A very competitive rate

India’s largest bank recently launched an instant access account for companies offering a very competitive rate of 1.5%. This is the only savings account available to small businesses that allows withdrawals at any time, with no penalty fee attached. Companies do have to make a deposit a minimum of £10,000 up to a maximum of £25,000.

The interest earned is paid monthly, while account can be managed conveniently online, by post and in branch.

Rachel Thrussell, savings expert from Moneyfacts.co.uk, says State Bank of India’s new offering is a ‘welcome addition to the savings market’.

‘There is currently a lack of top-paying savings accounts for businesses and charities,’ she says.

‘Importantly for an instant access account, this allows customers to withdraw their money at any time without any waiting periods or penalties – and will be a useful tool for any small business or charity in this tough economic environment.’

SMEs have been struggling in the consequences of the recession and the financial crisis that began back in 2008.

The pain of the spending cuts

There is now a prevalent fear that the public spending cuts will further injure their businesses as George Osborne’s continues to make cuts to valuable contracts and business opportunities.

Anil Arora, of State Bank of India, is in the belief that the new business savings account can help close a gap for struggling firms.

‘We created this account due to the number of enquiries we were receiving from SMEs and charities searching for a business savings account that really gives them instant access.

‘These groups are the backbone of the UK economy and we are pleased to offer a savings product which reflects their business needs. Given economic pressures and the constant need for ready cash, we believe these groups should have access to their money at any time, but should not have to compromise on their interest rate as a result.’

Legislative changes

The forthcoming ‘Localism Bill’ will stop the current requirement for ratepayers to complete an application form initially in order to claim small business rate relief (SMRR). This will leaves local councils free to administer SMRR in the best way they possibly can.

“We have already doubled the rate discount small businesses get, but we want to see as many small business ratepayers as possible to claim their tax cuts so we will change the rules so councils can administer the scheme without being caught up in unnecessary Government red tape,” said Mr Pickles.

“We shall also let councils set discounts locally and we are considering proposals to let them keep what they collect. This will give councils a genuine financial stake in their local economy and let them target their support at local shops, pubs, post offices and start-up enterprises.”

The Federation of Small Businesses has welcomed the government’s recent pledge to help make small business rate relief automatic.

“After rent and wages, rates are the biggest cost to many businesses and steps to help small firms automatically get the relief they are entitled to is welcome news. We have long been calling for small business rate relief to be made automatic and this cash injection will be of great help to many small businesses,” said FSB national chairman John Walker.

“The onus is now on councils to be creative and not needlessly make small businesses go through an application process when it is obvious they are eligible.

“We have developed excellent relations with councils across the country through our small business engagement accord and we will be urging them to use their new powers to ensure that all small businesses receive the relief that they are entitled to.”

The Treasury is hoping that they will be able to regain billions of pounds in undeclared money directly from British citizens.

Tax haven countries

The discussions have started taking place with Switzerland about implementing a new tax on deposits, to which Liechtenstein has agreed to help British officials.

The other three new tax havens involved in the talks have not been identified, it has been disclosed.

It has been reported by the Financial Times that Jersey, Guernsey and the Isle of Man have all already denied that the UK Treasury had approached them.

Switzerland, who are already world famous for special banking secrecy laws, is expected to institute a tax on new deposits by citizens from the UK.

A deal was signed in August 2009 between HM Customs and Excise and Liechtenstein which was aimed at targeting £3bn in offshore accounts belonging to 5,000 UK taxpayers.

The government claim that it hopes £10bn could be collected from these three tax havens specifically and Liechtenstein and Switzerland over the next five years.

Chancellor George Osborne commented that: “We are all in this together, and that includes those who try and evade tax. We are in the process of striking a deal with Switzerland and more deals will follow.

“In total, this will raise many billions of pounds which the previous government failed to do. This is tough but fair.”

The process of building trust online is a lengthy and ongoing process. Here are ten top tips to help you increase your chances of becoming an online authority.

1. Never spam potential customers

This is first and foremost, not to mention potentially the most important rule of online engagement. Spamming will quickly ruin your reputation online and stop your positive work in its tracks. Sending spam should be avoided at all costs. Social media users are incredibly savvy and can spot spam with no trouble. Rather than using channels like Twitter to just advertise your company’s products, make sure that you contribute to relevant discussions. Readers will soon discover what you have to offer.

2. Honesty is the best policy

A little self-promotion never hurts; however, the online community is very perceptive to dishonesty. Never lie about your credentials – you will be discovered. Never undersell yourself, though, don’t be shy about your achievements. Awards, professional qualifications or trade body memberships all help to increase your authority.

3. View your direct competitors as participants in the same game

When working online, it helps to begin viewing your competitors as participants in the same game. It is more than likely that you’ll both learn something from each other, so always consider engaging with these organisations. Exchanging information and entering into discussion you can help you build potentially useful relationships, plus increase awareness within your industry.

