Business news 12 July 2024
Some of the business news that we thought would interest our members.
James Salmon, Operations Director.
Economy expands by 0.4% in May
Data from the Office for National Statistics (ONS) shows that the UK economy grew faster than expected in May, expanding by 0.4% after seeing zero growth in April. This came as the services sector, which covers businesses such as shops, bars and restaurants, grew by 0.3%, while the construction sector jumped by 1.9%. In the three months to May 2024, the economy grew by 0.9% compared with the previous three months. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “This snapshot of an economy growing a bit faster than forecast, could make Bank of England policymakers that bit more reticent about voting for an interest rate cut.” Suren Thiru, economics director at the ICAEW, said the figures “may make an August rate cut less likely,” with Debapratim De, director of economic research at Deloitte, saying the Bank of England will be in “no hurry” to cut rates. Yael Selfin, chief economist at KPMG UK, commented: “The near-term outlook for the UK economy has continued to improve.”
Labour will make work pay
Work and Pensions Secretary Liz Kendall has warned that economic inactivity is “holding Britain back,” saying it is “bad for people, it’s bad for businesses, and it’s bad for growth.” Saying that rising levels of worklessness are “unacceptable” and require “immediate action”, Ms Kendall vowed that ministers will “create more good jobs, make work pay, transform skills, and overhaul jobcentres.” There will also be action to tackle the “root causes of worklessness,” including poor physical and mental health,” she added. Proposals include merging the National Careers Service and the Jobcentre Plus in an effort to get more people into work and support people to find better paid jobs. Business groups welcomed the Government’s vow to get people back into work, with Alexandra Hall-Chen, principal policy advisor for skills and employment at the Institute of Directors, saying: “Without action to increase domestic labour supply, strong economic growth will be all but impossible.” Matthew Percival, future of work and skills director at the Confederation of British Industry, said: “Not only will tackling inactivity help firms to access the skills they need to grow and invest, but it will also ensure that more people can experience the financial benefits and security of work.” The Recruitment and Employment Federation said the new government’s “early start” on reducing joblessness is “vital.”
Lenders expect mortgage defaults to rise further
Lenders expect default rates on home loans to climb in the coming months, according to a Bank of England survey. Mortgage default rates rose Q2 and banks and building societies believe the rate will increase further in the next three months. Karim Haji, global and UK head of financial services at KPMG, said: “As more and more households’ mortgages come up for renewal, it follows that with significant jumps in monthly repayments the number of defaults could rise.” The Bank’s latest credit conditions survey also found that mortgage availability is expected to increase slightly in Q3. While lenders reported a slight increase in default rates on credit cards in Q2, they expect the rate to remain unchanged in the months ahead.
PM dampens public sector pay hike hopes
The Prime Minister has warned unions to be prepared for disappointment in public sector pay negotiations, despite widespread warnings of a crisis in staffing and recruitment. While some above-inflation settlements are not ruled out, Sir Keir Starmer played down the chance of real-terms pay increases, saying: “Obviously there are a number of pay settlements to be gone through on an annual basis. But the finances are in a very poor state, I think that is obvious.” Unions representing health staff and teachers expressed concerns about insufficient pay awards exacerbating recruitment and retention crises
G20 leaders urged to back global tax on billionaires
Former presidents and prime ministers have sent an open letter to current leaders of the world’s 20 largest economies urging support for a global tax on billionaires. The letter, signed by 19 Club de Madrid members, praised US President Joe Biden’s billionaire income tax proposal and called for joint co-operation to combat tax evasion by the wealthiest. Signatories said: “A global deal to tax the ultra-rich would be a shot in the arm for multilateralism: proving that governments can come together for the common good.” The proposal, crafted by French economist Gabriel Zucman from the independent EU Tax Observatory, calls for an annual 2% levy on fortunes exceeding $1bn. This, the report calculates, could raise up to $250bn annually from about 3,000 individuals. While some nations have raised objections, France, Spain, Colombia, Belgium, the African Union, and South Africa have already supported the initiative.
Kinnock expects capital gains reform
With former Labour leader Lord Kinnock saying he “would be astounded” if Chancellor Rachel Reeves does not use her first Budget to equalise capital gains and income tax rates, Sam Brodbeck in the Telegraph says an “attack” on capital gains has “long been a target of Labour politicians” who argue that huge increases in the value of assets have largely been down to luck, not hard work. Others, he says, say that in many cases those assets have already been taxed when they were acquired. Mr Brodbeck says CGT brings in “serious amounts of cash,” with £16.7bn pulled in over the 2021/22 tax year, but notes that it is paid by “relatively few” people. This, he says, means a rise “won’t be as unpopular with the majority of the public as if Labour went after income tax, National Insurance or VAT.”
