Business news 4 July 2024
As the country votes for the next government, we bring you the business news that we thought would interest our members.
James Salmon, Operations Director.
Who is next?
Thankfully, we have a short election cycle – unlike the US – and we will soon be able to get past the election campaigning and see whether the Labour Party and it’s leader Keir Starmer have the predicted votes to end 14 years of opposition and take over as the governing party. The polls point to a landslide with a 20% lead, but can Prime Minister Rishi Sunak claim an unexpected extraordinary turnaround victory?
UK services sector growth slows
A closely-watched survey suggests the level of activity in the UK services sector slowed in June, compared to May. The S&P Global UK services PMI survey scored 52.1 in June, down slightly from 52.9 in May. Growth in the sector is still increasing, but at a slower rate. Joe Hayes, principal economist at S&P Global Market Intelligence, said: “We are seeing some evidence of a pre-general election seize-up across the UK services economy, with growth in business activity slowing to a seven-month low.” The survey revealed that some firms were hesitant to place orders and commission new projects before knowing the new government.
IPO activity gathers momentum
Eight companies chose to float on either the London main market or AIM between January and June, according to analysis by EY, raising a total of £513.8m. Although the total proceeds raised this year are slightly down on the first half of 2023, IPO activity is growing after bottoming out in Q4 2023. Scott McCubbin, EY UKI IPO Leader, said: “The London stock market is steadily gaining momentum after a challenging two years stifled by macroeconomic and geopolitical uncertainty. The forthcoming UK election outcome is expected to provide businesses with much-needed regulatory and policy clarity.”
Labour offers stability in face of Europe’s turmoil
City analysts suggest Britain could be seen as a stable safe-haven in Europe with one expert claiming a Labour majority would offer the prospect of growth and wealth creation. Nuwan Goonetilleke, the head of shareholder assets at Phoenix Group, says money is already pouring into to UK markets. But Joshua Mahony, chief market analyst at Scope Markets, acknowledges that may be more to do with the political turmoil in Europe, and France in particular, than the prospect of a moderate Labour government. Elsewhere, the Times reports on figures from Calastone showing just over £11bn was invested in equity funds during the first six months of the year. This is put down to markets expecting rate cuts from the Bank of England, making shares more appealing than lower-risk government bonds.
Labour accused of plotting secret council tax hike
Labour has been accused of plotting a secret hike in council tax after it was revealed that shadow chief secretary to the Treasury, Darren Jones, was recorded telling a meeting in his Bristol constituency in May that the council tax system is “very out of date” but Labour could not admit to wanting to reform it as they would never get elected. Mr Jones was asked why Labour would not pledge to raise council tax on properties worth more than £1m. He replied: “Let me be frank with you about council tax, right. Any party has ever suggested revaluing council tax has never been elected. They just haven’t.” Tory Chief Secretary to the Treasury, Laura Trott, said: “Labour have been caught saying the quiet part out loud [admitting that] talking about any of their secret taxes on the family home before the election would cost them votes.”
Hunt: You can prevent damaging super-majority
Writing in the Times, Jeremy Hunt says raising taxes is in Labour’s DNA but the party doesn’t want to come clean with the public. The Chancellor goes on to make a plea for voters to back the Tories, arguing that just 130,000 people changing their voting intention could prevent Labour taking a super-majority and ruining Britain’s competitiveness. Elsewhere, Tory MP Priti Patel warns in the Telegraph that “Labour stands poised to inherit a country on the way up” but the party “will set Britain on a path backwards and towards bankruptcy.” Meanwhile, the Sun comes out for Labour, despite a poll of its readers revealing 78% support Reform, the Mirror too backs Labour saying voters have “the chance to vote for hope.”
Smith & Nephew
Swedish activist investor Cevian disclosed a 5% stake in London-listed medical device company Smith & Nephew, the maker of hip and knee implants and medical robotic technologies.
Vodafone
Vodafone is looking to invest some EUR140 million in artificial intelligence systems this year to improve the handling of customer inquiries, the company said on Thursday. Vodafone said it is investing in advanced AI from Microsoft and OpenAI to improve its chatbot, dubbed TOBi, so that it can respond faster and resolve customer issues more effectively.
