Most people prefer online learning systems as they offer the best opportunity to learn from their comfort level. Education technology is not restricted only to academics and student-level courses.

Various business institutes have also started their studies on online platforms. There are many useful websites and a Microsoft learning portal that provide different types of business courses. These sites have a more straightforward process. The user has to first register over the website, select the course, study the material, give the exam, and the virtual authorized certificate is provided to the candidates.

The main benefits of using online learning courses for the corporate finance business are as follows:

Cost and Time Saving

Physical institutes offer full-time courses for young entrepreneurs, but not everyone can keep aside their office workings to excel in the skills. Plus, the institutes charge massive certificate course fees as the operating cost of the physical institutes are higher. That is why most applicants prefer to register for online courses. There is no restriction for the completion and timing of the course. One can complete the classes according to their schedules. Many of the online courses are free, and many websites offer hefty discounts on the completion of the course. It reduces the overall cost of the course completion.

Learn Operational Financing

No business organisation can perform well without an efficient system for operating its finances. It is a global business demand that businesspeople must learn financing skills. All public, private, and non-profit organisations require the management of finances.

Global companies like to collaborate with individuals who are certified with business courses. Useful online websites have a top-quality study material. The teaching standards and the learning curriculum are high as compared to physical institutes. The best faculties are hired to record the lectures. Review sections, FAQs, accessible definitions, word meanings, recap features, quizzes, test series, etc., offer the best online learning experience.

[ymal]

Improves Business Performance

Poor business and financing skills can lead to losses to a business. The upgrading of business skills is important to sustain the businesses in the competition. This is why online learning courses are considered effective. The one-to-one experience increases the concentration power of the listener and reader. The peaceful online environment increases the learning speed. The facility to save the lectures on the offline mode help in saving listening time. People can enjoy listening to videos while traveling or during free-time.

Online learning is offering people a continuous learning facility. Whether you want to upgrade your business skills, financial skills, or just want to read about the latest trends in the market, online websites are the fastest means of communicating the latest information. As more and more activities have been shifted to the virtual world, it is time to move our learning systems on the internet. Online courses can be a motivation for the young workforce to upgrade their skills while working in the corporates. Different levels of courses are available for different types of people. Select the beginners, medium, and advanced classes accordingly to learn new skills.

Money makes the world go round, and it’s at the centre of our day-to-day lives for a variety of reasons. A 2018 study found that three quarters of Britons were worried about their finances, and further research concluded that over half of UK adults are concerned that their mental health is suffering in relation to money worries. So, what’s the current situation and how can we improve on teaching young people how to manage their finances?

We take a look, with some help from Business Rescue Expert, company liquidation specialists.

The millennial challenge

Millennials have brought a host of gaps in the teaching of finance to the surface, and countless studies have concluded that when it comes to money, this generation haven’t been taught adequate lessons. Millennials’ spending patterns stand in stark contrast to their predecessors; they’re keen to splash out on experiences and don’t often take to the idea of big commitment purchases seriously — for example, houses. Millennial spending habits signify the disparity of their knowledge and attitude towards budgeting — research has found that 60% of these youngsters said they are willing to spend more than £3.11 on a single cup of coffee, while only 29% of baby boomers would splurge for caffeine. A lack of financial literacy in education has undoubtedly played a role in this, with many young people under the illusion that simply earning a lot of money means that you’ll never be in any debt, along with a general unwillingness when it comes to making sacrifices for the sake of budgeting. One survey found that 42% of teenagers said that they wanted their parents to talk more about finances, and a staggeringly low 32% said that they knew how credit card fees and interest worked. Teenage years are pivotal points for learning, so why is financial literacy being left out?

Revised curriculums

Finances are complex and teaching them can require a lot of technicality and practical examples in order to make any sense. Lessons in finance differ from core subjects like English and Science, as they provide life skills which, if not learned, will be detrimental as kids grow older and enter adult life. One UK primary school created its own bank, to combat ‘below average’ financial literacy learning. Despite financial literacy being introduced to the national curriculum in England in 2014, not everyone believes that school is the place for financial education. Some believe the duty should be on parents to teach their children the real value of money and how to approach it. It’s worth noting that in private schools, faith schools, and academies, it isn’t a compulsory part of the curriculum, so many youngsters would still miss out on these lessons. A lot of schools who do incorporate it into the school day compartmentalize it into general ‘citizenship’ lessons, but it’s arguable whether enough emphasis is placed on it here.

The benefits of teaching financial literacy

The areas of financial literacy currently covered under the national curriculum include savings and investments, pensions, mortgages, insurance, and financial products. It’s still a relatively recent introduction to schools, so not all teachers may feel confident in teaching it yet, due to the specialised, complex nature of the topics. There is also the matter of religious differences in the approach to and teaching of these finance lessons. Followers of the Islamic faith are prohibited from using any form of compound interest. This relates to things like conventional mortgages, student loans and car loans, all of which are commonplace in many other cultures.

For this reason, making financial literacy universal, understandable, and an essential part of learning can be difficult. Maths might seem like an obvious place to drop lessons of finance in amongst existing content, but debate is rife as to whether subjects like trigonometry are still deserving for a place on exam papers, when finance lessons could take their place and provide long-lasting life skills.

