News Archive - December 2013
High Street sales 'bounce back' - 23.12.2013
Retail sales have experienced a welcome recovery in the year to December, according to a new report from the Confederation of British Industry (CBI).
The CBI’s latest Distributive Trades Survey revealed that grocers, department stores and clothing shops saw a strong increase in sales, following a previous fall in the year to November.
Sales are expected to continue to grow strongly in the year to January.
In total, 48% of respondents stated that sales had increased on a year ago, with 31% expecting the growth to continue in January.
Barry Williams, Chair of the CBI Panel said, ‘Customers have clearly held off spending through the Autumn and we’re only now seeing them start to hit the stores’.
‘Retailers are now gearing up for the crucial pre-Christmas week and are optimistic for the new year.’
An estimated 15 million people are expected to visit the shops today, spending an anticipated £2.6m a minute.
The CBI’s latest Distributive Trades Survey revealed that grocers, department stores and clothing shops saw a strong increase in sales, following a previous fall in the year to November.
Sales are expected to continue to grow strongly in the year to January.
In total, 48% of respondents stated that sales had increased on a year ago, with 31% expecting the growth to continue in January.
Barry Williams, Chair of the CBI Panel said, ‘Customers have clearly held off spending through the Autumn and we’re only now seeing them start to hit the stores’.
‘Retailers are now gearing up for the crucial pre-Christmas week and are optimistic for the new year.’
An estimated 15 million people are expected to visit the shops today, spending an anticipated £2.6m a minute.
Small businesses 'must plan now' for auto-enrolment - 19.12.2013
Small businesses are being urged to take steps now to ensure that they are fully prepared for the introduction of the new pensions auto-enrolment system.
The new rules, which are being phased in over a number of years, require employers to automatically enrol all eligible members of staff into a workplace pension scheme, and to pay a minimum contribution into the fund.
However, the Chartered Institute of Personnel and Development (CIPD) has warned that many small firms are likely to face challenges when implementing the new system, due to limited resources and a lack of expertise.
A survey conducted by the organisation has suggested that while many larger firms have successfully implemented auto-enrolment since its launch in 2012, a significant proportion of small and medium-sized businesses are concerned about the costs and potential complications involved in adopting the scheme.
More than a quarter of SMEs are expecting to reduce pay growth, while a fifth are anticipating the need to freeze pay, in order to absorb the additional costs. Nearly a quarter of firms believe there may be an impact on other aspects of pay, including bonuses and overtime.
Charles Cotton of the CIPD commented, ‘While large companies tend to have long established traditions of paying in to employee pensions, for many SMEs this is their first foray into the world of pensions. They are unlikely to have access to the same levels of expertise or support networks as their larger counterparts and, as our survey reveals, many fear that it could be a costly exercise for their business’.
‘However, with early planning and preparation SMEs can overcome any challenges and realise the opportunity that auto-enrolment offers,’ he added.
The new rules, which are being phased in over a number of years, require employers to automatically enrol all eligible members of staff into a workplace pension scheme, and to pay a minimum contribution into the fund.
However, the Chartered Institute of Personnel and Development (CIPD) has warned that many small firms are likely to face challenges when implementing the new system, due to limited resources and a lack of expertise.
A survey conducted by the organisation has suggested that while many larger firms have successfully implemented auto-enrolment since its launch in 2012, a significant proportion of small and medium-sized businesses are concerned about the costs and potential complications involved in adopting the scheme.
More than a quarter of SMEs are expecting to reduce pay growth, while a fifth are anticipating the need to freeze pay, in order to absorb the additional costs. Nearly a quarter of firms believe there may be an impact on other aspects of pay, including bonuses and overtime.
Charles Cotton of the CIPD commented, ‘While large companies tend to have long established traditions of paying in to employee pensions, for many SMEs this is their first foray into the world of pensions. They are unlikely to have access to the same levels of expertise or support networks as their larger counterparts and, as our survey reveals, many fear that it could be a costly exercise for their business’.
‘However, with early planning and preparation SMEs can overcome any challenges and realise the opportunity that auto-enrolment offers,’ he added.
2014 Budget will be on 19th March, says Osborne - 12.12.2013
The 2014 Budget will take place on Wednesday 19 March, the Chancellor George Osborne has revealed.
Osborne made the announcement when speaking before the House of Commons Treasury Select Committee, where he is giving evidence on his recent Autumn Statement.
Delivering his Autumn Statement earlier this month, the Chancellor said he expects the UK to make a ‘small surplus’ in 2018/19.
Meanwhile, the independent Office for Budget Responsibility (OBR) more than doubled its UK growth estimate for 2013, from 0.6% to 1.4%. The organisation also upgraded its growth forecasts for 2014 from 1.8% to 2.4%
2013 Autumn Statement: Key measures for business - 5.12.2013
Chancellor George Osborne’s 2013 Autumn Statement contained a number of measures aimed at helping businesses. The measures include a new cap on future increases in business rates, an extension of the Small Business Rate Relief scheme for another year, and help for smaller high street businesses.
The Chancellor announced that business rates increases will be capped at 2%, rather than next year’s expected increase of 3.2%, cutting the tax bill for business owners by around £900m.
Commenting on the news, John Allan, National Chairman for the Federation of Small Businesses (FSB) said that action on business rates was the FSB’s top priority and ‘extending the doubling of small business rates relief will be welcomed by many’.
The Chancellor also announced that businesses with properties worth up to £50,000 will receive a discount in their business rates, resulting in a saving of £1,000 per business.
Other measures announced include the abolishment of employer national insurance contributions for employees under the age of 21, and new tax reliefs for the shale gas and creative industries.
John Longworth, Director General of the British Chambers of Commerce, said that although the measures implemented in the Autumn Statement were positive for business, they were ‘not strong enough to boost companies’ cash flow and investment’, and that the Chancellor ‘should have been bolder, freezing business rates entirely’.
The Chancellor announced that business rates increases will be capped at 2%, rather than next year’s expected increase of 3.2%, cutting the tax bill for business owners by around £900m.
Commenting on the news, John Allan, National Chairman for the Federation of Small Businesses (FSB) said that action on business rates was the FSB’s top priority and ‘extending the doubling of small business rates relief will be welcomed by many’.
The Chancellor also announced that businesses with properties worth up to £50,000 will receive a discount in their business rates, resulting in a saving of £1,000 per business.
Other measures announced include the abolishment of employer national insurance contributions for employees under the age of 21, and new tax reliefs for the shale gas and creative industries.
John Longworth, Director General of the British Chambers of Commerce, said that although the measures implemented in the Autumn Statement were positive for business, they were ‘not strong enough to boost companies’ cash flow and investment’, and that the Chancellor ‘should have been bolder, freezing business rates entirely’.
