Business news 11 July 2024
Some of the business news that we thought would interest our members.
James Salmon, Operations Director.
Reeves urged to protect start-up tax breaks
Joanna Jensen, chairwoman of the Enterprise Investment Scheme Association, has urged Chancellor Rachel Reeves to ensure that generous tax breaks which encourage investors to back young companies are protected. The Enterprise Investment Scheme (EIS) provides income and capital gains tax reliefs to investors to encourage them to risk capital in early-stage businesses. Ms Jensen warns that the schemes are under threat as the EU must approve extension of their use beyond April 5, 2025, due to a sunset clause implemented when EIS came into use. She says ministers must “ensure that it is renewed, regardless of what the EU says.” Ms Jensen notes that the EIS and Seed Enterprise Investment Scheme have helped raise £32bn for 56,000 businesses. A spokesperson for the Treasury said discussions with the EU were at an “advanced stage,” adding: “We are a government of wealth creation and are committed to supporting start-ups to raise the capital they need to invest and grow our economy.”
London landlords struggle to sell office space
Analysis from CoStar shows that landlords have struggled to shift large London offices this year, with very few office buildings in the capital having sold for over £100m in the first half of the year. The report show that of those which have sold, none have been in the City. Property firms Great Portland Estates and Derwent have both put expensive buildings on the market only to see offers fall short of expectations or deals collapse. Experts say the upper end of the market has been hit by concerns over hybrid working and higher interest rates. Investors who purchased a large space ten years ago would likely have to sell at a loss today, according to analysts at MSCI.
BoE economist warns of persistence of inflation
Huw Pill, the Bank of England’s chief economist, says interest rate cuts are a case of “when-rather-than-if” but argued that “it is hard to dispute the case that inflation persistence in the UK continues to prove – well – persistent.” Mr Pill also warned that recent figures on services inflation and wage growth “continue to point to an uncomfortable strength in those underlying inflation dynamics.” However, he added that the latest data “also remains consistent with the view that these inflationary pressures have now been contained and may be starting to revert towards levels that are more consistent with the achievement of the inflation target.”
Executives increasingly hit by burnout
The Telegraph warns that increasing numbers of executive-class workers are experiencing burnout at a younger age, leading to a mental health crisis among top executives. Analysis from career transitioning firm Challenger Gray & Christmas shows that chief executive departures in the US hit record levels in Q1, while a Deloitte and Workplace Intelligence survey found that 75% of executives are seriously considering leaving their positions to seek better wellbeing support. It has been calculated that burnout costs the UK economy £28bn per year, primarily due to stress, fatigue, and poor mental health.
Over 15k firms pay Real Living Wage
Over 15,000 businesses in the UK have joined the Real Living Wage movement, which ensures staff earn £12 per hour across the UK and £13.13 in London. Since 2021, 7,500 employers have signed up, with nearly 1,500 joining in 2024 alone. Katherine Chapman, director of the Living Wage Foundation, said: “Our growing network of accredited employers is committed to always paying their staff a wage based on the cost of living. Since the Living Wage movement began over 20 years ago, over 460,000 workers have received pay rises and it over £3bn has been put back into the pockets of low paid workers.”
Chancellor targets non-doms to raise £2.6bn
Chancellor Rachel Reeves is targeting non-doms to raise an additional £2.6bn during the current parliament. The move involves taxing foreign income and closing a loophole that allows non-doms to avoid inheritance tax. However, finance industry experts warn that this could drive many wealthy foreigners and their families out of the country, potentially reducing the predicted tax revenue. Rachel de Souza of RSM warned: “The most concerning point is Labour’s proposals to end the inheritance tax exemption for trusts settled by non-doms with non-UK assets,” saying: “This one change will likely prove key in driving wealthy non-doms to leave the UK.” “The issue for UK plc is that many of those planning to go are exactly the people with the skills and abilities to grow businesses and the economy. In other words, exactly the sort of people that Rachel Reeves is keen to encourage,” Ms de Souza added. Figures from HMRC show that revenue from non-domiciled taxpayers reached £8.9bn in the tax year ending in 2023, with the number of non-dom taxpayers in the UK growing by 7%.