While there is undoubtedly an absence and lack of depth in financial literacy, these lessons could become more popular in the future. These skills will prove invaluable for youngsters as they progress through life, and they could eventually counteract the stereotype of a financially irresponsible or illiterate millennials.

Technology is transforming almost every area imaginable, but education and recruitment are surprisingly yet to be disrupted, and consider themselves to be relatively early in the adoption of technologies. These technological developments, combined with data analytics and job-specific simulations are at the forefront of driving this disruption, particularly in the financial sector. Below Finance Monthly hears from William de Lucy, CEO of Amplify, who delves into the drive behind technology development in the recruitment departments of finance teams worldwide.

Businesses are now delivering targeted training for companies throughout the fintech ecosystem, providing them with new, innovative ways to enhance the learning environment for prospects, resulting in a higher calibre pool of talent for the client.

It would appear that despite a certain level of volatility existing in the financial sector, leading financial institutions are still chomping at the bit to secure the best candidates, demonstrating the overall buoyancy of the market. Much like certain aspects of the financial ecosystem that is witnessing a transformational shift away from manual, human-oriented tasks, the level of automation and simulation in financial recruitment can reap huge rewards for leading institutions.

Evolution of technology and data allowing real world simulation

Technology and data expectations have never been higher, due to the major advancements in technology that have driven this change. Not only has technology significantly increased the amount of data being generated, but it has also provided affordable and efficient ways to collect and store this data so that organisations can leverage data-driven strategies to innovate, compete, and obtain value from information. With technology upending workflow and processes, tasks that were once handled with paper money, bulky computers and human interaction are now being completed entirely on digital interfaces.

Data analytics have come a long way in recent years. From e-commerce businesses tracking who visits their websites and what pages they visit, technology has moved to the collection of huge amounts of data about consumers and their behaviours. This has led to a huge paradigm shift from focus on products, to focus on consumers and what they want and value. Financial services institutions that use big data to drive their decisions will win the competitive race in the long run.

Education with the implementation of technology

Technology has previously been seen as a disruptive influence in the classroom, however this perception is slowly changing. With apps that change how we shop, eat and communicate, technology is moving at a fast pace, and society is having to adapt alongside it. Education with the help of technology has opened up a world of opportunities for students. From collaboration through the use of emails to easy sharing of information - technology is and will continue to alter the education sector into the future.

Students are now looking at the value they receive for their investment. They want to know how this experience will help to secure a place in their chosen careers, rather than the academic ambitions that their professor may have harboured when they were a student. Technologies can give students the same on-the-job training experiences delivered to clients, which enables them to directly connect with such institutions when they perform.

The simulations of real-life work roles give students a broad experience across the entire industry, from any area including investment bank market-making and sales-trading to portfolio and risk management. The objectives are for students to learn through ‘doing’, allowing them to enhance their academic skills and to better prepare them for their future workplace and their best suited role.

Technology and recruitment within the finance and education sectors

A recent LinkedIn study of 12 global investment banks has found that analysts and associates who left their positions in 2015 had stayed in their roles for an average of 17 months. This compares to a 26 month average in 2005. Furthermore, the study also revealed that some banks are incurring significant costs that are associated with replacing employees who leave.

Bridging the gap between what students are taught in theory, to what happens on a day-to-day basis in an office environment, proved difficult before the implementation of certain technologies. Technology has enabled the disruption of traditional recruitment paths of many major financial institutions which often recruit from only a select few universities and use rigid, automated processes. Along with this, companies are now able to broaden their search and identify talent that may not have been uncovered previously. A candidate could have a distinct ability to perform a specific function outside of their pure academic achievements, which allows for a more diverse workforce and greater overall performance and output.

Technology these days, can give businesses the ability to measure so many different data points over a long period of time. For example, technology platforms can measure how well a potential sales trader, or broker uses voice versus typed communication and how well they can use that communication to leverage client relationships. With this actively taking place over a full-day, or a series of days, it can help to provide corporate partners with graduates who possess soft skills that are required in client facing roles. This can often be hard to find from an initial CV review or telephone interview.

Along with this, technology allows businesses to gather innovative approaches to enhance and revolutionise graduate recruitment, this helps firms find the right candidate for the right role, without having to sift through thousands of CV’s or rely on behavioural data that has been collected from a short game or questions unassociated with the role in question. Due to the innovative approach that technology has enabled, candidates can gain a practical understanding of what their day-to-day role would actually involve, which helps them identify in depth the specific role they can see themselves committing to long-term.

It’s evident that technology is and will continue to revolve and bridge the gap between what students are taught in theory, to what happens in a day-to-day office environment. It has broadened the playing field and identified talents that may never have been uncovered previously. This can lead to businesses becoming more diverse in their workforce and have a greater overall performance and output for their company.

Financial terminology is continually thrown around as we navigate through the different stages of our lives. The need to entirely acknowledge and comprehend what some financial terms mean becomes most apparent when making difficult financial decisions such as how best to climb onto the property ladder and selecting the best saving account or investment product that could provide the greatest return in the future.

