Business news 22 November 2022

James Salmon, Operations Director.

Who are the best and worst payers?

The Department for Business, Energy, and Industrial Strategy (BEIS) has revealed analysis of late payments by large cap listed businesses on the the FTSE 100 and 250.

While some companies pay all their invoices on time, others are shown topay 100% of their suppliers late.

Those in the Food & Tobacco sector are revealed to be the worst late payers, with a 70% average paying invoices late. of invoices paid late. The next sector is the cash rich  Oil & Gas sector which pays 38% of invoices late  and the Electronics  sector matches them on 38%.  Electronics has actually regressed badly  with late payments increasing by 46% from last year.

Looking at payment days, the beverage industry is clearly the worst payer,  taking an average of 95 days to pay invoices to suppliers.

In contrast, the three best sectors for paying are the Utilities sector that pays on average in 19 days, Banking that pays in 20 days, and Residential that also pays in 20 days.

Output drops to its lowest since first Covid lockdown

Analysis by Lloyds Bank reveals twelve of the fourteen key sectors of the economy experienced a drop in output in October. This is up from nine in September and the highest number to report contraction since May 2020. Rising inflation was behind the decline, forcing businesses and consumers to cut back on spending, PMI data scrutinised by the bank showed. Jeavon Lolay, head of economics and market insight at Lloyds Bank commercial banking, commented: “With both our domestic challenges and global headwinds unlikely to materially recede in the short term, the key question revolves around how long this downturn may last.” However, there are parts of the economy that continue to perform well. Providers of software services are reporting a rise in new orders while food and drink had the slowest fall in demand of any manufacturing sector.

PM wants more skilled foreign labour

Rishi Sunak told the Confederation of British Industry (CBI) annual conference on Monday that attracting more highly skilled workers to Britain would boost the economy and help turn the UK into “a beacon for the world’s best and brightest.” The Prime Minister made the remarks after CBI director-general Tony Danker called for the Government to loosen immigration rules as businesses were being restricted by a lack of suitable workers. Meanwhile, Keir Starmer, the Labour leader, is to tell business leaders the days of “low pay and cheap labour” must end in his own address to the CBI on Tuesday. He is expected to vow to be “pragmatic” about the shortage of workers and not ignore the need for skilled migrants, but stress that any changes to the points-based migration system “will come with new conditions for business. We will expect you to bring forward a clear plan for higher skills and more training, for better pay and conditions, for investment in new technology,” Starmer will say.

Retail footfall expected to rise on Black Friday

New analysis suggests that retail footfall is expected to increase 12.8% on 25 November this year, also known as Black Friday, as shoppers capitalise on discounts amid inflationary pressure and fears around Christmas supply shortages. Experts say that UK shopping centres are likely to see a 16.3% increase in footfall compared to last year, while high streets are expected to see a 13.2% rise. However, footfall will still be 7.8% lower than Black Friday 2019, before the coronavirus pandemic.

Volume of office space in use shrinks

The City of London witnessed the second-greatest decrease in office usage in the year ending March 2022, with accountancy giants Deloitte and BDO among those not to renew leases on prime real estate in the capital. About 1.8m square metres of workspace was abandoned in London, according to Boodle Hatfield, while Bristol, Leeds and Newcastle-upon-Tyne also saw a significant downturn in workspace use. David Rawlence, a senior associate at the law firm, said: “Businesses that have adopted hybrid working models may not be prepared to lease the same amount of floorspace as pre-pandemic or may be unwilling to commit to space which is not ‘Grade-A.’”

OBR bound to be wrong

Professor David Miles, one of three members of the Office for Budget Responsibility’s executive, has admitted that the ‘central estimate’ – the economic outcome it considers most likely – produced for last week’s Autumn Statement was “virtually certain” to be incorrect. the OBR changes its forecast all the time, he explained, due to changes to the economy. However, writing in the Telegraph, Professor Miles hit back at critics of the watchdog and insisted its forecasts “can still be useful.” Tory MP Jacob Rees-Mogg claimed after last week’s Autumn Statement that the watchdog had “let the nation down” and warned against outsourcing fiscal and monetary policy to the OBR and the Bank of England. “The Autumn Statement is based on parameters set by the OBR,” he said. “Its forecasts lead to decisions on taxing and spending that may not only be wrong but damaging. Moreover, while the OBR is not held to account for its decisions, the politicians who act under its auspices will be.”

Cost of energy support

UK Government Borrowing struck £13.5 billion last month in October as Westminster paid out the first costs of the energy support schemes for households and businesses. The Office for National Statistics said the reading was £4.4 billion higher than the same month last year and was the fourth highest figure for October on record. The figure for October was, nevertheless, below the expectations of economists, with a consensus of experts predicting borrowing of £21 billion for the month.

Why should you become a CPA member!

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 some time to come.

CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. And we provide credit information so you can monitor and assess your key customers.

Unlike other credit management companies, we offer our members a fixed annual subscription regardless of how high the debt value maybe!

No face-to-face meeting required – just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email today.

When you see your money come in, you will be so glad you used CPA.

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections


Do you have a commercial late payer that is causing you grief? Use CPA’s no-win, no-fee, commercial debt recovery service!

If you have a particular business customer who is late paying and causing you sleepless nights, why not offer it to CPA for purchase on recourse?

CPA’s collection department will then pursue the debt. We will be liable for any costs incurred and then when we have recovered the debt, we will pay you the net principle debt recovered less our percentage.

Once you have enjoyed that success then you can consider the more cost effective membership which includes our Overdue Account Recovery service and Status/Credit reports as well as a range of other complimentary services.

Just call  020 8846 0000 and ask for Godfrey Nelson or Cris Shirley (business hours) or email today.

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.


Get compensated for previous late payments

Have you been paid late by business customers in the last six years?

Maybe you no longer work with them. Under legislation, you are entitled to  compensation you for those late payments you have suffered.

You put up with the PAIN – now claim the GAIN!

Claim late payment compensation (LPC) from former business customers who paid you late in the last six years!

CPA (LPC) Recoveries is using our bespoke software and decades of experience to do just that for our clients

Check our compensation calculator to see how much your business could be owed!

Discover NOW the potential value of late payment compensation hidden in your sales ledger!

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.