Election ructions hit French economy
Private sector activity in France fell in June amid political uncertainty caused by the decision to hold snap parliamentary elections in July. Business confidence also fell to a five-month low. Kristina Hooper, chief global market strategist at Invesco, said an outright majority for the National Rally, which is led by Marine Le Pen, “would not be well received by markets, but it would not be as negative as a far-left majority.”
Wealthy fleeing UK ahead of Labour victory
The wealthy are already leaving Britain due to concerns about potential tax hikes under Keir Starmer’s leadership. City lawyer Ayesha Vardag revealed that many clients have chosen to relocate to destinations like Dubai and Monaco to avoid increased capital gains and inheritance tax. This trend reflects growing anxiety about a potential Labour government with a significant majority. Ms Vardag told the Telegraph: “England is not so great that you want to give away half of your business when you can just move to another beautiful country. It’s extraordinarily naive to think that everyone will stay.” Meanwhile, Toby Tallon, a partner at wealth manager Evelyn Partners, told the Financial Times that some of his clients were “taking action now to sell assets”, while others were “sitting tight for now” pending the results of the election.
Labour planning £15bn tax raid
Analysts at the investment bank Citi expect a Labour government to launch a £15bn tax raid on pensions, capital gains and inheritance in the autumn, with reforms to council tax also likely to be on the horizon. Benjamin Nabarro, Citi’s chief UK economist, said Labour would “ultimately tax and spend more than the current baseline” adding that the next five years were likely to lead to a “painful, but also probably unavoidable” path to higher taxes. “Wider reforms – such as changes to council tax – will probably take longer. We would not rule out changes to various tax thresholds – including income tax. But in total, we think a total tightening of £15bn in an October budget is not an unreasonable base case here,” Mr Nabarro explained.
Small World money transfer service collapses
Thousands of people in developing countries have been left waiting for vital payments after the Small World money transfer service collapsed. Small World, part of LCC Trans-Sending, allowed users to send cash for pickup collection in over 170 countries. The company ceased trading on 10 June, leaving customers who paid money into the company’s account without receiving their expected payments. Small World was popular in west Africa and the Philippines, often used by workers to send money back to families or for charitable payments. The Financial Conduct Authority (FCA) announced that Small World’s parent firm, LCC Trans-Sending, had entered special administration. Accountants at Grant Thornton are now reviewing the books to determine the amount owed to customers. Customers who made payments after the administrators were appointed are likely to receive their full amount back.
Jessops faces closure over unpaid tax
Jessops, the camera shop chain owned by Peter Jones, is facing a winding-up petition from HMRC due to unpaid taxes. The retailer, which has filed for administration three times in four years, could fall into insolvency if it fails to pay its tax liability. Jessops reported a 7.5% decline in sales to £19.97m in the year to October 2023, resulting in a loss of £1.2m. HMRC has asked the court to shut down Jessops’ operations, but the petition can be withdrawn if the company pays its tax debt. Analysis from PwC has shown that the number of winding up petitions against companies was up by 44% in April, after the total tax debt reached £45.9bn at the end of March last year.
