Business news 12 September 2023
James Salmon, Operations Director.
Jobs market ‘perfect storm’ fuelling inflation. Insolvency industry set for oversight overhaul. BMW announces Mini factory investment. And more business news that we thought would interest our members.
Jobs market ‘perfect storm’ fuelling inflation
Research from the Centre for Economics and Business Research (CEBR) and recruitment agency Robert Half suggests that a “perfect storm” in the jobs market risks creating a “wage-price spiral” that would make it harder to bring down inflation. Rising wages have made workers more confident that they can receive higher pay, while staff shortages have encouraged workers to leave their jobs to secure a higher wage. The report notes that a shortage of candidates means companies are increasing wages.
Matt Weston, senior managing director at Robert Half, said workers leaving jobs to seek better pay elsewhere is creating a “perfect storm” of pressures, adding: “Affected businesses consequently need to deal with such talent loss in a tight market, fuelling the wage spiral we are seeing today.”
Unemployment
UK Unemployment rose to 4.3%, in line with expectations, figures from the ONS showed. The UK jobless rate rose to 4.3% in the three months ended July, from 4.2% in the three months to June. The figure came in line with market consensus.
Pay growth
Wage growth has caught up with inflation for the first time in nearly two years, even as unemployment goes up as above.
Also in the three months to July, annual growth in average total pay, including bonuses, accelerated to 8.5%. July’s figures were higher consensus. Average earnings excluding bonuses rose 7.8%.
Insolvency industry set for oversight overhaul
The Government is set to introduce comprehensive reforms to overhaul oversight of the insolvency industry but has opted against creating an independent regulator for the sector.
Currently, only individual insolvency practitioners are subject to regulation, leaving companies unaccountable for failures. The proposed changes aim to close this regulatory gap and offer greater protection for those using insolvency services. Practitioners are currently regulated by one of four Recognised Professional Bodies that are overseen by the Insolvency Service. The Government said these bodies would “continue to have oversight of the profession” after the “comprehensive reforms.”
Ministers also plan to consult on a compensation scheme for those affected by insolvency professionals’ mistakes or misconduct. A new public register will list authorised individuals and firms and indicate if they are subject to sanctions.
Insolvency trade body R3 has broadly welcomed the plans and said it was pleased the Government had not pushed ahead with a single state regulator. However, chief executive Caroline Sumner said she was concerned that a redress scheme would encourage a “wave of unsubstantiated claims.” Frances Coulson of law firm Wedlake Bell said the changes would “enable regulators to deal with systemic failures, not just breaches by individuals.”
BMW announces Mini factory investment
BMW has announced plans to invest in preparing its Mini factory in Cowley near Oxford to build a new generation of electric cars. Production of two new electric models is due to begin at the plant in Cowley in 2026. BMW will spend £600m on updating the plant, developing the production lines, extending its body shop and building a new area for installing batteries. The investment will be backed by funding from the Government which is understood to be worth £75m.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said the announcement represents a “vote of confidence” in the country’s automotive manufacturing industry. He added: “Investments such as this improve productivity and help deliver jobs, growth and economic benefits for the country.”
Apple
Apple are looking to move the story away from its trials in China today with a new product launch of new phones and an updated watch and ear buds.
Arm
Arm Holdings initial public offering (IPO) is reportedly oversubscribed by 10 times the stock being made available and its merchant bankers are set to stop taking further orders. Arm is also considering raising the price range of its IPO, having filed, at $47 to $51 a share,valuing the chip designer at up to $54.5 billion.
Wilko stores to shut after rescue deal falls through
The GMB union says 400 Wilko stores will shut by early October, putting 12,500 jobs at risk, after HMV owner Doug Putman’s deal to acquire around 100 stores fell through. The businessman is understood to have ended talks with administrators at PwC due to concerns about the costs of the retailer’s infrastructure. So far, more than 1,300 Wilko jobs have been cut and 52 stores have been closed. B&M last week bought 51 Wilko sites for £13m, while Poundland is believed to be in talks over acquiring up to 70 others. The Range, meanwhile, is seeking a deal for the Wilko brand.
Europe’s economic outlook worsens
The EU has lowered its forecast for economic growth this year and next, with inflation hitting consumer spending and higher interest rates meaning credit is restricted.
The European Commission says the 20 countries using the euro currency are expected to see growth of 0.8% this year – down from a previous estimate of 1.1%. For 2024, growth expectations have been lowered to 1.3% from 1.6%. For the EU as whole, the forecast has been lowered to 0.8% from 1% this year and to 1.4% from 1.7% next year.
Hunt: Tax cuts not on the cards
Jeremy Hunt has suggested that tax cuts are unlikely before the next general election, having warned that inflation has been “stickier than was forecast” and debt interest payments are higher. While hinting that there are no tax cuts on the horizon, the Chancellor said that any discussion on the matter is “speculation” without up-to-date numbers from the Office for Budget Responsibility. Noting that the Government’s priority is bringing down inflation, Mr Hunt added: “When you’re trying to bring down inflation you have to be really careful not to pump extra money into the economy; much as you would like to, not to pump extra money into people’s pockets because that can push up prices and keep inflation higher for longer.”
