An initiative supported by several trade associations to kick-start the economy again by cutting the VAT rate for construction and second-fix fittings was presented to the Government at the start of 2009. One of the key industry supporters was the Bathroom Manufacturers Association.

The focus on business development has shifted towards promoting enterprise, so if the Government is going to reach its self-set carbon omission targets it has to promote initiatives and provide incentives in an environment of financial crisis. 

Simple cost-effective improvements can be made to promote the glut of housing stock. Statistics show that some seven million homes throughout the UK fall well below the decent homes standard in terms of bathrooms and kitchens. If the VAT rate were temporarily cut from 15% to 5% as is suggested by industry campaigners, numerous industry wheels would start rolling again such as construction, plumbing, building, tiling, sanitary-ware, tiles, lighting and of course interior design. 

As Aileen Campbell, MSP, from the Scottish National Party (SNP) highlighted, cutting VAT to five percent for all repair and maintenance work was official Scottish Government policy but because taxation is decided in Westminster, the Scottish Government was unable to implement such a cut.

With the VAT rate returning to its original 17.5% and SME now facing the cost of adjusting all their stationary and software again, we ask, was it worth it? Did it make a difference, and if it did was the effort put into the reduction a boost to the correct sector of industry? 

The year ahead is going to be hard, and we reach the end of 2009 with fewer companies prospering than in previous years so the question we must ask ourselves is, how will we look as an industry this time next year? 

The Society of British Interior Design exists to define interior design as a serious profession. Interior designers understand how to do their job but notoriously are terrible businessmen/women. Add that to a haziness surrounding the definition of a professional designer and you can understand why nobody including those within the profession, have increased market share. 

The Society clarifies and defines the issue by stating that a designer must have a degree in interior design and two years work experience to describe themselves as a professional designer. This clear definition has separated the immediate difference from those design schools who churn out diplomas and certificates to hundreds of self declared professionals. 

The Society has in this clear step brought the UK for the first time in line with the rest of Europe and is the UK body of the European Council of Interior Architects (ECIA) the professional body for measured standards across European. 

CASE STUDY – European Countries with 5% VAT rate.

France

43,000 new jobs were created in the construction industry 5.6% growth in turnover in the industry.

Italy

75,000 new jobs were created in the construction industry 35,000 companies emerged from the informal economy to start paying VAT for the first time.

Portugal

Construction companies enjoyed a 20-25% growth.

Having worked with the rest of the team for one year researching the basis of The Society and what it will look like once fully formed, we have created, nurtured and developed a model that fits the threats and opportunities of both young and older designers, those existing and those still in training, those with and those without a degree (see www.thesocietyofbritishinteriordesign.org) in design to ensure this organisation is not simply ‘a club’ but a destination.  During the seed process the board members have grown into ‘a family’ motivating this not-for-profit entity to reach its goal.

The Freedom of Information  Act  

The Society of British Interior Design will disclose correspondence surrounding the application and incorporation of the Society. 

Transparency                                                                                                                                                                                                  Minutes of all Board Meetings are available to our Members on the website in the Members section.

At the final Board Meeting of the year last week the final phase of the planning and strategy was revealed and approved for the year ahead, the papers are now written, agreements in place, and we are now open for business.

Last night I attended the ISES Christmas Party (International Special Events Party) well it was innovative to say the least, I was handed oranges throughout the night from ladies dressed like Nell Gwynn (not being a person who really likes parties unless I’m organising them) I actually loved it. But tomorrow night’s event I am really looking forward to!

With UAE in burn-out mode a saving horizon for the UK economy has taken a shocked step aback.

But its not new news, its not even a shock to those connected with work in the Middle East, many saw this coming for well over a year. It is not a secret that ‘the family’ have long since supported each other and taking in to account the pride of the nation, the family name, the culture of the middle east and the wealth of the family I would be surprised to see Dubai fall totally to its knees.

In my opinion, Dubai was always going to be the Emperors’ new clothes. Built without an infrastructure, how could it survive for more than a decade? It has architecture like no other, was the response to those in business who doubted its longevity. Yes, but it’s built on ego and sand, that’s the first ingredient of the recipe for a fall.

To build a business or a concrete structure requires the same basic rules. Firstly identify the need, and then identify the market: research, and research again. Then factor in the worse possible scenarios such as government changes, financial downturn, competition and consumer needs, and finally address those factors one by one. If it still looks good, then plan, plan and plan again. Be flexible and nimble enough to adapt with your planning as market forces change.

Dubai was developed to demonstrate power, as a built environment. However major infrastructure was delivered only as an afterthought. For example, Dubai did not think to build a transport system until it discovered that it took hours to reach some of the islands. Secondly, Dubai planners did not create a core reason to travel there, such as Singapore’s efforts and success in creating a global shopping destination. Dubai was initially planned to be an alternative gateway to Singapore and cut down on long haul travel for those in the west, thus making the retail facilities, services and choice available in Dubai a major attraction, or not, for customers. As a business consultant I therefore identify two key risks for Dubai: shopping and airlines.

Airlines                                                                                                                                                                                                                        The next step should have been to identify the airlines needs and the shopping demographic. There are two major airlines for Dubai, Emirate Airlines and Etihad, the latter being the newest airline which launched, identified its market, identified the lifestyle and needs of its customer and then designed an airline to fit that need. It also identified its competitor’s services and found its core market was long-haul so Eithad provided short-haul flights. Emirate airlines do not want the short-haul flights blocking their routes; their strategy was to price-out the short trips as they did not want vacant seats for the second leg on their long-haul flights. In doing so, they provided an opportunity for Etihad. Emirates drove their customer-base to a new supplier, with new planes, who provided luxury as a differential. It worked. Etihad is the world’s best airline according to the latest airline awards and having flown on Etihad myself it is absolutely the most luxurious airline (in fact the hotels around the world might learn something from the services and customer-care provided by Etihad!) 

Shopping                                                                                                                                                                                                          Shopping in Dubai is not different to any other international city, in fact I understand it is less interesting, collections are limited as religious beliefs prevent some items from import, so the mix is limited, the price is the same, so why would you carry it across the world when you could buy the same product locally for the same price? It was founded on luxury and therefore the shopping needed to reflect that but ultimately it must have a full mix to fit. Which leaves the destination itself, what does it have to offer? It’s on the sea, has fantastic weather, it’s a safe destination for families and the hotels are super-luxury and super-designed. Dubai pushed the boundaries for design and architecture to its limit, and then more. However, this is good only for a standard 2.4 day stay. As a business destination, it suits the business traveller – however not for anything other than host or attend conferences. This is a doomed formula. Vegas, also known for its conferences and events, has gambling, shows, playgrounds and conferences to sustain it. Dubai for cultural reasons can not replicate this.

So, the lesson learned, is that in a strong market, everyone works, everything makes money and everyone is happy, but when the finance dries up, when jobs are scarce and when push comes to shove, all the gloating and squawking means nothing. To survive you must build a business or destination on a strong foundation to fit the needs of the end user.