Commenting on ONS labour market figures that show unemployment fell.....
16th May
John Walker, National Chairman, Federation of Small Businesses, said:
"It is good news that unemployment has fallen slightly and that self-employment is also on the rise. Our ‘Voice of Small Business' Index showed that confidence among small firms is improving, and so are employment intentions. But we are not out of the woods yet. For small firms to make these jobs in to permanent, full-time roles the Government must put long-term measures put in place to instil this emerging optimism."
Latest on South Worcestershire Enterprise Studio School.......
26th April
South Worcester College is pleased that its application to the Department for Education to open a Studio School in Evesham in Sept 2013 has passed its first hurtle.
The DfE has written to the College to invite it to be interviewed in London on 8th May about its Studio School application. If the College is successful on the 8th then the DfE will give formal approval for the College's plans in July.
Enterprise Studio Schools are different to 'regular' schools. Whilst they still teach traditional curriculum subject to students they also teach practical and technical skills to students who find it easier to apply themselves to work based themes rather than a purely academic school career. The outcomes are students with both academic and workplace skills and qualifications who are ready for the workplace.
The College still needs employers and parents to express their support for the South Worcestershire Enterprise Studio School.
FSB comment on GDP Figures
25th April
John Walker, National Chairman, Federation of Small Businesses, said:
"It is worrying that we are back in recession and proves that 2012 is going to be a difficult year for the economy. High inflation will continue to squeeze business and consumer spending and falling GDP in the eurozone will impact key trading partners. Planned increases in fuel duty due later this year will also hit as fuel prices continue to rise, damaging bottom lines. In order to strengthen economic recovery, Government policies must be bold to have an effect on the ground to boost business investment and job creation as well as consumer confidence."
Marches LEP Chairman's Bulletin - April 2012
On Trends in Lending Report
23rd April 2012
John Walker, National Chairman, Federation of Small Businesses, said:
"It is very disappointing, but not surprising, that the stock of lending in the 3 months to February fell. Project Merlin didn't deliver on small business lending as it was supposed to and so it is clear that more still needs to be done to open up competition and alternative sources of finance. We hope that credit easing will help to reduce the price of loans for small firms, especially as they are paying around 1.5 per cent more than bigger businesses."
Gordon Banks, MP, asks the Secretary of State for Business, Innovation and Skills, if he will establish a small business administration.
18th April
Mr Prisk: The Government are aware of the Federation of Small Businesses' recent calls for the creation of a small business administration (SBA) to represent the interests of small businesses.
We believe all Government Departments should understand and support small and medium-sized enterprises (SMEs) and as Minister for Business and Enterprise, I and officials in the Department for Business, Innovation and Skills' Enterprise Directorate are responsible for promoting small businesses in Whitehall. In addition, the Prime Minister has appointed Lord Young of Graffham to advise him on enterprise issues.
There are three main areas covered by the SBA in the US, namely: government-backed loans to strengthen access to capital for small businesses, the provision of business support and leading federal government's efforts to ensure that 23% of federal contracts go to small businesses. In the UK, we are already active in these areas. We have announced credit easing which will see £20 billion of Government guarantees utilised to increase the supply of affordable credit through the new National Loan Guarantee Scheme and we have extended the Enterprise Finance Guarantee (EFG) scheme until 2014/15, providing, subject to demand, over £2 billion of additional lending to viable SMEs. We have transformed the way we enable businesses to access the information, advice and guidance they need to start and grow their business including:
which includes a new Growth and Improvement Service, offering a range of business tools and an updated events management system; and My New Business, a comprehensive tailored start-up service providing online tools and training for those looking to start a business.
A Business Link helpline (0845 600 9006) which will support people who are unable to access the internet or have difficulty in doing so.
(launched July 2011), provides a single point of access for those seeking mentoring and those seeking to be mentors across the UK. The site connects small businesses with mentoring organisations that can support and guide their development.
And like the United States, we have an aspiration that by May 2015, 25% of the value of government contracts, both directly and via the supply chain, should be awarded to SMEs by removing the barriers faced by small businesses and eliminating complexities and waste in the process.
In addition, the Government have taken action to reduce the burden of regulation on the smallest businesses at both a domestic and a European level, for example through the microbusiness regulatory moratorium announced in the Plan for Growth.
ENDS
Noted entrepreneur urges government to help small business by cutting red tape: James Caan urges regulation reform Wednesday, 11 April 2012 14:39
Government must stop piling unnecessary and often silly rules and regulations on top of small businesses if the economy is to grow, said noted businessman and entrepreneur James Caan.
"It's not the government's role to create jobs, that's the role of small business and entrepreneurs. Government needs to get out of the way and let us do what we do best," Caan said.
Caan, considered one of the UK's most successful entrepreneurs, cited examples such as requiring a £35 poisons license to sell toilet descaler or ant killer and requiring a booze license to sell chocolate liqueurs but then prohibiting them next to lingerie.
Opening a new warehouse in Britain takes up to 18 months versus only four in Germany, he added.
The Labour Party's numerous employment laws directed at small and medium-sized businesses are strangling economic growth, Caan said.
He cited a survey of business managers who said eliminating just one of 10 of these onerous rules were repealed, businesses would save so much money they could create up to 250,000 new jobs.
"Given the current economic climate, the recession and the job losses around us all, I believe now is a great time to start a business. Small businesses are the lifeblood of our economy, and the government is creating a number of initiatives and making more allowances for SMEs to stimulate an environment of entrepreneurship," Caan said in a recent interview.
