£1 Trillion Government Export Target Won’t Be Reached

£1 Trillion Government Export Target Won’t Be Reached

The government’s target of having an export industry worth £1 trillion by 2020 looks unlikely to be reached, as 96% of all non-exporting businesses have no plan to sell overseas in 2017 – according to research by ICAEW. Despite an extensive advertising campaign, it’s revealed that just 53% of all UK small businesses currently export, the same number recorded in 2014 – with just 1% of enterprises exporting for the first time this year. Just 25% of businesses that sell abroad are planning to enter new markets in the next 12 months, down from 33% two years ago. When quizzed about why they decided not to take the jump into the world market, 41% of small businesses have replied that they had a sufficient customer base in the UK The US and Europe are the main destinations of selling for 30... »

Businesses Fear Effect of Public Sector Cuts on Turnover

Research by ICAEW has revealed that nearly half of businesses (45%) anticipate the public sector cuts will have a negative effect on their turnover in the next twelve months. Of those that directly supply the public sector, this rises to 68% of firms. Many will be looking at a variety of measures to help counteract the negative impact of cuts on their business. Michael Izza, ICAEW chief executive, said: “There has been an expectation that business will be able to ‘pick up the pieces’. This includes hiring those who have been made redundant in the public sector as well as providing the impetus to ensure that the UK economy returns to growth. What we are seeing is in fact companies being impacted by the cuts as well as all the other pressure points that currently exist.” The priv... »

Exporting Overseas Key for SME Growth

Small and Medium businesses (SMEs) should consider expanding overseas to bolster growth. Recent research by ICAEW (Institute of Chartered Accountants in England and Wales) concludes that 70% of UK businesses are looking overseas to further their recovery and that the downturn has increased the pace of globalisation in advanced and emerging economies. With spending cuts and slow growth in the UK have cutting domestic demand, access to new markets is cited as the primary benefit to expanding abroad. Small businesses however need to consider a number of factors before they start the globalisation process. Clive Lewis, ICAEW’s Head of Enterprise, Clive Lewis, said: “The UK is an almost saturated marketplace. Economic growth will be delivered by SMEs and those that look beyond these shore... »

Small Businesses Divided on How to Deal with VAT Increase

Businesses are split about how they will deal with the increase in VAT due to come into effect on 4th January 2011. 6 in 10 businesses believe that the increase in VAT from 17.5% to 20% will affect their organisation’s cashflow to some extent. Nearly one tenth (9%) think cash flow will be affected to a significant degree. The Institute of Chartered Accounts in England and Wales (ICAEW) is urging companies to start preparing for the VAT rise before the Christmas rush. Businesses affected by the VAT increase are divided in their approach as to how to deal with it – over a third are likely to absorb the costs within the business (36%), under a third expect to increase their prices (30%) and the remaining third (34%) plan to do both (absorb some costs and increase some prices). Furthermore, th... »

ICAEW Priorities for Economic Recovery Budget

The ICAEW has today urged the Chancellor to ensure his next week’s Budget is focussed on building a stronger recovery. The call comes as recent exports and inflation data has contributed to fears of a double dip recession and as economic growth remains fragile. The ICAEW has said that the Chancellor should: Make no major tax changes for businesses The Budget should not add to the regulatory burden for companies. The change in the VAT rate in the 2008 Pre-Budget Report caused implementation headaches for many small businesses at a time when they least needed it. The changes then had to be reverted a year later. The ICAEW wants no further complexity to be made to the tax system, when it is already over complicated. Timelines confirmed for government schemes to help businesses plan As c... »