Business news 9 July 2024
Getting Britain building. Reeves sets the stage for autumn tax hikes. Poor weather dampens British retail sales. Warning of incomplete battle against inflation. Markets, 4 day week, consulting, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Getting Britain building
In her first major speech at the Treasury, Chancellor Rachel Reeves outlined a series of planning reforms designed to accelerate building and deliver on Labour’s promise to build 1.5m homes over this parliament. Reeves said Labour will reform the National Planning Policy Framework by the end of the month, which will include restoring mandatory local housing targets, end the ban on onshore wind in England and prioritise energy projects in the planning system.
The party will also provide 300 extra planning officers to support local councils, create a new task force to accelerate stalled housing sites, and review planning applications previously turned down that could help the economy. “This Labour government has been elected to get things done, to get Britain building again. We are going to get Britain building again, we are going to get Britain’s economy growing again.”
Reeves said the government is ripping up planning rules to build more homes and critical infrastructure including allowing building on ‘green belt’ land and is prepared for ‘short term pain’ to get Britain building. The Chancellor also confirmed the ban on new offshore wind farms in England had been scrapped.
Reeves sets the stage for autumn tax hikes
The Chancellor has said the Labour party had inherited the worst set of circumstances since the Second World War following “14 years of chaos and economic irresponsibility.” In a speech on Monday, Rachel Reeves said she had ordered a review of Tory spending ahead of an autumn Budget. Reeves said difficult choices would need to be made, prompting critics to assert Labour’s review was simply a pretext for tax rises. “This is exactly what we said they would do when we said they would up taxes,” one former Tory minister said, adding that all details of public spending were in the public domain already. Analysts at Citi have said they expect a package of tax increases in the autumn worth around £15bn while the IFS has warned that wealth taxes, such as inheritance tax and capital gains tax, are one of the few options left on the table for a Labour government.
Blair warns taxes may need to rise by over £50bn
Sir Tony Blair has warned that Sir Keir Starmer will have to put taxes up by more than £50bn unless he comes up with radical new ways to improve productivity, according to a report from the Tony Blair Institute. The report suggests that tax rises would be needed to meet increasing health costs caused by an ageing society, to plug the decreasing tax take from oil and gas, and to avoid austerity. Sir Tony calls for greater use of artificial intelligence to boost growth as Britain faces high taxes, heavy debt, and poor outcomes. The report also suggests that AI could enable up to a million public sector workers to be cut.
Poor weather dampens British retail sales
Cold, wet weather and the continued cost of living pressures have led to a decline in British retail sales. In June, total retail sales fell by 0.2%, compared to a growth of 4.9% in June 2023. The cooler weather during the first half of the month affected consumer spending, particularly in weather-sensitive categories such as clothing, footwear, DIY, and gardening. Non-food sales in the three months to June also fell by 2.9% year-on-year. However, there were some bright spots in the retail sector, with increased sales of televisions, laptops, computers, homewares, cooking accessories, and furniture. Food sales rose by 1.1% year-on-year, while supermarket spending fell by 2.6% in June. Restaurants experienced a decline in sales, while pubs, bars, and clubs reported modest growth. Overall, the impact of unseasonable weather on consumer spending was evident, but there were still positive trends in certain areas. A separate report from Barclays showed card spending slumped for the first time since February 2021 last month.
BoE policymaker warns of incomplete battle against inflation
A senior Bank of England policymaker, Jonathan Haskel, has warned that the battle against high inflation in Britain remains incomplete. Haskel stated that interest rates should be kept at elevated levels for longer than expected, pouring cold water on predictions for a rate cut in August. He believes that inflation is on track to return above the Government’s 2% target and wants to hold rates until there is more certainty that underlying inflationary pressures have subsided sustainably. Haskel also mentioned the tight jobs market and the continued impact of shocks on the economy as factors that will keep inflation above target for quite some time. Financial markets currently rate it a 60% chance that the Bank will cut interest rates on 1 August. Haskel, who will complete his term on the monetary policy committee at the end of August, has previously expressed caution over cutting rates.
