Business news 11 December 2024
Insolvency wave looms for UK firms. Chancellor refuses to rule out tax rises next year. UK job vacancies plummet 23%. Overqualified workers in England soar. Markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Insolvency wave looms for UK firms
Insolvency specialist Begbies Traynor has warned of an impending rise in company struggles following the Chancellor’s Budget. The firm noted that insolvencies in the UK are currently at “elevated levels,” with notable collapses such as Typhoo Tea. Begbies Traynor said: “We anticipate continuing growth in business recovery, our largest service line, as businesses face continuing demand pressures and cost challenges.” Displaying the high level of insolvencies in the last year, Begbies Traynor reported strong first half results which showed continued revenue and profit growth due to supportive market conditions. The Manchester-based firm said revenue in the six months to the end of October increased by 16% to £76.3 million from £65.9 million year-on-year. Pretax profit also grew by 57% to £4.7 million from £3.0 million in the prior year.
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CPA offers a monitoring service that notifies you of any changes in your customers status. Our Credit reports identify those who are at risk and helps you set appropriate credit policies for them.
Not a member yet? Just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today to see how membership could help you.
Chancellor refuses to rule out tax rises next year
Rachel Reeves has indicated that future tax increases cannot be ruled out, saying: “I can’t write five years’ worth of budgets in just the first five months of government.” Following the Chancellor’s first Budget, which raised taxes by £40bn, she described it as a “once-in-a-Parliament” fiscal event aimed at addressing the previous administration’s mismanagement. Despite her assurances, uncertainty remains as Sir Keir Starmer acknowledged that unforeseen circumstances could necessitate changes in tax policy. Her comments came as the Government launched a new spending review aiming at ensuring taxpayer money is used efficiently, with departments urged to identify 5% savings.
UK job vacancies plummet 23%
Recent data indicates that British job vacancies have decreased significantly, with a 23% drop in postings on Indeed compared to last year. This decline is sharper than the 14% reduction reported in official statistics from August to October. While France experienced a 22% decrease, other nations like the US and Germany saw declines between 5% and 15%. Jack Kennedy, an economist at Indeed, commented: “The balance of power has certainly swung towards employers as the labour market has softened.” The situation has worsened following Rachel Reeves’ announcement of a £25bn increase in employer national insurance contributions, leading to a cautious hiring approach among businesses. The Recruitment and Employment Confederation reported a collapse in demand for workers last month, highlighting a deteriorating jobs market.
Overqualified workers in England soar
The OECD’s Survey of Adult Skills reveals that 37% of workers in England are overqualified for their roles, significantly higher than the OECD average of 23%. The report highlights that overqualified workers earn about 18% less than their peers in suitable positions. Andreas Schleicher, OECD director for education and skills, said: “There are clear signs that the rise in numbers of people going to tertiary education… has been matched by a decline in the skill levels of that group.” The study also found that around 20% of adults in England scored at or below Level 1 in literacy and numeracy, indicating persistent low basic skills.
Post-pandemic WFH costs £100m in tax reliefs
Since the end of pandemic lockdowns, the public purse has lost £100m due to tax breaks for home workers, with an estimated 300,000 claimants in 2023/24, a significant increase from just 16,000 in 2018/19. The relief allows employees to claim for additional household costs incurred while working from home, such as energy bills. Critics argue that the trend of working from home is impacting productivity and should be reassessed to better support taxpayers. John O’Connell, chief executive of the TaxPayers’ Alliance, said: “The work from home trend does not seem to have had the benefits to the economy that many predicted, suggesting that this is not an ideally targeted tax relief.”
Strike action looms for HMRC workers
HM Revenue and Customs (HMRC) workers at Benton Park View in Newcastle have voted for eight weeks of strike action, starting from 23 December to 14 February, in response to the dismissal of three union representatives. Fran Heathcote, PCS general secretary, stated that the ballot results “show our members are prepared to stand alongside Gordon Askew, Rachel Farmer and Joel Hamilton in their fight for their jobs.” The union claims the representatives were dismissed for advocating for “fair pay, pensions and jobs.” Despite the strike coinciding with the tax return deadline, HMRC assured that those participating in the strike do not work on the self-assessment helpline and have “robust plans in place” to maintain services.
Markets
Yesterday, the FTSE 100 was negative dropping to 8300, closing down 0.62X% at 8300.43 and the Euro Stoxx 50 closed down 0.29% at 4950.97. Overnight in the US the S&P 500 fell 0.3% to 6034.91 and the NASDAQ fell 0.25% to 19687.24
This morning on currencies, the pound is currently worth $1.273 and €1.1213. On Commodities, Oil (Brent) is at $72.8 & Gold is at $2695. On the stock markets, the FTSE 100 is currently up 0.1% at 8289 and the Eurostoxx 50 is flat at 4950.
And for coffee drinkers, the sad news that Coffee wholesale prices have hit and all time record after rising almost 80% in the year as they peaked at $348 per pound before coming down to $323. Brazil and Vietnam, the world’s biggest producers, have suffered from disruption due to bad weather, which has compounded supply issues created by rising demand.
London has slipped below Oman to 20th in the IPO listings ratings. A few years ago we would regularly be in the top five. in 2024 we haven’t even have any listings among the top 100 globally. And while new companies have completely dried up, others are running away like Arm and Ashtead and the 45 others who have left after being bought by overseas bargain hunters. UK equity funds have faced 41 straight months of outflows.
Quantum Google
Google has unveiled a new chip that it says marks a major breakthrough in the field of quantum computing, an area seen as the next frontier for many tech companies. However, while Google’s achievements have been noted for advancing the field, experts say that quantum computing still has no real-world uses (yet).
