With The 2011 Budget Fast Approaching Uk Business Calls For A " business Budget"
The retail industry has been hit hard over the last few years and many companies have struggled to survive. Recent Government policy decisions have hit the retail industry hard, and now the British Retail Consortium (BRC) has urged the Chancellor, George Osborne, to introduce measures to support the struggling British economy in this month's budget.
One such new Government measure, which is claimed to be helping bring our economy back to a state of recovery, is the increase in VAT to 20% as of April, which is costing British firms an additional £12 billion a year. Towards the end of 2010, the minimum wage was also increased, meaning firms had to cough up an additional 2.2% increase on staff who were earning the minimum wage. Further increases have been discussed by the Government on National Insurance rates, and rates for businesses. To top it all off, the Monetary Policy Committee have confirmed that interest rate increases are inevitable towards the end of 2011.
A rise in interest rates will mean that businesses will have to pay more in commercial loan and commercial mortgage repayments. Manufacturing firms have also called for assistance from Osborne in the next budget by boosting interest and investment in their sector.
Rises in taxes (including the bank levy and VAT) and austerity spending cuts have already been introduced by the Government to try and cut Britain's record budget deficit. These have already had a harsh impact on many businesses.
The British Retail Consortium recently commented that additional costs incurred by businesses in the private sector would have a knock on effect by making it difficult for businesses to continue staffing levels and employ more people. This in itself would prevent an economic recovery.
The Chancellor has been issued with a plan from the British Retail Consortium to request that more help is offered to the retail and private sectors as a whole, including more notice before minimum wage increases and a suspension of the new fuel duty which is planned to come into effect in the new tax year.
New impositions can only hinder retail's ability to invest. That is the view of Stephen Robertson, the director-general of the BRC. Mr Robertson told the Guardian newspaper: "While it may be true that 'the broadest shoulders should bear the biggest burden', the retail sector, which operates on slim margins, is already seeing its load increase sharply."
The EEF, the UK's major manufacturing lobby group, has joined the BRC in calling for Government help. They are looking for a reform of the taxation system in order to help the manufacturing sector and have asked the Chancellor to produce a clear strategy as to how the UK's economy will recover. Furthermore, the EEF are concerned about the lack of commercial mortgage finance available to small businesses and want the banking system overhauled to deal with this problem.
Since the market crash, small business have suffered especially, since it has become more difficult and nigh on impossible for some to obtain corporate finance including commercial mortgages, and those who can obtain a mortgage simply struggle to afford repayments, as their company's growth suffers instead.
The outlook for retailers and manufacturers without these changes is bleak. More retailers are likely to go bust in the coming months unless the acute pressures upon them are limited. Without access to short term capital, the lifeblood of industry, more manufacturers are likely to fold, particularly as they are hit with rising costs and higher taxes.
One such new Government measure, which is claimed to be helping bring our economy back to a state of recovery, is the increase in VAT to 20% as of April, which is costing British firms an additional £12 billion a year. Towards the end of 2010, the minimum wage was also increased, meaning firms had to cough up an additional 2.2% increase on staff who were earning the minimum wage. Further increases have been discussed by the Government on National Insurance rates, and rates for businesses. To top it all off, the Monetary Policy Committee have confirmed that interest rate increases are inevitable towards the end of 2011.
A rise in interest rates will mean that businesses will have to pay more in commercial loan and commercial mortgage repayments. Manufacturing firms have also called for assistance from Osborne in the next budget by boosting interest and investment in their sector.
Rises in taxes (including the bank levy and VAT) and austerity spending cuts have already been introduced by the Government to try and cut Britain's record budget deficit. These have already had a harsh impact on many businesses.
The British Retail Consortium recently commented that additional costs incurred by businesses in the private sector would have a knock on effect by making it difficult for businesses to continue staffing levels and employ more people. This in itself would prevent an economic recovery.
The Chancellor has been issued with a plan from the British Retail Consortium to request that more help is offered to the retail and private sectors as a whole, including more notice before minimum wage increases and a suspension of the new fuel duty which is planned to come into effect in the new tax year.
New impositions can only hinder retail's ability to invest. That is the view of Stephen Robertson, the director-general of the BRC. Mr Robertson told the Guardian newspaper: "While it may be true that 'the broadest shoulders should bear the biggest burden', the retail sector, which operates on slim margins, is already seeing its load increase sharply."
The EEF, the UK's major manufacturing lobby group, has joined the BRC in calling for Government help. They are looking for a reform of the taxation system in order to help the manufacturing sector and have asked the Chancellor to produce a clear strategy as to how the UK's economy will recover. Furthermore, the EEF are concerned about the lack of commercial mortgage finance available to small businesses and want the banking system overhauled to deal with this problem.
Since the market crash, small business have suffered especially, since it has become more difficult and nigh on impossible for some to obtain corporate finance including commercial mortgages, and those who can obtain a mortgage simply struggle to afford repayments, as their company's growth suffers instead.
The outlook for retailers and manufacturers without these changes is bleak. More retailers are likely to go bust in the coming months unless the acute pressures upon them are limited. Without access to short term capital, the lifeblood of industry, more manufacturers are likely to fold, particularly as they are hit with rising costs and higher taxes.
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