BAD News
For the better informed business adviser
24 November 2009 Issue 47
Welcome to BAD News (Business Advisers' News), a free weekly current awareness bulletin for business advisers.
The BAD News Team
badnews@cobwebinfo.com
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In this week's issue:
• Businesses must balance VAT rate change decision, says expert
• Recruitment freeze thaws but employers plan pay restraint
• Social network checks on employees could lead to discrimination claims
• Government confirms final agreement on agency worker directive
• Bribery laws could 'catch out' businesses
• Credit rating crisis hampering recovery, claims agency
• FPB lobbies Government for tax cuts
• Mandelson signals trade credit scheme will not be extended
• File sharers face disconnection or fine under Digital Economy Bill
• Sector Skills Council launches new standards for assistant practitioners
• Social enterprises are 'recession busters', survey shows
• Farm incomes forecast to fall in 2010
• Nearly half of pubs see food sales rise during 2009
• Survey highlights 'huge opportunity' to cater for disabled customers
• New council to regulate pharmacy industry
• Energy bill does not go far enough for local shop owners, says trade body
• Planned law could mean prolonged payment period for construction firms
• Government guide to new training regulations
• UK economy at a glance
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News round-up
Businesses must balance VAT rate change decision, says expert
Small businesses must balance the cost of changing all their prices with the cost of absorbing the VAT increase when the rate reverts to 17.5% at the beginning of 2010, a legal expert has warned. Nigel Smith, professional support lawyer at law firm Charles Russell, told BAD News that business owners must make a choice between changing all prices or keeping prices the same and absorbing the VAT increase themselves.
For more on this story go to:
http://www.betterbusinessadviser.co.uk/public/917.cfm
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Recruitment freeze thaws but employers plan pay restraint
Research by the Confederation of British Industry (CBI) and recruitment consultancy Harvey Nash indicates that fewer employers are implementing a recruitment freeze as the economy improves but many are still cautious about increasing pay. The results of the Employment Trends Survey 2009 for the third quarter show that 37% of firms are now planning to freeze recruitment, compared to 61% in the spring of 2009. Furthermore, nearly half of respondents said they believe that the UK is a less attractive place to do business than it was in 2004.
To read more on this story go to:
http://media.harveynash.com/uk/mediacentre/press_releases_group/tough_pay_restraint_ahead_but.htm
To read the full survey results go to:
http://media.harveynash.com/uk/mediacentre/Harvey%20Nash%20CBI%20Employment%20Trends%20Survey%202009.pdf
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Legal updates
Social network checks on employees could lead to discrimination claims
Employers should exercise caution when using social networking websites to vet potential employees because it could leave them open to discrimination claims, the Law Society has warned. Under the Employment Practices Data Protection Code, an employer should only use vetting where there is a risk to the employer, customers or other employees and should not rely on gathering information from Facebook or MySpace. Employers are able to get information on someone's religion or sexual orientation using these websites and this could potentially lead to a discrimination claim if it is seen to impact on the decision to employ someone, the Law Society says.
For more on this story go to:
http://www.lawsocietymedia.org.uk/site.php?s=1&content=35&press_release_id=1207&mt=34
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Government confirms final agreement on agency worker directive
The Government has confirmed it will implement the Agency Workers Directive in 2011, which was announced in the Queen's speech last week. The rule, which will give temporary workers the same rights as permanent workers after 12 weeks, including holiday entitlement and pay, will be introduced into UK law in 2010 but will not come into force until October 2011.
To read more on this story go to:
http://www.guardian.co.uk/politics/2009/nov/18/queens-speech-agency-workers
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Bribery laws could 'catch out' businesses
Businesses trading abroad could be caught out by possible new UK bribery laws, a legal expert has warned. The Bribery Bill, which is going through Parliament, will make it illegal for firms to undertake activities that are considered to be bribery and make it possible to prosecute directors who do not prevent employees from bribing. However, this "has the potential to be a real grey area", according to a spokesperson for law firm Ward Hadaway, who says business owners should ensure they have adequate policies and safeguards in place to prevent offences.
For more on this story go to:
http://www.wardhadaway.com/page/news/article.cfm?coArticleNews_articleid=169&coArticleNews_displayFromPanel=true
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Tax and money
Credit rating crisis hampering recovery, claims agency
A lack of up-to-date credit information on small and medium-sized businesses is hampering the UK's economic recovery, according to credit reference agency Graydon UK. Research by the firm reveals that more than 60% of businesses are considered to be an 'above normal' credit risk. A spokesperson for Graydon said that small firms must use their credit score "as tools to help them gain credit and finance".
