News

Miscellaneous Business News - January 2010

Revised Guidelines on Supervisory Disclosure published by CEBS
On 28 January 2010, the Committee of European Banking Supervisors (CEBS) published its revised Guidelines on Supervisory Disclosure.

The objective of supervisory disclosures is to make available to all interested parties, such as credit institutions and investment firms, any information relating to prudential rules and supervisory criteria without interpreting a =or validating such information. The framework has been adopted by both EU and national levels since 2007. The new guidelines aim to increase the current framework to the areas of Mergers & Acquisitions, Securitisation, Credit Risk Mitigation, National discretions, Pillar 2 and 3.

CEBS believes the framework will enhance the transparency, effectiveness and consistency of supervision. Opinions gathered from the public consultation (CP29) and a public hearing held in October 2009 have proved useful in the revision of the guidelines.

The new guidelines will be adopted by CEBS and the national supervisors by 31 March 2010, with the exception of the disclosures of guidelines and methodologies regarding the securitisation exposures to review compliance with paragraphs 1 to 7 of Article 122a of the CRD II which need to be adopted by 31 December 2010 at the latest.
Source: http://www.iasplus.com/europe/1001cebsdisclosureguidelinespr.pdf
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Public attitudes towards climate change and the impact of transport
On 28 January 2010, the Department for Transport published a report summarising people's attitudes towards climate change in relation to transport, and to what extent attitudes have changed over time. The report is based on a survey module included in the Office for National Statistics' Opinions (Omnibus) survey and covers the following issues:

levels of concern about the environment and climate change;
knowledge about the causes of climate change, including the contribution of transport;
knowledge about the consequences of climate change and views on the potential for behavioural change to reduce the impacts;
levels of support for a range of policy options to reduce transport emissions and the extent to which concern about climate change has the potential to influence travel behaviour.

The ONS survey is a random probability survey of adults aged 16 and over living in private households in Great Britain. Overall, the findings from the 2009 Opinions climate change survey suggest little change from last year, indicating that people's attitudes towards climate change in relation to transport have essentially remained unchanged.
Detailed information and Source: http://www.dft.gov.uk/adobepdf/162469/221412/221513/4387741/climatechange.pdf
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Fathers to get six months paternity leave
On 27 January 2010, the Government announced new paternity regulations that will allow fathers to take up to six months off on paternity leave while their baby's mother returns to work.

The regulations will mean:

Fathers will be entitled to up to six months extra leave, which can be taken once the mother has returned to work;
This new provision will be available during the second six months of the child's life, giving parents the option of dividing a period of paid leave entitlement between them
Some of the leave may be paid if taken during the mother's 39 week maternity pay period. This would be paid at the same rate as Statutory Maternity Pay (currently £123.06);
Parents will be required to "self certify" by providing details of their eligibility to their employer. Employers and HMRC will both be able to carry out further checks of entitlement if necessary.

The new rulings will mean that fathers will have a legal right to take the place of the mother at home for the last three months of her nine-month maternity break, during which time they would be eligible to statutory government pay of £123 a week. Subsequently they can take an additional three months off unpaid, amounting to a combined family total of 12 months of parental leave. Currently, fathers are only entitled to two weeks of paternity leave when their child is born.

The measures have been brought about to allow mothers with a greater earning capacity than their partners to return to work earlier. Government statistics show that over 60 percent of working mothers who give birth return to work;
The changes will come into force in April 2011 and apply to children born after that date. Ministers expect no more than eight percent of parents to use the new flexible rules and therefore the effect to businesses will be minimal;
After the poor level of recovery recorded for Q4 of 2009 in recently released figures, the economy is still in a very fragile condition and business groups are expected to be infuriated with yet more regulations being introduced at this stage of the UK's economic recovery.

The British Chambers of Commerce (BCC) pointed out that the new measure would be one of eight extra costs to businesses already planned for next year. In total, business leaders estimate that red tape and planned increases in national insurance will cost £25.6billion over the next four years. £14 billion will come from employer National Insurance contributions which are due to be increased by 1 percent from April 2011.

Between April 2010 and April 2014, there is a raft of planned changes in the pipeline, with no less than eight major changes in 2011 alone.

The most costly regulations planned include:

2010: The Equality Bill will have a one-off cost to business of £190m
2011: The Agency Workers Directive will have an annual recurring cost to business of £1.5bn
2012: Pensions Reform will have an annual recurring cost to business of £4.8bn

The BCC argues that the crippling extra costs support their campaign for a three-year moratorium on new employment laws in the UK which would give time for planned regulations to bed-in, promote job creation, and help drive economic recovery. They are also urging the UK government to lead a campaign for an EU-wide moratorium.
Source: http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=410677&SubjectId=2
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Farm incomes
The Department for Environment, Food and Rural Affairs (Defra) produces two measures of farm income: Total Income from Farming and Farm Business Income. Statistics were released on 28 January 2010.

Total Income from Farming is income generated by production within the agriculture industry, including subsidies, and represents business profits plus remuneration for work done by owners and other unpaid workers. It is designed to show the performance of the whole of the agricultural industry.

Farm Business Income represents the financial return to all unpaid labour and on their capital invested in the farm business, including land and buildings. It is designed to compare performance across different types of farming.

There are differences in timings and methods between the two measures, meaning that they are not directly comparable.
Statistics notices:
Latest Release: (Total Income from Farming 2009 and Farm Business Income 2009-10. Published 28 January 2010)
Source: https://statistics.defra.gov.uk/esg/farmincomesns.htm
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Farm Diversification in England: Results from the Farm Business Survey, 2008/09
On 28 January 2010, the Department for Environment, Food and Rural Affairs (Defra) published the final estimates of farm diversification from the 2008/09 Farm Business Survey, which covers the 2008 harvest:

The position of agriculture in the UK economy is changing. A possible and rational response to these changing economic circumstances is for farmers to seek to enhance their household income from sources other than conventional farming production through diversifying their business activities;
Diversification is widely thought to offer considerable scope for improving the economic viability of many farm businesses. Many farm diversification activities can also provide benefits for the wider rural economy and community by, for example, encouraging and providing additional job opportunities.

The key points from this release are:

51 percent of farms had diversified activity in 2008/09; the percentage of farms with diversification other than letting out buildings was 28 percent in 2008/09, unchanged from 2007/08;
Since 2003, the overall percentage of farms with diversified activities has remained stable at around 50 percent, but the percentage of farms which are carrying out activities other than letting buildings has increased from 18 percent in 2003 to 28 percent in 2008;
Total income from diversification was £300 million in 2008/09; but this is not comparable to last year's figure due to changes in methodology for allocating fixed costs to the different sections of the farm business, including the diversification enterprises. Diversified enterprises generated 10 percent of the total income of farm businesses in 2008/09;
For 17 percent of farms which had diversified activity, the income from their diversified enterprise exceeds the income from the remainder of the farm business in 2008/09;
The dominant type of diversified enterprise is letting out buildings for non-farming use; 35 percent of farms do this and letting out buildings generates 76 percent of total diversified income and 46 percent of total diversified output;
About 9 percent of diversifying farms discontinued their diversified enterprises in 2008/09 and 9 percent started diversifying for the first time;
55 percent of diversified enterprises have an annual output of less than £10,000; 11 percent of diversified enterprises have an annual output of £50,000 or more;
There are some significant regional variations; 75percent of farms in the South East have diversified enterprises but only 40 percent of farms in the West Midlands.

Full details of the latest release at: https://statistics.defra.gov.uk/esg/statnot/Divers10.pdf
Source: https://statistics.defra.gov.uk/esg/Diversns.htm
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Land Use Change Statistics (England) 2008 - provisional estimates (January 2010)
The latest national statistics on Land Use Change were released by the National Office for Statistics on 28 January 2010. Statistics in this release present provisional figures on Land Use Change in England.

Land Use Change Statistics (LUCS) are annual data. This release provides estimates for 2008 of changes on previously-developed land and the average density of new dwellings. For some topics (see below) 2008 data are not yet robust and so the latest robust data available is presented.

In 2008, on a provisional estimate:

80 per cent of dwellings (including conversions) were built on previously-developed land, compared to 77 per cent in 2007;
new dwellings were built at an average density of 43 dwellings per hectare, unchanged from 43 dwellings per hectare in 2007;
2 per cent of dwellings were built within the Green Belt (unchanged since 2004) and 7 per cent of land changing to residential use (from any use) was within the Green Belt (an increase from 5 per cent in 2007);
9 per cent of dwellings were built within areas of high flood risk and 6 per cent of land changing to residential use was within areas of high flood risk.

Land Use Change Statistics (LUCS) are annual data. Data are published quarterly, with three of the four releases each year containing updated data. Different series are updated at different times in the year and have different years as their most recent year; this is because series are only published when they are deemed robust enough. The full set of Land Use Change Statistics Live Tables is available at: Land Use Change Statistics Live Tables.
Source: Communities and Local Government
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Life Sciences 2010: Delivering the Blueprint
On 28 January 2010, the Government's Office for Life Sciences published Life Sciences 2010: Delivering the Blueprint.

