Business news 7 August 2024
UK construction sector grows at fastest pace since 2022. Investment in UK fintech sector triples. .Raising CGT would put growth at risk. SMEs warned over minimum wage compliance. Markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
UK construction sector grows at fastest pace since 2022
The UK’s construction industry experienced its fastest growth in over two years, signalling a strong recovery. The sector saw a rebound in new housing projects, leading to a surge in activity. The purchasing managers’ index (PMI) score for the industry reached 55.3 in July, surpassing expectations and marking a fifth consecutive month of growth. Andrew Harker, economics director at S&P Global, stated that the growth in new orders and activity was the strongest since 2022. The report also highlighted growth in all three key parts of the sector – housing, commercial building, and civil engineering. The construction sector appears to be in the early stages of a strong recovery, according to Peter Arnold, EY UK’s chief economist. RSM’s Kelly Boorman agreed stating the Government’s focus on local housing targets has buoyed the industry. Paul Sloman from PwC described the survey’s findings as a signal of recovery, market confidence, and growth for the sector.
But separately a survey in Property Week showed that over half 53% of contractors were affected by insolvency in the last quarter, a rise of 77%. Showing that the industry still faces elevated challenges.
Investment in UK fintech sector triples in H1 2024
Investment in the UK’s fintech sector almost tripled in the first half of 2024, reaching $7.3bn (£5.7bn), according to data from KPMG. This surge in investment helped the UK retain its position as the centre of European fintech funding. However, the investment is still lower compared to the record highs seen in 2021. The UK experienced a drop in fintech investment in 2023, but this year has seen a quick turnaround with major deals such as the $4bn (£3.15bn) buyout of IRIS Software and funding rounds for Abound and Monzo. The UK outperformed the wider EMEA region in fintech funding, attracting more funding than the rest of EMEA combined. Despite the increase in investment, dealmaking volumes have decreased. Experts believe that with the new UK government and the drop in interest rates, there are hopes for a recovery in fintech investment in the latter part of the year and early 2025. However, the high cost of capital and geopolitical uncertainty continue to impact global investments, including the fintech market.
Raising CGT would put growth at risk
The National Institute of Economic and Social Research (NIESR) has urged the Chancellor not to increase capital gains tax arguing that it would lead to less private investment. Instead, Rachel Reeves should increase government investment to 5% of GDP, at an estimated cost of £50bn per year and levy an entirely new tax on land. This would not change behaviour and is hard to avoid, the think-tank claims. The NIESR also calls for the government to exclude capital investment from borrowing rules and foster closer relations with the EU to boost economic growth. The NIESR’s latest UK economic outlook suggests that annual GDP growth is on track to be no more than 1.3% in the coming years, far below the level of 2.5% that the Chancellor is targeting.
SMEs warned over minimum wage compliance
Small and medium-sized enterprises (SMEs) have been warned to take proactive steps to ensure compliance with the National Minimum Wage (NMW). HMRC plans to crack down on perceived non-compliance with the NMW and will target SMEs in regions including Belfast, Birmingham, Bradford, Cardiff, Cornwall, Cumbria, east Anglia, Glasgow, Liverpool, the north east, and Watford. Kyle Newton, head of national minimum wage at Azets UK, advises employers to understand the complexities of NMW compliance and have policies in place to govern and control each component. Enterprises found guilty of non-compliance may be instructed to pay NMW arrears, face an increase in National Insurance Contributions (NICs), and risk financial penalties. Azets UK estimates that over 50% of SMEs in the targeted regions could be affected by the enforcement activity, even if they are compliant.
Markets
Yesterday, markets moved mostly higher today as stocks prices attempted to recover from Monday’s sell-off. The FTSE 100 closed up 0.23% at 8026.69 and the Euro Stoxx 50 closed up 0.08% at 4575.22. Overnight in the US the S&P 500 rose 1.04% to 5240.03 and the NASDAQ rose 1.03% to 16366.86.
This morning on currencies, the pound is currently worth $1.2703 and €1.1633. On Commodities, Oil (Brent) is at $76.65 & Gold is at $2393. With stock markets, the FTSE 100 is up 0.67% at 8080 and the Eurostoxx 50 is up 1.14% at 4626.
in Asia, Bank of Japan deputy governor Shinichi Uchida said the central bank would not hike interest rates whilst markets remain unstable causing the Yen to weaken 2% against the US dollar. Financial companies were the biggest gainers with Mitsubishi UFJ Financial rising 9.67% and Mizuho Financial rising 8.9%. Asian equity markets closed in the black, with Hong Kong up 1.4%, Singapore ahead 1.5% and Seoul up 1.8%. Tokyo added 1.2%.
