A CBI survey of over 800 businesses- supported by Deloitte and Hays- shows that 70 % of respondents plan to increase or maintain their innovation spending following the vote to leave the EU. Only 7 % plan to reduce their investment. Last year business invested almost £ 21bn on innovation, allowing British firms to develop

cutting-edge products and services, attract global investment and expand internationally. The challenge for businesses is that while the UK innovation system has world-class attributes, it does not currently match their ambitions. Businesses rate the UK as 10th in the world for innovation. While some firms view the UK as a world-beater in areas such as access to scientific

research( 35 %) and tax incentives to support investment( 30 %) – the UK lags behind in other critical areas. Businesses rate the UK as a follower in areas such as partnering with external companies( 21 %) and grant funding( 14 %). In order to support businesses’ ambition to make the UK an innovation powerhouse, the CBI is calling on government to commit

to a long term-target of 3 % public and private spend on R & D. Looking ahead to the upcoming EU negotiations, firms have a number of top priorities that will enable them to innovate in the future – access to skills( 66 %), tariff-free access for goods( 41 %) and keeping common regulatory standards( 38 %). Carolyn Fairbairn, CBI director-general, said:“ The UK will need to work hard to become the front-runner in global innovation, creating a pioneering economic

role for itself in the world that drives prosperity in every corner of the UK.“ Innovation is the nucleus of future economic and social development, so it’ s encouraging that seven out of ten firms will keep up- or even raise – their spending on new technologies and work practices to grow their business.“ As we prepare to depart the EU, this shows that firms are rolling up their sleeves and looking to make the best of Brexit.“ Spending on innovation generates jobs and economic

growth across the country, offering solutions to the challenges we face today and in the years ahead from improving healthcare and mobile technology to a new generation of autonomous vehicles.“ While the UK has many innovation strengths to build on, businesses are worried that the country is too much of a follower in the global economy, with the lack of access to technical skills a grave concern for ambitious firms.”

www. cbi. org. uk

The average amount written off by UK SMEs in the last year is £ 11,708, representing just under £ 50 billion in written off debts, or £ 134 million every day. According to the study conducted among 500 small businesses owners, medium-sized businesses with between 50 and 249 employees are the worst affected by delayed payments with a quarter( 24 %) of invoices remaining unpaid after their debtor day period or not at all. Firms of this

size lose an average of £ 33,750 a year through unpaid debts. One-in-five( 18 %) SMEs said they had lost contracts due to cash flow problems. In order to mitigate the impact of late payments, growing numbers of SMEs are turning to invoice finance to secure reliable cash flow. While 8 % of firms said they currently use invoice finance an additional 19 % of business owners plan to use it in future including 11 % in the next 12 months.

Amicus Commercial Finance provides a revolving working capital facility. Its‘ Intelligent Cash flow’ solution is user friendly, so firms can easily access working capital. John Wilde, managing director of Amicus Commercial Finance, commented:“ Our research shows

that not only is there a reliance by many UK SMEs on clients’ invoices being paid within the debtor day period, but that despite this, significant amounts of debt are being written off due to non-payment.” According to the research, the biggest challenges caused by

cash flow shortages included paying suppliers, cited by 41 % of business owners, meeting debt repayments( 30 %), buying inventory( 29 %) and paying staff( 24 %).

amicuscommercialfinance. co. uk /