While the Budget may not have any adverse effects, small businesses have voiced scepticism over the benefits it will deliver, according to a recent snapshot survey.
The poll, carried out by the Federation of Small Businesses (FSB), found that almost half of the 800 firms questioned believed that the Budget would have no real impact on the day-to-day running of their businesses.
Only 31 per cent thought the Chancellor's measures would have a positive effect.
Four in 10 (42 per cent) of respondents said that they would be no worse off - but crucially no better off - as a result of the actions taken by the Chancellor.
Of the third of members who consider they will be better off, more than a half (54 per cent) claimed they will get a £1 to £1,000 boost to cash-flow in the next year.
The reduction in corporation tax, the increase in the approved mileage allowance and the freeze on new domestic regulations were among the moves that would lead to the greatest benefits for firms, the poll revealed.
A third (39 per cent) judged that the Budget would help boost the economy, while 18 per cent thought the measures would have a negative bearing.
Although more than a half of respondents welcomed the introduction of a fair fuel stabiliser, the FSB itself questioned whether the mechanism goes far enough to protect businesses from volatile price increases.
John Walker, the FSB's national chairman, commented: "The Budget was pro-business and we are pleased that the Government has listened to some of our concerns and has extended small business rate relief and scrapped the planned 1p rise in fuel duty and the escalator. But, as the results from the poll show, the Budget has not hurt small businesses, but it won't help them to grow either.
"While we welcome the introduction of Enterprise Zones across parts of the UK, the missing link in the Budget was measures to help all UK businesses to take on staff and grow their business. This could have been done easily through extending the national insurance contributions holiday to micro-businesses."
Friday 1 April 2011
Surge in online advertising
A quarter of all advertising spend is now directed through the internet, new figures have revealed.
Research by the Internet Advertising Bureau (IAB) has found that the value of online advertising climbed by 12.8 per cent last year, pushing the total electronic marketing spend to above £4 billion. The rate of growth was three times that seen in 2009.
The major growth area was display advertising on social networks, up by 200 per cent.
UK internet users devote a quarter of their online time to such networks, and advertisers have followed the trend.
Mobile advertising was also on the increase, although search advertising remained the dominant force in the market, despite a smaller growth rate of just 8 per cent.
Guy Phillipson, the chief executive of the IAB, said: "Major brands restored their advertising budgets in 2010 and online was a big winner."
Ian Barber of the Advertising Association identified the ability of online advertising to hit its audience precisely: "It's targeted, so it makes it easier for brands to work out who they're advertising to."
Research by the Internet Advertising Bureau (IAB) has found that the value of online advertising climbed by 12.8 per cent last year, pushing the total electronic marketing spend to above £4 billion. The rate of growth was three times that seen in 2009.
The major growth area was display advertising on social networks, up by 200 per cent.
UK internet users devote a quarter of their online time to such networks, and advertisers have followed the trend.
Mobile advertising was also on the increase, although search advertising remained the dominant force in the market, despite a smaller growth rate of just 8 per cent.
Guy Phillipson, the chief executive of the IAB, said: "Major brands restored their advertising budgets in 2010 and online was a big winner."
Ian Barber of the Advertising Association identified the ability of online advertising to hit its audience precisely: "It's targeted, so it makes it easier for brands to work out who they're advertising to."
Friday 18 March 2011
http://www.drifixlimited.co.uk
Drifix Limited offers a complete and professional labour and services partnership with over 26 years experience in refurbishment and building works.
We manage contracts and services covering all aspects of the building industry. We specialise in office refurbishment and shop refurbishment, but our skills take us far and wide in all kinds of building refurbishment, large or small.
We can supply you with the complete office environment from design to completion - see our services page to see how we can help you and your business.
Drifix Limited operates a project management service to ensure that every project is not only completed on time, but carried out to agreed specifications, quality requirements and statutory obligation to the complete satisfaction to each client.
We have been involved in the co-ordination and management of countless re-fitments and expansion contracts including: small shops to large superstores, Naval Bases, Airports,Television Studios, and all types of office refurbishment.
We would appreciate the opportunity to discuss our capabilities and the services we can offer in respect to your current and future requirements. You can contact us here.
We manage contracts and services covering all aspects of the building industry. We specialise in office refurbishment and shop refurbishment, but our skills take us far and wide in all kinds of building refurbishment, large or small.
We can supply you with the complete office environment from design to completion - see our services page to see how we can help you and your business.
Drifix Limited operates a project management service to ensure that every project is not only completed on time, but carried out to agreed specifications, quality requirements and statutory obligation to the complete satisfaction to each client.
We have been involved in the co-ordination and management of countless re-fitments and expansion contracts including: small shops to large superstores, Naval Bases, Airports,Television Studios, and all types of office refurbishment.
We would appreciate the opportunity to discuss our capabilities and the services we can offer in respect to your current and future requirements. You can contact us here.
We are based in the Southampton area, and work mainly along the south coast, covering Hampshire, Dorset, Wiltshire, Sussex, Devon, Surrey & Berkshire.
Our friendly team are always ready to help, big enough to cope , small enough to care and no job is to small.