With words and phrases in areas such as banking, savings, investments, pensions and mortgages more than likely to feature heavily in an individual’s handling of their personal finances – the expectation would be for them to have a firm grasp of common and recognisable financial jargon. Unfortunately, this does not seem to be the case, as 31% of Brits have shockingly admitted to signing a financial contract without knowing some or all the terminology according to research by Norton Finance.

Interested in financial competency, Reboot Online Digital Marketing Agency analysed findings from YouGov, who surveyed 1,916 British adults to see how confident they were with the meaning of a range of financial words and phrases.

Reboot Online found that ‘savings account’ is the financial term that most Brits are confident about at 92%. Thereafter, 78% claim to be assured by what a ‘cash ISA’ is. In third position, 74% of Brits feel confident enough to know what a ‘building society’ represents and can differentiate it from a normal bank.

Interestingly, despite regularly featuring in the small print of advertising mediums for potentially significant purchases like cars, only 64% of Brits are entirely confident about what a ‘fixed or variable annual percentage rate (APR)’ truly is. Information for immediate release Reboot Online Digital Marketing Agency.

Focusing specifically on the different types of mortgages and the terms related to it - Brits seem most confident knowing what a ‘fixed mortgage’ (72%), ‘mortgage deposit’ (63%) and ‘tracker mortgage’ (49%) is. Contrastingly, Brits are apprehensive about how a ‘shared equity mortgage (58%)’ and ‘offset mortgage’ (57%) respectively work.

On the other end of the scale, the British public were least confident about a ‘spread betting account’, with an overwhelming 67% unsure about its proper connotation. Closely by, 65% are shaky about what ‘corporate bonds’ are. 64% of Brits were equally unclear by a ‘tracker fund’ and ‘self-invested-personal-pension’.

Shai Aharony, Managing Director of Reboot Online commented: “Jargon specifically related to certain sectors and subject matters can be a mind field. Individuals can therefore often get lost in translation when trying to decipher them. Despite this, considering the fact that numerous financial terms have a substantial impact on minor as well as major saving and spending intentions, Brits should be more accustomed to them. This research certainly shows that Brits currently lack the knowledge and confidence to correctly understand a handful of financial terms in a range of important areas such as mortgages, pensions and savings. Going forward, there should be a real drive to educate Brits from an early age on the different aspects of the financial world that will more than likely affect their personal and business matters in adulthood.”

(Source: Reboot Online)

Financial education is a crucial part of any child’s development. However, with research revealing that the UK’s debt levels rising year on year, it’s beginning to look as though not enough is being done to ensure a future of smart spenders.

Financial Literacy

The concept of ‘financial literacy’ has once more become a cause for widespread debate in the UK, with millennials and those following them now being labelled ‘generation debt’.

While there are services and support in place to help Brits better understand how to manage their money, a culture of easy-access finance and convoluted contract leasing terms has left many people in a position where it’s unlikely they’ll ever be totally debt-free.

To put the situation in perspective, research conducted by credit reporting experts Credit Angel has found the following eye-opening personal finance stats:

• The average person in the UK owes £8,000 (this is on top of any mortgage debt)
• 50% of the UK’s population is considered financially vulnerable
• 25 to 34-year olds are the most likely to be saddled with debts
• Over 4 million people in the UK are thought to be in serious financial difficulty
• More than 6 million Brits don’t believe that they will ever be debt free

Is the UK Financially Illiterate?

Looking at these findings, it’s clear that something is missing from people’s understanding of financial management. This is a skill that should be taught from an early age and, as of 2014, the UK government introduced lessons on this very concept into the school curriculum.

While there is a lot of emphasis placed on the practical applications of students’ knowledge, 65% of UK teachers believe the current approach is ineffective.

As the way in which we interact with goods, services and the concept of money change rapidly – it’s leaving schools to play catch up. With this in mind, it’s not really surprising that during the first six months of 2017, 64% of calls to debt management charity StepChange were from people aged under 40.

Generation Debt

Education is inextricably tied to an understanding of personal finance, with a lot of peoples’ first experiences of debt coming from their time in university. For instance, many students from the poorest backgrounds, who often need more support in the form of loans, will graduate owing over £57,000.

As interest charges start as soon as the course begins, students will accrue, on average, £5,800 of additional debt by the time they have graduated. This is one of the many financial realities younger people are often not fully warned about when taking their first steps into adulthood.

From student debt to credit cards, the total UK credit card debt hit £70.1bn as of the end of 2017. That equates to £2,579 per household. For a card with average interest rates it would take a staggering 26 years and 3 months to pay off each household’s debt with minimum monthly repayments.

While it’s not an exclusively millennial problem, there is an undoubted trend towards people in that age range suffering the most in terms of financial issues. It’s clear that something needs to be done to practically educate children in the implications of financial products and the issues that can be caused by debt.

However, we may have to wait a while longer for a real solution. As of the start of 2018, net lending to individuals in the UK increased daily by £126.8m and the total amount owed out by Brits was £1.57bn. According to the Citizens Advice Bureau, they are dealing with almost 3,000 new debt problems each day.

As this trend towards the UK as a nation of debtors continues, it’s clear that steps must be taken to better educate Brits on money management from a young age to avoid a cycle of personal debt that will continue for generations.