The Life Sciences Industry is a world-leading, high-tech industry that will be vital to Britain's future economy. Working in collaboration with academia and the NHS, the Life Sciences industry develops innovative medicines and medical technologies that bring benefits to patients here and around the world. It is a strong driver of economic growth and provides highly-skilled employment.

The publication sets out the key actions to improve the environment for Life Sciences in the UK:

UK Life Sciences Super Cluster
Patent Box
RegenMed programme of investment
Innovation Pass
NHS Life Sciences Innovation Delivery Board
Industry and Higher Education Forum
Accreditation of bioscience degrees
Life Sciences Business and Leadership Programme
UK Innovation Investment Fund
Life Sciences marketing programme

Source and further information: Life Sciences 2010
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AA index shows no sign of car insurance premium let-up
The British Insurance Premium Index has released figures which show that car insurance premiums are rising at their fastest rate for nearly a decade and increased by more than 1% per month over the last quarter of 2009. During the second quarter of 2009, the average premium for an annual comprehensive car insurance policy rose by 3.5 percent to £778.13, and 11 percent for the year ending June 2009.

The results are based on the average quoted premiums from 96 car insurers, brokers and insurance schemes across a representative basket of 1,000 'customers' throughout the UK.

Whilst price competition is encouraged by comparison websites, customers are fighting rising costs and are being lured by cheaper quotes but these offer lower levels of cover with high excesses.

Unfortunately, although the number of accident levels in the UK has been falling, the trend of personal injury claims and fraudulent claims, together with the number of uninsured drivers on the roads has led to premiums being increased to compensate, with young drivers being the most affected. The latest AA British Insurance Premium Index saw premiums for car insurance rise by 7 percent during the fourth quarter of 2009, the fastest rise since it records began in 1994. The average yearly premium for comprehensive car cover now sits at around £ 1,000, a rise of 18 percent over the year.

In a similar fashion, home buildings insurance premiums continue to rise, according to the survey.

The survey tracks the movement of premiums quoted from 79 insurers, brokers and schemes for a basket of 750 UK home insurance 'customers', with the average quoted premium for an annual buildings insurance policy rising for the sixth successive quarter to £223.92, a 2.5 percent rise over the past quarter.

In contrast, the average quote for home contents insurance fell by 3.2 percent to £122.34.

Insurers are becoming increasingly worried by the effects of climate change, for example flooding, and are factoring this in to their policy prices.

Home contents insurance is bucking the trend, with premiums falling slightly as the level of theft decreases and insurers have a better method of realistic assessment.
Source: The AA
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-----------------------------------------------------------------------------------------------------------------------------------------Councils shouldn't cut out third sector in efficiency drive
On 27 January 2010, the Communities and Local Government Secretary said that Councils should consider the unique skills and benefits the third sector has to offer when improving local public services. In a keynote speech to the New Local Government Network, Mr Denham said councils shouldn't ignore the social outcomes the third sector can provide such as jobs for the workless or better services, in the stampede the hunt down the cheapest deal.

Mr Denham will shortly be meeting with representatives from local government and the third sector to discuss the issue and look at how to ensure the third sector has the opportunity to play its part in the big issue of public service reform locally.
Source and further details at: http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=410649&SubjectId=2
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National Equality Panel
On 27 January 2010, the Independent National Equality Panel released a report which investigated the relationships between the distributions of various kinds of economic outcome on the one hand and people's characteristics and circumstances on the other.

The Independent National Equality Panel (INEP) was set up in October 2008 at the invitation of the Rt. Hon. Harriet Harman MP, Minister for Women and Equality. The report addresses questions such as how far up or down do people from different backgrounds typically come in the distributions of earnings, income or wealth?

Specifically, the outcomes examined were:

educational outcomes, including the range of achievement of young people at 16 and the highest educational qualifications of adults;
employment status of the adult population;
earnings of those in paid employment, both hourly wages and weekly earnings;
individual incomes, received by each adult in his or her own right from all sources, both before and after deducting direct taxes;
incomes calculated from the total receipts of the household of which someone is a member, adjusted for the size of the household and after allowing for benefits and direct taxes - known as 'equivalent net income';
wealth - the stock of assets of households taking the form of financial or housing assets, including private pension rights.

In the main report, INEP presents information on the distributions of these outcomes for the population as a whole. Where possible they indicate how they have changed in the last decade or more, and how the UK compares with other industrialised countries. But the main focus is on the position of different social groups within the distributions of each outcome. NEP shows breakdowns relating to gender, age, ethnicity, religion or belief, disability status, sexual orientation, socio-economic class, housing tenure, nation or region, and level of deprivation in the neighbourhood. The report also examines how outcomes have changed over time and how they develop across the life cycle. At the end of the report, they set out the implications of their findings for the development of policy.

In the summary INEP highlight and illustrate some of our key findings and suggest the challenges they pose for the development of policy. The 6-page Executive Summary gives a short version of the report's main findings.
The full report, summary and executive summary are available to download at: http://www.equalities.gov.uk/national_equality_panel.aspx
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Gap between rich and poor widens
A government report published on 27 January 2010 showed that the gap between rich and poor in the UK is wider now than 40 years ago. The National Equality Panel, set up in October 2008, found that in the pay and employment fields there continue to be deep-rooted and systemic differences between men and women and minority groups.

It added that neighbourhood renewal, taxes and education were all areas where a 'sustained and focused' policy action needed to be applied to ensure inequality did not deepen.

The report found that apparent discrimination against people from ethnic minorities across the board. They were less likely to be in paid work than white British men and women.

It also found a disparity between women up to the age of 44 and men, finding that men were still being paid up to 21 percent more per hour, despite women having better qualifications.

It was when the panel looked at different social groups that the greatest differences were found.

Women, many working part-time, were earning less than £7.20 an hour, while the national average was £9.90.

The study found that factors such as job type and level of income that a parent had could have a cumulative effect throughout a person's life, influencing life-choices and decisions.

By retirement, the difference between rich and poor has the potential to be huge.

Assets were found to be wildly varied, with the panel pointing out that half of those who have worked in the top professions have net assets worth more than £900,000. By contrast, a 10th of those who have had unskilled jobs have property, savings and possessions worth less than £8,000.
Source: http://news.bbc.co.uk/1/hi/business/8481534.stm
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Business Rates: Transitional relief scheme for 2010
The Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2009, which give effect to the transitional relief scheme following the 2010 business rates revaluation in England, came into force on 17 December 2009:

The scheme phases in the impact of rate increases on the minority of business properties in England that would otherwise see significant rises in their bills following revaluation;
Business rates are paid by occupiers (or, in the case of empty properties, owners) of most non-domestic properties;
Revaluation of business rates takes place every five years and the next revaluation will take effect from1 April 2010, based upon values at 1 April 2008.

Since 1990, the Government in England has phased in changes in rates bills arising from each revaluation. Transitional arrangements aim to:

Allow business ratepayers time to adjust to large increases in bills as a result of the revaluation;
Ensure that, as far as is practicable, the scheme is self financing over the life of the rating list.

The 2009 Regulations, which came into force on 17 December 2009, give effect to the transitional relief scheme for the 2010 revaluation and set out the caps on increases and reductions in bills for 2010/11 to 2014/15. There are different caps for small and large properties.

Caps for small properties
Small properties are those with a rateable value of below £18,000 (£25,500 in Greater London) as at 1 April 2010. The cap on increases for small properties is as follows:

5% in 2010/11;
7.5% in 2011/12;
10% in 2012/13; and
15% in 2013/14 and 2014/15.

The cap on reductions for small properties is:

20% in 2010/11;
30% in 2011/12;
35% in 2012/13; and
55% in 2013/14 and 2014/15.

Caps for large properties
Large properties are those with a rateable value of £18,000 (£25,500 in Greater London) or more as at 1 April 2010. The cap on increases for large properties is:

12.5% in 2010/11;
17.5% in 2011/12;
20% in 2012/13; and
25% in 2013/14 and 2014/15.

The cap on reductions for large properties is:

4.6% in 2010/11;
6.7% in 2011/12;
7% in 2012/13; and
13% in 2013/14 and 2014/15.

The Regulations are available on OPSI at: http://www.opsi.gov.uk/si/si2009/pdf/uksi_20093343_en.pdf
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BIS economics and social research strategy 2009-10
On 25 January 2010, the Department for Business, Innovation & Skills (BIS) published its economics and social research strategy 2009-10: an overview of economic and social research, which:

consolidates existing and ongoing research to ensure that it aligns with the Department's key policy objectives;
Provides an overall picture of the Department's economics research in order to identify potential gaps in the evidence base; and
Also demonstrates that the Department is focused on its longer term objectives whilst responding to more immediate challenges posed by the current economic situation.

Source: http://www.berr.gov.uk/files/file54297.pdf
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Information Tribunal is abolished as new service takes charge
The appeals process for freedom of information and data protection cases changes from today as the previous structure is absorbed into a wider tribunals' service.

The Information Commissioner's Office (ICO) is responsible for monitoring organisations' compliance with freedom of information and data protection laws. Appeals against its ruling have until now gone through the Information Tribunal. From 18 January 2010, the Information Tribunal has been subsumed into the General Regulatory Chamber (GRC), part of a unified tribunals service. The unification of tribunals' services is part of a Government plan to centralise tribunal activity. Tribunals covering tax and property issues already form a part of the service.

