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Commercial Finance Introducer: News
31
Promising signs as business
Over-
confidence rises again
regulation
could harm
Britain's businesses are regaining for the wider economy also rose in confidence balance (53 per cent),
faith in their own prospects and in May. The balance of firms expecting followed by those in the North (24
consumers
the UK economy, according to the economic conditions to improve hit per cent) and South (13 per cent).
latest Lloyds TSB Corporate 40 per cent (with 61 per cent feeling Surprisingly, although firms in the
The Finance & Leasing
Markets Business Barometer. more optimistic and 21 per cent South are the least confident in
Association (FLA) has warned
The survey shows that, in May, feeling more pessimistic). This their own prospects, they are by far
that too much regulation could
confidence levels amongst represents a dramatic rise on April's the most positive about the outlook
slow down economic recovery
businesses across the UK improved balance of 11 per cent. for the wider economy.
and harm consumers.
for the third consecutive month, Firms in the industrial and Trevor Williams, chief economist,
Responding to the proposed
hitting their highest levels in almost services sector saw a particular Lloyds TSB Corporate Markets,
Consumer White Paper, the
a year. boost in confidence. The balance of said: "While it would be premature
FLA said it is committed to
The number of firms expecting services firms expecting better to talk of an end to the recession,
promoting responsible lending
business activity to rise rose to 44 trading conditions in the coming 12 we should be careful not to
and delivering real help now for
per cent in May, compared to 35 months rose 16 per cent, to 30 per overlook the significance of the
customers in financial
per cent in April, while the number cent, while for industrials the growing confidence we are
difficulties. It also supports a
expecting activity to worsen, fell balance increased by 29 per cent to witnessing amongst businesses.
number of recent measures to
from 21 per cent, in April to 16 per 15 per cent - perhaps fuelled by the "Confidence is always the
help people in trouble,
cent in May. This shift in brighter picture emerging from foundation on which any recovery
including: a "breathing space"
expectations means that the balance European data. is built. We've now seen three
for unsecured credit borrowers
for May (the positives minus the Across the regions, there was consecutive months of growing
with debt problems allowing
negatives) shot up to 28 per cent - a universal increase in optimism optimism amongst UK businesses -
them time to get the help they
14 per cent increase on the previous about business prospects for the and if this persists over coming
need; working with the
month. next twelve months. Firms in the months the recovery should not be
Government to deal with firms
Businesses' views on prospects Midlands now have the strongest too far behind."
which mislead people over the
possibility of writing off their
debts; and helping to develop a
New business face of UK unveiled
self-help debt advice toolkit.
But it believes the risk now is
that a proliferation of
The UK's business landscape is set According to the report's
regulatory reviews and
for its biggest shake up since the authors, the changes are being circle6
Wales, Cornwall, Glasgow)
consultations, coupled with the
industrial revolution, according to driven by the recession, which will circle6
Cybernetics (Reading)
Gaming (Dundee, Edinburgh,
further regulation already in
HSBC's Future of Business report. create an emphasis on Glasgow)
the pipeline, could cause the
Unveiling a new map of the interpersonal skills in business; Report author, Martin
market to shrink further. The
nation, the report uncovers a technological advances; the Raymond said: "In the last
consequences for the
changing landscape, which is demands of many for new and decade, the notion of the ‘culture
availability of credit could be
populated with new centres for flexible ways of working; more capital' became a buzzword, as
serious.
gaming, wind farms and robotics business trade taking place across cities such as Cardiff, Newcastle,
Commenting, Fiona Hoyle,
dominating the traditional map of international borders, and a rise Gateshead, London and Liverpool
the FLA's head of consumer
UK industry - which was plotted in entrepreneurship. It predicts worked with so-called
finance, said: "The industry
with factories, power stations and that what the UK has been known ‘starchitects' such as Norman
strongly supports responsible
livestock. for since the industrial revolution Foster, Richard Rogers and
lending and we welcome some
The report, from HSBC is set to change, and fast. Wilkinson Ayre to create business
of the measures in the White
Commercial Banking and The According to the research there opportunities and global profiles.
Paper. But we already face a
Future Laboratory, predicts that will be a new-look UK with hot We are about to see innovation,
barrage of new regulation.
the economic downturn, b
There are now real risks for
increased emphasis on circle6
usiness hubs focusing on: technology and wireless connect-
Robotics (Edinburgh, ivity being used in the same way,
consumers who face reduced
internationalisation and changing Birmingham, Essex, London, according to our panel of experts.
credit availability and higher
demands on business will
prices.
profoundly alter the UK's circle6
Manchester, Plymouth) "They predict the rise of
Biotech (York and Dundee) ‘supercities' and regions such as
"The Government needs to
‘business map' as the 21st century Nanotech (Oxford, Cambridge, Newcastle, Leeds, Liverpool and
take action to deal with the
unfolds. It is forecasting a new Newcastle, Durham, Bristol, Brighton over the next 20 years.
wholesale funding problems in
regional geography with the birth
parts of the credit market, and
of five new ‘supercities' and a map circle6
London) These supercities and regions will
Stem cell research (Edinburgh, derive their status, income and
should avoid regulatory over-
of tomorrow populated by London, Cambridge, Liverpool, prestige from new economic
load. The real challenge now is
nanotech, cybernetics and a
to maintain availability and
growing emphasis on bio and tech circle6
Manchester) income streams such as biotech,
Nutraceuticals stem cell research, innovation,
affordability of credit, which are
sciences driven by new economic
under threat."
income streams. circle6
(Dundee/Southampton) gaming and even alternative work
Renewable energies (London, practices and business models."
www.mortgageintroducer.com July/August 2009 Mortgage Introducer
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