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22 February 2012
Last updated at 16:06 GMT

The US president has seen recent success on extending the payroll tax cut

US President Barack Obama is to propose cutting the US corporate tax rate from 35% to 28%, and closing loopholes, as part of a larger push for tax reform.

Mr Obama previously called for corporate tax overhaul in his State of the Union speech.

Republicans also propose lowering rates, but Mr Obama’s plan is thought to have passing are thought to be slim.

Correspondents say the president is using the plan to spark a debate on tax reform in an election year.

The plan does not include any overhaul of the individual tax code, according to reports.

Treasury Secretary Tim Geithner is to unveil the full details of the plan on Wednesday, according to reports.

Loophole tax rate

The US currently has one of the top corporate tax rates in the world, but loopholes and other subsidies mean many companies pay a much lower effective tax rate.

According to the Congressional Budget Office, total corporate federal taxes represented 12.1% of US profits in 2011.

Republican Representative Dave Camp and presidential hopeful Mitt Romney have proposed a 25% rate, while other Republican candidates have suggested rates as low as 12.5%.

While both parties have expressed interest in removing tax loopholes, there is disagreement on which subsidies will be need to be cut in order to make up for revenues lost through lowering the standard rate.

Removing the tax loopholes would be likely to raise tax revenues overall, with some companies paying more or less under the current system.

As part of the proposed plan, Mr Obama has suggested lowering the tax rate to 25% for manufacturing businesses and continuing research and development-based tax credits.

While the announcement fleshes out promises made in Mr Obama’s January State of the Union address, it leaves certain key details, like the percentage of a minimum tax on foreign profits, up to Congress.

Correspondents say that the tax proposal – and the deliberate lack of detail in some areas – is a move by Mr Obama to shift responsibility to Congress.

Republicans in the House of Representatives have routinely opposed Mr Obama’s legislative plans since winning control of the chamber in the 2010 elections.

Article source: http://www.bbc.co.uk/go/rss/int/news/-/news/world-us-canada-17131158

22 February 2012
Last updated at 17:04 GMT

Peacocks went into administration last month

Fashion retailer Peacocks has been sold out of administration to Edinburgh Woollen Mill, saving 6,000 jobs, but 3,100 staff will be made redundant.

It means that 6,000 jobs across the UK will be safeguarded, including around 250 at the head office in Cardiff.

The deal will include 338 stores, 57 concessions, three distribution centres and the head office, said Edinburgh Woollen Miill.

But 224 stores have ceased trading with immediate effect.

The announcement was made by KPMG, joint administrators of Peacocks, who were called in in January.

Joff Pope, joint administrator and associate partner at KPMG, said the deal would ensure the continued trading of a well known name on the high street.

“While it is unfortunate that redundancies have been necessary, we are pleased that we have been able to preserve the majority of the business and jobs,” he said.

Peacocks, with 611 stores and 49 concessions across Britain, had employed 9,100 people.

The Retail Gazette described it as “one of the biggest losses to the high street since the end of the recession three years ago”.

Those stores closing including more than 160 in England, 30 in Scotland, 20 in Northern Ireland and 11 in Wales.

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We are pleased that we have been able to preserve the majority of the business and jobs”

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Joff Pope
Joint administrator

But it went into administration in January having failed to restructure a key £240m part of its total £750m debt.

About 250 staff at the group’s Cardiff HQ lost their jobs following the move, and there will be another 16 job losses in the city after Wednesday’s sale – leaving around 250 staff.

Mr Pope said like many other retailers, Peacocks suffered from a decline in consumer spending due to the tough economic conditions.

“This, combined with a surplus of stores and unsustainable capital structure, led to the business becoming financially unviable,” he said.

But he added that the chain’s strong brand presence and loyal customer following meant that Peacocks attracted a great deal of interest from both trade and private equity bidders.

And he thanked the chain’s management team and staff for their continued assistance “in very difficult circumstances”.

‘Rebuild’

Philip Day, chairman and chief executive of the Edinburgh Woollen Mill Group, based in Langholm in Scotland, said: “We look forward to working with our new colleagues to rebuild the business in what is a very tough economic environment for High Street retailers in the UK.”

Mr Day said he hoped there would be scope to save more jobs and stores from those being forced to close due to performance issues and overhead pressures.

“As you can imagine, there will be a considerable amount of work to undertake over the next few months to stabilise the situation, turn this business around, get the supply chain moving again and excite the customers with great products,” he said.

Barclays and Santander banks have agreed to help Edinburgh Woollen Mill Group with funding for the acquisitions.

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We wait to see the full details of how this announcement will exactly affect employees of Peacocks and we will provide all the support we can to those who face losing their jobs”

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Carwyn Jones
First Minister

Mr Day the acquisition would give further depth to the group’s range of trading profiles and assert its position as one of the UK’s leading High Street fashion and clothing retailers.

