Parliament to be prorogued!
28th August 2019.
Boris Johnson has announced plans to prorogue parliament!
A summer of relatively few jaw-dropping Brexit developments came to an end yesterday as U.K. Prime Minister Boris Johnson announced he will be suspending the House of Commons – known as proroguing – for five weeks just one week after Parliament returns from recess, narrowing the window for opposition MPs opposed to a no-deal Brexit to block his plans and setting up a parliamentary showdown.
What it means for business
For businesses desperate for certainty, the high risk move will not be welcome as it makes the likeihood of a no confidence vote and a subsequent general election, all the more likely.
With the possible outcomes hardening between a General election and any possible Corbyn win and a no deal Brexit and the impact that will have on trade, businesses will be crossing their fingers and hoping for Boris to come up with an acceptable alternative to the Irish backstop and make a deal with Europe in the dwindling time before 31 October.
Here at CPA we are also concerned that the moves will further delay action on late payments and the fight against the late payment culture. Late payments continue to choke British business, especially SMEs and arguably are more damaging overall on an ongoing basis than the one time impact that would result from even the worst Brexit outcome.
Action on late payments has been proposed by the Small Business Commissioner. While we at CPA do not agree that the proposals go far enough, any action that helps fight late payments is welcome, as is any publicity the issue gets. Brexit however continues to crowd out the issue from the political calendar.
What happened?
Three Conservative members of the Queen’s Privy Council took the request to suspend Parliament to the monarch’s Scottish residence in Balmoral this morning on behalf of the prime minister.
That request has now been approved, giving the government the ability to suspend Parliament no earlier than Monday 9 September and no later than Thursday 12 September, until Monday 14 October.
Boris Johnson says the Queen’s Speech will now take place after the suspension ends, on 14 October, to outline his “very exciting agenda”.
The PM told Sky News that claims he was trying to prevent MPs from blocking a no-deal exit were “completely untrue”. He said his plans were about legislating for his domestic priorities such as the NHS and crime, and parliament would have “ample” time to debate Brexit.
But it means the time MPs have to pass laws to stop a no-deal Brexit on 31 October has been cut.
What they said
House of Commons Speaker John Bercow said it was a “constitutional outrage”. “However it is dressed up, it is blindingly obvious that the purpose of [suspending Parliament] now would be to stop [MPs] debating Brexit and performing its duty in shaping a course for the country.”
Labour leader Jeremy Corbyn said: “Suspending Parliament is not acceptable, it is not on. What the prime minister is doing is a smash and grab on our democracy to force through a no deal,”
He said when MPs return to the Commons next Tuesday, “the first thing we’ll do is attempt legislation to prevent what [the PM] is doing”, followed by a vote of no confidence “at some point”.
Leader of the House Jacob Rees-Mogg, who was at the meeting with the Queen, said the move was a “completely proper constitutional procedure.”
Earlier, Mr Johnson said suggestions the suspension was motivated by a desire to force through a no deal were “completely untrue”.
He said he did not want to wait until after Brexit “before getting on with our plans to take this country forward”, and insisted there would still be “ample time” for MPs to debate the UK’s departure.
“We need new legislation. We’ve got to be bringing forward new and important bills and that’s why we are going to have a Queen’s Speech,” Mr Johnson added.
A number of high profile parties, including former Prime Minister John Major, have threatened to go to the courts to stop prorogation.
A legal challenge led by the SNP’s justice spokeswoman, Joanna Cherry, is already working its way through the Scottish courts.
After the announcement, Sir John Major said he had “no doubt” Mr Johnson’s motive was to “bypass a sovereign Parliament that opposes his policy on Brexit”, and he would continue to seek legal advice.
While it is not possible to mount a legal challenge to the Queen’s exercise of her personal prerogative powers, a judicial review could be launched into the advice given to her by the prime minister – to determine whether that advice was lawful.
Only this morning, MPs were massing to try to block a possible no deal, and on Tuesday they announced that they intended to use parliamentary process to do so.
But with Parliament set to be suspended, those opponents have only a few days next week to push for their changes.
Senior Tory backbencher and former attorney general Dominic Grieve said the move by Mr Johnson could lead to a vote of no confidence – something opposition parties have left on the table as another option to stop no deal, saying “There is plenty of time to do that if necessary [and] I will certainly vote to bring down a Conservative government that persists in a course of action which is so unconstitutional,” .
