Businesses concerned about paternity leave changes

More than half of managers say that they expect additional paternity leave requirements to be detrimental to their companies

Business owners are worried about the potential damage caused by this month's changes to paternity leave, research finds.

According to a survey by the British Chamber of Commerce of 1,300 businesses, more than half (52 per cent) of managers say that they expect additional paternity leave requirements to be detrimental to their companies.

New additional paternity leave legislation will allow fathers of children born on or after 3 April to share the maternity leave and pay if the mother returns to work early. This will allow them to take a total of six months off.

Director-general of the BCC David Frost says, ' In the face of promises by the government to listen to the needs of business and cut red tape, this new piece of employment regulation will hit businesses hard.

' Our survey results show that employment law changes are causing great concern among employers, who, instead of concentrating on running their business, have to cope with more and more shifts in employment law. Practical unless steps are taken to help free businesses from red tape, the burden on employers will only increase.'

Government launches website to cut red tape

The government has introduced to website challenging the public to help cut unnecessary regulations.

For the first time, businesses will have a chance to have their say on regulations that affect their everyday processes.

Prime minister David Cameron says, ' We need to tackle regulation with vigour to free businesses to compete and create jobs.

'I want us to be the first government in modern history to leave office having reduced the overall burden of regulation, rather than having increased it.'

The first area to go under the microscope will be retail. Following this, every few weeks a new set of regulations, organised around themes, will open on the website for anyone to comment on.

Once a theme has closed to the public, ministers will have three months to explain why to regulation is still required, or it will be scrapped.

Business secretary Vince Cable says, ' I urge you to visit the website and take a few minutes to tell us the regulations you deal with on a daily basis. This is your chance to make sure that consumers are properly protected from unscrupulous traders or give us the evidence we need to remove the unnecessary bureaucracy that stops your business from growing.'

SMEs shun apprenticeships

Nearly half of employers have not taken on apprentices in the last three years, with two thirds saying that they consider inappropriate for their organisation apprenticeships.

The findings from the Chartered Institute of Personnel and Development (ICPD) highlight the need for government to work with employers to promote the business case for investing in apprenticeships, according to the organisation.
Only a third (35 per cent) of the 500 employers surveyed say they plan to recruit this year apprenticeships.

In March, the government announcement to £ 180 million package to fund 50,000 new apprenticeships over the next three years.

Katerina Rudiger, skills policy advise at the ICPD says, ' The fact that many employers think apprentices are not right for their organisation demonstrates that funding alone is not enough. Demand for apprentices in England has always been very low, especially when compared internationally.

' The government therefore needs to do more to make the business case to employers, highlighting the benefits apprentices can bring to organisations, such as relevant skills, loyalty, higher quality and greater productivity.'

FPB: Challenge loan rejections

The Forum of Private Business (FPB) is urging business owners who feel they have been unfairly denied bank lending to put a new appeals process to the test.

The British Bankers' Association announced the creation of the new process this week.

The initiative will allow smaller companies to request a second opinion if they believe formal loan applications have been declined unfairly by one of the UK's main banks.

The appeals system came about following a report from the industry-led Business Finance Taskforce last year, which acknowledged the credit shortages facing small and medium-sized enterprises.

It will mean that, if a business customer requests it, their loan refusal will be reviewed by a second individual at their bank who has not had any prior involvement in the process and a new decision will be made within 30 days.

If the loan application is still declined, the bank will provide information on alternative sources of funding.

FPB chief executive Phil Orford says, ' Finally, the major banks will be expected to spell out the standards British businesses can expect from them, and the Better Business Finance campaign will provide online support and an appeals process if lenders are deemed to fall short of these standards.

' While it is always important to closely monitor any codes of practice - particularly those that are self-regulatory - providing banks stick to these principles, and there is to truly robust and transparent appeals process, we welcome the initiative's much-needed aim of getting the banks to provide better, more affordable lending. "

Simon Streat, managing director for EMS, UK & Ireland at credit information group Experian adds, 'Today's measures bring positive news for the small business community.  Creating loan mentors for small businesses could help these firms navigate the challenges they face when applying for funding.'