Warren Buffett’s comments on cryptocurrencies highlight how he needs to be educated on the future of money, affirms the boss of the deVere Group.

The observation from deVere Group founder and CEO, Nigel Green, follows Mr Buffett’s address to an audience gathered for the Berkshire Hathaway annual meeting.

Mr Buffett opined: “Cryptocurrencies will come to a bad ending.”

However, as he spoke, Bitcoin, the largest cryptocurrency, had added $2,563.48 to its value in the last month, marking a price hike of 37.9 per cent.

Mr Green comments: “It comes as little surprise that Mr Buffett and his 94-year-old business partner, Charlie Munger, criticized cryptocurrencies at their annual meeting. They have done so consistently.

“But what I do find monumentally baffling is that two of the world’s most successful investors cannot see the intrinsic value of some form of cryptocurrency.

“Do they honestly believe that there is no place for, and no value of, digital, global currencies in an increasingly digitalized and globalized world?

“Do they not see many of the world’s major tech companies, established banking groups and household name investors investing in, using and/or beginning to adopt cryptocurrencies?

“Do they not see governments, central banks and financial regulators recognizing the need for regulatory frameworks because cryptocurrencies are becoming so mainstream?”

He continues: “One of the world’s greatest investors, Warren Buffett is a hero.

“However, he admits he does not understand cryptocurrencies.   He once told CNBC,‘I get into enough trouble with the things I think I know something about. Why in the world should I take a long or short position in something I don’t know about?’

“I believe his recent comments on cryptocurrencies illustrate his lack of understanding in this area and how he perhaps needs to be educated on what is likely to be the future of money.”

The deVere CEO concludes: “Financial traditionalists, like Mr Buffett and others, appear to exclusively believe in and be motivated by the old, centralized system of money.

“I would suggest that they need to also be open to a new, decentralized, digital, global currency.

“Whether they like it or not, the world has profoundly changed and moved on in recent years. It can’t, and won’t, go backwards.”

(Source: deVere Group)

Personal finance should be included as a standalone subject in UK schools, affirms Nigel Green, founder and CEO of deVere Group.

Mr Green is speaking out days after the leader of the Church of England, the Archbishop of Canterbury, said that learning about finances is as important as learning about sex and relationships.

The Archbishop, Justin Welby, said: “Research has shown that habits and attitudes to money are already being formed at the age of seven.” He added, “We would like to see financial education receive parity with sex and relationships education.”

Mr Green states: “I fully support the view that we need greater and more robust personal finance education in schools.

“Currently, financial education is not a standalone subject, but is instead included within other subjects, such as mathematics.

“It’s a step in the right direction, does not go nearly far enough. It should be a defined subject, alongside more traditional subjects such as English and science.”

He continues: “Financial literacy is a fundamental life skill for successfully participating in modern society, yet it is consistently overlooked or not given the credence it deserves.

“Today’s world is increasingly complex and children need to be taught how to manage their own financial futures by learning how to budget, make sensible decisions for everyday matters, how to effectively save, how to avoid taking on unnecessary and/or avoidable debt, how to analyse and compare financial products, and make provision for their healthcare and old age.

“Contributing to the complexities are monumental technological advances, economic shifts and developments in transactions and communications.”

He goes on to add: “Low levels of financial literacy can have a far-reaching impact on individuals, their families and wider society. Indeed, it was one of the factors that many experts believe help exacerbate the global financial crisis that began in 2008. It is also often connected to greater reliance on state support, and lower standards of living.

The deVere CEO concludes: “Financial literacy can equip young people with the confidence, skills and know-how to obtain future financial freedom for themselves and their families – and this is why we should all support the growing calls for personal finance to be a standalone subject in schools.”

(Source: deVere Group)

From diesel tax penalties and calls to rule out a further rise in insurance premium tax, to housing ambitions and planning laws, UK Chancellor Philip Hammond has faced a lot of pressure this week, ahead of the announcement due tomorrow.

Below Finance Monthly has heard from a number of source in the industry on what they expect, predict and would like to see come from the announcement, in this week’s Your Thoughts.

Adam Chester, Head of Economics, Lloyds Bank Commercial Banking:

Tomorrow’s budget will have to strike a difficult balance. Improvements to the public finances had given some room to ease policy, but that will be squeezed when the Office for Budget Responsibility revises down its growth forecasts on Wednesday.

The commitment to reducing the so-called structural budget deficit to below two% of national income by 2020-21, gives us a framework to assess how much room there is for any giveaways.

At the March Budget, the structural deficit was forecast to undershoot the two% target by £26bn. It’s now set to fall £6-8bn short of the March forecast, mainly due to stronger-than-expected tax receipts.

However, the OBR warned it will dial down its productivity forecasts, and we estimate a 0.4% downward revision would increase the structural budget deficit by around £15-£20bn.

On top of this, new funds are being sought for areas including Northern Ireland, public sector pay and the NHS, which would likely mean breaching the two% cap.

However, we suspect any available wiggle room would be used to fund a modest fiscal giveaway in order to keep borrowing and debt projections on track.

