/coops-report-pn/

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Supermarket suppliers to be given fairer deal
The Groceries Code Adjudicator will be granted more power to protect suppliers from unfair treatment by large retailers and supermarkets, under changes announced by the Government. The measures will give the Adjudicator the power to arbitrate disputes between retailers and suppliers, investigate complaints from both direct and indirect suppliers, name and shame supermarkets breaching the Groceries Code and, in extreme cases, impose a fine. Business minister Jo Swinson said: "We expect fines to be used as a last resort, but the fact that the Adjudicator has the power to impose them will send a strong message to retailers that compliance with the Code is not optional."
Read more on the measures at:
http://www.bis.gov.uk/news/topstories/2012/Dec/groceries-code-adjudicator-to-have-new-power-to-fine

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New charity status is now open to applicants
A new legal status for charities is now available as the Charity Commission are accepting applications to register as charitable incorporated organisations (CIO). The status, which was originally due to be introduced in 2008, will enable charities to limit the risk of personal liability for trustees and members. Charitable organisations applying for CIO status will be regulated by the Charity Commission and will not have to register with Companies House.
Read more about the new legal form at:
http://www.charitycommission.gov.uk/RSS/News/pr_cio_application.aspx
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Government takes action to support pubs
A new fund has been launched by community pub support organisation Pub is the Hub. The New Community Services Fund will help pubs to diversify and provide services to their local communities. For example, by providing library services, producing school meals, and opening farm shops and post offices. Local government minister Brandon Lewis recently announced the Government would donate £150,000 to the Fund.
Read more on this story at:
http://www.pubisthehub.org.uk/news/story/new_community_services_fund_boost_for_british_pubs

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HMRC produce guidance on Patent Box tax break
HMRC has produced a YouTube video explaining a package of new measures known as the Patent Box, which will provide tax relief for profits earned from patented inventions. The tax break, which will be introduced from April 2013, applies a lower than usual rate of corporation tax (10%) to the profits earned from patented technologies. David Gauke, Exchequer Secretary to the Treasury, said: "Our aim is for this new tax relief to encourage companies to create high-value jobs in the UK and maintain the UK's position as a world leader in patented technologies."
There is more on the guidance at:
http://hmrc.presscentre.com/Press-Releases/Patent-tax-break-makes-YouTube-debut-6841e.aspx


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Tobacco display ban begins in Wales
A ban on displaying tobacco in larger retailers and supermarkets has been introduced in Wales. Tobacconists and smaller shops will have to follow suit from April 2015. Penalties for failing to comply with the law, which came into force in England earlier this year, include fines of up to £5,000 or a two-year jail term. Guy Mason, head of corporate affairs at Morrisons, said it was confusing for customers to see tobacco on display in corner shops, but not in supermarkets. "If the Government thinks this is the right thing to do, then really it should apply across the whole of the retail trade," he said.
There is more on this story at:
http://www.bbc.co.uk/news/uk-wales-politics-20560864


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Business owners unaware of Green Deal benefits
Just 17% of firms are aware they can apply for loans for energy efficiency improvements under the Green Deal from 28 January 2013, a survey by Rexel has revealed. Of the firms that planned to sign up to the Green Deal initiative, the most common energy efficiency improvements planned were installing LED lighting, window glazing and improving insulation, while biomass boilers and automated systems and control were the least popular. Brian Smithers, director of Rexel, said business owners need to be educated about the benefits of the Green Deal.
Read more on the survey at:
http://www.workplacelaw.net/environment/content/45138


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Manufacturing activity continues to fall
Output and orders in the manufacturing sector continued to fall in the third quarter of 2012, reaching their lowest levels in three years, according to research by the Engineering Employers Federation (EEF) and BDO. The overall output fell by 4% between Q2 and Q3, while new orders also fell during this period. The research found manufacturers with links to European markets were particularly affected by the falling demand. The EEF predicted trading conditions would remain difficult for the sector into the New Year, and that manufacturers would be less likely to focus on recruitment as a result.
Read more on the research at:
http://www.themanufacturer.com/articles/sector-orders-
and-output-at-lowest-since-recession-survey-shows
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E-commerce transactions climb for retailers
E-commerce retail sales increased by around 40% in 2011 compared with 2010, according to research by the Office for National Statistics (ONS). An estimated £21.4 billion was generated from e-commerce sales in 2011, up £6.2 billion since 2010. The ONS research also revealed that the proportion of total sales in the retail sector that were made online rose steadily from 14% to 19% between 2008 and 2011, with wholesale and manufacturing sectors experiencing the greatest increase in e-commerce sales.
There is more on the research at:
http://www.out-law.com/en/articles/2012/december/retailers-see-40-annual-rise-in-e-commerce-sales/


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Smaller firms dip into savings to fund growth
Nearly two fifths of small and medium-sized firms in the UK are relying on their own cash reserves to finance future growth, according to research by Aldermore Invoice Finance. The research revealed the next most common types of funding for growth used by small firms were bank loans, followed by leasing and hire purchase, and overdrafts. Damon Walford, managing director of Aldermore Invoice Finance, said "as cash reserves become depleted, so business owners will need to consider alternative forms of funding, such as invoice finance and asset finance."

Read more on the research at:http://www.mortgageintroducer.com/mortgages/245095/4/Daily_
news/SMEs_reliant_on_cash_reserves_to_survive_recession.htm

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Smaller firms struggling to pay debts, survey finds
Almost a quarter of small and medium-sized firms do not have sufficient funds to pay their debts, according to research by Baker Tilley. The study also revealed that one in five firms' profits fell by more than 50% in the past year. In addition, insolvency trade association R3 estimated that 16,000 firms have kept afloat by paying interest on the debt, without directly tackling the debt itself. Matt Haw of Baker Tilley said: "Significant numbers of businesses fail on their way out of a recession due to cash-flow constraints. As things very slowly start to improve, there's a real risk of overtrading."
Read more on the research at:
http://www.debt-collection-news.co.uk/2012/12/04/one-in-four-uk-businesses-struggling-to-pay-debts/


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UK economy at a glance
Indicator Value Change on week Change on month Change on year

FTSE 100 5898.16 + 26.96 + 130.86 - 408.06
£ against US 1.60 none + 0.01 + 0.03
£ against € 1.24 + 0.01 - 0.01 + 0.07
UK inflation 2.7% none + 0.5% - 2.3%
UK interest rates 0.5% none none none
* Figures are as at midday on 10 December 2012

Autumn Statement 2012 Special

Welcome to this special edition of BAD News (Business Advisers' News), bringing you a summary of the most relevant and important measures announced by the Chancellor in his Autumn Statement.

Against a continuing gloomy economic backdrop, George Osborne warned there will be no "miracle cure" for the UK although he believes the economy "is healing".

He reaffirmed the Government's commitment to reducing the deficit, which he said had fallen by a quarter over the past two years. Nevertheless, the Office for Budgetary Responsibility (OBR) predicts the economy will shrink by 0.1% this year (in contrast to previous forecasts for growth of 0.8% in 2012 and 2% in 2013), but expects it to grow by 1.2% in 2013, rising steadily to a growth level of 2.8% by 2017.

The Chancellor outlined a range of measures he said would "protect the economy" and tackle the continuing deficit, which is expected to take a year longer than originally thought. He announced a further spending review in early 2013, and a package of measures designed to make savings, boost growth and deliver fairness in relation to work, welfare and taxation.

Key points in the Chancellor's Statement included:

Measures to encourage investment and promote growth

Mr Osborne announced a number of measures designed to help small and medium-sized firms gain access to credit, including extending sources of funding for business.

£1 billion of capital will be provided to the proposed Business Bank, which was announced in September 2012.

The Government will review existing schemes providing support for accessing finance by bringing them together into a single organisation with the aim of increasing firms' awareness of the available schemes.

UK Export Finance will provide up to £1.5 billion in loans to fund small firms' exporting activities.

UK Trade and Investment (UKTI) will receive a £70 million increase in its annual budget to enable the delivery of additional services to small and medium-sized businesses. UKTI will also receive funding and support to build capacity in overseas chambers of commerce so it can make better use of private sector providers.

A pilot scheme will enable businesses to secure additional non-bank lending via trade credit under the Enterprise Finance Guarantee Scheme.

Capital investment in the UK's infrastructure amounting to over £5.5 billion will include investment in new roads, schools and scientific research. The devolved administrations in Scotland, Wales and Northern Ireland will also receive additional funding.

Ultrafast broadband will be expanded in 12 cities.

Taxation changes to aid growth and fairness in the economy

The planned 3p per litre increase in fuel duty that was to come into force in January 2013 has been deferred until September 2013.

The Small Business Rate Relief scheme will be extended to April 2014.

Empty property tax relief will be re-introduced from October 2013. Newly built empty properties completed between 1 October 2013 and 30 September 2016 will be exempt from empty property rates for 18 months.

The main rate of corporation tax will be cut by 1% to 21% from April 2014.

