Posted on: 01 Apr, 16
A lack of leadership and management skills may be inhibiting the growth of businesses.
Just under half of new start-ups in the UK last less than 3 years. The UK also has a growing productivity gap, currently 18% below the G7 average.
A report by the Federation of Small Businesses looked at the level of management training that businesses are currently exposed to.
The report found that of the surveyed businesses:
The report indicates that there are 2 main barriers to increasing training. 43% of respondents cited cost as a deterrent, while 34% reported availability of training as the main issue.
Effective management is a skill that must be developed over time. Here are the key areas that often differentiate the good from the bad:
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More than 150,000 people have bought a home using the Help to Buy Scheme since its launch in 2013.
The mortgage guarantee scheme, which allows lenders to buya guarantee on mortgage loans, has proved popular with first-time buyers. The Treasury reports that 79% of mortgage completions through the mortgage guarantee scheme were people buying their first home.
Help to Buy ISAs have also provided a boost to those hoping to get on the property ladder. Chancellor George Osborne said that the scheme has already helped 250,000 first-time buyers save for their first property since it was launched in December 2015.
Help to Buy ISAs allow prospective first-time buyers to save up to £200 per month. A lump sum of £1,000 can be deposited in the first month of setting up an account.
If you have savings between £1,600 and £12,000, the government will provide a 25% bonus (up to £3,000) if you use the funds towards a mortgage deposit. You must be 16 or over and planning to purchase a home to apply for the scheme.
From April 2017, you can transfer your savings from a Help to Buy ISA into a lifetime ISA.
Contact us to talk about your personal finances.
Employers must now pay workers over the age of 25 at least £7.20 an hour.
The national living wage (NLW) replaces the current national minimum wage (NMW) of £6.70 an hour for people who are 25 or over.
This is not a simple increase of the adult rate of NMW as individuals between 21 and 24 won't be affected by the change. All other NMW wage rates and bands remain the same until October 2016.
|Age||Hourly rate until October 2016||Hourly rate from October 2016|
|25 and over||£7.20||£7.20|
|21 -24 year old rate||£6.70||£6.95|
|18 – 20 year old rate||£5.30||£5.55|
|16 – 17 year old rate||£3.87||£4.00|
*For apprentices aged 16 – 18 or those 19 or over in their first year.
NMW calculations don't just involve an hourly rate. Employers will also have to include:
Employers are responsible for identifying eligible workers and paying the NLW and face penalties if they fail to comply.
HMRC charges 200% of arrears for failing to pay the NLW or the NMW up to a maximum of £20,000 per worker. Penalties are halved if the employer pays within 14 days.
Contact us to discuss the NLW.
Chancellor George Osborne delivered his Budget 2016 on 16 March 2016 and outlined several changesnational insurance, corporation tax and stamp duty.
Some of the headline measures relating to businesses announced in the Budget include:
Carolyn Fairbairn, director general of the Confederation of British Industry, said:
“After a year of surprises, this was a stable Budget for business facing global stormy waters. The chancellor has listened to our concerns about the mounting burden on firms and chosen to back business to grow the economy out of the deficit.”
Talk to us today about Budget 2016.
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