Wetherspoon boss calls for tax changes
Sir Tim Martin, boss of pub chain JD Wetherspoon, has called for tax changes to support the struggling hospitality sector. Warning that the last government “failed to implement tax equality between pubs and supermarkets, leading to pub closures and underinvestment,” Sir Tim said he hopes that Rachel Reeves, a Chancellor “with a Bank of England pedigree,” will rectify the inequality. Sir Tim has been critical of the 20% VAT levied on food sold in pubs but not in supermarkets, saying this unfairly benefits retailers.
FCA confirms shake-up of listing rules
London Stock Exchange chief executive Dame Julia Hoggett has welcomed the Financial Conduct Authority’s (FCA) reforms to listing rules, saying the shake-up “will ensure companies listed in the UK can benefit from a regime that better supports growth ambitions, increases investment opportunities for UK investors and supports the UK economy.” New rules coming into force on July 29 create a simplified regime that ends the distinction between standard and premium listings. Currently only companies with premium listings can join the FTSE 100 and FTSE 250. The FCA said loosening rules that govern the rights and information given to shareholders when companies float on the stock market would align the UK’s regime with international market standards, adding that the move represents the biggest set of reforms to listing rules in over 30 years. Chancellor Rachel Reeves said: “These rules represent a significant first step towards reinvigorating our capital markets, bringing the UK into line with international counterparts and ensuring we attract the most innovative companies to list here.” Mark Austin, a lawyer at Latham & Watkins, said the reform “removes the key friction points that had built up in recent years and creates a match fit regime that creates a level playing field with other jurisdictions.”
Staff choose working hours in new trial
Hundreds of workers will be given greater choice over their hours as part of a six-month pilot which will offer flexible start and finish times, a nine-day fortnight, and compressed hours. The official four-day week campaign group is hoping to target around 3,000 employees and 50 companies. The campaign’s director Joe Ryle said: “Hundreds of British companies and one local council have already shown a four-day week with no loss of pay can be a win-win for workers and employers.” The pilot follows on a trial in 2022 that saw 61 companies trial a four-day week. Of these, at least 54 have maintained the shorter week.
Pension schemes overpaying fund managers
British pension schemes are overpaying fund managers, potentially impacting retirees’ returns. A report by ClearGlass reveals that pension plans paid £1.5bn more than necessary in fees to fund managers and some pension vehicles paid up to 14 times more for the same product compared to alternatives. The report highlights the need for trustees to secure better deals for their clients. The research also shows that government pension schemes have inefficiently deployed taxpayers’ money. A spokesman for the Financial Conduct Authority said: “We’ve increased price transparency in asset management, for example through standardised fund costs disclosure to pension trustees, with the aim of boosting competition.” They added: “We’ve previously raised the issue of investment consultants being unregulated and, in 2017, referred competition concerns to the Competition and Markets Authority.”
Foreign investment increases
The UK saw 985 foreign direct investment projects last year, according to data from EY, with this a 6% increase on 2022. Greater London led the way with a 20% increase in projects, while Scotland recorded a 14% rise.
Body Shop could be saved from administration
A consortium led by British entrepreneur Mike Jatania is set to acquire cosmetics retailer The Body Shop out of administration. Charles Denton, previously chief executive of the beauty brands Molton Brown and Erno Laszlo, is also included in the bid. The partnership intends to keep all of The Body Shop’s UK stores. The chain, which still operates out of 100 stores and employs over 1,500 workers, was put up for auction after FRP Advisory revealed that a restructuring plan had been deemed unviable.
Travis Perkins
Travis Perkins announced the appointment of Pete Redfern – formerly CEO of Taylor Wimpey for 14 years – as its new chief executive officer, and Geoff Drabble as chair designate. The Northampton-based builders’ merchant has appointed Drabble with effect from October 1, and said he will officially take up the chair position as soon as his capacity allows.
