MIp31-33_1209:MI 2008 24/11/2009 16:45 Page 7
Commercial Finance: News
33
Retail sales are up
Business
The Office of National Statistics performed particularly well. The "Both shoppers and retailers will confidence slips
(ONS) retail sales figures for mixed views of the past few months be carefully considering
October 2009 show sales in October now appear to be converging, the forthcoming rise in VAT as we
Confidence amongst British
were up 3.4 per cent from a year indicating positive movement in move ever closer to a percentage
businesses slipped for the
ago and up 0.4 per cent from sales between September and hike in the New
second month in a row, in
October according to the latest
September, with the increase being October. Year. Christmas shoppers will
Lloyds TSB Corporate Markets
driven by rising sales of clothing "The inclement weather and the be looking not only at their gift lists
Business Barometer.
and footwear. late half-term break in October this year, but also big-ticket items
The survey shows that overall
Commenting on the data, have had a positive effect on today's which they may wish to snap-up business confidence fell two
Richard Lowe, head of retail and figures. Over the last month prior to the forth-
points last month, to its lowest
wholesale at Barclays said: anecdotal evidence indicates a coming sales tax increase. In
level since June. However, the
“Christmas’ influence is clearly greater inclination towards weekend contrast to the sudden cut in VAT
overall trend is still rising, and
evident on the high street, and this shopping, boosting Sunday sales. late last year, retailers have been
confidence levels are still
may indeed prove to be a season of The colder weather still to come is aware that it would be reinstated to
markedly higher than in early
2009.
much needed joy for the retail likely to continue to bolster the at least 17.5 per cent since then, and
The balance of firms
sector. Sales are up, and retailers retail sector, particularly in terms of with stocks now under much
expecting business activity to
will feel more encouraged as clothing sales and other winter tighter control their eyes will be
improve slipped 2 per cent to 27
clothing and household goods have essentials. fixed upon margin management." per cent - 38 per cent reported
higher confidence levels, while
Small business owners work longer
11 per cent reported lower
confidence.
Firm's views of the general
New research released by Abbey their business, with a third (33 per recession is having a huge impact
outlook for the economy remain
broadly unchanged. There was a
and Alliance & Leicester Business cent) of small business owners now on small businesses in this country
1 per cent increase, to 43 per
Banking reveals that small business working over 50 hours per week and many owners are sacrificing
cent, in the balance of firms
owners are working longer hours in and one in six (15 per cent) their work-life balance by working
who are now more optimistic
the face of the current economic working in excess of 65 hours a longer hours as they struggle for about the wider economy than
downturn. One in three (34 per week; the equivalent of a minimum the survival of their business.
they were three months ago.
cent) small business owners say that of 13 hours per day over a five day "Not only do business owners
Two thirds (65 per cent) are
they are now working longer hours working week. have a very tough economic
more optimistic, while a fifth (22
than they were just one year ago. With the number of insolvencies climate to contend with, they've
per cent) are more pessimistic.
The average amount of time a up by 39 per cent in the second also been burdened with mounting
Across the regions, the survey
presents a mixed picture. In the
small business owner spends quarter of 2009, compared to the piles of red tape and bureaucracy at
South, there was an 11 per cent
working is 47 hours per week, just same period in 2008, many small the same time, which can distract
increase in confidence (to 38 per
one hour less than the maximum business owners are being forced to them from the running of their
cent) amongst businesses.
number of working hours work longer hours, simply to keep business. They therefore need to However in the Midlands,
permitted by the European their business afloat. make sure that they are getting as
confidence fell markedly - by 16
Working Time Directive. However, Paula Ickinger, head of business much help from their suppliers as
per cent, to just 15 per cent.
many are working much longer in banking marketing at Abbey and they can, including their business
Confidence levels slipped in the
order to maintain and develop Alliance & Leicester, said: "The bank."
North too, by 4 per cent (to 25
per cent).
There was a varied impact
Follow through commitments
across the sectors too.
Confidence levels amongst
Commitments in November’s political rhetoric, but must translate RBS and Northern Rock by
industrial firms jumped 21 per
Queen's Speech to address issues in into improvements in access to ensuring they can only be purchased cent to 40 per cent, but
the banking sector must be followed finance for small firms. Access to by new entrants to the market and
distribution firms (which
through rather than being used for finance needs to be improved provide a greater focus on small
includes retailers) suffered a
political gain, the Federation of through more competition for small business banking.
drop in confidence (down 5 per
Small Businesses (FSB) has warned. business banking on the high street John Walker, national policy
cent to 17 per cent) and services
It said: “The banking sector reform and improving the availability of chairman, Federation of Small
businesses showed a 13 per
cent decline to 27 per cent.
proposals have the potential to help mortgages for the self-employed. Businesses, said: "It has been a tough
Trevor Williams, chief
the quarter of small businesses still The role of Regional Development year for small businesses, with
economist, Lloyds TSB
struggling to access affordable Agencies and their devolved shoppers spending less, larger
Corporate Markets, said:
finance and we welcome support for equivalents should be expanded to companies paying their small "Business confidence has
those grappling with broadband provide more flexible finance locally, suppliers later and banks only just
recovered sharply from the lows
access and looking to play their part while the Post Office Network starting to lend again, although
at the turn of the year, however
in moving towards a low carbon should be turned into a Post Bank often at high rates.
it is still below its long term
economy - however, small firms offering support for small firms by "Many are starting to feel confident
average. But current levels of
must feel the benefit of these utilising the Post Office Network. about their future prospects and it is
business confidence are
consistent with a recovery in
proposals rather than becoming The FSB has also called for the important that any legislation in the
economic growth, albeit a
victims of pre-election rivalry. Chancellor to be creative when next few months, particularly on the
gradual one."
”Any changes in the governance of selling off parts of the nationalised banking sector, helps to develop the
the finance sector must not be pure banks of Lloyds Banking Group, good feeling."
www.mortgageintroducer.com December 2009 Mortgage Introducer
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