The Annual Investment Allowance limit on expenditure on plant and equipment will be extended on a temporary basis for two years from 1 January 2013, granting 100% relief on qualifying expenditure of up to £250,000 (a ten-fold increase on the current limit of £25,000).

The basic income tax threshold will be increased to £9,440 from April 2013, while the threshold for 40% income tax will rise by 1% in 2014 and 2015, from £41,450 to £41,865 and then £42,285.

Tax evasion and avoidance will be tackled by the creation of dedicated HMRC offshore tax evasion units, the introduction of a General Anti-Abuse Rule, and the closure of loopholes designed to collect hundreds of millions of pounds in unpaid taxes.

Working age benefits will be increased by 1% and the basic State Pension by 2.5% in 2013/14.

Capital gains tax exempt amount will increase by 1% per year between 2014 and 2016.

Government spending reforms for growth

Whitehall budgets will be cut by 1% in 2013 and 2% in 2014. Local government budgets will also be reduced by 2% in 2014, but the NHS and schools will be exempt from cuts.

Meanwhile, "growth-related public spending" will be devolved to local areas and a single funding pot will be granted to Local Enterprise Partnerships (LEPs) from April 2015 following Lord Heseltine's report on economic growth. The aim is to empower LEPs to promote local growth and £10 million per year will be granted for capacity building among LEPs.

An additional £350 million will be provided to enable the Regional Growth Fund (RGF) to support private sector jobs and growth.

Money for housing and commercial development

Some £800 million will be provided to extend the FirstBuy equity loan scheme, the Affordable Homes Programme and to support the building of homes for private rental.

The Government will invest a total of £474 million in local infrastructure on a recoverable basis, including £60 million for infrastructure in specified Enterprise Zones.

John Walker, national chairman of the Federation of Small Businesses (FSB), said: "We accept that bold actions are needed to boost the economy and we hope we are on the right road to helping small firms. The Chancellor has listened to many of our members' concerns and has put forward proposals to address these issues - notably, around capital allowances, more encouragement for investors to place funding in small businesses and cancelling the 3p rise in fuel duty. We now eagerly await further details on the small business bank, which we have long seen playing a central role in opening up finance for small firms".

The Autumn Statement is available to read online at:

The Autumn Statement is available to read online at:
http://www.hm-treasury.gov.uk/as2012_index.htm

BAD News is published by Cobweb Information Ltd:
9 Bankside, The Watermark, Gateshead NE11 9SY
http://www.cobwebinfo.com

Business support sector at full capacity and struggling to meet demand

Business support and advice agencies are currently facing record levels of demand for their services at a time when restrictions in the availability of funding are seriously hindering their ability to maintain their levels of service. The findings come from a survey of business support and advice organisations carried out by BAD News publisher Cobweb in October 2012, which has highlighted the challenges the business support sector is facing since the closure of Business Link a year ago. Enterprise practitioners representing 175 business support organisations took part in the survey.

Read more about the survey findings at:
http://www.cobwebinfo.com/business-support-sector-at-
full-capacity-and-struggling-to-meet-demand/

To comment on the article go to:
http://www.cobwebinfo.com/business-support-sector-at-
full-capacity-and-struggling-to-meet-demand/#comments

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New plans unveiled for flexible parental leave

Parents will be able to share up to 12 months leave after the birth of a child from 2015, under plans to be announced by Deputy Prime Minister Nick Clegg. The plans will allow working parents to take up to 52 weeks off in total either together or in separate blocks. Employment Minister Jo Swinson said the reforms would help employers retain staff and attract a wider selection of applicants during recruitment processes.

There is more information on the reforms at:
http://www.bis.gov.uk/news/topstories/2012/Nov/flexible-parental-leave

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HMRC record-keeping penalties to be fewer than feared

The revised business record checks programme announced by HMRC is likely to be less strict than feared. Following initial checks by HMRC, small business owners will be given time to bring their records up to required standards and penalties will only be charged as a last resort. A spokesman for HMRC said: "Penalties will only be charged where customers are found to have deliberately destroyed records on the first visit, or where they have failed to improve their record keeping to an adequate standard by the time a follow-up visit takes place".

Read more about the penalties at:
http://www.taxassist.co.uk/News/Small-Business/Record-
Check-penalties-will-be-small-in-number-says-HMRC-12999.html

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New RTI system requirements 'could burden employers'

The requirements of the forthcoming Real Time Information (RTI) Pay As You Earn (PAYE) reporting system will be "at best unrealistic and at worst impossible" for small firms, the Institute of Chartered Accountants in England and Wales (ICAEW) has warned. Under the RTI, employers will have to submit payroll information to HMRC electronically on or before every payday, with penalties applying to firms submitting returns late. The ICAEW called on HMRC to move the RTI return date to the 19th of the month after the month of payment, which is the same as the current PAYE due date, as this would be familiar to employers.

Read more on the ICAEW's concerns at:
http://www.icaew.com/en/about-icaew/newsroom/press-
releases/2012-press-releases/new-paye-reporting-impossible

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Trade links to be boosted by new pilot project

An £8 million pilot project to build the capacity of business groups such as chambers of commerce in 20 key countries has been launched. The project aims to increase the range of export support available through business groups including the Confederation of British Industry (CBI) and the Institute of Directors. Measures include advisory services, sector-specific support, mentoring for new exporters and market intelligence reports. The pilot project is particularly focused on helping firms export to high-growth markets such as Mexico, South Africa and Morocco.

For more on the measures, go to:
http://news.bis.gov.uk/Press-Releases/New-trade-envoys-
and-business-investment-to-boost-trade-links-68328.aspx

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Government websites begin to migrate to GOV.UK

The new Government website GOV.UK, launched in October 2012, now incorporates the Department for Transport (DfT) and Department for Communities and Local Government (DCLG), which have both moved their corporate and policy information to the site. Over the next 18 months, hundreds more Government websites will migrate to GOV.UK, which is expected to save taxpayers £50 million per year.

For more on this story go to:
http://www.cabinetoffice.gov.uk/news/first-departmental-websites-migrate-govuk

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Building extensions red tape to be removed

New proposals to make it quicker and cheaper to make improvements to business premises have been announced by the Government. The plans would mean that, for a limited period, much of the red tape required to complete a planning application for a small-scale, single-story extension would be removed. The current safeguards that ensure neighbours and communities are not adversely impacted will remain in place, and the new rights will not apply to protected areas or listed buildings.

There is more on this proposal at:
https://www.gov.uk/government/news/new-powers-for-
homeowners-and-businesses-to-improve-their-properties

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Childcare services to benefit from new grant

A new scheme awarding grants of up to £500 to individuals starting up a nursery or childminding service, has been announced by the Department for Culture, Media and Sport (DCMS). Along with the grants, which are designed to cover start up costs, including insurance, training and equipment, childcare firms will be offered business advice and mentoring. The scheme's aim is to provide more childcare options and enable more women to return to work. Women and equalities minister Maria Miller said: "The childcare industry is already a major employer of women and this scheme will provide huge opportunities for female entrepreneurs to start up and run their own businesses".

Read more on this scheme at:
http://www.culture.gov.uk/news/media_releases/9518.aspx

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Freelancers in demand for online work opportunities

More than 184,000 freelance job advertisements were posted on Elance during the third quarter of 2012, according to its global online employment report. The UK was also found to rank third in the top ten freelancer hiring countries, below Australia in second place and the U.S. in first place. The sectors in the UK which saw the most job postings included IT with over 84,000 adverts and creative professions with over 71,000 posts.

For more on the research, go to:
https://www.elance.com/q/online-employment-report

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Recruitment and services sectors see turnover grow

The services sector saw a rise in turnover of 3% between 2011 and 2012, while the recruitment sector experienced a 7% increase over the same period, according to a study by ABN AMRO Commercial Finance. Both sectors have seen turnover grow steadily since falling to their lowest levels since 2009. Peter Ewen, managing director at ABN AMRO Commercial Finance, said: "Recruitment sector growth is likely to be based on increasing demand for temporary workers and isn’t guaranteed to last in the long-term".

There is more on the study at:
http://www.creditman.biz/uk/members/news-view.asp?newsviewID=16933

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Sustainable construction sector faces obstacles

Small and medium-sized enterprises in the sustainable construction sector identified inconsistent policies, a lack of funding and a shortage of skilled labour as the main barriers to progress they face, a survey by the University of Hull has revealed. Firms called for the Government to devise a simpler strategy to help boost green building practices, saying policy often favoured larger firms, and the variation of planning rules between different local authorities was an obstacle to innovation in the sector. Professor David Gibbs of the University of Hull said: "Our research indicates that the UK could miss out on a big opportunity if comprehensive measures are not put in place to support this innovative sector".

There is more on the survey at:
http://www.greenwisebusiness.co.uk/news/policy-
inconsistency-hindering-sme-green-construction-sector-3643.aspx

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Small firms continue to take on new staff

The hiring intentions of small firms in the private sector rose by 7% between Q2 and Q3 of 2012, according to research by the Chartered Institute of Personnel and Development (CIPD). The report also found that 21% of employers plan to increase the number of temporary workers over the next 12 months, identifying an uncertain economic outlook and a desire to reduce short-term costs as reasons for their plans. Gerwyn Davies, labour market adviser at the CIPD, said: "The sustainability of the recovery, supported by growing consumer confidence, may well depend on the extent to which firms are able to convert these part-time and temporary jobs into more full-time and permanent roles".

