Business news 8 October 2024

Tax rises could harm entrepreneurs. Business confidence slips. Employers hit brakes on hiring. Retail sales surge. Tax, house prices, EV’s, pubs, markets, insolvencies & more business news that we thought would interest our members.

James Salmon, Operations Director.

Tax rises could harm entrepreneurs

Tina McKenzie, policy chairwoman of the Federation of Small Businesses (FSB), has warned Chancellor Rachel Reeves against “damaging anti-enterprise tax rises” in the upcoming Budget. The FSB has expressed concerns over potential increases in capital gains tax, which could undermine incentives for entrepreneurs. In its Budget submission, the group urged the Chancellor to maintain the current relief allowing a 10% rate on gains up to £1m, saying that without this and other incentives “there is little reward to the risk” taken by small business owners. Additionally, the federation called for support to alleviate employment costs and to address lenders’ demands for personal guarantees from business owners.

Business confidence slips

Optimism among British firms has slipped, according to a poll by the British Chambers of Commerce (BCC), with concerns about potential tax hikes in the Budget among factors that are dampening sentiment. The BCC said 48% of 5,152 companies it surveyed between mid-August and the middle of September identified taxation as a main area of concern ahead of the Budget. This was up from 36% in the previous survey. BCC head of research David Bharier said: “Many businesses are increasingly anxious about the direction of economic policy, and taxation has now become their primary concern.” He added that the conflict in the Middle East “will also be a significant factor.” The BCC poll also saw 56% of businesses say they expect turnover to increase over the next 12 months. This is down from 58% in Q2. The majority of firms also said they do not expect profits to rise, while just over one in five said they have increased investment.

Employers hit brakes on hiring

Research indicates that recruitment has stalled in September, primarily due to ambiguous government policies ahead of the upcoming Budget. The KPMG and REC survey revealed a reading of 44.9, indicating a decline in permanent job placements, while BDO’s employment index reached its lowest point since January 2013. While KPMG’s UK chief executive Jon Holt said the slowdown was “to be expected as businesses apply the brakes on recruitment ahead of the Budget and wait for clarity on taxation, business and economic policy,” Kaley Crossthwaite from BDO emphasised that “businesses are looking for a clear roadmap.”

Retail sales surge

UK retail sales have experienced a notable recovery, rising by 2% over the five weeks leading to September 28, surpassing the 12-month average growth of 1.1%. According to the British Retail Consortium-KPMG Retail Sales Monitor, this growth was driven by heavy discounting and the back-to-school rush. While food sales increased by 3.1% year-on-year, non-food sales fell by 0.3%. Meanwhile, Barclays has reported a 1.2% year-on-year increase in consumer card spending, with non-essential spending reaching its highest growth this year at 2.7%. Karen Johnson, head of retail at Barclays, said: “Retail’s recovery emerged as a bright spot in September.” Despite this, spending on essentials saw a decline of 1.7%, indicating cautious consumer behaviour.

Reeves backs down on pension tax

Rachel Reeves has reportedly opted against increasing tax on pension contributions in the upcoming Budget, following warnings from public sector unions that such a move would adversely affect nearly 1m members. The Chancellor had considered reducing the 40% tax relief for higher earners, which could have generated £10bn annually. Other tax options remain on the table, including changes to capital gains tax and inheritance tax.

Millionaires exit UK amid tax fears

Research from the Adam Smith Institute think-tank indicates that millionaires are leaving the UK due to rising day-to-day taxation, stagnant inheritance tax thresholds, and potential increases in capital gains taxes. The report forecasts a loss of 9,500 ‘liquid millionaires’ in 2024, reducing the total to 593,000, significantly lower than the 708,500 recorded in 2007. This comes as polling from Cornerstone Tax and Yonder shows that 24% of taxpayers are considering moving abroad due to concerns over the upcoming Budget, with a third citing taxation changes as their primary reason for leaving.

Tax burden at highest level since 1990

Data compiled by the Organisation for Economic Co-operation and Development shows that British workers and businesses now face a higher tax burden than their German counterparts, with taxes on income, profits, and capital gains reaching 13.3% of the economy in 2022. This marks the highest level since records began in 1990, as the UK’s overall tax burden climbed to 35.3% of GDP.

House prices close to record high

Data from Halifax shows that the average UK house price hit £293,399 in September, with this marking the third consecutive month where prices have increased. Analysis shows that September’s average was close to the all-time high of £293,507 that was recorded in June 2022. While prices were up 0.3% on the previous month, year-on-year they increased by 4.7%. Amanda Bryden, head of mortgages at Halifax, said: “Mortgage affordability has been easing thanks to strong wage growth and falling interest rates.” She added: “This has boosted confidence among potential buyers, with the number of mortgages agreed up over 40% in the last year and now at their highest level since July 2022.” The Halifax report also shows the typical first-time buyer is paying £232,769 to get onto the property ladder.

Markets

Yesterday, the FTSE 100 closed up 0.28%  at 8303.62 and the Euro Stoxx 50 closed up 0.30% at 4969.71.

