News

Friday 5 January 2007
Business Net Rate Return Beats Estimate

British businesses, operating outside the financial sector, made a net rate of return of 15.2 pc in the third quarter of 2006 according to the Office for National Statistics. This compares with the revised estimate of 14.9 per cent in the previous quarter. For full details visit the Government Office of Statistics website [PDF]

Tuesday 19 December
Region's Growth Keeps Pace with UK
By Sophie Freeman Liverpool Daily Post Business Staff

Merseyside economic growth has kept pace with the rest of the UK, according to latest official figures.

The sub region's economic output per head grew by 5.5% in 2004, the same growth rate enjoyed by the UK as a whole.

The figures, released by the Office for National Statistics, show the growth figure for the North West as a whole increased by 5.4%. The figures are nominal growth rates and include the effects of inflation.

Merseyside's GVA (gross value added) per head for the year stands at £12,448, which is 71.3% of the national average. Liverpool is the driver for the city region, recording GVA per head of £15,530, or 89% of the average.

Wednesday 13 December
Darling: 'Relentless focus' on Cutting Red Tape
The DTI today published an ambitious simplification plan to save business up to £700m a year as part of a cross-government drive to cut red tape.

The plan sets out how the DTI will deliver specific cuts in administrative burdens and marks a major advance towards a challenging target to cut 25% of all DTI red tape by 2010. Advice and input from business, employee and consumer bodies has been crucial for the department's ongoing work on better regulation. Today's plan builds on an earlier draft published a year ago.

Trade and Industry Secretary Alistair Darling said:

"Britain is already one of the best places to do business but we must do more to ease burdens. By cutting unnecessary red tape and making essential regulation simpler we can help sustain a strong economy.

"The plan published today is the product of listening to business. By continuing to work closely every step of the way we can make simplification a reality. We are determined to do that."

Key measures in the DTI simplification plan include:

- new plans, set out in full for the first time today, to simplify consumer protection legislation by replacing and improving provisions in twenty two pieces of consumer legislation, through DTI-led implementation of the Unfair Commercial Practices Directive;

- the new International Trade Single Window to allow traders to lodge information with a single body to fulfil all import and export regulatory requirements. The one-stop-shop has just gone live through the award-winning Business Link website. Savings are expected to amount to about £60m a year;

- a root and branch review announced last week to simplify and improve employment dispute resolution. Michael Gibbons will lead the review and also chair a new panel to advise on wider employment law simplification and make suggestions for other areas where we can simplify without reducing employee rights;

- a Retail Enforcement Initiative establishing new ways of working between trading standards, environmental health, and health and safety and fire authorities to achieve a third fewer inspections for compliant businesses. As announced to the CBI last month, pilots launched in Bexley and Warwickshire in 2005 will be rolled out to 70 authorities from April 2007;

- companies will be allowed to communicate with shareholders electronically rather than in writing, saving larger firms £100,000-400,000 per mailing, with the implementation of the Companies Act 2006; and,

- form filling and access to Companies House registration and database services is being dramatically improved through award winning automated systems. Over 50% of annual returns are being filed electronically. The £13m savings could be increased by a further £60m as a result of a joint filing initiative with Her Majesty's Revenue and Customs.

Commenting on the DTI's simplification plan, John Cridland, CBI Deputy Director General said:

"The DTI's regulatory simplification plan focuses effort in the right areas that matter to business. Employment legislation is the biggest regulatory concern for most companies and action here will be particularly important. The Plan is an encouraging road map; delivery of it will be the real prize for business."

Carol Undy, National Chair of the Federation of Small Business said:

"We very much welcome this initiative to reduce the time and cost burdens on business from regulation. I'm sure our 200,000 members are looking forward to these proposals producing tangible results for them in their daily work. Small businesses employ 58% of the private sector workforce. Therefore, freeing up more time for them to grow will create more jobs and wealth that will benefit the whole country. We will monitor the DTI's progress and we look forward to working with the Secretary of State and his Department to ensure that this proposal bears fruit."

Brendan Barber, General Secretary of the TUC said:
"It is important that all regulation is as easy to understand and implement as possible, without detracting from basic protections for employees and consumers. To this end we welcome the DTI's Simplification Plan, which will benefit both".

Thursday 7 December
Pre-Budget Report Summary
British Chambers of Commerce has produced a summary of the main points covered in the Chancellor's Pre-Budget speech. Te full report is available on the HMT website at http://www.hm-treasury.gov.uk/pre_budget_report/prebud_pbr06/prebud_pbr06_index.cfm.
The pre-budget report focussed on key themes of investment in transport, housing and skills. The PBR drew heavily on all the recent government commissioned reports - further information on these can be found below;

No major tax changes were announced;

The Chancellor has stated that his efficiency programme is on track. Baseline savings will be at least 3 per cent per year across local and central government whilst administrative budgets will be cut by at least 5 per cent over the 2007 CSR period. This will release an extra £26bn;

£9.6bn planned investment in transport in 2007/08;

Inflation-only rise in road fuel duty of 1.25p per litre from midnight;

Increase in air passenger duty from 1st February 2007 from £5 to £10 in recognition of the environmental costs of flying;

£8bn planned investment in housing;

A time-limited stamp duty exemption on all new zero carbon homes;

Capital investment in education to rise from £8.3bn in 2007/08 to £10.2bn in 2010/11;

A four-year educational investment settlement was also announced - a total of £36bn is to be invested in educational institutions over the period;

A further £130m will be given directly to schools in England in 2007/08 to support personalised teaching and extended services;

From the 1st of April 2007, landfill tax will increase by £3 to £24 per tonne;

A series of measures to tighten the tax avoidance regime were announced plus further strengthening of strategy relating to the Missing Trader VAT fraud;

The Government is taking action against Managed Service Company (MSC) schemes which avoid paying employed levels of tax and NICS;

Some modernising of the tax system were announced - simplification of tax rules governing life assurance companies and the introduction of a Construction Industry Scheme which aims to help the construction industry comply with their tax obligations whilst reducing regulatory burdens;

Improving the enforcement of the National Minimum Wage to tackle non-compliance and raising penalties for those who are seriously non-compliant; and

Individual Savings Accounts (ISAs) will become permanent beyond 2010;

Lyons Review - Sir Michael Lyons is now set to report to the government at the time of the budget 2007. The Chancellor has announced that he and Ruth Kelly, Secretary of State for Communities and Local Government, have asked Sir Michael Lyons to consider the implications for local government of the Eddington report on transport, the Barker report on planning and the Leitch review on skills in the final report from his Inquiry into the role, function and funding of local government, and to make appropriate recommendations to government. This will mean a short extension to Sir Michael's Inquiry. A further consultation on the planning gain supplement is also set for 2007.
Gowers Review of Intellectual Property: In December 2005, the Chancellor of the Exchequer asked Andrew Gowers to conduct an independent review into the UK Intellectual Property Framework and the report has been published today. Intellectual Property (IP) is a critical component of our present and future success in the global economy. The UK's economic competitiveness is increasingly driven by knowledge-based industries, especially in manufacturing, science-based sectors and the creative industries. The IP framework needs to create incentives for innovation, without unduly limiting access for consumers and follow-on innovators. The principle recommendations of the Review are aimed at: tackling IP crime and ensuring that rights are well enforced; reducing the costs and complexity of the system; and reforming copyright law to allow individuals and institutions to use content in ways consistent with the digital age.