Read more on the report at:
http://www.cipd.co.uk/pressoffice/press-releases/
employment-outlook-remains-positive-rest-year-121112.aspx

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Family-run firms see boost in sales

Nearly half of family-run firms in the UK experienced increased sales growth in 2012, but this fell short of the global average figure of 65%, according to a survey by PricewaterhouseCooper (PwC).The research also found that over two thirds of family firms plan to grow steadily, while more than one in ten aspires to grow quickly. Sian Steele, director and head of family business at PwC, said: "Family businesses are proud of the fact they are excellent places to work with a real respect for their staff. This has never been more evident than throughout the recent economic downturn, with 89% of UK respondents saying they have battled hard to retain staff, even in the bad times".

Read more on the survey at:
http://www.ukmediacentre.pwc.com/News-Releases/Family-Business-
survey-2012-Backbone-of-the-UK-economy-feels-left-out-in-the-cold-12f1

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Press Release

HARROGATE CONSULTANCY ANNOUNCES FRANCHISE EXPANSION

3 September 2012

 

As central government warns of continuing austerity during the worst recession since records began, one firm is poised for major expansion and has announced GLOUCESTERSHIRE as the launch county for its first franchise.

Direct Business Advice, which is based in Harrogate in North Yorkshire, has been established 10 years and moved quickly to position itself during the early part of the downturn, by building a franchise model for national rollout.

Now, just weeks since its launch, DBA has announced its first franchisee in Gloucestershire,  and is also involved in high level talks to roll out the model in another six county regions.

This new found success – to date there have been 110 enquiries – is the result of a strategic alliance with Bradford, West Yorkshire, based franchise consultants, the Lime Licensing Group.

DBA managing director, Carl Hopkins, said: “The face of business support in the UK has changed dramatically in recent months and we identified a major gap in the market some time ago and acted upon it.

“Every business has what we euphuistically call ‘The Big 4’, notably, Finance, Operations, Sales & Marketing and People and, at any given moment one figures highly on the company agenda.

“However, with economic challenges still facing companies, all areas of business operation remain under close scrutiny, often resulting in redundancies and re structuring as a result of falling profits. The need to promote new sales, usually because existing clients have, themselves, gone bust, has been a resounding call.

“We realized, early on, that this was a likely outcome of any dramatic downturn, and worked rapidly with Andy Cheetham at Lime Licensing to position ourselves for this emerging opportunity”.

The Direct Business Advice franchise was launched  at the end of May and now, successful businessman, Richard George, who recently sold his flourishing fresh food company, is poised to develop DBA’s first franchise in Gloucestershire.

“Richard has an impressive track record,” added Carl Hopkins, “and we are delighted to have such an experienced individual on board.

“There are a lot of business consultants, themselves unemployed, who have years of experience, and they have been keen to acquire a franchise model that will either enable their seamless transition from the public sector to the private sector, or allow them to continue trading with a simple, but well-structured delivery model.

“Either way it is proving a great opportunity for DBA, and may well result in an evolving business model for ourselves, as head office becomes the facilitator of business advice in the UK and its franchisees take over the role of implementers,” he added.

Further details are available at www.dbafranchising.co.uk



Additional News

These articles were provided by small business commentator and publisher Cobweb Information.

www.cobwebinfo.com

Professionals question the thinking behind 'Business In You'

The Government's latest web-based initiative to support and encourage start ups was launched by David Cameron last week. The Business In You website has been set up by the Department for Business (BIS) to "highlight support for start-ups and growing businesses and encourage entrepreneurial spirit in 2012". BAD News sought the opinion of business professionals on the new initiative, many of whom questioned its approach, in particular the statement made in the strapline, "There's a business in everyone. What's the business in you?"

There is more on this story at:
http://www.cobwebinfo.com/site/article_detail/item15728/?link_466=15728

To comment on this story go to:
http://www.cobwebinfo.com/site/article_detail/item15728/?link_466=15728#comments

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Quarter of business owners consider rejoining workforce

A quarter of small and medium-sized business owners are considering re-entering the workforce as an employee, according to research by Aviva. The study found that a third of business owners reported that they had lost the enthusiasm they had when they first started their business, while a quarter said that they no longer enjoyed it. David Bruce of Aviva suggested that this could be due to businesses 'self funding' their activities, rather than borrowing from banks. "This could be forcing them to focus more on the day-to-day operations than on planning for the future," he said.

OPINION: Read 'Nightmares and sugar-coated enterprise' at:
http://www.cobwebinfo.com/site/article_detail/item15721/
+Nightmares_and_sugar-coated_enterprise/?link_466=15721

There is more on this story at:
http://www.aviva.co.uk/media-centre/story/15675/uk-entrepreneurial-spirit-under-pressure/

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Government postpones extension of parental leave

The extension of unpaid parental leave will be postponed for one year, the Government has confirmed, taking advantage of the one-year grace period applying to new European legislation. Changes under the Parental Leave Directive, which extend unpaid parental leave from 13 weeks to 18, will now be introduced in March 2013 instead of March 2012. Susie Munro, of HR information firm XpertHR, argued that the postponement was unjustified, but added that as few employees currently take their full entitlement to unpaid parental leave the delay is unlikely to cause a problem.

There is more on this story at:
http://www.personneltoday.com/articles/2012/01/20/58281/
increase-in-parental-leave-to-be-postponed-by-one-year.html

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BIS pilots scheme for regional mediation networks

Regional mediation networks are the latest measure to be piloted by the Department for Business (BIS) as part of its efforts to reform the employment tribunal process. The pilot will take place in Cambridge and Manchester, where BIS will fund training for employees of 24 small and medium-sized firms in each area. These trained mediators will then provide mediation for other organisations, in an attempt to resolve disputes before they reach the tribunal stage. Business minister Edward Davey said he hoped the scheme would enable employers and employees to avoid the costly and complex tribunal process.

There is more on this story at:
http://nds.coi.gov.uk/content/Detail.aspx?ReleaseID=422930&NewsAreaID=2

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Government Work Programme targets are 'too ambitious'

The Government may have set the targets for the Work Programme too high, according the National Audit Office (NAO). The Department for Work and Pensions (DWP) aims to get 40% of Jobseekers Allowance claimants aged over 25 back into work, while the NAO estimates that 26% is more realistic. The NAO has suggested that the DWP's overly optimistic target could cause financial difficulty for some Work Programme contractors, who are paid according to the results they deliver, as those operating in areas of high unemployment could struggle to meet the targets.

There is more on this story at:
http://www.publicfinance.co.uk/news/2012/01/work-programme-overly-optimistic-say-auditors/

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Proposals for deregulating the hospitality sector unveiled

Recommendations for the deregulation of the hospitality and tourism sectors are to be considered by the Government. The proposals include combining several complex food labelling regulations into one, and simplifying fire safety guidelines. The report also recommended that package travel rules be simplified and travel insurance be made exempt from regulation. Alan Parker, who chaired the panel of industry experts that compiled the report, said that "one of the greatest problems faced by the industry is the cumulative effect of regulation, particularly on small businesses."

There is more on this story at:
http://www.culture.gov.uk/news/media_releases/8806.aspx

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Market stalls for £10 is first response to Portas Review

A Government-backed scheme offering market stalls for £10 over a fortnight this summer is the first official response to the Portas Review. The 'Love Your Local Market' campaign, which will run from 23 June to 8 July, aims to boost market trade and encourage new traders to take part. However, Joe Harrison, of the National Market Traders Federation (NMTF), said he was "hugely disappointed" by the absence of additional funding for markets. "Joe public is not going to walk around a facility that is run down even if the stalls are a tenner", he said.

There is more on this story at:
http://www.telegraph.co.uk/finance/yourbusiness/9039443/
Eric-Pickles-is-having-a-laugh-says-market-traders.html

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Chancellor urged to reinstate tax break scheme

Accountants UHY Hacker Young have called on the Chancellor to reinstate a scheme providing tax breaks for large businesses buying minority shares in small, high-risk firms. The Corporate Venturing Scheme (CVS), which saw £132 million invested in almost 600 small firms over ten years, was scrapped by the last Labour Government. However, Roy Maugham, partner at UHY Hacker Young, believes the decision to wind up the CVS was too hasty, and that it could now provide a much-needed source of business funding while bank lending remains low. Mr Maugham also suggested that the eligibility criteria be expanded so that more firms would benefit.

There is more on this story at:
http://www.uhy-uk.com/resources/news/last-minute-rush-for-small-business-investment-tax-breaks/

Campaign launched against business rates increase

A campaign to cap the annual business rates increase at 2%, in line with Government targets for inflation, has been launched by the Association of Convenience Stores (ACS). The current system for calculating business rates uses the Retail Price Index (RPI) for the previous September. The ACS argues that this is unfair, as the RPI in September 2011 was unusually high, and would see rates increasing by 5.6% in April 2012. The ACS is urging retailers to lobby their local MP on the subject, saying that the proposed increase would cost the retail sector £200 million.