Nicola Sturgeon said MPs must come together to stop the plan next week, or “today will go down in history as a dark one indeed for UK democracy”. She went on to say Boris Johnson is acting like a “tin pot dictator”
Mr Johnson has written to MPs to outline his plan, adding: “There will be a significant Brexit legislative programme to get through but that should be no excuse for a lack of ambition!”
He mentioned the NHS, tackling crime, infrastructure investment and the cost of living as important issues.
He also called on Parliament to show “unity and resolve” in the run up to the 31 October so the government “stands a chance of securing a new deal” with the EU.
Former Tory Chancellor Philip Hammond called it “profoundly undemocratic”.
The leader of the Liberal Democrats, Jo Swinson, said it was a “dangerous and unacceptable course of action. He knows the people would not choose a no deal and that elected representatives wouldn’t allow it. He is trying to stifle their voices,”
The leader of the SNP in Westminster, Ian Blackford, accused Mr Johnson of “acting like a dictator”, while First Minister of Wales Mark Drakeford said he wanted to “close the doors” on democracy.
The Green Party’s co-leader said Boris Johnson was “clearly rattled” by moves to stop a no-deal Brexit. Jonathan Bartley accused Boris Johnson of a “cynical, cowardly move, a power grab” with a plan to suspend Parliament, and said people should be on the streets protesting against the “constitutional outrage”.
However, Conservative Party Chairman James Cleverly said setting out a legislative programme via a Queen’s Speech was what “all new governments do”.
US President Donald Trump tweeted his support for Mr Johnson, saying it “would be very hard” for Mr Corbyn to seek a no-confidence vote against the PM, “especially in light of the fact that Boris is exactly what the UK has been looking for”.
Brexit Party MEP Alex Phillips said MPs “only had themselves to blame” for the move. “They have made themselves the obstacle in front of delivering the referendum result. Boris Johnson is saying he now needs to remove that obstacle, and quite right too.”
The leader of the DUP, Arlene Foster, also welcomed the decision to suspend Parliament and have a Queen’s Speech, but said the terms of her party’s confidence and supply agreement with the Conservatives would now be reviewed. Adding “This will be an opportunity to ensure our priorities align with those of the government,” .
The last two times Parliament was suspended for a Queen’s Speech that was not after a general election the closures lasted for four and 13 working days respectively.
If this prorogation happens as expected, it will see Parliament closed for 23 working days.
MPs have to approve recess dates, but they cannot block prorogation.
Only this morning it seems the anti “no deal” troops had come up with a plan.
This morning MPs seeking to prevent a no deal Brexit agreed upon a course of action, following a strategy meeting yesterday.
The conference, which encompassed numerous opposition parties, ended with leaders agreeing to focus on legislation to prevent a disorderly Brexit rather than on a no confidence vote in the PM.
Lib Dem leader Jo Swinson said that the latter ‘remains a last resort, if you like, to be able to enforce the will of Parliament, but the main proposal is going down the legislative route.’
Jeremy Corbyn, the leader of Britain’s Labour Party, agreed at the meeting of opposition lawmakers to shelve his plan for toppling Prime Minister Boris Johnson next week and instead focus on passing a law to head off a no-deal Brexit.
For advocates of staying in the European Union, the word that lawmakers opposed to a no-deal exit were ready to collaborate was a welcome sign.
In a fast moving story though, Johnson seems now to have sidestepped those plans.
Sterling falls after parliament suspended
The pound dropped and shares in British-focused companies were marked lower yesterday following the suspension of parliament for five weeks.
The City saw Boris Johnson’s announcement as shortening the odds on a no-deal Brexit. James Smith, an economist with the ING banking group, said, “This means the Brexit process is likely to go down to the wire. No deal has become more likely, although we narrowly think a no confidence vote, which leads to an Article 50 extension and early elections, remains the most probable scenario.”
Housebuilding stocks fell yesterday as Brexit uncertainty dented investor confidence in the property sector. Persimmon, Berkeley, Barratt Developments and Taylor Wimpey were among the biggest decliners on the London stock exchange, all down between 3-5%.
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 you 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.
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.
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.
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 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