Wednesday 6 December
Manufacturing Recovery Losing Momentum and Signals Risk
Reacting to today's publication by the Office for National Statistics (ONS) of the Industrial and Manufacturing Output figures for October 2006, David Kern, Economic Adviser to the British Chambers of Commerce (BCC), said:

"Today's manufacturing figures for October 2006 confirm that a gradual recovery is still underway. But the upturn appears to be losing momentum, and the monthly decline in October was disappointing.

"Manufacturing output fell by 0.4% between September and October 2006, worse than expected. In the three months August-October 2006, manufacturing increased by 0.3% compared with the previous three months, and by 2.2% compared with the same period a year ago. The year-on-year increase is satisfactory. However, the 3-month-on-3-month comparison, which is the best guide to short-term trends, shows a steady and worrying deceleration in the rate of growth, from 1% in the three months to July 2006, to only 0.3% in the three months to October 2006

David Kern concluded: "The manufacturing figures remain weak by historical standards, and the recovery is fragile and vulnerable. The figures published today relate to a period before the November increase in interest rates, and before the recent sharp upsurge in sterling, which is putting a painful squeeze on manufacturing export margins. To minimise damage to manufacturing (and to business in general), we reiterate our view that the MPC should make it as clear as possible that further increases in interest rates would not be contemplated in the foreseeable future"

Tuesday 5 December
Barker Sets Out Proposals for Planning System For the 21st Century
Kate Barker today published her final report on the Land Use Planning System in England.

The report highlights the vital role planning needs to play to deliver sustainable economic development in the context of the pressures of a growing population, rising incomes, changing demographics, climate change and the competitive challenges of rapid changes in the global economy. Kate Barker makes recommendations to improve the responsiveness, efficiency and transparency of the planning system so that it can fulfil its potential. Speaking today she said:

"The planning system has a profound impact on our quality of life, but the current system will come under increasing pressures in the coming decade. Building on recent reforms, the recommendations in my report provide a comprehensive set of measures to ensure we have a planning system that is timely, transparent, flexible and responsive enough to meet the challenges that lie ahead.

"Businesses, residents and others want a system that can continue to secure economic prosperity alongside vital social and environmental goals. I believe this reform package, if enacted, can help create this world-class planning system."

The report recognises the high costs placed on developers, businesses and communities when the planning system is unnecessarily slow, unpredictable, expensive and bureaucratic. The report recommends streamlining of planning policies and processes to improve speed, transparency and efficiency. These include:

- substantial rationalisation of national planning guidance to provide a clearer and more transparent national policy framework;

- improving local plan-making processes so plans can be drawn up in 18-24 months not the current 36-42. This could save local authorities over £100 million over a three-year period;

- a more risk-based and proportionate approach to regulation, with significant reduction in the paperwork required to support applications. This will help reduce private sector planning fees (over £200 million a year) and consultancy fees (over £300 million a year);

- greater certainty of timescales with new, individually tailored delivery agreements between planning authorities and developers;

- faster processing of appeals: from 2008/09 all appeals should take place within six months, and the use of a new Planning Mediation Service to resolve disputes outside of appeal proceedings;

- a significant reduction in the number of cases suffering delays due to Ministerial call-in, with 50% fewer call-ins from 2007; and

- in line with the findings of the Eddington Study of Transport, a radical overhaul of the planning system for major infrastructure projects, including transport, waste and energy, to improve speed and certainty. Ministers should, following full consultation, set out statements of strategic objectives. Decisions on individual applications would then be taken by a new expert independent Planning Commission.

The Report makes a number of recommendations to enhance the flexibility and responsiveness of the planning system to support sustainable economic growth for the 300,000 business applications a year. These include:

- allowing minor changes to commercial premises - including the use of microgeneration technology such as small wind turbines and solar panels- to proceed without requiring planning permission;

- updating planning policy guidance on economic development for the first time in 14 years to clarify that full account of the economic benefits of development applications should be taken in decision-making;

- ensuring plans and decision-makers take better account of relevant price and market signals, such as land prices for different uses; and

- promoting more positive planning within the plan-led system by ensuring, when plans are indeterminate, that applications are approved unless there is good reason to believe the economic, social or environmental costs of development outweigh the benefits.

The Report also sets out proposals for a more efficient use of land in the context of the population, projected to rise to 55 million by 2026, including:

- encouraging a high proportion of new development into towns and urban areas through support for the town-centre first policy and use of fiscal policy to encourage empty property to be put into use, and to incentivise the use of vacant previously developed land;

- greater mixed use designations in plans and a more positive approach to applications for change of use to reflect the changing needs of the UK's flexible, service-based economy;

- ensuring sufficient supply of land for the proportion of development that cannot take place in towns and cities. With only around 8.3% of land currently classified as urban, this can be achieved while protecting land of high environmental or social value. This development should take place in locations that are best from an environmental perspective- where this is near existing towns and cities green belt boundaries should be reviewed by regional and local planning authorities to limit the increased emissions and pollution caused by commuters "jumping" the green belt; and

- protecting valued green space in urban areas and taking a more positive approach to applications that enhance the quality of the 13.5% of land in the UK classified as green belt land through creating new accessible parkland or woodland.

Tuesday 28 November
PBR, Leitch & Eddington Must Enable Us To Meet The Challenges The Chancellor Has Identified
Commenting on the Chancellor's speech to the CBI Conference this morning Sally Low, Director of Policy and External Affairs at the British Chambers of Commerce, said:

"Gordon Brown is right to recognise the challenges faced by globalisation. The BCC wants to see an environment where small and medium sized businesses can compete on fair terms internationally. The Chancellor is also correct to highlight the dangers of protectionism.

"The pre-Budget Report and the accompanying reports by Leitch and Eddington are going to be crucial if UK business is going to be able to achieve the growth it needs to meet the challenges posed by globalisation head on.

"The Chancellor has the ideal opportunity next week to show that he is committed to reducing the tax burden, ensuring an educated workforce and providing a free flowing, integrated transport infrastructure. If this is provided then British business can look forward to playing a significant role on the World stage."

Friday 10th November
HMRC opens new network of tax credit units
HMRC is opening a network of seven new specialist R&D tax credit units across the country to make it easier for innovative SMEs to take advantage of R&D tax credits. SMEs in all sectors can now benefit from improved customer services and a wider range of business-orientated support. The specialist units will conduct more outreach work - visiting companies to help them identify areas of the business that could benefit from R&D tax credits and working with the business to produce high quality applications. The units will also act as a recognised point of contact for businesses wanting to enquire about R&D tax credits and will be run by HMRC staff, who have undergone specialist training. The units are located in: Cambridge, Croydon, Leicester, Maidstone, Manchester, Portsmouth and Cardiff - which will act as central hub for dedicated teams of officers covering Wales, Scotland and Northern Ireland. Alongside the launch of the new units, the DTI, in conjunction with HMRC and HM Treasury, have published a brochure of case studies - "R&D tax credits - what's in it for you?" - illustrating companies' experiences of claiming R&D tax credits. Told in the contributors' own words, the studies illustrate a range of firms and projects already receiving R&D tax credits and the relative ease of making a claim. The companies offer their own hints and tips for making successful claims. The British Chambers of Commerce have endorsed the publication as some of our members were approached and featured in the collaboration of the case studies. Click Here for further information. Click Here for general information.