4. Never avoid criticism

When your company becomes more visible online, you will inevitably open yourself up to criticism as well as praise. No one is ever able to get everything right 100% of the time. So, ensure that you remain open and receptive to criticism. Building authority online is almost as much about learning as it is teaching, so think of criticism as constructive and a chance to improve your skills.

5. Always read everything…

If you are to become the expert in your field, you need to make you have your finger on the pulse of new information coming to light in your industry. You should read and absorb everything that is written about your industry, and be ready to comment when asked about new developments.

6. …however, don’t ever be a know-it-all

You must realize that you may not be able to be an expert on everything. There may well be someone who knows more than you do. Instead of disregarding them, engage with them. Their knowledge could be of great values to you.

7. Communicate offline, too

Online authority works best when it spreads into the offline world, too. When thinking about online, it’s easy to forget the importance of offline networking as well, but you should attempt to make use of opportunities like trade fairs and informal face to face meetings to assist in building contacts. Actually meeting people you engage with online can be a huge benefit. Internet users often have more trust in a ‘real person’ than they do in a Twitter avatar or a blogger.

8. Be available to the press

Position yourself with the press as a spokesman for your industry. The press often requires quotes from trusted or respected professionals, and by making yourself available to them, you can help to build your personal brand.

9. Generosity is key

It’s all about giving, whether it is giving information or providing advice. Share your knowledge, by publishing online and through social media. The more approachable you appear, the more you are likely it is that you will be trusted.

10. Be unique

Always bear in mind that there is no point in reposting existing information or retweeting other people’s ideas. Creation of your own, unique content is key. Develop your own voice, which will help to differentiate you, always while ensuring that you sound professional and trustworthy to your followers.

Online authority can be elusive. Keep in mind that you have to take time to develop relationships and cultivate readers if you truly desire to succeed. DO not be a follower, stay individual, and your online stock will soon increase.

Which? Magazine ran a recent study which found that customers that are online savers on average earned 37% more interest than those customers who only had branch-based accounts.

The study also found that travel insurance was up to 355% more expensive to buy in person compared to purchasing online.

The British Bankers’ Association commented that banks reserved the right to offer the best deals where they where able to.

Which? Found that, on average, branch-based instant access accounts paid 0.65% a year on average compared to 1.14%, which web savers received.

Customers could receive a one-year fixed-rate bond at an average of 2.58% when purchasing over the internet, but just 2.34% when they purchase the same in a branch.

Interest rates for online purchased Isas averaged 1.84%, which fell to 1.53% for branch purchased products.

Government figures are suggesting that there are up to four million people who are “digitally excluded”, which means that they do not have, or cannot afford, full access to the internet.

Which? chief executive Peter Vicary-Smith offered banks this advice: “Not everyone is comfortable or able to manage their finances online and these people are missing out on the best deals as a result.

“Banks should be more inclusive by offering terminals in branches where customers could access online deals, with some help from staff.”

Colleen Smith of eFIG (the European Federation of Interior Landscape Groups) explains:

‘I was taking part in a forum discussion today around the best excuses given by employees for being off sick, when it struck me that it is not the excuses we need to consider, but the reasons behind them that really matter. What is it that drives an employee to take a day off, knowing full well they don’t need one?’

Smith had a few different things spring to mind:

- Lack of job satisfaction. A cause of this could be that the employee does not feel that they are included in projects, or needed. They feel that their presence of absence at work doesn’t matter.

- Not feeling valued. This feeling could cause an employee to question why they are at there in the first place. Employers must ensure that they show that each employee is a key member of the team.

- Minor illnesses. The common cold may not be completely debilitating, or cause an employee to be unable to attend work, but it could be enough of an excuse if they are already negatively towards their job.

As employers, designers, facilities managers and so on, what steps can we take to ensure absenteeism is reduced, not to mention that money lost through staff illness is saved in the future?

Recent research has proven that the addition of just one plant to a workspace can have a tangible effect on the people in that office, and adding more than one can have a dramatic impact for the following reasons:

1. Plants actually assist in the removal of toxins called VOCs from the environment and use them as food for themselves. This causes the plant to create more oxygen and therefore clean the surrounding air. This clean air helps to reduce the symptoms of minor illness such as coughs, colds and sick building syndrome (SBS).

2. Cleaner air equals more productive and healthy employees. When this is the situation in a company, employers get better return on their money paid as wages, while employees feel a sense of fulfillment in their jobs and that creates higher levels of job satisfaction.

3. The addition of plants helps to create an environment of value for employees. If it is displayed that an employer has taken the time and resource to add plants to an office, it makes the employees feel happier, less stressed and more appreciated.

Overall, the cost of bringing plants in to you office is far less than the potential savings from illness and absenteeism, making plants an incredibly worthwhile investment for every business, no matter the size.

This information has come to light despite the government and business leaders stepping up requests for banks to relax restrictions on borrowing to business.

The survey’s results found that the few companies reporting easier access to finance were medium to large businesses, with the cost of new credit slightly increased. However, small companies are still struggling to get new loans.