First Minister Carwyn Jones said he welcomed the fact that Peacocks would still have a future and employ a large number of people.

“The retention of the HQ in Cardiff in particular is good news,” he said.

But Mr Jones added: “We wait to see the full details of how this announcement will exactly affect employees of Peacocks and we will provide all the support we can to those who face losing their jobs.”

Welsh secretary Cheryl Gillan welcomed the sale.

“This buy-out signals a fresh start for the company and many of its employees, although sadly I understand there will be redundancies,” she said.

Welsh Liberal Democrat enterprise and business spokeswoman Eluned Parrott AM added: “The outcome for Peacocks could have been so much worse and a pooling of resources with Edinburgh Woollen Mill is a very good fit, avoiding the danger of asset stripping and hopefully the closure of adjacent stores.”

Plaid Cymru economic spokesman Alun Ffred Jones AM said it was “hugely important” for the Welsh economy that the head office remained in Wales, which had been confirmed.

“Many people will be relieved to hear that their jobs have been saved, however my sympathies go to those workers who have lost their jobs,” he added.

LIST OF PEACOCKS STORE CLOSURES:

• MIDLANDS: Redditch, Longton, Corby, Worksop, Telford (2), Wolverhampton, Tunstall, Brierley Hill, Scunthorpe, Bedford, Mansfield, Nottingham, Derby, Coventry (2), West Bromwich, Oswestry (joint with Bonmarché), Merry Hill, Leicester, Halesowen (joint with Bonmarché), Hanley, Stafford, Worcester, Sutton Coldfield
• SOUTH/S EAST/EAST ENGLAND: Southampton (Portswood Rd), Ashford, Gravesend, Grays, Slough, Newmarket, Fulham, Tooting, Ilford, Brentwood, Barking, Bishop’s Stortford, Wokingham, Chatham, Crayford, Great Yarmouth, Leigh Park, East Ham, Shepherd’s Bush, Lewisham, West Ealing, Dartford, Staines, Newbury, Deptford, Hoxton, Wood Green, Forest Gate, Stratford, Leyton, Horley, Swanley, Ware, Royston, Basildon, Brighton, Chelmsford, Harlow, Erith, East Dereham, Uxbridge, Hemel Hempstead, Crawley, Banbury, Feltham, Newport IOW, Reading, Harringay, Southampton city, Lakeside, Thanet, Folkestone, Bury St Edmunds, Maidenhead, Wembley, Basingstoke, Newbury, Aylesbury, Canterbury, Kilburn, Watford, Woking, Norwich, Swiss Cottage, Hitchin, Bexley Heath
• NORTH/NORTH EAST ENGLAND: Hull (3), Middlesborough, Pontefract, Peterlee, Halifax, Killingworth, Seacroft (Leeds), Spennymoor, Sunderland, Rotherham, Brighouse, Durham, Huddersfield, Leeds – Crown Point, Doncaster, Metrocentre Gateshead, Thornaby, Newcastle upon Tyne, Sheffield city centre, Wakefield
• NORTH WEST ENGLAND: Winsford, Barrow in Furness, Old Swan, Ellesmere Port, Huyton, Chesterfield, Kendal, Stockport, Liverpool (2), Warrington (Bridge St), Workington, Birkenhead, Southport, Manchester (2), Wigan, Blackpool, Preston, Birchwood (relocation), Cheetham Hill, Chester, Bury, Blackburn, Carlisle, Burnley, Bromborough
• NORTHERN IRELAND/IRELAND: Bangor (Ireland), Craigavon, Carrickfergus, Antrim, Ballymoney, Banbridge, Ballynahinch, Ballyclare, Agherafelt, Lisburn, Ballymena, Portadown, Belfast (3), Londonderry, Cookstown, Coleraine, Belfast city centre, Bloomfield – Bangor (Northern Ireland)
• SCOTLAND: Kilmarnock, Port Glasgow, Saltcoats, Dunfermline, Blairgowrie, Leith, Dumfries, Clydebank, Cumbernauld, Dumbarton, Coatbridge, Hamilton, Glenrothes, Motherwell, Greenock, Meadowbank, East Kilbride, Dundee, Aberdeen (2), Falkirk, Inverness, Stirling, Glasgow Forge, Livingston, Elgin, Kirkcaldy, Cameron Toll, Strathkelvin, Musselburgh
• WALES/WEST: Market Drayton, Whitchurch (Shropshire), Birmingham (St Andrews), Swadlincote, Maindee (Newport), Tewkesbury, Poole, Boscombe, Barnstaple, Tredegar, Exeter, Carmarthen, Tiverton, Llanelli, Yeovil, Nailsea, Bournemouth, Fishguard, Morfa Swansea, Parkstone Poole, Bristol (2), Taunton, Cardiff city centre x 2, Llanrumney (Cardiff), Llanelli – Parc Trostre, Cheltenham, Yate, Wrexham (relocation), Flint, St Austell, Launceston

Article source: http://www.bbc.co.uk/go/rss/int/news/-/news/uk-wales-17128141

22 February 2012
Last updated at 10:29 GMT

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Peugeot

Last Updated at 22 Feb 2012, 10:39 GMT

*Chart shows local time

Peugeot shares have jumped 15% after the firm said it was in talks about possible “co-operations and alliances”.

