The British Chambers of Commerce (BCC) today (Thursday) releases the results of its survey, in partnership with American Express, which finds the majority of businesses expect the fall in sterling to increase their costs.
The survey of over 1,300 businesses found that 63% of businesses expect their costs to increase in the next 12 months as a result of the devaluation in sterling, including a quarter (24%) who expect costs to rise significantly. In comparison, only 6% of firms expect their costs to decrease.
Over 70% of manufacturers (73%) and business-to-consumer firms (71%) anticipate costs increases, compared to 55% of business-to-business firms, according to the results.
The survey also found that many businesses trading abroad are leaving themselves exposed to currency fluctuations, with nearly half (46%) of UK firms not taking proactive steps to manage currency risk. Smaller firms are less likely than their larger counterparts to be managing risk (44% of firms with 1-9 employees, compared to 70% of those with 50-249). Manufacturers have the highest proportion of businesses managing currency risk (76%), compared to B2C (57%) and B2B (39%).
The findings of the survey highlight the extent to which the depreciation in sterling is expected to compound the price pressures on firms, underlining the need to ease the domestic cost of doing business. There is also a clear need for more support and information for exporting businesses on the importance of managing currency risk.
Other key findings in the survey are:
• The most common forms of managing currency risk are invoicing in sterling (27%), opening foreign currency accounts (15%), and waiting for an advantageous rate and buying using the spot market (15%)
• Less than a quarter (24%) of businesses say they have a complete understanding of the types of international payment methods available, with 23% saying somewhat and 13% none at all
• The biggest challenges businesses face in making or receiving international payments are delays (21%), bad or misleading exchange rates (16%) and hidden fees (16%)
Dr Adam Marshall, Director General at the British Chambers of Commerce (BCC), said:
“Weak sterling reflects the current climate of political uncertainty and lack of clarity on the Brexit process. A clear and firm strategy from government about the nature of the UK’s future trading relationship with the EU would go a long way to reassure and stabilise markets.
“While businesses await answers on Brexit, and a return to a stronger currency, they must take the necessary steps to prepare for potential risks. It’s concerning to see the proportion of UK companies not actively managing currency risk. For those trading internationally, it makes good business sense to explore the options available to insure against currency fluctuations.
“Companies are clearly feeling price pressure from the depreciation in sterling. The government made a crucial first step in the Budget with action on business rates, but further steps need to be taken on the upfront cost of doing business, so that firms can mitigate currency pressures and grow their business.”
Karen Penney, Vice President & General Manager, Global Commercial Payments and Small Business Services UK, said:
“Whilst managing currency fluctuations can seem daunting, technology is rapidly lowering these barriers, helping to streamline the payment process and granting added layers of security to businesses. At American Express we know that simple currency tools such as forward contracts can effectively protect a business from exchange rate volatility by guaranteeing a fixed rate. Not only will this protect margins, it will enable more accurate forecasting and budgeting. With the right tools and resources, businesses can unlock growth opportunities both at home and abroad.”
View the full infographic here.
Are you a family carer in Edinburgh or Midlothian? If so, or you know someone who is please complete and share VOCAL’s 2017 Carer Survey.
The survey focuses on topics such as; health, employment, time away from your caring role and economic well-being. VOCAL are also keen to hear your views on our services
and support.
If you would like to find out more about how VOCAL can support you as a carer please call 0131 622 6666 or visit our website.
The latest results from The Scottish Chambers of Commerce’s Quarterly Economic Indicator survey show optimism amongst most Scottish businesses continuing to improve during the 3nd quarter of 2017, reaching levels higher than a year ago in construction, financial and business services, manufacturing, and tourism.
The survey, produced by the Scottish Chambers of Commerce Economic Development Intelligence Unit in collaboration with the Fraser of Allander Institute of the University of Strathclyde, shows Scottish businesses remaining resilient in the face of significant policy uncertainty and a fragile Scottish economy which continues to grow at below trend levels.
Professor Graeme Roy of the Fraser of Allander Institute, one of the report’s contributors, has warned that record high employment levels are increasingly leading to recruitment difficulties across most sectors, leading to dampened growth and increases costs.
In a foreword to the report he said: “In such uncertain times, it is even more important that businesses focus on the long-term drivers of growth that they can control – including innovation, investing in productivity improvements, and developing the skills of their workforce.”
