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Good News for DIY Research from Verdict Consulting has shown that although customer loyalty across all retail sectors is at an all time low, DIY has seen the smallest decrease in the last 10 years. Loyalty to retailers has been affected by the credit crunch, as customers shop around for better deals. Do Businesses get a Fair Deal on Energy? The British Chambers of Commerce has warned that businesses are not benefiting from the same service that energy companies offer to domestic users. Energywatch is the consumer watchdog for energy, and the BCC are calling for a similar body to be set up to look after the needs of businesses. Examples of where businesses currently suffer are long term contracts, no restrictions on back-billing and no cooling off period on verbal contracts. Criminal Records Bureau (CRB) Check It’s natural that employers will want to confirm the integrity of a new member of staff, but it has emerged that some employers are making illegal CRB checks (meaning applying for CRB checks where they are not justified) and using confidential information about spent convictions to discriminate against workers. This information is only needed in a minority of cases, such as for work with children, and the system should not be exploited. Factsheets – Are you Up To Date? The Information Office has factsheets on a wide range of topics designed to make your life easier. New factsheets are regularly being added as new legislation comes into force, and updates to existing factsheets are frequent. For a full list of factsheets available, call the Information Office. WEEE – One Year On, How Are We Doing? The WEEE Regulations came into effect on the 1st July 2007, obliging retailers to offer in-store takeback of old electric and electronic items on the sale of new goods, or to join the DTS Scheme and exempt themselves from collecting WEEE. The UK has now exceeded its target of recycling 4kg per head of the population as required by Europe, although it’s clear confusion is still widespread. Contact the Information Office if you have any questions. One for BAGMA – HSE Warnings As the harvest season approaches, the Health and Safety Executive has warned that the period from August to October is typically the most likely to include fatal accidents. Simple safety checks on machinery can reduce the risk of an accident occurring. This advice can also apply to those outside the agricultural industry who work with machinery. Recession “months away” The British Chambers of Commerce (BCC) has warned that the UK could face recession in the next six to nine months. UK growth is expected to be negative or zero and unemployment is set to increase. However, the BCC state that interest rate cuts could prevent a major recession. Costs Drop for UK Manufacturers A surprise drop in costs was reported by UK manufacturers in July. Decreases in the price of oil are a key factor in the reduction in costs. Some commentators have forecast that oil will be at $60 a barrel next year. Industry Value Year on Year In summer 2006, the total market value for DIY stood at £2.085bn. Summer 2007 saw this drop to £2.063bn, when heavy rain and flooding were major factors. Equality Bill – New Proposals The Government has announced proposals under the Equality Bill. A more detailed paper will be published soon, but in the meantime, it’s clear that equality is something the Government is keen to focus on. Age discrimination, positive discrimination and encouraging greater openness by reporting on equality at work are all featured. Redundancy may not be the Best Option When looking at reducing costs, there are options other than redundancy. Overtime freezes, varying shift patterns, sabbaticals and withdrawing discretionary bonuses may be worth considering. Lay offs and shortterm working are more drastic measures (ask for factsheet 57) as are payment holidays. Remember to consider the possible impact of each of these options on morale, which can affect productivity. Firms Face Fees for Legal Migrant Workers This is not about fines for employing illegal workers – it’s about new charges for businesses using skilled workers from outside the EU. Starting later this year, such businesses will need a licence (costing from £300) and will have to sponsor each worker’s arrival (costing from£170). The rules are designed to ensure that only workers needed by the UK will be allowed in. Sickness Absence - What you can do In 2007, absence from work cost the UK economy £13.2 billion, according to the CBI / AXA absence survey. Short term absence accounts for 80% of all absences. Unless contracts or absence policies have specific provisions, employers don’t have to pay salaries during sick leave, although SSP can usually be claimed for up to 28 weeks. Batteries Directive The EU Batteries Directive comes into force on the 26th
September and will affect everyone involved with
batteries, from manufacturers to retailers to consumers.
Batteries will be required to be collected for recycling,
which is where retailers will be affected, although no Trading Standards Undercover for Underage Sales Trading Standards are carrying out test purchases of knives and have recently highlighted cases of retailers selling to underage volunteers. With knife crime still high on the agenda following tragic stabbings, remember that it’s illegal to sell to under 18s. Factsheet 70 has more information and a refusals register for your use. Pound falls against the Dollar For 11 consecutive days, the pound has fallen against the dollar, representing the longest running set of losses in 37 years. This could help exporters, whose goods may now be cheaper overseas, but will adversely affect holidaymakers previously used to a strong pound. UK Inflation at 4.4% in July July saw the UK’s annual rate of inflation increase to 4.4%, which is well over the government’s target of 2%. Increasing food and fuel prices continue to push up inflation, which the International Monetary Fund predicts could reach 5% in the near future. Moves to Reduce Red Tape Government proposals to cut red tape would mean that any new regulations would have to be costed and offset by getting rid of older, obsolete measures. If approved, the proposed Regulatory Budgets will hopefully be in place by April 2009, and should help to reduce the estimated £13.4bn companies spend annually to comply with regulations. Conservatives Focus on Small Businesses The Conservative Parliamentary enterprise
Group has published its report on small shops in the
high street – A Strategy for Successful Community
Hubs. It recognises the vital role played by SMEs in the
UK, and sets out options for how to help small shops to
thrive in the high street. London Mayor Pledges to Help Small Shops Boris Johnson has outlined plans to support small shops in the capital, as promised in his election campaign. Planning for a Better London sets out proposed changes whereby developers of major new retail schemes will have to provide an agreed number of small, affordable shop units. Mr Johnson stated that small businesses add real character and diversity to London’s high streets, and pledged to help stop them from being squeezed out. BHF Group Head Office Go Green & Cut Costs Since introducing paper recycling at the Head Office in Birmingham, the BHF Group has halved the cost of its regular waste collection, proving that taking measures to be more environmentally aware needn’t end up costing you more money! Small Business Act - “Think Small First” The European Small Business Act has been published
in draft, promising to Think Small First. It aims to
refocus attention on SMEs, promote entrepreneurship
and make legislation SME-friendly. A “European SME
Week” in May 2009 will highlight the important role Internet Selling to be Fair across Europe New legislation is expected to be proposed by autumn
2008, simplifying rules for business to consumer
contracts when carrying out online selling. It’s thought
that the rules would mean more consistent provisions
applying in all EU countries, covering issues like product Personal Insolvency Figures Down The number of individual insolvencies reported in the three months to June 2008 was 8.3% down on the same period last year. It’s thought that the credit crunch has made people more wary of entering debt, and even where loans of overdrafts are sought, many banks are less willing to offer credit. Optimistic Entrepreneurs A recent international survey has shown that over 50% of small business owners do not intend to change their expansion plans, in the face of the credit crunch. Research by Hiscox found 34% of British business owners set up to make more money than they could working for someone else, and 21% are inspired to bring their ideas to life. New Tax Penalty System for April 2009 From April 2009, submitting an incorrect tax return could cost you in more ways than one, with penalty fines, interest and additional tax payable when the mistake is corrected. Both careless and deliberate errors resulting in less tax being stated will incur penalties. Advising HMRC of inaccuracies before they are picked up can mean reduced fines. Are You Keeping Staff Sickness Records? Almost a quarter of businesses do not place importance on keeping records of staff sickness, according to a recent survey. Despite many businesses believing that their staff take do nongenuine sick leave, many do not make it a priority to look at sickness trends or records. The impact sickness has on a business can be severe, and it’s good practice to monitor such absences. Environment a Concern for Fleet Managers A recent survey has found that the top three priorities for fleet managers are a duty of care, reducing fleet costs and environmental protection. 85% of those surveyed stated that they were keen to reduce the environmental impact of their fleet. Maternity Rights – October 2008 From the 5th October 2008, staff due to give birth on or after this date will benefit from the same conditions during Additional Maternity Leave as during their Ordinary Maternity Leave. This includes contractual annual leave, sick pay and continued use of a company car where applicable. Members with staff about to go on maternity leave should take note. London Living Wage now £7.45 The London Living Wage is the minimum hourly rate a person in London needs to earn to achieve an acceptable standard of living, according to the Greater London Authority. Earnings below the London Living Wage are deemed to place that person at or below the poverty line. Boris Johnson has urged firms in the capital to pay workers a higher wage, which is considerably higher than the National Minimum Wage, and would be hard for many small businesses. UK Prosecutions for Non-UK Drivers New road safety proposals could mean non-UK drivers
