Business news 11 August 2022
James Salmon, Operations Director.
Wildcat strikes spread across Britain. Are you heading for a financial car crash? Ministers look to wring more tax from energy firms. Royal Mail. US Inflation. And more business news.
Wildcat strikes spread across Britain
Workers across the UK are staging unofficial walkouts as the cost of living crisis and pay disputes spur a wave of “wildcat” strikes that threatens to cause major economic disruption. Thousands of employees at factories around the country joined unofficial picket lines on Wednesday with more action expected in the coming days. Hundreds of contractors at chemicals giant INEOS’s Grangemouth complex in Scotland walked out in an unofficial action and similarly-sized walkouts were seen at refineries in North Lincolnshire and Milford Haven. Unofficial strike action led rail operator Avanti West Coast to suspended ticket sales and cut timetables on Monday while Aslef, the union for rail workers, is planning an official strike this Saturday. Looking ahead, exam staff, port workers and Royal Mail workers are all planning strikes over pay. The Telegraph’s Louis Ashworth says unofficial and official strikes threaten to worsen the economic malaise caused by surging inflation.
Are you heading for a financial car crash?
Some 25% of UK adults are unwilling to adjust their spending to adapt to higher living costs, according to a survey by Grant Thornton and Retail Economics, with the cohort described as “squeezed spenders”.
Ministers look to wring more tax from energy firms
The Chancellor, Nadhim Zahawi, and Business Secretary Kwasi Kwarteng, will meet gas and electricity bosses today as the Treasury considers toughening the 25% levy on the profits of North Sea oil and gas operators announced in May. They want the companies to submit a breakdown of their expected profits and payouts as well as their investment plans for the next three years, with the view to investing more of their profits in new green energy projects. A Treasury source told the Sun, which first reported news of the meeting: “If you look back at what these firms were projected to make and what they actually brought in, it was beyond their wildest expectations. We are looking at options to go further and faster on those profits.” The two Tory leadership candidates are at odds over windfall taxes, with Liz Truss arguing that further levies would harm investment while Rishi Sunak’s team says he would extend windfall taxes on energy companies to ease household bills.
Royal Mail
Royal Mail warned that it will be “materially loss making” if the four-day strike organised by the Communication Workers Union takes place. The London-based letter and parcel delivery company said the CWU has called for strike action on August 26 and August 31, as well as September 8 and September 9. The decision follows a recent ballot for strike action, which saw members vote by 98% on a 77% turnout to take action.
US Inflation
US Inflation is cooling much quicker than experts are betting in a sign the Federal Reserve’s series of steep rate hikes are quashing price pressures. CPI numbers came in softer than expected at a core inflation of 5.9% and headline 8.5% (down from 9.1%) helping calm inflationary expectations. However the US Federal Reserve is still expected to lift interest rates at the 21st September meeting. Overnight, DOW rose 1.63%. S&P 500 rose 2.13%. NASDAQ rose 2.89%
Germany shows UK logic of unfreezing tax thresholds
Germany is preparing to raise tax thresholds to provide €10bn (£8.5bn) of relief for families battling the rising cost of living. Finance minister Christian Lindner said the country will increase the base tax-free allowance and also bring up the level at which the country’s 42% top income tax rate kicks in to help counter soaring inflation. The move comes just a day after the Institute for Fiscal Studies warned former chancellor Rishi Sunak’s freeze on tax thresholds had led to a £30bn annual stealth tax on British families. Ben Zaranko, an IFS senior economist, said: “If seeking to help low-to-middle income households through the tax system, it would make far more sense to increase thresholds, rather than cut rates.”
Brexit Britain will increasingly attract American entrepreneurs
Nile Gardiner, the Director of the Margaret Thatcher Center for Freedom at The Heritage Foundation in Washington, DC, writes in the Telegraph on how there is a growing exodus of wealthy elites from big Democrat-run US states, particularly from California, with many executives now relocating to Brexit Britain. “As much as US elites like to hiss at Brexit, Global Britain, free of the shackles of the EU, is an increasingly attractive place to do business for Americans, especially in comparison to Left-wing California, frequently derided today as a socialist basket case by US conservatives.” Gardiner goes on to say that California should serve as a warning to the next UK Prime Minister – “as a nightmare to be avoided at all costs. Great Britain in the Brexit era must be a bastion of economic freedom, a world leader in low taxes and deregulation, and a highly attractive place to do business.” He concludes: “Thatcherism is the antithesis of the California model, and its proposed revival under Ms Truss is the perfect recipe for British success in the Brexit era.”
Record skills shortfall in UK finance
The UK’s finance industry is seeing its worst job vacancy rates on record. The sector had more than five vacancies unfilled for every 100 jobs between April and June 2022, the highest since records began in 2001, according to data compiled by the Office for National Statistics. The skills shortage has been caused by digitization in banking, investing and insurance and more firms requiring employees to have new skills, and is compounded by people leaving employment during the pandemic, Claire Tunley, CEO of the Financial Services Skills Commission (FSSC), said. The shortage of talent is causing employers to shift to a “reskilling approach,” and some firms have started training their staff in new areas such as machine learning and automation, Tunley said. “We can’t wait for schools to do this – it’s here and now.”
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 charge our members a fixed annual subscription irrespective of how high the debt value is!
It takes less than 17 minutes to see how you would benefit, do you have the time now?
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
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.