BAD News
For the better informed business adviser
6 February 2007 - Issue 06
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News round up
Governments attacked over red tape
Successive British Governments over the past 20 years have failed to cut regulation for businesses, a
new report claims. The 'Deregulation or déjà vu? UK deregulation initiatives 1987/2006' study found there
had been a "lamentable" failure to cut red tape by both Conservative and Labour administrations, despite
15 deregulation initiatives since 1985.
The British Chambers of Commerce (BCC), which published the report, said announcements and
initiatives had not been followed by action.
Read more from the BCC at:
http://www.chamberonline.co.uk/YT-hAd0.html
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Intellectual property audits offered to small firms
Small businesses are being offered intellectual property (IP) audits by the Government. Around 40
enterprises will be the guinea pigs for the three-day IP audits, which are being piloted by the Patent Office
and four Regional Development Agencies (RDAs). The project is part of the new Innovation Support
Strategy, announced by Science and Innovation Minister Malcolm Wicks.
There are more details at:
http://www.sbs.gov.uk/sbsgov/action/newsDetail?r.l1=7000000439&year=2007&cat=SBS&topicId=70000
00448&type=NEWSITEM&itemId=7000037300&r.l2=7000000448
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Migrant workers good for economy, says report
Business leaders believe that migrant workers are proving a vital boost to the UK economy. A study by
the Institute of Directors (IoD) found that the majority of members believe migrant workers "significantly
outperform" the UK workforce when it comes to productivity, education and skills, work ethic, reliability,
and the amount of sick leave they take. Some 65% were keen to encourage immigration to alleviate skills
shortages and increase the number of workers available.
Read more on this story at:
http://press.iod.com/newsdetails.aspx?ref=263&m=2&mi=62&ms
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Legal updates
Brussels promises to cut red tape for small firms
The European Commission (EC) has pledged to ramp up efforts to reduce red tape for small businesses
by exempting them from certain requirements. Its new Action Programme outlines plans to cut the
administrative burden on businesses by a quarter by 2012, focusing on 13 key areas including company
law, employment regulations, tax and VAT. Examples of how it plans to help small businesses in practice
include exempting small butchers and bakers from certain hazard analysis requirements made under food
hygiene legislation.
Read more about this at:
http://www.egovmonitor.com/node/9188
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Construction awareness campaign launched
An awareness-raising campaign has started to inform construction businesses about Site Waste
Management Plans (SWMPs), which will become a legal requirement next year. The campaign is being
run by NetRegs, the Government's online guide to environmental regulations for businesses. It has put
together a guide, which can be downloaded from the site, explaining the regulations and how businesses
can develop their own plans.
There is more information at:
http://www.trailermail.co.uk/swmp/?referrer=/netregs/
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Tax and money
Businesses wait longer for payments
There are more micro businesses suffering due to late payments now than there were three years ago,
according to a study by Siemens Financial Services (SFS). It found firms were waiting an average of 80
days to be paid in 2006, compared with 69 days in 2004. In contrast, medium-sized and large companies
were waiting an average of just 47 days before being paid. The report said that small businesses were
suffering because larger organisations were using "competitive pressure" to extend their payment times
because of their overall value as customers.
Read more on this story at:
http://www.freelanceuk.com/news/2097.shtml
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Risk of rise to insurance premiums
Small businesses are likely to face raised insurance premiums, due to new regulations allowing the NHS
to recover the costs of treating patients who have won personal injury compensation. The Federation of
Small Businesses (FSB) says employers' liability insurance could increase because of the changes. It
wants insurers and small businesses to work together to keep premiums down, and warned that the
economy could be damaged if premiums were allowed to spiral out of control.
Read more on this story on the FSB website at:
http://www.fsb.org.uk/news.asp?REC=3860
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HMRC to crack down on dividend payments
Reports that HM Revenue & Customs (HMRC) is planning a crackdown on dividend payments, with a
particular focus on small, owner-managed companies, have been met with concern by accountancy
professionals. The concerns follow claims that HMRC is planning to use employment securities legislation
to charge Pay As You Earn (PAYE) tax and National Insurance (NI) on dividends, which are traditionally
used by owner-managers as a tax-efficient way of taking money out of their enterprise.