There is more on this story at:
http://www.acs.org.uk/en/lobbying/business-rates/

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Facebook offers free advertisements to small businesses

Facebook has said it will offer £4.2 million worth of free adverts to small firms in Europe. The website is giving 50,000 businesses the opportunity to claim credits worth $100 (around £80) to use for advertising. The announcement comes ahead of a series of roadshow events in partnership with the British Chambers of Commerce (BCC) that will take place across the UK this year. A recent report by Deloitte revealed that Facebook has contributed £2.2 billion to the UK economy.

There is more on this story at:
http://www.equimedia.co.uk/index.php?id=98&article=801276032

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HP pledges to use more small firms in supply chain

IT company Hewlett Packard (HP) has pledged to increase its use of small and medium-sized firms for both Government and private sector contracts. These firms currently represent 10% of HP's supply chain spend, but the company hopes to raise this to 15% by subcontracting to an additional 150 small and medium-sized businesses by the end of 2013. HP also said it plans to improve its procurement process, extend its Business Answers scheme providing support and advice for small businesses, and compile an approved suppliers list of small and medium-sized firms.

There is more on this story at:
http://www8.hp.com/uk/en/hp-news/press-release.html?id=1162116

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Olympic contracts worth £50 million remain for small firms

Small and medium-sized enterprises are being urged to bid for un-awarded contracts for the London Olympics worth £50 million. According to Chris Daniels, of London Olympics sponsor Lloyds TSB, opportunities remain for banner signage, security and hospitality, as well as "cottage industries" supplying products such as costumes and flowers. Almost 70% of all suppliers to the Games are small or medium-sized businesses, and two thirds of these are based outside of London.

View the remaining contracts at:
https://www.competefor.com/business/login.jsp

Mary Portas publishes high-street rescue plans


Town centres should be managed like businesses to improve their performance, a new Government-commissioned review by Mary Portas has recommended. The review claims that the share of total retail spending in the UK that took place in town centres fell by 7% to 42% between 2000 and 2011, while the proportion of out-of-town and online sales increased over the same period. The key recommendations of her report include relaxing licensing laws to make it easier to set up market stalls, introducing a national market day and establishing 'Town Teams' to manage and represent the interests of high street businesses.

The Portas Review is available at:
http://www.bis.gov.uk/assets/biscore/business-sectors/docs/p/11-1434-portas-review-future-of-high-streets.pdf
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EU food storage plans could cost shops millions


New food storage rules being consulted on by the European Commission could cost retailers millions to introduce, the British Retail Consortium (BRC) has claimed. The proposed measures would require chilled food to be maintained at 2 degrees Celsius when being transported or stored, while current rules allow retailers to set their own minimum temperatures providing they can prove that they are safe. The BRC has called on the Government to support its campaign, arguing that the cost of upgrading equipment and increased energy consumption necessary to meet these requirements would make it "harder for retailers to invest and grow."


There is more on this story at:
http://www.brc.org.uk/brc_news_detail.asp?id=2120&kCat=&kData=1
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Welsh grant application deadline sparks concern


Small businesses in Wales may not have time to apply for the new £15 million growth fund launched last week by the Welsh Government, the Federation of Small Businesses (FSB) has warned. The Wales Economic Growth Fund allows businesses to apply for a minimum of £100,000 funding to create and safeguard jobs. However, the deadline for applications is 31 January, which the FSB argues disadvantages firms that are particularly busy over the Christmas period, coping with temporary staff and preparing for tax deadlines at the end of January.
There is more on this story at:
http://www.bbc.co.uk/news/uk-wales-politics-16135704
_________________________________________________________________________
Micro firms to benefit from new accounting rules


Micro businesses could benefit from simpler financial reporting requirements if proposals being considered by the European Parliament go ahead. Under the proposals, eligible micro firms would be exempt from preparing full accounts, with some stakeholders also calling for an end to statutory audits. In order to be eligible for the more relaxed rules, micro firms would have to meet two out of three criteria: generate less than €1 million turnover, have less than €0.5 million in assets, or have ten or fewer employees.
There is more on this story at:
http://www.accountancyage.com/aa/news/2132506/micro-entities-escape-accounting-red-tape
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Consultation on employment tribunal fees launched


A new consultation has been launched by the Ministry of Justice on which of two proposed charging structures will become statutory for entering an employment tribunal claim. The first option places no limit on potential compensation, but claimants would pay a fee of between £150 and £250 to make the claim and a further fee of between £250 and £1,250 if it proceeds to a hearing. In the second option, claimants choose between paying a one off fee of between £200 and £600 and having compensation capped at £30,000, or paying an extra charge to seek a greater pay out.
There is more on this story at:
http://www.peoplemanagement.co.uk/pm/articles/2011/12/details-of-planned-tribunal-fees-revealed.htm
_________________________________________________________________________
BIS launches taskforce to look at non-bank lending


A new taskforce to investigate the "structural and behavioural barriers" to the development of alternative sources of business lending has been launched by the Department for Business (BIS). BIS claims that most small and medium-sized firms rely solely on bank loans to raise finance, with just 10% seeking asset-based finance, and under 5% choosing bond or mezzanine finance. Business Secretary Vince Cable said he wants to see "as much competition in the market as possible and for businesses to have access to a wide range of finance sources." The taskforce is seeking views from businesses and the deadline for submissions is 27 January.
There is more on this story at:
http://www.bis.gov.uk/policies/enterprise-and-business-support/access-to-finance/taskforce
_________________________________________________________________________
B&B owner wins "groundbreaking" HMRC VAT dispute


The owner of a bed and breakfast, who is also a partner in a farm run by her husband and son, has won an appeal against an HMRC decision to combine the two businesses for VAT purposes. HMRC had treated the bed and breakfast, which generates a turnover below the threshold for VAT, as separate to the farm business for several decades, but during a recent inspection claimed the separation was artificial. The owner, Danielle Forster, has now won an appeal against the decision. Law firm CCH Fee Protection called the ruling "groundbreaking", although HMRC has insisted that this is an isolated case relating to a specific set of circumstances.
There is more on this story at:
http://www.telegraph.co.uk/finance/yourbusiness/
8954491/BandB-saved-from-HMRC-tax-claim.html
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Trade group welcomes voluntary code for CCTV


The Government has halted plans to introduce a statutory regulatory code of practice for retailers using CCTV and Automatic Number Plate Recognition. Instead, a voluntary code is to be introduced, following recommendations by the Association of Convenience Stores (ACS), which argued that statutory regulation would be "counter-productive" and would result in unnecessary red tape for retailers. James Lowman, chief executive of ACS, commented that "CCTV equipment has a clear role in local shops to protect the business, retail staff and the public."
There is more on this story at:
http://www.acs.org.uk/en/Press_Office/details/index.cfm/
obj_id/E90A6B4D-7828-4848-B3F822DBBC6FCF49
_________________________________________________________________________
Welsh food firms face mandatory hygiene ratings


A new consultation has been launched by the Welsh Government on introducing a statutory hygiene rating scheme for food businesses. The consultation highlights concerns that the current voluntary hygiene ratings scheme run by the Food Standards Agency (FSA) is insufficient as not everyone has access to the Internet to view the online ratings. If introduced, the rules would require all food businesses to display their ratings at the front of their premises. The ACS has argued that the current FSA scheme, adopted by all 22 Welsh local authorities, does not need to be changed and that new regulation would "place unnecessary burdens on food retailers".
There is more on this story:
http://www.talkingretail.com/news/independent-news/welsh-government-
to-ditch-voluntary-food-hygiene-scheme-in-favour-of-red-tape-reveals-acs
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Government failing to support growth, firms say


Over 60% of company owners and directors do not believe that the Government is providing adequate support for economic growth, research by Bibby Financial Services has found. Measures that respondents said would support enterprise included reducing VAT, scrapping the 50p income tax rate, forcing banks to provide more finance for small firms and investing in core industries. Edward Rimmer, chief executive of Bibby, said that the research indicated a lack of confidence in the Government, adding that almost a quarter "believe it lacks knowledge of the specific needs of business."
There is more on this story at:
http://www.smeweb.com/index.php?option=com_content&view=article
&id=3267:government-approach-to-funding&catid=53:news&Itemid=89
_________________________________________________________________________
New guidance published on cookie law compliance


The Information Commissioner's Office (ICO) has launched an updated guide to help website owners prepare for the revised Privacy and Electronic Communications Regulations in advance of 26 May when the 12-month grace period for compliance ends. The guide contains practical examples of how businesses can comply with the new rules on cookies, which require them to gain consent before storing website users' data. However, Information Commissioner Christopher Graham said that following the May deadline there will not be "a wave of knee-jerk formal enforcement actions taken against those who are not yet compliant but are trying to get there".
There is more on this story at:
http://www.ico.gov.uk/news/latest_news/2011/
must-try-harder-on-cookies-compliance-says-ico-13122011.aspx
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Half of parents plan to buy Christmas gifts online