Labour have ‘schizophrenic’ approach to tax
Willie Walsh, chief executive of the International Air Transport Association has expressed concerns over the impact of recent tax increases on the UK aviation industry. He described the government’s approach as “schizophrenic,” stating that while there is vocal support for aviation, actions such as the rise in air passenger duty (APD) and increased business rates are damaging. Walsh said: “The words have been encouraging, the actions not so encouraging,” highlighting the contradiction between government rhetoric and policy. He warned that these measures could limit the industry’s growth potential, especially as the UK seeks to enhance its global trade relationships post-Brexit.
Tax hikes threaten Britain’s tech future
Tej Kohli, a billionaire tech investor, warns in a piece for City AM that Sir Keir Starmer’s tax hikes are undermining Britain’s entrepreneurial spirit at a critical time for global technological advancement. Kohli says: “Taxing our way to prosperity has never worked,” pointing to the need for a more welcoming investment environment. He criticises the recent Budget, particularly the scrapping of non-dom status, which he believes deters wealth creators and innovators. Kohli advocates for streamlined visa processes, targeted tax breaks, and enhanced partnerships between universities and businesses to foster innovation.
Adidas HQ raided in Germany tax probe
Adidas AG’s headquarters in Germany was raided as part of a lengthy tax investigation, according to a company spokesperson. The inquiry, which spans from October 2019 to August 2024, focuses on compliance with customs and tax regulations concerning product imports into Germany. Adidas has been in contact with customs authorities for several years and is actively providing necessary documents.
Latest Insolvencies
Petitions to wind up (Companies) – BESTCON LTD
Petitions to wind up (Companies) – SURESTART IT SERVICES LIMITED
Petitions to wind up (Companies) – HEALTHCARE SOLUTIONS SERVICES LTD
Appointment of Administrator – KERACO CONSTRUCTION LTD
Appointment of Administrator – GREATER MANCHESTER CENTRE FOR VOLUNTARY ORGANISATION
Appointment of Administrator – EMERDATA LIMITED
Appointment of Administrator – ELEV8 ACCESS PLATFORMS LIMITED
Appointment of Liquidators – WEST EIGHT INVESTMENTS LIMITED
Appointment of Liquidators – ASPERATUS CAPITAL LLP
Appointment of Liquidators – ASPERATUS CAPITAL SERVICES LIMITED
Appointment of Liquidators – LE MANS CAPITAL LIMITED
Appointment of Liquidators – IVOLUTION SOFTWARE LIMITED
Appointment of Liquidators – EUROFINS CLINICAL TESTING HOLDING UK LIMITED
Appointment of Liquidators – MANASA DERMATOLOGY LTD
Appointment of Liquidators – ASSERTIO CONSULTING LIMITED
Appointment of Liquidators – HARROW INDEPENDENT SOLUTIONS LIMITED
Appointment of Liquidators – RAY MAIN CREATIVE LTD
Appointment of Liquidators – FALCONDALE COUNTRY HOUSE ESTATE LTD
Petitions to wind up (Companies) – M.C HOUSING SUPPORT LTD
Winding up Order (Companies) – SIMPLE SOLUTION DEVELOPMENTS LTD
Winding up Order (Companies) – DELTA MART LIMITED
Petitions to wind up (Companies) – E6 PERI PERI CHICKEN LTD
Petitions to wind up (Companies) – UPCOTT FARM (DEVON) LTD
Petitions to wind up (Companies) – RAW CBD LTD
Petitions to wind up (Companies) – WHITE SKY ENTERTAINMENT LIMITED
Petitions to wind up (Companies) – EDINBURGH GAME HUB LTD
Petitions to wind up (Companies) – MACHILLS LIMITED
Appointment of Liquidators – POUNDPALM LIMITED
Appointment of Liquidators – SOUTH WALES LEISURE AMUSEMENTS LIMITED
Appointment of Liquidators – J G L LAW LIMITED
Appointment of Administrator – TOUCHPOINT LIVE MEDIA LIMITED
Appointment of Liquidators – VENTURE BLOCK MANAGEMENT LIMITED
Why you should become a member of CPA!
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid, since 1914. We have supported our members through all sorts of difficult trading environments. With high interest rates and a struggling economy and elevated insolvencies, our services can help your business navigate these difficult waters.
Unlike other credit management and debt collection companies, we offer a range of services to our members that are all included as part of a fixed annual subscription, tailored to your needs.
Under your annual subscription you will have access to our main services:
- Our Creditcare credit reports provide credit ratings and limits along with a host of detailed information on your potential customers to enable you to trade with confidence and set appropriate credit policies for new customers.
- Our monitoring service will alert you to any significant changes in the status of those customers.
- Our Overdue account recovery service can be used to chase up payment on any invoices to those customers that have not been paid on time. Unlike other debt collection companies, this service directs your customer to pay direct to you and allows you to maintain your goodwill with them, rather than inserting ourselves into your relationship with you customer and insisting they pay CPA instead. Our Overdue account recovery service resolves over 80% of accounts referred to us.
All of the above services and other complimentary services such address verification, are included in your subscription!
And for the small minority of debts not resolved through our Overdue account recovery service, you can refer the debt to our collections department to escalate the late payment collections process.
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 and be warned of any potential risks. CPA has been improving business cash flow for over 100 years, by tackling late payers and campaigning against the late payment culture in the UK.
Unlike other credit management companies, we offer our members a fixed annual subscription regardless of how high the value of their debts maybe!
Rather than to borrowing more money to improve your cashflow, CPA suggests that business owners tackle the problem at its source. If late payments are a strain on your cashflow, then talk to CPA about how we can help you reduce those late payments.
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’s collection department 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.