Latest news with #TinaMcKenzie
Times
30-07-2025
- Business
- Times
Government to introduce ‘toughest laws on late payments'
The government has said it will introduce the 'toughest laws on late payments' in the G7 group of nations including maximum payment terms and multimillion-pound fines for large companies that mistreat suppliers. Audit committees will also be legally required to oversee corporate payment practices at board level, the government said as part of a plan to increase pressure on large businesses to 'show they're treating small suppliers fairly'. The planned legislation represents the biggest overhaul of payments rules in several years and follows criticism of successive governments for inaction on the issue following a wave of consultations. • Large firms targeted in crackdown on late payments to small businesses Previous measures, such as the creation of a small business commissioner to mediate on payment disputes and a 'duty to report' payment performance have made little impact. However, there is confidence the latest plans could prove significant. Tina McKenzie, policy chairwoman of the Federation of Small Businesses called the measures 'bold and ambitious' and an 'encouraging commitment from the government to take the side of small businesses'. The planned legislation will introduce maximum payment terms of 60 days, eventually reducing to 45 days. At the moment there is no legislation for maximum payment terms and it is not uncommon for corporate customers to take more than 120 days to settle small suppliers' bills. There will also be mandatory interest charges for large companies who pay bills late, the government said, and the commissioner will be given an enhanced powers, including fines of 'potentially millions of pounds' for businesses which consistently pay suppliers late. It has been estimated that slow and late payment of commercial debts costs the economy £11 billion a year by placing cashflow and productivity strains on suppliers. The reforms are part of a wider package that also includes £4 billion worth of financial support to improve small companies' access to finance via the British Business Bank, the state economic development agency. It is also expected that the government will provide guidance to the banking industry intended to cut down on misuse of personal guarantees, which require directors of limited companies to put personal assets on the line to secure commercial loans. Sir Keir Starmer said late payment was 'unfair, it's exhausting and it's holding Britain back. So, our message is clear: it's time to pay up.' He added:'We're not only tackling the scourge of late payments once and for all, but we're giving small business owners the backing and stability they need for their business to thrive.'
Times
12-07-2025
- Business
- Times
Small business sentiment at record low, poll reveals
More small businesses expect to downsize or shut up shop than grow over the next 12 months, according to a survey by one of the UK's most influential trade bodies. Of those surveyed, 27 per cent of owners expect their businesses to either close, shrink or be sold in the coming year, according to the Federation of Small Businesses (FSB). Only 25 per cent believed their businesses would expand. The sentiment is the worst since the closely watched annual survey began in 2008. After suffering from tax rises since Labour swept to power, Tina McKenzie, the FSB policy chair, said small businesses were 'facing a very dangerous situation'. 'Confidence being so low, and not showing any improvement since the start of the year, is bad enough. Stagnation and pessimism among small businesses spells huge risk for the overall economy,' she said. For years political leaders have lauded small business as the 'backbone of the economy'. Rachel Reeves, the chancellor, has insisted that the government is doing all it can to shield small firms from the fallout caused by her commitment to balance public finances. She said in December: 'I know it's tough and there are a lot of costs but we are trying to help.' The FSB polling comes days after it emerged that the UK economy had unexpectedly contracted. Reeves admitted she was 'disappointed' by a 0.1 per cent contraction in May, announced by the Office for National Statistics (ONS) on Friday. Small business owners said the state of the domestic economy was their biggest worry, followed by the tax burden and rising labour costs. The results come just a week after it emerged that the hospitality industry had suffered the worst job losses since the Covid-19 pandemic, with 69,000 roles cut since October. There were warnings that 200,000 further jobs would be lost if Reeves's