would face the same punishments as UK drivers for
breaking rules on drivers’ hours or driving a defective
vehicle. The Police and Vehicle Operator and Services
Agency (VOSA) would have the power to immobilise
vehicles. On the spot fines could also be issued as they MPs’ Warning on Energy Bills MPS have warned that massive increases in
energy bills could mean serious problems
for millions of households. Needless to say,
the effect on many businesses will be
severe. MPs also warned that 1000s of jobs
in manufacturing could be at risk, as the UK
becomes unable to compete with
cheaper energy prices in the rest of Sales Drop for Woolworths Woolworths have experienced a 6.7% drop in sales in June and July. In particular, sales of its outdoor products, including garden furniture, had fallen. After a review of its business, will now be focussing on its small and medium sized branches. Smoking in Van = Smoking at Work A £30 fine has been issued to a painter and decorator, for smoking in his own van, when on a
personal errand. Officials claimed that the van was
the individual’s place of work, and as such is covered
under the smoking regulations. This goes to show how
the definition of “work vehicle” can be used, and Company Car Mileage Down Company car users are clocking up fewer miles. It’s thought that increasing fuel costs and better communications technology are the main reasons for the decline. Concerns about climate change could also be a factor as managers aim to cut business miles for environmental reasons. Road Rage and Your Company Image The RAC’s 20th annual report on Motoring calls for better training to ensure responsible and respectful driving. Over a third of business car drivers surveyed had been a victim of physically threatening driving behaviour, although over half admitted to shouting, swearing and making rude gestures at other drivers themselves! Make sure your company image is not threatened by the actions of your drivers. Regulatory Enforcement and Sanctions Bill The Regulatory Enforcement and Sanctions Bill has received Royal Ascent. BERR hope that the Bill will mean better regulation for UK businesses. It creates the Local Better Regulation Office, which will advise central Government on how local authorities regulate. It will also ensure that unnecessary burdens are not imposed by regulators. Visit www.lbro.org.uk Underage Knife Sales In the five years up to 2006, 71 people were
convicted of selling knives to under-age people. Until
October 2007 the legal age to buy a knife was 16. It is Red Diesel – New Restrictions It is now illegal to use red diesel on public highways in tractors carrying out recreational or amenity grounds work. A fine of £250 can be imposed if these rules are broken. With fuel prices rising, red diesel use is tightly restricted and monitored. A farmer using red diesel in his vehicle on the road when returning from mowing a rugby pitch was recently fined. To find out more, contact HM Revenue and Customs on 0845 010 9000. Retail Sales in Record Fall Sales dropped by 3.9% between May and June this year, representing the biggest fall since records began in 1986. It’s thought the sunny weather contributed to the increase the previous month, making the drop more severe. The latest bssa report, supported by BHF Group shows sales in DIY and Hardware down by only 1.1%. Price rises from EDF Energy Domestic customers of EDF Energy can
expect to see gas prices rise by 22% and
electricity prices by 17%. Record
wholesale energy costs have been Knife Crime Knife crime is unfortunately still making headlines after everal fatal stabbings in the UK last week. Retailers must be vigilant with regard to underage sales. It is illegal to sell a knife to anyone under the age of 18. Trading Standards officers are carrying out test purchases of knives in many areas. Ask for factsheet 70 on Underage Sales, and be sure to fill out the attached refusals register each time a sale is denied. Maternity Leave a Risk to Careers? Maternity laws, which currently entitle women to a year off work for each child, may be unintentionally harming women’s careers. These concerns have been raised by the Equalities and Human Rights Commission, who fear that employers may hesitate to offer jobs or promotions to women of child-bearing age. Consumer Protection Regulations (CPRs) Factsheet 23 has information on the new CPRs, which represent on of the biggest changes to consumer legislation in 40 years. The CPRs deal with unfair sales practices which were not previously illegal. 31 practices are now outlawed. For example, falsely claiming you’re about to cease trading or move premises is now illegal. Make sure you have the factsheet for the full list. Approved Mileage Allowance Payments The Government has refused to increase approved mileage allowance payments (AMAPs) which are used by many employers to reimburse staff using their own cars for business travel. AMAPs have remained unchanged for six years, and given the rising costs of fuel, many are concerned that the current rates are no longer adequate. Risk Assessments Have you got a copy of factsheet 91 on Risk Assessments? Combined with our sample Risk Assessment for a Retailer (developed by the BRC), it’s an excellent starting point to carrying out a risk assessment. If you’re confused about what you need to do, these documents are likely to be a great help. Call the Information Office today. London Low Emission Zone - Update From the 7th July 2008, more vehicles are affected by the Low Emission Zone in London. Mainly, it’s older diesel-powered lorries, vans and coaches which are affected. If you are unsure as to your vehicle’s compliance, visit www.tfl.gov.uk/ and follow the link to the Low Emissions Zone pages. Inflation up to 3.8% in June Inflation in the UK was up to 3.8% in June, compared with 3.3% in May, according to the Office for National Statistics. Rising food and fuel costs have been contributory factors. The Bank of England expects price growth to continue, with inflation possibly touching 4% before December. Fuel Costs June saw record rises in the price of petrol and diesel. The highest prices were found London and the South East. The UK has the tenth highest price for unleaded petrol in Europe and the second highest price for diesel. Increased Road Tax for Many It’s estimated that a reform of the road tax system will result in 9.4 million motorists having to pay more. The government claims that the changes are designed to cut carbon emissions. The new rules will come into force in 2010-2011, with the Exchequer collecting over£1 billion in additional revenue from the scheme. Work-Related Deaths 2007-2008 The HSE has released provisional figures showing 228 work-related deaths in Great Britain in 2007-2008. This is 19 fewer deaths than figures for the previous year. Firms are obliged to report health and safety incidents at work under the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995 (RIDDOR). Traffic Congestion – Problem for Businesses A survey of over 300 businesses has shown that traffic congestion has a significant effect on economic performance. At a time when businesses are feeling the pressure anyway, traffic congestion reduces the effectiveness of staff, with up to 20% of business journeys being spend in traffic jams. Data Security – Are Your Staff a Threat? As more and more stories about breaches of data security hit the headlines, IT experts at Deloitte have warned that the greatest threat to data security for many SMEs is a company’s own employees. Many businesses are failing to take basic precautions, using removable storage devices such as USB sticks and CDs (which can easily be lost) to transport data. Exchange Rate and Retailers The value of the pound against the euro has fallen significantly since January when many retailers will have placed orders, so invoices for autumn product ranges could contain unpleasant surprises. Many independent retailers don’t pre-buy currency, as is the practice with large multiples, and with volatile exchange rates, this could cause problems. Mayor Says No to £25 Congestion Charge The London Mayor Boris Johnson has pledged not to implement the £25 congestion charge as planned by his predecessor, Ken Livingstone. Mr Johnson said that an increase to £25 would have hit families and small businesses the hardest, and is in favour of a “fairer and more effective” congestion charge. Recession Risk According to a survey of almost 5,000
small, medium and large businesses, the UK
faces a serious recession risk. The survey
was carried out by the British Chamber of
Commerce, and it found that the credit
crunch has affected sales and orders in the
services sector. It also found that many Interest Rates Held at 5% The Bank of England has held interest rates at 5% despite calls from business groups to cut borrowing costs, as concerns about the economic slowdown persist. Inflation is currently at 3.3%. The target rate is 2.4%. First Minimum Wage Prosecution... A butcher’s shop has become the first UK employer to be prosecuted for failing to pay staff the national minimum wage. Compensation totalling more than£11,000 must now be paid to two former employees. This serves as a warning, and hopefully a deterrent, to other rogue employers. The current NMW rates are£5.52 for workers aged 22 and over, £4.60 for 18 – 21 year olds and £3.40 for 16 and 17 year olds. SSP for Short Contract Agency Workers From the 27th October 2008, all agency workers will be eligible for Statutory Sick Pay whether they are directly or indirectly employed, and regardless of their length of contract. Agency workers will still have to meet other qualifying criteria, such as being an employee for National Insurance purposes, and be absent for three days or more. Energy Performance Certificates The latest phase of the roll-out for EPC requirement came into force on the 1st July. Certificates are now required for the construction, sale or rent of buildings (not dwellings) with over 2,500m2 floor space. It’s hoped that EPCs will encourage developers to construct buildings with better energy performance. Once obtained, EPCs are valid for 10 years. ...and More Prosecutions - Illegal Workers Employers can be fined up to £10,000 per worker if caught employing someone who is not entitled to work in the UK. Knowingly employing such a person is punishable by an unlimited fine and up to two years in prison. Prosecutions under these new regulations have soared. Always ask to see a new worker’s passport, and call the UK Border Agency helpline if in doubt about a worker’s eligibility: 0845 010 6677. Most Requests for Flexible Working Denied 69% of employers refuse (or only occasionally accept) employee requests to work from home, according to the quarterly UK Labour Market Outlook survey. This is despite research showing that home workers can be more productive. As the cost of commuting continues to rise, more requests could be expected. Deaths of Young People at Work An MP is calling for health and safety to be made part of the National Curriculum in order to prevent further loss of young lives at work. In the last 10 years, 64 people under 19 have been killed in the workplace, and 15,000 have been seriously injured. Young people’s physical or sychological capacity should be considered when identifying risks at work. UK Consumer Spending Down Research by Ernst & Young suggests the average household in the UK is 15% worse off than it was five years ago, due mainly to increases in the cost of living. Rate rises and fuel bills could mean further reductions in disposable income. Other findings showed that average monthly energy bills are up 110% since 2003/04. Food price inflation is another concern. NMW Increases – 1st October 2008 On the 1st October 2008, the National Minimum Wage will increase as follows:·
