News Archive - January 2014
2014 Budget 'will help small businesses', pledges Chancellor - 30.1.2014
Chancellor George Osborne has pledged to address the issues facing the UK’s small businesses, in his forthcoming Budget.
Addressing the Federation of Small Businesses policy conference, the Chancellor said that the Government is keen to hear the views of small business representatives ahead of the Spring Budget, which will take place on Wednesday 19 March.
The Chancellor emphasised a number of business measures recently announced by the Government, including the introduction of the new Employment Allowance, which from April 2014 will grant every UK business and charity up to £2,000 off their employer national insurance contributions bill.
The move is expected to remove over 400,000 businesses from the requirement to pay employer national insurance altogether.
‘We are very much in listening mode. We are hungry for your ideas about what we can do to help small businesses,’ said the Chancellor.
We can help with all aspects of running a business – please contact us for advice and assistance.
Addressing the Federation of Small Businesses policy conference, the Chancellor said that the Government is keen to hear the views of small business representatives ahead of the Spring Budget, which will take place on Wednesday 19 March.
The Chancellor emphasised a number of business measures recently announced by the Government, including the introduction of the new Employment Allowance, which from April 2014 will grant every UK business and charity up to £2,000 off their employer national insurance contributions bill.
The move is expected to remove over 400,000 businesses from the requirement to pay employer national insurance altogether.
‘We are very much in listening mode. We are hungry for your ideas about what we can do to help small businesses,’ said the Chancellor.
We can help with all aspects of running a business – please contact us for advice and assistance.
Government announces 'deregulation drive' for small businesses - 28.1.2014
The Government has announced a package of measures aimed at reducing the red tape burden for the UK’s small businesses.
Speaking at a Federation of Small Businesses (FSB) conference, Prime Minister David Cameron pledged to take further action on red tape, with more than 3,000 rules to be scrapped or amended.
Business groups have broadly welcomed the announcement, with the British Chambers of Commerce acknowledging the progress made on domestic regulations, but calling on the Government to include tax changes and EU regulations in its ‘one in, two out’ policy for new regulations.
Meanwhile, the Forum of Private Business (FPB) welcomed the news but urged the Government to avoid making frequent changes to regulations in the future.
The FPB’s Alexander Jackman commented, ‘The constant churn of employment law regulations provides as much of a burden to small businesses, who have to invest time and resources – or expensively outsource – in order to understand areas. Parental leave is a prime example. Businesses accept the need for it, but are frustrated that periods of leave and processes constantly change’.
Speaking at a Federation of Small Businesses (FSB) conference, Prime Minister David Cameron pledged to take further action on red tape, with more than 3,000 rules to be scrapped or amended.
Business groups have broadly welcomed the announcement, with the British Chambers of Commerce acknowledging the progress made on domestic regulations, but calling on the Government to include tax changes and EU regulations in its ‘one in, two out’ policy for new regulations.
Meanwhile, the Forum of Private Business (FPB) welcomed the news but urged the Government to avoid making frequent changes to regulations in the future.
The FPB’s Alexander Jackman commented, ‘The constant churn of employment law regulations provides as much of a burden to small businesses, who have to invest time and resources – or expensively outsource – in order to understand areas. Parental leave is a prime example. Businesses accept the need for it, but are frustrated that periods of leave and processes constantly change’.
Business reacts to proposed minimum wage rise - 20.1.2014
Insisting that the economy can afford it, Chancellor George Osborne has proposed an above-inflation rise in the national minimum wage.
The current rate, which is set at £6.31 for people over the age of 21, has not increased commensurate to inflation since 2008 and has therefore fallen in real terms.
The minimum wage rate is set by the independent Low Pay Commission, which includes representatives of business, unions and academia. It is due to make its latest recommendations on the minimum wage next month.
Business Secretary Vince Cable, who oversees the commission, said ‘I want living standards to go up for the whole country as we fix the economy’.
With inflation set at 2%, the Chancellor’s proposed minimum wage increase is 10% – raising it to £7 an hour by 2015.
Alexander Jackman, Head of Policy at the Forum of Private Business (FPB), said they are ‘opposed to increases in the national minimum wage until the UK has seen a sustained recovery and businesses are in a position to afford it. We have not yet reached that point’.
