Other UK News In Brief

VAT Rise Hitting Smaller Businesses

Almost a third of Britain's small and medium-sized companies say they will need more funding to cope with the government's increase in VAT sales tax, a survey showed today. The survey by Aldermore, one of a clutch of new banks to spring up in the wake of the credit crisis, found 35 percent of SMEs surveyed also feared the VAT rise would strain their cash flow. The Conservative-led coalition government increased VAT to 20 percent from 17.5 percent on January 4. Aldermore Chief Executive Philip Monks said: "The VAT rise will only add to the financial squeeze faced by many SMEs. With many of the big banks still reluctant to extend credit, the VAT rise could strain working capital to breaking point."

Domestic Heating Oil Supplies Addressed

With the recent severe weather causing significant concern about the domestic oil market and the liquefied petroleum gas market, Charles Hendry, Minister for Energy has released a statement. He said: “I fully recognise the difficulties people have experienced with rising prices and supply problems.” Underlying many of the complaints are concerns about the challenges of supplying oil and gas to rural communities and whether the current market structure provides the reassurance that consumers can get fuels for heating when needed at a price they can afford. The Office of Fair Trading is currently consulting on its annual plan to help determine its work programme for 2011/12. This includes proposals to prioritise markets impacted by high, rising and volatile commodity prices. The off-gas grid energy market is clearly one such affected market. Mr Hendry said: “In response to the Office of Fair Trading consultation and mindful of the various issues highlighted by the recent severe weather, I have written to the Office of Fair Trading asking it to bring forward its competition and consumer study into off-grid energy. In addition, I have asked the Office of Fair Trading if the study could explore the longer term consumer issues such as lifetime payback, consumer standards and labelling for alternative energy sources or supplies. Such a study would provide an independent assessment of the off-grid market and establish what further action may be necessary to ensure it works properly. I welcome the Office of Fair Trading's support for this area, and look forward to seeing its conclusions in advance of next winter so the lessons from this winter can be learned and any necessary changes made.”

Wigan Firm Sentenced After Worker's Finger Severed

A Wigan manufacturer has been sentenced after a worker lost part of his index finger in a drilling machine. The 46-year-old employee from Leigh was drilling holes through an iron bar when his right hand got caught in the drill. His index finger was severed below the first joint, his middle finger was badly cut, and his ring finger was dislocated. B&B Group Ltd was prosecuted by the Health and Safety Executive (HSE) following the incident at its factory on Dobson Parkway in Ince on 24 September 2009. The HSE investigation found the company failed to provide a machine guard around the drill bit to protect employees working on the equipment. The court heard the drill took 30 seconds to stop after being switched off. It was still rotating as the worker reached to turn it on again after moving the iron bar to drill another hole. The glove on his right hand got caught in the rotating mechanism and pulled his hand into the machine. B&B Group Ltd pleaded guilty to breaching the Provision and Use of Work Equipment Regulation. The company, of West Bridgewater Street in Leigh, was fined £12,500 and ordered to pay costs of £1,703 at Trafford Magistrates’ Court in Sale on 21 January 2011.

(BMcN/GK)