One tenth of UK retail banking business is for sale.

The UK Treasury announced that the European Commission has approved the break up and sale of some of the assets of the two major state owned banks.

The Treasury will provide an additional £25 billion to the Royal Bank of Scotland and almost £6 billion more to Lloyds. The arrangement will make the Royal Bank of Scotland more controlled by the government, with the percentage of public ownership increasing from 70% to 84%.

Lloyds will be no more accountable to the government, which owns 43% of the bank.

In return for government support, the Royal Bank of Scotland will sell 318 branches, 14% of its UK network and Lloyds will sell 600 branches, about 20% of its UK network.

The Royal Bank of Scotland is offering for sale businesses with 1.7 million clients, including 230,000 small business clients and £20 billion in assets. It is also required to sell its insurance businesses, plus its international merchant services business which processes debit and credit card payments, and its interest in its commodity trading business.

Lloyds is selling almost 5% of UK current personal accounts and about 19% of its mortgage assets.

Treasury said that the buyers must be small or new businesses to ensure diversity and competition.

As most of the developed world is now out of recession, and the UK is expected to have positive growth in the next quarter, this restructure will affect the small businesses that are expected to provide new jobs to reduce the current high employment rate.

We’re assisting UK small businesses by sending them prospective customers, at no cost to them, from our Local Search facility in our UK Business Directory. Most of the 1.6 million business listed in our directory are small firms.

Monte Huebsch, CEO

UK small businesses are confident despite the continuing negative economic growth.

CBI’s Trends Survey of 424 small UK firms said that while demand for products, services and manufactured goods continued to be down over the last three months, the businesses expected the next quarter to improve. Their level of confidence is at the highest level since April 2007.

40% of the all the businesses surveyed said new orders declined in the past three months and 24% said there was an increase. The output of small manufacturing firms was down for 35% of the firms and up for 22% of them.

The US economy has returned to growth of .9% in the quarter from July to September, after 4 quarters of negative growth. The UK economy recorded a loss of .4% for the same period.

The stimulus measures taken in the US were more substantial than the action taken in the UK. The US Commerce Department said that, in the quarter, demand for manufactured goods increased by an annualised rate of 22%, the best result since 2001, largely as a result of the Government’s cash for clunkers car scheme.

The US housing market for housing products was up 23% annualised, the largest increase since 1986, a result of the government’s first home buyer’s US$8,000 tax credit. US exports also increased, by 21% on an annualised basis, the best result since 1996.

With the US, Japan, Germany and France now out of recession; the UK should go back into positive growth quickly.

Small UK businesses are resilient and will recover to help reduce the number of unemployed. We help them by sending them qualified prospects from our Local Search Facility in our UK Business Directory with no cost to them. There are 1.6 million businesses listed in our directory and most of them are small firms.

Monte Huebsch, CEO

Small UK businesses think the recession will end in early 2010.

In a survey of 7,200 small UK businesses, BT Business reports that 75% of them think the business cycle will turn up next year with 35% saying they think it will improve in January next year.

Since there are 4.7 million small businesses, the positive response will to some extent be self fulfilling.

In addition, in the survey, 45% of small firms reported that their business had  been improved due to the pressure exerted by the economic slump, and 41% say that they will diversify as the financial climate improves.

While half say that their business revenue is currently down, with 25% saying the drop is over 10%, 60% are upbeat about their expected results next year.

During the downturn, half of small businesses borrowed from family and friends rather than their bank.

The survey reports that small firms want more easy access to finance, legal advice and assistance in developing their business.

However, the restructuring firm, Begbies Traynor, says that over 130,000 small businesses are in financial trouble and that in previous recessions, small business failures reached a peak between one and two years after the UK economy returned to growth.

Ernst and Young agrees with them, suggesting that it will be 2012 before economic growth is restored to its long term average.

So small companies think that the end of the economic gloom is in sight but it appears that there will be more pain for them as growth returns.

We help UK small firms by providing them with qualified prospects from our Local Search facility in our UK Business Directory, at no cost to them. Most of the 1.6 million businesses listed in our directory are small firms.


Monte Huebsch, CEO

The UK government has a goal of getting everyone online within three years.

Research by The Office of Digital Inclusion says that there are 14 million people in the UK who do not have internet access.

The inclusion of these individuals should produce a benefit of £22 billion including £8 billion income provided by additional online sales.

The estimate of the public sector saving is substantial, with £900 to be saved by a more economical contact system with clients, when those currently offline have access.

A number of companies are involved in assisting with the project, including Google and BT.

£12 million in funding will be provided to a number of organisations, to be controlled by Odcom, the regulator.