Carpetright puts itself up for sale
Flooring retailer Carpetright has put itself up for sale amid a slowdown in demand. The company has appointed PwC to launch a sale process, which could lead to store closures and job losses. No formal bids have been made yet, but sources suggest that a sale process could involve restructuring options such as a pre-pack administration or company voluntary arrangement. The appointment of PwC comes after Carpetright brought in restructuring experts Teneo to look at cost-cutting measures
Titanic shipyard seeks £200m bailout
The Government is facing pressure to approve a £200m bailout for Harland & Wolff, the shipbuilder famous for constructing the Titanic. The 162-year-old company is currently in crisis talks with ministers and auditors regarding the accounting of complex contracts. Harland & Wolff has applied for a £200m loan guarantee and is seeking to borrow cash from a consortium of UK banks, with the Government acting as guarantor. Harland & Wolff’s shares were last week suspended from the Aim market after it failed to publish its annual results on time.
Insolvency news
Petitions to wind up (Companies) – BALANCE BAY LIMITED
Petitions to wind up (Companies) – EMPLOYE LIMITED
Petitions to wind up (Companies) – KRYSTAL – KLEAR SUPPLIES LTD
Petitions to wind up (Companies) – THE PLUMAGE LIMITED
Petitions to wind up (Companies) – MB BUILDING CONTRACTORS NORTHWEST LIMITED
Petitions to wind up (Companies) – S AND S WEB TECHNOLOGIES LTD
Petitions to wind up (Companies) – AVON BUSINESS PARKS LIMITED
Petitions to wind up (Companies) – ANGLIAN CONSTRUCTION LTD
Petitions to wind up (Companies) – HALEWYNN LIMITED
Petitions to wind up (Companies) – ADISEL LIMITED
Petitions to wind up (Companies) – O.S.S.(MANCHESTER) LTD
Petitions to wind up (Companies) – PHC GROUP LTD
Petitions to wind up (Companies) – URBAN LOGISTICS NE LTD
Petitions to wind up (Companies) – GLOBAL COMPLIANCE GROUP LIMITED
Petitions to wind up (Companies) – SARM SERVICES LIMITED
Petitions to wind up (Companies) – LAL-AKASH RESTAURANTS LIMITED
Petitions to wind up (Companies) – BNT CONSTRUCTION LTD
Petitions to wind up (Companies) – AYRESOME CONSULTING LIMITED
Petitions to wind up (Companies) – CN WEALTH LIMITED
Petitions to wind up (Companies) – INPHASE ELECTRICAL SOLUTIONS LIMITED
Petitions to wind up (Companies) – TELOS DEVELOPMENT LIMITED
Petitions to wind up (Companies) – HEAROLOGY LIMITED
Petitions to wind up (Companies) – FIRST COMPANY PAYROLL SERVICES LIMITED
Petitions to wind up (Companies) – GROWTHDECK LIMITED
Petitions to wind up (Companies) – ELEFTHERIOU TAVERNS LTD
Petitions to wind up (Companies) – AAT LAB LTD
Petitions to wind up (Companies) – FLIGHTSERVE MEDICAL AIR CHARTER LTD
Petitions to wind up (Companies) – KINGFISHER COUNTRY CLUB LIMITED
Petitions to wind up (Companies) – KARUNSI COMPANY LIMITED
Petitions to wind up (Companies) – FINK BAYONNE BROTHERS VENTURES LIMITED
Petitions to wind up (Companies) – JMP GLOBAL RESOURCES LTD
Appointment of Administrator – BROAD LANE LEISURE LIMITED
Appointment of Liquidators – B.DEVLIN LIMITED
Appointment of Liquidators – HOWARD SPODE CONSULTING LIMITED
Appointment of Liquidators – LEGALDROP LIMITED
Appointment of Liquidators – A FARMERY LIMITED
Appointment of Liquidators – JELLYSTONE (UK) LIMITED
Appointment of Liquidators – SWANSEY LANE LIMITED
Appointment of Liquidators – ALLIANCE & LEICESTER COMMERCIAL BANK LIMITED
Appointment of Liquidators – AUTO ABS UK LOANS PLC
Appointment of Liquidators – MACKIN CONSTRUCTION LIMITED