Our friendly team are always ready to help, big enough to cope , small enough to care and no job is to small.
Finding the money to develop your business
External finance
For most businesses, the principal source of funding has traditionally been in the form of overdrafts and fixed term loans, which account for about 50% of all external finance. The Bank of England has said that there is 'no real evidence of firms having difficulties accessing bank finance'.However, the need for some form of security can occasionally result in even the most well-presented request for funding, accompanied by an impressive business plan, being declined. And with over 40% of business funding being provided by hire purchase, leasing, trade finance, invoice financing, partners and shareholders, less than 10% is provided by venture capital sources.
Debt finance
Many lending institutions have developed 'credit scoring' techniques that assist them with small business funding applications. The determining criteria include credit history, past bank account management, the applicant's track record in business and willingness to invest their own money in the business, and evidence of repayment capability based on a business plan.If an individual does not have a previous track record and has little or no capital, the application will focus on the entrepreneur's ability and willingness to provide some form of security against the borrowing. One possible source of guarantee for finance is the Enterprise Finance Guarantee under which the Government will guarantee lending to viable businesses to ensure they can secure the working capital and investment they require. This scheme provides a guarantee for lending from 3 months to 20 years, to UK businesses of up to £25 million. This scheme is intended to facilitate the securing of loans between £1,000 and £1 million. This scheme is available to 31 March 2011.
Equity alternatives
Equity finance accounts for about 8% of external finance for small and medium-sized businesses. Those companies that do attract this type of funding tend to be highly innovative and have a prospect of good growth.According to 97% of respondents to the Government's 'Bridging the Finance Gap' consultation, there remains a significant lack of equity finance available, but this is a source of funding that looks set to increase in the future.
Business angels and informal investors
There are reckoned to be 20,000 to 40,000 angel investors in the UK, putting between £500 million and £1 billion per annum into between 3,000 and 6,000 businesses.An InvestorPulse survey showed that in 2002, 75% of angel investors made investments of less than £50,000, with an overall average investment of £35,000.
Enterprise capital funds
The Government has announced its intention to launch a series of 'pathfinder' funds, based on the US-style 'Small Business Investment Company' (SBIC) model. These are to be known as 'Enterprise Capital Funds' (ECFs), and will involve the Government offering debt at a favourable rate of interest to privately owned and managed funds. An ECF would then be able to access private funds and offer these pooled funds to UK businesses.Reverse fuel duty rise, urges business group
The Government should take the opportunity of the Budget to scrap the planned increase in fuel duty.
The Federation of Small Businesses (FSB) has claimed that the hike in fuel duty could affect as many as eight in 10 small firms.
Interim results from more than 1,000 respondents to the FSB 'Voice of Small Business' survey panel showed that rises in fuel duty will have an adverse impact on 79 per cent of small businesses.
Previous research by the FSB suggested that higher fuel duty will cost small firms up to £2,000 over the next six months, on top of regular outgoings.
As a result, the FSB is calling on the Government to reverse the planned 1 pence rise in fuel duty the Budget next week and is arguing for the introduction of a fuel duty stabiliser, a mechanism that will balance future increases in fuel tax with rises in the price of oil.
The cost of fuel has been compounded by the recent increase in VAT to 20 per cent, the FSB continued. But while a cut in fuel VAT would lower the price at the pump, it would not, however, stem the volatility in fuel prices, something a fuel duty stabiliser would achieve, the FSB said.
The FSB believes that the cost of doing nothing to alleviate pressures of high fuel prices on small firms will vastly outweigh the cost of implementing a fuel duty stabiliser in the short-term.
John Walker, the FSB's national chairman, commented: "We all know that the rises in fuel are having a huge impact on everyone across the country, not least of all small businesses.
"Reversing the planned 1 pence rise - which when indexed to inflation will actually mean a 5 pence increase on pump price - and cutting the VAT on fuel duty in the Budget next week will be welcome steps But to really stem these volatile prices the Government must introduce a fuel duty stabiliser as it promised. Small firms are under huge pressures - stabilising fuel prices will be a step in the right direction to really help small businesses in all sectors grow."
The Federation of Small Businesses (FSB) has claimed that the hike in fuel duty could affect as many as eight in 10 small firms.
Interim results from more than 1,000 respondents to the FSB 'Voice of Small Business' survey panel showed that rises in fuel duty will have an adverse impact on 79 per cent of small businesses.
Previous research by the FSB suggested that higher fuel duty will cost small firms up to £2,000 over the next six months, on top of regular outgoings.
As a result, the FSB is calling on the Government to reverse the planned 1 pence rise in fuel duty the Budget next week and is arguing for the introduction of a fuel duty stabiliser, a mechanism that will balance future increases in fuel tax with rises in the price of oil.
The cost of fuel has been compounded by the recent increase in VAT to 20 per cent, the FSB continued. But while a cut in fuel VAT would lower the price at the pump, it would not, however, stem the volatility in fuel prices, something a fuel duty stabiliser would achieve, the FSB said.