Thursday 26th October
North West Businesses Positive Despite Tough Conditions
Tough global competition, rising costs, and tight margins, are worrying North West manufacturers. But, in spite of these pressures businesses are fairly positive about the economy, according to the latest survey of the region's businesses. More than 1,150 companies responded to the Chambers of Commerce North West's Quarterly Economic Survey. For both service providers and manufacturers, domestic sales and orders are at their highest levels for some considerable time. Sam Jones, Chairman of the Economic Committee of Chambers of Commerce North West, said: "Whilst the results of this Quarter's Survey are not as buoyant as those of the previous quarter, the strength and diversity of the North West economy continue to deliver a robust performance. Conditions for businesses continue to be challenging, particularly for manufacturers who are nevertheless coping well with strong global competition and sharp increases in raw materials and energy prices. Continued margin pressure continues to be a major concern for businesses, which adds to difficulties of investing in plant and training which are vital if the competitive threat is to be addressed effectively. Exports may well recover over the coming quarters. Conditions for businesses will continue to be demanding and especially so in the short term for the commercial vehicle sector as buyers adjust to new European standards. Despite the many challenges, the North West economy will overall continue to do well." Other findings from the QES survey include the following: " Overseas sales and orders have dropped industry wide. Poor export performance is in part a consequence of exchange rate changes. more follows … continued " Labour market remains quite strong, most notably among service firms " While confidence has increased slightly among service providers, manufacturers confidence has dropped noticeably " Investment levels in plant/machinery have raised industry wide, especially among manufacturers. Investment in training has dropped " Inflation and interest rate concerns have escalated noticeably. In contrast, concern over competition has eased, though it remains the number one business concern Dr John Risk, economic adviser to Chambers of Commerce North West, said: "Domestically, North West businesses are continuing to perform strongly with the positive results of previous quarters continuing this quarter. It is in the overseas markets that our member businesses are finding conditions difficult. Manufacturers are now less confident of the year ahead, whereas optimism among service providers has continued its steady rise. Skilled people are still in demand and actual employment levels are up, as are investment levels in plant and machinery. Competition remains the number one concern, though worries have eased. Overall, the North West continues its steady improvement in economic performance, adapting in order to remain competitive. There is strong competition at home and abroad, plus profit is being squeezed." Click here for results

Monday 23rd October
BUSINESS CONFIDENCE STRONG IN QUARTER THREE
Business confidence in Liverpool is strong as the city’s companies approach the end of the year according to Liverpool Chamber’s Quarterly Economic Survey. Domestic orders and sales and export orders have all increased and local companies have stepped up recruitment. 70% of Liverpool businesses believe there will be an increase in turnover in the next 12 months compared to 57% in the second quarter. In addition, 63% believe that profitability will increase during the same period compared to 49% in quarter two. Jack Stopforth, Liverpool Chamber’s Chief Executive commented: “Local companies are showing a great deal of confidence that profitability and turnover will continue to increase, demonstrated by the QES survey and indicating that the city’s economy is healthy and growing in strength. “We are also seeing a considerable improvement in cashflow amongst our membership, increased recruitment and investment in staff training and spending on plant and machinery. “However, the rise in interest rates is causing concern and we are also getting feedback from our members that they expect the price of goods and services to rise quite sharply in the coming year.” Competition remains the factor of most concern to Liverpool businesses with 55% indicating this, however, interest rates have significantly increased in quarter three, with 43% reporting, as opposed to 18% in quarter two. The views of businesses on the price of goods and services saw a quite dramatic rise in expectations that prices would increase. In quarter three those expecting increases rose from 37% in quarter two to 55% in quarter three. Domestic sales and orders have increased during the third quarter, with 38% of respondents reporting an increase on quarter two. Domestic orders increased from 25% to 31% in the same period. Jack continued: “Generally, Liverpool’s economy has remained buoyant throughout 2006 and we are confident of a strong year end and good progress into 2007.” Click here for results.

Monday 23rd October
LIVERPOOL CHAMBER OF COMMERCE HELPS BUSINESSES COMPLY WITH NEW AGE DISCRIMINATION LEGISLATION
Chambers HR - helping businesses comply with Employment Equality (Age) regulations
Liverpool Chamber of Commerce’s HR service is helping businesses understand and comply with new age discrimination legislation that has been in place since the beginning of October. These regulations make it unlawful to discriminate in employment and vocational training on the grounds of age, and protect people of all ages - not just older workers. The specialist HR website Click here has detailed information, advice and materials on the new regulations and other key employment issues. In addition, the British Chambers of Commerce (BCC) in conjunction with The Employers Forum on Age has published a fact sheet available for free download from here. Commenting on the Employment Equality (Age) regulations Liverpool Chamber, Chief Executive Jack Stopforth said: “These new regulations have an enormous impact on the way in which staff are recruited, trained, rewarded and retired. The crucial factor for employers is to ensure that they have reviewed their policies, particularly when it comes to recruitment. Application forms need to be checked and information packs to prospective employees need to be reviewed. Businesses need to ensure that they have a skills based selection process that looks at the applicant's competencies and ignores their age. “Employers should also review their policies on training and development to ensure that staff of all ages can benefit from any opportunities that may be available. They need to reward staff according to skill, ability and work progress, not just for years of service albeit in certain circumstances it will still be possible to give a loyalty reward.”

Friday 13th October
NORTH WEST BUSINESSES HAVE GIVEN THEIR VERDICT ON SKILLS
Chambers of Commerce North West, comprising 16 local Chambers working together on behalf of businesses in the region, published today the results of a recent business survey on skills. Commenting on the findings, Phil Gartside, Chairman of Chambers of Commerce North West said: "The current acute skills shortages within the economy are the result of a 'cycle of failings' within our education and training system. The failings originate in schools and continue through to further education colleges, universities and adult skills development. The result is that businesses are forced to recruit people without basic skills,, and employers can't find people trained with higher-level vocational skills. "Young people must have good basic skills before they enter employment. It is not the role of the employer to teach basic skills but the role of the education system", commented Phil Gartside. "Parts of our education system still seem to be provider-led rather than customer-led. In the business world that would be commercial disaster. In the education world that is a waste of public money and a recipe, ultimately, for a less skilled and less well-educated workforce. Radical solutions are needed that place businesses at the heart of the skills agenda. Employers now must be given a greater role in the design of vocational qualifications, and identifying skills and training needs". "There are far too many Government agencies and institutions who maintain that they know best about how to take forward this agenda. Yet year on year we see our employers reporting difficulties finding the right staff. We need a comprehensive review of the plethora of agencies and bodies involved in the skills arena. The number of public sector agencies involved in skills development must be reduced and streamlined. "Young people need education and training. They should not have to be faced with a choice of education or training." Click here for results