Over half of parents with children aged nine or under plan to buy Christmas presents from non-specialist online retailers this year, according to a survey by ResearchBods. The second most popular place for parents to buy toys for their children was the supermarket, followed by specialist toy shops. Almost a third of respondents said they would be cutting their spend on gifts and around three quarters plan to spend under £200 in total on gifts for their children.
There is more on this story at:
http://www.retailgazette.co.uk/articles/04343-over-half-of-parents-to-buy-toys-online-this-xmas
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UK tops list of Internet shoppers, research finds


Eight in ten Internet users in the UK ordered goods and services online in 2010, a greater proportion than in any other European country, research by Ofcom has found. The study suggested that this has led to high levels of Internet advertising: in the UK, 29% of the total advertising spend in 2010 was on the Internet, which was double the global average. Chief executive of Ofcom Ed Richards commented that "the UK communications market is performing well with prices, the range of services and innovation standing up well against international benchmarks."
There is more on this story at:
http://media.ofcom.org.uk/2011/12/14/uk-consumers-are-a-nation-of-online-shoppers/
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Job posts more than double on freelance website


Temporary contracts posted on global freelance jobs website Elance have increased by 120% to 650,000 over the past year. Some of the most significant increases in demand were for freelance graphic designers, software developers, Internet marketers and content writers. In addition, the average pay per freelancer in the UK has increased by 85% over the past year. Fabio Rosati, chief executive of Elance, said that the increase in demand for freelancers is due to a "structural change in traditional employment".
There is more on this story at:
http://www.freelanceuk.com/news/3979.shtml
_________________________________________________________________________
'Ethical' and Fairtrade product sales increasing


Sales of fair trade and other 'ethical' products rose by 9% to almost £47 billion between 2009 and 2010, according to the Co-operative Group's Ethical Consumerism Report. The Report also found that Fairtrade food sales rose by 36% to £1 billion, although sales of organic food fell by 10% to £1.5 billion. Paul Monaghan at the Co-operative said that "intervention by enlightened businesses, together with regulatory intervention is, driving ethical sales growth."
There is more on this story at:
http://www.co-operative.coop/corporate/Press/Press-releases/n/Enlightened-
businesses-force-through-change-and-ensure-ethical-sales-continue-to-grow-/

 Enterprise Finance Guarantee scheme declining

The value of business loans offered through the Enterprise Finance Guarantee (EFG) scheme fell over the past two years, figures published by BIS revealed. Figures show that 881 loans worth £91.8 million were offered to firms through the scheme in the three months to September, compared to 2,030 loans worth £217.9 million offered over the same period in 2009. The Chancellor recently extended the EFG scheme to include firms with an annual turnover of up to £44 million, effective from January 2012.

There is more on this story at:

http://www.bis.gov.uk/policies/enterprise-and-business-support/
access-to-finance/enterprise-finance-guarantee/efg-statistics

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Support for rural broadband pilot projects stalls

Projects to connect rural areas with fast broadband connections have stalled due to lack of Government support, the Countryside Alliance has claimed. Freedom of information requests made by the Countryside Alliance revealed that councils of the four pilot projects in Cumbria, Herefordshire, North Yorkshire and the Highlands and Islands were yet receive any money from the Treasury, choose a company to build the network or start work on the project. Alice Barnard of the Countryside Alliance said that the process for acquiring and introducing rural broadband projects should be simplified to allow the communities to grow and develop.

There is more on this story at:

http://www.computerweekly.com/news/2240112260/
Rural-broadband-getting-nowhere-says-Countryside-Alliance

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Government relaunches Mutual Information Service

The Government has launched a new version of the Mutual Information (and Triage) Service (MIS) to replace interim arrangements introduced in 2010. The MIS provides information for potential mutual organisations (groups of public sector employees formed to deliver public services) and identifies the support required for the process of becoming a mutual, as well as signposting to sources of further information. The consortium providing the new service includes Social Enterprise UK, Employee Ownership Association, Co-operatives UK, Baxi Partnership, and the Office for Public Management.

There is more on this story at:
http://www.socialenterprise.org.uk/news/social-enterprise-partner-new-mutuals-information-service

Access the MIS at:
http://mutuals.cabinetoffice.gov.uk

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Group calls for better training of ex-military staff

The training and support of ex-military personnel rejoining the labour market should be more closely linked to employers and their requirements, a new report by the ForceSelect Foundation has urged. The report estimated that 75,000 people will leave the Armed Forces in the next two years due to public spending cuts, and urged the Government to make more training available to help them prepare for civilian roles. The Foundation also called for qualifications that are tailored to employer requirements, workshops on current labour market trends and growing industries, and mentoring from veterans on adjusting to civilian life.

There is more on this story at:
http://www.peoplemanagement.co.uk/pm/articles/2011/12/
call-for-employer-linked-training-for-ex-military-staff.htm

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Lord calls for compulsory trade body membership

Membership of trade bodies, such as chambers of commerce, should be made mandatory for businesses in the UK in order to raise standards, Lord Heseltine has said. Lord Heseltine, head of the Regional Growth Fund (RGF), argued that compulsory membership would encourage trade bodies to spread best practice and improve the performance of industries, rather than pursuing headlines by criticising Government policy on behalf of their most vocal members.

There is more on this story at:
http://www.telegraph.co.uk/finance/yourbusiness/8936686/
Business-needs-to-raise-standards-says-Lord-Heseltine.html

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More councils join Food Hygiene Rating Scheme

Five more councils have rolled out the Food Hygiene Rating Scheme (FHRS) in their region bringing the total to almost 180 local authorities in England, Wales and Northern Ireland. The FHRS rates food business hygiene levels and is run by local authorities in partnership with the Food Standards Agency (FSA). The FHRS website now provides over 140,000 ratings for food businesses including restaurants, cafés, pubs, takeaways, hotels, supermarkets and other food shops. More local authorities are expected to join the FHRS over coming months.

There is more on this story at:
http://www.food.gov.uk/news/newsarchive/2011/dec/fhrslaunches

The FHRS website is available at:
http://www.food.gov.uk/ratings

_________________________________________________________________________

High costs put charities off seeking legal advice

Over a third of small charities are put off from seeking legal advice due to high costs, a study by the Legal Services Consumer Panel has revealed. The research found that 96% of charities found solicitors' advice useful, but many reported difficulties obtaining pro bono help and attracting legally trained trustees. Elisabeth Davies, chair of the Panel, said that charities are often overloaded with information leaving them confused about their legal responsibilities. She added that "although there are some useful guides, information needs to be better co-ordinated and signposted."

There is more on this story at:
http://www.lawgazette.co.uk/news/charities-reveal-qualms-about-seeking-legal-advice

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Online consumers prefer small firms' websites

Small businesses are able to "outmanoeuvre" large companies by competing online, research by Yell Group and the University of Southampton suggests. When consumers were asked to compare business websites without being told the size of the firm, two thirds chose the smaller business as their preferred supplier. In addition, 37% were unable to distinguish between websites belonging to the large firms and those owned by small firms. Yell claimed that websites "blurred perceptions of company size", and that the authenticity and simplicity of a website were some of the most important factors for consumers when choosing a supplier.

There is more on this story at:
http://www.yellgroup.com/english/media-pressreleases-2011-
davidbeatsgoliathonlineasconsumersfavoursmallerfirms

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Weak mobile sites cast retailers millions a year

Retailers that optimise their website for mobile web access could increase their annual revenue by 12%, according to research by technology solutions firm QuBit. The study claimed that mobile commerce is an increasingly important source of revenue for retailers, and revealed that the proportion of total web traffic from mobile devices tripled to 15% between 2010 and 2011. QuBit found that the most common areas of weakness of mobile websites were speed, 'thumb-friendliness' and customising content according to the user's location.

There is more on this story at:
http://www.qubitproducts.com/wp-content/uploads/2011/12/Mobile-Whitepaper-no-bleed-.pdf

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Applications for ABS law firms open from January
Applications for alternative business structures (ABS), a new type of business structure for firms providing both legal and non-legal services, will be accepted from 3 January, the Solicitors Regulation Authority (SRA) has announced. Following its approval as a licensing authority last week, the SRA revealed that the first successful applications could be announced by the end of February, depending on their complexity. Chief executive of the SRA Antony Townsend said that being approved as a licensing authority means the public can be confident that an "ABS providing reserved legal activities will be regulated according to the same rigorous professional standards as traditional law firms."

There is more on this story at:
http://www.legalweek.com/legal-week/news/2129455/sra-ahead-abs-licensing


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Shops should shape town planning, trade body says
Shop owners should become more involved in developing local town planning, the Association of Convenience Stores (ACS) has said. The ACS urged retailers to take advantage of the increased power over local planning decisions given to communities under the Localism Bill to protect town centres and reduce the impact of out-of-town shopping centres. The ACS also called on the Government to give communities more influence over which shops are permitted on the high street, allowing them to favour independent retailers.

