Green Industrial Revolution – business news 19 November 2020.
James Salmon, Operations Director.
The Government released their 10 point plan for a green industrial revolution, inflation, digital currencies, CGT, self-employment, retail, covid-19, market and much more 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.
The green industrial revolution
The Government released their 10 point plan for a green industrial revolution.
The plan – which is part of the PM’s mission to level up across the country – will mobilise £12 billion of government investment to create and support up to 250,000 highly-skilled green jobs in the UK, and spur over three times as much private sector investment by 2030.
The Prime Minister’s ten points, which are built around the UK’s strengths, are:
- Offshore wind: Producing enough offshore wind to power every home, quadrupling how much we produce to 40GW by 2030, supporting up to 60,000 jobs.
- Hydrogen: Working with industry aiming to generate 5GW of low carbon hydrogen production capacity by 2030 for industry, transport, power and homes, and aiming to develop the first town heated entirely by hydrogen by the end of the decade.
- Nuclear: Advancing nuclear as a clean energy source, across large scale nuclear and developing the next generation of small and advanced reactors, which could support 10,000 jobs.
- Electric vehicles: Backing our world-leading car manufacturing bases including in the West Midlands, North East and North Wales to accelerate the transition to electric vehicles, and transforming our national infrastructure to better support electric vehicles.
- Public transport, cycling and walking: Making cycling and walking more attractive ways to travel and investing in zero-emission public transport of the future.
- Jet Zero and greener maritime: Supporting difficult-to-decarbonise industries to become greener through research projects for zero-emission planes and ships.
- Homes and public buildings: Making our homes, schools and hospitals greener, warmer and more energy efficient, whilst creating 50,000 jobs by 2030, and a target to install 600,000 heat pumps every year by 2028.
- Carbon capture: Becoming a world-leader in technology to capture and store harmful emissions away from the atmosphere, with a target to remove 10MT of carbon dioxide by 2030, equivalent to all emissions of the industrial Humber today.
- Nature: Protecting and restoring our natural environment, planting 30,000 hectares of trees every year, whilst creating and retaining thousands of jobs.
- Innovation and finance: Developing the cutting-edge technologies needed to reach these new energy ambitions and make the City of London the global centre of green finance.
Prime Minister Boris Johnson said “Although this year has taken a very different path to the one we expected, I haven’t lost sight of our ambitious plans to level up across the country. My Ten Point Plan will create, support and protect hundreds of thousands of green jobs, whilst making strides towards net zero by 2050.”
“Our green industrial revolution will be powered by the wind turbines of Scotland and the North East, propelled by the electric vehicles made in the Midlands and advanced by the latest technologies developed in Wales, so we can look ahead to a more prosperous, greener future.”
This marks the beginning of the UK’s path to net zero, with further plans to reduce emissions whilst creating jobs to follow over the next year in the run up to the international COP26 climate summit in Glasgow next year.
Experts fear £12bn pledge may not deliver net-zero emissions
While experts have welcomed the Government’s 10-point plan for sparking a green industrial revolution and putting the UK on track for net-zero carbon emissions by 2050, the Guardian says many fear that the planned £12bn of public investment may not be enough to deliver the necessary shift in the economy. The paper cites a PwC estimate that suggests £400bn of investment in green infrastructure is required in the next decade to meet the net-zero target, with the firm’s head of energy and utilities, Paul Jennings, saying: “Government is signalling an intent and an ambition, which is really positive, but the £12bn investment … may not be enough.” The Times also notes the PwC estimate.
BoE’s Haldane: Digital currencies could lower risk
Bank of England chief economist Andy Haldane believes risk in the financial system could be lessened by the use of digital currencies. He told TheCityUK’s annual conference that a “widely-used” digital currency could help manage record-low interest rates, saying it could provide a simpler way for rates to be levied on assets, mitigating against concern that lower rates would not be passed on to borrowers. Mr Haldane also noted that a shortfall in lending to SMEs could be addressed through the use of an open data platform that gives lenders more information on smaller firms, with banks often charging more for lending to entities they have less data on.
Inflation rises in October
UK inflation reached higher-than-expected levels in October after increases in the cost of clothing and food, with the Consumer Prices Index up to 0.7% from 0.5% a month earlier. Although this exceeded analysts’ forecast that inflation would remain flat at 0.5%, it still falls short of the Bank of England’s 2% target. Office for National Statistics (ONS) figures show that the rising price of clothing and second-hand cars fuelled the increase, with the cost of food also up slightly. ONS deputy national statistician Jonathan Athow commented: “The rate of inflation increased slightly as clothing prices grew, returning to their normal seasonal pattern after the disruption this year.” PwC economist Hannah Audino said the gradual increase in consumer prices could be temporarily cut short as England’s second national lockdown restricts activity and demand, but says a pick-up in household spend ing in the run-up to Christmas “could put upwards pressure on prices”.