Thursday 12th October
Signs of recovery must be supported by benign interest rates and business-friendly economic policy - UK’s largest and most representative economic survey signals cautious optimism
Releasing its Q3 Quarterly Economic Survey, (QES) the British Chambers of Commerce said that whilst there are positive elements in the UK economic climate, many concerns still persist. Commenting on the survey Sally Low, Director of Director of Policy & External Affairs, said: "Today’s positive results should not be seen as an excuse for complacency or for damaging increases in interest rates.” “Businesses are steeling themselves for a possible rise in rates later this year. But to minimise the damage to the economy and particularly to manufacturing, it is vital that the MPC ensures that, unlike in August, an increase in rates does not come as a shock. “The MPC must make it clear that, if a rise in rates is necessary, and such a move is not inevitable, five per cent should be seen as the absolute ceiling, and further interest rate increases are very definitely not on the cards. “The UK upturn is still fragile. UK businesses face oppressive regulatory burdens, and concerns over future tax increases threaten confidence. To nurture the fragile recovery, we need a business-friendly economic policy ” David Kern, the BCC’s Economic Adviser, noted that: “Net balances for exports, employment and investment are up across the board. But the domestic and confidence balances are mixed. “Pressures to increase prices are much stronger, pay settlements are up and capacity utilization is increasing. These pressures are disturbing, because they may add to the clamour for higher interest rates, at a time when global risks are worsening, with growth set to slow next year in both the US and the Eurozone. ” The manufacturing sector recorded stronger balances for home sales and orders, export sales and orders, employment and employment expectations, cashflow, and investment in plant and machinery. But manufacturing confidence balances weakened overall, with a large fall in profitability confidence. The service sector’s Q3 balances improved for export sales and orders, employment and employment expectations, cashflow, investment in plant and machinery, and both confidence balances. But the service sector’s home balances worsened overall, with a fall in home sales only partially offset by a marginal increase in home orders. Mr Kern concluded: “Stronger Q3 balances for exports, employment and investment indicate that growth has been satisfactory but the sharp falls in the manufacturing sector’s profitability confidence balance and the overall weakening in the service sector’s domestic balances are worrying.” “This survey indicates strong pressures to increase prices in both manufacturing and services partly due to higher wages. The Q3 results also show higher rates of capacity utilisation and combined these pressures are worrying because they potentially add pressure to raise interest rates at a time when global risks are worsening.”

Q3 QES Summary

Introduction
The Q3 2006 results are mostly positive, but there are worrying features. The net balances for exports, employment and investment are up across the board. But the domestic and confidence balances are mixed. Pressures to increase prices are much stronger, pay settlements are up, and capacity utilization is increasing. The manufacturing sector recorded stronger balances for home sales & orders, export sales & orders, employment & employment expectations, cashflow, and investment in plant & machinery. But the manufacturing confidence balances weakened overall, with a large fall in profitability confidence. The service sector’s Q3 balances improved for export sales & orders, employment & employment expectations, cashflow, investment in plant & machinery, and both confidence balances. But the service sector’s home balances worsened overall, with a fall in home sales only partially offset by a marginal increase in home orders.
The domestic market
The manufacturing sector’s domestic balances strengthened in Q3. The net balance for home sales rose to +18pc in Q3, from +13pc in Q2, highest since Q2 2005. The net balance for manufacturing home orders improved to +18pc in Q3, from +14pc in Q2, the same as in Q2 2005, and highest equal since Q4 1999. The service sector’s domestic balances were mixed in Q3, but there was a slight overall weakening. The net balance for home sales fell 4 points in Q3, to 24pc. The net balance for home orders rose 1 point in Q3, to +21pc, the same as in Q4 2004 and highest equal since Q3 2004. The service sector’s domestic balances remain stronger than the manufacturing balances, but the gap in favour of services has narrowed.
Export market
The manufacturing sector’s export balances strengthened markedly in Q3. The export sales balance rose 15 points to +34pc, highest since Q2 1995. The Q3 export orders balance rose 13 points to +28pc, the same as in Q4 1995 and highest equal since Q2 1995. The service sector’s export balances also improved in Q3, and were high by historical standards. The balance for export sales increased 3 points to +25pc. The balance for export orders increased 9 points to +21pc.
Employment
The manufacturing employment balance rose 14 points in Q3 to +17pc, highest since Q3 2004. The Q3 employment expectations balance rose 2 points to +11pc. In the service sector, the Q3 employment balance rose 6 points to +24pc, highest equal since Q4 1997. The Q3 employment expectations balance rose 6 points to +30pc, highest equal since Q2 2000.
Investment
The balance of manufacturing firms planning to increase investment in plant and machinery rose 6 points in Q3 to +22pc, highest since Q4 1997. Intentions to invest in training rose 9 points to +23pc. In services, the Q2 balance of firms planning to increase investment in plant and machinery rose 6 point to +22pc, highest since Q4 2000. The balance for intentions to invest in training rose 7 points to +29pc.
Business Confidence
The manufacturing sector’s turnover confidence balance was +49pc in Q3, the same as in Q2. Manufacturing profitability confidence fell markedly in Q3 to +30pc, from +40pc in Q2. The service sector’s turnover confidence balance rose 4 points in Q3, to +58pc, highest equal since Q4 1997. Service profitability confidence rose 13 points in Q3 to +47pc, highest equal since Q1 2004.
Capacity Utilisation
The proportion of manufacturing firms operating at full capacity rose 2 points in Q3 to +41pc. In services, 42pc of firms worked at full capacity in Q3, up 5 points.
Cashflow and Prices
Manufacturing cashflow rose 1 point in Q3 to +8pc. Services cashflow rose 4 points to +17pc. The balance of manufacturing firms reporting pressure to raise prices increased 11 points in Q3 to +32pc, highest since figures are collected in Q2 1997. In services, the balance of firms expecting to raise prices rose 13 points in Q3 to +28pc, highest equal since Q1 2005.
Economic Climate
The Q3 results highlight positive features in the economic climate. But there are worrying aspects. Stronger Q3 balances for exports, employment, and investment indicate that growth has been satisfactory. But the sharp falls in the manufacturing sector’s profitability confidence balance, and the overall weakening in the service sector’s domestic balances, are worrying. The welcome improvement in export balances is partly due to the upturn in the Eurozone. But Eurozone growth is likely to weaken. There are also concerns that the US economy is set to slow sharply, and this will have adverse global effects. Our Q3 survey indicates strong pressures to increase prices, in both manufacturing and services, partly due to higher wages. The Q3 results also show higher rates of capacity utilisation. These pressures are disturbing, because they may add to the clamour for higher interest rates, at a time when global risks are worsening. The UK upturn is still fragile. UK businesses face oppressive regulatory burdens, and concerns over future tax increases threaten confidence.

Wednesday 11th October
GOVERNOR SOFTENING THE GROUND FOR EXPECTED RATE RISE
Commenting on the speech last night by Mervyn King David Frost, Director General of the British Chambers of Commerce, said: "Mervyn King's comments appear to be softening the ground for the expected interest rate rise to 5 per cent next month. The MPC must however make it clear that, if a rise is necessary, five per cent will be a ceiling and a further series of interest rate increases is not on the cards."

Monday 9th October
MANUFACTURING FIGURES HIGHLIGHT GRADUAL RECOVERY
Reacting to today's publication by the Office for National Statistics (ONS) of industrial and manufacturing output figures for August 2006, David Kern, Economic Adviser to the British Chambers of Commerce (BCC), said: "Today's manufacturing figures for August 2006 confirm that a gradual upturn is slowly consolidating and gathering some momentum. Manufacturing output rose by 0.4pc between July and August 2006, broadly as expected. In the three months June-August 2006, manufacturing increased by 0.7pc compared with the previous three months and by 1.2pc compared with the same period a year ago.” "The three-month-on-three-month comparison shows that there were widespread increases in output, with significant increases of 1.8pc in the chemicals and manmade fibres industries and 1.7pc in the machinery and equipment industries." Mr. Kern concluded: "The manufacturing figures remain weak by historical standards and the recovery is still fragile. One key short-term challenge facing the sector is to cope with the consequences of an increasingly likely rise in interest rates later in the year. To minimise any damage to manufacturing (and to business in general) that may result from such a move, the MPC must ensure that, unlike in August, an increase in rates does not come as a shock. The MPC must also make it clear that, if a rise is necessary, five per cent will be a ceiling and a further series of interest rate increases is not on the cards.”