France’s labour minister said that Peugeot was in talks about a strategic alliance with General Motors.

Peugeot would not confirm which companies it was talking to. GM said it routinely talks to other firms in the industry.

Last year, Peugeot’s car-making business reported a loss due to tough conditions in the European car market.

In a brief statement on Wednesday, Peugeot said: “In the context of its globalisation strategy and improving its operational performance, PSA Peugeot Citroen looks at potential cooperations and alliances.”

“Discussions are taking place and there can be no certainty at this stage that these discussions will result in any agreement.”

France’s La Tribune said that, if the talks are successful, GM and Peugeot could announce an alliance at the Geneva car show in the first week of March.

London’s Financial Times said the companies had been talking about developing vehicles together that would be sold under their respective brands.

The report also said that Peugeot’s chief executive, Philippe Varin, visited GM’s headquarters in Detroit in January for a dinner of industry chief executives on the sidelines of the city’s motor show.

A deal would require the approval of the Peugeot family, which still holds 30% of the company’s shares, and because of the way those shares are structured, the family has 48.3% of voting rights among shareholders.

GM reported record annual profits last year of $9.2bn (£5.8bn), but its European operations made a hefty losses of $747m and GM is planning further costs cuts for the business.

Article source: http://www.bbc.co.uk/go/rss/int/news/-/news/business-17123674

22 February 2012
Last updated at 00:01 GMT

The CBI’s John Cridland said targeted changes to the tax system could create growth opportunities

The CBI is calling on the government to give a £500m boost to business in the Budget through a series of “targeted and modest” tax cuts.

In its submission ahead of the 21 March Budget, the business lobby group has urged the chancellor to deliver “Plan A plus” to bolster growth and investment.

It proposes a new tax cut for firms that invest in infrastructure projects.

The group also wants a simplification of taxes on carbon emissions and a lower rise in air passenger duty.

The CBI claims many businesses have the potential to grow and create new jobs, but confidence in the private sector remains weak.

“The chancellor must use this Budget to score the growth and investment policy goals he put forward in his Autumn Statement,” said CBI director general John Cridland.

“With our economy firmly under the international spotlight, there is no time to lose: Plan A plus must become a reality.

‘Not home and dry’

“We’re calling on the government to make some targeted changes to the UK tax system, which could make an impact on business decisions and create new opportunities for growth.”

The CBI also wants to ensure that existing policies set out in the Autumn Statement – such as credit easing, designed to make it easier for businesses to borrow – are fully delivered.

The shadow chancellor Ed Balls has called for tax cuts in the Budget, suggesting a cut to VAT and a 3p income tax cut for a year.

But Mr Cridland said he did not think Mr Balls’ call for more significant tax cuts was affordable.

He said increasing borrowing by a further £12bn was not the right solution, particularly when the negative outlook for the UK’s credit rating was a signal that the UK was not yet “home and dry”.

Article source: http://www.bbc.co.uk/go/rss/int/news/-/news/business-17119792

22 February 2012
Last updated at 00:01 GMT

Some 57.1% of firms plan to boost their marketing budget in 2012, while 18.6% plan to cut it

The number of UK businesses planning to increase their spending on marketing has risen sharply from last year, a survey suggests.

A net proportion of 38.5% of businesses intend to raise their marketing budgets this year, according to a survey of more than 2,000 firms carried out by research group Mindmetre.

In 2011, the survey showed no net increase in companies raising spending.

Mindmetre said the results showed that business confidence was growing.

The survey comes at a time when many fear the UK will slip into recession.

On Tuesday, a survey by the Institute of Directors showed one in three UK company directors thought there was a high or very high risk of the UK falling into recession this year.

In Mindmetre’s research, 57.1% of companies said they planned to boost their marketing budget in 2012, while 18.6% said they intended to cut it.

In 2011, 41% planned to increase marketing spend, and 42% planned to cut back.

The survey, which covered businesses of all sizes, also showed a higher proportion of big businesses (those with more than 1,000 employees) intended to raise their marketing budget than small businesses.

Article source: http://www.bbc.co.uk/go/rss/int/news/-/news/business-17117623