Business news 5 July 2024
Labour wins general election, British Gas winds-up SMEs. Trade deals, politics, markets, insolvencies, construction, payment firms, national bankruptcy & more business news that we thought would interest our members.
James Salmon, Operations Director.
Labour wins general election
Labour has won the general election in a landslide with Rishi Sunak conceding and congratulating Sir Keir Starmer as results show Labour on course for a majority of 174.
In a short speech Sir Keir called his mandate a great responsibility: “Our task is nothing less than renewing the ideas that hold this country together.”
Speaking outside No 10, Mr Sunak vowed to remain his party’s leader until formal arrangements for selecting his successor are in place. In a short speech, he apologised to unsuccessful Tory candidates and told the public: “I have heard your anger, your disappointment.” The Tory’s are down 250 seats to 121, a record low.
A surge in support for Reform UK hit the Tory vote – Nigel Farage won his Clacton seat and the party taking 3 more seats.
Liz Truss, Sir Robert Buckland, Grant Shapps, Penny Mordaunt and Sir Jacob-Rees Mogg are among the Tory big beasts to lose their seats. Other notable results so far are that George Galloway failed to retain the Rochdale seat he won at a by-election in February; Jeremy Corbyn has defeated his old party to retain his Islington North seat as an independent; the Green party’s co-leader Carla Denyer has been elected as MP for Bristol Central, in a major upset for Labour, while the SNP could left with just six MPs, down from the high of 48 the party achieved in 2019.
The Liberal Democrats are up 63 seats to 71 with 2 still left to be counted.
Can Labour make people feel better off?
The Telegraph looks at the taxes you could face under an incoming Labour government as experts predict Sir Keir Starmer’s party will look to raise funds through raids on capital gains, inheritance and a further tightening of the non-dom regime. There are also fears of a cut to pension allowances, but changes here would not be immediate. Elsewhere, Chris Giles says in the FT that Labour should seek to make people better off through growth rather than redistribution because “people are much happier getting a fair share of a growing pie than fighting over the non-existent proceeds of stagnation.”
British Gas winds-up SMEs
British Gas has filed a record number of winding-up petitions against small businesses, after energy bills surged to record highs in the wake of Russia’s invasion of Ukraine. British Gas Trading sought winding-up orders against 111 companies in 2023. A further 60 were filed so far this year. It marks a significant increase on previous years, with just 38 filed in 2022 and 13 in 2021. A spokesman for British Gas and Centrica said: “We do not treat winding-up petitions lightly and only consider them in specific circumstances where there is clear liability, the debt is not in dispute and all other efforts to resolve the matter directly with the customer have been unsuccessful.”
Could Labour choose US trade deal over closer ties with EU?
Ambrose Evans-Pritchard suggests in the Telegraph that an incoming Labour government could find it easier to forge a trade pact with the US than the EU. Top Labour figures met with Republican leaders on a trip to Washington in May and reportedly got on marvellously with both sides enthusiastic for a US-UK trade deal. Controversial issues attached to a US trade deal would remain – chlorinated chickens and the NHS – but succeeding where the Tories failed would be a big post-Brexit prize. The EU on the other hand is low-growth and politically tricky given Sir Keir Starmer’s red lines on rejoining the single market and bringing back freedom of movement. “The gravitational pull is diminishing,” says Evans-Pritchard. “Labour may not say it yet, but early actions suggest that it is already shaking off the European spell. We may get Global Britain after all.”
UK perilously close to national bankruptcy
The Telegraph’s Matthew Lynn provides a grim forecast of the UK’s finances, declaring that Britain “is far closer to bankruptcy than our political elites are willing to admit.” He details the country’s massive national debt and a punishing tax burden, and that’s without the huge off-balance sheet debts. The UK is vulnerable to crises elsewhere and the Bank of England has little credibility left. A fall in confidence in the bond market will plunge the country straight into a cataclysmic financial crash, Lynn says before concluding: “It could only take a mild global downturn to tip us over the edge. And no one dares mention it. Of the many deceptions during the course of this election, this was the biggest one of all.”
Payment firms call for fraud levy on Big Tech
The Payments Association has urged the next government to impose a levy on technology companies to fund a compensation scheme for fraud victims. The industry body said the measure would make sure Big Tech pays its fair share for the high levels of authorised push payment (APP) fraud, 76% of which originates online and which cost Britons £460m last year. The call comes as financial firms urge the Payment Systems Regulator (PSR) to scale back its rules forcing them to refund victims of APP fraud up to a limit of £415,000. The Payments Association says this should be reduced to £30,000 arguing that would cover 95% of cases. “The PSR’s policy rules as presently constructed will serve to undermine competition, stifle innovation and reduce investment, and it will force smaller players to make a disorderly exit from the UK,” The Payments Association said.
Markets
Yesterday, London markets were firmly higher as polling stations opened for the general election. The main index was up 70 points in late trading, while the mid cap index was holding on to gains of around 40 points. The FTSE 100 closed up 0.86% yesterday at 8241.26 and the Euro Stoxx 50 closed up 0.44% at 4987.48. The US was closed for the 4th July.