Recent Insolvencies
Petitions to wind up (Companies) – SPROUT LAND HOLDINGS LIMITED
Petitions to wind up (Companies) – MEGA GADGETS LIMITED
Petitions to wind up (Companies) – CROWNTIME LTD
Appointment of Administrator – NUTSHELL SOFTWARE LIMITED
Appointment of Administrator – BLADON JETS (UK) LIMITED
Appointment of Administrator – FLUSH WASHROOMS LIMITED
Appointment of Administrator – AJA BOTANICALS LTD
Appointment of Liquidators – S L WITTEN & SONS LIMITED
Appointment of Liquidators – EURO-WORLD BEARINGS (BRADFORD) LIMITED
Appointment of Liquidators – MOLE ENTERPRISES LIMITED
Appointment of Liquidators – 2016 G1 LIMITED
Appointment of Liquidators – RISEFROM LIMITED
Appointment of Liquidators – FQ (VICTORIA STREET) LIMITED
Appointment of Liquidators – MANCHESTER GYNAECOLOGY LIMITED
Appointment of Liquidators – KYELINK LIMITED
Appointment of Liquidators – REZOLVE LIMITED
Appointment of Liquidators – TWIN ARCH CONSULTING LTD
Appointment of Liquidators – GC HOLDINGS LIMITED
Appointment of Liquidators – NOAVA HOLDINGS LIMITED
Appointment of Liquidators – GLOBAL SHARES TRUSTEE COMPANY LIMITED
Appointment of Liquidators – DOWLE VEHICLE ENHANCEMENT SPECIALISTS LIMITED
Appointment of Liquidators – DOWLE GROUP LIMITED
Appointment of Liquidators – BRADLEY DEVELOPMENTS LIMITED
Appointment of Liquidators – DOWSON 2021-1 PLC
Appointment of Liquidators – BESSLER HENDRIE SERVICES LIMITED
Appointment of Liquidators – OAKSURE SERVICES LTD
Appointment of Liquidators – KNIGHTSTAR SERVICES LIMITED
Appointment of Liquidators – ABERFORTH SPLIT LEVEL INCOME TRUST PLC
Appointment of Liquidators – PINTAT PROPERTIES LIMITED
Winding up Order (Companies) – CHEQUERS ASSETS LIMITED
Winding up Order (Companies) – ST ANNE’S GROUP (UK) LTD
Winding up Order (Companies) – POPADOM (CHATHAM) LTD
Winding up Order (Companies) – MERCY GLOBAL PROPERTIES SOLUTIONS LTD
Winding up Order (Companies) – UK EVENT MANAGEMENT LTD
Winding up Order (Companies) – ROOM RENTAL SPECIALISTS LTD
Appointment of Liquidators – CONSILIUM DATUM LIMITED
Appointment of Liquidators – STANTON CONSTRUCTION REIGATE LIMITED
Appointment of Liquidators – NS RODBOROUGH LIMITED
Appointment of Liquidators – TRUSTSHARE LIMITED
Appointment of Liquidators – BALL STREET LIMITED
Appointment of Liquidators – IDREAM PROPERTY UK LIMITED
Petitions to wind up (Companies) – HTJ CONTRACTORS LIMITED
Petitions to wind up (Companies) – BLACKHORSE DEVELOPMENTS 2019 LTD
Petitions to wind up (Companies) – ZM LAND AND CAPITAL LIMITED
Petitions to wind up (Companies) – GOLF CATCHER LIMITED
Petitions to wind up (Companies) – LONDON CAPITAL COMPUTER COLLEGE LIMITED
Petitions to wind up (Companies) – NEO ENERGY LTD
Petitions to wind up (Companies) – FUEL PROPERTIES (NORWICH) LIMITED
Petitions to wind up (Companies) – SCOTT’S BRICKLAYING CONTRACTORS (MIDLANDS) LIMITED
Appointment of Liquidators – CLIFF ADDISON DRAINAGE LIMITED
Appointment of Liquidators – CABURN UHV LIMITED
Appointment of Liquidators – THE OLD CROWN BOOKHAM LIMITED
