Business news 13 November 2024
UK unemployment rate rises to 4.3%. Farmers unite for historic strike. Chancellor to unveil payments overhaul. Mortgage rates on the rise again. Labour’s tax changes hit families hard. Post offices, Grocery sales, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
UK unemployment rate rises to 4.3%
Recent figures from the Office for National Statistics (ONS) indicate a troubling trend in the UK’s employment market, with the unemployment rate rising to 4.3% in the three months to September, up from 4% previously. Job vacancies fell by 35,000 to 831,000, marking a continued decline over two years. Average wage growth, excluding bonuses, has also slowed to 4.8%, the lowest since June 2022, although it still outpaces inflation. Experts, including Gora Suri from PwC, warn that the Chancellor’s national insurance changes could further pressure wages and inflation. Alexandra Hall-Chen from the Institute of Directors expressed concern over employers’ cautious hiring intentions due to recent policy changes. The ONS also revealed a record 7m foreign-born workers are employed in Britain, following a surge in migration since the pandemic.
Farmers unite for historic strike
The Enough is Enough campaign is spearheading the UK’s first farming strike, set to commence on Sunday, in response to government changes to inheritance tax. The group stated: “British farmers have simply had enough,” highlighting the severe impact of the proposed 20% tax on farms valued over £1m, effective from April 2026. The National Farmers’ Union (NFU) warns that up to two-thirds of farms could face significant tax bills, jeopardising their viability. The campaign reflects widespread frustration among farmers, with competing protests planned, including a mass lobby event in Westminster. Meanwhile, one of Britain’s biggest food producers, Ranjit Singh Boparan, has warned that Labour’s “Budget was a disaster for business and will deliver a final fatal blow to the thousands of small, family-owned farms we in the food manufacturing sector rely upon day in, day out.” The strike comes as the Country and Land Business Association reports that a typical family farm would have to put 159% of annual profits into paying the new inheritance tax every year for a decade and could have to sell 20% of their land due to Labour’s tax changes.
Chancellor to unveil payments overhaul
Rachel Reeves is set to announce a significant overhaul of Britain’s payments infrastructure during this week’s Mansion House dinner. The Chancellor plans to empower the Bank of England to take a more central role in overseeing payments, addressing concerns that the UK is lagging behind global competitors in payments innovation. An insider revealed that Reeves aims for “a more coherent approach” to payments, as the fragmented supervision by various regulators, including the Payment Systems Regulator and the Financial Conduct Authority, has raised efficiency concerns.
Mortgage rates on the rise again
Recent changes in interest rates and swap rates have led to major lenders, including Nationwide Building Society, HSBC UK, and Santander, increasing their mortgage rates. Nationwide announced that selected two, three, and five-year fixed-rate deals will rise by up to 0.20 percentage points, reflecting the current swap rate environment. A spokesperson from Nationwide stated: “The changes we’re making on our fixed-rate range are reflective of that and the rate changes happening across the market.” Meanwhile, Hina Bhudia from Knight Frank Finance noted that “announcements of rate hikes are now coming thick and fast,” indicating a broader shift in mortgage pricing. The Bank of England recently cut the base interest rate to 4.75%, but analysts suggest this may not lead to immediate reductions in mortgage rates, as many have already been priced in. The landscape for borrowers remains challenging as swap rates continue to rise.
Labour’s tax changes hit families hard
Labour’s recent tax reforms, particularly the inclusion of pensions in the inheritance tax framework, are set to have significant implications for working families. As Rachel Reeves announced in her maiden Budget, from 2027, high-earning parents may lose substantial childcare support if they inherit pensions that push their income above critical thresholds. Chris Etherington from RSM warned: “Parents can inadvertently step over a cliff edge if they drawdown on an inherited pension and could lose valuable benefits and allowances.” The changes could result in families facing unexpected tax liabilities, with some potentially losing up to £2,212 in child benefit. Michelle Denny-West from Moore Kingston Smith noted that these reforms have led to “surprising tax consequences” for families, as static inheritance tax-free thresholds have not kept pace with rising asset values.