Markets
Yesterday, the FTSE 100 closed down 0.13% yesterday at 8193.49 and the Euro Stoxx 50 closed down 0.19% at 4969.83. Overnight in the US the S&P 500 rose 0.1% to 5572.85 and the NASDAQ rose 0.28% to 18403.74. The S&P hit its 35th record high of the year as investors awated Jeromes Powell’s testimony to congress for signs of an interest rate cut.
This morning on currencies, the pound is currently worth $1.281 and €1.183. On Commodities, Oil (Brent) is at $85.2 & Gold is at $2365. With stock markets, the FTSE 100 is up 0.09% at 8201 and the Eurostoxx 50 is down 0.4% at 4951.35.
Thames
Thames Water says it has enough cash (£1.8 billion) until May next year as annual profits increase to £157 million but its debt pile increases to £15 billion. There has been speculation that Thames, which serves 16 million customers in London and the Thames Valley region, might have to be taken over by the government if it runs out of money.
Consulting a great British success story
The UK consulting sector has nearly doubled in size over the past five years, according to the Management Consultancies Association (MCA) annual report. The industry’s revenue surged from £10.56bn in 2018 to £20.4bn in 2023, making the UK the second-largest consulting market globally. The growth has been driven by projects from sectors such as energy and resources, transport, and financial services. The consulting workforce has also expanded significantly, increasing by 66% from 30,000 employees in 2018 to over 50,000 in 2023. However, there was a 3% reduction from the previous year due to workforce adjustments and a slowdown in attrition. The report highlights the growing international demand for UK consulting services, with 28% of fee income now coming from abroad. Diversity and inclusion have become focal points for the industry, with an increase in female leaders and LGBTQ+ representation. The report also notes a shift towards regional growth within the UK, with more new hires recruited outside London.
More councils set for four-day week under Labour
A Labour government could be more sympathetic to moving to a four-day week, according to the 4 Day Week Campaign, which could mean dozens more councils shift to the regime. Councils that have run trials have said the four-day week reduces staff turnover and speeds up planning decisions. Both Deputy PM Angela Rayner and Energy Secretary Ed Miliband have supported a shorter working week. Cllr Pete Marland, of the Local Government Association, said councils “should be free to pilot innovative solutions to address local challenges and deliver crucial services to their residents.”
Disabled people forgotten in WFH revolution
Working from home seemed like a game-changer for disabled people, writes Sir Robin Millar, Chairman of Scope, offering them the opportunity to work without the stress of commuting. However, the employment gap between disabled and non-disabled individuals has remained the same for over a decade. Many disabled people have not been offered the chance to work remotely, despite the majority feeling that it would benefit both them and their employers. The lack of flexible work options has contributed to the failure to close the employment gap, adds Sir Robin.
Ocado
Ocado announced an expansion to its partnership with Japanese retailer Aeon Next Co Ltd. The Hatfield-based online grocer and technology licensor entered into an exclusive partnership in 2019 to develop the online operations of Aeon’s grocery business using the Ocado Smart Platform.
Metro
Metro Bank has revived plans to offload its multibillion-dollar mortgage book after a deal with Barclays fell apart last December. According to a Sky News report, which did not mention who the potential buyers are, Metro’s mortgage book is worth at least £3 billion, but could be worth up to £4 billion.
Boeing
Boeing is in talks with America’s defence department over how the aerospace giant’s plan to plead guilty to fraud could affect its many government contracts. Boeing allegedly misled regulators over the cause of two 737 MAX crashes some five years ago.
Labour urged to consider road pricing
The Department for Transport’s head of future roads technology, Michael Dnes, has suggested that road pricing should be considered to address the £25bn shortfall in fuel duty caused by the growing number of electric cars on the road. Dnes proposed a controversial “per-mile” tax, stating that electric motorists should continue to pay their share. He acknowledged that this approach would be unpopular but suggested that it could be implemented for future buyers of electric cars only.
