Business news 13 September 2024
38 stores a day shut up shop. National debt set to surge. Essential Data centres, ECB, Strawberry, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
38 stores a day shut up shop
New research from PwC shows that 6,945 stores have closed so far in 2024, with this the equivalent of 38 shops per day. When new store openings are factored in, there is a new closure rate of 12 stores a day. The net closure rate in the same period of 2023 was 11 shops per day.
The analysis shows that, on average, 18 chemists, 16 pubs and nine banks shut down every week between January and June, with three convenience stores and one café chain opened in their place.
Kien Tan, senior retail adviser at PwC, said: “The challenge for High Streets is that things like banks, pubs and chemists give people a reason to visit on a regular basis,” adding: “But there’s also been a long-term shift in doing many things online, so there’s less need for physical locations.”
National debt set to surge
The Office for Budget Responsibility has warned that the national debt is on an “unsustainable path” and is set to treble in the next 50 years. The fiscal watchdog says public debt, which is currently at around 99.7% of GDP, could hit 270% of GDP by the mid-2070s. The OBR’s Fiscal Risks and Sustainability report says an ageing population linked to the falling birth rate, fiscal costs from climate change, and rising geopolitical tensions will put increased pressure on Treasury budgets. Under the projections, public spending would rise to more than 60% of GDP over the next 50 years, up from a current rate of around 45%. Darren Jones, Chief Secretary to the Treasury, said: “The OBR has laid bare the shocking state that our public finances were left in by the previous government.” He added that the new government “began work immediately to address the inheritance with tough choices on spending alongside ambitious action to drive growth.”
Government declares data centres are Critical National Infrastructure
Ministers have officially designated data centres as Critical National Infrastructure (CNI), a status which will grant them extra government support to protect crucial data against incidents such as cyberattacks and IT outages. The CNI designation, which is the first since the space and defence sectors were granted the status in 2015, puts data centres alongside emergency services, finance, healthcare, energy, and water systems. Tech secretary Peter Kyle said: “Data centres are the engines of modern life, they power the digital economy and keep our most personal information safe.” He added that bringing them into the CNI regime “will allow better coordination and cooperation with the Government against cyber criminals and unexpected events.”
Markets
Yesterday, the FTSE 100 closed up 0.57% at 8240.97 and the Euro Stoxx 50 closed up 1.06% at 4814.08. Overnight in the US the S&P 500 rose 0.75% to 5595.76 and the NASDAQ rose 1% to 17569.68.
US Employers cut 75,891 jobs in August, marking the highest total in five months and the largest for August since 2009, excluding the pandemic disruptions of 2020. The data reflects growing signs of a softening US labour market, aligning with other recent key economic releases.
This morning on currencies, the pound is currently worth $1.315 and €1.185. On Commodities, Oil (Brent) is at $72.55 & Gold is at $2573. On the stock markets, the FTSE 100 is currently up 0.05% at 8244 and the Eurostoxx 50 is up 0.29% at 4829.
Oil Prices rose on Friday, extending a rally sparked by output disruptions in the US Gulf of Mexico, where Hurricane Francine forced producers to evacuate platforms before it hit the coast of Louisiana.
Gold Prices soared to an all-time high on Friday as the dollar weakened amid prospects of a US interest rate cut next week.
Bank of England eases capital rules
The Bank of England has announced a significant relaxation of a proposed overhaul of the UK banking system that is designed to shock-proof it from a financial crash. The Bank has made “substantial changes” to earlier proposals on the Basel 3.1 standard, with banks no longer having to set aside as much money for capital buffers as previously planned. Under the revised plans, banks would have to increase their current capital buffers by less than 1%. Proposals put forward in 2023 had pointed to a 3.2% rise. It is noted that the EU has proposed a 9.9% increase, while US regulators are proposing a 9% rise. The Bank’s Prudential Regulation Authority said it would make “substantial amendments” to the previously proposed reforms following consultation and evidence which highlighted “too much conservatism” and excessive costs or challenges to implementation. The chief executives of banks including HSBC, Barclays, Lloyds and Barclays yesterday met with Bank governor Andrew Bailey and Chancellor Rachel Reeves to discuss the changes.
ECB
The European Central Bank has cut interest rate by 25 basis points for the second consecutive month, bringing the base rate down to 3.5% for the first time since April 2023. Policymakers made the decision following a steady fall in inflation across the block.