BCC economic survey suggests 'choppy' return to growth

An economic survey of UK business reveals that while the economy has returned to growth, companies' business confidence is suffering.

The British Chamber of Commerce's (BCC) latest Quarterly Economic Survey (QES) shows that turnover and profitability confidence levels among manufacturers in the first quarter of 2011 have fallen to levels not seen since the second quarter of 2009.

The balance for turnover declined 20 points to + 28 per cent when the percentage of companies reporting to decrease in confidence is subtracted from the percentage revealing increases, while confidence in profitability is down 20 points to + 10 per cent.

Service sector companies are also less confident of increasing their profit in the next year, with the balance figure falling seven points to + 10 per cent. However, confidence in future turnover grew five points to + 31 per cent, the highest since the first quarter of last year.

The BCC observe that companies are still finding cash flows difficult to manage, with cash flow balances worsening markedly in the first quarter of 2011. For manufacturers, the cash flow balance plunged 18 points to - 4 per cent, the worst since the first quarter of 2010.

The services sector cash flow balance fell by 10 points to - 10 per cent in the first quarter of this year.

Commenting on the survey of over 5,000 businesses, BCC director general David Frost says, ' The results of the QES show our economy faces a difficult year and that the recovery will be choppy.'

I have urges the government to do more to encourage private sector growth.

BRC: Minimum wage change will squeeze retailers

Increasing the national minimum wage will add to the pressure on retailers as they try to grow their businesses and create jobs, warns the British Retail Consortium (BRC).

The move, which will come into effect in October, takes the adult minimum wage up from £ 5.93 per hour to £ 6.08. Combined with slowing sales, poor consumer confidence and rising costs it will be a further obstacle to the retail sector as it tries to play its role in the country's economic recovery, says the organisation.

The BRC says it supports the principle of the minimum wage as a basic floor for decent pay but adds that it is important it reflects economic realities, highlighting that employers get just six months notice of the change, which is difficult to budget for, and that more notice of future National Minimum Wage decisions is needed.

BRC director general Stephen Robertson says, ' At at time when the priority should be getting more people into work, any increase in staff costs is an extra hurdle. This rise in the National Minimum Wage is at the very top end of what retailers could be expected to live with.

' Employers have just been hit by an increase in National Insurance. Business rates have soared and retailers are still absorbing much of the increase in VAT. This increase in the minimum wage is yet another challenge to retailers when trading is already difficult on the high street.'

FPB: Vigilance needed for new laws

The Forum of Private Business (FPB) is urging business owners to be aware of new legislation or run the risk of prosecution.
To raft of important changes have been introduced, including increases in statutory sick pay, changes in tax rates and the end of most employers' abilities to forcibly remove staff.

However, the lobbying group is concerned that many small firms may be completely unaware of the changes and could face prosecution as a result.

The key legislative changes which business owners need to be aware of include an increase in statutory sick pay, taking the weekly amount employers have to pay staff on sick leave from £ 79.15 to £ 81.60, Annas to the way National Insurance is calculated and the effective ending of an employer's ability to issue six-month notifications of retirement using the statutory retirement procedure.

Forum chief executive Phil Orford says, ' When you're busy running your own business, keeping abreast of the latest tweaks to the complex regulatory system can seem like the least of your worries.

' However, any instances of a business failing to comply with a piece of legislation can have serious financial consequences, no matter how trivial or the breach is unintended. As a result, I would urge all business owners to familiarise themselves with changes to the law and seek professional advice if they are unsure what they need to do to comply.'

Make CRC work for businesses - CBI

The Confederation of British Industry (CBI) has warned that the Carbon Reduction Commitment (CRC), the government's flagship energy efficiency scheme, is untenable in its current form.