Tate brothers accused of tax evasion
A Westminster court heard on Monday how Andrew Tate and his brother Tristan had evaded tax on £21m of revenue from their online businesses, including Only Fans. Devon and Cornwall Police are bringing a civil claim against the brothers seeking around £2.8m in seven frozen bank accounts. Sarah Clarke KC for Devon and Cornwall Police said: “Andrew Tate and Tristan Tate are serial tax and VAT evaders. She explained how the Tate brothers paid no tax in any country between 2014 and 2022 and how Andrew had admitted to refusing to pay tax in England. The brothers had washed money through “a huge number of bank accounts” in the UK, Clarke explained, adding that an individual named “J” had also been involved in the money laundering. The court was told the Tate brothers are accused of tax evasion and money laundering in Britain and Romania. Both men are awaiting trial in Romania on separate criminal charges of human trafficking, rape and forming a criminal gang to sexually exploit women.
Fortress Capital labelled a Ponzi scheme
Insolvency specialists at Begbies Traynor have labelled Fortress Capital a Ponzi scheme and are seeking to bankrupt its directors, Ashley Reading and his daughter Cameron. The administrators aim to conduct a full investigation into their personal finances. Fortress Capital, an unregulated investment scheme, collapsed into administration last September, causing investors to lose the majority of their life savings. A Metropolitan police investigation is ongoing, and Begbies Traynor is working to recover backers’ losses, some of which are in the multi-millions.
France’s new radical left coalition wants 90% tax on rich
A new radical hard-left coalition in France is preparing for power and implementing a plan that includes a 90% tax rate on anyone earning over €400,000. The New Popular Front was formed from the Socialists, the Greens, the Communists and the radical left-wing France Unbowed party to stymie the rise of Marine Le Pen’s populist right-wing National Rally, which won the first round of the elections on June 30. Its leaders met on Monday in an attempt to agree upon who would be put forward for the post of prime minister. Jean-Luc Mélenchon, the leader of France Unbowed, is attempting to squeeze out coalition parties to push his radical agenda, which along with the 90% tax rate, would include a reduction in the retirement age from 64 to 60, a cap on prices for essential goods, a 14% increase in the minimum wage and spending commitments of at least €150bn over three years.
Canadian government implements DST on foreign tech companies
Canadian Prime Minister Justin Trudeau’s government has authorised the implementation of a digital-services tax on large foreign technology companies. The tax, which came into effect on June 28, will apply for calendar year 2024 and is a 3% levy on the digital services revenue a company makes from Canadian users above C$20m ($14.7m) in a calendar year. It will primarily impact major US firms, including Alphabet and Meta. The tax has been viewed as unfair by US lawmakers and government officials, who have threatened retaliation.
Pub and bar insolvencies up 30%
Pub and bar insolvencies climbed by 30% to 784 in the year ending 30 April 2024, up from 602 insolvencies in 2022/2023. Peter Kubik, partner at UHY Hacker Young, said: “With money tight for many households, current alcohol prices mean more people are choosing to drink at home instead of going out. The pub and bar industry has struggled for a long time but the past two years have been particularly difficult.”