The survey also showed that tourism was a stand-out performer over the third quarter of 2017 due to the weak pound’s effect on foreign holidays.
By contrast there was cause for concern in the continued decline in the retail & wholesale sector in Scotland, with several indicators including sales revenue and cash flow continuing to decline along with employment trends, emphasising the added importance of a strong performance in the Q4 pre-Christmas period.
Financial services also appears to be building on its strong start to 2017 albeit activity has yet to fully recover to where it was three of four years ago, while despite improving optimism overall activity in construction continues to remain relatively fragile.
Neil Amner of Anderson Strathern, Chair of the Scottish Chambers of Commerce Economic Advisory Group, said:
“The results in our third quarterly economic indicator of 2017 point to a broadly positive picture for Scottish business. However, the retail sector in particular continues to show decreasing sales, in addition to cashflow and profitability challenges.
“This continues on from our findings in the second quarter which highlighted persistent issues in the retail sector. Levels of inflation have continued to impact on real terms wage growth, which has maintained pressure on household budgets and translated into recurrent challenges for this sector.
“With the exception of retail, our results generally show broad optimism of varying levels across Scottish business. In particular, the Financial and Business Services sector has displayed strong, positive results – with sales and profitability at their highest levels for several years. Unsurprisingly, this has translated into increased optimism, with third quarter optimism levels higher than figures recorded across Q3 2015 and Q3 2016.
“For many of our industries, recruitment difficulties continue to sit above the long term trend levels, exacerbated by the record high employment figures. Concerns continue to be raised by our members when it comes to seasonal workers and the attractiveness of the UK to EEA migrants during the uncertainty surrounding the Brexit negotiation process.
“Furthermore, members in more traditional industries have highlighted issues in attracting younger workers. Businesses in sectors such as manufacturing must do more to reimagine their workplaces to attract future talent, by focusing on increasing autonomy and flexibility in their working practices.”
Nine out of ten passengers are satisfied with ScotRail, a new independent passenger survey has revealed.
The National Rail Passenger Survey of more than 1,200 passengers in Scotland revealed that satisfaction with ScotRail is at 90 per cent – an increase from 83 per cent since the previous survey in autumn 2016.
This is substantially ahead of the UK-wide average of 83 per cent, and equals ScotRail’s best ever overall satisfaction rating. Just 3 per cent of those surveyed said they were dissatisfied with ScotRail.
Highlights from the survey include:
– 92 per cent are satisfied with the speed of ScotRail journeys
– 85 per cent are satisfied with ScotRail’s punctuality and reliability
– 83 per cent are satisfied overall with ScotRail station facilities
– 82 per cent are satisfied overall with ScotRail train facilities
Alex Hynes, Managing Director of the ScotRail Alliance, said:
“This equals our best ever result, and shows that the vast majority of our passengers are satisfied with the work ScotRail is doing to build the best railway Scotland has ever had.
“For nine out of ten ScotRail customers to be satisfied with our performance at a time when we are delivering one of the biggest upgrades to our network since Victorian times is down to the hard work of our dedicated staff at the ScotRail Alliance, a partnership between Abellio ScotRail and Network Rail.
“These results are really encouraging, but we aren’t complacent. The major investment we are making now will mean faster journeys, more seats and better services for our customers.”
A new survey conducted across the UK by the British Chambers of Commerce has highlighted business’s need for stability in terms of our trading relationship with the EU, regardless of the state of negotiations at the time of the UK’s exit from the EU in March 2019.
Key survey findings include:
• 68% of Scottish and UK respondents believed that there should be a transition period of at least 3 years following the UK’s exit from the EU on 29 March 2019
• 61% of Scottish respondents felt that the UK should remain in both the single market and the Customs Union, compared to 53% of respondents across the UK
Commenting, Liz Cameron, Chief Executive of Scottish Chambers of Commerce, said:
“Scottish businesses value our trading links with the European Union, as they do with our other major trading partners, and this survey shows that businesses are serious about maintaining a relationship with Europe that continues to enable them to trade as easily as possible, with no financial tariffs and an absolute minimum of regulatory barriers. The EU may have fallen behind the rest of the world in terms of the value of Scotland’s exports but it remains a vital export destination, particularly as Scotland seeks to grow the number of businesses trading internationally.