Customer detail Disclosures Companies give out a fifth of credit card information to third parties in a bid to boost sales. Customers’ political affiliations and religious beliefs could also be given out according to an Internet security firm. 60% In a survey of marketing and data protection executives at 900 firms, 60% said they had had a data breach in which customer information was lost nearly 90% of which the customers had not been told. Smoking Ban Anniversary Approaches The 1st July this year will be the first anniversary of the smoking ban in England, and the Chartered Institute of Environmental Health has said it’s pleased with compliance levels. Between July 2007 and April 2008, 8,170 written warnings were issued for failure to display the correct no smoking signage, and 2,052 were issued for failure to prevent smoking. Factsheet 87 has more information. Rising Cost of Home Improvements According to figures from the Royal Institute of Chartered Surveyors, the costs of carrying out home improvements has risen by 20% over the last two years. The BCIS Guide gives regional information on probable costs of over 1,300 types of work. Visit www.bcis.co.uk for more details. Fire Safety Regulations Many businesses
think that because they had a fire safety certificate when they were a
legal requirement, their business is still compliant with the April 2009 Company Car Tax Company cars emitting more than 160g/km of CO2 will be more expensive to lease from April 2009. The treasury has confirmed to the BVRLA that cars already leased will not be affected for at least three years. Future driver Benefits-in-Kind payments and company tax 2009/10 will be adversely affected unless employees have cars between 110g/km and 160g/km. The Information Office has more details. CCTV Tackling Illegal Waste A CCTV system is being started in Somerset to combat traders who are frequent tippers and try to avoid disposal charges by taking their waste to sites intended for householders. The system logs cars and vans entering amenities recording their registration numbers. These results will then be compared to identify patterns from all the counties disposal sites. Subletting of Fraudulent Cars Small and medium sized firms are targets for criminals obtaining credit for new vehicles and obtaining cars through fraudulent contract hire deals. Finance providers have a long winding trail to follow their cars through several hire and lease providers until the end user is found. For more information contact the Information Office Stealing Fuel With the price of fuel increasing so much, the Information Office has received several recent calls regarding employees stealing fuel. It would be wise to keep a watchful eye on any employees dealing with the delivery of fuel or buying fuel for company vehicles. Risk Assessment Awareness Campaign A campaign to raise the awareness of the need for workplace risk assessments began on 24th June - and will run for two years. Risk assessments are a very powerful tool for identifying potential hazards, and should involve the whole workforce. The Information Office has a factsheet on risk assessments, and a template for retailers. Make sure you’ve done yours. Illegal Immigrants Under new rules, the Home Office will be publishing names of companies and directors on the UK Border Agency website who employ illegal immigrants. There have been 137 prosecutions since May, leading to fines totalling £500,000. Areas including agriculture, construction and hospitality that have a high demand for labour could be better targeted with 7,500 immigration officers re-organised with police and customs officials Higher Interest Rate fear May has seen a record rise in retail spending, increasing fears of higher interest rates. Signs are of weak consumer confidence and a slowing economy. The governor of the Bank o England has said the UK is facing its most difficult economic challenge for two decades. Workers asking for Training Time? A new law which could be in place by 2010 would allow an extra 300,000 people a year to receive extra training. Workers in England would have the right to request time off for training which is relevant to their job. Currently, up to one third of employers do not train their staff, and it’s hoped the new rule would bring about a change in culture. Are your Drivers Well Trained? The RAC estimates that over 40,000 fleet breakdowns could be avoided if company car drivers received better education and training about basic vehicle maintenance, and detailed briefings on the vehicles they drive. For example, putting petrol into diesel cars can cost up to £6,000 to repair, and using several electronic gadgets in the vehicle can run batteries down. “HSE gone mad” is just perception It’s commonplace at the moment to hear of “over the top” health and safety requirements, but a recent HSE study looking at whether activities are being unnecessarily banned on such grounds have found that it’s only a perception that things have gone too far. The HSE has stressed that risk assessment should be about proportionality and common sense. Watching Sport at Work If your staff watch sport online without the correct tv licence, you could be fined £1,000. Businesses can be held liable if someone is caught watching tv on unlicensed premises, even if they were unaware it was happening. With Euro 2008, Wimbledon and the Olympics all on over summer, make sure you have a licence if staff are watching, or if you’re not allowing sport, make sure your staff know! Consumer inflation could top 4% The Bank of England has warned that rising food and energy prices could push UK consumer inflation over 4%. The Consumer Prices Index rose 3.3% in May, up from 3% in April, which is the fastest increase since the CPI measure began in 1997. Violence Statistics The British Crime Survey 2006-2007 shows there were around 397,000 threats of violence and 288,000 physical assaults on workers by members of the public in that period. Four fatal injuries were reported, along with 932 major injuries. Only 33% of victims reported incidents of violence or abuse, with some feeling the matter to be too trivial, some dealing with it themselves, and others fearing management would not be able to help. Call for delay in Flexible Working Changes Manufacturer’s organisation EEF has called for a delay in the proposed changes to the rules on flexible working, which are currently scheduled to come into force next April. Currently, parents of children under 6 and carers can apply to work flexibly. The new rules will see this right extended to parents of under 16s. Employers have an obligation to consider all requests from eligible staff. Right to Work Overtime Retained On the 10th June, ministers in Europe agreed to keep the right for UK workers to choose to work longer than 48 hours a week. Business Secretary John Hutton said that the move was “hugely valuable to the British economy” meaning that “people remain free to earn overtime and businesses can cope during busy times”. Congestion Charge for Manchester? It’s expected that a congestion charge will be introduced in Greater Manchester in 2013, after a £2.8 billion package was agreed. The money will pay for major improvements to public transport, and a congestions charge for entering or exiting Manchester at peak times will be implemented. Local businesses are concerned about the knock on effect on staff and customers Anticipated Problems with EPCs Energy Performance Certificates have been a requirement on large commercial buildings since April this year. On the 1st July, this will be extended to buildings of more than 2,500m2 and to all remaining commercial buildings on the 1st October. A lack of trained assessors, who issue the certificates, could mean delays and confusion ahead, experts are warning. Drugs at Work? It’s estimated that at least 10% of people in the UK have taken drugs in the last year, so it’s possible that members of your staff could be among this 10%. The main implications for the employer are health and safety issues, and the possibility of prosecution for permitting illegal drugs on your premises. Building the right to carry out random testing into contracts can provide a deterrent. High Street Suffers but not Online Sales Although the economy and retail sales show signs of slowing, online retailing is booming, with 32% growth expected for 2008. This highlights the importance of an online presence for many retailers. Those with no plans to get online can take heart, however, as Verdict Research note that shopping for many is a leisure activity and the high street still has a vital role. Knife Crime – Retailers be Aware Knife crime continues to dominate the headlines, with Gordon Brown criticising a culture which makes it fashionable to carry a knife. Retailers have a responsibility to make sure they’re not selling knives to under 18s, and should keep records of sales refusals. Ask for factsheet 70, which outlines products not to be sold to under-age customers, and has a refusals register template too. Supermarkets Blamed for Shop Closure Supermarkets are
again on the agenda, and the news is once again not good.