Matthew Walters, Head of Consultancy & Data Services, LeasePlan UK:

Fleets have been subjected to a lot of change in 2017. April saw the introduction of a new Vehicle Excise Duty system and new rules for Optional Remuneration Arrangements. July saw the publication of the Air Quality Plan, with its promise of Clean Air Zones around the country. And now it’s the turn of the Chancellor’s first Autumn Budget.

This Budget cannot add to the uncertainty facing fleets and motorists. In fact, it should provide clarity. The Chancellor must take the opportunity to reveal the rates of Fuel Duty for next year, as well as the rates of Company Car Tax for 2021-22 – and preferably beyond.

We’d like to see the Chancellor maintaining the freeze on Fuel Duty rates for another year – or perhaps even cutting them for the first time since 2011.

In addition, the UK Government is working hard to encourage the uptake of Ultra Low Emission Vehicles (ULEVs). We will have to see what incentives the Chancellor has up his sleeve.

Stephen Ward, Director of strategy, the Council for Licensed Conveyancers (CLC):

An Englishman’s home may be his castle, but purchasing that castle, family home or two bed flat is an archaic process that needs to be updated. The conveyancing market has never been in more need of attention and next Wednesday’s autumn budget presents Philip Hammond with a real opportunity to let the genie out of the lamp and demonstrate a real commitment to innovation in the property transfer process. We have three wishes for next week, namely:

• The allocation of a small fund to drive R&D for wholly new approaches that the private sector can then deliver and export in finding solutions for improving the availability and comparability of information on price and service for consumers;
• Incentives for conveyancing providers to invest in new IT to provide better, more secure transactions;
• Help for the industry in preparing for outcome of DCLG work on improving the conveyancing process that will deliver solutions we can export.

James Hender, Partner, Saffery Champness:

Stagnating productivity means that any rabbits which the Chancellor wishes to pull out of his budget hat are not looking too healthy. OBR forecasts have eaten into the £26bn headroom the Chancellor thought he had, and though the expectation may be that Mr Hammond will spend to win some political capital, any tax gift will come at a price, and is likely to be subsidised at someone else’s expense.

The government is arguably stuck between a rock and a hard place on corporation tax. A fine balance will need to be struck between ensuring the UK demonstrates that it is open for global business, and being publicly seen to tackle any perception of big business not paying its way.

In this climate, the 2020 commitment to 17% Corporation Tax may be looked at again, and we can certainly expect rhetoric, if not concrete action, to further reinforce the government’s position in taking a central role on international tax transparency and anti-avoidance.

On appealing to younger voters: This is perhaps one of the most politically-charged Budgets of recent years, with many predicting that the Chancellor will use the occasion to try and appeal to a younger generation of votes. If Phillip Hammond is as bold as some have called for him to be, the implications of this political move on taxpayers could be significant.

Michael Marks, CEO, Smoothwall:

After Philip Hammond’s pledge in last year’s Autumn Statement to invest £1.9bn in cybersecurity, we can expect further funding (or at least reference) to this issue as the cybersecurity landscape heats up. Following a year that included the biggest cyberattack on the NHS and the Petya malware attack across the continent, cyber security needs to be an absolute priority for investment; without extra funding and protection, the Government risks undoing a lot of the hard work. So far, the near £2bn cyber windfall doesn’t seem to have had quite the desired impact.

Along with cyber security, I would like to see continued investment in the Enterprise Investment Scheme (EIS). It’s thought that the EIS investment may be reduced from 30% to 20%, thereby reducing entrepreneurial growth, and the UK could suffer consequently in the long term. As a country with a great track record of innovation, reducing investment in this scheme will have a detrimental impact on driving technology and business growth at a time when we need more people to ‘take that step’.

Stuart Weekes, Tax Partner, Crowe Clark Whitehill:

We would welcome a simplification of the rules and the removal of one of the two sets of Patent Box incentive rules as part of tomorrow’s announcements.

Very few companies are taking advantage of Patent Box incentives, which tax the profits from patented products at 10%, a nine-percentage point discount on the current 19% rate of tax. Many companies do not know about this and, for those that do, the complexity of the legislation has been a major barrier to making a claim. Once the UK exits the EU, will the government improve the benefit of the Patent Box, especially as the UK Corporation Tax rate will drop to 17%, making the margin for the Patent Box less attractive than it might otherwise be? Will this prompt a cut in the applicable Patent Box tax rate from 10% to 8%?

Chris Wood, CEO, Develop Training:

The UK Government has recently published an independent review concerning the increasing applications for artificial intelligence (AI). Its recommendations focus largely on the provision and development of training and education in academia and for master-level and PhD students. Support is recommended for organisations such as, and amongst other, the Royal Academy of Engineering, the Alan Turing Institute, and the Engineering and Physical Sciences Research Council. AI is likely however not only to influence academia but, over the next 10-30 years, affect almost all of the current activities we perform at work and at home.

The current skills shortage, felt most keenly in the utilities, construction and engineering sectors is the end-result of under-investment on the part of both government and industry over the last 30-40 years. It is inconceivable, and somewhat terrifying, that this will continue into the mid-21st century particularly against a backdrop of such monumental change. Therefore the 2017 budget should include provision not only for a greater understanding of AI from an academically-driven research perspective but also from that of every individual. Children, school-leavers and those who will be in employment for the next 30-40 years must be educated in how AI is likely to affect their jobs, careers and lives. To achieve this the government would do well to establish a national institute for the promotion, understanding and application of AI for the benefit of all.