Proposed CGT shift worries entrepreneurs
Sam Smith, CEO of stockbroker finnCap, says some business owners and entrepreneurs are looking to sell their companies ahead of a potential increase in capital gains tax (CGT). Pointing to recommendations in an Office of Tax Simplification review which suggests cutting CGT allowances and aligning the tax more closely with income tax rates, Ms Smith said: “Companies will move out of Britain if CGT on selling your business fundamentally changes.” Noting that people are nervous about a potential reform of CGT, she said some businesses have started to move overseas already. She added: “We think the reward for investing in a business needs to be recognised in tax rates.”
Freelance shift points to hidden unemployment
A new Institute for Fiscal Studies (IFS) study suggests that some of the surge in self-employment may reflect “hidden unemployment” rather than a desire to be an entrepreneur or “people pursuing appealing business opportunities”. The report says the increase in the number of self-employed people from 2.3m in 2000 to nearly 4m last year has been “entirely driven” by sole traders and owner-managers of companies with no employees. It adds that these people “appear to be an increasingly marginalised group compared with employees”, saying their increasing prevalence may partly reflect a lack of opportunities in traditional employment. IFS analysis shows that in 2019/20, the self-employed earned 30% less than their employed counterparts, while a quarter of the newly solo self-employed were most recently unemployed. Andy Chamberlain, director of policy at the Association of Independent Professionals and the Self-Employed, has questioned the IFS’ findings, saying the “vast majority” of people have made “a positive choice to move into the sector”, pointing to research showing that just 5% of people said they began working for themselves because they had lost their previous job.
Lockdown hits the high street
The Yorkshire Post considers the climate for high street retailers, citing a PwC report showing that more than 11,000 shops closed during the first half of 2020 amid to the coronavirus lockdown, resulting in a record net decline of over 6,000 stores.
Covid-19 general news
The number of new cases in the Uk continues to drop during lockdown with 19,609 yesterday.
Globally 623,420 new cases were added, bringing totals to 56 million as deaths reached 1.35 million
Pfizer revealed that their vaccine was 95% effective as opposed to the initial 90% efficacy rating disclosed last week. The vaccine also produced a strong immune response in older individuals. Of the 43,000 who participated and 170 who contracted the virus, just eight had received an active jab rather than a placebo. The covid vaccine developed by Pfizer and BioNTech appears to protect 94% of adults over 65 years old. More data released from their ongoing phase three trial suggests it works equally well in people of all ages and ethnicities. The companies say they will now apply for authorisation for emergency use of the jab in the US.
Preliminary findings of a phase two trial show that the covid vaccine being developed by the University of Oxford and AstraZeneca is safe and triggers a similar immune response among all adults. The study of 560 healthy adults, including 240 over the age of 70-years-old, found the vaccine to be safe and produced a similar immune response among people aged over 56-years-old and those aged between 18 and 55. Hope remain high for this vaccine as it is likely to cost only a 10th of those being developed by Pfizer and Moderna.
The US passed 250,000 deaths.
Russia reached 2 million cases.
In contrast with the UK, New York announced the closure of its school system with 1 million students switching to remote learning. However, they opted to keep bars and restaurants open.
Canada
A trade deal is apparently imminent between the UK and Canada, closely mirroring the previous deal we enjoyed as part of the EU.
Markets.
Shares in London advanced on Wednesday following the Pfizer news. The FTSE 100 climbed 0.3% and the 25o rose 0.9%. Overnight, however fears of increased lockdowns took hold of investors and the S&P 500 dropped -1.16% and the NASDAQ dropped -0.82%.
Sterling is giving up some of this weeks gains and currently is at 1.322 US dollars and 1.118 Euros.
Oil rose as OPEC is believed to be delaying planned oil output increases. Gold remained range bound.
Euro edges ahead
The euro was the most used global payments currency last month, according to data from the Society for Worldwide Interbank Financial Telecommunications. This is the first time it has surpassed the US dollar since February 2013. The US Dollar has weakened 11% since the pandemic started and investors are ditching it.
China
Chinese president Xi Jinping has pledged to open up the chinese economy, import more goods and sign more trade deals.