Britain’s oldest china merchant has closed after 174 years of
trading, blaming an inability to compete against large out-of-town
stores. Watsons of Salisbury cited the big discounts and free parking
offered Packaging Regulations – New Factsheet In response to several queries from BHF Group members, we’ve produced a factsheet on the Producer Responsibility (Packaging) Regulations. It’s factsheet number 95, and provides a summary of the obligations for those businesses affected. If you handle over 50 tonnes of packaging a year, and your turnover is £2 million, you need to comply, so make sure you know what to do. More Cash, Less Cards? A survey from the British Retail Consortium has shown that cash has had a resurgence in popularity as a form of payment this year, with it now being used for 60% of all transactions, up from 54% last year. However, it only accounts for 34% in terms of value, suggesting that cards are still used for larger purchases. On average, a retailer is charged 2p for a cash transaction, 34p for a credit card and 8p for a debit card. Consumer Protection De-mystified In light of the concern generated at the speedy introduction of new regulations on Consumer Protection, the Information Office now have a factsheet summarising the changes retailers should be aware of. The good news is that honest traders should have no reason to worry. Ask for factsheet 23 to make sure you’re up to date. Batteries – Tough Targets to Meet Last week’s Info Update reminded retailers that they will soon be obliged to recycle their batteries and not dispose of them in landfill. However, it has emerged that there are considerable challenges ahead. Currently, the UK recycles only 3% of batteries, and the target for 2012 is 25%. Failure to comply would mean EU fines for the government, so retailers can expect pressure to meet targets. Skills Agency Scrapped The Learning and Skills Council is to be closed down, with responsibility for commissioning courses and training for older teenagers passing to Local Authorities. It’s hoped that more local accountability will mean a better service in providing a range of training options such as A-levels, GCSEs, Diplomas and Apprenticeships. Consumer Protection Regulations in Force New Consumer Protection Regulations came into force on the 26th May, meaning that for the first time, there is now a duty on all UK businesses not to trade unfairly. The National Consumer Council has welcomed the new rules, which mark the biggest shake-up in consumer law for 40 years. The Trading Standard Institute will be responsible for policing the new regulations, and have said that the more serious cases were likely to be dealt with under criminal law. The Information Office has more details. HSE aims to Cut Administrative Burden Current Health and Safety Regulations require an employer to display certain HSE posters or leaflets. At present, these must contain written contact details for the local office of the Employment Medical Advisory Service, and must be constantly updated. Proposed amendments to the current rules would remove this obligation, saving employers’ valuable time. Do you Charge Interest on Late Payments? A study by BACS has shown that only 15% of SMEs charge late payers interest, despite the fact that businesses have been allowed to do so for ten years. It’s felt that many do not impose the penalty out of fear of losing custom from bigger clients. Small firms are owed a total of £18.6billion in overdue invoices. Batteries Directive – Are You Ready? From the 26th September, a new directive will require businesses to dispose of batteries separately from their general waste. Due to the hazardous material in them, disposal of batteries in landfill will be prohibited. Batteries should be put in a separate box to be collected by a waste contractor or waste management company. The directive also applies to households, which could have a knock on effect on businesses, although there are currently no plans for take-back obligations. Work Vehicle Maintenance Following a
recent case where a company director accepted responsibility for the
death of a worker in a car crash, an expert has warned that employers
are almost entirely responsible for maintenance of vehicles used for
work purposes. Companies can now be charged with Underage Sales – Test Purchases A Local Authority
has carried out test purchases as an experiment to see how many
retailers sold age-restricted items to underage people. Three retailers
illegally sold spray paint, which should not be sold to under 16s.
Factsheet 70 has more information, including a template Fuel Prices a Burden Rising fuel costs continue to impact directly or indirectly on almost all businesses in the UK, the Scottish Chamber of Commerce has said. The Scottish National Party wants an application to be made to Europe to cut fuel duty in rural areas and to see a fuel price regulator introduced. Faster Bank Transfers A scheme for same-day cash transfers over the telephone or the internet has started. Last year alone, banks made an estimated £30million on delayed transfers, where money would leave one account and not arrive in another for up to four days. People can visit www.canipayfaster.co.uk to check if their payee’s bank is set up to receive faster payments. New Consumer Protection Regulations (CPR) These new regulations come into force on the 26th May and implement the Unfair Commercial Practices Directive (UCPD). They prohibit unfair commercial practices, which would be likely to affect the economic behaviour of the average consumer. Several selling practices are banned outright, including falsely stating that an item is available for a limited time only. Commercial Practices include giving information about prices, and to this end, the Pricing Practices Guide has been published. Ask the Information Office for more details if required. Equal Rights for Agency Staff The estimated 1.4 million agency workers in the UK will now be entitled to the same rights as permanent staff after 12 weeks’ employment. Employers’ groups had lobbied for a longer qualifying period, with concerns that firms could end up taking on fewer employees or even letting staff go. Ministers argue that the new proposals mean flexibility for employers and fairness for workers. Employing Illegal Workers It is a criminal offence to employ someone who is not permitted to work in the UK, and since the 29th February, those employing illegal workers have been liable to fines of up to £10,000 per worker. It’s important to check passports and immigration documents before employing new staff. Check all new applicants to avoid the risk of discrimination. Changes to Maternity Rights Women whose expected week of childbirth is on or after the 5th October 2008 are entitled to the same non-pay benefits whether they’re on Ordinary Maternity Leave or Additional Maternity Leave. Well documented business processes should make it easier for other staff to cover during maternity leave, and once the leave is over, flexible return-to-work schemes should help to attract the employee back and make the transition as smooth as possible. Shortfalls in Disaster Planning It would appear that UK companies are not properly prepared for a business disaster, with many relying on the dedication of their staff rather than a detailed and robust business continuity plan. 34% of respondents to a survey by BT Global Services did not know if their company had such a plan. Factsheet 18 can give you straightforward advice on how to formulate a plan. Is your Smoking Shelter a Fire Hazard? It may seem obvious, but smoking shelters, which are often constructed using canvas awnings or umbrellas, are the site of many fires. Discarded cigarettes and patio heaters are the main sources of ignition. Make sure that a suitable risk assessment is carried out for any shelter you have. Factsheets 7 and 63 can help. Factsheet 87 has information on smoking legislation. Interest Rates – 8-1 voted in favour It has been revealed that when the Bank of England’s Monetary Policy Committee voted to keep interest rates on hold at 5%, the vote was 8-1 in favour of maintaining the rate. Pressure remains on the MPC to cut rates to 4.75%, amid signs of weakness in the manufacturing and service sector. However, the Bank has announced that further cuts are unlikely until the end of the year, and that inflation is expected to rise. Diesel Prices at record high Diesel prices have risen by the highest month-on-month increase this century, to 124.17p per litre. The average price of petrol has also increased significantly. Businesses are hit twice, with increasing costs for themselves, and reduced spending as consumers become more careful given their own situation. Flexible Working The right to request flexible working has been extended to parents of children under the age of 16. Until now, only parents with children who were under the age of 6 or disabled were able to apply. 91% of employers who received a request for flexible working approved it last year. Flexible working can include flexi-time, working from home, compressed hours or part-time work. Research suggests that most employers have positive views on work-life balance issues, but not all employers can be expected to agree. National Staff Dismissal Register Employers can now enter details of dishonest employees on a national database, to warn future employees about potential problem workers. The database details theft of money or merchandise, forgery and damage to company property. There are worries that disgruntled employers may abuse the system with false accusations. Currently, it is not yet rolled out to very small businesses. Abolition of 10p Tax Rate will NOT impact on Minimum Wage The Personal Tax Allowance has been increased by £600, meaning that every basic rate taxpayer will pay £120 less tax this year. This is good news for employers who were worried that the National Minimum Wage would be increased to compensate low earners who lost out when the 10p tax rate was scrapped. Home Working Works Employers should note that research shows only a very small percentage of home workers skive. Employers should be careful to find a balance between heavy monitoring of home workers and not issuing enough guidance. When working from home, employees must be given clear definitions of their role and what their work will be. The research from Work Wise UK suggests that occasional working from home can produce better results that being in the office. Breach of Data Protection - Fines Organisations can now be fined if their operational procedures cause a gross breach of data protection. Initially, it was proposed to make intentional or reckless disclosure of personal details a criminal offence, but this has not happened amid fears it would criminalise smaller, mundane activities. Given the recent high profile losses of personal data, this new move is very timely. Rise in Issuing of Parking Fines At the beginning of April the law relating to parking tickets was changed, making it easier for tickets to be issued. CCTV can now be referred to for evidence, and traffic wardens no longer have to fix Penalty Charge Notices to a vehicle’s windscreen. Fleet managers are concerned that this may see a steep increase in the number of tickets issued. “Hope for Economy” – Gordon Brown PM Gordon Brown has blamed international factors for rising oil and food prices and has said he is the right man to steer the economy through difficult times. He has listed his priorities as oil prices, food prices, the housing market and “getting funds to business”. Identity Fraud 45% of UK consumers would be prepared to give up online banking and shopping in order to avoid