Latest news with #TinaMcKenzie
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.'
The Independent
24-02-2025
- Business
- The Independent
Calls to make it easier for entrepreneurs to buy homes
The Federation of Small Businesses (FSB) has said that removing barriers to self-employed individuals accessing mortgages and retirement savings could significantly boost entrepreneurship and stimulate UK economic growth. A recent FSB-commissioned survey highlights the financial hurdles faced by the self-employed, impacting both their personal and business prospects. The survey, conducted by Verve across the UK in October and November 2023, polled over 1,300 self-employed individuals. A quarter of respondents reported difficulties securing a mortgage due to their self-employed status. A total of 16% revealed they are diverting funds, which could otherwise fuel business expansion, towards mortgage repayments. The findings also shed light on the financial juggling act many entrepreneurs perform. To maintain or grow their businesses, many rely on bank overdrafts (17%), credit cards (16%), and even financial assistance from family and friends (9%). The FSB also raises concerns about the excessive use of personal guarantees for business loans, arguing that this practice stifles growth by discouraging risk-taking among entrepreneurs. Retirement planning also appears to be a significant challenge for the self-employed. Over a third (37%) of those surveyed admitted to not contributing to a pension, primarily due to cash flow constraints, a factor cited by 32% of those who hadn't made pension contributions in the past year. These findings underscore the need for policy changes to support self-employed individuals in building a secure financial future, both for themselves and their businesses, ultimately contributing to a stronger UK economy. People who are employees rather than self-employed are often automatically placed into a workplace pension by their employer, where they benefit from pension contributions from the firm they work for as well as their own contributions and tax relief. The FSB is calling for the mortgage application process to be simplified for self-employed people, with a standardised approach across lenders so that people can be better-prepared in understanding what information they will need to provide. Lenders could also be encouraged to consider offering lower mortgage rates to self-employed people who have taken out income protection insurance, the FSB said. It also claimed that lenders can overuse requests for personal guarantees, which can have a chilling effect on the economy, causing limited company directors to put personal assets such as their homes on the line when taking on a loan. Such guarantees should be under the scope of the Financial Conduct Authority (FCA)'s Consumer Duty, to deter overuse, the FSB said. The duty requires financial firms to put the customer at the heart of what they do. Tina McKenzie, FSB's policy chairwoman, said: 'By solving the finance conundrum too many entrepreneurs find themselves in, we can help to unlock the growth we need to get the economy on track.' She said: 'People who decide to take a leap into the unknown by embracing entrepreneurship are taking on many risks – not least that of no longer being able to rely on a secure income. 'Income volatility adds additional barriers to accessing finance products, such as mortgages and external finance for their business, and makes saving for a pension harder. 'The impact of this should be minimised to encourage more people to take the leap without worrying that they will be locked out of common financial milestones as a result. 'The dream of owning your own home is firmly entrenched in our national culture, while we all aspire to a comfortable retirement, but these things should not be a privilege reserved for those in conventional employment. 'Keeping Business Asset Disposal Relief at 14% could help entrepreneurs avoid erosion of their retirement funds. 'As the Government develops its Small Business Strategy for publication later this year, it must cater to the needs of the self-employed. 'Getting this right will enable entrepreneurs to do what they do best – innovate, adapt and create.' David Raw, managing director of commercial finance at UK Finance said: 'The banking and finance industry supports millions of SMEs and entrepreneurs across the country. They are a vital part of the economy and we want them to succeed. 'Personal guarantees play an important role in enabling lending to take place. They can unlock finance that would not otherwise be available and also lead to businesses accessing cheaper rates. 'We recently issued a series of industry commitments on how personal guarantees are used to support lending. The vast majority of personal guarantees are not called upon and there is a competitive market with a range of options for borrowers who do not want to sign one. 'There are a number of mortgage options available for the self-employed from a range of lenders. An independent mortgage broker will be able to give advice on different lenders' approaches and what documentation they will require. 'A number of banks also have helpful guides on their websites to support the self-employed when considering applying for a mortgage.' An FCA spokesperson said: 'We will read the report with interest and consider the recommendations.' The regulator recently said it will be looking in general at rules around mortgages. Some commercial lending is outside the scope of the FCA's regulation and its remit is established by legislation. A Government spokesperson said: 'We are going further and faster to drive growth through our Plan for Change, to put more money into working people's pockets. 'That means making Britain the best place to start and scale up a business, which is why we're tackling the scourge of late payments and introducing a fairer business rates system which incentivises investment. 'The UK benefits from a competitive mortgage market and any prospective mortgage borrower should shop around to find the best possible mortgage product for their circumstances.'