Thursday 5th October
BCC REACTION TO INTEREST RATE DECISION
Commenting on the Bank of England’s interest rate decision Sally Low, Director of Policy and External Affairs at the British Chambers of Commerce, said: "We welcome the MPC's decision to leave interest rates unchanged at 4.75%. The Committee has made the right decision for British business, in the face of continued clamour in some quarters for a further early increase in interest rates. Though CPI inflation rose to 2.5% in August, the fourth month in a row with inflation above the official 2% target, the MPC was wise not be rushed into potentially damaging tightening, before some of the huge uncertainties are resolved. "While we accept that inflationary pressures may have increased to a limited extent in recent months, we believe that worsening global risks (notably worrying signs of slowdown in the US), should be taken fully into account by the MPC before considering tightening policy. Many domestic indicators also support our view that the MPC can afford to wait. "UK GDP growth, though slightly above trend in recent quarters, has been revised down for Q2 2006. The trend in UK unemployment remains firmly upwards, and falls in oil prices will help to reduce inflationary pressures. Moreover, the discovery of an ONS error, which revised down the GDP deflator for Q2 2006 from 3.4% to 2.2%, and reduced nominal GDP growth for Q2 from 6% to 4.8%, further reinforces the arguments against precipitate interest rate increases. Our members still face serious pressures and confidence is fragile."

Thursday 28th September
TRANSPORT IS AN INVESTMENT IMPERATIVE
The British Chambers of Commerce has released a special working group report on the UK’s transport problems which sets out how businesses want to see transport infrastructure improve in the next 30 years. One of the report’s main recommendations is that sustained transport investment be linked to a percentage of GDP at a similar level to the UK’s major competitors and that any investment should form part of a 30 year plan of ongoing improvement. The report also calls for changes to Britain’s arcane planning system to ensure that for major projects planning should be thorough but much shorter and that there should be a requirement for any impact upon the economy to be assessed during the planning and decision-making process. BCC Director General, David Frost, said: “A modern effective transport system is an economic imperative and Government cuts to transport expenditure will inevitably damage wealth and cost jobs. The failures of our transport infrastructure caused by under-investment currently cost British business £15 billion a year.” ”Transport infrastructure development, like energy infrastructure, is of national significance and should therefore be considered along the lines of the current consultation for new nuclear build. A “Statement of Need” should be developed which avoids a planning enquiry except to examine local plans or environmental impacts.” “Our members regularly put transport first or certainly in their top three when asked about their priority policy issues. In a 2004 BCC survey 56pc of respondents said that the transport infrastructure has a major influence on where they locate.” “Capacity problems across the transport infrastructure cause serious congestion. This affects roads, rail and ports and unless further investment is put into the network the country will grind to a halt. Businesses want to see tough measures and innovative solutions, such as road pricing or the active traffic management (ATM) scheme.” The report looks at every aspect of Britain’s transport conundrum and makes a series of recommendations, including: Greater clarity of role and responsibility amongst the national, regional and local decision-making bodies . Regional Economic Strategy and the other regional strategies, including the Regional Spatial Strategy, have different timescales: it is time for better integration of regional strategies and coordination between regional bodies, such as the Regional Assemblies and Regional Development Agencies (RDAs). Better management of current network capacities by demand management; the development of environmentally clean technology; the incentivisation of efficient technology use; and the application of technological expertise to finding solutions that serve the economy and the environment; Long-term national funding that incorporates a mix of central government funding, private investment and other appropriate sources such as road user charging to facilitate planning and implementation of complex long-term transport programmes. This money should be split into two pots that fund a) a strategic national network of roads, rail, ports and airports and b) a regional allocation controlled by regional strategic transport bodies. Ensuring that road pricing schemes are complemented by decent, viable public transport alternatives and a greater proportion of the monies raised from road users hypothecated into investment in the road infrastructure. New rail funding projects should be assessed as quickly as possible to prevent prolonged uncertainty and the resultant damage to businesses. The business community must play an active role in the rail transport debate and it is of great concern that the organisations currently running the railways incorporate no formal mechanisms for business representation. Consideration should also be given to the possibility of tax relief, at source, for season tickets purchased by or through the employer to stimulate modal shift. More info

Wednesday 27th September
MINIMUM WAGE RISES WILL PUSH BUSINESSES TO TIPPING POINT
Commenting on the recent rise in the National Minimum Wage David Frost, Director General of the British Chambers of Commerce, said: "Businesses cannot continue to absorb minimum wage rises that are in excess of average earnings growth in the UK. What we do not want to see is wage pressures becoming the tipping point over which firms have to reduce staffing, cut back on investment and be unable to grow. Future rises may have to be no more than the increase in average earnings to correct some of the adverse effects of recent increases." This week's rise could have serious implications for UK businesses. Employment in distribution, hotels and restaurants has fallen by 55,000 over the year to March 2006. Mr Frost continued, "There are risks of adverse effects in some areas where pay is relatively low. We are concerned that small businesses may find it difficult to cope with the new rates. But we are pleased that the Low Pay Commission will start future wage decisions with no presumption that further increases above average earnings are required."

Monday 25th September 2006
BCC'S REACTION TO GORDON BROWN’S SPEECH
Following today's address to the Labour Party conference by the Chancellor of the Exchequer, Rt Hon Gordon Brown MP, British Chambers of Commerce Director General, David Frost, said: "Today's glimpse of Brown's Britain with progressive social policy at its heart has much merit. Mr Brown must never forget, though, that it is the wealth creating private sector which will fund his aspirations for Britain." "We welcome his focus on skills and education and his commitment to developing environmental industry and technologies. Businesses want to see local empowerment and decision-making but with it must come a new style of leadership in which the voice and views of business must be heard and be at the heart of the local community."