Other Tribunals becoming part of the GRC include the Gambling Appeals Tribunal; the Claims Management Tribunal; the Immigration Services Tribunal; and the Family Health Services Appeal Authority.

The move involves a change to the structure of appeals against ICO decisions. A first tier tribunal will hear initial cases but it will be possible to appeal these to an Upper Tribunal's Administrative Appeals chamber.
Read full article at: OUT-LAW News, 18/01/2010
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Vehicle output increase in December 2009
Just under one million cars were made in the UK last year, according to the Society of Motor Manufacturers and Traders (SMMT) report of 22 January 2010.

Showing the biggest rise since May 1976, car output was up 58.5 percent in December 2009. Commercial vehicle output also rose for the first time in 17 months. Overall statistics for 2009 were markedly less than the previous year.

The results promised a greater level of stability for global automotive markets, following the recession.
Source: The Society of Motor Manufacturers and Traders Limited (SMMT)
Full report available at: http://lib.smmt.co.uk/articles/news/News/Dec%2009-UKProd_WEB.doc
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FPB advocates fair play on music at work laws
An ombudsman has been created to deal with complaints from businesses who think they may have been unfairly treated by the Performing Rights Society (PRS) in relation to listening to music in the workplace.

On 21 January 2010, the Forum of Private Business (FPB) reported that many of their members had no idea the service existed at all. Under a law that was introduced in July 2009, small business owners have to pay if their staff or customers are able to listen to music in the workplace. This covers a range of formats, including hold music recorded on telephones. If only one person can hear the radio, there is no need for a licence.

Many are paying hundreds of pounds for a licence so they can legally play music at work. With the introduction of the ombudsman, they will now be able to complain if they believe they have been treated unfairly.

The creation of the ombudsman follows a consultation into the new PRS code of practice after a growing number of complaints about the organisation, including rudeness and inexplicable price increases.

The FPB expressed concerns that the PRS website was poorly constructed and confusing, with over 40 price tariffs for purchasing a licence. Also it has had reports from its members that often PRS staff has little or no understanding of the tariffs themselves, leading to frustration and anger.

FPB members have also reported rudeness and aggression when PRS staff has cold-called to check on listening habits of businesses and assess the need for a licence.

An additional issue is the existence of another organisation called Phonographic Performance Ltd, from whom a licence may be required.
The PRS for Music Ombudsman can be found at:
http://www.prsformusic-ombudsman.org/index.html~
The Phonographic Performance Ltd can be found at: http://www.ppluk.com/
Source: Forum of Private Business (FPB)
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ABI calls for zero tolerance policy on fraud
Following the publication on 22 January 2010 of the National Fraud Authority Annual Fraud Indicator, which has shown that insurance fraud costs the UK over £30 billion annually, there have been calls for zero tolerance across all agencies.

Nick Starling, the Director of General Insurance and Health for the Association of British Insurers (ABI), expressed dismay at the rising levels of dishonest insurance claims which costs the average consumer an additional £44 a year for their general household needs. He has called for a zero tolerance policy to be adopted by all agencies to help detect, tackle and reduce fraud.

The Insurance Fraud Bureau (IFB), set up in 2006 to combat organised insurance fraud, working in unison with law enforcement agencies, has been instrumental in over 300 arrests. John Beadle, a member of the IFB board, pledged to continue their drive to reduce fraud and urged individuals to be active in reporting any suspicions to the free and confidential Cheatline on 0800 328 2550, or report online at www.insurancefraudbueau.org/report.
Source: Association of British Insurers (ABI) News Release
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Better access to official data
The founder of the world-wide-web has unveiled his venture for the UK government, which offers the public better access to official data. The new website, http://data.gov.uk/ offers access to public sector data, ranging from traffic statistics to crime figures, for private or commercial use.

The website was developed by Sir Tim Berners-Lee, founder of the web, and Professor Nigel Shadbolt of the University of Southampton. It has followed a lead set by the US government's http://www.data.gov/ project, and has been built with semantic web technology, which will make it possible to draw together data into links and threads.

The target is to kickstart a new wave of services that find novel ways to make use of the wealth of government data but it needs to be:

easy to find;
easy to licence; and
easy to re-use.

A test version of the website has been running since September 2009, with more than 2,400 developers registering to test the site and provide feedback. So far, 10 applications have been created using the data feeds, including PlanningAlerts, a free service that searches local authority planning websites looking for planning applications.
Sources: Various
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'Train to Gain' scheme under attack
On 21 January 20, the government's 'Train To Gain' scheme came under attack from a committee of MPs. The group criticised the scheme as having been too ambitious and mismanaged. They also claim that expectations of demand were overinflated. A report published by Policy Exchange says the UK's current skills policy is centrally driven and too focused on meeting government qualifications targets rather than delivering the skills that students, employers and the economy need.

Aimed at increasing workers' skills, the scheme came with a multimillion-pound price tag.

The Public Accounts Committee reported that around 5 percent of the UK's workforce had taken advantage of the scheme, with support given to 1.4 million learners by last summer, and management of the scheme controlled by the Learning and Skills Council, which comes under Lord Mandelson's Business Department.

With just 50 percent of employers who used the scheme saying that they would have found similar training independently elsewhere, the first two years saw it under spend by £151 million against a budget of £747 million from public subsidy. The third year saw demand outstrip capability to provide support, due in part to the recession and widened eligibility, and employers are now being turned away.

Skills Minister Kevin Brennan pledged continued commitment to the programme, stating that business productivity and employee skills have both been improved as a result of the scheme and that this would aid the economy.
Source: The Independent and BBC News and Telegraph and TES Connect
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Increase in People Achieving High-Level Apprenticeships
On 21 January 2010, the Department for Business, Innovation and Skills (BIS) announced that the number of people achieving an advanced level Apprenticeship has increased by approximately a third. The provisional data released by BIS shows that an extra 2,700 people completed their advanced Apprenticeship, which is the equivalent of two A Levels, in the first three months of the 2009/10 academic year compared to the same period in 2008/09. This is an increase from 9,700 to 12,400.

'Skills for Growth' - the national skills strategy - sets out the Government's ambitions to create a modern class of technicians to secure the UK's economic future and drive growth, and to boost the numbers of advanced Apprenticeships for young adults aged 19-30.

The provisional data also shows:

There were 95,800 apprenticeship starts in the first quarter of the 2009/10 academic year;
Overall, there were 36,500 apprenticeship framework achievements in the first quarter of the 2009/10 academic year;
Learners started 146,300 Train to Gain courses in the first quarter of the 2009/10 academic year;
Learners achieved 111,600 Train to Gain qualifications in the first quarter of the 2009/10 academic year;
Learners have started over 1.54 million Train to Gain courses since the scheme was launched in April 2006, and achieved over 960 thousand qualifications through Train to Gain.

Source: BIS Press Release
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Support for All: the Families and Relationships Green Paper
Issued in January 2010, this Green Paper sets out a wide range of measures to support all families as they bring up their children and to help cope with times of stress and difficulty. The proposals recognise that while all families need some help, there are families in our society with complex needs and others who require additional - and sometimes non-negotiable - support.

The Paper's proposals aim to influence factors that can strengthen or weaken family life, such as the choices available about balancing employment with bringing up children; and how welcoming and accessible public services are to families of all kinds.

The Paper focuses mostly on supporting family relationships by enabling families to help themselves. It also considers the position of children and other family members when family relationships have broken down.

Some of the policy proposals can be implemented straight away; others are for consultation or will take longer to put into place.

For the full Green Paper: Support for All
Source: Department for Children, Schools and Families
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Farm Rents
A review was carried out in 2009, in consultation with stakeholders, to determine the best source of farm rents data in the Department for Environment, Food and Rural Affairs (Defra). It concluded that the Farm Business Survey should become the main source of data and that the Tenanted Land Survey (the previous source of rent data) should be discontinued. Full details of the review can be found via the 'Farm rents data source review' link below.

The latest release provides details of average rents paid under Full Agricultural Tenancies, Farm Business Tenancies and Seasonal agreements for 2004 to 2008 and the land area covered by these agreements.

The latest National Statistics produced by Defra showing estimates of farm rents from the Farm Business Survey (FBS) were released on 21 January 2010. This release shows estimates of average rents paid under Full Agricultural Tenancies, Farm Business Tenancies and Seasonal agreements (those of less than 12 months) for 2004 to 2008 and the area of land covered by these agreements.

The data are collected through the Farm Business Survey. Throughout this release the results from the 2008/09 FBS are referred to as the 2008 results.

The key results for 2008 are given below:

Full Agricultural Tenancy (FAT) agreements: In 2008, the price of full agricultural tenancy (FAT) agreements increased by 5.1% to £136/ha compared with £130/ha in 2007. The average rent price for dairy farms continued to rise in 2008 to £167/ha, showing an increase of 5.2% on 2007. The average rent for cattle and sheep farms in lowland areas also saw an increase for the second consecutive year, increasing from £106/ha in 2006 to £123/ha in 2008.
Farm Business Tenancy (FBT) agreements: Farm business tenancy (FBT) agreements also increased in 2008 with average rent prices rising by 5.4% to £160/ha. This increase was largely due to an 11.4% rise in the price of cattle and sheep farms in lowland areas and a 9.8% increase in the average rent of general cropping farms.
Seasonal agreements: Seasonal agreements saw a decrease in rent prices in 2008, with average rents dropping from £117/ha in 2007 to £107/ha in 2008.