increase to the minimum wage and national insurance contributions are not reversed. McKenzie said: 'The government has made all the right noises about supporting the small business community.' But she added that members' growth was being affected by late payments by larger businesses and the blanket imposition of personal guarantees on loans. On Friday, the FSB issued a super-complaint to the Financial Conduct Authority to highlight the 'harsh lending practices' of banks that demand personal guarantees for business loans. It said personal guarantees could be a 'straitjacket' on business growth, forcing entrepreneurs to put their homes or other assets on the line when taking out finance — even for small loans. Many business owners are now more likely to abandon their business or growth plans or be pushed into being over-cautious, the FSB said. A second survey last week found that more than half the leaders of small and medium-sized companies in the UK believe the economic climate is more volatile than during the pandemic. The poll — by Dext, which makes bookkeeping automation tools — showed that more than a quarter of businesses had cut staff or frozen hiring and that early half had faced cashflow issues or turned to emergency funding. More than half have also said planning was 'virtually impossible' in the current climate. Among those forced to make redundancies is Tom Haward, who runs Richard Haward's Oysters, an eighth-generation family business. He let go one staff member and cut the hours of the remaining 18 employees. He said it was one of the hardest decisions he has had to make since succeeding his father, but had no choice because customer spend has declined 10 per cent in the past 12 months. 'It's so hard but I can't put prices up because then people spend even less so I have no choice but to cut costs where I can,' said Haward, 43. Likewise, Dana Denis-Smith, the founder of Obelisk Support, which offers part-time lawyers to companies including Barclays Bank and BT, chose not to offer permanent contracts to the three staff whose 12-month contracts ended earlier this year. She said she knows a 'huge' number of people who have recently chosen to shut down their businesses due to the volatile economic climate. 'They'll say, 'I'm so stressed – what's the point?' The increased taxation burdens adds to a sense that entrepreneurs aren't welcome, said Denis-Smith, 49. 'There's no drive or energy in the economy.' Mandira Sarkar, the founder of Mandira's Kitchen, a caterer and maker of upmarket Indian ready meals, is among those carefully considering her options. She is fearful of the impact of further potential tax rises in the autumn budget. 'For an economy to thrive, you've got to create conditions for businesses to function, not to stifle them. It's an absolute bloodbath out there and my family are looking at me saying, 'Why are you doing this? Let's just shut it.' Sarkar, 54, admits that, for the first time, it's tempting to close the business and try something new. 'It can't carry on like this,' she said. A spokesman for the business department said: 'The last few years have been incredibly difficult for business. That's why this pro-business government is determined to improve the total business environment including for small businesses.' Of the challenges faced by small companies seeking access to the capital needed to help them grow, he said the government is 'focused on working with banks to create opportunities for businesses to access the finance they need to scale, export and break into new markets.'
South Wales Argus
13-06-2025
- Business
- South Wales Argus
Spending review: Welsh small businesses 'feel no benefits'
Tina McKenzie, policy chair of the Federation of Small Businesses (FSB), said: "Small businesses will be wondering when they will feel the benefits of today's Spending Review. "It was not the business-focused day they had hoped for." She highlighted the lack of support for small businesses in various spending allocations, including statutory sick pay, housing, defence and energy efficiency funding. However, she acknowledged the 'significant increase in resources' for the British Business Bank as a 'major bright spot'. She urged government departments to be strategic with their spending over the next three years. FSB Wales Chair, John Hurst, said: "Small businesses in Wales continue to face relentless pressure from rising employment costs, ongoing changes to employment legislation, and sustained high energy bills." He called on the Welsh Government to use the local growth funding from the Spending Review to bolster the business support system and foster a dynamic entrepreneurial ecosystem.