However, sentiment turned with rising oil and bond prices weighing on markets. Overnight in the US the S&P 500 fell 0.96% to 5695.94 and the NASDAQ fell 1.18% to 17923.91.

Anxiety increased into the Asian session as China’s pledge to support its economy disappointed investors hoping for new stimulus.

This morning on currencies, the pound is currently worth $1.309 and €1.191. On Commodities, Oil (Brent)  is at $79.05 & Gold is at $2636. On the stock markets, the FTSE 100 is currently down 1.3% at 8195 and the Eurostoxx 50 is down 1% at 4918.

Oil Prices extended gains on Monday, with Brent nearing $80 to build on last week’s steepest weekly jump since early 2023, driven by fears of a wider Middle East conflict and potential disruption to exports from the major oil-producing region.

Sterling drops versus euro and dollar

Sterling dropped versus the euro and the dollar yesterday, with this coming after the pound last week logged its biggest daily fall since April after Bank of England governor Andrew Bailey suggested that the central bank might move more aggressively to lower borrowing costs. Dean Turner, chief eurozone and UK economist at UBS Global Wealth Management, said: “Sterling may experience volatility against the US dollar given the uncertainty about the timing of rate cuts, but this is likely to be a short-term phenomenon,” adding: “Dollar weakness is likely to reassert itself in time as the US currency loses its yield advantage amid falling US interest rates.”

Centrica

Centrica is reportedly mulling a £1 billion investment in the Hinkley Point C nuclear power plant. Talks, though at an early stage, have been held with owner EDF over the potential injection in recent months, according to The Telegraph.

Electric Vehicles

Automakers are due to offer at least £2 billion in discounts on their EV’s this year and they will still fall short of the government mandated sales target of 22% with EV’s only accounting for 20.5% in September and 17.8% in total for the first 9 months of 2024.

More support needed for female-founded firms

EY has warned that the UK economy could miss out on a £7bn contribution from female-founded companies unless there is greater support for female entrepreneurs. The report identified 45 female-led ‘superscalers’ – firms with revenues of more than £50m – and shows that they contributed a combined £7bn to the UK economy in 2022 and employed more than 55,000 people. It also highlighted 240 female-founded and led UK businesses that could grow into superscalers with the right resources and backing. Lynn Rattigan, senior partner at EY Private, warned that “systemic barriers to growth are currently holding back too many potential superscalers.” The analysis shows that female-founded businesses in the UK receive 2p for every £1 of investment, compared to 14p for mixed-gender founding teams and 84p for male-only led ventures.

EOTs up by 27% in a year

The number of UK businesses transferring ownership to employees through Employee Ownership Trusts (EOTs) has significantly increased, with 542 new EOTs established last year, marking a 27% rise. Research by Lubbock Fine shows that the total number of EOTs has surged by 2,750% over the past five years, as entrepreneurs opt for the tax-efficient exit strategy. Business owners benefit from avoiding capital gains tax and inheritance tax liabilities, while EOTs can provide tax-free annual bonuses to employees.

Firms return to CBI fold

Several major corporations, including KPMG, have resumed their memberships with the Confederation of British Industry (CBI), signalling a potential recovery for the lobbying group following a scandal that nearly led to its collapse. The CBI faced a significant crisis due to allegations of sexual misconduct, prompting many firms to suspend their memberships.

Pubs on the brink of closure

Analysis by Price Bailey shows that a tenth of all UK pubs are at risk of closure, with one in five classified as technically insolvent. The study examined the credit risk scores and balance sheets of 37,961 pubs, finding that 7,445 have negative net assets, making them vulnerable to bankruptcy. Notably, 4,310 pubs are at maximum risk, an increase of 930 from the previous year, with 769 pubs entering insolvency last year.

TGI Fridays confirms rescue deal

Restaurant chain TGI Fridays has been snapped up by private equity firms Breal Capital and Calveton UK, the owners of restaurant group D&D London. While the rescue deal will save 2,389 jobs at 51 restaurants, administrators Teneo have confirmed that 35 branches have been closed with immediate effect. This will see more than 1,000 staff made redundant. The deal comes after TGI Fridays’ UK owner, Hostmore, fell into administration due to debt problems.