Latest Insolvencies
Appointment of Liquidator
ELDON ROAD DEVELOPMENTS LIMITED
POPULAR BUILDERS MERCHANTS LTD
MOUNTAIN GROVE HOLLAND HOUSE LIMITED
PERCY WORKS LTD
MANICKYA MADHURI SARDAR LTD
ROHAIL LASHARI LIMITED
FRO III HASTINGS UK HOLDCO LIMITED
RETAIL PRO-FIT LTD
FACTORY FUTURES LIMITED
ARROWHEAD GROUP (N.W.) LTD
CROSSTALK LIMITED
CADENT GAS PENSION SERVICES LIMITED
WIGHTWICK DENTAL PRACTICE LIMITED
FACTORY HOLDINGS LIMITED
HOLSTOCK LIMITED
HENDERSON EUROTRUST PLC
J17 PHARMA CONSULTING LTD
APW PROJECT MANAGEMENT LIMITED
FRIARS 1921 LIMITED
DES KELLY MEDIA LIMITED
MOUNTAIN GROVE RED LION LIMITED
AFEB LIMITED
YODEL PROPERTIES LIMITED
BAWSEY PIGS LIMITED
G & J PRODUCTS LIMITED
CWFL LIMITED
EDAY CONSULTING LIMITED
MACQUARIE COMMODITIES (UK) LIMITED
MINCHENDEN BUSINESS CENTRE LIMITED
EVOLVE PIG HEALTH LTD
INDUSTRIOUS ETHOS LIMITED
MARTAN TRADING LIMITED
MALDEN HOUSE ESTATES LIMITED
MICHAELS DRINKSTOP LIMITED
HATTONS MODEL RAILWAYS LIMITED
JAVELIN VENTURES LIMITED
KMS (FIFE) LIMITED
REEDS SOLUTIONS LIMITED
PARKSIDE CARS LIMITED
KALIMERA IT LIMITED
BRADLEYS COUNTRYWIDE LIMITED
J & J BUILDINGS LIMITED
CHARTERWOOD HOMES LIMITED
JSAP CONSULTING LIMITED
SUPERB SAFETY SOLUTIONS LTD
E H GLOBAL CONSULTANCY LIMITED
HOWARD FIX-IT LTD
YEALM CONSULTING LIMITED
PLATWAY LIMITED
SOUTHSHORE CONSULTANCY LIMITED
CASTLESIDE ILS CONSULTANTS LIMITED
ARGUTA LIMITED
LOYALTY LIMITED
ALMAC ENGINEERING (AIR CONDITIONING) LIMITED
EQUIPCO LTD
KELVIN PROPERTIES (SHAWLANDS) LTD
Appointment of Administrator
CONKER BESPOKE FURNITURE LIMITED
BODDINGTONS PLASTICS LIMITED
THE NIGHTINGALE (UK) LTD
ONEX TRADING GROUP HOLDINGS LTD
DIRECT TO CUSTOMERS LTD
DIVIDO FINANCIAL SERVICES LIMITED
AVAIL TECHNOLOGIES LTD
INTELLIGENT PROTECTION MANAGEMENT GROUP LIMITED
VERVE PERSONNEL LIMITED
Winding Up Petitions
WELLKOM CORPORATE SERVICES LIMITED
ALEX CONSTRUCTION TECH LTD
THINK INVESTMENT PROPERTY LTD
THE DAPPER CLINIC LIMITED
A.C DUCTWORK SERVICES LTD
BIRCHFIELD SHEET METAL ENGINEERING COMPANY LIMITED
NORTHERN GAS SERVICES LTD
SILK CONTRACTS LIMITED
S C DUNCAN STEVENAGE LTD
WOODS CONSTRUCTION MANAGEMENT LIMITED
INNOTURE LIMITED
CORPORATE COMMUNICATION CENTRE LIMITED
BIG BINS SKIP HIRE LTD
CE UK GROUP LIMITED
LEEDS CITY APARTMENTS LIMITED
WATFORD DEVELOPMENTS LIMITED
BOXAPPETI LTD
3 FUTURES LTD
NEWTON ELECTRICAL CONTRACTORS (MIDLANDS) LTD
SCI CHECK LIMITED
SHERRY ENTERPRISES LTD
BEST WELL LTD
Winding Up Order Notices
STEVE MANN CARAVANS LIMITED
MAPA GROUP LIMITED
CHIEF RECYCLING SERVICES LTD
STEALTH ADVERTISING LIMITED
WHITCASTER LIMITED
WOLF DATA SYSTEMS LIMITED
DB COFFEES UK LTD
REDWILL CONSTRUCTION LIMITED
FELIX TRAVELS AND TOURS LIMITED
CONCOURSE DISPLAY MANAGEMENT LIMITED
VAPE VENDI LIMITED
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!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.