Yahoo
05-04-2025
- Business
- Yahoo
Tariff hike pressures UK exporters as JCB expands US footprint
UK business groups have warned that new import tariffs announced by US President Donald Trump could have severe consequences for British exporters, including equipment manufacturers. The measures, which introduce a 10% tariff on all UK goods imported into the United States and a 25% rate on steel, aluminium and cars, are expected to disproportionately affect small and medium-sized enterprises (SMEs) and sectors with significant US exposure. The Federation of Small Businesses (FSB) said the policy will be a 'major blow' to SMEs already struggling with weak growth in the domestic market. Around 59% of UK small exporters sell goods into the US, according to FSB data. Tina McKenzie, the FSB's policy chair, said the new tariffs 'will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat', adding that government support may be necessary to prevent business failures. The Confederation of British Industry (CBI) echoed these concerns, describing the tariff package as 'deeply troubling'. CBI chief executive Rain Newton-Smith urged the UK Government to respond calmly, warning that retaliatory measures would increase supply chain disruption and reduce investment. Trade analysts also expect affected exporters to reassess the viability of US markets. Emma Rowland, trade policy adviser at the Institute of Directors, noted that the US remains the UK's largest single trading partner and a key destination for exports from sectors such as automotive, chemicals, pharmaceuticals and whisky. 'Exporters to the US will be forced to review the viability of the US as a destination for their goods,' Rowland said. 'Alternatively, they may well have to reduce their profit margins to remain competitive.' Construction equipment manufacturer JCB has responded to the tariffs by accelerating plans to expand its production capacity in the United States. The firm confirmed it is doubling the size of its forthcoming plant in San Antonio, Texas, from 500,000 square feet to one million square feet. The $500m facility is expected to begin operations next year and employ up to 1,500 people. The new factory will produce Loadall telescopic handlers – JCB's top-selling product in North America – as the company shifts more of its production base closer to its key export market. JCB has been manufacturing in the US for five decades and currently operates a plant in Savannah, Georgia, which has been in use for 25 years and employs approximately 1,000 workers. Commenting on the impact of the new tariffs, JCB CEO Graeme Macdonald said: 'In the short term, the imposition of tariffs will have a significant impact on our business. However, in the medium term, our planned factory in San Antonio will help to mitigate the impact.' JCB Chairman Anthony Bamford added that the move reflects a long-term shift in the company's strategy: 'President Trump has galvanised us into evaluating how we can make even more products in the USA, which has been an important market for JCB since we sold our first machine there in 1964.' The company confirmed that the tariffs will affect its UK-to-US exports in the near term, but said its US investment plans were already underway prior to the announcement. JCB purchased the San Antonio site in 2023 to support North American demand. "Tariff hike pressures UK exporters as JCB expands US footprint" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Independent
20-03-2025
- Business
- The Independent
Start-up firms established at universities could be lost to overseas competitors
Start-up firms established at universities are being tempted to take their talents and innovations overseas because of a lack of funding available to scale up in the UK, university chiefs have said. The UK risks becoming an 'incubator economy', as tech start-ups are already being 'snapped up' by international competitors, according to Universities UK. The organisation, which represents 141 universities across the UK, has called on the Government to ensure universities are 'adequately funded' so they can continue supporting start-ups at British institutions. An analysis by Universities UK (UUK) has suggested that by 2028, about 27,000 new start-ups, with a predicted turnover of about £10.8 billion, could be established at institutions across the UK with the right support. Figures from Higher Education Statistics Agency (HESA) show there has been a rise of start-ups supported by universities in the country in the last decade. HESA data shows that the number of active start-ups established at universities increased by 70% from 2014/15 to 2022/23, with more than 4,300 firms registered on average each year. This support consists of business mentors, providing space and facilities, connecting with investors and hosting networking events. Vivienne Stern, chief executive of UUK, said: 'The growth in university supported start-ups over the last decade has been a staggering success but we can do more, both to encourage and support new businesses born in our universities, and to ensure that they can remain in the UK and grow here. 'However, with innovative tech start-ups in particular being snapped up by international competitors, the UK risks becoming an 'incubator economy'. 'Losing these companies could impact the Government's economic growth plans as well as see the country lose some of its most talented minds. 'Fortunately, universities are working hard alongside investment firms to provide start-ups and spinouts with the necessary tools to scale up here in the UK. 'To ensure these start-ups have a more friendly environment in which to thrive, the Government and higher education sector need to work closely together to ensure universities are adequately funded to continue supporting a strong pipeline of innovative new companies.' Tina McKenzie, policy chairwoman at the Federation of Small Businesses, said: 'Supporting young people to build their own businesses fuels local growth, creates jobs and strengthens economic resilience. 'Universities can be incredibly effective at providing the knowledge, guidance and support needed to set up a business. 'But there can be significant regional disparities between them, with young people educated at university level in London most likely to have had exposure to enterprise. 'We need to see universities working together to make sure those that run student entrepreneurship programmes can help those that lack the relevant support.' A Government spokesperson said: 'We recognise the vital role that innovation and entrepreneurship play in driving economic growth, and we are delighted that our world-leading universities have been a powerhouse for the surge in start-ups. 'This government inherited a sector facing serious financial risk and has already taken tough decisions to fix the foundations of higher education to deliver change for students. 'While institutions are autonomous, we remain committed to boosting the sector's long-term financial sustainability and helping to deliver our Plan for Change, restoring universities as engines of opportunity, aspiration and growth.'