Monday 18th September 2006
Business verdict on the DTI: “could do better”
Businesses have given the future of the DTI a resounding vote of support but voiced concerns over the scope of its remit and how the organisation has met their needs. Just under 90pc of businesses think there is a future need for the DTI, says the British Chambers of Commerce survey, Doing Business in the UK. But the department has attracted widespread criticism for having a lack of focus and being too difficult for businesses to access. Businesses view the two most important objectives for the DTI as championing business interests within government, (73pc) and ensuring a balance between safeguarding employees’ rights and the needs of businesses, (70pc) but in their view the DTI is not representing them strongly enough within government. BCC Director General, David Frost, said: “The message for the DTI is clear: businesses do want a DTI but they believe there is much it needs to do better. It needs to be a far more focussed, leaner department that truly champions businesses’ interests.” “The DTI should see itself as the representative of wealth creation within government, but there is a growing perception that this is not the case as the department fails to provide adequate support to firms.” Firms think that the DTI of the future should focus on small business support, (78pc); representing business interests within government, (74pc); promoting business interests in the European Union, (68pc), export promotion and promoting skills and training, (both 62pc). The survey asked businesses to rate the DTI’s effectiveness on a range of performance indicators. On championing business interests within government nearly two-thirds, (61pc) of businesses think the DTI is either ineffective or very ineffective in championing business interests within government. Just seven per cent of businesses think that the DTI is very effective by this measure; On employers’ second most important objective for the DTI – balancing employment rights and businesses’ interests – the DTI was rated as effective or very effective by 56pc of businesses whereas 43pc believe the DTI is ineffective or very ineffective; Just over half of businesses (52%) think that these should be a priority for the DTI but a similar number (54%) believe it is ineffective/very ineffective in this respect; Firms are divided on the degree to which the DTI is effective at promoting competition and consumer interests: 49pc think it is ineffective or very ineffective whilst 51pc think it is doing a good job. Click here for the QUESTIONNAIRE - DTI & SBS Results - Doing Business in the UK 30 Aug 06

Thursday 7th September 2006
BCC REACTION TO INTEREST RATE DECISION
Commenting on the Bank of England’s interest rate decision Sally Low, Director of Policy & External Affairs, said: "British business is not surprised by the Committee's decision to hold rates. But we are still concerned that last month's rate rise may have damaged British business and urge the MPC to reject the clamour in some quarters for further early rate increases. Even if UK businesses succeed in absorbing the impact of last month's increase, raising rates further at this time would seriously damage business confidence and could well push the recovery into reverse. "There is no need to tighten policy further: the UK labour market remains weak and wage pressures are under control. In the three months to June the number of unemployed people rose by 92,000 over the previous quarter and by 243,000 over the same period a year earlier - a rise of 0.7pc over the year. The annual growth rate in average earnings, excluding bonuses, was 3.9pc in the three months to June 2006 - , well below a level that should give the Bank of England serious cause for concern. CPI inflation fell to 2.4pc in July and with oil prices now below their recent peaks, some of the factors pushing up inflation earlier in the year should subside. "Our members still face serious pressures and confidence is fragile. There are also growing concerns that the US economy is set to slow sharply, with serious global repercussions. Given the acute uncertainties facing UK businesses, we strongly urge the MPC to reject calls for further interest rate increases.

Wednesday 6th September 2006
MANUFACTURING FIGURES SHOW DANGERS OF RAISING INTEREST RATES
Reacting to today's publication by the Office for National Statistics (ONS) of Industrial and Manufacturing Output figures for July 2006, David Kern, Economic Adviser to the British Chambers of Commerce (BCC), said: "Today's manufacturing figures for July 2006 confirm that a gradual manufacturing upturn is underway. But there is a clear risk that further interest rate increases would damage the sector, which is highly dependent on exports. The pound is very strong and higher interest rates would erode export competitiveness at a time when there are growing fears over US and global growth prospects next year." "Manufacturing output rose by 0.2pc between June and July 2006, broadly as expected. In the three months May-July 2006, manufacturing increased by 0.9pc compared with the previous three months and by 1.2pc compared with the same period a year ago. Mr Kern concluded: "The manufacturing figures are still weak by historical standards and the fragile recovery that is now under way needs to be nurtured. Calls for higher interest rates are unjustified and should be forcefully rejected."

Thursday 31st August 2006
AXE MUST FALL ON FAILING SBS
Businesses have had enough of the Government’s amateur approach to supporting small businesses, says the British Chambers of Commerce, and want the Small Business Service (SBS) to be axed. The BCC’s Director General, David Frost, said: “Since the SBS was set up £79.3 million has been ploughed into it. In our view much of that money has been wasted: firms up and down the country have suffered six years of failure on enterprise policy and despite many warm words from a long line of government Ministers tangible support for small firms has been woeful.” Research conducted by the BCC tells the full story of failure and underperformance at the SBS. The organisation is responsible for delivering the Government’s action plan for small business under seven themes, but for six of these, firms believe the SBS has proved virtually ineffective: Building an enterprise culture: 83pc of businesses have seen no improvement and almost a quarter (24pc) have seen a decline in the UK’s enterprise environment; Encouraging a more dynamic start-up market: nearly nine out of ten businesses (86pc) do not feel that a more dynamic start-up market has been encouraged and of these, nearly a third (27pc) believe that the start-up market has worsened. Of those who have used publicly-funded business support, only four in ten businesses (42pc) thought it was relevant to the needs of their business; Building the capability for small business growth: over half of businesses (53pc) think that the capability for small business growth has stayed the same, whilst a third (34pc) think it has worsened; Improving access to finance for small business growth: more than four out of five businesses (83pc) do not believe that it has got easier for small businesses to access finance for growth and a third (32pc) believe it has become more difficult; Encouraging more enterprise in disadvantaged communities and under-represented groups: this is the single area where businesses have seen a noticeable improvement as 30pc of firms believe that enterprise in disadvantaged communities and amongst under-represented groups has been encouraged, resulting in tangible improvements; Improving small businesses’ experience of government services: of the seven action points, this has one of the worst results with 90pc of businesses seeing no improvement in their use of government services, with two out of five (42pc) saying their experience of government services had worsened; and Developing better regulation and policy: the worst performing action point of the seven with 93pc of businesses seeing no improvement in regulation and policy and over half (52pc) believing that it has deteriorated. Mr. Frost said: “It is time to end the cycle of failure and underachievement in supporting small businesses: the SBS does not carry the necessary weight in government to achieve tangible improvements. The conclusion to be drawn from these findings is that businesses’ experience of efforts to help them is not what it should be and radical reform is required.” “Businesses must be able to have confidence in the quality of the support offered to them and know that their needs are given due weight within government. Looking to the long-term, we need to develop regional and local solutions that are business-driven and business-led”, said Mr Frost.

Wednesday 26th July 2006
Business Skills Survey
The Chambers of Commerce in the North West are undertaking a Business Skills Survey. The aim of this survey is to determine the extent to which this issue is affecting your business. Liverpool Chamber of Commerce and Industry urge you to take part in this survey. Click here

Friday 21st July 2006
GDP Growth Economy grows by 0.8% in Q2 2006
GDP rose by 0.8 per cent in the second quarter of 2006, compared with 0.7 per cent in the first quarter. Growth came mainly from services, which increased more strongly than in the previous quarter. Production fell by 0.1 per cent, following a rise of 0.8 per cent in the previous quarter. A 0.5 per cent increase in manufacturing was more than offset by a 3.0 per cent fall in energy extraction and a 2.8 per cent fall in energy supply. Services growth accelerated to 1.0 per cent, following 0.7 per cent growth in the previous quarter. The acceleration in growth comes mainly from distribution, hotels and restaurants and business services and finance. Within distribution, hotels and restaurants the acceleration in growth comes from retail. Distribution, hotels and restaurants rose by 1.2 per cent. Retail, wholesale and hotels and restaurants increased. The most significant increase was in retail. Transport, storage and communication rose by 0.7 per cent. Output rose in land, water and air transport, and in transport support. Output of business services and finance rose by 1.2 per cent. Business services and financial services increased. The largest contribution to growth comes from 'other business services' which includes the activities of lawyers, recruitment agencies and architects and engineers. Government and other services rose by 0.7 per cent. Construction rose by 0.5 per cent, following a rise of 0.9 per cent in the previous quarter.