The Confederation of British Industry (CBI) Director-General John Cridland, agreed with the sentiment, saying, ‘An unaffordable rise would end up costing jobs and hit smaller businesses in particular. Any increase in wages must reflect improved productivity’.
The current rate, which is set at £6.31 for people over the age of 21, has not increased commensurate to inflation since 2008 and has therefore fallen in real terms.
The minimum wage rate is set by the independent Low Pay Commission, which includes representatives of business, unions and academia. It is due to make its latest recommendations on the minimum wage next month.
Business Secretary Vince Cable, who oversees the commission, said ‘I want living standards to go up for the whole country as we fix the economy’.
With inflation set at 2%, the Chancellor’s proposed minimum wage increase is 10% – raising it to £7 an hour by 2015.
Alexander Jackman, Head of Policy at the Forum of Private Business (FPB), said they are ‘opposed to increases in the national minimum wage until the UK has seen a sustained recovery and businesses are in a position to afford it. We have not yet reached that point’.
The Confederation of British Industry (CBI) Director-General John Cridland, agreed with the sentiment, saying, ‘An unaffordable rise would end up costing jobs and hit smaller businesses in particular. Any increase in wages must reflect improved productivity’.
National insurance cuts 'will save £200 per employee' - 14.1.2014
Forthcoming changes to the national insurance regime will save an average of £200 per employee by the end of this Parliament, the Government has announced.
April 2014 will see the introduction of the new Employment Allowance, which will reduce employers’ national insurance bills by up to £2,000.
The measure is expected to benefit up to 1.25 million businesses, with around a third of employers being taken out of the national insurance framework altogether.
In addition to the new allowance, April 2015 will see the abolition of employer national insurance for the under-21s.
Commenting on the measures, Chancellor George Osborne said, ‘Small businesses make a vital contribution to our economy, creating jobs and stimulating growth’.
‘Effectively providing cashback on jobs, the Employment Allowance will help these businesses achieve their goals and help the UK succeed in the global race.’
April 2014 will see the introduction of the new Employment Allowance, which will reduce employers’ national insurance bills by up to £2,000.
The measure is expected to benefit up to 1.25 million businesses, with around a third of employers being taken out of the national insurance framework altogether.
In addition to the new allowance, April 2015 will see the abolition of employer national insurance for the under-21s.
Commenting on the measures, Chancellor George Osborne said, ‘Small businesses make a vital contribution to our economy, creating jobs and stimulating growth’.
‘Effectively providing cashback on jobs, the Employment Allowance will help these businesses achieve their goals and help the UK succeed in the global race.’
Business confidence 'improving' - 6.1.2014
‘Quiet optimism’ among manufacturers has been reported in a survey by the Engineering Employers’ Federation (EEF).
Executives predict investments, exports and profits will grow over the coming months. Chief Executive of the EEF, Terry Scuoler, said, ‘Manufacturers are telling us they expect to make a greater contribution to growth, investment and jobs this year’.
Reports by Lloyds Banking Group also suggest that business confidence is on the rise. Their survey of over 1,500 firms shows that confidence is at its highest in 20 years, with investment intentions at their highest level in 19 years.
Meanwhile, a separate survey of 122 chief financial officers suggests that bank borrowing is now the most attractive source of funding – with easier access meaning more planned expansion this year.
Chancellor George Osborne may draw on this news in Monday’s speech reaffirming that more spending cuts will be necessary in 2014.
Executives predict investments, exports and profits will grow over the coming months. Chief Executive of the EEF, Terry Scuoler, said, ‘Manufacturers are telling us they expect to make a greater contribution to growth, investment and jobs this year’.
Reports by Lloyds Banking Group also suggest that business confidence is on the rise. Their survey of over 1,500 firms shows that confidence is at its highest in 20 years, with investment intentions at their highest level in 19 years.
Meanwhile, a separate survey of 122 chief financial officers suggests that bank borrowing is now the most attractive source of funding – with easier access meaning more planned expansion this year.
Chancellor George Osborne may draw on this news in Monday’s speech reaffirming that more spending cuts will be necessary in 2014.