There is more on this story at:
http://www.talkingretail.com/news/independent-news/
independent-retailers-urged-to-help-shape-local-planning


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Cybercrime increasingly common for business
Cybercrime has increased since 2009 to become the third most common form of financial crime in 2011, according to research by PricewaterhouseCoopers (PwC). The research revealed that other common forms of financial crime fell, such as asset theft, which was down by 8% since 2009, and account fraud, which was down by 5% over the same period. However, William Beer, a spokesman for PwC, said that cybercrime is a serious threat and can originate from inside the business as well as externally. He added that businesses should "take this threat more seriously".

There is more on this story at:
http://www.computerweekly.com/news/2240111628/
Cybercrime-among-top-forms-of-economic-crime-in-the-UK


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New programme launched for social enterprise
Social Enterprise UK and Deloitte have combined to launch the Deloitte Social Innovation Pioneers Programme. The Programme is designed for firms with growth potential that have a social mission or those that have a positive effect on society. The 50 successful bidders will receive a support package including skills training, workshops and networking opportunities. The application process is now open and closes on 28 January.

There is more on this story at:
http://www.socialenterprise.org.uk/news/new-programme-
showcase-and-support-the-best-social-businesses-launched


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Local beer scheme reaches 100 pub members
The Society of Independent Brewers Association (SIBA) Locals Scheme has reached its 100th member, SIBA has announced. The Scheme is designed to encourage pubs to stock locally-sourced food and drink, and provides participants with a brass plaque, posters and listing on the SIBA website. SIBA claims that the local beer sector is growing, having risen by 8.8% in 2010, compared with an overall decline in the beer market of 3.9%.

There is more on this story at:
http://www.bighospitality.co.uk/Venues/SIBA-Locals-pub-scheme-reaches-100-members


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Users of eBay m-commerce channel increase
Over a million items are uploaded to eBay via mobile phones every week, the online auction site has revealed. It also claimed that its improved mobile app has been downloaded 50 million times. eBay attributed the increase to consumers being able to use their phones to photograph items and upload them to the online marketplace. The success of its m-commerce channel resulted in eBay revising its prediction for m-commerce revenues from $4 billion up to $5 billion.

There is more on this story at:
http://www.nma.co.uk/news/ebay-counts-1m-mobile-uploads-a-week/3032422.article


Taxman targets VAT cheats in latest clampdown
HM Revenue & Customs (HMRC) has launched a new campaign targeting firms who have not registered for VAT despite having turnover above the £73,000 threshold. As with its other recent 'tax amnesties', HMRC will invite these firms to come forward with a full disclosure in order to face a lower penalty rate of 10% of the VAT owed. They will have until 30 September to tell HMRC they want to take part, after which investigations will be launched, which could lead to substantial fines or prosecutions.

Read the HMRC news release at:
http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=420260&SubjectId=16


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Fewer owner-managers see access to credit as a threat
Just four in ten business owners and managers feel threatened over access to credit, compared with nearly twice that number in 2010 and 2009, according to a new survey from accountants Baker Tilly. More respondents reported overall optimism about their business this year, up from 50% to 59% in 2010. However, the Bank of England's Credit Conditions Survey for the second quarter of 2011 reveals that demand for credit among small and medium-sized firms has grown markedly in recent months, but availability has remained static, and lenders expect this to remain unchanged in the third quarter.
View the Baker Tilly survey results at:
http://www.bakertilly.co.uk/media/news/Owner-managed-businesses-may-be-turning-a-corner.aspx

Read the Bank of England's Credit Conditions report at:
http://www.bankofengland.co.uk/publications/other/monetary/creditconditionssurvey110630.pdf


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Small firms still suffering due to late payments, says FSB
The Federation of Small Businesses (FSB) has reported that 73% of businesses have been paid late in the last 12 months. As a result, small firms with lower cash-flow buffers are left unable to pay their suppliers on time. Despite efforts by the Government to pay small firms within ten days, 18% of respondents were paid late by the public sector. The FSB is calling on the Government to ensure that all public agencies sign up to the Prompt Payment Code so that the private sector can play its part in strengthening the economic recovery.

Read the FSB press release here:
http://www.fsb.org.uk/News.aspx?loc=pressroom&rec=7169


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Treasury unveils plans to boost high-growth start ups
The Treasury has opened a consultation on a new set of proposals, promised in this year's Budget, to encourage investment in small and start-up firms with potential for high growth. In particular, the consultation will look at a planned scheme to encourage 'business angels' to make early-stage investments in young, high-growth businesses. It will also seek views on proposed reforms to simplify the Enterprise Investment Scheme (IES) and Venture Capital Trusts (VCTs).

The consultation document can be accessed at:
http://www.hm-treasury.gov.uk/consult_tax_advantaged_venture_capital_schemes.htm


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Service and construction sectors reveal drop in confidence
Confidence levels in the construction industry fell slightly between May and June, while in the service sector they were at their lowest since last October, according to the latest monthly Purchasing Managers' Index from the Chartered Institute of Purchasing and Supply (CIPS) and Markit. CEO David Noble warned that weakened confidence in construction made "prospects for any future expansions in output growth look moderate at best". However, he said the "steady and solid new business growth" was helping the services sector "keep its head above water".

Read the CIPS news releases at:
http://www.cips.org/en-gb/aboutcips/news/UK-construction-sector-loses-confidence-/


And:
http://www.cips.org/en-gb/aboutcips/news/Service-PMI-holds-steady-throughout-June/

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Third of firms unsure how Bribery Act will affect them
Many small and medium-sized firms are still confused about how the Bribery Act affects their operations, according to research carried out by the software provider Sage. The Act came into force at the beginning of July, and firms have been advised to establish policies to ensure their activities comply. However, while 33% of the 1,050 firms polled said they knew about the Act, 71% did not understand what it is or how it is likely to affect them. Sage's Samantha Bell advised: "The key thing is to be in a position where you can show you have taken adequate steps to prevent acts of bribery from taking place."

There is more on this story at:
http://www.realwire.com/releases/SMEs-unprepared-for-UK-Bribery-Act

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Retailers closed 20 stores a day in first five months of 2011
New figures from PricewaterhouseCoopers (PWC) and the Local Data Company have revealed that retailers have closed 20 stores each day between January and the end of May. In addition, PWC's insolvency figures for the second quarter of 2011 show that retail insolvencies were up 9% on 2010. The figures follow calls from the British Retail Consortium (BRC) for more investment to support independent retailers by making town centres more convenient and attractive to shoppers.
View the PWC figures at:
http://www.ukmediacentre.pwc.com/News-Releases/UK-retailers-have-closed-20-stores-
a-day-on-average-in-2011-says-PwC-and-Local-Data-Company-analysis-10c0.aspx

Read the BRC news release at:
http://www.brc.org.uk/brc_news_detail.asp?id=1992&kCat=&kData=1

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Protecting ideas yields more growth than capital investment
Investment in UK businesses holding intellectual property rights (IPRs) is worth £65 billion each year, according to new research from the Intellectual Property Office (IPO). Two new reports reveal that over the last ten years, investment in intellectual property has led to greater business growth than investment in fixed capital. The growth of IPRs has been most significant in design and copyright, which includes software, music, publishing, broadcasting and film.

Read the IPO news release at:
http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=420303&SubjectId=16

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Private sector charged with worst data breach record
The Information Commissioner has revealed that the private sector holds the worst record for data security breaches in 2010/11. Private firms accounted for almost a third of the 603 data breaches reported to the Information Commissioner's Office (ICO), yet just 19% of businesses invited to undergo free data protection audits took up the offer. This compared with 71% of public sector organisations. Commissioner Chris Graham said the audits were not about "naming and shaming those who are getting it wrong". He added: "The fact that a company has undergone a consensual audit should count as a badge of honour".

Read the ICO news release at:
http://www.ico.gov.uk/~/media/documents/pressreleases/
2011/ico_annual_report_201011_news_release_20110706.pdf

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Minister: Scottish export growth marks 'vital stage' in recovery
Scottish enterprise minister Fergus Ewing has welcomed news of the highest quarterly increase in manufactured exports from Scotland since the second quarter of 2007. Manufactured exports also saw a year-on-year rise of just over 2%. However, Mr Ewing promised that Scottish businesses would continue to receive extra support to help them enter new overseas markets. "While these figures are hugely encouraging it is clear that our recovery is at a vital stage," he said.

Read the Scottish Government news release at:
http://www.scotland.gov.uk/News/Releases/2011/07/06101449

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Social media must feed in to overall strategy, says expert
Businesses seeking to harness the potential of social media must ensure they integrate it with the rest of their sales and marketing tools, a communications expert has warned. Tim Gibbon, director of communications consultancy Elemental, says businesses who operate their social media marketing separately, or commission external agencies to focus on this channel in isolation, are limiting its potential. "Unfortunately some of these approaches tend not to be inclusive where they are not integrated into the operations of the business", he said.

