Our weekly Small Business Bites continues – and what a busy week it’s been! Here’s everything you need to know from the last five days:
Monday
During a presentation to HSBC’s commercial clients, the bank’s chief economist, Stephen King, warned that a slow Brexit departure could turn the UK into a “zombie member” of the EU. But he also said that Brexit was “definitely not Armageddon” and reassured SMEs that it may lead to more opportunities to export beyond Europe.
In other news, The UK Export Finance (UKEF) released its annual report and accounts for 2015-2016. It shows that UKEF has supported the largest number of exporters for 25 years, with a 23% increase since last year. 77% of the exporters that benefitted from finance and insurance from UKEF were SMEs.
Tuesday
The latest British Retail Consortium-KPMG survey found that UK retail sales fell by 0.5% in June on a like-for-like basis. Helen Dickinson, BRC’s chief executive, said it was “too early” to tell whether shoppers are being affected by the result of the recent referendum, adding: “The month outturn was predominantly driven by a decline in sales in the fashion categories and isn’t a surprise given that June 2015 saw record growth in clothing and footwear…Britain’s retailers remain open for business. The EU referendum vote has not changed their relentless pursuit of delivering for customers day in, day out or their investment in meeting the needs of fundamental changes in the way people shop, driven by digital and technology.”
Tuesday also saw Waitrose commit to seven day payments terms for SME suppliers. The step, which will be phased in over the next two months, pledges to pay all its small scale suppliers, whose business with the retailer is worth less than £100,000 annually, within seven days of receipt of a valid electronic invoice. More than 600 UK food producers will benefit from the change. Mark Williamson, Waitrose commercial director, said: “The internal review of how we pay our smallest suppliers was initiated because we wanted to make our good relationships with small suppliers even better by simplifying the payment process.
“We are passionate about supporting and nurturing British producers – and this step will help give smaller scale businesses, including new start-ups, more financial stability by helping with cash flow.”
Wednesday
Theresa May became the UK’s next Prime Minister after Andrea Leadsom pulled out of the Conservative Party leadership race. During her speech outside 10 Downing Street, she vowed to lead a Government that works for all and not just the “privileged few”.
Late on Wednesday evening, the PM started to make changes to the cabinet. Changes include: Boris Johnson as the new Foreign Secretary (replacing Philip Hammond), and Philip Hammond as Chancellor. Amber Rudd (the former Energy and Climate Change Secretary) was made Home Secretary, filling the vacancy left by Theresa May, and Andrea Leadsom was announced as the new Environment, Food and Rural Affairs Secretary.
Thursday
The Bank of England maintained the UK’s interest rate of 0.5%, despite speculation that the rates would be cut. The Monetary Policy Committee (MPC) voted by a majority of 8-1, with one member voting for a cut in Bank Rate to 0.25%. The Committee also voted unanimously to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.
Friday
Latest figures from The Office of National Statistics found that British construction output fell 2.1% in May compared with April. Economists polled by Reuters had expected a 1.0 percent decrease in May. Compared with May 2015, output in the construction industry decreased by 1.9%.
