One in five furloughed young workers have lost their jobs – business news 28 October 2020.
James Salmon, Operations Director.
One in five furloughed young workers have lost their jobs, 2020 could set record for incorporation, nearly a fifth of self-employed claimed support despite no pain, covid-19, market and 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.
One in five furloughed young workers have lost their jobs
New research by the Resolution Foundation has revealed that one in five furloughed young workers have lost their jobs.
A survey of about 6,000 adults found 19% of 18-24 year olds who were furloughed during lockdown were unemployed in September.
The think tank revealed that of the workforce overall, 17% of those in work before the pandemic were still not back in full employment, including those no longer working, those still furloughed or whose pay or hours have been cut.
For black, Asian and minority ethnic workers 22% had lost their jobs, compared to 9% for the general population.
The Foundation president, Lord Willetts said “Compared with previous recessions, the real slowdown is in the number of new jobs that people are moving into,” adding “Once you become unemployed, finding new employment looks like it’s even worse than it was after the financial crash.”
He said young people were concentrated in sectors which had been worst affected by the pandemic such as hospitality and retail, while those who had lost their jobs had been faced with very few vacancies when looking for a new role.
Kathleen Henehan, Resolution Foundation analyst, said the unemployed’s struggle to find new work suggested that “even if the public health crisis recedes in a few months’ time, Britain’s jobs crisis will be with us for far longer”.
The Foundation argued there was a case for expanding the Chancellor’s furlough scheme to more firms and urged Rishi Sunak to take a “proactive” approach to job creation.
2020 could set record for incorporation
Analysis of data from the past decade by recruitment and training business SHL suggests that this year could set a record for growth in company registrations.
An additional 59,358 new companies were created in the UK between June and August compared with the same period last year, SHL said, with an extra 84,758 companies expected to be created this year in total compared with last year.
SHL said its findings suggested there were “tens of thousands of new entrepreneurs”.
But John Endacott, tax partner at PKF Francis Clark, said the increase could be down to job losses pushing people into solo self-employment. Elsewhere, Iain Wright, director of business and industrial strategy at the Institute of Chartered Accountants in England and Wales, said: “Every downturn in economic history is accompanied by a rise of entrepreneurship. This could be the start of new, innovative businesses.”
Nearly a fifth of self-employed claimed support despite no pain
In a survey of more than 6,000 people, the Resolution Foundation found 17% of applicants who applied for the self-employed income support scheme did so despite suffering no hit to their incomes during the pandemic. This means some 435,000 self-employed workers banked an extra £1.3bn from the taxpayer.
Under the scheme, self-employed people with annual profits of less than £50,000 were offered a taxable grant worth up to 80% of average profits for a period of three months to October 31, capped at £7,500. The scheme has since been extended to April 2021. HMRC has urged self-employed workers who have been “overpaid”, who have claimed in error or were not eligible for the grant in the first place to pay the money back
Retail sales hit by second wave
The CBI’s latest survey of retailers and wholesalers shows retail sales declined in October as the second wave of coronavirus saw a fall in the demand for clothes shops and department stores.
The business group’s monthly gauge of retail sales fell to -23 in October, its lowest level since June, after hitting an 18-month high of +11 in September.
CBI economist Ben Jones said: “With footfall still down by one third, many retailers face a difficult run-up to the all-important Christmas period. It is vital that local authorities use their discretion over the new tier 2 grant funding to target support in a way that helps keep town and city centres open for business.”
Covid-19 general news
Global cases added 421,778 to top 43.9 million and deaths exceed 1.16 million. n the UK there were 22,885 new cases.
The U.K. (367) and France (523) reported their highest Covid-19 death tolls since the first wave of the pandemic. “We continue to see the trend in deaths rising, and it is likely this will continue for some time,” Yvonne Doyle, medical director of Public Health England. Macron is due to address France this evening amid reports they are considering a one-month lockdown. Italy and Greece also posted record numbers of new cases
Turkey has barred doctors, nurses and other health workers in the public sector from taking leave, resigning or retiring to ensure uninterrupted fight against Covid-19.
GlaxoSmithKline said it had signed a statement of intent with Gavi to distribution an eventual COVID-19 vaccines.Under the agreement, the drugmakers said they would make available 200 million doses of their COVID-19 vaccine, subject to regulatory approval from health authorities, to the COVAX facility.
Markets.
The FTSE 100 dropped 1.1% and the 250 1.5% yesterday as worries about fresh Cocid-19 curbs in England offset encouranging results from HSBC and BP. Uncertainty over a Brexit trade deal and concerns about the financial fallout from new coronavirus-related restrictions have kept the FTSE in a tight trading range since June, with the blue-chip index on course for its second straight monthly decline.
The S&P500 fell in early trading, dragged down by a string of earnings disappointments and doubts about a coronavirus stimulus package before Election Day, although the NASDAQ rose ahead of results from large-cap technology companies. Overnight, the S&P 500 dropped -0.30% and the NASDAQ rose 0.64%
The pound is at 1.2989 US$ and 1.105 Euros.
Brent is down at $40 and Gold is at $1902 as the US election, covid-19 and the diminished hope of a US stimulus package are all affecting markets and optimism
Unilever to press ahead with unification
Unilever has yesterday to proceed with combining its UK and Dutch entities into a single London-based company despite the threat from Dutch politicians of an “exit tax” in the Netherlands that could cost the consumer goods group €11bn.
Next
Next said sales were higher in the past three months than they were for the same period last year, thanks to strong sales online. Full-price sales were up nearly 3%, while total sales were up 1.4%. The company has raised its profit forecast for the year to £365m.
Europe’s direct lending market shrinks in first half of 2020
The number of direct lending deals completed in Europe fell by 29% in the first six months of 2020 as raising money on public debt markets became cheaper, according to figures from Deloitte. Separately, the ECB’s quarterly survey of banks shows lenders are reducing lending to European businesses and households as they prepare for a rise in bad loans due to the economic impact of the pandemic.
Pension reforms could cost companies an extra £40bn
Figures from LCP indicate that new rules designed to protect company pension schemes could cost UK employers an extra £40bn over the next decade. The firm found that proposals in The Pension Regulator’s new defined benefit (DB) funding code would require the sponsoring companies that sit behind the UK’s largest DB pensions to put £100bn into these schemes over the next 10 years. This compares to a cost of between £60bn and £65bn under current rules. LCP partner Steve Webb comments: “If businesses are forced to move tens of billions of pounds away from productive investment in the economy and instead have to lock the money up in their pension fund, there is a risk that this damages the long-term health not just of the companies concerned but of the UK economy as a whole.” Meanwhile, Baroness Ros Altmann warned: “In the midst of a national economic crisis, forcing firms to increase pension funding sha rply, instead of using their resources to boost their business, clearly increases the risk of employer failure.” Nearly two thirds of listed companies with DB schemes have issued profit warnings this year, according to EY.
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.