Pay cuts – business news 22 September 2020.
James Salmon, Operations Director.
Almost half employers to consider pay cuts, UK hospitality lock-down, support to extend the kickstart job scheme, 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.
Almost half employers to consider pay cuts
A survey of 932 members of the Chartered Management Institute (CMI) has found that 18% have made staff pay cuts in their organisation.
A further 30% said pay cuts had not been made but would be considered if it was necessary for their survival.
Some 52% said their organisations would not make pay cuts in any circumstances.
The survey also found that a second lockdown was by far the biggest economic concern identified by respondents, with 63% citing it, though 27% said that a no-deal Brexit on December 31 was a bigger worry.
Covid-19 general news
Fears of a second wave of covid-19 ricocheted across the globe. Total global cases rose above 31 million while deaths climbed to 964,800
The government has asked that workers should work from home if possible as the country prepares to impose new measures on social distancing. “If it is possible for people to work from home, then we’d encourage them to do so,” U.K. Cabinet Office minister Michael Gove told Sky News this morning.
Medical experts in the Uk have made their voices heard, both the chief scientific adviser Patrick Vallance and chief medical officer Chris Whitty in joint press conferences made clear a fresh rise in hospitalisations is now likely as new cases rise to around 50,000 per day by October if no new measures are taken. Yes 50,000! It appears the rising caseload amongst young people have broadened to include all age groups.
Boris Johnson’s office said hospitality venues across England will have to close by 10 p.m. from Thursday, , as it seeks to halt a surge in covid-19 cases. The U.K. prime minister will hold a Cobra emergency committee meeting this morning before briefing Parliament on further curbs and making a broadcast to the nation this evening.
Chancellor Rishi Sunak is set to extend the government’s coronavirus loans schemes in an effort to protect the UK economy during a possible second wave of Covid infections. The four business loans schemes will be extended for applications until the end of November, according to reports. Banks will be allowed to process the loans until the end of the year.
The government’s furlough program due to end on 31st October has received claims totaling 39.3 billion pounds, according to data released by HMRC. Help for the self-employed totaled 13.4 billion pounds, bringing total spending on supporting workers to 52.7 billion pounds.
UK Health Secretary Matt Hancock did not rule out England’s pubs being closed this weekend as ministers prepare extra measures to curb the spread of coronavirus. Hancock said the government had not yet taken the “final decisions” on what response was necessary, but said the changes would be announced in the “very, very near future”.
America reported nearly 40,000 new cases on Sunday as it approached a cumulative 200,000 deaths.
In Spain, 850,000 people in Madrid were told to stay at home as new restrictions came into force on Monday.
UK’s hospitality sector warns new lockdown would be ‘nail in coffin’
Trade body UKHospitality has said 900,000 jobs would be at risk if the sector was forced to close again without financial support, with CEO Kate Nicholls warning that debt will create a “difficult spiral” for businesses going forward. Her comments come as more than 175 publicans signed an open letter to the prime minister predicting that a curfew – or stronger measures such as a second national lockdown – could devastate a sector “already on its knees”.
UK expands Kickstart jobs scheme to attract small businesses
The Government has opened its £2bn Kickstart jobs scheme to intermediaries following criticism that many small businesses would be left out. The scheme will pay employers’ costs for six-month work placements for 16- to 24-year-olds but companies taking on fewer than 30 new young workers were prevented from applying directly for funds. The Federation of Small Businesses is one intermediary given permission to help small businesses offering fewer than 30 vacancies apply for funding. The FSB has teamed up with Adecco Working Ventures to help facilitate applications. Thérèse Coffey MP, Secretary of State for Work and Pensions, said: “Small businesses are absolutely vital to our recovery as we build back better and a key part of the Kickstart Scheme. It’s great to have the Federation of Small Businesses and Adecco supporting them to take full advantage of our landmark Kickstart Scheme by becoming a national Kickstart gateway.”