Source: UK National Statistics and Defra
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ICAEW guide: Recovering from the Recession
On 21 January 2010, the Institute of Chartered Accountants in England and Wales (ICAEW) published a new guide to help businesses recover from the economic downturn.

The guide, which sets out seven strategies, is aimed at helping businesses succeed in 2010. As the economy recovers, it encourages businesses to think about not just surviving but grasping new opportunities as things improve.

Titled 'From Survival to Sustainability', it has guidelines showing how to take advantage of the increase in both consumer and business confidence. The guide is suitable for businesses of all sizes across all sectors of the economy. It is geared towards companies of all sizes, working across all sectors of the economy and provides practical help and topics to discuss with staff and advisers.

The seven strategies outlined in the guide are:

Be ready for the upturn
Plan ahead
Look to new markets
Manage your cash and secure your funding
Have the right team in place
Build a sustainable business
Understand and manage the risks in the new environment

Source: Institute of Chartered Accountants in England and Wales (ICAEW)
To download a copy of the guide, go to: www.icaew.com/economicrecovery
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EU Dairy Fund Consultation launched
On 20 January 2010, the Department for Environment Food and Rural Affairs (Defra) issued a consultation aimed at dairy farmers who are being asked for their views (by 17/2/2010) on how best to distribute England's £16m (€18m) share of the EU Dairy Fund. The fund is intended to help farmers who have been most affected by changes in demand and prices over the last year.

Following discussions with the farming industry, the consultation presents two options for providing help to farmers, keeping administrative costs to a minimum, and supporting a competitive dairy sector. The suggested options for distributing the fund are:

a direct payment per litre of production from October 2008 to September 2009; or
a payment per litre for the first 100,000 litres of production, with an additional payment per litre over 100,000 litres from October 2008 to September 2009.

Source: EU Dairy Fund Consultation
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Bank of England Governor calls for merger of G20 and IMF
On 18 January 2010, the Bank of England Governor, Mervyn King, recommended that the G20 merge with the International Monetary Fund (IMF), with the aim to radically overhaul management of the international economy. Speaking at Exeter University, he warned that, for another global economic crisis to be avoided, action was required by politicians to create an international body with the authority to reform the IMF, rather than just looking at reforms in the financial sector.

He expressed concern that continuing global economic imbalances which involve rich countries relying on borrowing to pay for cheap exports from overseas are fuelling the current crisis and needed to be addressed. He stressed that changes needed to be made to the multilateral institutions responsible for monitoring the global economy.

The Governor suggested that the G20 may be the ideal platform to steer the introduction of the necessary reforms, with the emphasis on exporters spending more and deficit economies such as the UK and US saving more.

There may be dissension from the US which holds the balance of power at the IMF.

There were calls from economist David Blanchflower to disband the Monetary Policy Committee (MPC) as he saw it as culpable in failing to see the recession coming and acting too late.
For the full text of Mervyn King's speech: Mervyn King's speech: full text
Source: The Telegraph 20/1/2010
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Straw proposes reducing success fees in defamation cases
Success fees that lawyers can charge for winning defamation cases in 'no-win, no-fee agreements' should be reduced from 100 percent to 10 percent, Justice Secretary Jack Straw announced on 19 January 2010.

The proposal aims to prevent court costs in defamation cases spiralling out of control, deterring journalists and writers from publishing articles which are in the public interest, or forcing them to settle rather than defend defamation actions. The proposal will now be subject to a consultation period of four weeks.

The current law allows lawyers to double their fees under conditional fee agreements ('no-win, no-fee') by claiming a success fee of up to 100 percent on top of their usual fee. This is payable by the losing party in addition to the 'After the Event' insurance premium. Success fees cover the costs of cases which lawyers lose on a 'no win, no fee' agreement. However, the success rate of defamation actions does not justify such a generous success fee.

The proposal is the latest step in the Ministry of Justice's programme to make sure costs are reasonable and proportionate in some publication proceedings including defamation cases. In October 2009, the ministry introduced:

Mandatory early notice of 'After the Event' insurance - so that a defendant would have a clear idea of the potential cost, if he lost, of covering the winning lawyer's premium for insuring himself against losing (which is chargeable to a losing defendant, alongside the success fee);
A 42-day cooling-off period during which if the defendant admits liability and makes an offer leading to a settlement, the 'After the Event' insurance premium is not payable;
A mandatory cost budgeting pilot for defamation proceedings, aimed at ensuring that costs are proportionate and within the agreed budget, with close judicial supervision.

Source: Ministry of Justice
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Credit card industry resists lending limits
The UK credit card industry has attempted to pour cold water over plans to curb lenders' activities.

Government proposals include stopping card firms changing interest rates on existing debts and ensuring the most expensive debts are paid off first.

But now a trade body, the UK Cards Association, has claimed that the changes would push more people into financial difficulty.

There are 30 million UK credit card customers holding 66 million cards.

The industry said that 62% of all UK adults had at least one credit card, but borrowing on these cards had been in "gentle decline" since 2005.
Source: http://news.bbc.co.uk/1/hi/business/8467933.stm
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£25.6 billion employment bill risks job creation and recovery, argues BCC
On 19 January 2010, the British Chambers of Commerce (BCC) published new research which criticises Government plans to introduce new employment regulations and taxes which will cost UK businesses a mammoth £25.6 billion over the next four years and could have a detrimental impact on job creation.

As unemployment rates spiral, likely to exceed 2.5 million within the next few days, and trading conditions remaining difficult, the Government still plans to go ahead with this new level of bureaucracy and introduce taxes directly related to employment. The timescales for these changes are scheduled for April 2010 to April 2014, with eight major changes in 2011 alone.

£14bn of the cost of introducing these new measures will come from employer National Insurance contributions, which will increase by 1 percent from April 2011.

The most costly regulations will include:

2010: The Equality Bill will cost business£190 million
2011: The Agency Workers Directive will cost business £1.5 billion annually
2012: Pensions Reform will cost business £4.8 billion annually

The BCC are campaigning for a three year moratorium on new employment laws in the UK. The business group is also calling on the UK government to lead a campaign for an EU-wide moratorium.
Source: British Chambers of Commerce
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Economic & Labour Market Review
On 19 January 2010, the Office for National Statistics published the latest Economic & Labour Market Review (ELMR). This is an essential resource for all users of UK economic and labour market statistics, ELMR draws together the expert research and analysis and range of content found in Economic Trends and Labour Market Trends to build an up-to-date, comprehensive and unique statistical picture of the UK economy and labour market.

Despite structural changes in the UK economy, the total trade balance over the last two-and-a-half decades has generally exhibited a strong cyclical pattern, an article in today's Economic & Labour Market Review concludes. The high correlation between UK household consumption growth and imports growth suggests movements between surplus and deficit have tended to follow the strength of domestic demand. The article, which focuses on data from the period 1985-2008, divides this period into four phases:

Between 1985 and 1988 the balance deteriorated rapidly, moving from a surplus of £4.1 billion to a deficit of £4.6 billion;
During the late 1980s and the first half of the 1990s, the balance subsequently improved and returned to a surplus, which stood at £3.3 billion in the first quarter of 1995;
In the late 1990s and for most of the following decade, the UK total trade balance persistently worsened. By the final quarter of 2007 the deficit had reached £12.9 billion;
However, since then the total trade balance has improved. The most recent data show that the deficit fell to £7.1 billion in the third quarter of 2009.

The article offers some economic explanations for the movements in the UK total trade balance during these four periods:

The switch from surplus to deficit between 1985 and 1988 was primarily driven by the trade in goods component. Growing trade deficits between 1985 and 1988 coincide with a period of strong growth in household final consumption expenditure;
The return to surplus between 1989 and 1995 reflected a contraction in domestic demand following the recession of the early 90s, while foreign demand remained fairly robust. The fall in imports growth and the rise in exports growth were also supported by a substantial and persistent depreciation in sterling.

Source: http://www.statistics.gov.uk/pdfdir/elmr0110.pdf
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Credit card bad debt write-offs problems emerge
There has been a huge rise in the amount of money that banks are writing off as bad debts on their credit cards.

Bank of England figures show that the total value of the write-offs doubled to £1.6bn in the third quarter of 2009. In each of the two preceding quarters, the figure had been about £800m whilst it totalled £3.2bn during 2008.

The figures reflect the impact of the recession and are an acknowledgement by the banks that the money will never be repaid by defaulting borrowers.

By contrast, the value of mortgages written off in 2008 was just £408m, and has averaged £260m in each of the first three quarters of 2009.
Source: http://news.bbc.co.uk/1/hi/business/8467161.stm
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Marketing budgets reduced again but outlook improves - IPA/BDO Bellwether Report Q4 2009
The IPA/BDO Bellwether Report Q4 2009 compiled and published on 18 January 2010 by Markit indicated that, although total marketing budgets for 2009 were revised down for the ninth quarter in succession, the rate of reduction was less than in the previous quarter.