To read more on this story go to:
http://www.creditman.biz/uk/members/news-view.asp?newsviewID=10859&id=1&mylocation=News&chksrc=NNow4251
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FPB lobbies Government for tax cuts
The Forum of Private Business (FPB) has announced it is lobbying the Government for a range of tax cuts in order to help small firms thrive as the UK economy emerges from recession. The trade body is calling for a cut in Corporation Tax to 20%, a reduction in VAT for labour-intensive businesses, such as hairdressing and home repair, and automatic enrolment for Small Business Rate Relief. A spokesperson for the FPB says that the Government "must create a tax environment where [small firms] can thrive".
For more on this story go to:
http://www.fpb.org/news/2272/FPB_proposes_a_tax_environment_that_supports_small_businesses.htm
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Mandelson signals trade credit scheme will not be extended
Business Secretary Lord Mandelson has hinted that he will not extend the Trade Credit Insurance Top-up Scheme (TCITS) when it expires at the end of 2009. The £5 billion scheme, which was launched in May 2009, has only helped 72 firms secure £18 million worth of cover so far. Lord Mandelson said the market is beginning to change and "suggests the sort of scheme is no longer needed". The Government's decision will be announced in the Pre-Budget Report on 9 December.
To read more on this story go to:
http://www.ft.com/cms/s/0/9b27f9be-d470-11de-a935-00144feabdc0.html
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IT and Internet
File sharers face disconnection under Digital Economy Bill
Illegal file sharers could face disconnection from the Internet under measures included in the Digital Economy Bill. Internet Service Providers (ISPs) will be obliged to take action on peer-to-peer file sharing and send notifications to customers who are suspected to have infringed copyright by illegally downloading files.
For more on this story go to:
http://news.zdnet.co.uk/communications/0,1000000085,39893271,00.htm
To read the Digital Economy Bill go to:
http://interactive.bis.gov.uk/digitalbritain/digital-economy-bill/
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Retail and sector news
Sector Skills Council launches new standards for assistant practitioners
Skills for Health, the Sector Skills Council for the healthcare sector, has published new standards for assistant practitioners. The six core standards cover areas such as recruitment, education and training, competences and development. Assistant practitioners work in a variety of roles across healthcare under the management of a professional, such as a dietitian, occupational therapist or physiotherapist. The standards apply in England, but Skills for Health hopes they will be applicable across the UK after further research.
For more on this story go to:
http://www.skillsforhealth.org.uk/~/media/Resource-Library/PDF/Core-standards-for-Assistant-Practitioners.ashx
To read the full set of standards go to:
http://www.skillsforhealth.org.uk/~/media/Resource-Library/PDF/Core-Standards-for-APs.ashx
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Social enterprises are 'recession busters', survey shows
Social enterprises are recession busters and have performed considerably better than other small businesses during the economic downturn, a new report claims. The State of Social Enterprise Survey 2009, carried out by the Social Enterprise Coalition, reveals that 56% of social enterprise organisations have increased their turnover since 2008, while 48% are confident of future growth. Furthermore, the survey results also show that the public sector is a key customer for social enterprises, with nearly 40% stating that more than half their income comes from this sector.
To read more on this story go to:
http://www.socialenterprise.org.uk/data/files/stateofsocialenterprise2009.pdf
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Farm incomes forecast to fall in 2010
Income from farming could drop by around 8% during 2010, according to forecasts by the Department for Environment, Food and Rural Affairs (Defra). The prediction was made despite the fact that farm incomes grew by a quarter in 2009, due to lower costs and a favourable exchange rate between the euro and sterling. However, Defra forecasts that the exchange rate will not be as favourable next year and will adversely affect farmers' income.
For more on this story go to:
http://www.farmersguardian.com/news/farm-income-to-fall-8-per-cent-in-2010/29009.article
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Nearly half of pubs see food sales rise during 2009
Pubs selling food have seen their sales increase during 2009, according to a new report. The Publican Food Report, which is published by 'The Publican' magazine, reveals that 43% of pubs that concentrate on selling food have seen sales rise during 2009 as a result of diverse menus and discount offers. The report also reveals that there has been an increase in the number of pubs providing vegetarian and ethnic food as well as different types of meals, such as breakfast and lunch.
