Business news 11 June 2024

National debt warning. More firms freezing or reducing recruitment. UK leads OECD nations on unemployment increase. Ministers urged to support business, markets, politics, tax,, insolvencies & more business news that we thought would interest our members.

James Salmon, Operations Director.

Goldman Sachs in national debt warning

Wall Street bank Goldman Sachs has warned that the next government could take longer than planned to push down debt, saying there is a “meaningful chance” that bringing public finances into line could happen “somewhat more gradually” than required to meet targets. While the Conservatives and Labour say they will maintain current rules which commit to getting debt as a percentage of GDP down within five years, economists say this will prove challenging given pledges to not hike income tax, National Insurance and VAT. Goldman Sachs economist James Moberly said the UK faces a “tight fiscal backdrop” heading into the election, warning that a “sizeable consolidation” of raising taxes or cutting spending would be needed to meet the debt target.

More firms freezing or reducing recruitment

Research by the Chartered Management Institute shows that more UK employers were drawing up plans to make roles redundant and impose hiring freezes in Q1 than in the same period last year. The poll of almost 1,000 managers found that 35% of organisations planned to either freeze (21%) or reduce (14%) recruitment in the following six months. In the first three months of 2023, the combined total was 24%. In the summer of 2022, the combined proportion was just 15%. When asked why they were looking to freeze or reduce recruitment, 60% of managers cited worsening revenues or rising costs. While 55% pointed to organisational restructuring to reduce costs; just over a third (34%) said it was due to increased economic uncertainty; 19% said higher staff pay; and 13% said the increased use of digital technology and automation.

UK leads OECD nations on unemployment increase

Analysis by the Trades Union Congress shows that unemployment in the UK is rising at the fastest pace among the world’s richest countries. Of the 38 Organisation for Economic Cooperation and Development member states, only Costa Rica saw a similar rise in the number of people losing their jobs in Q1.

Unemployment figures today show unemployment at 4.4%. Between February and April, employment fell by 139 thousand jobs to 32.97m, the biggest rise since 2021.

UK pay growth held at 5.9% however excluding bonuses the figure was 6%.

This data comes in following the National Living Wage increase of 9.8% in April, the second largest minimum pay wage increase since 1999.

Ministers urged to support business

Businesses have urged ministers to be more proactive in helping firms adjust to changes in the global economy. The Confederation of British Industry wants the next government to deliver a targeted subsidies programme to help firms adopt new technologies. Meanwhile, the British Chambers of Commerce (BCC) has called on ministers to appoint an AI champion to spearhead uptake of new technologies among SMEs. Alex Veitch, director of policy at the BCC, said solutions required “long-term buy-in from our politicians.”


Yesterday, the FTSE 100 closed up 0.20% yesterday at 8228.48 and the Euro Stoxx 50 closed down 0.69% at 5016.48. As weekend political developments brought new uncertainties with incumbent parties in France and Germany underperforming their poll forecasts at the European elections and France calling snap elections (French stocks fell 1.35%). Overnight in the US the S&P 500 rose 0.26% to 5360.79 and the Nasdaq rose 0.35% to 17192.53.

The pound is currently worth $1.2734 and €1.1842. Brent is at $81.59, Gold is at $2306. The FTSE 100 is down 0.56% at 8182 and the Eurostoxx 50 is down  0.44% at 4994.

More pensioners than working people paying income tax

A higher share of pensioners in the UK are now paying income tax compared to working people, according to analysis by the Institute for Fiscal Studies (IFS). The IFS found that 65% of older Britons now pay tax on their income, up from 48% since 2010. This increase is due to a cut in the tax-free allowance for pensioners and a rise in the state pension. In contrast, the share of working-age people paying income tax stands at 63%. Helen Miller, deputy director of the IFS, said: “Significantly higher income tax revenue has been achieved while working-age individuals on low and middle incomes have actually seen their income taxes cut. A long-running trend towards raising more income tax from those with the highest incomes has been continued.”

Lib Dems plan tax raid on Britain’s wealthiest

The Liberal Democrats have unveiled their manifesto, which includes a tax raid on Britain’s wealthiest to fund major reforms to the NHS, care, and other public services. The Lib Dems say they will reform capital gains tax to close loopholes “exploited by the super wealthy.” The highest rate of capital gains tax would increase from 24% to 45% under the party’s proposals. The party would also look to introduce a 4% tax on the share buyback schemes of FTSE-100 listed companies in a bid to incentivise productive investment, job creation and economic growth. Leader Ed Davey said the party will look at “making tax fairer.”