It also showed that initial budgets for 2010 were set higher on average compared to 2009 and there have been more positive respondents than negative for the third quarter in a row in Q4 (though less than Q3). Indeed, 35 percent of firms have been more positive about industry prospects than they had been for the last five years.

The Bellwether survey suggests that, although the latest data on economic growth is currently only available up to Q3, the UK appears to have finally come out of the recession in the final quarter of 2009 based on the current industry optimism and upturn of PMI figures.

Internet advertising budgets have taken a bigger share of the total marketing spend, with increases for the second quarter running. Direct marketing budgets were also scaled up. Meanwhile, 'all other', sales promotion and main media marketing saw a downturn, with the sharpest reduction seen in main media, although at a slower rate than previously seen.
Source and full report available at: Markit - IPA/BDO Bellwether Report 2009 Q4
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Unleashing aspiration: the Government response to the final report of the panel on fair access to the professions
On 18 January 2010, the Government published Unleashing Aspiration: The Government Response to the Final Report of the Panel on Fair Access to the Professions. It sets out a coordinated programme of work across Government in response to the recommendations of the panel on fair access to the professions' which was chaired by Alan Milburn. It promotes the aspirations of all young people, whatever their background, and puts social mobility at the heart of the Government's plans for growth and success in the global economy.

The Government's response to Unleashing Aspiration, the final report from the Panel on Fair Access to the Professions, agrees to implement the vast majority of the panel's 88 recommendations.

The Final Report from the Panel on Fair Access to the Professions was very clear that a socially mobile society was a necessity for the UK to prosper - both economically as well as socially. As the report identified, there is not a single definition of the professions. But they do have a number of common aspects - such as occupations with recognisable entry points based on education and/or experience; a code of conduct or guidance for members regarding their professional work; systems to maintain standards and quality within the profession; and a commitment to continuing professional development.

The measures announced on 18 January 2010 look to harness activity across Government and the professional associations. They include:

The creation of an online National Internship Service, building on success of the 'Graduate Talent Pool'. This free, nationwide service will help undergraduates and graduates access opportunities and information to develop their employability skills and establish quality standards to benefit both interns and employers. Bursary funding will be available for students from low income backgrounds lacking the means to support themselves. This follows the commitment in the Pre-Budget Report to deliver £8m funding for up to 10,000 new undergraduate internships.
A guarantee, building on the New Opportunities White Paper published last year, for around 130,000 of the brightest young people from low-income backgrounds to benefit from structured assistance at secondary school. Beginning in 2012, this package should include experience of Higher Education, mentoring and access to high quality information, advice and guidance.
A new Social Mobility Commission to provide expert evidence on trends and policy on social mobility, and produce an annual report on progress made towards a fairer, more socially mobile society.
The launch of an expanded 'Gateways to the Professions Collaborative Forum' with an increased remit covering a wider range of professions. Chaired by David Lammy, the Minister for Higher Education and involving senior representatives from 60 key professions. The Forum will advise on and implement many of the panel's recommendations and will ask professional organisations to report on and share work done to improve access in each of their fields.

Source and further detailed information: View PDF
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Rural watchdog seeks to maximise value of economic well-being
The Commission for Rural Communities (CRC) believes that local authorities and other organisations should be making greater use of their ability to pursue policies and projects which increase the economic well-being of the communities they serve. On 18 January 2010, to encourage and help them, the CRC published two reports which explain economic well-being and give guidance as to how the concept can be used. The reports are being launched at a seminar which aims to stimulate debate and highlight existing good practice. Representatives from local, regional and national government, the voluntary sector and other agencies will come together to hear about projects which have made a positive difference to people's lives and explore how economic well-being can be better used at a local level.

Good practice examples of economic well-being include:

"Pension Extra" Benefit Take Up Campaign lead by the Citizens Advice Bureaux in Caradon, Cornwall is helping pensioners access the benefits for which they are eligible. The project has improved the economic well-being of local pensioners by helping them maximise their income through outreach activities and delivering health and housing advice. This in turn has generated additional spend in the local economy.
'Out of the Rut' is a commercial venture developed from inside Rutland Council, to help vulnerable people back into the workforce by providing paid, supportive, employment in horticulture, retail and associated activities. After starting with just one modest contract, the company has gone on to secure a range of commercial deals provided placements for 300 individuals, more than half of them subsequently placed in longer-term jobs.

Source and full report and statements: News Distribution Service
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60 may be the new middle age for women
On 14 January 2010, it was reported that scientists have discovered a gene that is known to greatly increase the chances of living to 100 and help to counteract Alzheimer's. So at 60, a woman could be only halfway through her life.

Currently in the UK, around one in six women is a pensioner and this number is likely to increase to one in three by the end of the decade. But our preconception of female OAPs needs to change as they become more active, vibrant and adventurous.

As healthcare knowledge advances, advertisers, retailers and the Government need to be more aware of the changing patterns.

While sectors of business like the film industry, television and fashion tend to ignore women over 50, many women are very active and very contemporary in their outlooks and behaviour and there are examples of sexagenarians continuing to work and who are well-respected in these fields.

Figures for depression and mental health have decreased for this group over the last 30 years and women are predicted to stay healthier longer and therefore remain in the workforce to help provide for a longer life expectancy.

However, women who wish to have children later in life should be aware that at the age of 50, fertility is non-existent as the menopause cannot be delayed and the chances of funding for IVF being available at that age are remote.

Research has also shown that the male hormone testosterone may encourage fatal illnesses like heart disease.
Source: Article at Times Online
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The role of finance in the decision-making of higher education applicants and students
On 13 January 2010, the Department for Business, Innovation & Skills (BIS) published a research paper on the role of finance in the decision-making of higher education applicants and students. The paper summarises findings from the 'Going into HE' qualitative research project, conducted by the Institute for Employment Studies (IES) for the Department. It aimed to find out how higher education applicants' decisions are made and why, with financial considerations, and particularly student support, as the main focus.

The Going into HE study ran from autumn 2007 to winter 2008 and was conducted by the Institute for Employment Studies (IES) on behalf of the Department for Innovation, Universities and Skills (DIUS). The Institute for Employment Studies is an independent, apolitical, international centre of research and consultancy in public employment policy and organisational human resource issues. It works closely with employers in the manufacturing, service and public sectors, government departments, agencies, and professional and employee bodies.
Source and detailed information: www.dius.gov.uk/~/media/publications/B/BIS-RP-009
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Food Standards Agency research backs retailers' approach to country of origin
On 14 January 2010, The Food Standards Agency (FSA) published research into food labelling which showed that country of origin is not the main factor for most consumers when deciding the choice of product. Retailers have also backed the findings.

For those consumers who see it as an important factor, the British Retail Consortium (BRC) found that retailers provide clear country of origin labelling on their own-brand goods. This work by retailers in improving labelling was applauded by the FSA.

The area of consumer interest centred largely on fresh meat and meat products and therefore the BRC believes that this is the area where the focus needs to be.
Source: British Retail Consortium (BRC)
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Greater investment boosts confidence in council farms
Figures for 2008-09 released on 13 January 2010 by the Chartered Institute of Public Finance and Accountancy (CIPFA) reveal that council farms have seen an increase both in capital investment in fixed equipment and in environmental schemes.

During this period the total number of farms owned by councils in England and Wales rose from 3,532 to 3,635, an increase of 3 percent.

The figures indicate that councils prefer to retain and improve farms rather than dispose of them and, by increasing tenants' rents, are maintaining a positive return.

The survey results, upon which this release is based, are available at www.cipfastats.net.
Source: The Chartered Institute of Public Finance and Accountancy (CIPFA)
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Government to review online air fare rules
The Government is to look at tougher penalties for airlines that use hidden charges to mislead consumers. The consultation, which the Department of Transport plans to start within weeks, hopes to close a loophole by which airlines can avoid penalties for breaking the European Union's Air Services Regulations.

The Regulations have been in place since 2008 but without a penalty for not adhering to them. A Department of Transport spokesman said that this will be put right under any new legislation resulting from the consultation.

Currently, airlines can disguise their final prices by adding charges such as taxes and surcharges during the online booking process, resulting in a deceptively low starting price becoming inflated at the checkout. This practice is being investigated by the Office of Fair Trading (OFT).

The Department of Transport spokesman said that sanctions had been held up in an attempt to create a more flexible system of penalties for rule-breakers.

Ryanair is one of the airlines which recently modified up its booking process. The airline had been referred to the OFT by the Advertising Standards Authority (ASA) after it had breached the ASA's Code a number of times. It changed its practices to comply with Regulations by not automatically including travel insurance with flight bookings, although there is an opt-out section for checking in luggage. Easyjet still includes insurance and adds £18 for checking in luggage so that consumers have to actively opt-out.
Source: Out-Law.com
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Last chance to take part in Government Scrappage Scheme - less than 100,000 vehicle orders left
On 15 January 2010, the Department for Business, Innovation and Skills (BIS) released figures which show that more than three quarters of the budget for the Government's scrappage scheme has been used up. Funding for less than 82,000 new vehicles orders is left for consumers to take advantage of under the scheme, as it nears its end.