“This survey also clearly shows that Scottish businesses do not want to be facing a cliff edge in two years’ time when the UK will leave the EU under Article 50 of the Lisbon Treaty. The vast majority of business people who responded to this survey felt that a transitional period of at least three years would be appropriate in order to allow trade to continue as normal until a deal is struck to govern our future trading relationship with the EU.
“If Scotland and the UK’s economic needs are to be satisfied, then business must be listened to during these crucial negotiations.”
One month on from the General Election, the British Chambers of Commerce (BCC) today (Monday) publishes a post-election survey of over 2,400 companies, which shows that while businesses have a range of views on their preferred objectives for the UK in Brexit negotiations, there is almost no support to conclude UK-EU talks without a trade deal.
Asked to consider which option came closest to their view about what the UK’s Brexit negotiation objectives should be, the survey – carried out just after the election – showed:
• 2% said leave the Single Market and Customs Union, and rely on WTO rules for trade (leave without a trade deal with the EU)
• 34% said remain in the Single Market and Customs Union
• 13% said remain in Customs Union only (no hard borders or tariffs, but limited scope to negotiate trade agreements with third countries)
• 11% said remain in the Single Market only (accept EU regulations and rules in return for full access to market)
• 28% said a comprehensive Free Trade Agreement and a customs agreement (the government’s pre-election objectives, set at the Prime Minister’s Lancaster House speech)
Respondents were also asked about a transition period, and which of the following options they believe is best for their business:
• 46% said ‘a transition period of three years’
• 22% said ‘a transition period of longer than three years’
• 17% said ‘no transition period’
Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:
“Our results make it clear that there are a range of business views on what the UK should be seeking in a final deal with the EU, but there is near-universal consensus that a deep and comprehensive agreement is needed. ‘No deal’ isn’t seen as a viable option. Businesses want a pragmatic settlement on the practical, real-world issues that affect their operations, not arbitrary political red lines.
“By more than three to one, businesses want a transition period on the way to a final agreement with the EU. This is critical to prevent firms facing the prospect of repeated, costly adjustments to new trading conditions. If companies have to change their business model once in 2019 and again several years thereafter, the competitiveness and investment potential of our firms will be undermined.
“Getting transition arrangements on the negotiations agenda as quickly as possible would give businesses – many of whom are considering big investment decisions now – the confidence to press ahead.”
With just a year to go until the biggest shakeup of data protection law in 20 years, 25% of businesses and organisations in the UK are unaware of the new legislation and almost half have yet to start preparing for its introduction, according to a survey by Ipsos MORI and Brodies LLP.
The clock is ticking on the introduction of the General Data Protection Regulation (GDPR), which comes into force on 25 May 2018 and will impose strict new rules on the way that organisations collect, store and use personal data. Currently, the Information Commissioner has powers to issue fines of up to £500,000 for data breaches. However, under the GDPR the maximum fine for the most severe breaches will be €20 million (£17 million) or 4% of a business’ worldwide turnover.
The regulation, which replaces the current Data Protection Act 1998, will also herald the end of the pre-ticked ‘opt-in’ boxes that are widely used on websites for marketing purposes. Instead, those handling personal data will be required to seek consent through “affirmative action” from individuals and will have to explain to them how their data will be used, how long it will be kept and how it will be safeguarded.
The survey of private and public sector organisations across the UK carried out by Ipsos MORI on behalf of Brodies reveals a low level of awareness and preparedness despite the risks of non-compliance.
As a first step towards compliance, organisations that handle personal data should carry out an information audit to identify what personal data they hold, where they hold it, where it came from, what they use it for and with whom it is shared. Despite the fact that 74% of the 92 respondents believe the GDPR will have a “high” or “medium” impact on their organisation, 45% of respondents have yet to carry out such an audit and 8% don’t know whether they have.
Positively, when asked about their organisation’s readiness for the introduction of the new legislation, just over two-thirds of respondents (67%) said they were on track for compliance by 25 May 2018, although 11% said they were unlikely to be compliant by then and 17% did not know. Just 5% said their organisations are ready now, a year ahead of the deadline.