The lobbying group says that the government's decision to remove the revenue-recycling element at October's Spending Review has undermined the original purpose of the scheme of encouraging organisations to cut emissions.

Rhian Kelly, CBI director for Business Environment says, ' We now have a carbon reduction scheme that actually adds to the cost of doing business.

' The government pulled the rug out from under organisations that signed up to a scheme to reward them for becoming energy efficient in good faith.'

The CBI says if the government restores the original incentive behind the scheme, progress could be made on making it more effective.

This could involve participants being able to buy carbon allowances at a fixed price, or moving the CRC to a full cap and trade system.

Retail sales remain slow

High street trading remains subdued despite increased year-on-year retail performance in March, finds research from the Confederation of British Industry (CBI).
The CBI's latest Distributive Trades Survey of 131 companies shows a balance of + 15 per cent in volume of sales reported in the year to March, exceeding retailers' expectations of zero growth.

However, sales in March itself were considered poor for the time of year, with 16 per cent of retailers reporting sales as good, and 40 per cent saying they were poor. The resulting balance of - 24 per cent is the lowest figure since August 2009 (- 25 per cent).
CBI chief economic adviser Ian McCafferty says, ' Conditions remain tough on the high street. Even the best performing sectors - namely grocers and clothing - have seen volumes continue to fall.
' With inflation edging higher earnings growth only modest, household budgets and are under increasing pressure. Consumer demand will remain weak in the coming months.'

SMEs confident of survival despised double-dip fears

Four in ten small and medium sized businesses expect the UK to slip back into recession in 2011.

Despised the lack of confidence surrounding economic growth this year, however, 98 per cent of companies are confident of their business survival, according to the latest Business Confidence Survey by the Chartered Institute of Management Accountants (CIMA).

One third of businesses report they have already lost revenue as a direct result of public sector spending cuts. Furthermore, one in five expect the government cutbacks to have a knock on effect on their number of full - time employees in 2011.

Operations functions will be hardest hit (84 per cent) followed by finance (39 per cent), IT (33 per cent) marketing (30 per cent) and human resources (28 per cent).

Ray Perry, executive director of the brand, profile and marketing arm of top, says, ' The survey this time around has produced to varied bag of results. Although many of the respondents felt that the UK was likely to plunge back into recession, the majority still feel confident of their own business survival but at the same time expect to cut their number of full - time employees in order to achieve this.'

Credit conditions remain unchanged

The amount of credit made available to small businesses remains largely unchanged from Q4 2010, according to the Bank of England's Credit Conditions Survey.

Lenders observed to sharp decline in demand for credit from small businesses in the first quarter of 2011, but expect this to pick up in the coming quarter in line with availability.

The report attributes the fall in demand to seasonal and weather-related factors, in addition to fiscal uncertainty.

The survey also reveals an increase in spreads on lending to small businesses, with some lenders commenting that this was due to rising operating costs.

Commenting on the survey, David Kern, chief economist at the British Chambers of Commerce, says, ' The findings confirm that a lack of demand remains a major obstacle to adequate credit growth.

'More worryingly, spreads on lending to smaller companies have increased, adding to pressures on their profits.'

Government looks to enterprising youth

The government has announced a package of measures aimed at encouraging young people to start businesses.

The announcements come alongside the launch of Start-Up Britain, a government campaign supported by service providers including O2 and Microsoft.

Measures include the creation of enterprise societies in every university, the launch of Brighton Fuse, an initiative to expand the creative, digital and IT sector in Brighton and Hove and provide business opportunities for graduates, and a major roll-out of Tenner Tycoon, the competition owned and run by the Peter Jones Foundation.

It is hoped the move will give young people the opportunity to gain real business experience, inspiring the next generation to seriously think about starting their own company.

Business secretary Vince Cable says, ' We want to transform the ambition and aspiration of young people through real business experience.

' Through Tenner Tycoon, the Enterprise Champions Programme and enterprise societies, we will be giving young people insight into enterprise at an early age, showing them how rewarding it can be to transform your own ideas into a real business.'