UK businesses brace for tax shake-up
Industry leaders are warning of a potential surge in for-sale signs on UK businesses due to changes in inheritance tax (IHT) announced in Rachel Reeves’ Autumn Budget. From April 2026, business assets valued over £1m will incur a 20% tax, impacting many family-run enterprises. Richard Stanley from UHY Hacker Young stated: “We could well see them being sold off at ‘fire sale’ prices,” highlighting concerns over reduced demand and market conditions. Neil Davy, chief executive of Family Business UK, described the policy as “damaging,” noting that family business owners typically retain 90% of their wealth in their companies, making it difficult to cover the new tax costs. This could lead to asset-stripping or forced sales, jeopardising the future of many SMEs, which represent over 99% of the UK’s business population.
Post Office branches at risk of closure
The Post Office is reportedly planning to close over 100 wholly owned branches as part of a strategy to address its financial difficulties. These branches, which employ nearly 1,000 people, are significantly loss-making. Additionally, more than 1,000 jobs at the Post Office’s headquarters are also at risk. A government source indicated that these measures are necessary to stem substantial financial losses. The company has been under scrutiny following the Horizon IT scandal, which has been described as Britain’s biggest miscarriage of justice. The Government is exploring options for mutualising the Post Office, potentially transforming it into an employee-owned mutual.
Markets
Yesterday London markets drifted lower as investors reacted to the political fallout in Germany and higher unemployment numbers. The FTSE 100 closed down 1.22% at 8025.77 and the Euro Stoxx 50 closed down 2.25% at 4744.69.
In company news, Vodafone declined more than 7% despite reporting higher interim profit and income growth.
Overnight in the US the S&P 500 fell 0.29% to 5983.99 and the NASDAQ fell 0.09% to 19281.40.
This morning on currencies, the pound is currently worth $1.274 and €1.200. On Commodities, Oil (Brent) is at $72.5 & Gold is at $2610. On the stock markets, the FTSE 100 is currently up 0.1% at 8033 and the Eurostoxx 50 is up 0.22% at 4755.
The Euro has fallen to its weakest level in a year against the dollar.
Crypto investors brace for tax hike
HMRC has begun sending “nudge letters” to individuals suspected of underreporting their cryptocurrency profits, as new capital gains tax (CGT) rates come into effect. Basic-rate taxpayers will see their CGT rise from 10% to 18%, while higher earners face an increase from 20% to 24%. James Carn, an associate director at Evelyn Partners, cautioned that “the tax treatment of crypto assets can be complex.” Suzanne Morsfield, policy advisor at CryptoUK, expressed concern that the proposed tax hikes could adversely affect the 5m crypto holders in Britain. The changes will impact various assets, including real estate and stocks, with tax liabilities increasing for profits exceeding £3,000.
Grocery Sales
UK Grocery Sales spiked as trips to supermarkets hit the highest level since the onset of the pandemic. “Christmas came early” for grocers, Kantar explained, with holiday staples such as mince pies and Christmas cake flying off the shelves. There was also a Halloween “galvanising sales”. UK grocery sales in the 12 weeks to November 3 rose 2.3% to £34.01 billion from £33.25 billion a year prior. In the final four weeks of the survey, sales were up 2.0% to £11.6 billion, the best month so far this year.
Britain to build more subsea connections to EU power grids
Britain’s energy regulator has approved five major subsea power cable projects. Ofgem has sanctioned three interconnectors linking Great Britain to Germany, Ireland, and Northern Ireland, alongside new cables to Dutch and Belgian offshore windfarms. Currently, the UK has interconnectors with a capacity of 11.7 gigawatts, which will increase to 12GW by 2030 and 18GW by 2032. Akshay Kaul, Ofgem’s infrastructure director, stated: “As we shift to a clean power system more reliant on intermittent wind and solar energy, these new connections will help harness the vast potential of the North Sea.” The projects aim to enhance energy security and reduce reliance on foreign gas markets. Ofgem has confirmed plans for up to 18 of the cables by 2032.
