The British Chambers of Commerce are carrying out a snap poll on “Access to Finance” this week.
The Snap poll is carried out over 3 days and starting from today, closing at midnight on Thursday.
The BCC have commented as follows:
“Considering the continuing economic challenges faced by UK businesses, we would like to quickly capture your views on how access to finance is shaping the current business environment.
Conducting this very short snap poll of Chamber members will enable us to represent the needs of business as effectively as possible at a time when major changes to the business finance system are being considered both here in the UK and globally.”
Annual CPI inflation was 2.5% in August 2012, down from 2.6% in July
Annual RPI inflation was 2.9% in August 2012, down from 3.2% in July
Commenting on the inflation figures for August 2012 published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“The fall in inflation in August was widely expected, following setbacks in July. Current trends suggest that inflation will be down to 2% at the end of the year, and will fall slightly below the target during 2013. There are risks however, that oil and food prices may rise in the coming months, which may put upward pressure on inflation again. Falling inflation benefits the UK economy as it reduces the squeeze on businesses and consumers and underpins domestic demand.
“Since UK inflation has been above the 2% target for prolonged periods in recent years, a temporary fall below this next year should not be a cause for concern. With this in mind, we still believe that the Bank of England should not use additional QE to limit falls in inflation. Instead, the MPC and the government should concentrate on measures that will directly boost bank lending. This can be done through the Funding for Lending scheme and more significantly, through the early creation of a business bank.”
Commenting on the proposals announced by Vince Cable on the proposed employment law changes, Caroline Williams CEO Norfolk Chamber said:
“Norfolk employers will be encouraged that the government is taking steps to reduce the burden of the employment system and create a more flexible labour market. Dismissal is always a last resort, but is at times necessary to protect a business and other members of staff. The fear of malicious tribunal claims and an unnecessarily antagonistic dismissal process has a chilling effect on employment. We would urge the government to move swiftly from consultation to implementation on settlement agreements and lower tribunal awards, as these proposals will boost confidence when businesses on the ground can see them in action.
On settlement agreements:
“In those unfortunate circumstances when businesses have to end the employment relationship, settlement agreements provide a speedy and consensual way to avoid disputes. Companies need to be confident that they can offer an employee a settlement to end the relationship without fear of future claims. We support moves by the government to make the process of offering a settlement easier to navigate without paying for specialist advice.”
On limiting tribunal awards:
“The current maximum award for unfair dismissal vastly exceeds the reality of most cases, but prevents many employers from seeking justice, and puts many more off hiring all together. The upper limit should be reduced and this would significantly increase employers’ confidence to challenge unmeritorious claims and recruit more staff.”
On tribunal reforms:
“These measures form part of a broader government agenda to reform the tribunal system and ensure it becomes less of a barrier to employment and economic prosperity. Although employers have welcomed efforts to deter vexatious claims by introducing fees for claimants, that policy will be undermined if the system of remissions means that just a quarter have to pay the full fee. The government must get a grip and ensure that all those who can afford the fee are made to pay.”
On additional changes needed to boost employment and confidence:
“These measures will boost employers’ confidence and lead them to create additional jobs, but will be undermined by upcoming government proposals on extending the right to request flexible working and shared parental leave. Extending the right to request to all workers will make it more difficult for employers to accommodate requests from those with caring duties. Similarly while we support the objective of helping mothers who want to return to work to do so, we are yet to see proposals on flexible parental leave that are workable.”
The UK’s aviation policy is under wide-ranging scrutiny at the moment, with attention variously on the desirability, or otherwise, of extending Heathrow and the possibility of creating a “Boris island” airport in the Thames.
The Director General of the British Chambers of Commerce (BCC), John Longworth, has widened the argument by suggesting that Stansted Airport can play an important role in boosting international trade and connectivity in support of British business.
On a recent visit to the UK’s fourth busiest airport, he met Stansted’s Managing Director, Nick Barton, to discuss a range of issues affecting aviation and business competitiveness, including aviation policy, infrastructure investment, export opportunities and access to finance.
He described Stansted as a superb airport with world-class infrastructure and noted that it has a burgeoning air freight market with significant spare capacity to take more flights, which would help to boost international trade.
“The UK desperately needs a coherent and comprehensive aviation policy for the short-, medium- and long-term,” Mr Longworth said. “Stansted clearly has a role to play.”
Mr Barton said that the airport had the permissions and facilities in place to serve 35 million passengers a year on its single runway and he was sure that it could help to build the international trade links that are vital for British business and prosperity.