The Independent
24-02-2025
- Business
- The Independent
Giving entrepreneurs better mortgage and pension access ‘could boost economy'
Removing barriers to self-employed people getting mortgages or being able to retire could help to boost entrepreneurship and grow the UK economy, according to the Federation of Small Businesses (FSB). A survey of more than 1,300 self-employed people commissioned by the FSB found that a quarter (25%) said being self-employed has made it harder to access a mortgage. One in six (16%) said that savings or capital they would otherwise use to expand their business are being used to pay their mortgage. Entrepreneurs are also relying on various finance options to grow or stay afloat, including bank overdrafts (17%), credit cards (16%), and financial support from family and friends (9%), the report found. The FSB also claimed that personal guarantees, which make borrowers personally liable for business loans, are being used excessively and stifling growth, dampening entrepreneurs' willingness to take risks. Economic growth has been a key focus for the UK Government. The survey, carried out across the UK by research agency Verve in October and November 2023, also indicated that saving for a pension is at the back of the queue for many entrepreneurs. More than a third (37%) said they do not pay into a pension, often because of cash flow constraints, which were cited by 32% of those who said they had not contributed to a pension in the previous year. People who are employees rather than self-employed are often automatically placed into a workplace pension by their employer, where they benefit from pension contributions from the firm they work for as well as their own contributions and tax relief. The FSB is calling for the mortgage application process to be simplified for self-employed people, with a standardised approach across lenders so that people can be better-prepared in understanding what information they will need to provide. Lenders could also be encouraged to consider offering lower mortgage rates to self-employed people who have taken out income protection insurance, the FSB said. It also claimed that lenders can overuse requests for personal guarantees, which can have a chilling effect on the economy, causing limited company directors to put personal assets such as their homes on the line when taking on a loan. Such guarantees should be under the scope of the Financial Conduct Authority (FCA)'s Consumer Duty, to deter overuse, the FSB said. The duty requires financial firms to put the customer at the heart of what they do. Tina McKenzie, FSB's policy chairwoman, said: 'By solving the finance conundrum too many entrepreneurs find themselves in, we can help to unlock the growth we need to get the economy on track.' She said: 'People who decide to take a leap into the unknown by embracing entrepreneurship are taking on many risks – not least that of no longer being able to rely on a secure income. 'Income volatility adds additional barriers to accessing finance products, such as mortgages and external finance for their business, and makes saving for a pension harder. 'The impact of this should be minimised to encourage more people to take the leap without worrying that they will be locked out of common financial milestones as a result. 'The dream of owning your own home is firmly entrenched in our national culture, while we all aspire to a comfortable retirement, but these things should not be a privilege reserved for those in conventional employment. 'Keeping Business Asset Disposal Relief at 14% could help entrepreneurs avoid erosion of their retirement funds. 'As the Government develops its Small Business Strategy for publication later this year, it must cater to the needs of the self-employed. 'Getting this right will enable entrepreneurs to do what they do best – innovate, adapt and create.' David Raw, managing director of commercial finance at UK Finance said: 'The banking and finance industry supports millions of SMEs and entrepreneurs across the country. They are a vital part of the economy and we want them to succeed. 'Personal guarantees play an important role in enabling lending to take place. They can unlock finance that would not otherwise be available and also lead to businesses accessing cheaper rates. 'We recently issued a series of industry commitments on how personal guarantees are used to support lending. The vast majority of personal guarantees are not called upon and there is a competitive market with a range of options for borrowers who do not want to sign one. 'There are a number of mortgage options available for the self-employed from a range of lenders. An independent mortgage broker will be able to give advice on different lenders' approaches and what documentation they will require. 'A number of banks also have helpful guides on their websites to support the self-employed when considering applying for a mortgage.' An FCA spokesperson said: 'We will read the report with interest and consider the recommendations.' The regulator recently said it will be looking in general at rules around mortgages. Some commercial lending is outside the scope of the FCA's regulation and its remit is established by legislation. A Government spokesperson said: 'We are going further and faster to drive growth through our Plan for Change, to put more money into working people's pockets. 'That means making Britain the best place to start and scale up a business, which is why we're tackling the scourge of late payments and introducing a fairer business rates system which incentivises investment. 'The UK benefits from a competitive mortgage market and any prospective mortgage borrower should shop around to find the best possible mortgage product for their circumstances.'