Petitions to wind up (Companies) – MAIDSTONE BUILDERS MERCHANTS LTD
Appointment of Liquidators – FOCUS INNOVATION LIMITED
Appointment of Liquidators – G3AADO LIMITED
Appointment of Liquidators – PARTNERS FOR IMPROVEMENT IN ISLINGTON 2 LIMITED
Appointment of Liquidators – HCI PROPERTIES LIMITED
Appointment of Liquidators – LUXURY TRAVEL HOLDINGS LIMITED
Appointment of Liquidators – PRATL CONSULTING LIMITED
Appointment of Liquidators – R S REES LIMITED
Appointment of Liquidators – SIMPLY REGULATORY CONSULTING LTD
Appointment of Liquidators – CHASE DISTILLERY (HOLDINGS) LIMITED
Appointment of Liquidators – IMPACTWISE LTD
Petitions to wind up (Companies) – THE SKIN RENEW SERVICE LTD
Appointment of Liquidators – YODEL PROPERTIES LIMITED
Appointment of Liquidators – MACQUARIE COMMODITIES (UK) LIMITED
Appointment of Liquidators – POPULAR BUILDERS MERCHANTS LTD
Appointment of Liquidators – ELDON ROAD DEVELOPMENTS LIMITED
Winding up Order (Companies) – MAPA GROUP LIMITED
Petitions to wind up (Companies) – WELLKOM CORPORATE SERVICES LIMITED
Appointment of Administrator – CONKER BESPOKE FURNITURE LIMITED
Appointment of Liquidators – INDUSTRIOUS ETHOS LIMITED
Appointment of Liquidators – MARTAN TRADING LIMITED
Appointment of Liquidators – MALDEN HOUSE ESTATES LIMITED
Appointment of Liquidators – MICHAELS DRINKSTOP LIMITED
Petitions to wind up (Companies) – CORPORATE COMMUNICATION CENTRE LIMITED
Petitions to wind up (Companies) – BIG BINS SKIP HIRE LTD
Petitions to wind up (Companies) – CE UK GROUP LIMITED
Petitions to wind up (Companies) – BIRCHFIELD SHEET METAL ENGINEERING COMPANY LIMITED
Petitions to wind up (Companies) – A.C DUCTWORK SERVICES LTD
Petitions to wind up (Companies) – ALEX CONSTRUCTION TECH LTD
Petitions to wind up (Companies) – THINK INVESTMENT PROPERTY LTD
Petitions to wind up (Companies) – THE DAPPER CLINIC LIMITED
Petitions to wind up (Companies) – SILK CONTRACTS LIMITED
Petitions to wind up (Companies) – S C DUNCAN STEVENAGE LTD
Petitions to wind up (Companies) – NORTHERN GAS SERVICES LTD
Appointment of Liquidators – HOLSTOCK LIMITED
Appointment of Liquidators – HENDERSON EUROTRUST PLC
Appointment of Administrator – DIVIDO FINANCIAL SERVICES LIMITED
Appointment of Liquidators – APW PROJECT MANAGEMENT LIMITED
Appointment of Liquidators – J17 PHARMA CONSULTING LTD
Petitions to wind up (Companies) – WOODS CONSTRUCTION MANAGEMENT LIMITED
Appointment of Liquidators – WEST END TAVERN LTD
Appointment of Liquidators – JANE ATKIN ASSOCIATES LTD
Appointment of Liquidators – HOLT HOMES & PROPERTIES LIMITED
Appointment of Administrator – DJ ANDREW LTD
Winding up Order (Companies) – BRADLEY GROUP (U.K.) LIMITED
Petitions to wind up (Companies) – SCOTTISH UTILITY SERVICES LTD
Petitions to wind up (Companies) – AYE LOVE REAL FOOD LTD
Petitions to wind up (Companies) – IONA DIGITAL (SCOTLAND) 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 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.