Latest Insolvencies

Appointment of Administrator – FINNSWORTH LIMITED
Appointment of Administrator – ORCHARD (STAMFORD) LIMITED
Appointment of Administrator – DONT BE SHY DIGITAL LTD
Appointment of Administrator – FOURPURE LIMITED
Appointment of Administrator – LYRA ELECTRONICS LIMITED
Appointment of Administrator – ADVANCED BACTERIAL SCIENCES LIMITED
Appointment of Liquidators – BROOKSON (5542) LIMITED
Appointment of Liquidators – A M HOOS CONSULTING LTD
Appointment of Liquidators – KCC INDUSTRIAL EQUIPMENT LIMITED
Appointment of Liquidators – GUNALT LIMITED
Appointment of Liquidators – LECO PROPERTIES LIMITED
Appointment of Liquidators – STEPHEN H NORRIS LIMITED
Appointment of Liquidators – W. & J. JARVIS LIMITED
Appointment of Liquidators – CLOONEEN PUBS LIMITED
Appointment of Liquidators – DUNLEY ESTATE LIMITED
Appointment of Liquidators – NL2011 LIMITED
Appointment of Liquidators – R J DEVELOPMENTS (IOW) LIMITED
Appointment of Liquidators – APLEY PROPERTIES LIMITED
Appointment of Liquidators – THE JARMAN MEDICAL PRACTICE LIMITED
Appointment of Liquidators – GULLIVER ENGINEERING LTD
Appointment of Liquidators – ENABLE CONSULTING GROUP LIMITED
Appointment of Liquidators – VINTERESSANT LIMITED
Appointment of Liquidators – BETMORE LTD
Appointment of Liquidators – BRANDIN LIMITED
Appointment of Liquidators – MATHISEN & ASSOCIATES LTD
Appointment of Liquidators – MILL LANE STORAGE LTD
Appointment of Liquidators – ADVANTAGE : HEALTH AT WORK LIMITED
Appointment of Liquidators – FERN HEALTH LTD
Appointment of Liquidators – BELOW THE BELT GROOMING LTD.
Appointment of Liquidators – KRISHNA INTERNATIONAL LLP
Appointment of Liquidators – BMC SQUARED LTD
Appointment of Liquidators – WILFIX INSTALLATIONS LIMITED
Appointment of Liquidators – LLOYDS (GRESHAM) LIMITED
Appointment of Liquidators – MARKETING METRIX LIMITED
Appointment of Liquidators – PREHENDO LTD
Petitions to wind up (Companies) – AMIN HALAL LIMITED
Appointment of Liquidators – MESSRS TEVIOTDALE LIMITED
Appointment of Liquidators – BRITMON LIMITED
Appointment of Liquidators – GT2 CONSULTING LIMITED
Appointment of Liquidators – UBERIOR INFRASTRUCTURE INVESTMENTS LIMITED
Appointment of Liquidators – H KAPOOR CONSULTANTS LIMITED
Appointment of Liquidators – X9 CONSULTING LTD
Appointment of Liquidators – RNR PROJECT TECHNICAL SERVICES LTD
Appointment of Liquidators – COUNTY NURSING LIMITED
Appointment of Liquidators – IAIN DENBY LIMITED
Appointment of Liquidators – BLUE FISH INVESTMENTS LTD
Appointment of Liquidators – BFIL HOLDINGS LTD
Appointment of Liquidators – JABAWOK INDUSTRIES LIMITED
Appointment of Liquidators – STYLEHOME LIMITED
Petitions to wind up (Companies) – M & R PROPERTY (WEST WALES) LIMITED
Petitions to wind up (Companies) – BERCS LIMITED
Petitions to wind up (Companies) – EMPIRE DEVELOPMENT HOLDINGS LIMITED
Appointment of Liquidators – FINISHING TOUCHES INTERNATIONAL LIMITED
Petitions to wind up (Companies) – PG CADOGAN LTD
Petitions to wind up (Companies) – PG CONSTRUCTION MANAGEMENT HOLDINGS LIMITED
Appointment of Liquidators – PHARMATICE LIMITED
Appointment of Liquidators – ALDSWORTH MANOR FARM LIMITED
Petitions to wind up (Companies) – R & B PROPERTY SERVICES NE LTD
Petitions to wind up (Companies) – DUNN AC LIMITED
Appointment of Liquidators – CLB LITTLEJOHN FRAZER HOLDINGS LIMITED
Appointment of Liquidators – BESTBASIC LIMITED
Appointment of Liquidators – PKF LITTLEJOHN FINANCIAL SERVICES LIMITED
Appointment of Liquidators – SHOP WEST ONE LIMITED
Appointment of Liquidators – MUSE MARKETING LIMITED
Appointment of Liquidators – AJD GLOBAL INVESTMENTS LTD
Appointment of Liquidators – UNIVAR SPECIALTY CONSUMABLES LIMITED
Appointment of Liquidators – PKF LITTLEJOHN ACCOUNTS LIMITED
Appointment of Liquidators – LONDON LANE (HOC) LTD
Appointment of Liquidators – BRIGHTON ROAD (443A) LIMITED
Appointment of Liquidators – SOFTLY SURMAN HOLDINGS LIMITED
Appointment of Liquidators – SYNCHRONOSS TECHNOLOGIES UK LIMITED
Appointment of Liquidators – IFOOH LIMITED
Appointment of Liquidators – ASHDELL PROPERTIES LIMITED
Appointment of Liquidators – LITTLEJOHN ADVISORS LLP
Appointment of Liquidators – TELARUS GROUP UK LIMITED
Appointment of Liquidators – AXEL SPRINGER INTERNATIONAL LIMITED
Appointment of Liquidators – MERRYWADE PROPERTIES LIMITED
Appointment of Liquidators – LANDSTAR GROUP 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:

  1. 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.
  2. Our monitoring service will alert you to any significant changes in the status of those customers.
  3. 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.