Business news 9 November 2022
James Salmon, Operations Director.
Tackling late payments. Tens of thousands of people claim addresses used by fraudsters. Restaurant insolvencies. BoE blames inflation on early retirement. Tax rises, food inflation and more business news.
Tackling late payments
Small Business Britain, TSB and fintech Revenu have launch a campaign to help small businesses get paid on time and tackle the late payment culture. CPA commends any who join our campaign to this blight on small business.
Michelle Ovens CBE, founder of Small Business Britain said “Running a small business is challenging enough without worrying about getting paid.”
“The smallest of businesses often unnecessarily suffer the brunt of slow transactions. They not only deserve to get paid on time, but it is vital for their cashflow and can make all the difference to small firms facing a barrage of challenges from all angles right now. We want to give business owners some fire power to combat this issue. Late payments have been going on for far too long in the UK, and bigger businesses really need to step up and play their part too.”
The package of support includes a free three-part webinar series to help small businesses with techniques, tips and checklists to tackle the late payment problem.
We welcome them. Help for small business owners to improve payment times, communication and cashflow is much needed. We at CPA have been helping small businesses get paid promptly for over 100 years. Talk to us about how our tools and knowledge can help you with your late payments.
Tens of thousands of people claim addresses used by fraudsters
Nearly 50,000 people have had their addresses listed as an organisation’s main office without their permission over the past three years, Companies House has revealed. The disclosures came as MPs were warned that criminals can currently use other people’s personal information to register businesses with near impunity, because the corporate register does not verify the data submitted on applications.
Nick Van Benschoten, of UK Finance, told MPs: “We see quite a lot of the driver of fraud in information that’s been hacked, or people that have been scammed through online websites through spurious text messages. Companies House is definitely one of those enablers of fraud.”
Restaurant insolvencies.
The number of restaurants entering insolvency increased 46% in the last quarter according to the insolvency service.
Sacha Lord, who is night time economy adviser for Greater Manchester – one of three night-time advisers across the UK – has warned the data signals an impending collapse in the sector.
He said: “The data we have received today is just the tip of the iceberg, and shows a very worrying trend which we believe will only get worse over the months to come. An increase of nearly 50% in insolvencies in three months shows the sector in an extremely worrying state and it is now entering winter in freefall.”
Early retirement to blame for surging inflation – BoE
The Bank of England’s chief economist Huw Pill has warned that a surge in early retirement means more interest rate rises will be needed despite the threat of a severe recession.
Addressing a conference hosted by UBS on Tuesday, Mr Pill insisted the Bank’s interest rate increases are not to blame for the recession. Rather, the economic malaise is caused by a sharp drop in the size of the UK’s workforce, which is driving pay up and fuelling inflation.
However, he did concede that quantitative easing during the pandemic may have contributed to soaring price rises. Economists are now predicting a fall in GDP over the course of the next year will take years to reverse. Sanjay Raja, economist at Deutsche Bank, predicts GDP will fall by 0.5% over 2023 and will likely return to trend only after 2025.
Rishi Sunak mulls return of 50p tax rate for top earners
The Prime Minister is considering breaking a Tory party manifesto pledge by raising the top rate of income tax from 45p to 50p. An alternative Rishi Sunak is reportedly considering is to lower the £150,000 annual income threshold at which it kicks in.
UK food price rises reach 14-year high in October
Food price inflation now stands at 14.7%, according to data insights business Kantar, a record high since the firm began tracking prices in this way in 2008. Soaring energy prices and labour costs have pushed prices up.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Yet again, we have a new record high figure for grocery price inflation and it’s too early right now to call the top. Consumers face a £682 jump in their annual grocery bill if they continue to buy the same items and just over a quarter of all households now say they’re struggling financially, which is double the proportion we recorded last November.”
Separately, the Independent reports that farmers are warning that soaring prices of animal feed and nitrogen fertiliser, as well as a shortage of labour linked to Brexit, are likely to push up prices even more over the next year. Minette Batters, president of the National Farmers Union said the conditions for farmers were the worst in living memory.
Popularity of tracker deals rises
Brokers report that borrowers are moving to tracker mortgages at the highest rate in more than a decade. Borrowers are betting recent interest rate rises will reverse next year and they will be able to lock in a fixed rate lower than today’s prices. The average two-year tracker rate is 4.10%, compared with a typical two-year fixed rate of 6.42% – equal to a £273 monthly saving on a £200,000 mortgage
Jeremy Hunt set to scrap Truss plan for investment zones
The Chancellor Jeremy Hunt is to scrap plans for low-tax investment zones in next week’s Autumn Statement. Sources told the FT that levelling-up secretary Michael Gove had lobbied hard for the zones to be ditched in favour of a revamped urban regeneration policy
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 one will be particularly deadly for suppliers for some time to come.
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!
No face-to-face meeting required – 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.