These findings were confirmed by the Bank of England in its monthly ‘Trends in Lending’ report for September. The report stated that lending to businesses by all banks based in the UK and building societies had fallen by £2.5bn during July.

“Net lending flows to UK businesses have remained subdued since the end of 2008,” the Bank said.

“Contacts of the Bank’s network of agents noted that while credit conditions were easing for larger businesses, they remained tight for smaller firms,” it added.

The EEF’s findings come as the deadline closes for submissions to the government about the Access to Finance Green Paper. The paper will examine bank lending conditions and companies’ access to credit.

Over the past two months, the overall cost of credit for manufacturers remained almost unchanged, the EEF survey of 323 companies suggested.

During this period, 31% of companies reported an increase in the overall cost of credit compared with 34% that the previous survey found. However, the cost of new borrowing rose for 37% of companies, up from 32% previously.

Lee Hopley, the EEF’s chief economist, commented: “Despite the pick-up in the economy, too few companies are seeing a significant improvement in lending conditions.

“This was never likely to be a swift or easy process, but we are concerned that the rise in the cost of new borrowing may be signaling that the supply of finance is not able to keep up the upturn in manufacturing activity,” she said.

The growth rate of the UK’s Gross Domestic Product  dramatically rose from 0.3% in the first quarter of this year to 1.2% in the second quarter.

These numbers were more than twice the increase which was predicted by the Commission’s analysts in the spring of last year, and today a Commission report predicted that the “extraordinary boost… will not be repeated in the third quarter”.

However, the Commission upped its previous forecast of the scale of GDP growth in Britain for the entirety of the year from 1.2% to 1.7%.

The report stated that the announced increase in the UK VAT rate, which is set to occur in January, should encourage higher levels of private consumption in the fourth quarter of 2010. This will create another acceleration in growth for the fourth quarter of the year.

Conversely, the increased VAT rate will also slow economic activity in the first quarter of 2011.

However, the current increased revision in the UK economic forecasts, and more positive forecasts for the other major EU economies of France, Germany, the Netherlands, Spain, Italy and Poland, upped the Commission’s overall assessment of EU growth prospects to what the report named a “sizeable increase” of 1.8% for 2010.

The report also cautioned: “The recovery remains fragile however, with uncertainty high and developments across member states uneven.”

EU Economic and Monetary Affairs Commissioner Olli Rehn commented: “The European economy is clearly on a path of recovery, more strongly than forecast in the spring, and the rebound of domestic demand bodes well for the job market.

“However, uncertainties remain and safeguarding financial stability and continuing fiscal consolidation remain key priorities.”

The Commission says that, in the wake of the global economic downturn, “a double-dip seems unlikely.”

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Approximately six million people are believed to have paid the wrong amount of tax from their incomes. This situation has been entirely blamed on internal errors that occurred at the HM Revenue and Customs.

About 1.5 million people will be faced with new tax bills over the next few days. The average bill will be around £1,500, which s very high for the average household in the UK.

People who have inadvertently underpaid their bills will have their tax codes adjusted for the next year in order that the money can be recouped over time.

On average, a person whose bill was underpaid will therefore see more than £100 removed from their pay packets at the end of each month during the next year.

As a result, companies are highly likely to face queries from their employees over this discrepancy in their pay, and it is widely believed that many employees will presume that their reduced pay cheques are entirely the fault of their employers.

As this is not an ideal situation, employers are being encouraged to suggest that workers take up queries with HM Revenue and Customs so that the situation can be discussed more thoroughly on a case-by-case basis. An appeals process has been put in place for those who believe they have been unfairly treated, a situation that is highly likely to occur across the UK.

About 45,000 notification letters to taxpayers will be sent out this week to alert them of an error in their accounts. Among the letters, approximately 15,000 will be to inform the recipient of an underpayment of tax.

The UK’s largest recruitment company, Hays, stated that companies are now filling positions which had been recently left vacant by employees who have left their roles, but they are failing to create new positions within their companies for new hires.

Luckily this does mark an improvement when compared with this time last year when, according to Hays chief executive Alistair Cox, “nine times out of ten” vacancies created through ‘employee churn’ were then left consistently unfilled by companies.

There are still continuing fears over the state of the job market in the UK, this feeling strongly reflects the general concern about the economy in the UK in general. Even though economic growth was far quicker than what was initially expected in the second quarter of the year, many analysts are still concerned about the possibility of a complete, and stable recovery.

It is presumed that unemployment will continue to rise sharply in the forthcoming year; this is because public sector redundancies have not yet begun in earnest. Sadly, it is highly unlikely that the public sector will be able to absorb all employees who find themselves jobless in the wake of the redundancies.

Alistair Cox commented on the Today programme: “At the moment most of the demand for jobs is simply organisations replacing employees who’ve left. So it’s really about job churn at the moment.”

It has been speculated by commentators that the SME sector will be the ones to drive a recovery in the jobs market. However, true expansion still appears to be some way off.

Image Credit : nkzs