UK Business Barometer

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Question topics in the June Survey included aspects of recruitment, pressures on pay and profitability, providing advice on Corporate Social Responsibility generally and on environmental and sustainability issues specifically, and the outlook for net employment levels. As this was the end of the quarter, the questions included 5 regular quarterly questions. The trends charts can be found at www.ukbab.ac/trends.html .

168 Business Advisers responded to this Survey.

Survey Findings

References and qualifications are required as a basic part of the recruitment process for most occupations. The UK Business Advisers Barometer (UKBAB) panel were asked if they routinely advise clients to take up references, while the parallel Business Barometer, (UKBB) were asked if they take up references automatically. 73% of responding Advisers do give this advice routinely compared with the 58% of responding Businesses that automatically take up references.

Fewer Advisers routinely advise clients to ask for certificates - 57%, although 34% occasionally do.. This compares with 29% of Businesses that automatically advise clients to ask for certificates and 47% that occasionally do. 10% of responding Advisers never advise clients to ask for copies of certificates and 25% of UKBB respondents never require copies of certificates.

The question about pressure on pay levels was put to the UKBB panel with respect to the pressure within their own businesses. Both Surveys found that very few businesses were experiencing no upward pressure: only 6% in the UKBAB and 7% in the UKBB. Generally UKBB respondents were more aware of upward pressure than UKBAB panellists, with 43% of UKBB experiencing it significantly or very significantly, compared to 21% of UKBAB panellists who perceived clients to be undergoing significant or very significant upward pressure on pay. 6% of UKBAB panellists didn't know.

Compared with a year ago, the balance of UKBAB panellists' responses were towards higher profits, with 24% saying clients' businesses were more or much more profitable and 14% saying that clients' businesses were less or much less profitable, while 55% were neutral and 7% didn't know. The UKBB panel was asked if their own businesses were generally more or less profitable, and again the balance of their responses was towards greater profits, with 35% saying that their businesses are more or much more profitable than last year and 25% saying that their businesses are less or much less profitable.

The Government would like to encourage Corporate Social Responsibility (CSR) .Environmental and sustainability issues are a substantial part of CSR. The whole topic area is becoming increasingly emphasised and more information is now more widely available.

At the moment only 15% of the UKBAB respondents give advice on the practicalities of CSR to a high or fairly high extent, and 36% do not advise in this area. Only 16% of UKBB panellists feel greatly or fairly greatly in need of advice on CSR, and 32% feel that they need no advice at all on the practicalities.

On environmental and sustainability issues a larger percentage of advisers are active, with 34% from the UKBAB saying that they cover these issues highly or fairly highly, but with 17% who do not advise in this area. Results from the UKBB show that 15% of UKBB respondents feel that they greatly or fairly greatly need advice, while 30% say they don't need any.

42% of respondents expect net employment levels in client businesses to increase over the next year, and 4% expect the increase to be over 10%. Of the remainder, 48% expect the same level of employment and only 8% expect a decrease. Less than 1% expect decreases by 10% or more.

Trends Questions

The average number of clients seeking business advice continued to increase in the June quarter, but at a lower pace than in the March quarter.

There was again an increase in the number wanting to start a business but not as strongly as in the March quarter.

Ability to gain access to finance dropped back slightly overall, to just above the level in June and December 2003.

The number of Advisers clients finding that there is a shortage of skilled labour increased on average during the June quarter. This is consistent with the findings of the UK Business Barometer.

In the June quarter, Advisers were on average more optimistic about the continuance of their clients trading over the next year. 67% thought that up to 10% of their clients might cease trading compared with 66% in the March 03 quarter, but there was a decrease in expectations of higher numbers of business cessations :17% in June, compared with 22% in March thought that over 10% might cease trading.

Views expressed are those of individual panellists and may not represent those of the IBA or the University of Nottingham.

I have had a massive increase in the number of clients complaining about the complexity of the tax system and the speed of change. When they ask me if I can deal with matters for them they baulk at the price, not because they consider me too expensive but more because they are now having to pay to have something done which they didn't have to do previously. They also consider that the Government are looking for easy(minimum political fallout) targets to tax and for anybody to pass the Governments work on to.

Most of the businesses I become involved with are only realising 30-40% of their true potential. Just imagine what a tremendous effect we could have on the economy if all SME's realised their full potential.

In Hull and East Riding, finance is easier because homeowners suddenly have a lot of equity - house prices hadn't moved in thirteen years and then doubled in two.

I'm tempted to suggest that more multiple choice questions about specific industry sectors might yield more revealing statistical information than the general questions about level of intervention/starts or staffing. I think this is all the more highlighted by questions about environmental/social responsibility policies, i.e I suspect this is of less relevance for say a home-based sole trader consultancy practice than manufacturers or established companies at the larger end of the SME spectrum, yet what proportion of clients are the latter in comparison?

There has been a significant increase in demand for well qualified electronics/communications engineers. Also several universities are trying to utilise well qualified management consultants as coaches to clients or to team for other business clients.

Easy to understand, easy to complete

This survey is the most relevant I have seen in six months.

Some answer ranges are too limited. For example I would expect that about 2% of my clients will cease trading this year, but they will be categorised in the "up to 10%" band.

Survey is short - I find it easier and more interesting to take part

Would be useful to have a final question asking for any particular areas of concern, for example, the mass of regulation that small businesses have to deal with. The question about small businesses ceasing could give rise to a misleading understanding of the reply.Many small businesses undoubtedly would cease if their owners could find a job elsewhere, but just keep going because no alternative is available.

Maybe the survey could have asked for a male female split, but otherwise i thought it was good.