Mark Palethorpe, CFO, Cox Powertrain:

There are Government incentives for small innovative businesses like ours, but the Patient Capital Review has promised to address the need to encourage long-term investment in step-change innovation. For some people, the investments required by smaller innovators are just too small to get excited about and, for others, investment levels are too big for the risk. You can get caught out whatever size you are. Results of the Patient Capital Review are expected to be announced as part of the Autumn Budget and we’d like to see more opportunities for investment in innovation. We’d welcome an increase in the cap that exists for tax relief investment schemes like EIS, which has worked really well for us but does limit the amount an individual company can invest.

Nigel Wilcock, Executive Director, the Institute of Economic Development:

For the good of the economy, in tomorrow’s announcement on the UK Autumn Budget we need clarity on the structures and budgets for elements of the Industrial Strategy; clarity on how Structural Funds will be replaced for regions and clarity on local authority funding – how the business rate retention mechanism and re-allocation system will work. Specifically, we are seeking commitments from the Chancellor to transport infrastructure that equalises expenditure per head between regions, greater recognition of the social care costs falling on local authorities and funding for state aid interventions for business. We also recognise that National Insurance contributions from employers need to be looked at – it is an important economic issue that variations in different types of employment contracts are allowing corporations to be avoiding contributions when the economy is at full employment. The tax take of the economy is increasingly disconnected from the level of activity.

Damian Kimmelman, CEO, DueDil:

The abnormally low level of interest rates could be weighing on productivity growth by allowing weak and highly indebted firms to survive for longer than they normally would, by alleviating the burden of servicing their debts. Better information is needed to identify these firms, understand their business and support those with potential.

We have seen the government put their full weight behind opening data initiatives, such as Open Defra, to huge effect. DueDil would like to see the government put their full weight behind Open Banking and ensure that all of the CMA 9 banks (and beyond) open up as much banking data as possible to stimulate innovation in financial services and put the UK at the fore-front of Open Banking globally.

The UKEF committee has pledged to continue supporting exports and export finance. More interestingly, they have pledged that they will digitalise and standardise the application and on boarding process for businesses applying for export financing. DueDil would like to see the government to fund a competition to build a solution that would support the digitalisation of UKEF, in order to ensure that SMEs can painlessly and efficiently access a market of export financing and to ensure the ongoing success of SMEs following Brexit.

William Newton, President & EMEA MD, WiredScore:

The UK has the largest digital economy of any G20 nation, but it is important that technological skills and innovation continue to be employed across a range of industries. The service sector, for example, currently accounts for the greatest share of hours worked at lower productivity levels in the UK. Therefore, digitising existing processes in this sector presents a massive opportunity to address this productivity concern.

If the Government is to enable increased productivity, it must ensure that the existing generation has the necessary skills to meet the demands of modern industry. We would like to see a policy on business rates incentives for organisations who can prove they are investing in their workforce's digital skills.

Earlier this year, the Government announced its intention to support business rate reliefs on new 5G Mobile and full fibre broadband in the Telecommunications Infrastructure Bill. This proposal was received favourably by network providers, and we are now witnessing commitments such as that made by Openreach chair Mike McTighe confirming a plan to bring fibre to 10 million premises before Christmas. As such, the impact of business rates incentives has already been shown to be successful in spearheading improvements to the country’s digital infrastructure. We now need to see digital skills getting the same treatment.

Katharine Lindley, Chartered Financial Planner, EQ Investors:

It could be a tricky Budget for the Chancellor with limited legislative time due to ongoing focus on Brexit. But first one of current Parliament so generally Chancellors like to increase taxes and hope people forget by the next general election. However, minority government makes controversial changes difficult:

• As increase in NI failed, doubt he will risk anything major– perhaps consultation on earnings and taxation of different sources, salary, dividends, bonus etc. Looking at tax reform around ‘workers’ rights with Uber/Deliveroo recent cases and growth of self-employed and single person incorporations.
• Re-announce the dividend allowance cut to £2k from April 2018 – risk it is reduced even further or dividends tax rates aligned with income rates.
• Some positive news on housing and releasing land, possibly relief on stamp duty for first time buyers to increase volume of property transactions.
• Possibly further increases on insurance premium tax to gradually align with VAT rate.
• Patient capital review and what happens to VCT/EIS. Providers are raising monies earlier than usually, but recent press has suggested the picture could improve for genuine start-ups. We may see increased restrictions on less risky ventures and more relief for higher risk and longer committed capital.
• Pensions – hopefully very little. A few rumours about raiding tax relief for ‘older people’ and giving an increased break for ‘younger’. Would provide good headlines but extremely difficult/impractical to administer.
• VAT threshold (£85k) for business either reduce or remove the inflation linking
• Business rates some relief on the high increases.

Mark Tighe, CEO, Catax:

The UK’s reputation as a world leader in Research and Development is essential to the welfare of the British economy as the Brexit process gathers pace.

