News Archive - June 2013
SME confidence hits three-year high - 25.6.2013
SMEs are highly optimistic about their turnover prospects and are showing increased business confidence, two separate reports released this week have shown.
Confidence amongst small businesses hit a three-year high across all UK regions and most sectors, according to the Small Business Index from the Federation of Small Businesses (FSB).
The FSB's index reached 15.9 points in the second quarter of 2013 - 9.6 points higher than the start of 2013 and the second highest reading since the index began in 2010.
Other key findings from the FSB show :
- More firms expect to increase their turnover, grow, and hire more staff in the coming months
- An increase in exports from small firms, with export growth expected to increase further in the coming months
- Rising energy prices remain the biggest cause of increased business costs.
National chairman for the FSB, John Allan, said the survey was good news but that Chancellor George Osborne needed to do
more.
The Chancellor must use the Spending Review to build on this optimism. While there are positive signs, inflation and not being able to access finance will affect how quickly, and how much, small firms can grow and create jobs.
Research by YouGov also found that nearly a third (31 per cent) of SMEs believe they will see an increase in profit in the 2013-14
financial year compared to last year, while 41 per cent think their turnover will remain the same.
Medium sized companies - those with 50 to 249 employees - are most optimistic about the year ahead, with nearly half expecting an increase in turnover.
SMEs in the financial, accounting and consulting sectors are most optimistic about an increase in turnover.
Confidence amongst small businesses hit a three-year high across all UK regions and most sectors, according to the Small Business Index from the Federation of Small Businesses (FSB).
The FSB's index reached 15.9 points in the second quarter of 2013 - 9.6 points higher than the start of 2013 and the second highest reading since the index began in 2010.
Other key findings from the FSB show :
- More firms expect to increase their turnover, grow, and hire more staff in the coming months
- An increase in exports from small firms, with export growth expected to increase further in the coming months
- Rising energy prices remain the biggest cause of increased business costs.
National chairman for the FSB, John Allan, said the survey was good news but that Chancellor George Osborne needed to do
more.
The Chancellor must use the Spending Review to build on this optimism. While there are positive signs, inflation and not being able to access finance will affect how quickly, and how much, small firms can grow and create jobs.
Research by YouGov also found that nearly a third (31 per cent) of SMEs believe they will see an increase in profit in the 2013-14
financial year compared to last year, while 41 per cent think their turnover will remain the same.
Medium sized companies - those with 50 to 249 employees - are most optimistic about the year ahead, with nearly half expecting an increase in turnover.
SMEs in the financial, accounting and consulting sectors are most optimistic about an increase in turnover.
Red tape freeze extended - 10.6.2013
From 2014, businesses with fewer than 50 employees are to benefit from the same regulatory exemptions that currently
apply to smaller businesses, as the government continues its drive to reduce red tape.
Firms will also undergo an assessment process to exempt them from new regulations if there is any evidence they will result in 'disproportionate burdens' that could stunt business growth.
Announcing the extension, business minister Michael Fallon said that small businesses were vital in creating new jobs and balancing the UK economy.
Whitehall departments will be required to consider a range of mitigation strategies before introducing new legislation, including:
- providing extra time for businesses to comply with new regulations
- simplifying record keeping requirements
- tailoring advice and guidance for small businesses
- varying regulations according to the size of business.
Michael Fallon said: "On my watch, new regulations will now only extend to small businesses if they are essential, justified, and where disproportionate burdens are fully mitigated. And where regulation is not fit for purpose it will be reformed or binned."
The new Small and Micro Business Assessment (SMBA) builds upon the existing Micro-Business Moratorium, introduced in Budget 2011.
The Institute of Directors and the Federation of Small Businesses both welcomed the SMBA, saying many small businesses would benefit from the reduction of regulation and administration.
apply to smaller businesses, as the government continues its drive to reduce red tape.
Firms will also undergo an assessment process to exempt them from new regulations if there is any evidence they will result in 'disproportionate burdens' that could stunt business growth.
Announcing the extension, business minister Michael Fallon said that small businesses were vital in creating new jobs and balancing the UK economy.
Whitehall departments will be required to consider a range of mitigation strategies before introducing new legislation, including:
- providing extra time for businesses to comply with new regulations
- simplifying record keeping requirements
- tailoring advice and guidance for small businesses
- varying regulations according to the size of business.
Michael Fallon said: "On my watch, new regulations will now only extend to small businesses if they are essential, justified, and where disproportionate burdens are fully mitigated. And where regulation is not fit for purpose it will be reformed or binned."
The new Small and Micro Business Assessment (SMBA) builds upon the existing Micro-Business Moratorium, introduced in Budget 2011.
The Institute of Directors and the Federation of Small Businesses both welcomed the SMBA, saying many small businesses would benefit from the reduction of regulation and administration.
Retailers boosted by strong sales and price deflation - 6.6.2013
Retail sales values were up by 1.8 per cent in May, compared like-for-like with May 2012, according to figures from the British Retail Consortium (BRC). The BRC also found marginal deflation in overall shop prices.
The 0.1 per cent deflation in shop prices is the first time the measure has fallen in three and a half years and will be welcome news for shoppers.
Retailers will also be boosted by the figures, which the BRC says are partly due to the offer and uptake of promotional discounts intended to shift slow-selling stock. Furniture and flooring was the top performing category for the first time in more than two years.
On the strong sales performance, the BRC's Helen Dickinson said: "Retailers pulled off a good result in May despite contending with topsy-turvy temperatures and continued economic difficulties.
"The signs are that retailers read conditions well in May and adapted their offer accordingly. Customers are still price-conscious but responding well to good deals, especially for big-ticket items. But volatile economic conditions mean that this will remain a delicate balancing act for some time to come."
Commenting on the fall in shop prices, Dickinson said: "It bears out yesterday's sales figures, which showed that retailers used a range of promotions and offers to drive demand and shift seasonal stock which didn't sell well during the prolonged cold snap earlier in spring.
"Times remain tough, but it seems that retailers are reading the market well and doing what they can to offer customers the best possible value on their shopping."
The 0.1 per cent deflation in shop prices is the first time the measure has fallen in three and a half years and will be welcome news for shoppers.
Retailers will also be boosted by the figures, which the BRC says are partly due to the offer and uptake of promotional discounts intended to shift slow-selling stock. Furniture and flooring was the top performing category for the first time in more than two years.
On the strong sales performance, the BRC's Helen Dickinson said: "Retailers pulled off a good result in May despite contending with topsy-turvy temperatures and continued economic difficulties.
"The signs are that retailers read conditions well in May and adapted their offer accordingly. Customers are still price-conscious but responding well to good deals, especially for big-ticket items. But volatile economic conditions mean that this will remain a delicate balancing act for some time to come."
Commenting on the fall in shop prices, Dickinson said: "It bears out yesterday's sales figures, which showed that retailers used a range of promotions and offers to drive demand and shift seasonal stock which didn't sell well during the prolonged cold snap earlier in spring.
"Times remain tough, but it seems that retailers are reading the market well and doing what they can to offer customers the best possible value on their shopping."
