Business news 3 July 2024
Some of the business news that we thought would interest our members.
James Salmon, Operations Director.
Company interest payments soar
UK company interest costs have risen almost 30%, with higher interest rates and rising debt hitting firms’ profits. Globally, businesses saw interest payments climb by 24.4% in 2023, according to asset management group Janus Henderson’s Global Corporate Debt Index, with the total up by $89bn. The analysis shows that UK companies saw their net debts rise by 3.2% last year, while the global rate hit 4.9%, and that total UK company net debts currently stand at $484bn. It was also shown that total global corporate profitability, excluding financial firms, fell 7.7% last year. Looking ahead, Janus Henderson predicts that borrowing levels will rise by 2.5% this year to a record $8.4trn.
UK needs to go green for growth – CBI
Rain Newton-Smith, chief executive of the Confederation for British Industry (CBI), says going green will help maximise economic growth, warning that the Government “can’t be pro-growth and deliver… without being pro-green.” Arguing that it is “a dangerous error” to try and separate the economy from net zero, she said: “There is still too much in our political discourse that amounts to – ‘can we afford to go for net zero?’ But the real question is – can we afford not to?” Analysis from CBI Economics shows that the UK’s net zero sector grew by 9% in 2023. A recent CBI Going for Green report suggests that the next government could add up to £57bn to the by 2030 due to green growth.
Shop price inflation hit 0.2% in June
UK shop prices increased at their slowest pace in nearly three years last month, according to the British Retail Consortium-NielsenIQ Shop Price Index. Prices across the retail sector were up by just 0.2% in the year to June, marking a fall on the 0.6% seen in May. Food prices slowed for the fourteenth consecutive month, climbing by 2.5% compared to 3.2% in May. Non-food prices fell by 1%, outpacing the 0.8% decline logged in May. Victoria Scholar, head of investment at Interactive Investor, said the retail price data “could provide a boost to markets as well as consumer and business confidence.”
Almost 1.8m owe £50k or more in student debt
Almost 1.8m people have at least £50,000 of UK student debt, figures from the Student Loans Company (SLC) show. The data shows that more than 61,000 have balances of above £100,000, while 50 people each owe upwards of £200,000. While the SLC previously said the average balance for loan holders when they start making repayments was less than £45,000, Government data shows that this has now risen to £48,470. In 2023/24, 2.8m people in England made a student loan repayment.
Workers penalised by ‘ridiculous and immoral’ tax anomaly
Workers earning between £15,000 and £120,000 a year could be hit by tax traps that penalise them for their hard work. These anomalies in the tax system can result in workers paying a marginal tax rate of up to 79% and, in some cases, earning just 1p extra could cost them £20,000. Families with children also face high tax rates due to child benefit rules. Lower earners could face higher marginal rates because they are subject to a taper, which is the amount of benefits they lose as their earnings increase. Robert Salter of Blick Rothenberg has hit out at this “ridiculous and immoral” anomaly, saying: “If you think 45% should be the highest rate of tax then why are you charging people on a lot less 55%?”
Mortgage costs almost double since 2010
Analysis from Zoopla shows that the cost of a mortgage for an average priced home has nearly doubled in the 13 years the Conservatives have been in power. In 2010, repayments for the average home were £583 a month. The average now stands at £1,045, with the hike reflecting increases in mortgage costs and inflation, as well as house price growth. The report also shows that under the 13 years of Labour rule stretching from 1997 to 2010, mortgage costs for the average home went up by £272.
Sainsbury’s CEO calls for crackdown on tax ‘loophole’
The CEO of Sainsbury’s, Simon Roberts, has called for a crackdown on a tax “loophole” being exploited by Chinese fast-fashion firms. He highlighted that foreign companies are avoiding import duties in the UK by shipping individual orders directly from countries such as China. Mr Roberts, who has urged ministers to cut interest rates to boost consumer spending, has outlined several other possible reforms, including changes to the business rates and apprenticeship levy systems.
Markets
Yesterday, the UK market weakened but bounced off the 8100 level. Wall Street indexes traded lower after Federal Reserve Chairman Jerome Powell said more evidence was needed before cutting interest rates, while gains in Tesla shares kept losses in check. the FTSE 100 closed down 0.56% at 8121.20 and the Euro Stoxx 50 closed down 0.48% at 4906.33.
Eurozone Inflation
Eurozone Inflation dipped to 2.5% in June, the European Union’s statistics agency said Tuesday, while the closely watched core and services prints held steady. The headline figure was in line with the expectations of economists polled by Reuters. Inflation had nudged up from 2.4% in April to 2.6% in May. Core inflation, excluding the volatile effects of energy, food, alcohol and tobacco, stayed at 2.9% from the prior month, narrowly missing the 2.8% economists had forecast.
Tesla
Tesla reported an unexpected increase in deliveries in the second quarter. Production of 410,831 vehicles was down 5.2% from the first quarter, but deliveries came in at 443,956, up 14.8% from the first quarter and higher than 436,000 Wall Street expected.