Appointment of Liquidators – KADAYCO LIMITED
Appointment of Liquidators – OXFORD GYNAECOLOGY AND MEDICOLEGAL SERVICES LIMITED
Appointment of Liquidators – DAYBREAK COMMUNICATIONS LIMITED
Appointment of Liquidators – WAVE PHARMA REGULATORY SERVICES LTD
Appointment of Liquidators – LONGBOW SERVICES LIMITED
Appointment of Liquidators – MOONHILL LIMITED
Appointment of Liquidators – OVAL INTELLIGENCE LTD
Appointment of Liquidators – ANDREW SHEPHERD CONSULTING LIMITED
Appointment of Liquidators – BRIDGEND AND DISTRICT UNITED SERVICES CLUB LIMITED
Appointment of Liquidators – SUNBORNE SYSTEMS LIMITED
Petitions to wind up (Companies) – WOLF & ASH LTD
Petitions to wind up (Companies) – MAP DESIGN & BUILDING SERVICES LTD
Petitions to wind up (Companies) – FUTURE HIGH STREET LIVING (TALBOTS) LIMITED
Petitions to wind up (Companies) – THESKYLINEGROUP LTD
Appointment of Liquidators – AMISFIELD CARE LIMITED
Appointment of Liquidators – INSIGHT INSURANCE CONSULTANCY LIMITED
Appointment of Administrator – UMBRELLA CONTRACTS LIMITED
Petitions to wind up (Companies) – BECK INTERIORS LIMITED
Petitions to wind up (Companies) – WEST SUSSEX LOFTS LTD
Petitions to wind up (Companies) – THOMAS HOPE DEVELOPMENTS LTD
Petitions to wind up (Companies) – LEWES BUILDERS LIMITED
Petitions to wind up (Companies) – AL-MUQIT LTD
Appointment of Liquidators – TRADE SALES CENTRE LIMITED
Appointment of Liquidators – LONDON AND CAPITAL FINANCIAL SERVICES LIMITED
Petitions to wind up (Companies) – CHECK POINT SOFTWARE TECHNOLOGIES (UK) LTD.
Petitions to wind up (Companies) – CORE ACCESS RENTALS LTD
Petitions to wind up (Companies) – TMG HOLDINGS LTD
Petitions to wind up (Companies) – SHIPHAM HOLDINGS LIMITED
Petitions to wind up (Companies) – CRAIG CANNON CONSULTING LTD.
Appointment of Liquidators – EFFECTIVE CONSULTANCY 2 LIMITED
Appointment of Liquidators – MILBY INVESTMENTS LTD
Appointment of Liquidators – PROGTURNAROUND LTD
Appointment of Liquidators – BROADWOOD TECHNOLOGY LTD
Appointment of Liquidators – WEST OF ENGLAND ESTATE MANAGEMENT COMPANY LIMITED
Appointment of Liquidators – STORWELL (ASSET HOLDINGS) LIMITED
Appointment of Liquidators – LARS PROPERTIES LIMITED
Appointment of Liquidators – FAMILY PEP MANAGERS LIMITED
Appointment of Liquidators – MAPLE INVESTMENT HOLDINGS LIMITED
Appointment of Liquidators – DAYKIN CONSULTING LIMITED
Appointment of Liquidators – CP CO MIDCO LIMITED
Appointment of Liquidators – GREEN GROWTH INVESTMENTS LTD
Appointment of Liquidators – COMPOSABLE LIMITED
Appointment of Administrator – AMSCAN HOLDCO LIMITED
Appointment of Liquidators – OUTPOSTS MARKETING LIMITED
Petitions to wind up (Companies) – ELMWOOD PROJECTS LIMITED
Petitions to wind up (Companies) – BROADWOOD CARS LIMITED
Appointment of Liquidators – ARMSTRONG & ARMSTRONG LIMITED
Petitions to wind up (Companies) – 1ST BRITISH CAR RENTALS LTD
Petitions to wind up (Companies) – ANGIE CATERING LTD
Petitions to wind up (Companies) – MCG CONTRACTS & PROJECTS LTD
Appointment of Liquidators – C.C.S.M.S. LIMITED
Appointment of Liquidators – MAGOWAN MANAGEMENT SERVICES LIMITED
Appointment of Liquidators – HANSA ENTERPRISES LTD
Appointment of Liquidators – LADINO LIMITED
Petitions to wind up (Companies) – CARTERS LAND LIMITED
Petitions to wind up (Companies) – MEAT MACHINE CORNWALL LTD
Petitions to wind up (Companies) – MAARS SOLUTIONS LIMITED
Petitions to wind up (Companies) – NM RETAIL UK LTD
Petitions to wind up (Companies) – SILVER DIME 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 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.