This morning following Labour’s resounding victory, markets are jubilant. On currencies, the pound is currently worth $1.278 and €1.181. On Commodities, Oil (Brent) is at $87.35 & Gold is at $2365. With stock markets, the FTSE 100 is up 0.30% at 8266 and the Eurostoxx 50 is up 0.58% at 5016.
House Prices
UK House Price Growth quickened last month, but edged lower on a monthly basis, numbers from mortgage lender Halifax showed Friday. UK house price growth quickened to 1.6% in June on-year, from 1.5% in May. Prices edged 0.2% lower in June from May, having being flat a month earlier. The monthly rise in June was expected to be 0.2%, according to FXStreet-cited consensus. The average UK house price in June was £288,455, lower compared to £288,931 in May.
Slump in house-building slows construction growth
The UK construction sector grew further last month, but its recovery lost momentum due to a slump in housebuilding. The latest S&P Global construction purchasing managers’ index (PMI) scored 52.2 in June, down from 54.7 in May. Firms reported a slower rise in new orders, with some blaming uncertainty in the run-up to the General Election.. Growth across the sector was driven by commercial construction work, which increased markedly in June. However, housing saw a decline after output dropped back following its first rise for 19 months in May.
New car sales up, but private EV demand falls
New car registrations in the UK rose by 1.1% in June, marking a 6% increase in the first half of 2023. The Society of Motor Manufacturers and Traders reported that the half-year sales reached 1,006,763, the highest in five years. The growth in registrations was driven by the uptake of electric vehicles and fleet sector sales. However, private retail demand has fallen, leading to calls for the new government to introduce more incentives for electric vehicle purchases.
UK tax authority accused of ‘pattern of costly mistakes’ after latest bungle
HMRC’s litigation strategy has come under scrutiny again after the tax office had a case it was pursuing thrown out because its lawyers missed a deadline for submitting the paperwork by two hours.
Cinema chain plans closures
Cineworld is planning to close around 25 of its 100 sites in the UK as part of a major restructuring plan. The chain’s bosses also want to renegotiate rent agreements at a further 50 sites. If landlords play hardball, these sites will also be at risk of closure, sources said.
Latest Insolvencies
Petitions to wind up (Companies) – ASPECT HEALTHCARE LIMITED
Petitions to wind up (Companies) – LOGIK INTERIORS LTD
Petitions to wind up (Companies) – TRANSPORT SERVICES (CHESHIRE) LTD
Petitions to wind up (Companies) – FOYLE CONTRACTS LIMITED
Petitions to wind up (Companies) – SINAI INVESTMENTS LIMITED
Petitions to wind up (Companies) – CACTUS WORLDWIDE LIMITED
Petitions to wind up (Companies) – PULIA UK LIMITED
Petitions to wind up (Companies) – SALES FORWARD LIMITED
Petitions to wind up (Companies) – ROZA CONSULTING LIMITED
Petitions to wind up (Companies) – SOLID STATE INFLIGHT LIMITED
Petitions to wind up (Companies) – PENNINE WAY LIMITED
Petitions to wind up (Companies) – TKACHUK DRYLINING LIMITED
Petitions to wind up (Companies) – APPEALING CARE SERVICES LIMITED
Petitions to wind up (Companies) – M B BROAD (DEVELOPMENTS) LTD
Petitions to wind up (Companies) – CENTURY FRAMES LIMITED
Petitions to wind up (Companies) – DABANGG HOSPITALITY GROUP LTD
Petitions to wind up (Companies) – SITESEAL (SE) LIMITED
Petitions to wind up (Companies) – IDEAL RECRUIT LIMITED
Petitions to wind up (Companies) – BEASLEY-HARLING TRADING LIMITED
Petitions to wind up (Companies) – ONYX SERVICE SOLUTIONS LIMITED
Petitions to wind up (Companies) – JCOS CAPITAL LIMITED
Petitions to wind up (Companies) – I-TALENT WHOLESALE LIMITED
Petitions to wind up (Companies) – OUTSOURCED PAYROLL CONSULTANCY LTD
Petitions to wind up (Companies) – NEWPIN LIMITED
Petitions to wind up (Companies) – BLOCKTECH RECRUITMENT LIMITED
Petitions to wind up (Companies) – REDBOURN ELECTRICAL CONTRACTORS LIMITED
Petitions to wind up (Companies) – ADVANTAGE CONTRACTS & AGENCY LTD
Petitions to wind up (Companies) – BURDEROP BRIDGE LIMITED
Appointment of Administrator – OTO INTERNATIONAL LIMITED
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Appointment of Administrator – CYFERD LTD