Labour plans to use IHT to ‘redistribute’ wealth
Labour plans to use inheritance tax to address intergenerational inequality, according to a leaked recording of shadow Treasury Minister Darren Jones. Mr Jones said he expected a political consensus to form around the idea of using inheritance tax to redistribute wealth. Inheritance tax is currently charged at 40% on estates above £325,000 and is projected to bring in £9.7bn a year by 2028/29. The number of estates subject to the levy is predicted to increase by 50% in the next five years, as the thresholds at which the tax is payable have been frozen while house prices continue to rise. While Labour says it will not raise income tax, VAT, or National Insurance, the party has refused to rule out increases to inheritance tax, capital gains tax, or council tax.
Latest Insolvencies
Petitions to wind up (Companies) – MOBILE HOMES INSTALLATION SPECIALIST LTD
Petitions to wind up (Companies) – PRIME BRANDS LIMITED
Petitions to wind up (Companies) – ADVANCE BIOTECH LABORATORIES LTD
Petitions to wind up (Companies) – GLOBAL BUSINESS TRADELINKS LIMITED
Appointment of Administrator – IPM GLOBAL LIMITED
Appointment of Administrator – QCOM OUTSOURCING LTD
Appointment of Liquidators – MOY CAPITAL LIMITED
Appointment of Liquidators – AE CONSULTING LTD
Appointment of Liquidators – WICKES PROPERTIES LIMITED
Appointment of Liquidators – RED ONION SOLUTIONS LTD
Appointment of Liquidators – XXIII CAPITAL MANAGEMENT LTD
Appointment of Liquidators – RED HAND LIMITED
Appointment of Liquidators – SYNERGI IT SOLUTIONS LTD
Appointment of Liquidators – LODESTONE CONSULTING LIMITED
Appointment of Liquidators – CREWPLANNER LIMITED
Appointment of Liquidators – PROJECT EXECUTIONS LIMITED
Appointment of Liquidators – INEZ CONSULTING LIMITED
Appointment of Liquidators – ROBERTS BUILDING SERVICES LIMITED
Appointment of Liquidators – NET SUPPLY CO. LIMITED
Appointment of Liquidators – REDANGO LTD
Appointment of Liquidators – EZY PRODUCTIONS LTD
Appointment of Liquidators – CROOKFORD SERVICES LIMITED
Appointment of Liquidators – METEORA PARTNERS LLP
Appointment of Liquidators – KENNEDY WILD BIRD FOODS LTD
Appointment of Liquidators – TRANSLATION PHARMA LIMITED
Appointment of Liquidators – RAFF CONSTRUCTION LIMITED
Appointment of Liquidators – T F RESTAURANTS LIMITED
Appointment of Liquidators – THE GROUP OF SEVEN LIMITED
Appointment of Liquidators – TALENT FIRST LIMITED
Appointment of Liquidators – JEREMY PLUMMER CONSULTING LIMITED
Appointment of Liquidators – MAXIMISE CONSULTING LTD
Appointment of Liquidators – MEB CONSULTING SERVICES LIMITED
Winding up Order (Companies) – SUMO INVESTMENTS LIMITED
Winding up Order (Companies) – DBS COINS LIMITED
Winding up Order (Companies) – VIPER COMMERCE LIMITED
Winding up Order (Companies) – TAMARE HOUSE PUBLISHERS LTD.
Winding up Order (Companies) – BORDESSA COOLING LTD
Appointment of Administrator – THE FAIRHURSTS DESIGN GROUP LIMITED
Appointment of Liquidators – WHYTE AND SON (NOTTINGHAM) LIMITED
Appointment of Liquidators – NEIL MORAN ASSOCIATES LIMITED
Appointment of Liquidators – ARKQA LIMITED
Appointment of Liquidators – BB628 LIMITED
Appointment of Administrator – EMPIRE VEHICLE HIRE LIMITED
Petitions to wind up (Companies) – M & L SCOT ENTERPRISE LTD
Petitions to wind up (Companies) – GALLOW PLACE LTD
Petitions to wind up (Companies) – ORIGINAL TASTY KEBAB HOUSE LTD
Petitions to wind up (Companies) – INSTALL GREENER SOLUTIONS LTD
Petitions to wind up (Companies) – WORLD OF SOLAR LTD
Petitions to wind up (Companies) – ROCORSA LIMITED
Appointment of Liquidators – DNS ACTUARIAL CONSULTING LIMITED
Appointment of Liquidators – MICRO FOCUS GLOBAL LIMITED
Appointment of Liquidators – GALILEO UNDERWRITING LLP
Appointment of Liquidators – PINNACAL ALUMINIUM LIMITED
Appointment of Administrator – HI55 VENTURES LIMITED
Appointment of Liquidators – PLUTOS OPERATIONS LLP
Appointment of Liquidators – YORKSHIRE EXCHANGE LTD
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 last one was particularly deadly for suppliers fand we are still seeing elevated insolvencies as businesses struggle.
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!
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.
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 debtpurchase@cpa.co.uk 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.