There is a summary of this issue from accountancy firm DTE at:
http://www.dtegroup.com/display_article.asp?pageid=NEWSLATEST&pagekey=24&articlekey=355
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IT
End of the line for the floppy disk
Businesses that use floppy disks to back up their data are being warned they could soon be obsolete. PC
World will not be stocking any more of the disks once its current supplies have run out. CDs, memory
cards and sticks have replaced floppy disks, which were introduced 36 years ago. PC World says the
floppy's hey-day was 1998, when two billion were sold worldwide.
Read more on this story at:
http://www.ananova.com/business/story/sm_2179168.html?menu=business.latestheadlines
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Small businesses miss out on IT potential
Small businesses are missing out on the full potential of IT, according to a new study. The report, by the
BCC and Microsoft, found that 82% of small enterprises used the Internet and had an online presence.
However, small businesses were also spending too much time looking for misplaced files, dealing with IT
regulations, and tackling issues associated with IT security and data storage, the study said.
Read more on the BCC's website at:
http://www.chamberonline.co.uk/YcTsdJU.html
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Inefficient printing costs mount
Businesses and the Government are wasting more than £1 billion on inefficient printing practices every
year, according to the Centre for Economic Business Research (CEBR). It claims the problem is affecting
business growth, productivity and the economy. The CEBR calculates that around £16.7 billion is spent
annually on business and Government printing - equal to the GDP of Cuba. Using mono rather than
colour printing, and setting up machines to print on both sides of the paper, would help to reduce the
inefficiencies, the report said.
There is more on this story at:
http://business.timesonline.co.uk/article/0,,9072-2571721,00.html
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Vista takes on the world
More than 100 million computers worldwide are expected to be using Microsoft's new Vista operating
system within the next year. Microsoft has introduced four home versions of the system; the business
version was available to buy late last year. However, many PC users will have to upgrade their equipment
before running Vista. Microsoft says it will continue to support XP - which Vista updates - until 2011.
There is more on this story at:
http://news.bbc.co.uk/1/hi/technology/6309651.stm
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Health and safety
Builders urged to assess risks
Construction businesses should carry out risk assessments before beginning projects, the Health and
Safety Executive (HSE) says. The HSE spoke out after Harron Homes (North West) Ltd of Warrington
was fined £18,000 and ordered to pay £4,210 in costs following an accident in which four bricklayers were
injured. They were hurt when the first floor of a house they were working on in Kirkby collapsed in 2004
due to being overloaded.
Read more on this story at:
http://www.gnn.gov.uk/Content/Detail.asp?ReleaseID=260092&NewsAreaID=2
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Retail and sector news
'Cowboy' car washer concerns
The authorities should be doing more to ensure that carwash regulations are adhered to, according to the
Association of Convenience Stores (ACS). The organisation is concerned about the "huge growth" in
unregulated hand carwash firms, which it says "regularly flout" strict environmental and health and safety
regulations governing this type of business. In addition to damaging the environment, the ACS says such
enterprises are gaining an unfair advantage over those that do abide by the rules.
There is more on this story at:
http://www.thelocalshop.com/default.asp?Call=Article&ID=4863
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Budget brands beat big four
Budget supermarkets Aldi and Lidl are rated better than the big four grocery multiples when it comes to
customer satisfaction. They beat Tesco, ASDA, Sainsbury's and Morrisons in a league table created by
Which? magazine. The magazine said the results showed there was a "minor retail revolution" going on,
with customers opting for the cheaper, no-frills approach when they are buying food. Overall, John Lewis
and its sister store Waitrose were the top-scoring shops.
Read more on the Which? website at:
http://www.which.co.uk/press/press_topics/product_news/which_magazine/retailersurvey_10207_571_10
7948.jsp
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More support needed for young shop owners
Seven out of ten of Britain's young retailers say their job is stressful. The figure for the under-24 age
group was much higher than the average of 42% of retailers who claim their job is more stressful than it
was a year ago, according to the Barclaycard 'Business Retail in Detail' survey. One cause of angst
named by those polled was the state of the retail economy - which appeared to have hit small businesses
harder than large ones. Barclaycard claims that young shop owners need more targeted support to help
them cope with their concerns.
There is more on this story at:
http://www.irn-talkingshop.co.uk/news/article.asp?news=General&articleid=5275
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Online fashion spending reaches £1 billion
Britons are spending more than £1 billion buying clothing and shoes online for the first time, market
analyst Mintel says. The increase in the number of websites selling clothing, along with wider Internet
access, has helped online fashion spending to increase by 461% in the last five years. Mintel says the
industry is still in its "relative infancy" but that 2006 was a "defining year". Online spending on clothing and
shoes is expected to increase further as Tesco and New Look expand their Internet fashion sales.
