Business news 3 September 2024
Labour rush to reassure business ahead of rights reforms. Manufacturing, Steel, Retail, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Labour rush to reassure business ahead of rights reforms
Government ministers will seek to reassure employers after reports that hiring has stalled in the face of new labour laws. Labour’s workers’ rights plans include a “right to switch off” to limit out-of-hours contact from managers, the right to a four-day week, a ban on zero-hours contracts along with changes to the definitions of employee, worker and self-employment, and more rights for staff from day one in a new job. Neil Carberry, chief executive of the Recruitment and Employment Confederation industry group, said businesses were taking a ‘wait and see’ approach to hiring. Angela Rayner, the deputy prime minister, and Jonathan Reynolds, the business secretary, will attempt to placate business leaders’ fears at a breakfast meeting today, with John Lewis, Sainsbury’s, BT, McDonald’s and Octopus Energy reportedly attending.
UK manufacturing sector surges
The UK’s manufacturing sector has shown significant growth, with the S&P Global UK manufacturing PMI survey reporting a score of 52.5 for August, the highest in 26 months. This marks an expansion in five of the last six months, with output, new orders, and employment all increasing. Rob Dobson, director at S&P Global Market Intelligence, said: “The upturn is broad-based across manufacturing, with the investment goods sector the stand-out performer.” The UK economy has rebounded strongly, growing 0.6% in the second quarter, and remains the fastest-growing economy in the G7 for early 2024. Despite a decline in export orders, domestic demand has helped sustain growth, compensating for international challenges.
UK steelmakers stymied by high electricity costs
British steelmakers are being put at a distinct disadvantage to their French and German competitors due to higher energy costs, an industry body has warned. Analysis by UK Steel shows steel producers in Britain are paying an average of £66 per megawatt-hour for wholesale electricity this year, while the cost in France is £43/MWh and in Germany is £50/MWh. The lobby group wants network charges to be reduced dramatically to close the gap, warning that without lower electricity costs the UK’s green energy transition will be put at risk.
Retail sales struggle amid rising costs
Retail sales in the UK increased by only 1% in August, a significant drop from last year’s 4.1% growth and below the 12-month average of 1.2%, according to the British Retail Consortium (BRC) – KPMG Retail Sales Monitor. Food sales saw a year-on-year rise of 2.9%, while non-food sales fell by 1.7%. Linda Ellett, UK head of consumer retail and leisure at KPMG, said: “Consumer sentiment is gradually starting to improve, but there still remains some nervousness around potential tax rises and the cost of putting the heating back on when the cooler weather arrives.”
Markets
UK and EU capital markets were relatively subdued due to the NYSE closure for the US Labour Day public holiday. Yesterday, the FTSE 100 closed down 0.15% at 8363.84 and the Euro Stoxx 50 closed up 0.30% at 4973.07.
This morning on currencies, the pound is currently worth $1.31 and €1.187. On Commodities, Oil (Brent) is at $76.8 & Gold is at $2505. On the stock markets, the FTSE 100 is currently up 0.1% at 8371 and the Eurostoxx 50 is up 0.06% at 4976.
Natwest
NatWest announced a second cut to mortgage rates in a month, this time targeting business deals, as lenders continue to grapple for customers. Following the announcement, it was soon joined by Barclays also flagging its own cuts again after trimming mortgage lending rates twice last month. And HSBC then declared that it will reduce mortgage rates across the board, with rates to be published tomorrow.
Rightmove
Rightmove jumped 145p yesterday after weekend press speculation in relation to a merger with Rupert Murdoch/ News Corp linked REA Group was confirmed. Whilst REA confirmed no talks had yet got underway, it saw clear benefits in a merger of the two companies and is considering a cash plus stock offer which it has until 30th September to decide whether or not to make. Rightmove have yet to comment on this development.