An essential aspect of making the project a success is for broadband to be less expensive and have wider coverage, particularly to rural areas.

Organisations which use self service to improve economies in providing their services will benefit greatly, with fewer employees required. Also, the option of working away from an office becomes more possible.

The research indicates there would be an income increase for unemployed people who gain online access due to enhanced work options and incapacitated individuals would also benefit in being able to work remotely.

As more commerce and communication occurs via the internet, not being online is a major issue.

We help effective communication by having extensive listings on Google for our UK Local Search facility in our Business Directory. We provide prospects to the 1.6 million businesses listed, at no cost to them.

Monte Huebsch, CEO

One in three UK small businesses has been affected by fraud.

Research from Fellowes and the National Fraud Authority reports that a third of small UK firms have suffered loss due to fraud and only 3% of UK consumers are totally confident that their information which is held by firms with whom they deal is secure.

A guide for businesses which spells out the risks, gives advice on securing business information and how to deal with a security breach, is now available: http://www.stop-idfraud.co.uk .

The research shows that two thirds of firms have no real procedure for dealing with documents with confidential details and that a third of employees just dispose of those documents by putting them in the waste paper bin.

44% of UK staff does not shred documents which contain confidential details. Only 54% check financial statements, only 45% look for missing mail and 31% do not report lost sensitive information.

62% of companies fear financial loss from fraud and 43% are concerned about harm to their reputation. Over 70% of UK staff thinks their companies should take more care in the handling of documents containing confidential information.

The Government says that the UK economy loses £1.2 billion a year due to identity fraud. 60,000 firms have been affected this year, a 36% increase over the same period last year.

A business which is exposed to fraud may have a difficult time surviving. The disruption to normal business practices caused can be difficult at best. The attitude that it happens to someone else is common but not realistic.

We check the identity of firms listing in our Business Directory for our UK Local Search facility carefully by an opt–in and confirmation system. We send UK businesses qualified business leads with no cost to them, our directory being funded by Google Adsense advertising.

Monte Huebsch, CEO

UK online credit card fraud levels are lower but more sophisticated techniques are now being employed by cyber criminals to access online bank accounts.

Financial Fraud Action UK reports that credit card fraud was reduced to a loss of £232 million in the 6 month period this year, a drop of 23% from the same period a year ago.

Fraud losses on lost and stolen credit cards are down 6% to £25 million, the lowest figure since 1991.

The credit card companies have been very active in instituting a variety of online securities measures, which are having the desired effect.

The introduction of additional online security techniques, including the need to use a password when making an online purchase, has meant a reduction in fraud of 18% in internet, mail order and purchases via the telephone. Also, the use of a PIN in UK retail establishments has further reduced the fraud level.

However, online banking fraud increased by 55% in the first half of 2009. Losses from online banking fraud were £39 million in the first six months of this year.

Phishing is a major contributor to the banking fraud increase, with 26,000 of those actions, a 26% increase, over the six months.

This technique targets consumers rather than banks, which have much more secure procedures. The quality of a false email, asking for bank details to be updated, is very convincing, with an identical look to a genuine communication.

Small UK businesses are especially vulnerable since the volume of the email they receive is increasing on an ongoing basis and most business financial transactions are done online.

While banks may eventually compensate the companies for losses, the disruption involved in suffering a substantial cash flow reduction is very difficult for small firms to deal with.

Caution and a healthy level of scepticism are needed.

We assist small UK businesses by giving them prospects from our Local Search facility in our UK Business Directory with zero cost for them. There are 1.6 million businesses listed in our directory and the vast majority are small firms.

Monte Huebsch, CEO

The UK Post Office now offers business insurance to 95% of small UK businesses.

The UK Post office now can provide business insurance for most types of small UK businesses. 80% of small firms who have a major loss due to fire, accident, or some other event, fail within 18 months because they were not sufficiently insured. 

The Post Office is offering attractive premium rates and covers fire, theft, public liability, professional indemnity, equipment, and interruption to trading due to an accident or breakdown.

The Post Office has staff available to advise what insurance is required by law what additional cover should be considered. 

Small businesses have cut back on many overheads during the economic downturn and the use of professional services and outlays such as insurance have been reduced.

This is a case of where the most vulnerable are also the most exposed and least able to cope with a disastrous event. 

Since many small businesses use the Post Office regularly for business banking, the service should help to ensure that the insurance which is essential to cover the business risks is in force. 

We help UK small businesses by providing qualified prospects to them, without any cost, from our UK Local Search facility in our Business Directory. There are 1.6 million businesses listed and most of them are small businesses. 

Monte Huebsch, CEO