Monday 27th March 2006
US anger at undervalued Chinese Yuan threatens trade war and world economic slowdown
US senators' could this week vote on imposing a new 27.5% import tax on all Chinese goods, amid rising anger at Beijing's reluctance to appreciate the value of the yuan, which they say is deliberately kept low in order to give Chinese manufacturers and exporters an unfair advantage over the US and the western world. The ongoing row intensified last week after the US ran up an unprecedented trade deficit of more than $800bn last year (1), with more $200bn recorded against China alone. The call for protectionist policies has grown in recent years as the US evaluates one of it's founding principles of an open market with businesses free to trade, against the safety and security of it's citizens. Analysts have warned the tariff could trigger tit-for-tat protectionist measures and have the same affect of the 'Smoot-Hawley' tariffs of 1930, which saw a 60% tax imposed on more than 3,200 products and materials imported into the US. The Act is largely blamed by historians for causing the great depression, which saw 31.3m people unemployed in 1933, and saw conditions of practical starvation in rural communities; conditions immortalised in great works of literature, such as John Steinbeck's 'Grapes of Wrath'.

Friday 24th March 2006
Europe's leaders meet at EU summit during crucial time for Europe's economic development
European leaders will today meet at the EU's annual spring summit at Brussel's aimed at working towards and following up the Lisbon Strategy of 2000 to make "the European Union the most competitive and dynamic knowledge-based economy in the world by 2010, capable of sustainable economic growth with more and better jobs and greater social cohesion". The talks come at a critical time for the EU, with France, Germany and Italy facing high unemployment, and the EU as a whole recording slow growth. High unemployment in France, and in particular youth unemployment, currently at 23%, reached crisis point this week with student protests in a number of French cities erupting into violence and rioting. France is reverting to increased protectionist policies in reaction to it's economic difficulties, with the country's Prime Minister, Dominique de Villepin, championing 'economic patriotism', and calling for 11 'strategic' French business sectors to be shielded from foreign bidders. The policies are likely to be in direct opposition to the EU's historic principles of free movement of people, goods and services throughout the community. EU Protectionism and economic adaptability are likely to form the basis of Europe's relations with the world for the next few years, at world trade talks and G8 and G7 summits. Since the emergence of a new globalised world economy, hundreds of billions of pounds has been added to global growth, with the first decade or so having shown that the advanced industrial nations who were the least prepared, flexible and adaptable to meet this new global phenomenon were the countries who have experienced least growth and most industrial decline. Britain, and in particular its manufacturing sector, has also suffered during this transformation. Peter Mandelson, the EU Trade commissioner, expressed a similar point last week when saying that he wasn't sure whether Europe was witnessing the 'death throes or the birth pangs of protectionism' as the EU came to grips with globalisation... click for more

Thursday 23rd March 2006
Industrial orders fall in Euro-zone and EU25
Euro-zone industrial orders fell by 5.9% in January 2006 compared to December 2005 according to figures released by Eurostat (Statistical Office of the European Communities). Output for the EU25 also fell by 3.8%. For individual member states the highest rises for manufacturing orders were Hungary (35.9%), Poland (32.4%), Sweden (6.3%), Ireland (4.0%) and the Czech Republic (4.0%), while the largest decreases were registered in France (-15.1%), Portugal (-12.6%), Latvia (-3.0%) and Belgium (-1.5%)... click for more

Monday 20th March 2006
Liverpool business makes good start to 2006 with increased sales and job creation
Liverpool business has recorded a buoyant first quarter in 2006, according to the Liverpool Chamber's Quarterly Economic Survey. Businesses responding to the survey, of which there were around 300, recorded a 17% increase in employment levels for the first three months of the year, a figure going against a recent national trend of increased unemployment. Liverpool business also predicted further increases in job creation, with 41% indicating they would be employing additional staff in the next three months. Domestic sales and orders has seen a dramatic improvement since the end of 2005, with companies registering a 15% increase in sales and a 27% increase in orders. Business confidence is also buoyant in the city, with 66% of respondents believing that turnover will increase in the next 12 months, and 50% believing that profitability will. Click to here to read the full report.

Friday 17th March 2006
TUC tells British Chambers of Commerce to stop whingeing about red tape
The Trade Union Congress, an affiliation of 70 unions with almost seven millions members throughout the UK, has called on employers' organisations to stop exaggerating the cost of red tape and to identify specific regulations they would like to see abolished. The TUC report, entitled 'Slaying the Red Tape Myths' hits out at the CBI, the British Chambers of Commerce and the Institute of Directors for saying that red tape and tax burdens are costing British business billions of pounds a year (1). The report cites employers' groups referring to the cost of the minimum wage as being red tape when in fact the actual cost of administrating it is minimal. The report also calls the burden of red tape a 'myth', based on 'spin, smoke and mirrors', used by employers' groups to dissuade the government from improving working standards, business ethics, health and safety, and the environment... click for more

Thursday 16th March 2006
20% of all SME insurance claims are crime related
Business crime rose by 27% in the last quarter of 2005 according to a study by AXA. Liverpool were sixth in the business crime league, behind Middlesbrough, Cardiff, Nottingham, Bradford and leaders Derby. The study finds that while most offenses are low-level, inexpensive crimes such as petty theft and malicious damage, other claims run into tens of thousands of pounds, totalling £721m last year. Liverpool's Business Crime Direct offer a number of services, including crime alerts, and free and independent crime prevention and reduction advice for businesses across Merseyside... click for more

Wednesday 15th March 2006
Liverpool business have a fairly positive image of the European Union
Liverpool's business community have given their views of the European Union in response to a survey conducted by the Liverpool Chamber of Commerce, as part of a region wide survey undertaken by the North West Chamber of Commerce. Businesses taking part were asked a number of questions relating to the EU in terms of image, benefits of membership, the impact of European legislation and the labour market. Business respondents gave a mixed reaction to the image they have of the EU with 44% indicating they had a very positive or a fairly positive image, while 42% had a negative or fairly negative image. Businesses were positive over EU membership, with 52% indicating that the UK has benefited significantly or that EU membership has done more good than harm, while 40% thought that membership has done more harm than good or that the UK has been significantly harmed from EU membership. EU Employment and health & safety legislation have had the largest impact on Liverpool business, while improving the competitiveness of business and developing the internal market (free movement of goods, persons, services and capital) were seen as the most important areas of policy. 69% of businesses in Liverpool welcome workers from new EU member states, with 28% and 20% indicating that the short supply of candidates with the required experience and required skills were the reasons for recruiting migrant workers. Respondents to the survey were from a broad range of sectors, including Engineering and electrical, construction, chemical and pharmaceutical, I.T. and technical, transport and communication, and financial and professional services.
For the results Click here - For the results 'from a Liverpool Perspective' Click here

Tuesday 14th March 2006
Rise in billionaires in developing world widens wealth gap
The number of billionaires in developing countries has risen significantly in the past year according to a Forbes study. For the world's leading developing countries, China's billionaire population has risen to eight, with Brazil's rising to 16 and India's to 23, with a combined wealth of $144bn. A third of the world's poor, those living on a $1 a day or less, live in developing countries, with Brazil, China and India combined having more people living in extreme poverty than in all of Sub-Saharan Africa.