Yahoo
24-02-2025
- Business
- Yahoo
Giving entrepreneurs better mortgage and pension access ‘could boost economy'
Removing barriers to self-employed people getting mortgages or being able to retire could help to boost entrepreneurship and grow the UK economy, according to the Federation of Small Businesses (FSB). A survey of more than 1,300 self-employed people commissioned by the FSB found that a quarter (25%) said being self-employed has made it harder to access a mortgage. One in six (16%) said that savings or capital they would otherwise use to expand their business are being used to pay their mortgage. Entrepreneurs are also relying on various finance options to grow or stay afloat, including bank overdrafts (17%), credit cards (16%), and financial support from family and friends (9%), the report found. The FSB also claimed that personal guarantees, which make borrowers personally liable for business loans, are being used excessively and stifling growth, dampening entrepreneurs' willingness to take risks. Economic growth has been a key focus for the UK Government. The survey, carried out across the UK by research agency Verve in October and November 2023, also indicated that saving for a pension is at the back of the queue for many entrepreneurs. More than a third (37%) said they do not pay into a pension, often because of cash flow constraints, which were cited by 32% of those who said they had not contributed to a pension in the previous year. People who are employees rather than self-employed are often automatically placed into a workplace pension by their employer, where they benefit from pension contributions from the firm they work for as well as their own contributions and tax relief. The FSB is calling for the mortgage application process to be simplified for self-employed people, with a standardised approach across lenders so that people can be better-prepared in understanding what information they will need to provide. Lenders could also be encouraged to consider offering lower mortgage rates to self-employed people who have taken out income protection insurance, the FSB said. It also claimed that lenders can overuse requests for personal guarantees, which can have a chilling effect on the economy, causing limited company directors to put personal assets such as their homes on the line when taking on a loan. Such guarantees should be under the scope of the Financial Conduct Authority (FCA)'s Consumer Duty, to deter overuse, the FSB said. The duty requires financial firms to put the customer at the heart of what they do. Tina McKenzie, FSB's policy chairwoman, said: 'By solving the finance conundrum too many entrepreneurs find themselves in, we can help to unlock the growth we need to get the economy on track.' She said: 'People who decide to take a leap into the unknown by embracing entrepreneurship are taking on many risks – not least that of no longer being able to rely on a secure income. 'Income volatility adds additional barriers to accessing finance products, such as mortgages and external finance for their business, and makes saving for a pension harder. 'The impact of this should be minimised to encourage more people to take the leap without worrying that they will be locked out of common financial milestones as a result. 'The dream of owning your own home is firmly entrenched in our national culture, while we all aspire to a comfortable retirement, but these things should not be a privilege reserved for those in conventional employment. 'Keeping Business Asset Disposal Relief at 14% could help entrepreneurs avoid erosion of their retirement funds. 'As the Government develops its Small Business Strategy for publication later this year, it must cater to the needs of the self-employed. 'Getting this right will enable entrepreneurs to do what they do best – innovate, adapt and create.' David Raw, managing director of commercial finance at UK Finance said: 'The banking and finance industry supports millions of SMEs and entrepreneurs across the country. They are a vital part of the economy and we want them to succeed. 'Personal guarantees play an important role in enabling lending to take place. They can unlock finance that would not otherwise be available and also lead to businesses accessing cheaper rates. 'We recently issued a series of industry commitments on how personal guarantees are used to support lending. The vast majority of personal guarantees are not called upon and there is a competitive market with a range of options for borrowers who do not want to sign one. 'There are a number of mortgage options available for the self-employed from a range of lenders. An independent mortgage broker will be able to give advice on different lenders' approaches and what documentation they will require. 'A number of banks also have helpful guides on their websites to support the self-employed when considering applying for a mortgage.' An FCA spokesperson said: 'We will read the report with interest and consider the recommendations.' The regulator recently said it will be looking in general at rules around mortgages. Some commercial lending is outside the scope of the FCA's regulation and its remit is established by legislation. A Government spokesperson said: 'We are going further and faster to drive growth through our Plan for Change, to put more money into working people's pockets. 'That means making Britain the best place to start and scale up a business, which is why we're tackling the scourge of late payments and introducing a fairer business rates system which incentivises investment. 'The UK benefits from a competitive mortgage market and any prospective mortgage borrower should shop around to find the best possible mortgage product for their circumstances.' 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