Strawberry AI
OpenAI has announced a new artificial intelligence model called Strawberry that can perform some human-like reasoning tasks. Strawberry should be able to solve multi-step problems, including complicated math and coding questions with the new model spending more time thinking about problems before responding.
Vodafone & Three
The UK Competition and Markets Authority has raised concerns about Vodafone’s planned merger with Three. An investigation by the CMA concluded that the merger could result in higher prices or reduced services for tens of millions of mobile customers. The regulator found that customers might have to pay more for improvements in network quality that they do not necessarily value.
National Grid
National Grid said it has struck a deal with the UK government which will bring the Electricity System Operator into public hands. National Grid’s Electricity System Operator arm will be sold for an enterprise value of £630 million.
Post Office
Civil servants in the Business department are lobbying the Treasury to set aside more money to cover compensation for people caught up in the Post Office scandal, underslining the demands on Chancellor of the Exchequer Rachel Reeves while she seeks savings to balance the books of the public finances. The request will be part of the department’s negotiations with the Treasury ahead of Reeve’s first budget on 30th October.
City Minister pledges to work with private equity
City Minister Tulip Siddiq has pledged to work “together” with the private equity industry, saying the sector would be core to the government’s growth mission. However, in a speech at the British Private Equity and Venture Capital Association’s (BVCA) annual summit, Ms Siddiq omitted to mention a contentious tax hike on carried interest – the profits that investment bosses make from the sale of assets. Labour has consulted on increasing the charge from the current level of 28% and equalising it with the higher level of income tax, which stands at 45%. While critics say the gap is a “loophole” which allows bosses to earn profit at a lower tax rate, the BVCA has warned that steeper taxes would put the UK out of step with “key competitor jurisdictions” like the US, France, Germany and Italy.
HMRC issues saving warning
Katie Elliott in the Express says Britons earning £17,570 or more should be particularly mindful of the tax implications. The “starting rate for savings” allows individuals to earn up to £5,000 in interest tax-free, but this benefit diminishes as income rises. For instance, if someone earns £16,000 and receives £200 in interest, their tax-free savings allowance is reduced to £1,570. Those earning above £17,570 will have a Personal Savings Allowance, which varies based on their income tax band. Basic rate taxpayers can earn £1,000 tax-free, while higher-rate taxpayers can earn £500. HMRC has warned that “it is crucial for people to review their savings regularly, especially if they’re nearing or exceeding the £17,570 mark.”
Latest Insolvencies
Appointment of Administrator – KYUK 2024 LIMITED
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Petitions to wind up (Companies) – LINN INVESTMENTS LIMITED
Appointment of Liquidators – NIMCO HOLDINGS LIMITED
Appointment of Administrator – BLAKESLEY ESTATES (HAYLE CT) LTD
Petitions to wind up (Companies) – WARMER HOMES LIMITED
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Appointment of Liquidators – DORSET PROPERTY SURVEYS LIMITED
Appointment of Liquidators – BJS MORAY LIMITED
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Appointment of Liquidators – IMTRAPHARMA LTD
Appointment of Liquidators – ADAM INGLIS LIMITED
Appointment of Liquidators – MAPLERIDGE SERVICES LIMITED
Appointment of Liquidators – GLYNSDALE LIMITED
Petitions to wind up (Companies) – KGT ELECTRICAL & BUILDING SOLUTIONS LIMITED
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Petitions to wind up (Companies) – MAIL MARKETING (SCOTLAND) LIMITED
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Petitions to wind up (Companies) – LB & JK LTD
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Appointment of Administrator – CITIPOINT LTD
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Appointment of Liquidators – JSL TECHNOLOGY LIMITED
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Appointment of Liquidators – LIQUID WORLDS LIMITED
Appointment of Liquidators – TAWSE WELL ENGINEERING LIMITED
Petitions to wind up (Companies) – QPS ENGINEERING LTD
Appointment of Liquidators – ACTUARIAL CLIMATE SOLUTIONS LTD
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Appointment of Administrator – AILSA HOMES LTD
Petitions to wind up (Companies) – LD CIVILS AND GROUNDWORK LTD
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Appointment of Liquidators – J.P. COLBRIDGE LTD.
Petitions to wind up (Companies) – METXG LIMITED
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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.