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Reading Time | < 1 min 11 Feb 2016

Buy-to-let purchases increase ahead of stamp duty changes

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An increase in buy-to-let purchases ahead of the stamp duty changes from 1 April 2016 is raising prices.

In a survey by The Royal Institution for Chartered Surveyors (Rics), 74% of respondents expected to be an increase of purchases by buy-to-let investors prior to the changes.

The survey suggests that the rise in purchases is due to buy-to-let investors beating the deadline before the 3% stamp duty surcharge that comes into effect in April.

New buyer enquiries rose for the 10th consecutive month in January, with growth levels in enquiries accelerating for a second successful month.

Agreed sales have also risen over the month at the fastest pace since April 2014, while further increases are expected in the housing market.

The new stamp duty surcharge of 3% will be introduced from 1 April 2016 on purchases of additional properties such as buy-to-lets and second homes.

Simon Rubinsohn, chief economist at Rics, said:

“With buy-to-let investors rushing to get into the market ahead of the stamp duty hike, the near-term pressure on prices is intensifying despite a higher level of supply.

"How the tax changes planned for the buy-to-let sector over the next few years play out remains to be seen but there are concerns raised in the survey that some existing landlords will look to either gradually scale back on their portfolios or exit the market altogether as the more penal regime begins to bite.”

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Reading Time | < 1 min 09 Feb 2016

Local authorities to extend Sunday trading hours

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Amendments have been made to the Enterprise Bill allowing local authorities to extend Sunday opening hours.

High street retailers will now be able to seasonally adjust their opening hours to enable them to better compete for trade with internet retailers.  

In December 2015, online retailers accounted for 13.8% of all retail spending.

It is hoped that the extension will mean that high street retailers can increase their trade through capitalising on tourism opportunities. Examples of the potential benefits of this are those currently enjoyed by EU countries that have already extended their Sunday trading hours, such as Sweden where turnover has increased 5%.  

The changes are part of new measures to delegate Sunday trading laws to local authorities to put a renewed focus on high streets and city centres.

The measures also allow workers to ‘opt-out’ of working Sundays, allowing them to give a months’ notice to retailers if they no longer want to work Sundays.

Business Minister Anna Soubry said:

“Extending Sunday shopping hours has the potential to help businesses and high streets better compete as our shopping habits change.

“The rights of shop workers are key to making these changes work in everyone’s interests. We are protecting those who do not wish to work Sundays, and those who do not want to work more than their normal Sunday working hours.”

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Reading Time | < 1 min 05 Feb 2016

Enterprise Bill moves to second reading

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The Enterprise Bill has been drafted for a second reading.

The government aims to provide businesses with an environment for growth and job creation.

Deregulation and trading

The bill will extended the deregulation target for businesses to include statutory regulators. 

The primary authority scheme has also been extended to give more businesses access to reliable, consistent regulatory advice.

Small Business Commissioner

An established small business commissioner will be introduced to handle complaints by small businesses about payment-related issues with larger businesses.

Apprenticeships

The government has committed to 3 million new apprenticeships by 2020. 

A new apprenticeship levy will be introduced in April 2017. The levy will be charged at a rate of 0.5% of an employer’s pay bill.

Business rates

Business rate rises will be capped while new legislations will be placed to pave way for better information sharing between local government and the Valuation Office.

The bill will sit alongside a range of legislative changes already introduced:

  • reducing corporation tax 
  • cutting business rates and doubling the small business rate relief
  • half a million employers no longer have to make national insurance contributions
  • supporting 30,000 businesses with start-up loans
  • launched a 5-year programme to help businesses with export opportunities around the world.

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Reading Time | 2 mins 03 Feb 2016

‘Skill-shortage vacancies’ a challenge for businesses

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The challenge that many businesses are facing in trying to get the right people for their workforce has been detailed in a UKCES Employer Skills Survey.

Of the 91,200 employers surveyed, 19% had a least one vacancy, up from 15% in 2013.

“Skill-shortage vacancies” (vacancies that are hard to fill due to a lack of skilled applicants) present a growing challenge for business owners looking to fill their vacancies. 6% of employers had at least 1 skill-shortage vacancy, an increase from 4% in 2013.

86% reported that they had a fully proficient workforce, while the impact of skill gaps continued to affect smaller businesses. The remaining 14% have a current gap in skills in their workforce, and UKCES estimates this equates to around 1.4 million staff not being fully proficient in their role.

The survey also found:

  • 8% had difficulty retaining staff in specific jobs
  • 2 million workers reported to be under-utilised, leading to missed opportunities to increase performance and productivity
  • 66% had funded or arranged training and development for their staff
  • total employer expenditure on training increased by 6% between 2013 and 2015, from £43.0 billion to £45.4 billion.

Seamus Nevin, head of employment and skills policy at the Institute of Directors, said:

“Businesses are committed to training and developing their staff, but with demand for skills on the rise, we need to make sure that the apprenticeship levy has the flexibility required for firms to continue to train according to their needs.

“In the short-term, the government needs to ensure that employers can continue to get access to the skills they need from abroad. In the longer run, schools need to get careers guidance right so that young people and parents are aware of the opportunities in new and emerging sectors of the economy.”

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