The FSB believes that the cost of doing nothing to alleviate pressures of high fuel prices on small firms will vastly outweigh the cost of implementing a fuel duty stabiliser in the short-term.
John Walker, the FSB's national chairman, commented: "We all know that the rises in fuel are having a huge impact on everyone across the country, not least of all small businesses.
"Reversing the planned 1 pence rise - which when indexed to inflation will actually mean a 5 pence increase on pump price - and cutting the VAT on fuel duty in the Budget next week will be welcome steps But to really stem these volatile prices the Government must introduce a fuel duty stabiliser as it promised. Small firms are under huge pressures - stabilising fuel prices will be a step in the right direction to really help small businesses in all sectors grow."
Tax cuts needed to boost business
The Budget must contain the promise of tax cuts if the UK is to escape the perception that it is a high tax economy.
That was the eve-of-Budget message from the Institute of Directors (IoD).
The business organisation argued that the Budget must set out four fundamental changes to the tax system.
It claimed that the proposals involve either little or no cost over the course of the current spending review or more significant cost beyond 2014-15.
The IoD is pushing for an abolition of the top 50 per cent income tax rate, which covers earnings over £150,000 a year, by 2015. While the current economic situation means that dropping the rate immediately would be difficult, signaling its eventual demise would raise business confidence, the IoD said.
Also on the personal tax front, the IoD called for an end to the withdrawal of the personal tax allowance on earnings above £100,000.
To encourage business, the Chancellor should commit the Government to reducing corporation tax to 15 per cent by 2020. This would give the UK the lowest corporate tax rate in the world.
Cutting the corporation tax rate from 24 per cent (to which it is due to fall) to 15 per cent would cost around £9 billion per annum. However, the IoD said, this would be funded by continued restraint in public spending growth and the simplification of certain allowances, together with the impact on GDP growth from greater business investment in the UK.
The fourth area identified by the IoD is an exemption from future capital gains tax for entrepreneurial investments.
Under the IoD proposals, anyone subscribing for shares in a new company starting between now and 5 April 2012 would be exempt from capital gains tax when they sell those shares. This, the IoD added, would encourage the injection of fresh equity capital into businesses.
Miles Templeman, the IoD' s director-general, commented: "Since there is little money in the Treasury's coffers many people are assuming that there's not much George Osborne can do to kick-start economic activity and strengthen the recovery in the Budget. They couldn't be more wrong. Now is the time for the Government to signal in the strongest possible terms its determination to make the UK one of the most tax competitive countries in the world.
"The Chancellor can send this signal by announcing in the Budget that the 50 per cent income tax rate will be abolished by 2014-15, and corporation tax will be reduced to 15 per cent by 2020. This is one of the most dynamic areas of the tax system where deep cuts in rates could transform business behaviour and raise more revenue in the long term.
"This has the potential to boost business confidence and increase inward investment into the UK. We can't afford to make all these tax changes today, but signalling tax cuts for tomorrow could still boost business confidence."
That was the eve-of-Budget message from the Institute of Directors (IoD).
The business organisation argued that the Budget must set out four fundamental changes to the tax system.
It claimed that the proposals involve either little or no cost over the course of the current spending review or more significant cost beyond 2014-15.
The IoD is pushing for an abolition of the top 50 per cent income tax rate, which covers earnings over £150,000 a year, by 2015. While the current economic situation means that dropping the rate immediately would be difficult, signaling its eventual demise would raise business confidence, the IoD said.
Also on the personal tax front, the IoD called for an end to the withdrawal of the personal tax allowance on earnings above £100,000.
To encourage business, the Chancellor should commit the Government to reducing corporation tax to 15 per cent by 2020. This would give the UK the lowest corporate tax rate in the world.
Cutting the corporation tax rate from 24 per cent (to which it is due to fall) to 15 per cent would cost around £9 billion per annum. However, the IoD said, this would be funded by continued restraint in public spending growth and the simplification of certain allowances, together with the impact on GDP growth from greater business investment in the UK.
The fourth area identified by the IoD is an exemption from future capital gains tax for entrepreneurial investments.
Under the IoD proposals, anyone subscribing for shares in a new company starting between now and 5 April 2012 would be exempt from capital gains tax when they sell those shares. This, the IoD added, would encourage the injection of fresh equity capital into businesses.
Miles Templeman, the IoD' s director-general, commented: "Since there is little money in the Treasury's coffers many people are assuming that there's not much George Osborne can do to kick-start economic activity and strengthen the recovery in the Budget. They couldn't be more wrong. Now is the time for the Government to signal in the strongest possible terms its determination to make the UK one of the most tax competitive countries in the world.
"The Chancellor can send this signal by announcing in the Budget that the 50 per cent income tax rate will be abolished by 2014-15, and corporation tax will be reduced to 15 per cent by 2020. This is one of the most dynamic areas of the tax system where deep cuts in rates could transform business behaviour and raise more revenue in the long term.
"This has the potential to boost business confidence and increase inward investment into the UK. We can't afford to make all these tax changes today, but signalling tax cuts for tomorrow could still boost business confidence."
Monday 14 March 2011
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