Furlough scheme extended and more QE – business news 6 November 2020.
James Salmon, Operations Director.
The furlough scheme is extended to the end of March and the bank of England increases its quantitative easing (QE) by 150 billion plus covid-19, market and lots of other business news.
Here are CPA we want to share the business news stories we have seen that we think will affect our members and readers. Many of us are busy fighting to protect our businesses and therefore might have missed some of the news that could impact small businesses, their owners and those that sell on credit.
Furlough scheme to be extended until end of March
Chancellor Rishi Sunak has confirmed that he will extend the furlough scheme across the UK until the end of March. Mr Sunak said the scheme will pay up to 80% of a person’s wage up to £2,500 a month. He told the Commons that the Government will review the policy in January. The Chancellor said his intention was “to give businesses security through the winter”. As part of the revised scheme, anyone made redundant after 23 September can be rehired and put back on furlough. Mr Sunak also announced billions of pounds of other support for the economy, including more money for self-employed people. Support through the Self-Employment Income Support Scheme (SEISS) will be increased, with the third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500. Paul Johnson, the head of the Institute for Fiscal Studies, has said Rishi Sunak’s move to extend the furlough scheme until March was “wasteful and badly targeted”. Mr Johnson added that to continue with the initial furlough scheme, “which was dreamt up at speed, with no serious attempt to address its flaws is quite surprising.”
BoE launches fresh £150bn stimulus package
The Bank of England has launched a fresh £150bn stimulus package as part of efforts to shore up the UK economy as the coronavirus crisis continues to blight the country. The latest expansion of the scheme takes total bonds purchased by the Bank under quantitative easing to £895bn. Andrew Bailey, Bank Governor, warned the outlook remains “unusually uncertain” in the wake of the spread of the virus but added: “We are confident that we have the headroom to do what we need to do to meet our remit.” Mr Bailey said the Bank now expected economic output would be 11% lower at the end of the year than it was at the start, and that unemployment would rise from the current level of 1.5m to 2.6m. The Bank also forecast a 1% hit to the economy in early 2021 as a result of the end of the Brexit transition period – even if there is a deal with the European Union.
More than £1.1bn in fraud exposed in UK bounce back loan scheme
More than £1.1bn of suspected fraud has been prevented so far in the UK Government’s flagship “bounce back” loans in an indication of how criminals have aggressively targeted the scheme. Estimates from the British Business Bank provided to the Commons public accounts committee said lenders had rejected 26,933 bounce-back loans over concerns they could be fraudulent preventing criminals from stealing £1.1bn from the £40bn scheme.
Covid-19 general news
Global cases added 589,413 and passed 48.7 million and 1.23 million deaths.
Mass testing has started in virus hotspot Liverpool.
Denmark imposed new restrictions and said the new Covid-19 mutation that started in the mink population has spread. There are concerns the mutant strain may hamper efforts to develop a vaccine. The UK added Denmark to its quarantine list.
Russia broke 20,000 new cases in a day for the first time, straining hospitals’ capacity in certain regions.
While Americans focused on a nail-biting stream of election results, the country reached a tragic record, recording more than 100,000 new daily cases on both Wednesday and Thursday.
A small study found that a nasal spray containing a lipopeptide that stops covid from attaching to lung cells, protected ferrets from absorbing covid.
The prime minister of Greece announced a three-week nationwide lockdown, starting Saturday, after a sharp spike in infections.
Markets.
Stocks across Europe and the US advanced yesterday as Joe Biden edged closer to a victory in the US presidential election, raising hopes of new stimulus measures to support the world’s largest economy. In the UK, markets also welcomed a string of positive news stories. The Bank of England increased its QE programme by £150 billion , above analysts estimates, while the central bank held interest rates at record lows of 0.10% and Chancellor Rishi Sunak extended the furlough scheme across the UK until the end of March 2021, while stating that the policy will be reviewed in January 2021. The FTSE 100 rose by 0.4% and the 250 by 0.7%. In Europe the German index rose 1.9% and the French market rose 1.2%. On Wall Street, tech stocks moved higher with the ‘FAANG’ companies all rising by roughly 3% with the political gridlock reducing the risk of any dramatic regulation or taxation for the industry. The S&P rose 1.95% and the NASDAQ rose 2.59%.
In commodities, the oil price drifted lower while precious metals rallied. Gold and Silver prices were 2.5% and 5.0% higher respectively by late afternoon.
The US dollar weakened as the pound rose to 1.312 US dollars. The pound buys 1.108 Euros.
Bitcoin passed $15,000, more than doubling in value in 2020.
The Federal Reserve finished a two-day session by standing pat. America’s central bank left interest rates at between zero and a quarter-point, and its bond-buying programme unchanged.