PM defends pensioner hit as Powell mocked for crash claims
Sir Keir Starmer has defended his decision to cut the winter fuel allowance for 10m pensioners after being widely criticised for the move. The PM claimed it was one of the “tough choices” required to remedy a £22bn “black hole” in the country’s finances left by the previous government. “I don’t want to cut the winter fuel allowance. I don’t think anybody in the Government wants to do that. But we’ve got to fix the foundations of our economy,” he said. His statement comes after commons leader Lucy Powell was derided for claiming not having cut the payments would have led to a run on the pound and the economy crashing, a notion economists dismissed outright. “If there was a risk of a run on the pound I completely missed it,” said Paul Dales, UK economist at Capital Economics.
Labour warned against playing “accounting games” with PFI
Lord Gus O’Donnell, the former head of the UK Civil Service, has expressed concerns over Labour’s potential use of private finance initiatives (PFI) to reduce government spending, stating it would be “crazy” to use PFI merely to shift costs off the balance sheet. He stressed that “the one thing Governments can do better than the private sector, unambiguously, is borrowing money.” O’Donnell highlighted the importance of proper cost-benefit analyses and sensible contracts in infrastructure projects. He also warned against severe cuts to infrastructure spending, advocating for increased investment to improve productivity.
Car makers restrict sales of petrol cars to avoid eco fines
The chief executive of Vertu Motors has said car manufacturers are limiting the supply of petrol and hybrid vehicles in Britain for fear of missing net zero quotas set by the Government. Robert Forrester said auto makers are delaying delivery of cars until next year to avoid hefty fines. The zero emission vehicle (ZEV) mandate requires at least 22% of cars sold by manufacturers to be electric from this year. Mr Forrester explained that manufacturers are having to sell EVs at a loss to attract buyers, adding: “The new car market is no longer a market, unfortunately. It’s a state-imposed supply chain.”
New fund launched for UK pensions to invest in start-ups
Future Planet Capital has launched the British Co-Investment Fund (BCF), the first fund aimed at enabling UK pension funds to invest in local start-ups and scale-ups. This initiative is seen as “much-needed” by both start-ups and pension managers, as it allows for the allocation of up to £1bn into fast-growing companies. Douglas Hansen-Luke, executive chairman of Future Planet Capital, stated: “Over the last few years, British pensions haven’t had any vehicles in which they can invest in venture capital.” The fund aims to provide a professional management vehicle for pension managers, helping them catch up with overseas counterparts. Meanwhile, Aviva has also introduced a dedicated venture capital arm to support the Government’s initiative to channel pension funds into start-ups. This decision aligns with the Mansion House Compact, which encourages UK pension firms to invest 5% of their assets in unlisted assets by 2030.
Latest Insolvencies
Appointment of Liquidators – FUTUREMAKERS GLOBAL LTD
Appointment of Liquidators – SAXON LETTINGS LIMITED
Appointment of Liquidators – COPLEY COMMUNITY LIMITED
Appointment of Administrator – RIGHT STAFF RECRUITMENT LIMITED
Appointment of Liquidators – PAUL PINAGLI ENGINEERING SOLUTIONS LTD
Appointment of Liquidators – IPT DAEMON LIMITED
Appointment of Liquidators – WIRRAL IMPROVED HOMES LIMITED
Appointment of Administrator – PAD PRINTERS LIMITED
Petitions to wind up (Companies) – NABEEL HMC HALAL MEAT SUPPLIER LIMITED
Appointment of Administrator – DANTECH UK LIMITED
Appointment of Liquidators – HARPER PLANT LIMITED
Appointment of Liquidators – DAEDALUS CONSULTING SERVICES LIMITED
Appointment of Administrator – EU TRANSPORT & LOGISTICS LIMITED
Appointment of Administrator – BEIGE PLUS LIMITED
Appointment of Administrator – QTL LIMITED
Appointment of Liquidators – DATA NOTES LTD
Appointment of Administrator – AVANTE TRANSPORT & LOGISTICS LTD