Britain’s IHT hot spots revealed
The UK Government is set to collect £7.5bn from inheritance tax (IHT) this year, marking a 25% increase in just three years. Families residing in London and the home counties are most likely to be affected by IHT, with the largest sums coming from wealth hotspots in the capital. The Chancellor, Rachel Reeves, is under pressure to find new ways to boost government income from IHT in her upcoming Budget. Wealthy individuals are seeking advice from lawyers and accountants to explore options for passing on their wealth before any changes to IHT come into effect. A report by law firm Kingsley Napley reveals that Chichester, Esher and Walton, and Finchley and Golders Green are among the areas with the highest number of estates paying IHT. Partner Sophie Voelcker said beyond the standard advice on reducing liabilities, clients are advised to “just spend!”
Novo Nordisk
Novo Nordisk has reported profit of £2.3bn and cut its full year profit outlook to growth of between 20%-28%. The Ozempic/ Wegovy provider also mentioned rising competitive pressures in the anti-obesity market.
Thames
Ofwat will appoint an independent monitor to Thames Water noting the company’s efforts to implement a turnaround plan.
GP’s work-to-rule action could cost £500m
Leaked NHS documents reveal strike action by GPs demanding more generous contracts could cost the health service half a billion pounds in just four months. A proposal from the British Medical Association to take industrial action was backed by 98% of family doctors. GPs can choose from a range of ten measures, including cutting appointments by a third. The Health Secretary Wes Streeting urged doctors to back away from taking action and instead form a “serious professional partnership” with the Government. The Mail’s Alex Brummer fears the Government’s decision to allocate nearly £10bn for public sector pay rises has opened Pandora’s Box with unions set to compete with each other for ever higher settlements.
Latest Insolvencies
Petitions to wind up (Companies) – 2GO COURIERS LIMITED
Petitions to wind up (Companies) – COMPLETE LOGISTICS GROUP LIMITED
Appointment of Administrator – DYMAG GROUP LIMITED
Appointment of Liquidators – CHALLENGE CONTRACTS LIMITED
Appointment of Liquidators – HOGSTER LIMITED
Appointment of Liquidators – BRICKLANE RESIDENTIAL REIT PLC
Appointment of Liquidators – CHILTERN DERMATOLOGY SERVICES LIMITED
Appointment of Liquidators – BRICKLANE REGIONAL ACQUISITIONS LIMITED
Appointment of Liquidators – MOLINEUX (DIDCOT) LIMITED
Appointment of Liquidators – SHORE BY DESIGN LTD
Appointment of Liquidators – NORD ANGLIA EDUCATION ADMINISTRATION LIMITED
Appointment of Liquidators – BRICKLANE REGIONAL HOLDINGS LIMITED
Appointment of Liquidators – SOUTHGATE VEHICLE RENTAL LIMITED
Appointment of Liquidators – UHUAB HOLDINGS LIMITED
Appointment of Liquidators – CUERDEN (HOLDINGS) LIMITED
Appointment of Liquidators – FEATHER ADVISORY LIMITED
Winding up Order (Companies) – LBR LEISURE LTD
Winding up Order (Companies) – GREENSHIELDS COWIE & CO LIMITED
Winding up Order (Companies) – CROWN AGENTS LIMITED
Petitions to wind up (Companies) – INDEPENDENT VAUXHALL CENTRE LIMITED
Petitions to wind up (Companies) – D.P.E. LIMITED
Appointment of Liquidators – MOBIUS CONSULTANTS LIMITED
Appointment of Liquidators – HDS TRADING LIMITED
Appointment of Liquidators – PAXCROFT PROPERTIES LIMITED
Appointment of Liquidators – ALFRED E. MUTTER LIMITED
Appointment of Liquidators – JART DESIGNS LIMITED
Appointment of Administrator – LC UK DEVELOPMENTS LTD
Petitions to wind up (Companies) – HATTON & BOND LTD
Petitions to wind up (Companies) – FIRE AND RESCUE SUPPORT SERVICE
Petitions to wind up (Companies) – MARC BURCA & COMPANY LIMITED
Petitions to wind up (Companies) – QUALITY GLASS (D.G.) LIMITED
Appointment of Liquidators – KESWICK ELECTRICAL LIMITED
Appointment of Liquidators – PENLEE (ALLITHWAITE) LIMITED
Appointment of Liquidators – OAKDENE HOMES NORTHAMPTON 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 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.
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.
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 turning to more debt, CPA suggests that business owners tackle the problem at its source. If late payments are a strain on your cash flow, then talk to CPA about how we can help you reduce those late payments.
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. CPA’s overdue account recovery service is a polite, efficient service designed to encourage prompter payments while maintaining goodwill. We direct your customers to pay directly to you, not to us and want to support and reinstate your direct relationship with your customer, not take it over, destroying goodwill.
Unlike other credit management companies, our overdue account recovery service is available to our members on a fixed annual subscription so you can pass any overdue accounts to this service and it is included in your subscription!
Our Overdue account recovery service resolves over 80% of accounts referred to us although our collections department is there to escalate the collections process on the remaining few if you require it.
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.