Brits work 19 extra days a year to pay taxes

Britons are having to work an extra 19 days a year just to pay taxes than before the pandemic, according to research by the Adam Smith Institute to mark today’s Tax Freedom Day – the day when the average taxpayer starts earning for themselves. The average taxpayer now works 161 days to pay taxes, 19 more than in 2019 and almost a month longer than in 2009. The institute predicts that by 2028, Tax Freedom Day will fall on June 22.

Activist investors target UK firms

British listed companies have drawn the most attention from global activist investors, according to research by Alvarez & Marsal, with the UK being the subject of 25 campaigns in the first five months of this year. Germany, the second most targeted market, saw 21 campaigns in the same period.

Listings set to pick up the pace in H2

Investment bank Peel Hunt expects London listings to rebound in the second half the year. Analysts from the bank highlighted “continued acceleration” in its ‘IPO Speedometer’ – a report which gives a score for the health of the UK IPO market between 0 and 60mph. While the score increased to 27mph in May from 24mph in April, the speedometer remains in “second gear,” which classifies the market as “selectively open.” Peel Hunt analysts expect an increasing number of UK IPOs by the second half of 2024, with “further confidence on a broader reopening” in the first half of 2025. The report notes: “What has so far been a European-led IPO recovery has started to spread to the UK.”

Creditors lose faith in Viola’s administration

The creditors of failed money transfer business Viola Money (Europe) have “lost faith in the ability” of Interpath’s insolvency practitioners to run the administration. The creditors committee has raised concerns over issues including the fees charged by Interpath and its lawyers, Osborne Clarke. The creditors’ committee also questions the administrators’ approach to recovering frozen funds and their lack of knowledge on key matters. Interpath maintains that it has made progress in recovering customer funds and stands by its actions.

Apple & OpenAI

Apple announced several AI products and services, including a plan to integrate OpenAI’s ChatGPT into its devices.  Tim Cook, Apple’s boss, also unveiled the tech titan’s own generative AI system, to be called “Apple Intelligence”. We see what you did there Apple! They are also going to integrate AI into Siri.

Elon Musk said he could ban Apple devices from his companies due to its deal to integrate ChatGPT into the iPhone, iPad and Apple Mac at operating system level due to the risk of security violation.

Raspberry Pi

The shares of the new IPO surged 30% at the open.


Heathrow carried a record 81.5 million passengers in the last 12 months ending May 2024 (up 14%) and expects more records to be broken into the summer.

Latest Insolvencies

Petitions to wind up (Companies) – BOOKERFY LIMITED
Petitions to wind up (Companies) – LINCOLN’S PROPERTY SERVICES LTD
Petitions to wind up (Companies) – CAMBRIDGE NEWTON CAPITAL LTD
Petitions to wind up (Companies) – HCEXECUTIVE LTD
Appointment of Administrator – TEVVA MOTORS LIMITED
Appointment of Administrator – FLIT TECHNOLOGIES LTD
Appointment of Administrator – RADICALLY DIGITAL LTD
Appointment of Liquidators – ACRE PARK (KEIGHLEY) LIMITED
Appointment of Liquidators – OLAF SERVICES LIMITED
Appointment of Liquidators – RESIDENT STUDIOS LIMITED
Appointment of Liquidators – RAVEN STAR LIMITED
Appointment of Liquidators – SOLENT OFFSHORE CONSULTANTS LTD
Appointment of Liquidators – C K ESTATES (NORTHERN) LIMITED
Appointment of Liquidators – COLEY WRIGHT LIMITED
Appointment of Liquidators – GENEEN INVESTMENTS (1979) LIMITED
Appointment of Liquidators – JH ROCKINGHAM LIMITED
Appointment of Liquidators – HILLCREST CONSULTANCY LIMITED
Appointment of Liquidators – MULTI-FLOW CONSULTING LTD
Appointment of Liquidators – R J M STICKER LTD
Appointment of Liquidators – PRODUCTIVE CHANGE LTD
Appointment of Liquidators – RENOIR MARINE 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 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 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.