| TAX Staircase tax reversal Communities Secretary Sajid Javid is publishing draft legislation to reverse the so-called ‘staircase tax’, a move which should benefit up to an estimated 80,000 businesses. The rule would have meant buildings housing firms on different floors being treated as separate premises, raising rates bills. Under the new legislation, firms can choose to have their rates recalculated under the old single-bill system and any savings due will be backdated. Mr Javid said that the tax was “an unfair rates hike for businesses”. Meanwhile, Sir David Holgate and Martin Rodger, who are respectively president and deputy president of the Lands Chamber court, have criticised the number of business rates appeals that have been thrown out by the Government’s Valuation Tribunal over minor breaches of procedure. The Daily Telegraph The Sun START-UPS FSB boss warns over late payments Mike Cherry, chairman of the Federation of Small Businesses, has accused late payers of holding Britain’s small firms to ransom, suggesting this covers £18bn in payments, and has warned that the issue could adversely affect 5.7m small companies and self-employed workers. In an end of year message Mr Cherry said: “Small businesses deserve to be paid promptly. They should not face supply chain bullying.” He also called on the Government to reform business rates. Mr Cherry’s comments come as analysis of filings by 200 businesses shows that only 29% pay their suppliers within 30 days or less, with the average term for settling accounts as high as 113 days. Elsewhere, research from MarketInvoice shows that 60% of invoices issued by SMEs in the South West in 2017 were paid late – up from 45.2% in 2016. The average value of these invoices was more than £51,000. The Sun Financial Times South West Business Spotlight on start-ups The Sunday Times has asked five observers to select the start-ups they feel are the most exciting as we enter 2018. Sir Richard Branson, founder of Virgin Group, selects MacRebur, which has developed a product that takes waste plastics and turns them into an asphalt binder additive to reduce the frequency of potholes and improve the quality of roads. Sherry Coutu, chair of ScaleUp Institute and Founders4Schools, highlights online rewards platform Perkbox and Babylon Health. Richard Reed, co-founder of JamJar Investments and Innocent Drinks, opts for sport-tech start-up Fiit, while Emma Jones, founder of Enterprise Nation, chooses food and drink sector entrants Foraging Fox and Watmuff & Beckett. Stuart Marks, founder of L Marks, praises Howz, saying its technology to monitor the activity of elderly and vulnerable people is “genuinely game-changing.” The Sunday Times Productivity not a priority, say small firms The UK’s prolonged productivity crisis looks set to continue after a survey of small business owners found it was not a priority for bosses. Just 7% plan to make improving productivity a priority next year, according to the poll by HSBC, with SMEs citing the state of the economy as a much greater concern. The findings come after productivity growth was revised down by the OBR for the seventh year in a row. The Daily Telegraph EXPORTS Brexit ushers in global outlook The Telegraph’s Tim Wallace highlights the growing number of British firms that are exporting to Europe and Asia in light of the Brexit vote. He suggests growth opportunities are gaining more attention as companies seek ways to expand even as the political and regulatory ground beneath them threatens to shift. At the same time, the UK continues to attract strong investment, with recent listings in London including firms from Ireland, Cyprus and Austria. Beyond the EU, Israeli companies, in particular, appear increasingly keen on the British market – the number setting up in the UK rose by 28% in 2017. The Daily Telegraph Firms must pay levy for Brexit push Businesses should pay a levy of up to £1,000 to fund German-style chambers of commerce to promote exports after Brexit, the former trade minister Lord Price has said. He said the Government needed to get out of the way of businesses looking to capitalise on trading opportunities. Lord Price explained: “For exports, we should start a German-style system where all businesses pay a small levy – say £100 to £1,000 – to fund a proper network of chambers of commerce; we should give the British chamber, the CBI – or whoever – £50m and tell them to get on with it.” The Daily Telegraph TECHNOLOGY IoD: Businesses question public sector tech advances A new report from the Institute of Directors shows that 77% of company directors are sceptical about the public sector’s ability to take advantage of technological advances such as automation. The poll of 1,000 business leaders saw 60% voice a belief that digital services created by private firms are superior to public sector offerings. Director general Stephen Martin said: “Raising the UK’s productivity is the driving force behind the Government’s economic policy, so they should be looking for opportunities to work with the private sector to improve their digital offering.” Daily Mail Daily Express The Scotsman OUTLOOK Steepest rise in output for two years, and wages rise Manufacturers, service sector companies and retailers have reported the sharpest rise in output in two years, according to the CBI, with growth in the three months to December rising to a balance of 19%, up from 6% in the three months to November. The result is the highest recorded since December 2015. Elsewhere, a study by the jobs search engine Adzuna found the average salary for vacancies advertised online in November was 1.2% higher than in the same month a year ago – the first annual increase recorded by the website since June 2015. The firm said the average advertised wage across the UK in November was £32,598. Separately, the Resolution Foundation predicts that people will see no real wage growth before the end of 2018, while 27% of working age households expect their financial situation to worsen in the coming 12 months, almost