Originally written by Anna Jordan on Small Business
Small businesses are feeling much more confident as shops reopen in England and Wales, according to the Federation of Small Businesses (FSB).
The group reports that its UK Small Business Index confidence measure has risen to 27.3 in Q1 2021, up from -49.3 in the last quarter. The index is at its highest level since Q3 2014 when it hit +41.00 and is in positive territory for the first time since Q2 2018.
Figures also show that close to two-thirds (58 per cent) expect performance to improve while fewer than a third (31 per cent) are expecting it to worsen.
More than half (51 per cent) of the almost 1,700 business owners surveyed believe their revenue will increase over the next three months. That’s the highest proportion since the summer of 2015. Fewer than one in four (24 per cent) expect sales to fall. The same figure stood at 84 per cent at this time last year.
Even more (53 per cent) aspire to grow their businesses over the next 12 months, the highest since Q3 2019, marking a 22-point percentage jump since this time last year.
It’s not all positive, though. Research from Nucleus Commercial Finance also
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April 12 reopening – which small businesses can reopen in England?
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Shops, pubs and restaurants and other small businesses have been reallowed to reopen, as of April 12.
However, the rules on social contact still apply: indoor settings must only be visited alone or with household groups; outdoor settings are limited to either six people or two households.
This includes non-essential retail; personal care premises such as hairdressers, beauty and nail salons; and indoor leisure facilities such as gyms and spas (but not including saunas and steam rooms, which are due to open on May 17).
>See also: Small business confidence grows as shops reopen in England and Wales
The majority of outdoor settings and attractions have also reopened, including outdoor hospitality, zoos, theme parks, drive-in cinemas and drive-in performances events.
Hospitality venues can open for outdoor service, with no requirement for a substantial meal to be served alongside alcohol, and the 10pm curfew has been scrapped. The requirement to eat and drink while seated will remain.
>See also: Covid-19 roadmap – when can I reopen my business in Scotland?
April 12 reopening for small businesses
Clothing shops
Homeware shops
Toy shops
Vehicle showrooms (other than for rental)
Betting shops
Tailors
Tobacco and vape shops
Electronic goods shops
Mobile phone shops
Auction houses (except for auctions of livestock or agricultural equipment)
Market
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Small business confidence grows as shops reopen in England and Wales
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Small businesses are feeling much more confident as shops reopen in England and Wales, according to the Federation of Small Businesses (FSB).
The group reports that its UK Small Business Index confidence measure has risen to 27.3 in Q1 2021, up from -49.3 in the last quarter. The index is at its highest level since Q3 2014 when it hit +41.00 and is in positive territory for the first time since Q2 2018.
Figures also show that close to two-thirds (58 per cent) expect performance to improve while fewer than a third (31 per cent) are expecting it to worsen.
More than half (51 per cent) of the almost 1,700 business owners surveyed believe their revenue will increase over the next three months. That’s the highest proportion since the summer of 2015. Fewer than one in four (24 per cent) expect sales to fall. The same figure stood at 84 per cent at this time last year.
Even more (53 per cent) aspire to grow their businesses over the next 12 months, the highest since Q3 2019, marking a 22-point percentage jump since this time last year.
However, the FSB is also calling for cuts to hiring costs
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A quarter of small exporters cease selling to EU since Brexit transition end
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
More than a quarter of small exporters have ceased selling to customers in the EU following post-Brexit transition delays.
The Federation of Small Businesses (FSB) warns that what might have been previously dismissed as ‘teething problems’ could become systemic.
A survey of nearly 1,500 small companies carried out by the FSB found that 23 per cent had temporarily stopped selling to the EU while four per cent had halted sales permanently. Eleven per cent of exporters were said to be considering a permanent halt.
The same proportion had set up or were thinking of establishing a presence in a European country to make the process easier. Around nine per cent may secure, or are already using, warehouses in mainland Europe or Northern Ireland for the same purpose.
Small importers have been particularly hard hit by new paperwork as 17 per cent temporarily halt purchases from the EU. What’s more, a massive 70 per cent of importers and exporters say they have suffered delays when moving goods around the EU in recent weeks. More than 30 per cent have lost goods in transit and a slightly higher proportion have had goods held indefinitely at EU border crossings. Of
Hot Business News Today
A quarter of small exporters cease selling to EU since Brexit transition end
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
More than a quarter of small exporters have ceased selling to customers in the EU following post-Brexit transition delays.
The Federation of Small Businesses (FSB) warns that what might have been previously dismissed as ‘teething problems’ could become systemic.
A survey of nearly 1,500 small companies carried out by the FSB found that 23 per cent had temporarily stopped selling to the EU while four per cent had halted sales permanently. Eleven per cent of exporters were said to be considering a permanent halt.
The same proportion had set up or were thinking of establishing a presence in a European country to make the process easier. Around nine per cent may secure, or are already using, warehouses in mainland Europe or Northern Ireland for the same purpose.