Businesses and candidates fall short at interview

Neither candidates nor interviewers are putting in the necessary groundwork to ensure to productive interview process

Job candidates and employers are failing to prepare adequately for job interviews, research finds.

According to a study by recruitment website Monster, 28 per cent of the 240 employers surveyed confess they have gone to interviews unprepared.

Additionally, almost a third (30 per cent) say they have forgotten to candidate's name, and almost one in five admit that they have forgotten an interview entirely.

Among the 3,400 job seekers surveyed, 26 per cent think that researching the person interviewing them was the least important homework, 25 per cent admit arriving late to a job interview, and nearly half (45 per cent) of candidate respondents don't think that looking for interview advice online is an important preparation task.

Monster spokesperson Isabelle Ratinaud says, ' It is apparent that both candidates and interviewers are not putting in the necessary groundwork to ensure to smooth, productive interview process.

' Unless an interviewer takes the time to absorb the candidate's CV, they will find it hard to establish whether they are right for the role.'

Bad websites threaten SMEs

Poor quality websites are scuppering the trade of small businesses, research finds.

According to a study by web host 1 & 1 Internet among 1,800 consumers, 37 per cent have walked away completely from websites, with poor to further 9 per cent opting to spend less as a direct result.

One third of consumers surveyed (34 per cent) believe that in general, the small business websites they use are 'tired' and 'unimpressive', and 41 per cent frequently find errors such as typos or broken URLs.

Some 66 per cent of companies surveyed admit that they struggle to maintain an attractive website, with the most common issue being the sourcing of fresh content (38 per cent). Three in ten (30 per cent) have been 'reluctant' or 'embarrassed' to recommend their website to their customers, at least once, because they knew of faults.

1 &Amp; 1 internet CEO Oliver Mauss says, ' It is essential that every company website inspires confidence. Businesses that invest carefully in their web experience will see higher levels of customer spend, retention and referral.'

Regional seminars to aid SMEs financing

The British Chamber of Commerce has teamed up with the Better Business Finance scheme to launch a series of regional seminars on business access to finance.

Throughout 2011, representatives from the UK's major banks, including Barclays, HSBC, Lloyds, RBS and Santander, are taking part in the Regional Outreach Roadshow - a scheme which is run by the banks and the British Bankers Association (BBA).

Seminars will offer help and advice to businesses looking to raise finance and the value of a good relationship between businesses and the banking sector.

Dr Adam Marshall, director of policy at the British Chambers of Commerce, says, ' Access to finance is a crucial issue for Britain's small and medium-sized businesses, and it is important that they have a clear understanding of the support that is available to them.

' Businesses need to be able to invest and grow if we are to see a lasting private sector-led recovery, and the UK's banking sector has an important role to play in this.'

For more information about the seminars, click here.

Revised growth figures highlight economic fragility

GDP growth contracted 0.5 per cent in the fourth quarter of 2010, revised from the 0.6 per cent decline previously published by the Office for National Statistics (ONS).

GDP at the end of last year is now 1.5 per cent higher than in the fourth quarter of 2009.

The ONS also altered business investment figures for the last three months of 2010 to show no growth when compared to the previous quarter. However, business investment was 12.2 per cent higher than the same period in 2009.

David Kern, chief economist at the British Chambers of Commerce, acknowledges that the figures for GDP growth are 'marginally better' than the previous estimate but says they do not alter the 'broad picture'.

While among the production industries output has been revised up to 0.8 per cent in the latest quarter, with output in the manufacturing sector rising 1.1 per cent, output in the service industries fell by 0.6 per cent.

"We are encouraged to see a smaller decline in services than was expected, but the sector's performance is still critically', comments Kern.

' The UK economy is clearly still facing many challenges in the months ahead,' have adds.

Kern also called on the Bank of England's Monetary Policy Committee to not increase interest rates 'prematurely' in order to avoid the risk of an 'economic setback'.