Renewables
The UK may miss out on 95,000 potential offshore energy jobs if it doesn’t significantly ramp up renewables investment, according to Aberdeen’s Robert Gordon University.
Everton
Everton Football Club is reportedly to be close to being acquired by 777 Partners. The deal would bring the number of US-owned Premier League teams to 10 out of 20.
Latest Insolvencies
Appointment of Administrator – PANACHE LEASING LTD
Appointment of Administrator – AXIS SIGNS LIMITED
Appointment of Administrator – PANACHE 1 LONDON ROAD LIMITED
Appointment of Administrator – THE LONDON ACORN SCHOOL CIC
Appointment of Liquidators – JOHN C SCOTTON LIMITED
Appointment of Liquidators – ELM RIDGE GARDENS LIMITED
Appointment of Liquidators – THE URBAN BUILDING PARTNERS LTD
Appointment of Liquidators – COMMERCIAL CAR COMPONENTS LOGISTICS LIMITED
Appointment of Liquidators – BROOKSON (5824B) LIMITED
Appointment of Liquidators – BRK BRANDS (UK)
Appointment of Liquidators – QUANDARY LIMITED
Appointment of Liquidators – PARS KEBAB LTD
Appointment of Liquidators – GLOBAL STONE (HOLDINGS) LIMITED
Appointment of Liquidators – HSBC CITY FUNDING HOLDINGS
Appointment of Liquidators – KML CLINICAL LIMITED
Appointment of Liquidators – PEARCE & SAUNDERS DEVCO LIMITED
Appointment of Liquidators – BROOKSON (5448I) LIMITED
Appointment of Liquidators – GOURANGA CAR CARE CENTRE LTD
Appointment of Liquidators – GOURANGA PROPERTIES LTD
Appointment of Liquidators – AARDVARK ELECTRICS LTD
Appointment of Liquidators – BENFIELD AND LOXLEY (OXFORD) LIMITED
Appointment of Liquidators – HERON ISSUER LIMITED
Appointment of Liquidators – DESIGNATI LTD
Appointment of Liquidators – COLLIS AND HAYNES LIMITED
Appointment of Liquidators – GENELEC LIMITED
Appointment of Liquidators – UNITED RENTAL GROUP AMERICA LIMITED
Appointment of Liquidators – PEARCE & SAUNDERS LIMITED
Appointment of Liquidators – JA CONTRACTING SERVICES LIMITED
Appointment of Liquidators – MINTON WAVENDON LIMITED
Appointment of Liquidators – OPPORTUNUS FISHING COMPANY LTD.
Appointment of Administrator – SKIRLIE CASTLE LIMITED
Appointment of Liquidators – ROY STRACHAN LTD
Appointment of Liquidators – PATE FARMING COMPANY LIMITED
Petitions to wind up (Companies) – MITAR ENVIRONMENTAL SERVICES LTD
Petitions to wind up (Companies) – CULLODEN MOOR INN LIMITED
Appointment of Administrator – ECOSSE MOTORCYCLES LTD
Appointment of Liquidators – H DUTTON LIMITED
Appointment of Liquidators – MOREDIA LTD
Appointment of Liquidators – CATERFOIL LIMITED
Appointment of Liquidators – LEATHER TECH (EU) LIMITED
Appointment of Liquidators – JANE GRAHAM ASSOCIATES LTD
Appointment of Liquidators – BOB IRVINE CONSULTING LTD
Appointment of Liquidators – JDA CONSULTANCY LTD
Petitions to wind up (Companies) – PREMIER ALLOYS LIMITED
Petitions to wind up (Companies) – FAIRHURST STONE MERCHANTS LIMITED
Petitions to wind up (Companies) – RAM DISTRIBUTION LTD
Appointment of Liquidators – CROSS TECHNICAL MANAGEMENT CONSULTANCY LIMITED
Appointment of Liquidators – VERASIFY LTD
Appointment of Liquidators – HILLARY PRESS LIMITED
Appointment of Liquidators – JOSEPH CAMM FARMS INVESTMENTS LIMITED
Appointment of Liquidators – ANTON BRIDGE INVESTMENTS LIMITED
Appointment of Liquidators – J. A. ZAHRINGER LIMITED
Appointment of Liquidators – WAGSTAFF DEVELOPMENTS (2010) LIMITED
Appointment of Liquidators – GATESIDE AVIATION LIMITED
Appointment of Administrator – TIME GROUP OF COMPANIES LIMITED
Appointment of Liquidators – BOOTHS OF DITTON LIMITED
Appointment of Liquidators – SF STUDIOS PRODUCTION 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 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 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.