As the scheme enters its final stages the Department for Business will allocate order quotas to manufacturers. The quota system will be based on brand popularity and will help ensure a smooth closing of the scheme.

Van orders under the scheme have also seen a boost, following the changes made to the scheme in September 2009, with vans registered before February 2002 now eligible. Since these changes came into effect, half of all vans scrapped through the scheme were less than ten years old and there have been reports of van fleet owners upgrading their entire stock.

The regional breakdown shows that take-up of the scheme broadly follows that of regional car ownership. Scrappage has proved popular with car buyers across the UK with take-up highest in the South East (18 percent), the East of England (12 percent), the North West (11 percent) and South West (11 percent).

The UK scheme, with £400 million from Government and matched funding from manufacturers, is intended to provide immediate support on a short-term basis to boost the car industry and its supply chain during the downturn. It has also removed older vehicles from the road and encouraged consumers to invest in new, safer, and potentially more environmentally friendly models.
The scrappage scheme figures are updated on a weekly basis, with all available statistics on the BIS website are available at: www.berr.gov.uk/whatwedo/sectors/automotive/scrappage/page51068.html
Source: BIS Press Release
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Vehicle Licensing and Registration Statistics
On 14 January 2010, the office for National Statistics published up to date National Statistics on the number of licensed vehicles and new registrations of vehicles in Great Britain.

The statistics are presented by vehicle body type and are updated on a quarterly basis in relation to licensed vehicle numbers and a monthly basis in relation to the numbers of new registrations. Statistics are shown retrospectively from 2001 onwards for both series.

The statistics presented here are intended to supplement the annual statistical bulletin, Vehicle Licensing Statistics, which is released in April each year and contains a more detailed range of vehicle licensing and registration statistics and an explanation of the vehicle licensing system.
Source: www.dft.gov.uk/pgr/statistics/datatablespublications/vehicles/
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Supermarket ombudsman could prove costly for customers
On 13 January 2010, the British Retail Consortium (BRC) reacted to Government plans to consider instituting a costly new bureaucracy to influence relationships between supermarkets and their supplier.

The BRC suggested that this new supermarket ombudsman would result in consumers paying millions of pounds in higher prices, with the emphasis being in favour of corporations rather than customers.

The Governments' level of predicted costs of £5 million that retailers would be charged for the new ombudsman is challenged by the BRC and they questioned the need for such a body when there is already a supplier code, overseen by the Office of Fair Trading (OFT) which offers independent arbitration.
Source: British Retail Consortium
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Friend or Foe: Is The EU Good For Business?
On 14 January 2010, Lord Mandelson delivered a rousing speech at the Business For New Europe Event.

Some of the key points he made are:

We have a big chance to redefine European influence globally in the face of major challenges like climate change;
In practice, the financial crisis that we have experienced and the ensuing recession make us more politically insular. And we have to resist that because it is going to make recovery and building on that recovery a darn sight harder to achieve;
Europe's big external agenda rests to a large extent on our internal economic strategy;
Britain's economic recovery depends on Europe's economic recovery, whether it is European demand which represents our biggest market, or the European response to the financial crisis. And growth plans in this country are inextricably linked to similar plans in Europe;
Crisis measures now giving way to regulatory responses - this is a critical phase for business, and especially for financial services. The key here is to distinguish between the need for new proportionate regulation in financial markets on one hand and the wider regulatory agenda, where the somewhat more disciplined approach of the EU to better regulation needs to be maintained, but strengthened in the life of this Commission;
Some, as we have seen, in the European Parliament will interpret the banking crisis as a clarion call for more business regulation in general. We need to push back against this intelligently. We have to lead that debate and bring it to a set of reasonable conclusions;
Whilst the City is sensitive about its regulatory burden, we do not need regulatory grandstanding - we need regulatory coherence, joined up between jurisdictions. We do not need multiple, cumulative layers of regulation that amount to overkill;
A coherent EU position also gives us much greater weight in shaping a new global regime through the G20 process. It also makes commercial sense. The UK cannot detach itself from a single European regulatory regime, if it wants to be the main capital and financial markets centre for the single market and if we want to be the main route or centre for investment into the single market;
Most other member states understand on principle the fact that the UK has more skin in this game than the rest of the EU put together, and we expect that to be respected. We will need to work hard with the European Parliament to get a constructive outcome
We have to provide leadership and engage with the EU on growth plans. We set out as a government some ideas for this last year, which I believe have coloured European Commission thinking;
The EU should commit to clear targets on universal broadband access across the whole EU. We need to make sure that the incentives are right to get digital infrastructure into every part of the EU;
The UK should think creatively about making better use of the European Investment Fund - which is a fund of funds - to significantly reduce the venture capital gap with US at the EU level;
The Commission's job should be to stand up for the long term, to represent what is wise rather than populist and to give a strong lead where, inevitably, more short-term, electorally conscious national Governments may fear to lead.

Source: Lord Mandelson's Speech
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Cereals and oilseed rape production estimates: 2009 harvest UK final
On 14 January 2010, the latest National Statistics (ONS) produced for the Department for Environment, Food and Rural Affairs (Defra) were published from the cereals, oilseed rape and linseed production surveys. This release shows the final estimates of the size of the UK cereals and oilseeds harvest for 2009.

The key results are given below:

Total cereals: The official estimate for the 2009 United Kingdom cereals harvest is a total of 22.0 million tonnes which shows a decrease of 9 percent on 2008. The majority of the harvest (18.7 million tonnes) was produced in England. The total cereal production estimate in the United Kingdom is slightly higher than the provisional estimate of 21.8 million tonnes, published in October 2009;
Wheat: The 2009 wheat harvest for the United Kingdom is 14.4 million tonnes, a decrease of 17 percent on 2008. This decrease is a combination of a lower yield of 7.9 tonnes/ha along with a 13 percent decrease in the wheat area to 1.8 million hectares. This overall reduction is a result of the difficult planting conditions of autumn 2008 and lower cereal prices, along with another wet harvest in certain UK areas for 2009. The final wheat production estimate is slightly higher than the provisional estimate of 14.2 million tonnes;
Barley: The production of barley for 2009 is 6.8 million tonnes, an increase of 10 percent on 2008. This increase in production is due to the 12 percent increase in the area planted to 1.2 million hectares. The yield for barley was slightly down on last year at 5.8 tonnes/ha;
Oats: The production of oats in 2009 decreased by 3 percent to 757 thousand tonnes. This was mainly due to a 3 percent decrease in area to 131 thousand hectares;
Oilseed Rape: Oilseed rape production in the UK decreased by 1 percent to almost 2.0 million tonnes in 2009. This decrease was largely due to a 3 percent reduction in the area planted. However, this was partly offset by a 2 percent increase in the yield to 3.4 tonnes/ha;
Linseed: Area and production figures for linseed in England increased significantly between 2008 and 2009. The area increased by 79 percent to 29 thousand hectares and production by 92 percent to 56 thousand tonnes. The yield increased by 7percent to 1.9 tonnes/ha;

Source and further data: 2009 Harvest UK Final Statistics
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Government announces extra vessels to be included in Trawler men Compensation Scheme
Business minister Lord Young announced on 14 January 2009 that 19 new vessels will be included in the Government's Icelandic water trawlermen compensation scheme.

Service on these vessels will now be counted when calculating payments due under the scheme, which is aims to provide additional compensation for former trawlermen who lost their livelihoods following the Cod Wars of the 1970s.

The new scheme closes on 30 April 2010 so people who feel that they might be eligible, but have not yet applied, should submit their forms soon.
Source: Icelandic-Water Trawlermen Compensation Scheme
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New IVA protocol proving successful
An Individual Voluntary Arrangement (IVA) is a solution for debtors to get rid of their debt problems. It's an alternative from bankruptcy and is a legal agreement with creditors to pay an agreed sum each month and the debtor can usually be debt free in five years.

On 12 January 2010, the Government's Insolvency Service reported that most IVA cases being handled under the new IVA protocol are complying:

A review carried out by the Insolvency Service on behalf of the IVA standing committee, showed that more than 50 percent of debtors found the process easy to understand. The cases scrutinised were taken out between April 2008 and March 2009;
Surprisingly, almost a third of debtors did not realise that other types of debt relief were available;
Of those who failed, over two-thirds were due to the debtor not maintaining contributions.

The most common type of debtor is an employed non-homeowner with debts totalling less than £50,000 and most have been through other debt management process before considering an IVA.

The IVA Protocol specifies that appropriate advice must be given by the regulated IVA providers (who need to be insolvency practitioners) to ensure that standards are met.
Source: Insolvency News and Report on the review of the impact of the IVA Protocol December 2009 and Review of the impact of the IVA Protocol - Q&A
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MP accuses accountants of profiteering from recession
A Scottish National Party regulatory spokesman has criticised accountancy companies for making a profit from the recession and has called for an investigation into the insolvency sector.

Mike Weir has asked for an investigation after concerns were raised following the unfortunate situation of companies that have closed.

He added that the self-regulation of the industry only added to the problem.

An example used to press the point was that of Apal Travel, which went into liquidation in 1974 but its wind-up was not completed until September last year. The protracted process meant that some creditors had died before the debts were settled.