There is more on this story at:
http://www.microsoft.com/business/en-gb/Content/pages/
news.aspx?cbcid=1002&listid=edf0edec-3902-4b4f-8b53-a0aee8decbd7

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Outdoor digital advertising set to grow to £1.5 billion
A new report by Kinetic predicts growth and opportunities for out of home media. The report states that digital screens will make up to a quarter of the total outdoor market in the next ten years. They predict that up to 30 cities in UK will have comprehensive networks of digital outdoor advertising. In addition, Kinetic assert that outdoor media will become more targeted, with potential for involving mobile devices and social media for an interactive and direct response.

Read the full report at:
http://www.kineticww.com/home/what-are-we-thinking/moving-minds/environmenstinsight/


11-07-05/The_future_of_Out_of_Home_media_in_the_UK_to_2020.aspx

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Unnecessary 'use-by' dates cause headache for food retailers
The Local Better Regulation Office has reported that overly-cautious food producers are labelling more products with 'use-by' dates than is required by law. The report states that fear of prosecution means that supermarkets are forced to carry out £110 million worth of unnecessary checks which is passed on to customers in higher prices. Industry standards agencies are calling for the Government to review laws and guidance on the topic.

Read the full report at:
http://www.lbro.org.uk/docs/date-coding-report.pdf


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Government poll reveals extent of small firms' finance problems

New Government research has revealed that last year more than a third of small firms in need of loans were turned down by their bank, compared with 14% before the financial crisis. The Government survey of 4,500 businesses revealed that over half had faced "difficulties" in accessing the money they needed. However, nearly all firms did manage to find sources of borrowing for part if not all of the sums they needed, with just 5% failing to secure any funding at all.

There is more on this story at:
http://www.telegraph.co.uk/finance/yourbusiness/8543121/
One-in-three-small-businesses-rejected-by-banks.html

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Buy-to-let landlords optimistic as rental market grows

Almost half of landlords believe now is a good time to invest in the buy-to-let market, according to a new poll. The survey, conducted by LSL Property Services, found that 52% of landlords had seen tenant demand increase over the last three months, with 68% expecting further growth over the coming year. The rise has been attributed to a fall in the number of people buying homes for the first time, with the majority renting privately instead. However, landlords face obstacles in securing mortgage finance in order to expand, with 54% claiming that it is more difficult to do this now than a year ago.

There is more on this story at:
http://www.mortgageintroducer.com/mortgages/240346/4/
Daily_news/Landlords_positive_over_buy-to-let_prospects.htm

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Pubs warned to save against recall of games machine VAT refunds

Licensees who have received VAT rebates on 'Amusement with prizes' (AWP) machines are being warned to prepare for the money to be recalled, pending a decision by the European Court of Justice (ECJ). Peter Coulson, legal editor of the Publican's Morning Advertiser, has warned that a new precedent could be set allowing HMRC to appeal VAT refunds issued under a court ruling in 2009. The ECJ case is scheduled for 30 June.

There is more on this story at:
http://www.morningadvertiser.co.uk/news.ma/
article/90737?PagingData=Po_0~Ps_10~Psd_Asc

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Poor data blamed for charity direct mail complaints

Fundraising bodies have been warned to improve their management of data after research revealed that poor data management was responsible for one sixth of all complaints about fundraising communications. According to the Fundraising Standards Board (FRSB), there was an increase in the number of complaints about postal appeals in 2010, despite a fall in the number being sent. Alistair McLean, chief executive of the FRSB, said: "Charities and suppliers alike must strive to source and maintain better data for donors and potential supporters, and to make timely and appropriate use of that data."

Read the FRSB news release at:
http://www.frsb.org.uk/english/news/59/22/Annual-Charity-Fundraising-Complaints-Top-18-000/

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Financial advisers say new complaints rules need review

Financial advisers could be forced to spend more time and money under the Financial Services Authority's (FSA) new complaints procedure, the Association of Independent Financial Advisers (AIFA) has said. The new system will abolish the 'two-stage' complaints handling rule, and require firms to assign responsibility for complaints handling to a senior individual. However, Stephen Gay, director general of the AIFA, said financial advisers had the best record for dealing with complaints, and should not be treated in the same way as those parts of the sector with the worst. He said the new rules had sparked "real concerns about the cost and time implications for adviser firms."

There is more on this story at:
http://www.mortgageintroducer.com/ccstory/240339/5/
AIFA_urges_FSA_to_rethink_complaints_proposals.htm

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HMRC consults on tackling risky tax-avoidance schemes

HM Revenue & Customs (HMRC) has launched a consultation on plans to publish a list of high-risk tax avoidance schemes. Under the proposals, anyone using a listed scheme would be required to tell HMRC, and would face an additional charge on any underpaid tax unless they paid upfront in the case of a dispute. Currently, taxpayers using the schemes can delay payment until HMRC has completed an investigation. David Gauke, Exchequer Secretary to the Treasury, said: "For too long, wealthy taxpayers were using these schemes as a cheap loan from Government. Our proposals would stop this practice".

Read the HMRC news release at:
http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=419754&SubjectId=2

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New tool allows peers to comment on patent applications

A new online tool is being piloted that will allow science and technology experts to view and comment on patent applications before they are considered by the Intellectual Property Office (IPO). A summary of the comments will be passed to the IPO along with the application, and taken into consideration as part of the patent review process. Baroness Wilcox, who launched the new system, said it would "give the IPO access to a wider body of knowledge when deciding whether a patent should be granted."

Read the IPO news release at:
http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=419735&SubjectId=2

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Two thirds of bosses unaware of pension auto-enrolment

A new survey has found that 61% of employers are not aware of plans to roll out auto-enrolment for pension schemes over the next few years. The new system will start being introduced from 2012, and will later become a legal obligation for all businesses. The research, published by Close, a provider of financial education services, also showed that a third of those employers who did know about the new system were not planning to provide training to help staff understand it, with many relying on other sources of information such as brochures.

There is more on this story at:
http://www.onrec.com/news/almost_two_thirds_of_employers_unaware_o

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Trading watchdog to clamp down on credit brokers

The Office of Fair Trading (OFT) has announced new measures to tackle upfront charges made by credit brokers and loan management firms. The OFT says the firms take the fees, which typically vary between £50 and £70, despite being unlikely to provide consumers with promised introductions to unsecured loans. It is asking the Government to consider banning upfront charges, which it estimates were paid by 270,000 consumers to sub-prime, unsecured credit brokers in the last year. It has also published new guidance for credit brokers, outlining consumers' rights to refunds of upfront fees where no introduction to a lender is made.

Read the OFT news release at:
http://www.oft.gov.uk/news-and-updates/press/2011/62-11

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Red Tape Challenge in doubt as public demand more rules

Business Secretary Vince Cable has warned that the Government's bid to lift the regulatory burden on business could backfire as its Red Tape Challenge website draws opposition from the public and consumer groups. Speaking to businesses in Westminster, Mr Cable said reducing regulation was a top priority for the Government, but warned that it would not be easy. "Very perversely we are being bombarded by messages from the public saying please increase regulation", he said.

There is more on this story at:
http://www.telegraph.co.uk/finance/yourbusiness/
8542967/Red-tape-reforms-face-public-backlash.html

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New sports and recreation governance code published

A new voluntary code of governance for sports and recreation organisations has been backed by Hugh Robertson, the minister for sport and the Olympics. The code includes recommendations for the size for directors' boards and the balance of skills and experience they represent, and measures to encourage accountability and transparency. Mr Robertson said: "This code will help make sure that sports have the best possible governance structures in place to meet the challenges and opportunities of the coming year."

View the new code at:
http://www.sportandrecreation.org.uk/smart-sport/voluntary-code-good-governance

Read the Department for Culture, Media and Sport (DCMS) news release at:
http://www.culture.gov.uk/news/news_stories/8174.aspx

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Fitness industry in good health, report finds

The fitness industry's total market value has increased by 4% since 2008 to reach £3.81 billion, according to a new industry report from the Fitness Industry Association (FIA). The report also found that since the beginning of the recent recession, gym membership in the UK has grown by 2%. The public and budget sectors were the biggest drivers of growth, however, with private operators suffering from a 2% decrease in total market value since last year. The FIA's David Stalker commented: "More competition and further consolidation of the market is to be expected, but with increased public health awareness of the importance of physical activity and a three year industry strategy in place, there is opportunity for sector growth ahead."

There is more on this story at:
http://www.leisuremanagement.co.uk/detail1.cfm?page
type=detail&subject=news&codeID=261763&site=LM&dom=N

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Royalties payday for published artists announced

Published photographers, illustrators and other visual artists are being urged to claim their share of £4 million in royalties when the Design & Artists' Copyright Society (DACS) launches its Payback campaign on 13 June. The DACS runs a collective licensing scheme that ensures artists get paid when their work is reproduced. It will be accepting claims from any visual artist whose work has been used in books or magazines published in the UK until 9 September, with payments issued in time for Christmas.