Appointment of Administrator – ABILITY RECRUITMENT SOLUTIONS LIMITED
Appointment of Liquidators – SPH 2011 LIMITED
Petitions to wind up (Companies) – TRENDY TILES LTD
Appointment of Liquidators – LUNAR MOON VENTURES LIMITED
Petitions to wind up (Companies) – UCS PROPERTY INVESTMENT GROUP LTD
Appointment of Liquidators – NIGEL JONES ASSOCIATES LIMITED
Appointment of Liquidators – LE PARC ASSOCIATES LIMITED
Appointment of Liquidators – GRAHAM BENNETT CONSULTANCY LIMITED
Appointment of Liquidators – PETER HAMMOND MOTOR CYCLES LIMITED
Appointment of Liquidators – WESTER ROSS PROPERTY CO LIMITED
Appointment of Liquidators – A & J GREEN ENGINEERING LTD
Appointment of Liquidators – YORKSHIRE HANDLERS LIMITED
Appointment of Liquidators – REEVES BROS (SOUTH EAST) LIMITED
Appointment of Liquidators – SUE LIBRETTO PUBLICATIONS CONSULTANT LIMITED
Appointment of Administrator – BUGIBBA INDEPENDENT LIMITED
Petitions to wind up (Companies) – HAWKES CIDER LIMITED
Petitions to wind up (Companies) – MACELARIE LIMITED
Appointment of Liquidators – JIM TANBURN AND ASSOCIATES LIMITED
Appointment of Liquidators – CODE PROMOTIONAL MERCHANDISE LIMITED
Petitions to wind up (Companies) – MEDIENTE PUBLIC LIMITED COMPANY
Appointment of Administrator – HERBAL LTD
Petitions to wind up (Companies) – SONDER CITI LTD
Appointment of Liquidators – TEIGN ESTUARY MEDICAL LIMITED
Petitions to wind up (Companies) – PERSON CENTRED CARE SERVICES LIMITED
Appointment of Liquidators – M.C.STONE BUILDING SERVICES LTD
Petitions to wind up (Companies) – BAZZMAN LTD
Appointment of Liquidators – EARTHWORKS SOLUTIONS SW LIMITED
Petitions to wind up (Companies) – CHAU CAPITAL UK LTD
Why you should become a member of CPA!
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid, since 1914. We have supported our members through all sorts of difficult trading environments. With high interest rates and a struggling economy and elevated insolvencies, our services can help your business navigate these difficult waters.
Unlike other credit management and debt collection companies, we offer a range of services to our members that are all included as part of a fixed annual subscription, tailored to your needs.
Under your annual subscription you will have access to our main services:
- Our Creditcare credit reports provide credit ratings and limits along with a host of detailed information on your potential customers to enable you to trade with confidence and set appropriate credit policies for new customers.
- Our monitoring service will alert you to any significant changes in the status of those customers.
- Our Overdue account recovery service can be used to chase up payment on any invoices to those customers that have not been paid on time. Unlike other debt collection companies, this service directs your customer to pay direct to you and allows you to maintain your goodwill with them, rather than inserting ourselves into your relationship with you customer and insisting they pay CPA instead. Our Overdue account recovery service resolves over 80% of accounts referred to us.
All of the above services and other complimentary services such address verification, are included in your subscription!
And for the small minority of debts not resolved through our Overdue account recovery service, you can refer the debt to our collections department to escalate the late payment collections process.
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 and be warned of any potential risks. CPA has been improving business cash flow for over 100 years, by tackling late payers and campaigning against the late payment culture in the UK.
Unlike other credit management companies, we offer our members a fixed annual subscription regardless of how high the value of their debts maybe!
Rather than to borrowing more money to improve your cashflow, CPA suggests that business owners tackle the problem at its source. If late payments are a strain on your cashflow, then talk to CPA about how we can help you reduce those late payments.
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’s collection department 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.