In order for these smaller firms to compete on the world stage they must be innovating - which can be expensive. As it stands, current R&D tax credit legislation allows SMEs to take the risk of developing a new product, service or process - without undue worry over the financial impact if it fails or is never used. This creates a fertile environment for businesses to experiment and grow and supports the economy moving forward.

Mrs May used her speech at the CBI earlier this month to call on business to innovate more. She’s absolutely right to do so. The key now is making sure Philip Hammond follows through and makes sure the Government properly supports the firms that do.

Ed Molyneux, CEO and co-founder, FreeAgent:

Assuming that the VAT threshold is lowered - as some reports are suggesting - a huge number of contractors, freelancers and micro-business owners would be faced with a significant new administrative and financial burden.

It’s very unfair to position freelancers and contractors as not being on a level playing field with those who are employed. These business owners have none of the employment rights or the security that employed workers have and there must be some recognition for that - unless the government wants to slow the growth of this very important part of the UK economy - representing more than 95% of the UK’s 5.5 million businesses.

We would like to see some positive news in the Budget for the micro-business sector; whether it’s new legislation to help them overcome the chronic issue of late payment, easier tax rules to navigate or simply recognition of the recent Taylor Review and the ongoing status of those working in the gig economy. Freelancers and micro-businesses play a huge role in our economy - it’s time the government started supporting them.

Steven Tebbutt, Tax Director, MHA MacIntyre Hudson:

There’s a growing expectation that Entrepreneurs’ Relief will be attacked as part of the Autumn Budget 2017, which will prove an unpopular move with business owners and aspiring entrepreneurs. Such a change might appeal however to younger generations who feel that wealthy business owners shouldn’t benefit from such a generous tax saving measure.

The Government has already introduced “anti-phoenixing” rules to combat business owners abusing the relief by extracting profits through liquidation, only to resume the same business, sometimes multiple times or even ad infinitum. However, there remains a number of planning opportunities which the Government could still look to limit or close.

For example, it would be relatively simple for the Government to amend the legislation so that qualifying conditions have to be met for, say, five years, rather than the current one year which generally applies. This would immediately make it more difficult to structure disposals in advance of a sale to secure Entrepreneurs’ Relief, as business owners looking to sell would have far less opportunity for eleventh hour planning. Such a change would help ensure that only business owners meeting the conditions over a substantial period qualify for relief.

Robert Gordon, CEO, Hitachi Capital UK:

We know that clean air is on the agenda, as we have seen the Government proactively move towards legislation aimed at tackling the UK’s pollution problem, therefore we fully expect that tomorrow’s announcement will include some form of punitive measure towards diesel vehicles.

Growing uncertainty from consumers around the future of diesel vehicles has already fuelled a rapid decline in the market, with October sales falling by nearly a third compared to last year and any additional deterrent could prove to be decisive, in encouraging a phasing out of diesel vehicles altogether.

If this happens, the Government must be prepared to outline how it plans to fund the infrastructure improvements required, to give businesses and consumers the confidence to make the transition to vehicles powered by alternative fuels at a faster pace than we have seen to date.

Jonquil Lowe, Senior Lecturer in Economics and Personal Finance, The Open University:

The Chancellor is expected to follow an Office of Tax Simplification (OTS) recommendation to reduce the VAT threshold, currently £85.000, possibly as low as £25,000. This must look tempting since it could bring up to £2 billion into the government coffers, sucking 1.5 million business minnows into the VAT system. Depending on whether traders can pass the tax on to customers and who their customers are, this extra tax will be paid partly by firms and partly by households through higher charges for their plumbers, builders, taxis and hairdressers.

Quite apart from paying the tax, HMRC has estimated the cost per business of dealing with the VAT admin is £675 a year. Moreover, if there is no change to the exemption level for Making Tax Digital, currently set at the VAT threshold, from April 2019 those small businesses will also suddenly find themselves sucked into mandatory quarterly digital accounting.

By extending the VAT base, cutting the threshold narrowly skates around the Conservative Manifesto promise not to raise the level of VAT. And, no doubt, it will be dressed up as a tax avoidance measure aimed at traders operating in the informal economy. But make no mistake: this will be a stealthy and substantial tax rise.

Martin Ewings, Director of Specialist Markets, Experis:

As we await the Chancellor’s Autumn Budget with anticipation, the focus must be on driving growth in key areas and ensuring the long-term economic prospects of a post-Brexit Britain. Increased infrastructure spending is expected to be one of the pillars of the budget, injecting regions around the country with much-needed jobs and investment. But we must have the skills in place if the nation is to deliver on such projects, both now and in decades to come. The recent announcement of £21m to boost regional tech hubs around the country is a positive step, but more needs to be done if we are to close the ever-widening skills gap.

Digital investment will be an important component of this, and new technologies could hold the key. Philip Hammond is poised to focus on AI (£75m investment), electric cars (£440m investment) and 5G (£160m investment), while also pledging £76m to improving digital and construction skills more widely. With so many different priorities, it’s important not to lose sight of nurturing future talent. The Cyber Discovery programme is a great example of what needs to be done. The £20m government initiative, announced on Saturday, will aim to encourage and inspire 15-18-year-olds to enter the cyber security industry via a comprehensive curriculum. There will be three million unfilled jobs in cyber-security by 2021, but investing in programmes like this could go a long way to help ministers and businesses plug the UK skills gap, both now and in the future.