Read more on this story at:
http://news.bbc.co.uk/1/hi/business/6316619.stm
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Arts Council unveils policy documents
The Arts Council England has published a series of policy documents outlining its plans for the future
development of the combined arts, dance, literature, music, theatre, visual arts, interdisciplinary arts and
distribution sectors of the industry. The documents also summarise the Arts Council's plans to improve
public access to the arts through touring and digital distribution.
Read more at:
http://artscouncil.org.uk/pressnews/press_detail.php?browse=recent&id=788
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Construction skills shortage confirmed by new poll
The Chartered Institute of Building (CIOB) has published the results of its annual skills shortage survey,
revealing that 77% of the construction businesses polled struggled with recruitment during 2006. The poll
questioned over 600 businesses across the UK, with the greatest problems reported at management and
skilled craft/trade levels. Some 68% of respondents felt the workforce was not adequately skilled, and
many reported that the industry's poor image made it difficult to attract new recruits.
There is more about the study at:
http://www.ciob.org.uk/news/view/1296
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Regional news
Low emissions proposal attracts criticism in capital
A proposed Low Emission Zone (LEZ) for London is being attacked by the FSB. It says London Mayor
Ken Livingstone should rethink the proposals because they will have wide repercussions on the UK's
hauliers and business vehicles, more than half of which travel through the capital at least once a year.
Under the plans, daily charges for non-compliant heavy goods vehicles travelling within the LEZ would
range between £100 and £200 from next year.
Read more from the FSB at:
http://www.fsb.org.uk/news.asp?REC=3870
See the LEZ proposals at:
http://www.tfl.gov.uk/tfl/low-emission-zone/proposal.asp
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Grant aid rules slackened in north east
More small businesses in the north east are now eligible for Government money after One NorthEast
(ONE), the RDA, extended the coverage of its Selective Finance for Investment (SFI) programme. Under
the changes, small and medium-sized enterprises located anywhere in the area covered by ONE can
apply for money from SFI. Previously, businesses had to be based in an Assisted Area, where only 63%
of firms in the north east are currently located.
There is more on this story at:
http://www.onenortheast.co.uk/page/news/article.cfm?articleId=2065
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Young north west retail business owners state their case
Young retail businesspeople in the north west are to be given the chance to put their case to an X-Factor
style panel made up of major retailers. The Retail Factor event is being staged at Manchester's Trafford
Centre as part of the University of Salford's Network Project for 16-19-year-olds. The first event took
place on 31 January and a second is being held on 7 February. Students from 12 colleges have been
involved in the project.
There is more information at:
http://www.investinmanchester.com/newsevents-n1542
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Events
Purple Love Week, various locations, 10-17 February
Local food producers are being encouraged to get involved in the Purple Love Week campaign, which
runs from 10-17 February. The project aims to support independent retailers and to persuade more
people to buy locally produced food. Tasting events are taking place in more than 500 independent delis,
bakers, butchers and farm shops across the UK.
Find out more at:
http://www.purpleplaces.co.uk
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From Freight to Food, London, 21 February
This is an event for small food businesses interested in entering the supermarket supply chain. Speakers
include a buyer from Sainsbury's and representatives from the freight operator recognition scheme
Scarla. There will also be a number of exhibitors.
To find out more, go to:
http://www.northlondon.org.uk/client/files/Freight_to_Food_Invitation_21_02_07.pdf
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Useful publications and services
The Law Commission website
This simple, to the point and easy to navigate site contains sections about the Law Commission and what
it does, its publication, an A-Z section and a news section. There is also a section on laws under review.
At the moment, visitors are being asked which of a selection of 40 archaic London laws they would like to
see repealed. The laws are listed in a consultation, which lasts until May.
Visit the website at:
http://www.lawcom.gov.uk
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UK economy at a glance
Indicator Value Chang Chang Change
e on e on on year
week month
FTSE 100 6310.9 + 82.9 + 90.8 + 538.5
£ against + +
1.957 + 11.55%
US $ 0.21% 3.39%
- +
£ against € 1.513 + 3.54%
0.06% 1.47%
UK inflation 3.0% none + 0.3% + 1.0%
UK interest +
5.25% none + 0.75%
rates 0.25%
* Figures are as at midday on 5 February 2007
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