To read more on this story go to:
http://www.thepublican.com/story.asp?sectioncode=7&storycode=65782
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Survey highlights 'huge opportunity' to cater for disabled customers
Hospitality and tourism businesses have been reminded of the "huge opportunity" to cater for disabled customers and their companions. The reminder comes as tourism body VisitEngland's latest UK Tourism Survey reveals that this group of tourists spent around £1 billion in the first six months of 2009. The survey shows that 12% of all overnight domestic trips in the UK were made by customers with a health condition or impairment. A spokesperson for VisitEngland said this number is "hugely significant" and catering for disabled customers makes sense "morally [and] economically".
For more on this story go to:
http://www.caterersearch.com/Articles/2009/11/20/331017/
new-figures-highlight-economic-importance-of-disabled-customers.html
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New council to regulate pharmacy industry
A new body will regulate the pharmacy profession from next year and will introduce new regulations relating to the profession. The General Pharmaceutical Council (GPhC) will replace the Royal Pharmaceutical Society of Great Britain (RPSGB) as regulator from spring 2010. There are also impending regulatory changes, which will introduce statutory continuing professional development, statutory standards for premises and statutory registration for pharmacy technicians.
To read more on this story go to:
http://www.pharmacyregulation.org
For more information on the regulation changes go to:
http://www.pharmacyregulation.org/changestopharmacyregulation/index.aspx
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Energy Bill does not go far enough for local shop owners, says trade body
The Association of Convenience Stores (ACS) has called on the Government to do more to help small businesses and protect them from the "bullying tactics" employed by energy providers. The Energy Bill, which was announced in the Queen's speech, gives regulator Ofgem the power to protect consumers, but the ACS believes this power should extend to help businesses. An ACS spokesperson said that retailers are "vulnerable" to rollover contracts that include unfair tariffs.
For more on this story go to:
http://www.acs.org.uk/en/Press_Office/e-bulletin/details/index.cfm/obj_id/5B831B26-852D-4A61-A4FFE12129D5154E
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Planned law could mean prolonged payment period for construction firms
A group of construction trade bodies has announced its plan to lobby Parliament over clauses in the Construction Bill, which could lengthen the period taken for businesses to get paid. The group, which comprises the National Federation of Builders, the Civil Engineering Contractors Association, the Scottish Building Federation and the UK Contractors Group, has criticised the bill as "poorly drafted" and claimed that some of the provisions would lengthen payment periods. It is expected that the bill will come into force early in 2011.
To read more on this story go to:
http://www.building.co.uk/story.asp?sectioncode=29&storycode=3152993&channel=284&c=3
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Events
Business Opportunity Show, London Olympia, 26 to 27 November 2009
This event is a showcase for a variety of business ideas and opportunities and is part of the Business Startup Show, which it runs alongside. Exhibitors include businesses offering opportunities for franchises and start ups, as well as seminars and workshops on starting up a business. Entry is free but registration is required.
For more information go to:
http://www.businessopportunityshow.co.uk
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Online Information 2009, London Olympia, 1 to 3 December 2009
This event features exhibitors of online content, e-publishing and library management solutions and provides visitors with an opportunity to research new content and information management technology. There will also be free educational sessions, workshops and talks.
For more details go to:
http://www.online-information.co.uk/online09/index.html
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Useful publications and websites
Government guide to new training regulations
The Department for Business, Innovation and Skills (BIS) has published guidance for businesses on the new regulations that give employees a legal right to request training. From April 2011, all employees who have worked for an employer for at least 26 weeks will have the right to request time for training. This guide covers what is expected of employers and what they must do when they receive a request.
To download the guide go to:
http://www.dius.gov.uk/~/media/publications/T/time-to-train-employer-leaflet
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| Indicator | Value | Change on week | Change on month | Change on year |
| FTSE 100 | 5363.61 | + 2.39 | + 162.61 | + 1210.61 |
| £ against US | 1.65 | - 0.02 | + 0.02 | + 0.16 |
| £ against € | 1.10 | - 0.01 | + 0.02 | - 0.08 |
| UK inflation | 1.5% | none | + 0.4% | - 3.0% |
| UK interest rates | 0.5% | none | none | - 2.5% |
* Figures are as at midday on 24 November 2009
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Also from the publisher of BAD News
The following are links to our related services specifically aimed at helping small business owners and advisers.
BETTER business magazine - Practical tips for business owners:
http://www.better-business.co.uk
Hundreds of small business guides, market reports and factsheets:
http://www.scavenger.net
How to find more customers and increase sales:
http://www.ukmarketingbible.com
Free weekly tips, ideas and tactics bulletin for small business owners:
http://www.enterprisequest.com
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