Latest Insolvencies
Petitions to wind up (Companies) – MOUNT GROUP STUDENT INNOVO LIMITED
Petitions to wind up (Companies) – THE FROCK SHOP LIMITED
Petitions to wind up (Companies) – ONLINE DIGITAL SERVICES LTD
Petitions to wind up (Companies) – BOYEE TRADING LTD
Petitions to wind up (Companies) – ADVANCED BUILDING & ROOFING SUPPLIES LIMITED
Appointment of Administrator – HEAT EXCHANGE GROUP SERVICES LIMITED
Appointment of Administrator – INCARTUS LTD
Appointment of Administrator – WH OLDCO LTD
Appointment of Administrator – MCDERMOTT SMITH LAW LTD
Appointment of Administrator – AGO HOTELS LTD
Appointment of Administrator – RENEWABLE ENERGY NETWORK LIMITED
Appointment of Administrator – RANSFORDS
Appointment of Administrator – THE HOUSE THAT JACK BUILT (DAY NURSERY) LIMITED
Appointment of Liquidators – BENKERT UK LTD
Appointment of Liquidators – TALAT LIMITED
Appointment of Liquidators – 5 PILLAR CONSULTING LIMITED
Appointment of Liquidators – BISHOP FLEMING INVESTMENTS LIMITED
Appointment of Liquidators – THALLE CONSULTING LTD
Appointment of Liquidators – MANAGE CHANGE LTD
Appointment of Liquidators – STOP THAT BURGLAR LIMITED
Appointment of Liquidators – MAIDEN LANE CAPITAL LTD
Appointment of Liquidators – OXFORD EXPERT OPINION LIMITED
Appointment of Liquidators – PYRAMID COMPUTER & TRAINING SERVICES LIMITED
Appointment of Liquidators – PORTHTOWAN BEACH CAFE LIMITED
Appointment of Liquidators – WAIN HOMES (WEST MIDLANDS) LIMITED
Appointment of Liquidators – MEC MARINE LIMITED
Appointment of Liquidators – DIOLOGIC LIMITED
Appointment of Liquidators – MJRI LIMITED
Appointment of Liquidators – CASEMAKER (HEATHROW) LTD
Appointment of Liquidators – LANDJUST LIMITED
Appointment of Liquidators – MR DUNCAN MCRAE LIMITED
Appointment of Liquidators – BESPOKE FINANCIAL MANAGEMENT LIMITED
Appointment of Liquidators – JON LURIE ASSOCIATES LIMITED
Appointment of Liquidators – CHROMA THERAPEUTICS LIMITED
Appointment of Liquidators – NIRMAL PRIVATE LIMITED
Appointment of Liquidators – NORMANDY INVEST LTD
Appointment of Liquidators – ANSTEE SERVICES LTD
Winding up Order (Companies) – IPSWICH A LTD
Winding up Order (Companies) – REDNOTCH LIMITED
Winding up Order (Companies) – TECH BANDIT LIMITED
Winding up Order (Companies) – MS BUILDING & PLUMBING LTD
Winding up Order (Companies) – UK GERMAN MODIFICATIONS LIMITED
Winding up Order (Companies) – KERRY FOODS SPALDING LIMITED
Winding up Order (Companies) – WALSALL GYM LIMITED
Winding up Order (Companies) – QUBICLE LIMITED
Winding up Order (Companies) – FEDORSNEAKS LTD
Petitions to wind up (Companies) – LONDON LIONS GROUP LIMITED
Appointment of Liquidators – ANNA FOX ORTHOPAEDICS LIMITED
Appointment of Liquidators – MADELEINE FASHION LIMITED
Appointment of Liquidators – FRIENDS AELRIS LIMITED
Appointment of Liquidators – HEALTHCARE PURCHASING ALLIANCE LIMITED
Appointment of Liquidators – BROUGHTON HR SOLUTIONS LIMITED
Appointment of Liquidators – SCOTIABANK EUROPE LIMITED
Appointment of Liquidators – H2O RESOURCES LTD
Appointment of Administrator – RED NOTICE LIMITED
Appointment of Liquidators – EMPRISIA LIMITED
Appointment of Liquidators – BRITANNIA MATERIALS HANDLING LTD
Appointment of Liquidators – HUGH BETHELL LIMITED
Appointment of Liquidators – UPTONS ENTERPRISES LTD
Petitions to wind up (Companies) – MYOS FINANCE UK LIMITED
Petitions to wind up (Companies) – CHANNEL 7 LIMITED
Petitions to wind up (Companies) – AMANZI PLUMBING & HEATING LIMITED
Petitions to wind up (Companies) – REFLECTIVE THERAPY LIMITED
Petitions to wind up (Companies) – CENTRAL LONDON PROPERTIES ONE LTD
Petitions to wind up (Companies) – HERRING PROPERTIES LIMITED
Petitions to wind up (Companies) – VICTORIANA (UK) LIMITED
Petitions to wind up (Companies) – OUTFITTERS LIMITED
Appointment of Liquidators – G.W.COLLINGWOOD & SONS LIMITED
Appointment of Liquidators – WRIGHT INTERIM MANAGEMENT LIMITED
Petitions to wind up (Companies) – RTS GROUNDWORK’S AND SOLAR INSTALLATION CONTRACTORS 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!