The biggest obstacle to GDPR compliance identified by organisations was resource, followed by the need for cultural change, lack of regulatory guidance, budget constraints and lack of clear internal ownership / responsibility for compliance.
Commenting on the survey’s findings, Elizabeth Denham, UK Information Commissioner, said: “Together with government and European authorities, we’ve been reaching out to organisations to help them get ready for GDPR since March 2016, but we know there are organisations which have yet to engage. With one year to go, there’s still time to prepare, but there’s no time to waste.”
Grant Campbell, Head of Brodies’ Commercial Services Division, added: “Personal data is the lifeblood of many organisations and, increasingly, how they handle that data is a matter of concern not just to regulators but to us all. Meeting the requirements of GDPR is a regulatory compliance issue but it also protects organisations from brand and other reputational damage and that will be increasingly important if individuals are to trust them with their data and business.
“These survey results show that, for many, there is a lot of work to do if GDPR compliance is to be achieved by May 2018. While 67% of organisations are confident that they will be ready, it is difficult to reconcile that statistic with the finding that over half of organisations have not (or don’t know whether they have) conducted an information audit, which is an essential building block for a compliance strategy.”
To view the results of the Brodies / Ipsos MORI survey, visit: http://brodi.es/GDPR_R3sults.
Scotland’s 2020 Climate Group are interested in what businesses have to say about the proposed changes to the way Scotland uses (and acquires) energy.
They’ve developed a short survey to ask businesses what they think. Please have a look and submit your thoughts and opinions. It’s very short and easy to do!
They’ve also developed some simple visuals to help explain key points of the strategy. Have a look and feel free to downward and use them: Energy Strategy Visual Summary
Why are Scotland’s 2020 Climate Group doing this?
The Scottish Government recently set out its long-term vision for the future of our energy in Scotland. This draft strategy will be used to guide detailed energy policy over the coming decades. It will have a tremendous impact on how we use energy and our energy supply. In the very near future Scotland is looking to further decarbonise electricity and to largely decarbonise heat and transport. No matter what your business model is this is going to matter to it.
The focus of the strategy is on:
• improving energy efficiency and increasing renewable energy supply;
• aligning efforts with Scotland’s Economic Strategy and National Performance Framework;
• developing smart, local energy systems.
Scotland’s transition to a low carbon economy will have implications for businesses of all sizes and across all sectors. We are a business led initiative which provides leadership and encourages collaboration across industry, commerce, government and civic society to help meet a collective vision Scotland’s ambitious carbon reduction targets and sustainable economic development. Scotland’s 2020 Climate Group want to know your views, from a business perspective, on the potential opportunities and concerns around this energy transition.
Whether you are a business owner, investor or leader or an employee or consultant, your thoughts are wanted on how your business or industry will be affected and what the opportunities are for your business in the low carbon transition.
If you are interested in more information about the draft Energy Strategy itself, click here to see visuals to help summarise the key details of the strategy.
If you’d like to read the full Scottish Government Draft Energy Strategy it is available to download here.
Or contact Scotland’s 2020 Climate Group directly if you have any questions or would like more information. Please email: communications@2020climategroup.org.uk.
Miituu Ltd have recently joined Edinburgh Chamber of Commerce and wanted to extend an invitation to members to participate in a survey we are currently running to capture the diverse public opinions of the forthcoming Scottish referendum.
By providing everyone with the opportunity to express their views, miituu aims to capture the very essence of the referendum debate. The video wall allows participants to engage in civilised dialogue while also examining alternative points of view in a collaborative manner.
Through miituu’s video feedback technology, anyone can take part in the debate. Participants can record and share their perspective on the debate at any time using their mobile/tablet devices or webcam. Simply download the “miituu Lite” App from either the Google Play or Apple App Stores or click on this link to use your webcam: http://bit.ly/myscotref
CEO of miituu, David High, said “miituu’s Scottish referendum video wall allows everyone to share their thoughts, opinion and concerns through video. This enables us to capture and share the real emotions, expressions and opinions of the debate, making our videowall a much more visual and personal representation of peoples views on the referendum debate.
To view the referendum videowall and to take part go to http://referendum.miituu.tv/ or alternatively download the miituu lite app here:
Android: http://bit.ly/1fA2KNj
