CHAMBER OPINION CHAMBER OPINION


A recent study of businesses across all sectors and regions by top 40 accountants Bishop Fleming reveals confidence is holding up, despite uncertainty over the UK's likely divorce deal with the EU. The firm's latest Business Barometer shows


Changes to the


minimum wage From 1 April 2017 the National Minimum/Living Wage and Apprentice Rate will increase. Under the new regulations, all workers aged 25 or above must earn a minimum of £7.50 an hour, so it’s vital that business owners take the right measures to ensure this increase is reflected within their business. The rules will be strictly enforced as failure


to pay a worker their legal entitlement is a criminal offence and can result in an employer being fined and highlighted by HM Revenue and Customs. It is important to ensure that your business remains compliant with these new standards to avoid being met with costly penalities. Here are a few points to help prepare you;


Employees • The National Minimum Wage/Living Wage and Apprentice Rate is going up on 1 April 2017


• Check your pay (use our online resource at GOV.UK)


• Speak to your employer to make sure you get the right wage


Employers • The National Minimum Wage and National Living Wage is going up on 1 April


• Check you are paying your employees correctly (visit GOV.UK for support)


• Be aware of the law for not paying the right wage.


How much is it? 25 and over........................................................£7.50 21 to 24................................................................£7.05 18 to 20...............................................................£5.06 16 to 17................................................................£4.05 Apprentice ........................................................£3.50


A higher minimum/living wage is being brought in to better increase the standard of living for UK citizens as well as preparing for a post Brexit economy. Make sure that your business is ready and start getting prepared today!


that 44% of business owners remain confident about the year ahead, an improvement on the 32% confidence vote taken just after the EU referendum. Although still low, the survey


revealed a stabilisation in confidence over the last six months, welcomed by the firm. The study also showed a renewed drive to hire staff - with three out of five surveyed planning to take on more workers in the year ahead, up from just under half being willing to do so only three months earlier. According to Matthew Lee


THE POLITICAL POLICIES THAT AFFECT THE REGION


Brexit won’t shake business confidence


On the international front, three out of five


businesses with overseas trading interests continue to expect no increase in overseas trade over the next twelve months. This figure has held steady since the Brexit vote. There was, however, a small increase from 41% to 45% of firms anticipating that the fall in the value of Sterling will have a positive effect on their trade.


‘Although uncertainty


remains, business owners are


getting on with running their companies’


(pictured), Bishop Fleming's Managing Partner: "Despite concerns over spiralling employment costs, firms in some sectors want to get on with the job and appear more willing to recruit." On the downside, the survey revealed a rise


from 28% to 36% of businesses expecting to see no increase in sales over the next twelve months, reflecting an element of gloom in certain sectors of the economy. Mr Lee commented: "Consumer demand has


undoubtedly been dampened by Brexit and the government's austerity measures, resulting in some industry sectors continuing to struggle. This is concerning where labour costs and business rates are rising to put margins under pressure. The economy may begin to slow down next year at the same time as inflation and interest rates rise, so particular sectors may face financial problems and a rise in insolvencies."


Mr Lee commented: "The fall in the value of the pound since the Brexit vote has made our goods and services more attractive for overseas customers, though it also generates price inflation for our imports. We need to improve our balance of trade and improve the export ambitions of our


companies." He added: "As the hard


talking between the UK and the EU begins over a post-Brexit trade position, coupled with a slowing


Chinese economy and Eurozone debt problems, businesses face an extraordinary level of uncertainty. We have also yet to fully understand the effects of President Trump's proposed tax cuts and his protectionist agenda, which risks putting the UK and US in direct competition with each other for inward investment." He continued: "Overall, the survey reveals


that although uncertainty remains, business owners are getting on with running their companies, though they are avoiding any major investment decisions whilst business sentiment remains fragile. The UK has an unprecedented opportunity to develop new fiscal, trade and investment strategies for life outside the EU, and I hope to see these materialise in a pro-business Budget on 8 March."


16 Chamber Profile March/April 2017


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