FSB backs shadow chancellor call to rule out tax rises
The shadow chancellor has said the Tories’ failure get a grip of COVID-19 and reform furlough is plunging the UK “deeper into an economic crisis”. Anneliese Dodds said “despite the extraordinary sacrifices of the British people, our country is still suffering more than many others”. Responding to Ms Dodds’ first conference speech as Labour’s finance chief, the Federation of Small Businesses National Chairman Mike Cherry, said: “It’s encouraging to hear the Opposition pledging to work hand in hand with small businesses at this incredibly difficult juncture. The Shadow Chancellor is absolutely right to call on government to rule out any tax rises in the immediate future – any hikes would seriously stifle our nascent economic recovery.”
Markets.
UK and European equity indices posted significant losses yesterday on diverse concerns over C-19 progression and fears of new lockdowns (with their economic consequences), and the potential for further social restrictions.
Airlines, hotels and oil were all down while bank shares also suffered. Analysts said the moves were corrective rather than a repeat of the sell-offs witnessed in March. Britain’s blue chip companies saw £50bn wiped off their value as investors bet new rules to minimise social contact would wreck the fragile economic rebound.
In the US there is concern that with the fight breaking out along party lines over the new judge in the US senate following the death of Ruth Bader Ginsburg, prospects for a fresh stimulus package before November’s election look increasingly unlikely.
Planned new law to safeguard City of London’s global standing
The UK plans to introduce new financial services sector legislation to maintain the City of London’s global competitiveness and openness after it leaves the European Union. John Glen, Britain’s financial services minister, said that the new Financial Services Bill would create a modern, flexible and robust system of financial regulation: “(It) will underpin the continued global competitiveness of the UK financial services sector by enhancing its world leading prudential standards, promoting openness to international markets and maintaining the effectiveness of financial services regulatory framework and sound capital markets.” Mr Glen declined to elaborate on Britain’s negotiations with the EU on financial market access, but noted that a sector that pays £75bn pounds in tax each year was at the centre of the Government’s efforts to secure trade deals with countries across the world
Rail franchises
The Government will end its system of rail franchises in a deal to help train operators through the pandemic. The government will now meet revenue shortfalls until 2022, and move towards a model in which operators receive a fixed fee rather than relying on passenger numbers. The current arrangement had been beset by poor service and strikes even before covid-19 hit.
Unilever wins Dutch backing for London shift
Unilever’s Dutch shareholders have backed plans to transfer the company into a London-based entity. The FTSE 100 Anglo-Dutch company said that more than 99% of investors in its Dutch arm had voted to base the entire group in London. However, growing political support for a Dutch law that would hit multinationals leaving the Netherlands with billions in exit taxes could scupper the plans.
Nikola
Trevor Milton said he would quit as executive chairman of Nikola, the electric-lorry startup he founded in 2014. On September 10th Hindenburg Research, an investment firm, released a report alleging that Nikola is an “intricate fraud” and claimed the founder made misleading statements. Mr Milton said he would defend himself against “false allegations”. Stephen Girsky, formerly of General Motors, will replace him
Banks
The share prices of HSBC and Standard Chartered tumbled to their lowest since the mid-1990s, following money-laundering allegations. Barclays and Deutsche Bank’s also fell after leaked suspicious-activity reports, submitted to America’s Treasury but are not necessarily proof of wrongdoing, appeared to show the banks, along with other financial institutions, allowed allegedly dirty money to be transferred around the world for years.
MPs call for loan charge extension
Over 50 MPs have signed an open letter to the Chancellor Rishi Sunak calling for an immediate delay to the loan charge settlement deadline. The letter from the Loan Charge All Party Parliamentary Group to Mr Sunak, states: “We are writing to implore you to delay the date for reporting the loan charge and concluding settlement agreements from 30th September 2020 to 31st January 2021. This is essential, to allow all those who wish to do so adequate time to settle and also due to the unforeseen impacts of the COVID-19 crisis. The delay is vital due to effect of the COVID-19 pandemic on business and the economy. As HMRC knows, if the loan charge is imposed, as well as forcing individuals into bankruptcy, it will also close businesses (where company directors are facing the loan charge). This in turn will cause job losses. A sensible delay gives the opportunity to avoid much of this damage.”
Demand for face-to-face financial advice ‘remains strong’
New research from Openwork has suggested that COVID-19 is driving demand for advice and has not diminished popularity of face-to-face support. Nearly one in five (17%) adults said they are now more likely to seek financial advice in the wake of economic hit from COVID-19 rising to nearly one in four (23%) among under-35s.
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 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.