FSB

FIGURES SHOW NEED FOR ACTION

Figures from the Office for National Statistics (ONS) showed that UK gross domestic product (GDP) and total exports dropped by 7.8% and 10.3% respectively in February compared to the same month last year.

Federation of Small Businesses (FSB) national chairman Mike Cherry said: “If you’d asked small business owners at this time last year about Covid-linked disruption they wouldn’t have dreamed it would be continuing so far into the future. These stark figures are a reminder that this lockdown needs to be the last!”

With the vaccine rollout, reopening and a buoyant summer trade predicted in Cornwall, small business confidence has started to improve but a sizeable share of employers are concerned about redundancies with the job retention scheme winding down over the coming months.

In this ONS update, consumer-facing service businesses were shown to have been especially hard hit and even though there is light at the end of the tunnel, the FSB is urging all shoppers to keep supporting local small firms wherever possible to help boost recovery.

The FSB is also asking the Government to now turn to its build back better agenda: cutting the non-wage costs of employment to spur hiring, ending a debilitating late payment crisis that has worsened through lockdowns, and taking innovative approaches to emergency debt to realise meaningful economic value.

Alongside the effect of the pandemic we have EU transition. International sales are way down on where they were at this time last year. A fifth of small exporters have halted sales to the EU temporarily and some have already given up on selling into the bloc on a permanent basis.

The FSB concern here is that unless further action is taken to alleviate the new admin facing exporters, which tend to be our most innovative and profitable firms, we risk losing them all together.

As a further move to improve export prospects, the FSB is urging policymakers to urgently pull out all the stops to strike ambitious new trade deals, which include small business chapters, with high-growth economies where there’s appetite for UK goods, not least the US.

These ONS figures should be treated as a wake-up call and the FSB is calling for action to ensure that Government focusses attention on creating an environment where there can be swift improvement.

A LITTLE BIT OF HELP OPEN TO ALL…

Covid-19: A4 Printable we are open signs: Printable signs and social media cards to let your customers know that you are open for business are available to download and you can also use our social media images on the fsb.org.uk website to welcome your customers back and let them know you are Covid compliant. You can also visit our online Knowledge Centre firstvoice.fsb.org.uk for help, advice and guidance and find out about our about helpful webinars and podcasts or by visiting our fsb.org.uk/event-calendar where you can find hundreds of free online networking and business support events to attend right across the UK.

We have created the FSB skills hub to support you with the resources you need to ensure business continuity in the immediate future and for the longer term. Find answers to your legal questions, demystify the digital world, build a robust business model and unlock the potential of FSB membership.

fsb.org.uk/skills-hub

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CONFIDENCE REBOUNDS AS SHOPS RE-OPEN

Close to two thirds (58%) of small businesses expect their performance to improve this quarter, and fewer than one in three (31%) expect theirs will worsen, according to the latest FSB study of almost 1,700 business owners.

With trading restrictions now easing across England and Wales, the business group reports that its UK SBI confidence measure has risen to +27.3 in Q1 of this year, up from -49.3 last quarter. The index is at its highest level since Q3 2014, when it hit +41.0, and is in positive territory for the first time since Q2 2018. More than half (51%) of those surveyed for the SBI expect their revenues to increase over the coming three months, the highest proportion since the summer of 2015. Fewer than one in four (24%) expect sales to fall – the same figure stood at 84% at this time last year. The majority (53%) aspire to grow their firms over the next 12 months, the highest share since Q3 2019, marking a 22 percentage point jump compared to the same period last year. Such positive news is welcome, although from a trading position of almost nothing going to something it is hardly surprising to see that a more positive outlook is recorded. For those able to resume trading the only way really is up. However, there are many trials left to contend with. As an example, with the job retention scheme starting to wind down over the coming months, one in seven (14%) small firms with staff say they are likely to make some or all of their team redundant this quarter. We must keep our nerve!

A RUM DO

The English Spirit Distillery had Cornwall’s taste buds all of a quiver last month, with news of a Cornish rum, filled with the hearty flavours of a Cornish pasty.

We were told “the white rum is blended with the finest grass-fed minced beef, south west grown Maris Piper potatoes, and Dr John’s family gravy, the recipe of which has been passed down from generation to generation”.

The base spirit, St Piran’s Cornish Rum, is “rammed with sweet raisin flavours and smooth caramel notes, daringly paired with the savoury palate of a Cornish pasty”.

You’d be a fool not to be enticed by that. The rum was launched on April 1.

MAJESTIC PAYS TRIBUTE

St Austell Brewery has secured national listings for two of its flagship beers in Majestic – the UK’s largest specialist wine retailer.

Tribute Pale Ale and Proper Job IPA are now available from the Majestic website and in 200 stores nationwide.

The UK’s premium bottled ale category has grown in value by 24% over the past year. As a result of this rising demand, and the recent growth in at-home drinking, Majestic is continuing to expand its beer range.

Andrew Turner, MD of St Austell Brewery’s Beer & Brands, said: “We’re very proud to see two of our great brands on the shelves in Majestic stores across the country. We hope that existing fans of our beers will be pleased to hear about the new listing, and that Tribute and Proper Job will appeal to Majestic customers looking to try something new.”

INVESTING IN NEW TECH

A fifth-generation, family-owned potato farm in Cornwall has invested in new equipment that will see productivity more than double, after securing a £400k funding package from Lloyds Bank.

Situated in Lanlivery, Colwith Farm is a leading grower and supplier of premium quality Cornish potatoes, distributing to wholesale food suppliers and brands including McCain and Burts Crisps.

The six-figure loan from Lloyds Bank has enabled the business to install the latest robotic picking equipment to speed up efficiencies when bagging potatoes – increasing productivity on the grading line by 25%. The 200-acre farm is also home to Colwith Farm Distillery, a plough to bottle distillery which uses the farm’s potatoes to make its own single estate vodka and gin.

Clare Dustow, who manages the farm with her husband Chris, believes the new technology has come at a pivotal time to allow the business to continue to grow.

“Investing in the efficiency of our processes is absolutely key to our growth,” she said. “Over recent years we’ve seen a surge in demand for our premium potatoes and investing in new robotic technology allows us to speed up the picking process and fulfil more orders for our customers.”

SMELL THE COFFEE

Rick Stein has opened a specialty coffee shop in Padstow, in partnership with Origin Coffee.

The new Rick Stein Coffee Shop marks the arrival of the first speciality coffee shop in the area. Spearheaded by Charlie Stein – director of drinks across all Rick Stein restaurants – it is housed in the former Rick Stein Patisserie, which has undergone a complete redesign Jill and Ed Stein. Stein has built a stained wood service bar with bespoke zinc countertop – complementing exposed brick walls and the modern, paired-back style of the shop.

Origin founder Tom Sobey said: “I’ve worked with Steins for many years and this new collaboration with Charlie has been incredibly exciting to work on. It brings together the very best in speciality coffee; an exceptional coffee menu, world-class machinery, talented baristas and delicious food all within a stunning coffee shop interior. It’s testament to Stein’s progressive vision.”

Charlie Stein added: “Tom and his team at Origin have been the perfect partner for our new venture. We’ve worked together for over 15 years already, and I’ve always been impressed with their unrivalled knowledge of and enthusiasm for great quality coffee. I’m extremely proud to be opening our first speciality coffee shop in Padstow and to be working with such excellent Cornish businesses.”