Caan, CEO of venture capital and investment firm Hamilton Bradshaw, said proposed EU regulations, to which ministers had agreed, included handing equal holiday and sick pay rights to agency workers at an estimated cost of £1.5 billion.
Caan cited Institute of Directors head Simon Walker, who said more red tape makes growing the economy more difficult.
Caan also cited a study by the FSB and ESBA that concluded EU regulations cost businesses 123.8 billion euros a year, 3.5 percent of the EU's annual GDP.
The declaration was tabled by a cross party group of MEPs. It calls upon EU institutions to halt the introduction of unnecessary and excessive regulations and rules which, far from increasing EU's economic competitiveness, serve as a barrier to growth and employment.
Caan said Prime Minister David Cameron's announced plans to "kill off the health and safety culture for good" by abolishing or consolidating up to half of existing regulations was "a good start," if the prime minister does indeed follow through on his statements.
Caan supports the Federation of Small Businesses and the European Small Business Alliance's recently tabled declaration in the European Parliament urging a halt to excessive rules and regulations affecting small firms.
"Chancellor Osborne has declared that red tape reform has saved businesses £3.3 billion but think about that. That means those rules and regulations, prior to their repeal, were costing businesses £3.3 billion. I could put a lot of people to work with £3.3 billion," said Caan, CEO of the venture capital and investment firm Hamilton Bradshaw.
Caan also noted a British Chambers of Commerce survey where 1,200 small and medium-sized businesses said they felt "choked" by government regulations.
He said the BCC has estimated allowing employees to request flexible working hours will cost businesses £4.8 million a year. The "working time directive," which gives employees extra time off if they become ill on holiday, could cost small businesses an estimated £102.9 million a year, Caan added.
Caan said experts have estimated EU regulations alone have drained £124 billion from the UK economy since 1998.
Caan's latest book, "Start Your Business In 7 Days" (www.penguin.co.uk/nf/Book/BookDisplay/0,,9780670920648.html) literally is flying off the shelves of UK bookstores following its March 1 release.
Caan said he took the time to write a book that takes people through the entrepreneur's journey and helps them understand the difference between a hobby, a lifestyle and a real business.
Reviewer John Vincent, co-founder of "Leon Management Today," said of the book, "Caan shows a real desire to help the reader. His insights have substance. I like the balance between theory, deep practicality and psychology."
On changes to business taxation
5th April 2012
John Walker, National Chairman, Federation of Small Businesses, said:
"We welcome this proactive approach to getting local authorities to promote small business rates relief and deferrals to local businesses especially as they are due to be hit with a five per cent increase. Councils have the power to offer targeted discounts to businesses that are in financial hardship and so we would encourage local authorities to use this power to help vital local firms."
Government press release at http://www.communities.gov.uk/news/corporate/2124539
New minimum 12 month duration for all apprenticeships
Sunday, 1 April 2012 19:04
Apprenticeships will last for a minimum of 12 months guaranteeing improvements in training and workplace learning, Skills Minister John Hayes announced today.
The new standards will come into force for all age groups from August 2012, subject to consultation with providers and employers, as a further measure to drive up quality.
For those aged 19 and over apprenticeships will last between one to four years unless prior learning or attainment has been recorded. Apprenticeships for 16-18 year olds will last a minimum of 12 months without exception.
Mr Hayes said:
"The momentum we have created by building the apprenticeship brand has brought about unprecedented success for the apprenticeship programme.
"The majority of apprenticeships are the gold standard in vocational training. They boost individuals' life chances and build the skills that drive growth.
"They also provide a great return on public money. This has been independently recognised with the National Audit Office finding that apprenticeships generating £18 for the economy for every £1 spent.
"But we must be relentless in our drive to ensure all apprenticeships are as good as the best, to identify and root out any instances of poor quality provision, and to raise the bar on standards.
"We are taking strong and decisive action to tackle short duration so all apprentices receive high quality training and workplace learning setting them on the road to a long, rewarding career."
David Way, Chief Executive of the National Apprenticeship Service (NAS), said:
"I am pleased that we have taken time to get the best possible way forward on apprenticeship duration so that we can ensure confidence in all apprenticeships. We listened very carefully to messages from colleges and training providers at the National Quality Conference last week.
"A clear expectation has been set that an apprenticeship involves a significant amount of new learning delivered over sufficient time to practice and master skills in employment. There is greater flexibility here than for younger apprentices because older apprentices typically have more skills they have acquired.
"We need to ensure that all apprenticeships are high quality. By ensuring they last between one and four years, we are not only giving employers what they say they want but also giving confidence back to everyone who has questioned the growth in shorter apprenticeships."
This announcement builds upon a series of major reforms announced in recent months to drive up quality and standards and ensure every apprenticeship meets the rigorous standards apprentices and employers expect.
These include:
• National Apprenticeship Service (NAS) and the Skills Funding Agency's comprehensive review of all short duration programmes has already resulted in significant improvements to many apprenticeships and the withdrawal of inadequate sub-contracted provision
• New safeguards are being put in place to strengthen monitoring, reporting and subcontracting arrangements, including requiring subcontractors to be regulated through the Register of Training Organisations in the same way as prime contractors
• New contracts will ensure that training providers not only act according to regulations, but also within the spirit of the apprenticeship programme
• A new ‘enquiry panel' has been established, reporting directly to the Minister, to manage poor quality providers as soon as they are reported.
Also today a new grant to encourage small and medium sized businesses to take on apprentices will be made available.
The NAS is offering up to 40,000 Apprenticeship Grants to small and medium sized businesses (employing less than 250 employees), to the value of £1,500, that recruit their first apprentice aged 16 to 24 years old.
ENDS