Unemployment swells to 14-year high
The recession may have bottomed out but the latest unemployment figures tell a different story with unemployment reaching 2.4 million – the highest level since 1995.
John Philpott, Chief Economist at the Chartered Institute of Personnel and Development, was alarmed by the figures. “Any optimism that unemployment will peak below 3 million next year before the jobs outlook starts to improve would appear to have evaporated.”
The British Chamber of Commerce share his pessimism, forecasting that unemployment will peak at 3.2 million.
The picture is most bleak with the youngest section of the workforce, with the number of 16-25s out of work looking certain to exceed the 1 million mark by the end of the summer.
Business Secretary Lord Mandelson is concerned. “This is something the whole country has got to rally to. We need public and private employers, as well as those in the charity sector, to help us to mount this national campaign to back young Britain.”
Youth initiatives Lord Mandelson is looking to business to provide include work experience, mentoring and internships, something the Federation of Small Businesses (FSB) is all too keen about.
In fact FSB are campaigning for the Government to create 5,000 new internship placements in small businesses to tackle soaring graduate unemployment under a new Graduate Employment Scheme.
FSB research has found that more than 20 per cent of small firms would take on a graduate, yet 45 per cent are unaware that they can run internships for graduates.
This is in contrast to small businesses’ involvement with students straight out of school, where more than 69 per cent of all apprenticeships already take place in a small firm. Similar programmes for graduates are not widespread and the FSB is urging the Government to allocate 10 per cent of the £32 million pot of money allocated to universities to establish 5,000 extra placements with small firms this year.
John Wright, national chairman of the FSB, said: “The FSB is calling on the Government to invest just £3 million of existing funds to market and develop internships in small businesses – creating an extra 5,000 placement positions for graduates in small firms. Small businesses are the sector to create and retain jobs and act as a bridge to formal employment. Around 20 per cent say they want to take on skilled graduates. The Government must invest in linking up small businesses and graduates now to prevent graduate unemployment spiralling any further.”
Police must tackle rising crimes on small businesses
The Federation of Small Businesses (FSB) is launching a best-practice checklist for police officers to use to combat the growing number of crimes committed against small businesses.
Figures from AXA, insurer of small and medium businesses, show year-on-year figures on crimes against businesses have increased by about 10 per cent to the end of 2008, with crimes figures only likely to increase as the recession goes on.
The FSB is urging police forces to pay attention to these figures and listen to the concerns of small businesses on their beat.Mike Cherry, FSB Home Affairs Chairman, said: “All the reports show that crimes against business are rising during the recession and businesses risk becoming victims due to an increase in threatening behaviour, burglary, arson and assaults on their staff. The police cannot allow these warning signs to pass them by.”
ACC Allyn Thomas of the Association
of Chief Police Officers, said: “I am sure Police Forces would welcome the opportunity to hear the concerns of the business community and we are developing proposals to take this forward with the Home Office and the Association of Police Authorities in the autumn.”
£150m technology fund targets small businesses
Science minister Lord Drayson has adopted a lower-risk portfolio approach for the venture capital-based £150 million Innovation Investment Fund.
It will spread the investment risk across a number of different technology management teams to ensure the best results for the taxpayer and the economy.
Fund managers will target progressive-looking enterprises in the life sciences, low-carbon, digital and advanced manufacturing business in search of worthwhile investments.
Lord Drayson hopes the fund, which is the biggest of its type in Europe, will encourage small high tech businesses to grow and develop.
Small businesses have been slow to take up technological funds earmarked for them, but Lord Drayson believes the specialist funds will be able to target the best small companies.
HMRC and Companies House announce new online approach to filing
A common approach to filing company accounts online was announced in Septmber by HM Revenue & Customs (HMRC) and Companies House.
To help reduce administrative burdens on business, Companies House has announced that it will accept company accounts in a data format known as Inline XBRL (iXBRL), which is the same format all Company Tax Returns (CTRs) – including the return form, company accounts and tax computations – must be submitted online to HMRC from April 2011 (for accounting periods ending after 31 March 2010).
Companies House will introduce their iXBRL service for unaudited full accounts by the summer of 2010, and then continue to develop their iXBRL capability for all the main types of accounts they receive. HMRC’s new iXBRL service for CTRs will be available from November 2009, with commercial software that is iXBRL-enabled widely available from Spring 2010.
Mark Holden, Programme Director of HMRC’s Carter Programme, said: “Today’s joint statement is an important step towards our goal of offering a joint filing facility for company accounts and Company Tax Returns, as recommended by Lord Carter’s Review of HMRC’s Online Services.”
Gareth Jones, Chief Executive of Companies House, added: “This early statement of our intentions will reassure businesses that both HMRC and Companies House are working closely together to align our services to make the filing of accounts as easy as possible for UK companies.”
On the web
Five sites for online support and advice for SMEs
www.berr.gov.uk
The website of the UK Department for Business, Enterprise and Regulatory Reform. Complete with business news, support, sector information, a valuable resource for SME owners.
www.businesslink.gov.uk
Your first online port of call – a free business advice and support service, with advice on employees and topics such as taxation and payroll and addressing issues relevant to your business.
www.hmrc.gov.uk
Essential information for businesses on all issues relating to taxation and their business.
www.carbontrust.co.uk
An independent company backed by the government, the Carbon Trust provides information for your business on how to reduce carbon emissions and save money.
www.britishchambers.org.uk
A national business network for member businesses across the UK but a useful resource for companies for general information and on issues of best practice.