A firm is facing a fine of £10,000 after it failed to inform HM Revenue and Customs (HMRC) that it had changed its name – despite the fact that all it had done was change from a partnership to a limited company.
The unnamed firm had, according to the Forum of Private Business (FPB), an exemplary VAT-paying record and had always submitted its tax returns on time.
What is more, the change of name did not affect its VAT number and HMRC did not lose out on any tax payments. The firm simply failed to tell the VAT authorities that it now had “ltd” after its name.
This meant it fell foul of VAT notification liabilities contained in the Finance Act 1985, and later the VAT Act 1994, and landed the company with a £30,000 fine – since reduced following interventions by accountants and the FPB.
The Forum’s Tax Adviser Andrew Needham said: “It is important that all small businesses are aware they could face steep fines unless HMRC is kept fully updated.”
However, he went on, this heavy-handed approach is the very opposite of the support that is desperately needed at this difficult time and HMRC risks further alienating firms hit by its disproportionate, targeted business records checks regime and widely-reported poor levels of service.
Chancellor George Osborne and Business Secretary Vince Cable have both announced that their Departments are considering the creation of a new bank to improve the flow of credit to small and medium-sized firms.
This comes as good news to the British Chambers of Commerce (BCC) which has long championed the idea and has now set out a detailed case for the establishment of a state-backed British Business Bank.
This argues that the Bank should be a clear “first port of call” for all viable companies seeking growth finance but should complement, not cannibalise, existing banks and other lenders, with commercial lenders having a “first right of refusal” on all applications received by the Business Bank.
The BCC suggests that its plan would particularly help dynamic and fast-growing companies, many of whom report difficulty accessing finance. It would also address “discouraged demand” among some existing bank customers.
The Chambers’ paper also notes that the Bank could help companies seeking mezzanine, export or supply-chain finance support, which it sees as being key to rebalancing the economy in the years to come.
Director of Policy and External Affairs, Dr Adam Marshall, said: “Our new report addresses many of the obstacles to the creation of a business bank, and shows that a new institution is both realistic and achievable. Ministers have a golden opportunity to pass enabling legislation for a business bank this autumn, and to dedicate their attention to ensuring that it is operational before the end of this Parliament.”
World trade is predicted to grow by 75% in the next 15 years, with merchandise trade volumes set to climb to US$48 trillion by 2025, up from US$27.2 trillion today.
That at least is the view of the International Chamber of Commerce (ICC), which is concerned that new financial solutions will be needed to enable corporates to maintain a resilient supply chain.
Accordingly, the ICC Banking Commission is organising its first-ever ICC Supply Chain Financing Conference, to be held in Paris on 4 and 5 October 2012.
Innovations in working capital solutions are more vital in today’s economic climate than they have ever been before, the ICC said, with companies and suppliers under conflicting pressures to improve payment terms, reduce prices and improve cash flow.
“From today’s emerging markets, new international powerhouses will arise to further drive world trade growth,” said Andre Casterman, Conference Co-Chair, Head of Banking and Trade Solutions, SWIFT and Co-Chair of the ICC Bank Payment Obligation (BPO) Project.
To support such growth in a volatile economic climate, he explained, new supply chain finance rules are being established. BPO rules, for example, offer a new instrument that combines the benefits of the letter of credit with those of open account trade.
The conference will combine educational sessions on different supply chain finance techniques while drawing on case studies and examples of best practice. Topics will be divided between invoice-based and purchase order-based supply chain finance techniques.
Jointly hosted by British Expertise and the British and Colombian Chamber of Commerce (B&CCC), a meeting to be held in London in October will explain why these organisations believe that the time is right to see Colombia as a market.
Those attending will hear the results of B&CCC’s newly completed research into the project opportunities created by the Colombian Government’s commitment to develop the country’s infrastructure, and will be provided with a copy of the report.
Carlos Sanchez, a lawyer with the firm of Duran & Osorio, will summarise the legal context of doing business in the fourth largest country in South America and will examine Colombian public-private partnership contracts and briefly describe how to take part in public procurement processes.
The meeting will be held at the London offices of British Expertise (10 Grosvenor Gardens) on 1 October at 3.30pm.
British Expertise is organising a UK infrastructure mission to visit Bogota and Cartagena from 19-23 November, to coincide with the Colombian Infrastructure Chamber Congress, the country’s largest infrastructure congress.
