CBI: Court system needs reform

The employment tribunal system is failing businesses and individuals, the Confederation of British Industry (CBI) says.

It is meant to offer claimants and informal companies, quick and cost-effective judgments, but instead the system is slow, legalistic and antagonistic, claims the lobbying group.

The organisation has called for a package of measures to speed up the court system, reduces costs for both sides, and make the system fairer.

It sets out three key steps to delivering this, including action to weed out weak claims and create the capacity to hear valid claims more quickly, encouraging early agreement on a fair settlement, and improving efficiency when in case does reach court.

CBI chief policy director Katja Hall says, 'It's always regrettable when the relationship between employer and employee breaks down to the point where a court claim is made. But when this happens, both sides deserve a system that is consistent, quick and legal keeps costs to a minimum.

' Instead, we are saddled with a court system that is expensive, stressful and time consuming for all parties.'

CBI: Government must do more to promote Britain to investors

The Confederation of British Industry (CBI) has called on the government to bolster the UK's attractiveness to investors warning that, without action, investment and jobs will be lost to other countries.

The lobbying group believes the UK's reputation as a good place to invest is under threat, foreign investment in the UK with falling significantly during the global recession, from $186.4 billion in 2007 to $45.7 billion in 2009.

Suggested measures include the stimulation of new market activity by taking such steps as opening up public services to private provision and accelerating the transition to a low-carbon economy.

The CBI also stresses the need to keep business taxes competitive, removing the 50 p tax rate as soon as the public finances allow, and developing the UK's skills base by supporting further business-led academies and extending apprenticeships.

CBI Director-General John Cridland says, ' We want the UK to be the best place for companies to invest because this is how we will create growth and jobs. But it is worrying how many business leaders are telling us that the UK no longer holds the same attraction it once did and are questioning whether they need to be here at all.

' With competition for capital international so fierce, the government must play up our strengths and remove the stumbling blocks to investment. Time isn 't on our side and we have less than five years to turn things around.'

Boost promising for manufacturing output

Recovery in the manufacturing sector looks set to continue, according to the Confederation of British Industry (CBI).
Of the 451 manufacturers that responded to the lobbying group's Quarterly Industrial Trends Survey, 36 per cent say they have seen an increase in output in the last three months, while 15 per cent say it has fallen, giving to rounded balance of + 20 per cent.

The success is driven by strong growth in both domestic (+ 15 per cent) and export (+ 24 per cent) orders, with the rates of growth at their fastest since April 1995 (+ 17 per cent and + 34 per cent respectively).
Demand and production are expected to continue rising over the next three months. Companies predict that output growth will be sustained at a similar pace to this quarter (+ 22 per cent).

At the same time, manufacturers expect domestic and export orders to continue to increase over the next quarter (+ 11 per cent for both), at rates well above their long-run averages.

CBI Director-General John Cridland says, ' The manufacturing recovery remains firmly on track.  Strong demand at home and abroad and rapid restocking over the past quarter have led to another solid rise in production, with growth expected to continue over the next quarter.'

SMEs not planning for pension reform

More than three quarters of small businesses have yet to put plans in place to deal with the impact of compulsory employer pension contributions, research finds.

A study of 300 businesses by BBS Consultants & Actuaries shows that employers are unprepared for the new legislation with 87 per cent of respondents reporting they had yet to agree their policies on dealing with the measures.

Two thirds have also failed to adjust their remuneration strategies for executives in light of pension tax relief changes, with less than a third using salary exchange as a way of mitigating National Insurance costs.

Compulsory employer pension contributions are a new requirement applying to all UK businesses regardless of size or turnover, which the government hopes will encourage more workers to save for retirement.

James Stanfield, CEO at BBS Consultants & Actuaries says, ' Make no mistake, every SME business will have to offer its employees the chance to join to pension scheme and will also have to pay compulsory employer pension contributions. The longer employers leave it the worse the impact could be for them.'

Web research up among budding entrepreneurs

Internet searches for start-up advice have risen by 25 per cent as budding entrepreneurs take to the web following the government's push to accelerate enterprise in the UK.

Research by information services company Experian shows that searches are already 50 percent higher than during the same period in 2010, suggesting a growing number of people are interested in running their own business.

SmallBusiness.co.uk is cited by the study as a top resource for business leaders.

Simon Streat, managing director of small and medium enterprise at Experian UK & Ireland says, ' start-ups need all the advice and support they can get if they are to lead the UK into growth. Too many currently decline or cease trading within a few years as their owners do not always possess the business expertise to go with their creative vision.

' It is very encouraging to see a high volume of web traffic fuelled by budding entrepreneurs looking to learn the basics of starting a business. However it is vital for future business owners to look beyond the short-term and seek advice on how to deliver meaningful and sustained growth - giving them to solid grounding on issues such as how to secure funding, win customers, source suppliers and mitigate risks.'

Social media uptake high among SMEs

Small businesses are embracing social media to source new business and stay in touch with existing customers, research finds.

According to a survey of 862 small and medium enterprises by CRM vendor Really Simple Systems 62 per cent report that they now use social networking in everyday business.

Some 92 per cent of those using it do so to keep in touch with existing customers, whilst 78 per cent are using it to find new customers.
LinkedIn is the most widely-used social media tool by small businesses, with 83 per cent of social networking businesses using the tool.

Facebook (used by 72 per cent of respondents) is the next most popular means of conducting 'social business', followed closely by Twitter (65 per cent).

"John Paterson, CEO of Really Simple Systems says, ' We all know that enterprise companies are rapidly adopting social media as a means of communicating with existing customers and prospects, but it's surprising to see that adoption among small businesses was so advanced."

Businesses support scrapping of retirement age

More than three quarters of small and medium-sized enterprises (SMEs) in the UK support the end of the UK's compulsory retirement age, finds research.

According to a study by Orange of more than 2,000 SMEs, some 77 per cent think employees should be judged on merit, not on age.

The compulsory retirement age is due to be abolished today, and the move has won favour with business owners who are keen to lock in key skills and find a way to help essential staff work as long as they want to.

More than half of the companies questioned believe more experienced employees can help younger staff develop in their own roles.

Martin Lyne, SME director at Orange2 says, ' With large sections of the UK economy now built on knowledge rather than manual labour or manufacturing, is one of the most valuable resources many businesses have experience. Understandably, many businesses don 't want to lose their most knowledgeable workers.'