The Independent reported that accountants have rejected the accusations.
Source: GAAP
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Group of Central Bank Governors and Heads of Supervision reinforces Basel Committee reform packageThe Order was made on 30 December 2009, laid before Parliament on 5 January 2010 and comes into force on 1 February 2010.
The Statutory Instrument is published at: www.opsi.gov.uk/si/si2009/uksi_20093404_en_1
The explanatory memorandum is available at: www.opsi.gov.uk/si/si2009/em/uksiem_20093404_en.pdf
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Government pledge to banish ageism
Harriet Harman, Minister for Women and Equality pledged on 11 January 2010 to tackle the problem of ageism. As the numbers of well, older people increase, a change to public policy is necessary to recognise their contribution to the families and the economy.

She said that old-fashioned attitudes regarding age need to be reversed and that the age of 65 should no longer be an obstacle to continued employment. She also commented that women suffered more from the age stereotype.

The law regarding ageism should be strengthened when the Equality Bill enters committee stage in the House of Lords (11 January 2010). Its aims are to:

Provide new legal protection from discrimination to those at work because they are caring for an older member of their family;
Place a legal obligation on public bodies, such as planning authorities, to protect and promote the needs of older people when planning their services;
Ban age discrimination in the provision of goods and services so that older people are not unfairly disadvantaged in things such as travel insurance and loans.

The ban on age discrimination will not affect cases where services benefit older people, for example allowing an insurance company to only offer travel insurance to the over-50s, or the Government's successful and popular policy of providing free bus passes to people aged 60 and above.
Source and access to full report available at: News Distribution Service
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Government gives TUC millions
The Trades Union Congress is receiving millions of pounds from the Government's from its foreign aid budget. The money is to fund the education of British trade unionists and to support advocacy work in Britain.

The Department for International Development (DfID) is making the payment, which is to include a £2.4 million grant. The relationship between the two organisations is being encouraged to help the government department set development priorities at policy level. The new grant, for 2009-11, is made under the Partnership Programme Arrangement (PPA).

Despite an independent review which found lack of effectiveness of individual projects, the TUC has already received an instalment of £900,000, with the money not being confined to work in developing countries. The organisation has benefited from three grants totalling £3.6 million, including the current PPA, from the taxpayer since 2003. These were to help raise awareness of international development issues within the British union movement.

A DfID spokesman stated that the grant would be used largely for development assistance.
Source and full report available at: The Times Online
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Retail crime rising during recession
A report by the British Retail Consortium's (BRC) shows that the number of thefts from shops rose by a third in a single year. This represents an incident occurring nearly every minute, 24 hours a day.

The BRC's Retail Crime Survey 2009, published on 7 January 2010 also finds that incidents of violence and abuse against shop staff have doubled.

The findings are based for the first time, not just from numbers reported to police, but data from retailers of the proportion of those incidents that have gone unreported.

Retail crime costs the UK shops around £1.1 billion in 2008/09, with customer theft being the major contributor to this figure.
Source and access to full report available at: British Retail Consortium
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Don't lose your car to the Ice bandits
Parts of the country have recently seen a spate of vehicles stolen by thieves on the prowl for vehicles left unattended with the keys in the ignition. Lancashire police recently logged 27 vehicles left in this way over just two hours. Earlier this week, in just one morning, four cars were stolen this way in Greater Manchester alone. Last year, a gang of car thieves known as The Ice Bandits received prison sentences.

Leaving your vehicle unattended with the keys in the ignition could be seen as not taking reasonable care, and might invalidate any insurance claim if your vehicle is stolen in this way.
Source: ABI Press Release 6/1/2010
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The North East to become hub for renewable energy market
UK Trade & Investment announced on 7 January 2010 that the development of low-carbon technology in the UK is to be centred around the North East, with the launch of another pioneering project.

The New and Renewable Energy Centre (Narec) at Blyth will launch its Business Support in micro-renewables project for small and medium-sized enterprises, to cover a huge range of micro-generation, from solar thermal, combined heat and power systems to wind turbines and biomass.

Part-financed by the European Regional Development Fund 2007-13, which is supplying £495,000 through regional development agency One North East, the agency is matching this amount from its Single Programme. Similar measures have helped other European Countries, including Germany, in efforts to change to renewable energy production.
Source and access to full report available at: UK Targets renewable energy market
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New British licence requirements for overseas online gambling firms
On 7 January 2010, Sports Minister Gerry Sutcliffe announced proposals to bring in new licence requirements for overseas-based online gambling firms who want to have a customer base in Britain. The plans, which will be subject to a consultation period, would mean that online operators currently licensed outside Britain will have to apply for a licence from the Gambling Commission if they want to advertise or provide their gambling services to British consumers.

Under the plans, all online gambling firms active in the British market will have an obligation to share information about suspicious betting patterns with the UK's sports governing bodies as well as the Gambling Commission. They will also have to comply with British licence requirements including the protection of children and vulnerable people, and will have to demonstrate how they will contribute to the research, education and treatment of problem gambling in Britain.
Source and other information: www.culture.gov.uk/reference_library/media_releases/6562.aspx
Other information: Written Ministerial Statement on the proposals
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A Sustainable Development Action Plan for the Department for Business Innovation & Skills (BIS)
The Department for Business Innovation & Skills was created in June 2009 following the merger of the Department for Business Enterprise & Regulatory Reform (BERR) and the Department for Innovation, Universities & Skills (DIUS). On 23 December 2009, it published its first Sustainable Development Action Plan (SDAP) for the new Department and covers the period August 2009 to March 2011. It highlights key policies and activity across the new Department. It demonstrates how BIS brings together the strengths and expertise of the former DIUS and BERR to create valuable linkages between innovation, science, Universities, skills and business, to help the department build on its strengths and develop new capabilities to enable it to benefit fully from a rapidly changing world. By way of example, these linkages are highlighted in the role of the Technology Strategy Board in supporting measures from New Industry New Jobs which features prominently in this Plan as it advocates an economic recovery from the recession which contains sustainable growth, with environmental considerations and sustainable jobs.
Source: www.berr.gov.uk/files/file54066.pdf
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BIS: annual National Market Surveillance Programme
On 4 January 2010, the department for Business, Innovation and Skills (BIS) published its annual National Market Surveillance Programme document. It covers those pieces of legislation that implement Community harmonisation legislation (CHL) as required by Article 18(5) of Regulation (EC) No. 765/2008, setting the requirements for accreditation and market surveillance relating to the marketing of products and repealing Regulation (EEC) No 339/93.

The general objective of Market Surveillance in the UK is to ensure the free circulation of safe and otherwise compliant products in our part of the Internal Market with the minimum regulatory burden on economic operators commensurate with that purpose. In particular, the activities of the Market Surveillance authorities should be accountable, targeted, proportionate, consistent and transparent. All market surveillance activities (MSA) are signed up to the Enforcement Concordat (www.berr.gov.uk/files/file10150.pdf) and the Regulators Compliance Code (www.berr.gov.uk/files/file45019.pdf ). Prevention of non-compliance by educating business about the applicable legislation is a key component of the UK's approach to market surveillance and as such a great deal of effort is spent on communication activities by all of the authorities. This can also include activities that encourage compliance by those businesses that are found to be non-compliant.

The organisation of market surveillance in the UK is described in diagrammatic form in Annex A of the publication (see link below). Further details can be found at BIS website (www.berr.gov.uk/files/file53488.pdf).
Source: www.berr.gov.uk/files/file54111.pdf
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The National Grid warns of shortage
On 5 January 2010, a gas balancing alert (GBA) was issued by the National Grid - only the second time that the mechanism has been used (the first time a GBA was used was in March 2006.). GBAs are a way of managing gas supplies, warning large industrial users to lessen the fuel used and encouraging suppliers to bring in more gas:

A spokesman said the alert had already proved effective and bosses would be meeting again to review and decide whether a further GBA needs to be issued after the current warning expires;
Extra supplies from a terminal on the Isle of Grain in Kent, together with supplies from Belgium and Norway, have been received by the grid;
A spokesman said that some big industrial customers had stopped using gas on Monday afternoon which eased the pressure.

Source and access to full report available at: The National Grid Gas Balancing Alert
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UK Cross-Government Strategy for Food Research and Innovation
A new science strategy to help improve the security and sustainability of our food system was launched by the Government's Chief Scientific Adviser. The UK Cross-Government Strategy for Food Research and Innovation aims to provide the evidence to support effective, joined-up policies, and ensure the development and dissemination of new knowledge, technologies and skills.

The UK has a world leading science base which can contribute significantly to the new Government food strategy, (called Food 2030), which sets out a clear vision for achieving a sustainable and secure food system. The topic of food is inherently complex and multi-faceted, and the research and innovation landscape reflects this complexity. Delivering safe, affordable and nutritious food for a growing global population, whilst ensuring sustainability and coping with climate change, will require a multi-disciplinary research approach.