Monday 13th March 2006
Liverpool City Council to 'Champion Business' in Liverpool
Liverpool City Council leader Warren Bradley, at the official launch of the final strategy of the £400,000 City Growth project, is to pledge to be a 'champion of business', as part of the initiative aimed at promoting entrepreneurship and small business in Liverpool. Liverpool City Growth is part of a national initiative aimed at giving the private sector greater influence in local economic development and strategy. Since the project's launch in February of last year, more than 1,000 local businesses have been canvassed and asked their views on how best the city can exploit its business potential... click for more

Friday 10th March 2006
The FSA launches healthy labeling initiative as supermarkets face monopoly inquiry
The Food Standards Agency yesterday launched its 'traffic light' food labeling initiative aimed at giving consumers a clear and simple way of identifying the nutritional value of food products. The system highlights fats, saturates, sugar and salt, and gives each one a colour code identifying content levels: red equals high content; amber, medium; and green, low. The 'traffic light' system is not compulsory and has divided the retail and food industry, with critics calling the scheme simplistic and ignorant of other nutritional values and food contents. Supporters suggest, however, that the labeling could be used in addition to other listings, and point to people's modern, hectic, lifestyles as preventing them from scrutinising the ingredients of every food item, and that when they do, they often look for calories and fat contents while ignoring sugar and salt levels. Britain's four big supermarkets, Tesco, Asda, Sainsbury's and Morrisons, meanwhile, are to face a full investigation by the competition commission over their dominance of the UK grocery market. Critics have accused them of driving small traders out of business by price fixing, though consumers have benefited, as food prices have fallen over the past six years due to competition between the main supermarkets... click for more

Thursday 9th March 2006
BAE Systems Airbus sale raises questions over Broughton's wing production
BAE Systems are in talks with the European aerospace and defence company over selling their 20% stake in Airbus for €3.5bn (£2.4bn). BAE are thought to be looking to use the proceeds to fund acquisitions in the US where it is the Pentagon's fifth-largest arms supplier. Airbus currently employs 12,000 people in the UK, including 6,000 at Broughton, Cheshire, where the plant makes wings for the fleet and the new superjumbo A380. The production of wings is a lucrative business with European plants vying to win contracts. Airbus's colossal A380 is truly European in its production, with its cockpit made in Meaulte, France; its front and aft fuselage in Hamburg, Germany; its engines in the US and UK; its wings in Broughton, Cheshire; its central fuselage in St Nazaire, France; and its tailcone in Getafe, Spain... click for more

Wednesday 8th March 2006
EU launches new strategy on securing future European energy supplies
The European Commission today launches a green paper aimed at coordinating and increasing cooperation on energy. The bill will look at ways of reducing Europe's dependency on energy imports, which is currently approaching 90% of all oil and gas, and provide increased security for its supply. Measures proposed by the bill include; a clear policy on diversifying natural gas supplies; new infrastructure, such as terminals for liquefied natural gas; new pipelines from the Caspian region and North Africa; moves to create a single electricity and gas market; a policy on gas storage; a single European electricity grid; a broad debate on the use of nuclear power; greater efforts to restrict fuel consumption and develop alternative energies; and more open and competitive energy markets. The bill is also aimed at giving member states more weight in negotiating future energy deals from suppliers such as Russia, who control the vast majority of gas piped into Europe. Vladimir Putin, Russia's Premier, has indicated that energy supply and security will be the number topic of debate at this years G8 Summit in St. Petersburg, an area in which Russia carries global weight and influence.

Tuesday 7th March 2006
Michael Heseltine calls Liverpool's regeneration the 'most exciting urban renaissance since Victorian times'
Michael Heseltine, the former Minister for Merseyside, has hailed Liverpool's regeneration as the 'most exciting urban renaissance since Victorian times'. Lord Heseltine, visiting Liverpool with Conservative leader David Cameron, as part of a Conservative initiative on inner city regeneration, said the city had been transformed since its troubled times of the 1970's and 1980's, and had captured much of the spirit of the 17th and 18th centuries when Liverpool became the 'gateway to the Empire and the New World. During this time the city had extensive trade links with North America, the West Indies, Africa and Europe, though Liverpool's strong entrepreneurial and commercial spirit of time is tainted by its involvement in the slave trade between Africa and North America. Mr Helestine has been appointed chairman of the Conservative party's taskforce on inner city regeneration, in an attempt to bolster urban regeneration, which has "lost its drive" and lacks "leadership" in Liverpool under Labour... click for more

Monday 6th March 2006
World trade talks enter crucial week
Peter Mandelson, the EU trade commissioner, is to hold talks on Friday with six of the largest developed and developing countries in an attempt to reach agreement on world trade. Campaigner's have criticized the move for excluding poorer countries, fearing that the representatives for the developing world, Brazil and India, will make concessions which the poorer countries will feel obliged to sign (1). The talks come at a critical time for globalization and the advent for free and open markets, with a number of recent international disputes resulting in an air of protectionist fever. The acquisition of P&O by Dubai Ports World caused a storm in the US over questions of national security over P&O run US ports, while attempted EU interstate takeovers also caused a backlash of people questioning the sale of national institutions. Britain's sale of 02, Pilkington and possibly BOC and BAA, together with P&O, caused little more than a murmur in comparison. Calls for market protection has also risen in the US in response to China's colossal manufacturing and export growth, which the US claims is occurring under artificial conditions with Beijing deliberately under valuing it's currency (2). The EU also moved to protect manufacturing by imposing tariffs on cheap Chinese shoe exports (3).

Friday 3rd March 2006
Eurozone interest rates rise as economy strengthens
The European Central Bank yesterday increased interest rates to 2.5% following an increase in eurozone inflation to 2.3%, above the banks self imposed ceiling rate of 2.0%. The rate is still far below the 4.5% rate prevalent in the UK and US, and the increase is designed to curb further inflationary pressure that is fueled by a strengthening economy, in particular exports, and rising house prices in member states. Predicting the effect of interest rate rises is problematical however, and with low consumer spending, unemployment at 8.3%, and sluggish member state growth, the effect could be detrimental to job creation and growth.

Thursday 2nd March 2006
International terrorism tops poll as most important issue facing UK
Foreign affairs and international terrorism are the most important issues facing the UK according to a recent Mori poll. The poll, conducted among 2,000 adults between the 16th and 20th of February, found that 34% of respondents thought defence, foreign affairs and international terrorism were the most important issue facing the UK, followed by the NHS and hospitals (33%). Third on the list was race relations and immigration with 30%, followed by law and order with 28%. 11% of those polled thought the economy was the most important, with 9% thinking unemployment, and 8% concerned most with the environment.

Wednesday 1st March 2006
Merseyside's economy continues to improve but work still needs to be done
Merseyside's economy continues to improve according to The Mersey Partnership's "Merseyside Economic Review 2006", but the region still lags behind other regions and the UK in certain areas. The figures reveal Merseyside's overall wealth increased by 5.9% in 2005, compared to 5.4% for the North West and 5.6% for the UK during the same period. The region has also created 49,000 new jobs in the past five years, increasing the employment rate to 68.1%. Work still needs to be done, however, as the region's GDP per capita (average income) is still only 73% of the European Union's average, despite 10 years of EU Objective One status that has seen investment and regeneration in the region worth £2.2bn since 2000, equating to £1560 per person. Regions are eligible for European Union Objective One status when their average GDP income (per capita) is 75% or below the EU average... click for more