Business news 12 January 2022

James Salmon, Operations Director.

Resolve late payments to help SMEs. World Bank warns of ‘pronounced slowdown’ in global growth. Highly-skilled professionals leverage soaring demand. Hospitality bosses call for WFH guidance to end.  And more business news.

Resolve late payments to help SMEs
An opinion piece in City AM calls for the Government to create real solutions for the liquidity problems facing SMEs, which have been hit the hardest by Plan B Covid restrictions. One solution would be to release funds locked in the £23.4bn in late invoices owed in the UK, a move that would support small businesses’ cash flow and improve their ability to manage the ongoing disruption at no cost to the taxpayer. “Clearly getting invoices paid on time must form a central role in the country’s economic recovery if we are to truly ‘build back better’”, says Paul Christensen.

World Bank warns of ‘pronounced slowdown’ in global growth
The World Bank is predicting a “grim outlook” for the world economy with the organisation forecasting that global growth will slow to 4.1% this year from 5.5% in 2021. World Bank president David Malpass said: “The world economy is simultaneously facing COVID-19, inflation, and policy uncertainty, with government spending and monetary policies in uncharted territory.” Separate figures from the Organisation for Economic Cooperation and Development (OECD) showed inflation across its 38 member countries at 5.8% in November, up from 5.2% in October, and the highest rate since May 1996.

Highly-skilled professionals leverage soaring demand

UK job vacancies have hit record levels since the economy reopened as employers scramble to meet demand. This had put firms in a “fierce competition for talent” said professional recruitment firm Robert Walters, with some companies offering 50% increases in salary to secure talent. Alan Bannatyne, chief financial officer at Robert Walters, said 15% is the minimum pay rise the firm was seeing.

Graduate lawyers are among the winners, being offered £150,000 starting salaries before bonuses amid a shortage of workers, but staff in other sectors such as bricks-and-mortar retailers or airlines were not doing as well. City banks have also boosted starter salaries to retain talent and the firm predicts the bonus pool this year will be “huge”. Robert Walters, which has offices in Asia, Europe and the US, said it had seen its best December ever, with net fee income up 39% globally.

Hospitality bosses call for WFH guidance to end

Hospitality bosses are calling for work form home guidance to be scrapped when Plan B Covid restrictions come up for review on January 26th. Legal requirements for masks and Covid passports in certain venues should also be terminated in order to restore consumer confidence. UK Hospitality chief Kate Nicholls said hospitality businesses in city centres are seeing sales around 50% lower than would be expected, with the drop off in London a crippling 80%. The Mail reports that businesses such as KPMG, Goldman Sachs, HSBC and JP Morgan have indicated a willingness to bring more employees back into the office if the Government’s policy on working from home changes

Jamie’s unsecured creditors to lose 90% of cash owed

KPMG’s latest progress report on the administration of Jamie Oliver’s restaurant chain estimates that less than £600,000 will be recovered from the business to return to unsecured trade creditors, such as councils and small businesses. Jamie’s Italian owed these creditors £6.86m. The documents show that Jamie’s Italian had total debts of more than £80m when it closed down, with the majority owed to banks and Jamie Oliver’s holding company. However, at least £1.5m of the debts owed to the holding company, which is majority-owned by the celebrity chef, will be returned because it is classed as a secured creditor.

Rishi Sunak could cut VAT on energy bills
As the Government comes under increasing pressure to impose a windfall tax on North Sea oil and gas producers, Boris Johnson and the Chancellor are reportedly in talks to cut or scrap VAT on energy bills to ease the pressure on hard-pressed families. Meanwhile, industry body Oil and Gas UK said that the Treasury was already getting a tax revenue boost from the rising costs of energy. Jenny Stanning, OGUK’s external relations director, said: “Our industry pays up to 40% corporation tax on its profits – roughly double any other sector. That means that the UK Treasury is already gaining significantly from these price rises.”

HMRC reminds businesses to declare COVID-19 grants on tax returns
HMRC is urging tax agents and accountants to remind their clients that COVID-19 support grants or payments are taxable and should be declared on their company tax returns. The deadline for customers or agents filing company tax returns (CT600) is 12 months after the end of the accounting period it covers. The deadline to pay Corporation Tax will depend on any taxable profits and when the end of the accounting period occurs. If companies received taxable COVID-19 support grants or payments they should make sure it is recorded as income when calculating taxable profits.


Sainsbury’s upgraded its annual profit guidance despite its sales slipping in the third quarter. Sainsbury’s said it now expected to report an underlying pre-tax profit for the year through March of at least £720 million.

JD Sports

JD Sports Fashion expects annual profit to top market expectations after reporting a rise in sales over the key Christmas period, driven by ongoing consumer demand.’We are now confident that the group headline profit before tax for the full year to 29 January 2022 will be ahead of current market expectations, which average £810 million,’ the company said.

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 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

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.