becoming a victim of identity fraud. The same research identified significant differences in the levels of trust older and younger generations place in new and emerging businesses dealing with personal details online, with 18-24 year olds placing much more trust than 45-54 year olds. Health and Safety Fines to Increase? A report will be delivered to Parliament next month, proposing steep increases to potential fines for breaches of the Health and Safety at Work Act. It’s hoped that increased fines would act as a deterrent and send a strong message to rogue employers that such offences are treated very seriously. If approved, the maximum fine in magistrates’ courts would increase from £5,000 to £20,000 for most offences. Ask the Information Office for factsheets on Heath and Safety. Removal of Empty Property Tax Relief Businesses have reacted with anger to the recent removal of tax relief for empty properties, with some seeing the move as a means of raising funds, rather than a way to bring empty properties back into use more quickly. Since 1st April, empty industrial sites have no longer benefited from permanent exemption from business rates, and instead are allowed a six-month period with no rates payable, before becoming liable for the full amount. Problems with Staff Conduct? A recent study suggests that one in three employees have been to work with a hangover, and over one in 10 has admitted to being drunk at work. The effects on concentration and performance could mean bad news for your business. The BHF Group’s Platinum Pack is a human resources manual, with information on policies, procedures and contracts, which are invaluable in such situations. WEEE - Factsheet and Posters Enforcement agents are checking retailers for compliance with the Waste Electrical and Electronic Equipment Regulations. Both members and non-members of Valpak’s Distributor Take-Back Scheme could be visited, so make sure your business complies. The Information Office can provide you with a WEEE factsheet and wording for a poster to display in your premises. Both have been verified by the enforcement agency (the VCA) so you can feel fully prepared for a possible visit from them. Energy Performance Certificates – Key Dates Energy Performance Certificates (EPCs) give a rating of a building’s energy efficiency, like the energy labels used on white goods. They became compulsory on commercial buildings with a floor area of over 10,0000m2 on 1st April 2008. Properties with over 2,500m2 will need a certificate from 1st July 2008 and all others (apart from those with less than 50m2) by 1st October 2008. New Factsheets All of the
Information Office’s factsheets have been revised, redesigned
and reissued, making it even easier for you to find out vital
information. All factsheets are now also available electronically so,
should you choose, you can have all the information you need via email,
saving time and paper! To find out more, call or email the Information Interest Rates stay put at 5% The Bank of England’s Monetary Policy Committee has held UK interest rates at 5% although many expect the rate to be cut to 4.75% in June. Dealer Agreements (Agricultural Machinery) UK dealers are signing up to dealer contracts which do not give them much protection, meaning that they could potentially have agreements terminated with little or no notice, compensation or stock buy-back. BAGMA believe that contracts should include reasonable notice periods of 12-24 months for a phase-out period, and compensation levels which recognise the dealer’s input to training, specialised tools and equipment. Mobiles and Driving Offences The number of drivers caught using a mobile phone at the wheel has increased by nearly a third, according to Ministry of Justice figures. Of 12.7m driving offences dealt with by police or local authorities, the largest group was obstruction, waiting and parking. The offence of using a phone at the wheel contributed to the number of careless driving offences, which rose from 86,400 in 2003 to 233,600 in 2006. The Right Vehicle for the Job To choose the
correct CO2 rated vehicle for your business, visit the Vehicle
Certification Agency website: www.vcacarfueldata.org.uk which shows
running costs and CO2 emissions. The site includes searches by company
car tax percentage, VED band, fuel consumption and running costs. To
help select the right vehicle, the British Retail Consortium – Annual Conference The British Retail Consortium’s Annual Conference takes place this year on the 12th June. BHF Group Members can take advantage of discounted rates by quoting “Direct” when booking. Visit www.brcretailconference.co.uk for more information, or email Harriet Percival at events@brc.org.uk. Alternatively, call 020 7854 8382. Employee Consultation The Information and Consultation Regulations require managers to establish a respectful dialogue with their staff. Businesses that employ 50-100 people will have the right to be told about strategy and workplace developments. Employers should realise that this would make staff feel more valued and involved in the running of their firm, which could give them a competitive edge. Workplace Safety to be Taught in Schools? The British Safety Council has called for workplace safety to be taught in schools, after research showed that many young workers lacked basic training to keep them safe. At any time, 500,000 14-15 year olds in the UK could take part in work experience, and yet more are starting their first jobs, meaning hundreds of thousands of people are entering the workplace, with little idea about the related safety issues. Could the HSE Name and Shame More? The Centre for Corporate Accountability (CCA) has criticised the Health and Safety Executive for failing to publicise more of its convictions. The CCA claim that naming and shaming is a strong deterrent against others committing similar offences. Only half of the 84 convictions involving fatalities in 2007 were publicised. Rates Legislation New legislation which came out on the 1st April 2008 aims to encourage owners to bring vacant business premises back into use. Most non-industrial premises such as shops and offices that have been empty for three months or longer will have to pay 100% business tax. In addition, factories and warehouses will be subject to100% business rates if they’ve been empty for six months. Cars instead of cash With legislative
changes and the Corporate Manslaughter Act being introduced, employers
are again offering company cars instead of cash-for-car schemes.
ompanies Independent Safeguarding Authority Scheme The Independent Safeguarding Authority Scheme has come about following the Safeguarding Vulnerable Groups Act. It will affect companies who supervise under 16s. The government is finalising the scheme, which is expected to go live on the 12th October 2009. In conjunction with the BRC, BHF Group are lobbying to raise awareness of the problems that would arise for members employing under 16s. Registration would involve an administration burden and a fee of £64. More Cash, Less Cards? Another survey by the BRC has shown that increasing numbers of shoppers are using cash instead of credit cards. The survey of 17,000 shops found that cash accounted for 60% of transactions last year, up from 54% in 2006. The BRC noted that this trend could reflect reluctance on the part of the consumer to spend money they don’t have. Protection of Customer Data There have been 94 security breaches reported by the Information Commission last year. Of 1000 firms, 90% let staff leave with potentially confidential data stored on USB sticks. 80% of firms who reported stolen computers had not encrypted data on the hard drive. Companies are urged to make data protection a priority. Attacks on Shop Workers Increasing A survey by the British Retail Consortium has shown that assaults on shop workers are on the increase, with incidents of physical violence up 50% on last year. Reported threats of violence more than doubled in the same period, and the value of goods stolen from shops is currently at a 10 year high. The Information Office has factsheets on personal safety. Hopefully such situations won’t arise, but it’s best to be prepared. Vehicle Load Safety Every year there are 4000 successful prosecutions for unsafe vehicle loads. Police investigating crashes in 2006 recorded overloaded or poorly loaded vehicle trailers as a contributory factor in 15 fatal crashes and 360 involving injuries. A free booklet by the Fleet Safety Forum explaining the dangers of unsafe loads and the legal responsibilities of companies is available. E-mail your details to admin@brake.org.uk or call 01484 559 909. REACH The Registration, Evaluation and Authorisation of Chemicals Regulations aim to ensure protection for people and the environment from the use of chemicals. Manufacturers and importers dealing with 1 tonne or more of a chemical substance each year must register with the European Chemicals Agency so that data can be collected. Visit www.netregs.gov.uk to find out more. UK Economic Growth Eases As predicted, the UK economy grew 0.4% in the first quarter of 2008, compared to 0.6% in the last quarter of 2007. This represents the weakest quarter-on-quarter growth since the start of 2005. These latest statistics suggest a further interest rate cut may be forthcoming. Loss of 10p Tax = NMW Increases? It’s been announced that the Government may have to increase the national minimum wage in order to compensate those who will lose out following the abolition of the 10p tax rate. This could potentially mean getting rid of the lower rate for 18-21 year olds. Proposed Exemptions for Small Businesses DBERR is to propose that small businesses should be exempt from future EU business regulations. In a letter to the EU Enterprise Commissioner, DBERR will suggest a reduced regulatory burden on companies with less than 20 full-time employees. They’ll also suggest that if exemption from new regulation is not possible, specific approaches for small firms should be designed. BHF Group has made a similar proposal for the proposed Small Business Act, due to come into force in June. WEEE The Waste Electrical and Electronic Equipment Regulations place obligations on retailers to ensure that such products are responsibly recycled. Indications from the enforcement agency suggest that many retailers do not know what they need to be doing. Ask the Information Office for the WEEE factsheet to check you’re doing things correctly, and avoid a possible fine. BRC Climate