Bentley
The iconic car brand announced it is going to ax its 12 cylinder engines and switch to hybrid and electric vehicles, with a goal of being fully electric by 2030.
HMRC urges traders to prepare for end of Brexit transition period
HMRC is urging traders to act now to avoid Brexit-related disruption when the transition period comes to an end. Some 250,000 letters and emails have been sent to businesses warning that new border controls will come into force on 1 January 2021. HMRC’s Katherine Green and Sophie Dean said: “We understand that these are challenging times, but time is running out for businesses to get ready. “New customs and tax rules will not change or go away if a Free Trade Agreement is negotiated, so businesses should act now to ensure they are ready for the end of the transition period.” Meanwhile, the National Audit Office has warned that preparations for new border controls have been further delayed by coronavirus, likely leading to “widespread” disruption at ports.
Former BHS owner jailed for tax evasion
Former BHS owner Dominic Chappell has been convicted of dishonestly choosing to evade paying tax on £2.2m of income he received from his £1 deal to buy the failed high street chain. Instead of paying the tax he knew was due, Mr Chappell spent a fortune on a luxury lifestyle which included a £90,000 yacht, a Bentley Continental car, a Bahamas holiday and some expensive Beretta guns, Southwark Crown Court heard. His lawyers claimed he became, and still is, “utterly broke” because BHS’s hugely underfunded “pension problem exploded” within two weeks of controversially buying BHS from Sir Philip Green in 2015. His defence suggested that, had BHS not failed, he would have had the funds to pay his tax liability, but a jury found Chappell guilty of dishonesty after deliberations over three days. He has been jailed for six years.
HMRC reduces tax gap to lowest ever level
Annual accounts from HMRC show the tax gap fell to 4.7% in 2018-19, the lowest rate ever recorded. However, £31bn is still lost to fraud and error. HMRC says £4.6bn is lost to tax evasion; £4.5bn to criminal attacks; £3.1bn to error and some £5.5bn the result of people and companies failing to take reasonable care when paying.
Pension ‘wake-up’ packs prove ineffective
New analysis has suggested that pension “wake-up” packs introduced last year by the Financial Conduct Authority are failing to have much impact. The packs were sent to people on certain birthdays, with the first arriving on a saver’s 50th. The packs also encouraged savers to take up free pension guidance but the figures appear to show they have been ineffective. Stephen Lowe, a director at Just Group, said: “Consumer-friendly packs are a step in the right direction but need to be reinforced with stronger measures such as the amendment this week proposed by Stephen Timms MP to automatically schedule Pension Wise appointments.”
Don’t let Covid-19 bust your business!
It will if your cash flow dries up, either sooner or later.
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid since 1914. We have seen many financial crises, this one will be particularly deadly for suppliers for sometime to come.
CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. Above all tactfully, because maintenance of goodwill is paramount.
To meet the needs of creditors in the current crisis, we have designed a “critical care” package especially tailored for the situation.
- The annual package costs start at very low rates
- A minimum performance warranty is provided
- Several complimentary services included
Clients instruct CPA on-line via their PC or phone, completely user-friendly. Your late paying customers are told to pay you direct (not to us).
A very recent report shows a 23% increase in the number of unpaid invoices since March 11th THIS YEAR – are you getting a build-up of late payers?
Right now, overdue accounts must be a concern and CPA has a great track record of encouraging slow-payers to pay their suppliers quickly.
It takes less than 17 minutes to see how you would benefit, do you have the time now?
No face-to-face meeting required – just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.
When you see your money come in, you will be so glad you used CPA.
Do you sell on credit?
With pressures on the cash flow it is essential that you stay on top of the credit limits you grant customers and watch carefully for any late payments.
Those customers will look for the easiest option to boost their cash-flow. Don’t let it be you.
You can’t just assume your customers can and will pay you eventually, no matter how big their name is.
It is essential to have credit management systems in place to monitor and check your customers credit worthiness.
It is also best practice to use a trusted third party like CPA to make sure you are paid on time by customers, no matter how good a name they have.
About CPA
The Credit Protection Association can help!
Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.
At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.
We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.
Companies in trouble usually have very bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.
If you supply on credit, help us help you identify the risks.
Why use a third party collector?
As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When your customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.
Over the years we have collected billions in overdue invoices for our customers.
Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.
You might be hesitant about contacting a debt collection agency. What are they going to be like?
Can they help your particular type of business?
There is no need for concern. CPA are courteous, helpful and very probably have had direct experience of working with your type of business.
Debt collection agencies are not all alike.