Small importers have been particularly hard hit by new paperwork as 17 per cent temporarily halt purchases from the EU. What’s more, a massive 70 per cent of importers and exporters say they have suffered delays when moving goods around the EU in recent weeks. More than 30 per cent have lost goods in transit and a slightly higher proportion have had goods held indefinitely at EU border crossings. Of
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Government mulls extending 2% online sales tax to all small businesses
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The Government may extend its proposed 2 per cent online sales tax to all small business – both online and bricks and mortar.
It’s been urged to extend online sales to high street sales that have been made online, such as travel, accommodation and software.
Around £100bn a year is spent with retailers, and the value of all online sales excluding financial services is £700bn, the Treasury said.
This proposal emerged in the interim report on the Business Rates Review, to which the Chancellor is due to respond at the autumn Budget. The report – a summary of business responses – was published on ‘Tax Day’, a new arrangement at which consultations and reviews are released after the Budget.
The Treasury is under more immediate pressure to cut business rates, which raise £30bn a year but have been blamed for harming the high street by penalising physical retailers.
HM Treasury has published a host of consultations and plans to make tax work in the modern day, while trying to recover £31bn every year which is lost to flaws in the current tax system.
>See also: Kevin Hollinrake calls for abolition of business rates
“Respondents stressed that uniform business rates reductions
Hot Business News Today
Government mulls extending 2% online sales tax to all small businesses
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The Government may extend its proposed 2 per cent online sales tax to all small business – both online and bricks and mortar.
It’s been urged to extend online sales to high street sales that have been made online, such as travel, accommodation and software.
Around £100bn a year is spent with retailers, and the value of all online sales excluding financial services is £700bn, the Treasury said.
This proposal emerged in the interim report on the Business Rates Review, to which the Chancellor is due to respond at the autumn Budget. The report – a summary of business responses – was published on ‘Tax Day’, a new arrangement at which consultations and reviews are released after the Budget.
The Treasury is under more immediate pressure to cut business rates, which raise £30bn a year but have been blamed for harming the high street by penalising physical retailers.
HM Treasury has published a host of consultations and plans to make tax work in the modern day, while trying to recover £31bn every year which is lost to flaws in the current tax system.
>See also: Kevin Hollinrake calls for abolition of business rates
“Respondents stressed that uniform business rates reductions
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Demand for business stress counselling nearly doubles since Covid
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
An online counselling firm working with businesses whose staff needed help with stress and anxiety saw demand shoot up by 84 per cent over the past year.
Healing Clouds – whose clients include Tesco, HSBC and Crowdcube – said that they are now counselling 3,500 people across the UK compared to 1,900 one year ago.
The rise is highlighted in a report by Harper James Solicitors, which details the impact that the Covid-19 pandemic has had on the mental health of business owners.
>See also: City mayors warn of mental health pandemic among self-employed
Toby Harper, CEO of Harper James Solicitors, said: “The pandemic has made it harder to separate family life from work life. And running a business, particularly as a sole founder, can be a very lonely place. The Government obviously has a massive job in rebuilding the economy and supporting businesses who have faced such a challenging year will be very important.
“But it’s vital too that those in charge of Government policy show awareness of the impact the last 12 months has had on the mental health of those running businesses. For many it will be a long road back.”
The report comes on the
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Number of small businesses in distress triple pre-Covid level
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The number of small businesses in distress has tripled compared with the pre-pandemic average, according to figures from accountancy firm Mazars.
This month almost 135,000 businesses are showing strain, as the impact of a year of Covid-19 restrictions reverberates.
Businesses in the services and retail sectors accounted for almost three-fifths of those showing distress, said Mazars. Sectors allowed to reopen were faring better, with construction and manufacturing businesses making up 7.9 per cent and 6.7 per cent of those in distress respectively.
>See also: UK-EU exports fell by over 40% in January 2021
Paul Rouse, partner at accountancy firm Mazars, said: “During more normal circumstances, we expect between 40,000 and 50,000 companies to trigger one of our negative health markers. Today- even with many Government support measures still in place – we are seeing roughly three times that amount: 135,000.
Rouse said that even these higher figures represented “the calm before the storm” as “significant amounts of business distress” would be felt once the Government withdrew its coronavirus financial support.
London accounts for just over a quarter of businesses in distress (25.58 per cent) followed by businesses more generally in the South East outside the M25 (18.44 per cent).
>See
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UK-EU exports fell by over 40% in January 2021
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
UK exports to the EU dropped by 40.7 per cent in January 2021, according to ONS figures.
This was the first month after the Brexit transition ended, with customs rules changing and firms contending with extra paperwork. The ONS added that imports were also down by 28.8 per cent (£6.6bn) in January.
> See also: How Brexit is going to affect your business – #2 exports
Much of this is likely to be what the ONS calls ‘temporary factors’. These include concerns around the outcome of the Brexit deal as well predictions of a third lockdown towards the end of 2020. Stockpiling in anticipation of these events were likely to contribute to the fall.
However, there were no similar falls in Britain’s trade in non-EU countries, suggesting that Brexit has been a greater contributing factor.
Yael Selfin, chief economist at KPMG UK, said that Brexit was the most likely reason for doing less business with EU countries, but she foresees a recovery: “The longer term [Brexit] impact on supply chains will depend on how attractive the UK remains and the competition from other locations within the EU,” she said.
The scale of the drop in exports is beyond what most