Craig Harman, Tax Specialist, Perrys Chartered Accountants:

Following the introduction of the help to buy ISA, first time buyers could once again be one of the winners from the budget as the chancellor is expected to announce changes to Stamp Duty Land Tax. This could include either a reduction in the rate for first time buyers or even a ‘holiday’ period providing a complete exemption for those able to benefit. It has even been suggested that there could be a fundamental overhaul by making the seller liable for Stamp Duty instead of the purchaser. This would benefit any individuals moving to a more valuable property as the liability would be based on the lower value of their current home.

Tax relief on pensions has been a bit of an easy target over the past few years with both the annual and lifetime allowance significantly reduced. It is likely that we will see a further cut in the tax relief available on funding for retirement. Some have even suggested a complete change to an ‘ISA’ like system, however this may be a step too far.

Individuals with significant dividend income have been penalised heavily over the past couple of years and this may be set to continue with many predicting either a cut in the tax-free dividend allowance or an increase in the tax rate.

Aziz Rahman, Founder, Rahman Ravelli:

The Paradise Papers have placed the issue of non-payment of tax back on the news agenda at a time when the Chancellor is announcing his tax priorities.

A large part of the Chancellor’s job is to assess and determine what taxation can be brought in from business. And in the current climate, everyone in business is under scrutiny to ensure they are paying what they should. This scrutiny can only increase if new or heavier taxes are announced tomorrow.

This may seem alarmist. But the Criminal Finances Act, which only came into effect two months ago, makes companies criminally liable if they fail to prevent tax evasion by anyone working for them; even if they were unaware it was happening. They can face unlimited penalties.

If businesses are to avoid prosecution, they must be able to show they had reasonable measures in place to prevent such wrongdoing. To ensure this is the case, they must review their practices and procedures to minimise risks.

This means ensuring staff are aware of the legislation regarding tax offences, having procedures in place for monitoring workplace activity and introducing procedures so that suspicions of wrongdoing can be reported in confidence.

The government is under huge pressure to tackle the non-payment of tax. At a time when the government is outlining its tax priorities, it would be foolish for those in business to fail to make sure their tax affairs are legal and above board.

We would also love to hear more of Your Thoughts on this, so feel free to comment below and tell us what you think!

Around one in four students in the 15 countries and economies* that took part in the latest OECD Programme for International Student Assessment (PISA) test of financial literacy are unable to make even simple decisions on everyday spending, while only one in ten can understand complex issues, such as income tax.

Some 48,000 15‑year-olds took part in the test, which evaluated the knowledge and skills of teenagers around money matters and personal finance, such as dealing with bank accounts and debit cards, or understanding interest rates on a loan or mobile payment plan. This is the second time PISA has been used to assess students’ ability to face real-life situations involving financial issues and decisions.

“Young people today face more challenging financial choices and more uncertain economic and job prospects given rapid socioeconomic transformation, digitalisation and technological change; however, they often lack the education, training and tools to make informed decisions on matters affecting their financial well-being,” said OECD Secretary-General Angel Gurría, launching the report in Paris with H.M Queen Máxima of the Netherlands, the UN Secretary‑General’s Special Advocate for Inclusive Finance for Development and Honorary Patron of the G20 Global Partnership for Financial Inclusion. “This makes it even more important that we step up our global efforts to help improve the essential life skill of financial literacy.”

Beijing-Shanghai-Jiangsu-Guangdong (China) had the highest average score, followed by the Flemish Community of Belgium, the participating Canadian provinces (British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island), the Russian Federation, the Netherlands and Australia.

Students who do well in financial literacy are also likely to perform well in the PISA reading and mathematics assessment, and students who have weak financial literacy skills are likely to do poorly in the other core PISA subjects. But on average across the 10 participating OECD countries and economies, around 38% of the financial literacy score reflects factors unique to financial skills.

The gender gap in financial literacy is much smaller than in reading or mathematics. Only in Italy do boys perform better than girls, while girls do better than boys in Australia, Lithuania, the Slovak Republic and Spain.

Socioeconomically‑advantaged students scored much higher than less-advantaged ones. Native-born students also performed better than immigrant students with similar socioeconomic status, particularly in the Flemish Community of Belgium, Italy, the Netherlands and Spain. The flip side of the strong link between socioeconomic status and performance is that parental support is not enough and there is a role for educational institutions to play in ensuring a level playing field.

On average, 64% of students across OECD countries and economies participating in the study earn money from some formal or informal activity, such as working outside school hours or doing occasional informal jobs. About 59% of students receive money from an allowance or pocket money.

The survey also revealed that, on average, 56% of students hold a bank account, but almost two out of three students do not have the skills to manage an account and cannot interpret a bank statement.

*Participating countries and economies: Australia, Belgium (Flemish Community), Brazil, Canada (British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island), Chile, China (Beijing, Shanghai, Jiangsu and Guangdong), Italy, Lithuania, the Netherlands, Peru, Poland, the Russian Federation, the Slovak Republic, Spain and the United States.

(Source: OECD)