Read the DACS news release at:
http://www.dacs.org.uk/index.php?m=4

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Solicitors mull opportunity to switch regulators

Solicitors' firms that have converted to alternative business structures (ABSs) could decide to switch regulators after the Council for Licensed Conveyancers (CLC) was given approval to broaden its remit. The Legal Services Board has given the go-ahead for the CLC to regulate ABSs in the areas of probate, reserved activities relating to the transfer of land, and the administration of oaths, although this could be extended to include advocacy and litigation. Stephen Mayson, of the Legal Services Institute, said firms may choose to switch in order to make cost and compliance savings.

There is more on this story at:
http://www.lawgazette.co.uk/news/solicitors-facing-039
challenge039-council-licenced-conveyancers-over-abss

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RGF round one: how small businesses will benefit.

Last week Deputy Prime Minister Nick Clegg announced which organisations had been successful in their bids to secure finance from the £450 million available in the first round of the Regional Growth Fund (RGF).

Following the announcement, some members of the small business community voiced their disapproval that grants were awarded to major companies such as Nissan, Haribo and General Motors, but appeared not to consider the smaller businesses which had been amongst the 464 applications for funding.
Subsequent reports suggest that unsuccessful bids simply did not fit the RGF eligibility criteria, and while small businesses may have missed out on grants because they fell short of the £1 million minimum bid threshold, they may still benefit from the funding indirectly.

One organisation that has been awarded a particularly large grant from the first round of the RGF is the Community Development Finance Association (cdfa), a trade association which represents Community Development Finance Institutions (CDFIs) in the UK.

CDFIs, of which approximately 10% are also represented by the National Federation of Enterprise Agencies (NFEA), are made up of enterprise agencies and business support organisations that provide loans to businesses that are unable to access funding by traditional means, such as banks.

In the biggest investment in the sector to date, £30 million of the RGF finance has been awarded to the cdfa for the social and economic development of communities across the country. This grant was matched by two high-street banks, bringing the fund total to £60 million. The fund will be passed on to 35 CDFIs within the cdfa, which will lend to small businesses in deprived communities across the country.
Bernie Morgan, chief executive of the cdfa said: "We are delighted to be one of the successful bidders to the RGF, which was a highly competitive process. With this fund we can continue our work of creating jobs and providing growth in localities which need it most. We relish the prospect."

While the sum of the RGF remains substantially lower than the money spent on the Regional Development Agencies that it replaces, a move towards supporting such a far-reaching and influential association is surely a good one as far as local business support is concerned. Will we see similar results in round two?
Read the Government press release on the fund announcement.

Official costings of new regulations questioned by business groups.

The Government is underestimating how much changes to legislation such as scrapping the default retirement age (DRA) will cost businesses, critics have warned. The Department for Business (BIS) estimated that preparing for the DRA abolition would only cost the average business £13 each - half an hour of a "senior manager's" time. It has also emerged that the immigration cap for skilled workers announced earlier this month had not been properly costed. Abigail Morris, policy adviser at the British Chambers of Commerce, said: "We don't believe any regulations should come in if the impact assessment figures have not been verified."
There is more on this story at:

http://www.telegraph.co.uk/finance/yourbusiness/
8443664/Abolition-of-compulsory-retirement-not-costed.html

 

Most small businesses unaware of cheque guarantee card phase-out

Three quarters of small firms in Britain are not aware that the cheque card guarantee scheme will be phased out from June, with more than four in ten still using cheques for everyday transactions, according to new research from WorldPay. Almost half were unaware of plans to abolish the cheque completely by 2018, although these have been called into question after it emerged that a Treasury Select Committee is to consider how the move would affect users such as small businesses, sole traders and charities. Andrew Tyrie MP, who will chair the committee, said: "A decision of this size, which affects millions of people, businesses and charities, should not be imposed on us de facto."

There is more on this story at:
http://www.thisismoney.co.uk/work/small-business/article.html?in_article_id=530427&in_page_id=10

And:

http://www.guardian.co.uk/money/2011/apr/14/abolition-cheques-reconsidered-payments-council

Small firms facing hefty back-dated energy bills

Thousands of small businesses are being issued with back-dated energy bills reaching thousands of pounds, according to Consumer Focus. The watchdog has warned that while energy suppliers can 'back-bill' domestic customers for just one year's usage, for businesses this extends to six years. It says the issue accounts for 40% of its small business complaints, and is calling for a new voluntary code to regulate the practice. Audrey Gallacher, head of energy at Consumer Focus, said "energy suppliers shouldn't treat small businesses in the same way as they would multi-national corporations."
Read the Consumer Focus news release at:

http://www.consumerfocus.org.uk/news/action-needed-on-
suppliers’-shock-energy-bills-to-small-businesses

Struggling retailers opt for CVAs to avoid insolvency

The number of Company Voluntary Agreements (CVAs) secured in the retail sector was 15% higher last year than in 2009, according to new figures from chartered accountants Wilkins Kennedy. The firm said the increase bucked the trend for insolvencies in the sector, which fell by 18% overall to 1,290 in 2010. Director Anthony Cork commented: "The fact that landlords are increasingly prepared to accept CVAs suggests that recent experiences have taught them that allowing a company to go into administration is an even bigger risk."
Read the Wilkins Kennedy news release at:

http://www.wilkinskennedy.com/news-and-press/press-releases/
company-voluntary-arrangements-in-retail-sector-soar-15-in-the-last-year

Business support groups angry at appointment on new LEP leadership network

Representatives from UK business support groups have voiced their concerns after Local Government Secretary Eric Pickles announced that the British Chambers of Commerce (BCC) has been chosen to lead a national network of Local Enterprise Partnerships (LEPs), which will cost £300,000 to set up.

Organisations including the Federation of Small Businesses (FSB), the Institute of Directors (IoD) and the Forum of Private Business (FBP) have criticised the Department for Communities and Local Government's (CLG) decision to ask the BCC to lead the network of LEPs without going through a formal consultation or procurement process first.

Phil Orford, chief executive of the FBP said: "To discover that Government has been holding unilateral discussions with one business organisation to provide a networking body for the LEPs, without competitive tender is frankly surprising and disappointing and will raise questions about the localism agenda and public procurement policy."

The BCC will lead the new network which will apparently serve as a forum for the LEPs to share best practice, solve local issues and drive economic growth. The network will also act as an advocate for the LEPs in Whitehall. However, business groups are concerned that more diverse regional and local economic issues will not be taken into account if just one national organisation represents millions of businesses across the whole of the country.

John Walker, national chairman of the FSB said: "For LEPs to be truly effective they need to represent diverse business interests. Picking a single business organisation to run it in this way risks isolating both those businesses which are not a member of any membership body and those who are members of groups that haven't been included from LEPs."

Miles Templeman, director general of the IoD commented: "We question seriously the need to spend £300,000 of taxpayers' money on a body whose purpose is to lobby national Government on behalf of LEPs. No case has been made to [the IoD] on this arrangement."

Despite business groups being openly unimpressed with the set up, Mr Pickles was positive about the appointment in his announcement of the launch of the network: "The BCC came forward with a very strong proposal and with its existing business network across the country it is really well placed to anchor business at the centre of new local enterprise."

While business groups are in agreement that LEPs would benefit from a necessary degree of national co-ordination, they are also raising fair questions about the Government's commitment to localism and a more transparent public procurement policy.

New R&D funding scheme to fall short of its predecessor

A programme allowing small firms to apply for grants to research and develop new products has been re-launched with less funding, officials have admitted. The Grant for R&D is inviting applications for grants of up to £250,000 from small and medium-sized businesses seeking to develop prototypes or research new concepts or markets. A spokesman for the Technology Strategy Board, which will administer the scheme, said its budget was yet to be finalised, but admitted: "It is inevitable that the funding levels will not be as high. That is due to the deficit, which is the Government’s priority."

There is more on this story at:
http://www.telegraph.co.uk/finance/yourbusiness/8427417/Budget-for-small-company-RandD-grants-slashed.html

Project Merlin is failing to get banks lending, small businesses say

Most small businesses have seen no change in banks' approach to lending since Project Merlin was announced earlier this year, according to a new poll conducted by HotFrog. Some 70% said better access to funding would allow them to expand, with most of those claiming that they would hire at least one extra worker. However, despite promises that £76 billion would be earmarked for small and medium-sized businesses as part of the agreement between the Government and UK's biggest banks, more than three quarters of firms in the survey said they had not seen any change two months on.

There is more on this story at:
http://www.prnewswire.com/news-releases/uk-small-businesses-say-theres-no-wizardry-in-project-merlin-119237594.html

Legal advice for retailers on Royal Wedding holiday rules

Advice on how retailers should deal with staffing issues arising from the Royal Wedding public holiday later this month has been published by the Association of Convenience Stores (ACS). The advice piece, by the ACS's legal advisor Graham Randall, says "There is no statutory requirement that employers must allow their staff to take public holidays and unless the contract of employment or industry custom provides otherwise they are under no obligation to do so." He adds that if workers ask to take the day off on 29 April, employers should treat it like any other holiday request.

Read the Mr Randall's advice piece at:
http://www.acs.org.uk/en/Press_Office/e-bulletin/details/index.cfm/obj_id/DB48529A-D968-427B-B15DAF0E72355E91