Apple
Apple are paying £113 million to settle ‘batterygate’ over claims that the company had deliberately slowed down older phones to motivate users to upgrade to new devices.
Record high UK house prices in September – ONS
Office for National Statistics (ONS) figures show that the average UK house price climbed by 4.7% in the year to the end of September, hitting a record high of £245,000. The ONS says pent-up demand and the stamp duty holiday are likely to be among factors that drove the increase in typical values. In England, average prices were up 4.9% to £262,000, while homes in Scotland saw the typical price climb 4.3% to £162,000. Wales recorded an increase of 3.8%, taking the average to £171,000, and Northern Ireland saw a 2.4% increase as the average hit £143,000. The report also reveals that London registered a record high, with the typical house priced at £496,000 in September.
Unilever
Unilever said it has set a new annual sales target of 1 billion euros for plant-based food products as consumers turn away from meat and dairy. Unilever said the target represented around a five-fold increase on current sales of meat substitutes
Halfords
Halfords reported that profit more than doubled in the first half of the year as revenue was boosted by strong demand for cycling products during lock-down and in response to an aversion to public transport during the pandemic.
Multinationals pull back on UK investment plans
Analysis from EY shows that just 43% of overseas multinationals are pursuing UK investments planned before the coronavirus pandemic, down from 72% in April. This would equate to a drop of as many as 499 projects, a decline of up to 45% on 2019 when 1,109 projects were recorded. The study found that 5% of companies had cancelled their investment plans, 35% had scaled back projects and 17% had put them on hold. The proportion of overseas companies intending to invest in the UK in the next year has fallen to 25%, marking a decline from a decade high of 31% in April. Earlier this year, EY found that, for the first time in two decades, the UK was not Europe’s top destination for foreign investment, with France preferred. However, EY’s Alison Kay says the overall outlook for the UK is stronger than that for Europe”, pointing to a solid base of digital technology, research and development and manufacturing.
Treasury defends tax-free shopping plan
Treasury Minister Kemi Badenoch has defended plans to scrap tax-free shopping once Britain leaves the EU, saying keeping VAT-free shopping in place would see the UK handing visitors from the EU a subsidy of almost £1bn-a-year. With business leaders questioning the Treasury’s decision, saying it will lead to job losses and cost the economy £3.5bn, the Treasury Select Committee has turned its attention to the matter. In a letter to committee chair Mel Stride, Ms Badenoch said that leaving tax-free shopping as it currently stands would mean visitors from the EU will be able to reclaim VAT on goods, resulting in a “deadweight loss” by subsidising their spending. While the VAT retail export scheme costs HMRC around £500m-a-year, Ms Badenoch said extending it to EU citizens would drive the annual bill to £1.4bn, an increase of £900m.
MPs told wealth tax would be costly and complex
Experts have told MPs that a wealth tax would be inefficient and difficult to impose. With a wealth levy among possible options as the UK looks at ways to cover the cost of the coronavirus crisis, analysts have told the Treasury Select Committee that a tax on the value of property, pensions and assets is likely to be counterproductive, saying that such policies have often proven unsuccessful in other countries, with many nations eventually abandoning them. Sir Edward Troup, a former first permanent secretary at HMRC, warned that calculating the wealth to be taxed would prove extremely difficult, telling the committee that while a wealth tax is possible, it would be complex and expensive, adding that it is unclear whether the resources it would require would “justify whatever you would raise from it.” Barrister Emma Chamberlain commented: “I am not sure we want to turn our nation into a nation of bookkeepers and valuers, which an annual wealth tax may well force us into,” while Arun Advani at the University of Warwick suggested ministers would be better off focusing on reform of inheritance and capital gains taxes, dismissing a wealth tax as “a poor second best”.
Report flags barriers to LGBTQ+ progression
Research commissioned by the Financial Reporting Council (FRC) has revealed that LGBTQ+ people have made a significant contribution within the business community, yet the barriers to their progression and extent of discrimination has often been stark. The report found that too often corporate culture has not been a welcoming environment for LGBTQ+ people to be themselves. In progressing to the highest ranks of corporate leadership, the leaders interviewed for the report often faced discrimination and had to make personal sacrifices. As a result, many chose not to disclose their LGBTQ+ identity until late into their careers. The FRC says firms should set clear policies and targets to nurture their next generation of LGBTQ+ leaders and diversify the workforce. The report adds: “To drive change, companies should regularly capture and transparently report the experiences of LGBTQ+ employees”.
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.