Change Conference There is still time to book your place at the BRC’s Climate Change Conference. It takes place on Wednesday 30th April, and will look at how retailers can review their corporate social responsibility strategies. Visit www.brc.org.uk/brceventdetails05.asp?id=470 to find out more or call Laura Gallop on 020 7854 8971. BHF Group Members can take advantage of the BRC Member rate. New Standard for Pet Shops The Pet Care Trust has unveiled The Pet Care Trust Standard for Pet Retailers which is the first in a series of sector standards to cover professional pet care services. It’s hoped that in time it will be accredited by the UK Accreditation Service. As consumers place trust in standards such as ISO 9001, it’s hoped a similar standard for the Pet Care industry will enable its consumers to have equal confidence. Congestion Charge could mean CO2 Increase Researchers have predicted that the recently proposed increases to the London congestion charge will mean an increase in CO2 emissions as people drive their cars further to avoid entering the congestion zone. The proposed increase would see high-emitting vehicles paying £25 per day to enter the zone. Currently, the amount payable is £8. British Safety Council Survey Results The British Safety Council has published its annual Health & Safety and Environment Perceptions survey. Worryingly, it found that 49% of employees claimed to have received little or no health & safety training. However, 72% of employers surveyed felt that a proactive approach to health and safety and the environment lead to better business performance. Latest Statistics UK consumer inflation remained at 2.5% in March, representing no change from February. The Consumer Prices Index was also unchanged at 2.5%. UK interest rates were cut 0.25% to 5% on the 10th April. Many predict that further cuts will take place before the end of 2008. On a more positive note, unemployment fell in March, to stand at 794,300. This is the lowest figure since June 1975. Sales Values Fall UK retail sales fell 1.6% in March compared with March 2007. The last decline was in July 2005, when cold weather affected sales. It should be noted, however, that the earlier Easter in 2008, unseasonal weather and variations in school holidays make comparisons difficult. Directors “unaware of compliance obligations” Research has shown that over half of business leaders are unaware of the compliance obligations of their business, and are risking heavy fines or even imprisonment. The Environment Agency, Office of Fair Trading and Pensions Regulator have jurisdiction over all companies in England. Make sure you know what your obligations are, and train your staff accordingly. Business Alarms The police have updated their policy on false alarms for systems featuring personal attack alarms. Recent concerns about accidental or deliberate misuse of panic buttons have meant most forces only allow two false alarms before withdrawing response services. Reinstating services has happened only once training and procedures were reviewed. However, since 1st April, reinstating police response after false alarms will be more involved, with either “call back” or installation of microphone or CCTV a requirement before services will be restored. Fake PPE It’s become apparent that substandard copies of Personal Protective Equipment (PPE) are being sold. These items don’t offer the necessary levels of protection that genuine PPE does, which will expose the user to potentially very serious risks. Make sure that any PPE you purchase bears CE Marks, and if in doubt, ask the manufacturer to check the test certificate andlabelling. More on Slips, Trips and Falls A company has been fined £5,000 after an employee fell 6 feet from a stepladder, sustaining back injuries resulting in 4 months off work. A proper risk assessment had not been carried out. The Information Office’s factheet 113 explains how to carry out a Risk Assessment. Visit www.hse.gov.uk/shatteredlives/index.htm to find out more about the HSE’s “Shattered Lives” campaign, which highlights the effects of such accidents. Unconcerned about Disaster? A survey by BT Business has found that one in three businesses surveyed believe that being out of action because of a disaster (such as fire or flood) would not cost them any money. One in ten thinks the cost would be £5,000. In reality, the cost is likely to be up to £17,000. Ask the Information Office for the Disaster Plan factsheet, which will help you to formulate a Disaster Plan to mitigate potential problems and help you to cope, should the unexpected happen. London Business Waste Management Consultation A draft business waste management strategy has been published for consultation, to encourage London’s businesses to recycle or compost 70% of waste by 2020. The draft strategy can be viewed at www.london.gov.uk/gla/publications/environment/bwmsdraft. pdf Please send comments to the Information Office. World Growth Forecast Slashed..... The International Monetary Fund (IMF) has predicted that the global economy will suffer due to the credit crunch. It predicts the US will lead the downturn, and go into “mild recession” in 2008. .... But Optimism for UK Economy The Chancellor
Alistair Darling maintains there are grounds for optimism on the
economic front, and that the UK had “proved Corporate Manslaughter On 6th April the Corporate Manslaughter and Corporate Homicide Act 2007 comes into force. Directors must be aware that, whilst individuals will not be liable under the new law, it’s highly likely that there will be implications for both companies and their directors under health and safety legislation. A prominent road safety campaigner has predicted that the first prosecution will involve a driver on company business. He believes that company drivers are often a weak part of health and safety plans. Energy Performance Certificates From the 6th April, large commercial properties and new homes will need to have an Energy Performance Certificate. By October 2008, this requirement will affect SMEs as well. Buildings are responsible for almost half of the UK’s energy consumption and CO2 emissions, and the Communities Minister has called on the business community to support the new rules. BRC Climate Change Conference The British Retail Consortium is holding a conference about Climate Change in the Retail Environment. It takes place on Wednesday 30th April, and will look at how retailers can review their corporate social responsibility strategies. Visit www.brc.org.uk/brceventdetails05.asp?id=470 to find out more or call Laura Gallop on 020 7854 8971. BHF Group Members can take advantage of the BRC Member rate. Floods pose higher risk than Fire The environment Agency is warning that small businesses are more at risk from flooding that from fire, amid concerns that climate change may increase the risk of extreme weather events and floods. Almost 7,000 businesses were affected by the floods of summer 2007, with the total damage estimated at around £1.3 billion. The Environment Agency has a flood plan template which should help in developing your own flood plan. Visit www.environment-agency.gov.uk to find out more. New Parking Rules New parking regulations came into force in England on the 31st March, including varying charges (higher fines for serious offences and lower fines for minor misdemeanours). CCTV footage will also be used to identify breaches of the regulations. Another change is that Councils will no longer be able to use parking fines as a way of generating revenue, and as such will not be able to issue targets to parking wardens. BRC Annual Conference 12th June 2008 This year the British Retail Consortium’s Annual Conference takes place on the 12th June, at the Millennium Gloucester Hotel, London. For more information, including details of speakers and online booking, visit www.brcretailconference.co.uk/ . Recession Risk ‘1 in 3’ Investment bank Lehman Brothers says that the risk of the UK going into a recession over the next two years is one in three. They state that interest rates must be cut to 4% or lower to boost the economy. They also claim that the credit crisis is now being felt beyond the financial world, as households find it harder to borrow money for a house or remortgage. Road Pricing National road pricing is still on the Government’s agenda. Alistair Darling announced in his first budget that the Government is committed to exploring the option, and also listed incentives to lure company car drivers into more environmentally friendly vehicles. Save Money by Saving Water With increasing fears about the state of the economy, Envirowise are urging businesses to look at water-saving options, as these are often the easiest and cheapest cost savings to make. Various water-saving techniques can be introduced in businesses, such as a variable flush mechanism on toilets, which could pay for themselves in less than a week. Annual savings of as much as £494 per employee could be made this way. To find out more, visit http://www.envirowise.gov.uk/water Employer Annual Return If you have 50 or more employees, you must complete an online Employer Annual Return for 2007/08. The deadline is the 19th May. If you have fewer than 50 employees, you’ll get £100 tax-free if you send your return in online. Visit www.hmrc.gov.uk/payeonline/ for more information about sending an online return. You’ll need to register in advance as it takes at least 7 days to get the activation PIN required for filing online. Information and Consultation – 6th April Also coming in on the 6th April is the extension to the Information and Consultation regulations. Instead of applying only to those companies with 100 or more members of staff, they will apply to those with 50 or more. Employees in such companies have the right to be informed and consulted on the company’s economic situation and decisions likely to affect the organisation. Private Vehicles used for Work A survey has found that two thirds of privately owned vehicles used for work purposes are not road-worthy. 4% of vehicles were un-taxed, 31% of drivers did not have insurance covering business use, and 12% didn’t have a valid driving licence! From the 6th April, the Corporate Manslaughter and Corporate Homicide Act will mean greater accountability for employers – including allowing them to drive unsafe vehicles. Make sure you have a driving policy in place. Are Age Discrimination Laws working? Since the Employment Equality (Age) Regulations 2006 came into force on the 1st October 2006, it has been illegal to discriminate against people at work because of their age. In a survey, 89% of respondents knew it was unlawful to discriminate on the grounds of age, but the Tribunals Service still receives around 200 claims each month. Ask for factsheet 107 if you’re unsure of your obligations. Annual Investment Allowance? www.hmrc.gov.uk/legislation/pu451.pdf has information about annual investment allowances for landlords and small-business owners. You may be eligible for tax relief on up to £50,000 a year for capital expenditure, including extensions and alterations. Visit the above website for more information. Business Start-ups at Record High In 2007, business start-ups were at their highest levels for 20 years. 