The October meeting will provide the background to the potential benefit of participating in the mission and will explain how, over the next eight years, Colombia will invest US$55 billion in its infrastructure, covering airports, ports, railways, hospitals, schools and roads.
Further details of the meeting, which is free to attend, can be found here.
The Middle East Association, in partnership with the Saudi Committee for International Trade, warmly invites you to attend this year’s 9th Opportunity Arabia Seminar on Monday 1st October at One Great George Street, London SW1.
Opportunity Arabia 9 aims to introduce British companies to a thriving and growing market place and to raise their awareness of the limitless business opportunities that Saudi Arabia has to offer.
David Lloyd, Senior Consultant at the Middle East Association will be coming to speak at our “Spotlight on Saudi Arabia” event taking place on 5 March 2013.
Commenting on Vince Cable’s industrial strategy speech, Caroline Williams CEO Norfolk Chamber of Commerce, said:
“It appears that Vince Cable has listened to business’ plea for greater long-term thinking in policy-making, and has set out some sensible steps that could help to improve the business environment in the Norfolk. His proposals around industrial strategy make an important contribution to moving Britain toward a new model economy. A successful industrial strategy isn’t about picking winners or losers, but about creating the right environment for all businesses to thrive.
“While businesses will be heartened to hear strong support for the establishment of a business bank, this must be more than just a vehicle for existing government schemes. A brand new, fully-fledged business bank is needed to lend to new and growing companies, many of whom report difficulty accessing finance. Companies are clear, though, that nothing less than a ‘full service’ business bank will do – a rebranding exercise for existing government schemes or one that uses existing bank infrastructure is not enough. Businesses need policies that will help over the medium- and long-term, but boost confidence now. The government can do exactly that by addressing the problem of access to finance faced by so many of Norfolk’s firms.
“We have long said that the skills system is failing Norfolk businesses, with resources following the choices of individual learners, rather than the needs of business. The Employer Ownership pilots announced today are an important first step to ensuring that funding actually delivers the training that our companies need in order to grow. We support a further expansion of this approach, with employers having a greater say in how training funds are spent”.
UK trade deficit in good and services was £1.5bn in July, compared with a deficit of £4.3bn in June
“The large decline in the July trade deficit more than reversed the setbacks recorded in June. Underlying export volumes rose in the last three months, while import volumes fell. We know that Norfolk exporters are facing major challenges due to problems in the eurozone and the global economy as a whole, so progress towards rebalancing will be slow and painful.
“However, the latest trade figures show encouraging progress, and reinforce our hope that the UK economy will return to positive growth in the third quarter of 2012. UK exports to non-EU countries were slightly higher than exports to the EU in the last three months, which shows a shift in the traditional pattern where exports to the EU are usually much stronger.
“These developments show that British including those from Norfolk exporters are making the right decisions and moving to faster-growing areas outside the EU. We have always stressed that exporting companies have huge untapped potential to expand, but need the right support to help them compete and break into new markets. We have developed a Global Market Place series of six seminars to assist Norfolk businesses to get into new markets and hear from industry experts. Firmer action from government in key areas such as trade finance, promotion and insurance would be a good start, but this needs to be part of a general shift in priorities towards more policies to boost growth.”
UK trade deficit in good and services was £1.5bn in July, compared with a deficit of £4.3bn in June
Commenting on the trade figures for July 2012, published today by the ONS, Tracey Howard international Trade Director Norfolk Chamber of Commerce, said:
“The large decline in the July trade deficit more than reversed the setbacks recorded in June. Underlying export volumes rose in the last three months, while import volumes fell. We know that Norfolk exporters are facing major challenges due to problems in the eurozone and the global economy as a whole, so progress towards rebalancing will be slow and painful.
“However, the latest trade figures show encouraging progress, and reinforce our hope that the UK economy will return to positive growth in the third quarter of 2012. UK exports to non-EU countries were slightly higher than exports to the EU in the last three months, which shows a shift in the traditional pattern where exports to the EU are usually much stronger.
“These developments show that British including those from Norfolk exporters are making the right decisions and moving to faster-growing areas outside the EU. We have always stressed that exporting companies have huge untapped potential to expand, but need the right support to help them compete and break into new markets. We have developed a Global Market Place series of six seminars to assist Norfolk businesses to get into new markets and hear from industry experts. Firmer action from government in key areas such as trade finance, promotion and insurance would be a good start, but this needs to be part of a general shift in priorities towards more policies to boost growth.”