equalling the 28% who think it will get better. The Times The Times The Guardian David Davis outlines Brexit aims Writing in the Telegraph , David Davis outlines his plan to deliver Brexit. He says the government is “looking at the full sweep of economic cooperation that currently exists and determining how that can be maintained with the minimum additional barriers or friction, while returning control to the UK Parliament.” He adds that in terms of scope, the final deal should, amongst other things, cover goods, agriculture and services, including financial services, and be supported by “continued intelligent cooperation in highly-regulated areas such as transportation, energy and data.” He also says he is aiming for services to be traded across borders, “from highly regulated sectors like financial services to modern ones such as artificial intelligence.” The Daily Telegraph FSB: Brexit shouldn’t distract from domestic challenges The FSB has warned that Brexit should not be a reason for challenges facing small companies in 2018 to be ignored. Chairman Mike Cherry said: “While the process of leaving the EU rolls on, it’s important we don’t lose sight of the domestic issues impacting small businesses every day.” Challenges identified by the FSB include late settlement of bills by large customers, the closure of high street bank branches and poor broadband connections in rural areas. Meanwhile, Adam Marshall, director general of the British Chambers of Commerce, argues that fierce disputes between UK politicians over Brexit are undermining Britain’s negotiating position. He says business communities across the country are suffering from “Brexit fatigue” and long to see competence and coherence, not disorganisation and division. Mr Marshall says businesses need clarity and want a solid transition to give short-term stability. “Making a success of the Brexit process requires better decisions, and less noise, in 2018,” he adds. The Times The Daily Telegraph Cambridge to lead growth in 2018 Cambridge, Oxford and Milton Keynes are predicted to have the fastest growing economies of all Britain’s cities in 2018. A study from Irwin Mitchell and the CEBR shows the trio of cities are set to prosper the most, based on a substantial skills base. Meanwhile, the dealmaking boom of the past 12 months is also expected to continue next year. Data from Mergermarket shows 1,461 deals involving British companies were announced this year, close to the pre-crisis boom level of 2007. The Sunday Telegraph The Sunday Times FINANCE Small firms charged 20% interest by big banks New research reveals that high street banks are charging some business customers more than 20% in interest, despite receiving billions in taxpayer support to ramp up lending. The financial information start-up DueDil found that NatWest and Santander are the most expensive of the big five high street lenders, with NatWest charging up to 29% for business loans through its Esme online service. The APR on Santander’s online small business loans ranges from 4.9% to 25.9%, with directors required to put up their home or other assets as security. Sir Vince Cable, leader of the Liberal Democrats, commented: “Businesses are too dependent on a small number of big predatory banks which just take them for a ride. Despite all the efforts by the Government over recent years, they continue to have the whip hand over small business.” The Sunday Times Bank closures hit remote SMEs Figures show that 802 bank branches closed this year – a total believed to be a record – with campaigners warning of the impact this could have on small businesses in remote areas. The data shows that the five biggest banks now account for fewer than 6,000 branches, compared with 11,240 20 years ago. Wes Streeting, who sits on the Commons Treasury committee, commented: “It’s time for banks to listen to customers who value their local branches and call a halt to closures.” The Times REGULATION Doubts raised on whether UK gender pay sanctions are enforceable Legal experts warn that threats by the UK government to sanction companies that do not reveal their gender pay gaps by April have no standing in law. Financial Times EMPLOYMENT Firms suffering from fall in EU immigration British businesses have warned they are beginning to suffer from a lack of workers as EU staff quit their jobs and leave the country. Hotels and hospitality firms fear they may have to close as a result, while engineering and manufacturing companies are considering moving overseas to find the staff they need. The outlook is revealed in a survey of 1,600 businesses by the British Chambers of Commerce. The research shows businesses want a “light touch, fast and affordable” migration system to be put in place after Brexit to allow them to hire EEA workers without substantial financial or bureaucratic costs. Meanwhile, CBI director general Carolyn Fairbairn has launched a fresh appeal for the Government to provide “clarity and certainty, not a different opinion every day,” to ensure that the economy can prosper despite Brexit-related uncertainty. The Daily Telegraph The Independent Employment rate exceeds analyst expectations Tom Knowles in the Times looks at the performance of the jobs market in 2017, saying it beat almost all expectations and saw unemployment rates lower than those predicted by the top five economic forecasters in the UK. None of the institutions, including the Bank of England and Office for Budget Responsibility, predicted that that the unemployment rate would drop below 5% in forecasts given at the end of 2016. Figures show that unemployment rates fell by an average of 16,500 people each month to 4.3% in October, with economists saying the rate is likely to have reached 4.2% in November and December. The Times Paid overtime becoming a rarity for UK workers Figures from the ONS reveal that being paid to work overtime is becoming less common, with the number of hours racked up by British employees more than halving in the past two decades. Financial Times |