471,500 new businesses started in 2007; up 3% on 2006, and up 17% on 1988, when Barclays records began. However, business closures were also up last year, showing an increase of 8% on 2006. Less than 10% of the businesses started in the first quarter of 1988 were sill trading at the end of 2007. From Sick Note to Well Note? A report proposing radical changes to work/health services has been published, outlining ways in which the Government, businesses and doctors can help more people with ill health return to work. One proposal is to replace the traditional sick note with a “well note” which would state which tasks a person could carry out at work, hopefully enabling them to return to their job much sooner than before. Retailers to have a say on transport planning The British Retail Consortium is developing a ‘Retail Toolkit’ for improving town centre accessibility. It will give instructions on how retailers can influence local decision makers and details of early warning systems for council proposals which may adversely affect local businesses. It’s hoped that the toolkit will be ready for distribution to small retailers across England and Wales within a few months. Music in Shops – we want to hear from you! In recent weeks the Information Office has had numerous requests for our factsheet on Music in Shops, which gives details of licence requirements if listening to music in public areas of your business. We now want to hear more from you... Have you had contact from either licensing body (PPL or PRS)? Do you know of any fines that have been issued? What have your experiences been? Take care when repairing storm damage Following the recent storms, the Health and Safety Executive has warned landowners and employers to be careful when clearing up any damage. Only trained and competent people should deal with fallen trees, for example, and those employing contractors should make sure they are competent before any work begins. Clearing up in bad weather will also require extra care. Burden of Regulation It’s nothing we haven’t heard before, but it’s still encouraging to know that regulation cost increases continue to make headlines. The British Chamber of Commerce have published the 2008 Burdens Barometer, showing the red tape burden to have risen to £5.4 billion in 10 years. To see a copy of the Burdens Barometer, visit www.britishchambers.org.uk/policy/pdf/Burdens_Barometer_2008.pdf Workplace Deaths cost just 1/700th of turnover The Centre for Corporate Accountability is calling for increased fines for workplace deaths, after their research showed the majority of large companies convicted over the death of a worker or member of the public are fined less than 1/700th of their annual turnover. They want fines to be set between 2.5% and 10% of turnover, and for the new corporate manslaughter offence, at 15% - 40%. Interest Rates Released minutes have shown that the Bank of England’s Monetary Policy Committee voted 7-2 to keep interest rates on hold at 5.25% in March. Recently, UK interest rates have been cut amid signs of a struggling global economy. The US Federal Reserve has cut rates to 2.25%, with six cuts since mid-September. What not to do... A survey by TNS has found that the biggest annoyance for shoppers is stock shortages, with 31% of those surveyed stating it to be a retail turn-off. Poor customer service came a close second with 27%. Over a fifth listed poor online or store layout as their biggest shopping frustration, with as many as 25% of men likely to leave a store if they couldn’t locate what they wanted. Budget Summary
Information and Consultation of Employees From 6 April, these regulations apply to organisations with 50 or more staff (previously, they only applied to those with 150 or more). The major requirement of the regulations is for businesses to consult with their workforce on certain subjects “with a view to reaching agreement”. Consultation can take many forms, such as a newsletter, team meetings or company-wide forum. Fire Risks A recent report by the Fire and Rescue Service shows that over 35% of fires at work start in stock rooms. Faulty electrical appliances and wiring are often to blame, and stock rooms contain high volumes of fuel for fire. Make sure your fire Risk Assessment covers the stock room, and ask the Information Office for factsheets on fire safety and how to reduce risks. WEEE – Many SMEs Unaware A recent survey by NetRegs has found that only 12% of SMEs could name the WEEE Regulations unprompted, and just 36% had heard of them once they were named. SMEs generate 60% of commercial waste in England and Wales so those selling electrical equipment need to understand what WEEE means for them. Ask the Information Office for factsheet 110. Changes to Immigration System New licences for businesses that want to employ migrants and big on-the-spot fines for those not obeying the rules and found hiring illegal workers have now been implemented, as part of the largest alteration of the immigration system in 45 years. It will include the introduction of a new points system to ensure only the best can work in Britain. Decrease in Car Traffic Provisional figures from the Department for Transport show that car traffic across the country decreased by 1% in 2007, although light van traffic was up by 9% and hgv traffic up by 1%. HGV Operating Costs Recent data from the Freight Transport Association shows that hgv operating costs rose on average 8.4% in the 12 months to January 2008. Diesel prices were the main reason, but other factors were insurance premiums, maintenance costs and overheads. Minimum wage to rise The minimum wage will increase in October 2008 to the following rates:
Corporate Killing On 6th April the Corporate Manslaughter and Corporate Homicide Act comes into force. Companies can be more easily prosecuted and liable to unlimited fines, remedial orders and publicity orders if the way in which its activities are organised or managed causes a fatality and amounts to a gross breach of a duty of care. This does not impose any new obligations or duties but gives the opportunity to review processes and ensure systems are adequate. Redundancy Pay The Trades Union Congress wants to see an increase to the weekly limit on statutory redundancy pay, from £330 to £500, in the forthcoming Budget. Currently, anyone who has worked for more than two years for the same employer is entitled to redundancy pay, which is calculated as half a week’s pay for each year of employment. It’s currently limited to £330 per week, representing approximately 73% of average pay. Empty Premises From 1st April 2008 business rates relief for empty shops and offices will be limited to three months, and six months for factories. After this the full amount will have to be paid. At present, rates on empty properties are 50% following an initial three-month exemption. Retail Development Bill A bill to support struggling ‘class one’ shop premises which might otherwise close has been introduced in the House of Lords. Authorities would have to advise on different forms of ownership available to existing or new shops. Financial support would be available where three or more individuals form a cooperation or partnership in order to run a small retail premises. Business Improvement Districts (BIDs) BIDS hand back an element of control to businesses, enabling positive changes for the benefit of all businesses in their area. It requires an extra contribution for business ratepayers, which should be used to help to improve facilities such as safety, parking, crime, cleanliness etc. However the BRC offers a word of caution that a poor BID is just another tax on business. Retailers need to be proactive to get results. For more information visit www.ukbids.org Gender Pay Gap 16% A report from the International Trade Union Confederation has shown that, on average, women around the word are paid 16% less than their male counterparts, despite decades of anti-discrimination legislation. Interest Rates The Bank of England has decided to keep interest rate on hold at 5.25%. The rate was last cut from 5.50% in February amid signs of a slowdown. RPI rising The Retail Price Index (January) is 4.1%The BRC / KPMG Retail Sales Monitor for January showed a rise of 2.6% on a like-for-like basis compared to January 2007. Hiring Illegal Workers – New Fines From today, hiring illegal workers could cost businesses up to £10,000 per worker, even if the worker was not known to be illegal. Employers found to have knowingly hired illegal workers could face prison, and an unlimited fine. The new rules are part of the Immigration, Asylum and Nationality Act. As such, employers should be vigilant when employing new staff. Slips and Trips – Did you know... The latest figures from the Health and Safety Executive show that every 25 minutes, someone breaks or fractures a bone at work. Serious injuries sustained by slipping or tripping make up a third of the injuries reported to the HSE, and one person dies every week from such incidents. Make sure you carry out a suitable Risk Assessment – ask the Information Office for factsheet 113, and a sample Risk Assessment for a retail shop. HSE and HSC to Merge? The Health and Safety Executive and the Health and Safety Commission could be set to merge into one organisation. This would require an amendment to the Health and Safety at Work Act 1974, and as such, proposals have been laid before Parliament. However, if the merger takes place, it won’t necessarily mean significant changes for businesses. Better Regulation Executive (BRE) The BRE is part of the Department for Business Enterprise and Regulatory Reform, and has been charged with reviewing the UK’s current health and safety system. Initial feedback is that businesses (SMEs in particular) struggle with time consuming red tape and that many smaller businesses feel that rules should be adapted to their needs, rather than a “one size fits all” approach. Repetitive Strain Injury Awareness Day Today is International Repetitive Strain Injury Awareness Day. It’s estimated that each person affected by RSI will take 13 days off sick each year. Employers can help to reduce the problem by making sure that appropriate assessments are carried out and by encouraging early reporting of symptoms. Ask for factsheet 41, which has information about visual display unit usage, and how to carry out a workstation assessment. Faster Cash Transfers From May 27 cash transfers made via telephone or internet banking will be a lot quicker, taking only one day instead of three. Although initially the system will be aimed at personal customers, it is intended to roll out to business customers at some point in the future. M&S to Charge for Plastic Bags From May 6, customers shopping at Marks and Spencer will have to pay 5p for each plastic shopping bag they use. M&S hope this will help to reduce the amount of waste currently sent to landfill. Food customers shopping during April will receive a free “bag for life” to use in place of plastic ones. Over 50s Entrepreneurs Increasing numbers of over 50s are starting their own companies. This could be attributed to the fact that there are more people of this age at present, due to the baby boom of the late 1940s. Two types of entrepreneur have been identified – those who want the extra income, and those who have always wanted to set up their own business, and now have time to make it happen. Crackdown on Knife Crime The Government has launched a new crackdown on knife crime, with police being issued with airport-style metal detectors which can be transported to pubs, schools, or wherever they are needed. A high profile awareness campaign will also run, to make young people aware that carrying a knife for safety actually increases their risk of being a stabbing victim. It is illegal to sell knives to under 18s. Factsheet 91 has more information. Age Discrimination and Early Retirement Research from AXA has revealed that many people experience pressure from their employer to retire, despite the introduction of age discrimination legislation in 2006. It’s estimated that UK businesses could face considerable compensation bills if employees take their cases to tribunal. In addition to the financial cost, a successful claim can mean severe damage to the reputation of a business. Increased Rights for Agency Workers A Parliamentary private members bill is due for its second reading today. The bill outlines increased rights for agency workers, bringing them in line with permanent employees. This is a topic over which employers are divided, with a quarter of those surveyed believing that agency workers should never be granted equal rights, but one in five thinking that equal pay and contracts should be awarded from day one. Grants Available Business Link, in partnership with the Learning and Skills Council, may have a grant available for you if you want to send staff on a training course, or perhaps attend one yourself. Applications must be made to your local Business Link, which can be found by visiting www.businesslink.gov.uk and searching for your local office, of which there are many. Alternatively, call 0845 600 9 006. Supervision for Young People at Work Following the death of a trainee scaffolder, health and safety professionals have reiterated