Appointment of Administrator – ACHIEVA GROUP LIMITED
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Appointment of Liquidators – MOSH TECH SOLUTIONS LTD
Appointment of Liquidators – EMC (CHESHIRE) LIMITED
Appointment of Liquidators – LIFEBOND LIMITED
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Appointment of Liquidators – ELA EXPEDITIONS UK LIMITED
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Appointment of Liquidators – SALVADOR CONSULTING LTD
Appointment of Liquidators – PRESENTATION TECHNIQUES LIMITED
Appointment of Liquidators – WORTON ROCK LIMITED
Appointment of Liquidators – COTSWOLD CONSULTANTS LIMITED
Appointment of Liquidators – MANGAR INTERNATIONAL (HOLDINGS) LIMITED
Appointment of Liquidators – DEEKSHA CONSULTANCY LIMITED
Appointment of Liquidators – TOWNSEND HALL INVESTMENTS LIMITED
Appointment of Liquidators – H K SMITH LTD
Appointment of Liquidators – PAT LOWERY ASSOCIATES LIMITED
Appointment of Liquidators – DELIVERISTICS LTD
Appointment of Liquidators – WOODGREEN CONSTRUCTION LIMITED
Appointment of Liquidators – MUMBLES BAKERS LIMITED
Appointment of Liquidators – MTGM CONSULTING LIMITED
Appointment of Liquidators – ADVANCED MODULAR COMPUTERS LIMITED
Appointment of Liquidators – TOP GUN REALISATIONS 70 LIMITED
Appointment of Liquidators – PI SYSTEMS LIMITED
Appointment of Liquidators – REGENCY HOMES AND PROPERTIES LIMITED
Appointment of Liquidators – MOTET LIMITED
Winding up Order (Companies) – INNOVISION EVENTS LIMITED
Winding up Order (Companies) – APEX FUNDING SOLUTIONS LTD
Petitions to wind up (Companies) – STAR CATERING SUPPLIES LIMITED
Petitions to wind up (Companies) – FULLARD AND MILNE SOLUTIONS LTD
Petitions to wind up (Companies) – HI-FLOW PROPERTY SERVICES LIMITED
Petitions to wind up (Companies) – FINSBAY VENTURES LTD
Appointment of Liquidators – GRANT CONSTRUCTION SERVICES (FIFE) LIMITED
Appointment of Liquidators – WATERSIDE THEATRE COMPANY LIMITED
Winding up Order (Companies) – THE BANK JOB LTD
Appointment of Liquidators – ILANGI LIMITED
Appointment of Liquidators – FORTUNA MANAGEMENT LIMITED
Petitions to wind up (Companies) – FOUNDRY SUPPLIES UK LIMITED
Appointment of Administrator – ASTRADENT (5) LIMITED
Petitions to wind up (Companies) – RYE WAX LTD
Petitions to wind up (Companies) – TREFORYS GAS SOLUTIONS LTD
Petitions to wind up (Companies) – TURPIN CAPITAL LIMITED
Petitions to wind up (Companies) – SEER MEDICAL UK PTY LTD
Petitions to wind up (Companies) – RUN AFAN FOREST LTD
Appointment of Liquidators – QOMTER LIMITED
Appointment of Liquidators – ANDREW J WALLIS LIMITED
Appointment of Liquidators – J & A LLOYD INVESTMENTS LIMITED
Appointment of Liquidators – DMAW CONSULTING SERVICES LIMITED
Petitions to wind up (Companies) – RESIDENTIAL AIR SYSTEMS LTD
Appointment of Administrator – SEL SPV LIMITED
Appointment of Liquidators – SYCAMORE ENTERPRISES (NOTTINGHAM) LIMITED
Appointment of Liquidators – T.J.O. PROMOTIONS LIMITED
Appointment of Liquidators – BENEDICT HOLDINGS LIMITED
Appointment of Liquidators – TOTAL RAIL SOLUTIONS LIMITED
Appointment of Liquidators – NALSON HOUSING LIMITED
Appointment of Liquidators – LOUIS STONE OPTICAL LIMITED
Appointment of Liquidators – LINEA INTERIORS (STAFFORD) LIMITED
Appointment of Liquidators – TRENTHAM GARDENS LIMITED
Appointment of Liquidators – DRYSDALE MEDICAL LTD
Petitions to wind up (Companies) – PICTORUM CAPITIS LONDON LIMITED
Hostile tax regime prompts entrepreneur to leave UK
The Telegraph talks to Bassim Haidar, a Lebanese-Nigerian entrepreneur, who says he’s worth hundreds of millions of pounds and intends to leave Britain due to its high tax regime. “We pay tax on any money we generate in the UK. But we built businesses abroad which were protected under non-dom status. To pay tax on global assets is a no go,” he states. Mr Bassim has calculated that it would cost him between £10m and £12m a year to remain in Britain. “Taxes are very high in the UK currently – but removing non-dom makes it extremely punitive and uncompetitive compared to the US or the rest of Europe. The whole idea after Brexit was that the UK would be made more competitive, but I’ve seen this getting worse.”
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!
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Check our compensation calculator to see how much your business could be owed!
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