Success lies in both recovering money and keeping customers happy. The Credit Protection Association was founded in 1914 and has helped tens of thousands of UK businesses to collect outstanding payments and reduce the risk of incurring bad debt. We believe that creditors deserve to be paid for the work or goods they have supplied but we fully understand the need to maintain
the best possible relationship with customers!
At The Credit Protection Association, we provide solutions, advice and back-up in all areas relating to the supply of services or goods on account. Client-members receive everything they need from a single source to reduce debtor days and write-offs.
The Credit Protection Association has helped has assisted tens of thousands of UK businesses with their credit control requirements, since the First World War.
We are polite, firm and efficient when it comes to recovering outstanding debt.
“We have used CPA for a number of years now. The website is easy to navigate around with lots of helpful reports. The staff are always at hand and very friendly. CPA has helped us reduce our debt over the years and keep track of potential issues with our customers.”
~ CPA client in Buckinghamshire
“The service from CPA has proved to be everything that you said it would be. We have already seen a huge benefit. We have had a number of overdue accounts paid promptly and directly to us. It is also a huge weight off our mind to know that once we have passed an overdue payment over to you, you take care of everything whilst keeping us informed.
~ Credit Controller client in Warrington
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Ready to speak to an advisor?
For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
CPA is passionate about late payment
The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.
We are extremely passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs, with cash flow difficulties being the single biggest killer of Britain’s small businesses.
If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.
As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.
Under little used legislation, you are entitled to compensation for those late payments.
You put up with the PAIN – now claim the GAIN!
Now you can boost your own cash-flow.
CPA can help unearth the those hidden treasures.
We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.
Did you know that your business is entitled to a minimum of £40 for every commercial invoice paid late to you over the past 6 years?
How many of your invoices are paid late each month – 20, 50, 100 or more?
At £40 per invoice that’s claim of £57,600, £144,000, £288,000 plus interest. The more invoices the bigger the claim!
At £100 per invoice it’s £144,000, £360,000, £720,000 plus interest.
For over 20 years, CPA has calculated and recovered Late Payment Compensation on behalf of Clients!
Yes, CPA can help you boost your business cash-flow.
Don’t let your bankers control you, contact CPA today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
Do you realise you could be sitting on a fortune?
Late payments often result in a cash flow crunch and leave SMEs in need of a cash injection.
If you sold B2B on credit then there may be a hidden source of capital you can call on.
If you fancy an extra bit of extra cash in your business, rather than jumping through hoops with your bank, you could look to uncover the resources from an unexpected source within your own business.
Not many are aware but there could be a hidden fortune within your business, sitting there, just waiting to be uncovered and released.
We can help you uncover the pile of gold, you didn’t even know you were sitting on.
If you trade with other businesses and were often paid late then you could be entitled to significant compensation.
Under little known and under-utilised legislation your business could be due huge amounts in compensation that you didn’t even know about.
Let’s be clear – this is not a way to weaken any customer relationships you value. It is one that identifies who’s been paying late and then recover the potentially significant sums in compensation using Late Payment Legislation from businesses where the relationship has already ended.
You can pick and choose who you want us to follow up – but once we’ve agreed which companies you’d like to pursue compensation from it’s a fast process and there’s no financial outlay to you whatsoever. My team at CPA put its expertise to work to recover the compensation due and fight late payment culture.
That compensation could provide the cash boost your business needed.
But don’t delay, that compensation evaporates if not claimed within six years of the late payment.
How can CPA help?
CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.
We recognise that most companies do not have the resources to spend time on the identification and calculation of Late Payment Compensation. Our service can produce an Analyses within just a few days with (usually) less than 30 mins of co-operation from our clients. We work directly with over 300 accounting packages but can also work with bespoke accounts packages. Indeed, speed is essential as the oldest invoices may fall foul of the 6-year time limit.
Once the Sales Ledger Analyses is made available to clients, all that is required is that management decide which commercially sensitive ex-customers to remove from the list and return it to us.
CPA then uses its years of collection experience to explain and recover the Late Payment Compensation Claims. Clients do not handle any part of the recovery process as our team will take all communications from the companies against who the claims has been made. Often, it’s simply a case of explaining the legislation, sometimes we have to go all the way and enforce the legislation through the courts.
The result is that we are realising clients’ claims worth tens and sometimes hundreds of thousands of pounds which, of course, is pure net profit. You may also be among the recipients of “hundreds of thousands of pounds” should you elect to take advantage of our services.
We do the work, you receive the cash.
If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.
We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.
We are helping business owners who are looking to boost the returns from their business before they retire. We are helping businesses who have lost major clients after years of loyal service to get properly compensated for systematic late payment. We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.
Those former clients who regularly paid you late can finally be made to pay.
Ready to speak to an advisor?
For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
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The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.