calls for young people to be better supervised at work. The Institution of Occupational Safety and Health (IOSH) maintains that young, inexperienced workers require adequate training and supervision. A young person’s physical or psychological limitations can increase certain risks. In the last decade, 64 under-19s have been killed at work. Initiative to Reduce Red Tape The Royal Society for the Prevention of Accidents (RoSPA) has launched plans to cut health and safety red tape for SMEs. RoSPA want to see less paperwork, better efficiency, and improved help for businesses where standards need to be raised. A report has been sent to DBERR, in response to the Better Regulation Executive’s call for evidence on how to improve health and safety. UK Sales lifted by Price Cuts Retail sales made a better-than-expected recovery in January, thanks to considerable price cuts. Analysts have predicted that this means less likelihood of further interest rate cuts before May. Pensioners’ Longevity Pension scheme trustees have been told by the Pensions Regulator to be more realistic about how long members are likely to live. Life expectancy is going up all the time, which increases the cost of funding a finalsalary pension scheme. Rates blow reminder From 1 April 2008 there will be new rules relating to rates payable on empty properties. Office and retail premises will have 100% relief for the first three months of being empty, after which the full Non-Domestic Business Rate will apply. For industrial and warehouse premises, 100% relief will be granted for six months, before the full amount becomes due. Risk Assessment Information Since BHF Group published the latest information on risk assessments in the February editions of its magazines, a lot of members have contacted it asking for the risk assessment pack. The example risk assessment for a retail shop has been published by the HSE, and has benefited from contributions from the British Retail Consortium. The BHF Group Information Office’s Factsheet 113 provides more help on carrying out assessments. Congestion Charge Triples for High-Polluters From 27 October 2008, vehicles with CO2 emissions of 226g per kilometre (g/k) or above will be subject to a £25 daily charge to enter London’s Congestion Zone. Those with 120g/k or less will be exempt. All other vehicles will continue to pay the £8 daily charge. The 90% discount for zone residents will be scrapped, meaning that they will have to pay the appropriate full amount. The new scheme will be monitored and may be subject to further changes. Packaging Waste Recovery and Recycling The Department for the Environment, Food and Rural Affairs has announced plans to increase packaging waste recovery and recycling targets from 2008 onwards. According to DEFRA estimates, higher targets in 2008 alone will cut CO2 emissions by 8m tonnes. Overall recovery targets for packaging waste are 72% in 2008, 73% in 2009 and 74% in 2010. Good News for Small Businesses in Scotland Business Rates will be cut for Scottish small businesses from April 2009, with an estimated 120,000 businesses paying no rates, and a further 30,000 benefiting from rates reductions of 25% - 50%. The Scottish National Party has agreed to the rates cuts in a bid to support small businesses and enable them to deliver “new opportunities, new employment and new ventures in towns, villages and cities across Scotland.” Fire Inspections The Regulatory Reform (Fire Safety) Order 2005 places responsibility on the owner or occupier of business premises to complete a fire risk assessment. Fire certificates are no longer issued, but inspections can take place at any time, with considerable fines for noncompliance. BHF Group Factsheets 82 and 8 have more information on how to carry out a risk assessment, and the sort of things to look for in minimising potential risks. 16-year High for Producer Prices Higher petrol and food costs have lead to the price inflation of goods leaving UK factories reaching a 16-year high, with annual output inflation at 5.7% for January. Analysts predict this could mean there will be a delay in any further interest rate cuts from the Bank of England. Good News in January After a disappointing Christmas for many retailers, UK retail sales in January rose 2.6% from January 2007. In December, the likefor-like figure was just 0.3%. Small Business Debt Research has shown that 17% of UK business owners or managers do not know how much money their business owes. Almost half admit to their business owing money, but 15% are comfortable with high debt levels if it means long-term business growth. Tougher Health and Safety Penalties? A new Bill proposing harsher penalties for health and safety offences has been unopposed at a second reading in the House of Commons. It’s hoped that higher maximum fines would be effective in persuading a minority of rogue employers to take action – currently, it’s felt that certain businesses believe it’s cheaper to pay fines than to take appropriate health and safety measures. London Low Emission Zone Since 4 February, heavily polluting lorries face fines of £200 per day to enter Greater London’s low emission zone (LEZ). Cameras check all lorries over 12-tonnes against a database of vehicles certified as meeting EU exhaust limits. Firms should make sure their vehicles comply with the new rules, which apply 24 hours a day, unlike the congestion charge. There is a 28 day window from the launch of the LEZ for vehicles to comply. Visit www.tfl.gov.uk/roadusers/lez to find out more. London Loading and Unloading Times Continuing on the London theme, it is expected that all 33 London boroughs will extend their loading and unloading times on yellow lines from 30 minutes to 40 minutes by Spring 2008. Four boroughs have already extended times, and it’s anticipated that the rest will follow suit by late March or early April. Energy Saving Light Bulbs Since the phase-out of
traditional light bulbs began in January, there have been various media
reports on the viability of their energy-saving replacements. One
concern surrounds the mercury content of energy-saving Wasting Energy at Work Research suggests that over a third of UK workers are less conscientious about saving energy at work than they are at home. Whereas at home, people tend to switch off lights that are not in use and avoid overfilling the kettle, the same principles are not applied in the office. Try to encourage employees to be more energy-aware at work by reminding people to switch off PCs overnight, and to print double-sided. Carbon emissions and costs should fall as a result. Employing Overseas Nationals If you employ staff from outside the EU, you should be aware of new penalties which come into force later this month. Employing illegal staff could result in a fine of up to £10,000 per worker. Interest Rates Cut Again The Bank of England has cut interest rates from 5.5% to 5.25%. Several mortgage lenders said the rate cut would be passed onto borrowers. The Bank has warned that it might have to sacrifice some economic growth so that inflation can be brought back under control, and some analysts predict that further rate cuts will take place if economic conditions continue to deteriorate. 2008 Budget The Chancellor will deliver his first Budget on 12 March. Analysts warn that taxes will have to be raised significantly so that the Government doesn’t break its public borrowing targets. £6 Minimum Wage Unsupportable? Specialists PAYEpeople have suggested that the TUC’s suggested minimum wage rise to over £6 per hour (for 18 year olds and above) is too high, and that companies are not ready for such an increase. Since the introduction of the minimum wage in 1999, over £27m has been recovered in unpaid wages. The current rate for adults aged 22 and over is £5.52, with £4.60 and £3.40 for 18-21 year olds and 16-17 year olds respectively. Factsheet 94 has more information. Another High Street Retailer to Ban Cheques From 1 March 2008,
Marks and Spencer will join other retailers in not accepting cheque
payments, anticipating New Rights for Carers on the Horizon? The initial stages of a
landmark legal case have been won by a British woman who suffered
“discrimination by Government Plans to Expand Apprenticeships The Government has
proposed plans to examine and expand apprenticeships, with a view to
them becoming a Action Against Business Crime - Conference The Action Against Business Crime Conference 2008 takes place on Thursday 6th March at the East Midlands Conference Centre, Nottingham. A host of speakers will share ideas on crime reduction, and the prestigious Partnership Excellence Awards will be given out. For more details call 020 7854 8957, book online at www.businesscrime.org.uk or email samantha.bone@businesscrime.org.uk. Working Beyond State Pension Age In a recent survey carried out by the Chartered Institute of Personnel and Development, 38% of those questioned intended to carry on working beyond the age of 65. (Currently, only 11% of the workforce do so.) Findings also suggested that if flexible working were available, even more people would feel encouraged to stay on beyond the state pension age. HSE and HSC to Merge? Proposals to merge the Health and Safety Executive and the Health and Safety Commission have been put to Parliament. The aim of the merger is to strengthen links between strategy and delivery, which the two separate bodies are currently in charge of. Changes to Capital Gains Tax Changes to the Capital Gains Tax have been announced, with the Government confirming that it will set a single 18% rate and cease taper relief from 1 April. There will, however, be a rate of 10% on sales of assets up to £1m. The abolition of taper relief will mean that people will no longer be able to pay just 10% (or in some cases 5%) on sale of assets, but there are concerns that entrepreneurs may be put off. HSE Launching Slips, Trips and Falls Campaign According to Heath and Safety Executive statistics, around 1,000 workers are seriously injured by slips, trips or falls each month. The Shattered Lives campaign will run for two months, and is aimed at those workers most at risk, and at managers who can minimise the risks. Focussing risk assessments on near misses or accidents that may have already happened should help to pinpoint problem areas. To get started, ask the Information Office for a sample risk assessment for a retail shop. Drugs Testing for Fleet Drivers? Fleet operators may wish to start testing their drivers after a large company (wishing to remain anonymous) discovered that 40% of its drivers who had been involved in a crash tested positive for drugs or alcohol. Of those tested, 95% had been abusing illegal drugs. Having a drug or alcohol policy in place is a good idea, but in this case, testing made a real difference. New Rules on “Income Shifting” A recent consultation document from HM Treasury and HM Revenue and Customs suggests new legislation on “income shifting” could be in place from April 2008. Husband and Wife Companies who currently take modest salaries and pay dividends from the balance left (therefore paying less tax and national insurance) may have to revise arrangements. Crackdown on Illegal Working On the 29th February 2008, new measures will be introduced to help tackle the problem of illegal working in the UK. There will be a new penalty system (up to £10,000) for employers who engage illegal migrant workers, and a new criminal offence of knowingly using migrant workers (up to two years in prison). In addition, employers will have an ongoing responsibility to check that any migrant workers remain entitled to work in the UK. |
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