News


CBI No quick fixes


The volume of business in UK financial services grew for the seventh quarter running and at the fastest pace since June 2007, in the three months to December, according to the latest CBI/PwC Financial Services Survey. The level of business was also seen as being normal, after being regarded as below normal since September 2007.


Lee Tillcock welcomes you to the February issue...


Businesses are happy to take their chances as long as they are performing on a level playing field. This is hardly the start to the New Year they are receiving if the latest reports of the HMRC’s small business records checks (BRC) project is correct.


During the last fortnight both the FSB and the FPB have criticised the seemingly unfair approach being displayed by HMRC. Against a backdrop of stories detailing a softly softly approach to the tax liabilities of major corporations, the BRC scheme will see firms unable to meet HMRC requests for information fined up to £3,000. No one condones tax evasion at any level but imposing steep fines for slight delays in tax bill payments as well as records errors or omissions on SMEs will hamper the struggling economy further.


HMRC has said it intends to review the records checks project but would continue with a ‘limited number’ of pilot checks, with the results to be evaluated as part of the review. An original figure of 20,000 firms were due to expect a visit from the taxman in 2012-13. Going forward let us hope that the recently announced Alternative Dispute Resolution (ADR) pilot for SMEs helps to resolve future disputes.


As always, if you have any comments on the magazine or business finance in general, please feel free to contact me. I hope you enjoy this issue


In the next three months firms expect business to continue growing, albeit at a slightly slower pace. However, this positive picture is tempered by a fall in sentiment and employment levels in this quarter. Firms also say that they plan to invest less over the coming year. Shortage of finance, uncertainty about demand and business prospects, and inadequate return on investment were seen as the factors most likely to limit investment.


In a separate report, in his New Year’s message the CBI Director-General, John Cridland, said that whilst there are no quick fixes for the UK economy, a concerted effort to tackle the serious imbalances which created our legacy of debt and faltering growth will secure a better, brighter future. In a new report featuring a ‘Vision for rebalancing the economy’, the CBI explains that it believes by acting now, the UK can move


Business Moneyfacts


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Best Business Current Account Provider Santander


Best Notice Business Account Provider Investec Bank (UK)


Best No Notice Business Account Provider Santander


Best Business Fixed Account Provider Principality Building Society


Best Charity Account Provider Lloyds TSB


Best Online Banking Provider HSBC


Best Business Card Provider American Express


Best Offshore Business Deposit Account Provider Yorkshire Guernsey Ltd


Best Buy-to-Let Mortgage Provider BM Solutions


Telephone: 01603 476651 e-mail: ltillcock@moneyfacts.co.uk


Best Service from a Buy-to-Let Mortgage Provider Godiva Mortgages


Best Service from a Commercial Mortgage Provider Santander Business Banking


Best Bridging Finance Provider Dragonfly Property Finance


Best Service from a Bridging Finance Provider Masthaven Bridging Finance Ltd


Best Factoring & Invoice Discounting Provider Venture Finance Plc


Best Leasing & Asset Finance Provider Lombard


Best Business Motor Finance Provider Arval


Best Service from an Asset Based Finance Provider BNP Paribas Leasing Solutions


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Best Business Recovery Specialist MCR


away from its dependence on debt driven household and government spending and increase business investment and net trade.


To achieve sustainable growth in the medium to long-term, the economy has to become more driven by investment and exports, while allowing the burdens of both government and consumer debt to subside. Failing to rebalance alongside debt reduction would leave the economy struggling to grow. “Rebalancing has to be the right answer for a stronger UK in the years ahead. Getting the pain over as quickly as possible through determined deficit reduction also makes sense,” added John Cridland


“We need to identify how the UK will earn its living and pay its way in the years ahead and that means adjusting to change. There are no easy answers when it comes to


securing future long-term growth. The hard graft of rebalancing is the only way it can be achieved, so it’s time to stop talking about it and get on with it,” said John Cridland.


Award Winners 2011


Best Commercial Mortgage Provider Barclays Bank


Best Corporate Finance Boutique Precision Corporate Finance


Most Innovative Product Lloyds TSB (Market Linked Deposit)


Innovation in the SME Finance Sector Barclays Bank (Take One Small Step)


Best Service from a Business Bank HSBC


Business Bank of the Year Santander


Asset Based Finance Broker of the Year Touch Financial Support


Commercial Mortgage Broker of the Year B&P Finance Consultants Ltd


Outstanding Achievement Award Federation of Small Businesses


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February 2012


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