Key initiatives highlighted in the Strategy include:

a new multi-partner food security research programme, co-ordinated by BBSRC and delivered jointly with relevant Research Councils and government departments, and including close engagement with industry and the third sector. Key aims include strengthening research coordination and partnerships, building a more integrated community of researchers, funders and users that extends across disciplines, organisations and sectors, to provide multi-disciplinary research to ensure a sustainable and secure food system;
a new Technology Strategy Board led Sustainable Agriculture and Food Innovation Platform, co-funded by Defra and BBSRC with up to £90M over five years, to fund innovative technological research and development in areas such as crop productivity, sustainable livestock production, waste reduction and management, and greenhouse gas reduction;
a doubling of research investment in agriculture by DFID to £80m/yr by 2013 to provide farmers in developing countries with access to technologies and to help national governments develop more effective agricultural policies, based on a robust evidence base. Important progress is also being made towards strengthening the institutional arrangements at international level that will help maximise the value of these investments;
impetus to exploit opportunities in the European Research Area through co-ordination mechanisms such as ERA-NETs and Joint Programmes, and collaboration through the RTD Framework Programme more generally;
a major Foresight study looking over the long term at the ability of global food systems to feed a future world population of 9 billion healthily and sustainably, set to launch its findings in October 2010;
a new BBSRC Advanced Training Partnership scheme to provide a range of specialist high level training (masters, professional doctorate and continuous professional development) to meet industry needs in partnership with the higher and further education sectors; and
the development of new indicators to monitor research collaboration, innovation and skills within the suite of indicators being introduced by Defra for a sustainable and secure food system.

A copy of the full report is available at: www.bis.gov.uk/GO-Science
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Boiler scrappage scheme launched
On 5 January 2010, the ''boiler scrappage scheme' was launched by Prime Minister Gordon Brown and Energy and Climate Change Secretary Ed Miliband. The scheme aims to upgrade household heating systems to cut carbon, save money on fuel bills and sustain work for the heating industry.

The scheme is targeted at pensioners and those on qualifying disability or income related benefits, to provide heating and insulation measures which could reduce fuel bill. Homes eligible for the scheme include up to 125,000 households in England with working "G-rated" boilers who can from today apply through the Energy Saving Trust for a voucher which will entitle them to £400 off the price of a new, modern "A-rated" boiler or a renewable heating system like a biomass boiler or a heat pump.

As with the Government car scrappage scheme, the launch has prompted some private companies to offer similar schemes, and sometimes to match the offer, which will in turn extend the scheme to many more homes. So, the advice is to shop around to find the best deal before applying to the scheme.
Source and access to full report available at: Department of Energy & Climate Change - boiler scrappage
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Extra Bank Holiday For Queen's Jubilee
On 5 January 2010, Business Secretary Lord Mandelson announced to the House of Lords that Britons are to be given an extra bank holiday in 2012 to mark the Queen's Diamond Jubilee. He also announced that the Queen will make Greenwich a royal borough when Britain hosts the Olympics the same year.

The May Day holiday will be moved to June 4 and an extra bank holiday on June 5 2012, giving workers a four-day break. It is expected that a series of nationwide celebrations will be organised to recognise the 60 years Queen Elizabeth II has been Britain's monarch.

June 4 is the Queen's official birthday.
Source: BIS - Department for Business Innovations & Skills news
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Imperial measurements win the day
New powers preserving the pint and the mile come into force on 1 January 2010 after the Government's success in Europe (see below). The new legislation also ensures that any business that uses imperial units alongside metric can continue with business as usual.

The Association of British Insurers (ABI) has issued a warning to motorists not to leave their vehicles unattended, with the engine running to defrost and warm up, during the current freezing weather. Thieves are increasingly targeting cars left unattended in this way.This statutory instrument makes provision in relation to the authorisation of the use or conduct of covert human intelligence sources under the Regulation of Investigatory Powers Act 2000 (RIPA) to obtain, provide access to or disclose matters subject to legal privilege. The Order prohibits the granting or renewal of such authorisations unless they have been approved either by a Surveillance Commissioner or the Secretary of State. The Group of Central Bank Governors and Heads of Supervision, the oversight body of the Basel Committee on Banking Supervision, met on 10 January 2010 at the Bank for International Settlements. It welcomed the substantial progress of the Basel Committee to translate the Group's September 2009 agreements into a concrete package of measures, as elaborated in the Committee's 17 December 2009 Consultative proposals for Strengthening the Resilience of the banking sector and the International Framework for Liquidity Risk Measurement, Standards and Monitoring. Governors and Heads of Supervision requested the Committee to deliver a fully calibrated and finalised package of reforms by the end of this year.

Central Bank Governors and Heads of Supervision welcomed the Basel Committee's focus on both microprudential reforms to strengthen the level and quality of international capital and liquidity standards, as well as the introduction of a macroprudential overlay to address procyclicality and systemic risk. They also provided guidance and noted the importance of making progress in two key areas.

Central Bank Governors and Heads of Supervision will review concrete proposals on each of these topics later this year. They endorsed the Committee's approach to extensive consultation on and comprehensive assessment of the proposed reforms, covering both the impact on the banking sector and the broader economy, before arriving at a final calibration of the minimum level of capital and the buffers above the minimum at the end of this year. They stressed that the aim of the new global standards should be to achieve a better balance between banking sector stability and sustainable credit growth. The Group of Central Bank Governors and Heads of Supervision will provide strong oversight of the work of the Basel Committee during this phase, including both the completion and calibration of the reforms.

The fully calibrated set of standards will be developed by the end of 2010 to be phased in as financial conditions improve and the economic recovery is assured with the aim of implementation by the end of 2012. This includes appropriate phase-in measures and grandfathering arrangements for a sufficiently long period to ensure a smooth transition to the new standards.
Source: www.bis.org/press/p100111.htm
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Regulation of Investigatory Powers (Covert Human Intelligence Sources: Matters Subject to Legal Privilege) Order 2009
The Government is introducing this statutory instrument in order as part of its response to a House of Lords judgment, In re McE. The judgment set out how public authorities can be authorised to carry out covert surveillance of legal consultations compatibly with the European Convention on Human Rights. A separate statutory instrument has been brought forward to respond directly to this judgment. It requires that directed surveillance that is carried out in places ordinarily used for legal consultation, at a time when they are being used for such consultations, is to be treated as intrusive surveillance for the purposes of Part II of RIPA. Although the House of Lords' judgment In re McE concerned covert surveillance of legally privileged consultations, the Government has decided to apply the principles set out in that case to the authorisation of covert human intelligence sources to acquire legally privileged material. This instrument does this by creating an enhanced regime of prior approval in respect of the authorisation of the use or conduct of a covert human intelligence source to obtain knowledge of matters subject to legal privilege.

In 2009, Britain successfully negotiated an indefinite exemption from EU laws which would otherwise have meant British businesses having to produce separate metric and imperial labels for different markets. The change also means the UK alone can decide on the future of the pint of beer, cider and milk, the mile on road signs and the troy ounce for precious metals.

The new Directive on Units of Measurement (Directive 2009/3/EC) was published in May 2009 and removes a deadline for the end of supplementary indications (i.e. the use of imperial alongside metric) and allows the UK alone to decide the future use of the mile for road traffic, the pint for draught beer and cider and bottled milk and the troy ounce for precious metals. The Units of Measurement Regulations 2009 (SI 2009/3046) and the Weights and Measures (Metrication Amendment) Regulations 2009 (SI2009/3045) implement the new Directive into UK law.
Source: http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=409943&SubjectId=2
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Private post operators gain business as customers switch from Royal Mail
Royal Mail's pre-Christmas postal strikes saw many companies send merchandise by private companies - Britain's private postal operators have made substantial inroads into Royal Mail's customer base as a result of the strikes at the end of 2009 and any further upheaval will accelerate the process, warns a significant player in the industry.

Set up in 2006, London-based Post-Switch (www.post-switch.com) is an impartial postal broker, providing expert advice on matching direct mail to the most suitable supplier at the optimum tariff. It says it helped about 45 companies change from state-owned Royal Mail to rivals over the past month. They are part of integrated communications group, Kingfisher. It understands where savings can be made on postage and will negotiate with up to 20 rival postal providers including DHL, UPS, and TNT to achieve the best price and the best delivery date.

The shake-up follows a series of days of industrial action by members of the Communication Workers Union in recent months in protest at the way modernisation was being introduced into the state-owned postal operation. The strikes were called off in the run-up to Christmas while further talks between management and unions take place to try to find a permanent peace settlement.
Read the full story at: www.guardian.co.uk/uk/2010/jan/01/royal-mail-post
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Money Lessons for children
Children will be taught how to look after their money when personal finance lessons become a compulsory part of the national curriculum. Schools are to be required to teach children how to spend with restraint, borrow within sensible limits and save prudently. Under a new personal, social, health and economic (PSHE) curriculum all pupils in England, aged five to 16 will be given financial literacy lessons - this will become compulsory for all pupils from September 2011:

Five-year-olds will start off learning how to identify different banknotes, and by 16 will be taught about mortgages and loans;
From seven to 11, youngsters could learn about managing bank and savings accounts, and how to budget.
From 11 to 14, in secondary schools,, pupils could be given lessons on credit cards, mortgages and loans, or about managing household finances, such as bills; and
14-16-year-olds could be taught about debt and how money problems can have an effect on people's lives.

The lessons are being ordered by Ed Balls, the schools secretary.
Source: www.direct.gov.uk
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Miscellaneous Business News - January 2010