Year: 2008

More small firms are planning to take an extended Christmas break than at any time in 16 years, the Federation of Small Businesses (FSB) has said.

From a survey of its members, the FSB estimates that 10% or 500,000 are planning to close for two weeks over the festive period.

The FSB says the main motivation for the move is to save money.

FSB official Stephen Alambritis said the firms were following the decisions of carmakers such as Land Rover.

‘Reduced bills’

"By closing down for the full two weeks, small firms are looking to save a bit of cash though reduced electricity and fuel bills," he said.

Representatives from the UK’s banks and business groups met government officials yesterday to discuss the impact of the economic downturn on small businesses. At the meeting of the Small Business Finance Forum, the Forum of Private Business (FPB) presented the latest findings of its economic downturn panel of member-firms, whose owners are being surveyed every fortnight to present a true picture of market conditions and lending restrictions for small firms.

HSBC has announced a new £1bn loan fund for its small business customers as recession leaves firms struggling to meet day-to-day running costs.

Many of its rivals are constraining lending while they nurse their balance sheets back to health, and HSBC hopes to seize the opportunity to find profitable business in the midst of the downturn.

The Government has reaffirmed its commitment to developing the nation’s skills with the launch of an innovative new trial to develop Apprenticeship Expansion Programmes aimed at increasing current apprenticeship numbers to fill existing skills gaps. The trials, delivered through the Learning and Skills Council (LSC) will provide participating employers with access to funds of more than £10 million over the next three years, in a bid to increase the number of available Apprenticeship vacancies.

Small business owners are wary of the Chancellor’s efforts to help them, believing the longer-term costs of Alistair Darling’s Pre Budget Report outweigh the supposed benefits. A resounding majority reject the government’s assistance because of fears that the Chancellor’s generosity will come back to bite them.

An online research programme by Trends Research for us at Business Matters magazine immediately after the Pre Budget Report gathered the opinions of 816 leaders of small and medium sized businesses to a package of measures designed to help them survive the recession.

Lord Mandelson says he is concerned about the "alarming" treatment of small businesses by some bank managers.

The business secretary welcomed Royal Bank of Scotland’s announcement that it would freeze overdraft charges for small firms until the end of next year.

But he said there was concern some banks were summarily changing the terms of loans to small firms.