Shell
Shell has hailed its victory in overturning a landmark ruling requiring the oil giant to slash emissions. The Court of Appeal in the Netherlands on Tuesday overturned a 2021 district court decision which had ordered Shell to cut carbon emissions by 45% come 2030, including those produced through use of its fuel, known as scope three.
Latest Insolvencies
Appointment of Administrator – DAVIS COMMERCIAL SERVICES ENGINEERING LIMITED
Appointment of Liquidators – POC DEVELOPMENTS (MEADOW VIEW) LIMITED
Appointment of Liquidators – NEREID LTD
Appointment of Liquidators – JWEIT LIMITED
Appointment of Liquidators – MASTERPLAN CONSULTING LIMITED
Appointment of Liquidators – CHIL FOOD SOLUTIONS LIMITED
Appointment of Liquidators – SECURENET COMMUNICATIONS LIMITED
Appointment of Liquidators – SPACIAL LTD
Appointment of Liquidators – DRT HOLDINGS LIMITED
Appointment of Liquidators – AQ TECHNOLOGY LIMITED
Appointment of Liquidators – JM WARING PRO SHOP LIMITED
Appointment of Liquidators – MICHAEL JAMES AUTOS PLC
Appointment of Liquidators – SYNCORDIS LIMITED
Appointment of Liquidators – BURMESTER CAMPBELL LTD
Appointment of Liquidators – BARTONPATH LIMITED
Appointment of Liquidators – BROOKFIELD BHS ADVISORS (UK) LIMITED
Appointment of Liquidators – JMB IT CONSULTANCY LTD
Appointment of Liquidators – MDGLOBALSTRATEGY LIMITED
Appointment of Liquidators – M. & J. LOSSOS & CO. LIMITED
Winding up Order (Companies) – THE MACHINING CENTRE LIMITED
Appointment of Liquidators – GLANVILLE PROPERTIES (SW) LIMITED
Appointment of Administrator – TROY CENTRAL LIMITED
Petitions to wind up (Companies) – ONEE GROUP LIMITED
Appointment of Liquidators – THE DOOR HEYDON LIMITED
Appointment of Liquidators – SYLVATICA MARKETING LIMITED
Appointment of Liquidators – CLAUS EGSTRAND II LIMITED
Winding up Order (Companies) – CM TECHNICAL LTD
Appointment of Liquidators – AM MACCALLUM CONSULTING LIMITED
Appointment of Liquidators – BINDER-CONSULT LTD
Appointment of Liquidators – TCTH LIMITED
Appointment of Liquidators – JOE BENNETT PROMOTIONS LIMITED
Appointment of Liquidators – EAGMOUNT CONSULTING SERVICES LTD
Appointment of Liquidators – BEATTY ENERGY LIMITED
Appointment of Liquidators – CRAIGON GOLF LIMITED
Petitions to wind up (Companies) – DISCOVERY RETAIL LIMITED
Petitions to wind up (Companies) – FSR ELECTRICAL LTD
Petitions to wind up (Companies) – INVERTED IMAGES LIMITED
Appointment of Liquidators – ROONEY10 LTD
Appointment of Liquidators – BERRINGTON FARMS LIMITED
Appointment of Liquidators – U-SOURCE LIMITED
Appointment of Liquidators – DUDLEY FENCING & LANDSCAPING LIMITED
Petitions to wind up (Companies) – OMANI ESTATES LIMITED
Appointment of Liquidators – AETNA INSURANCE COMPANY LIMITED
Appointment of Administrator – CSW PROCESS LIMITED
Appointment of Liquidators – SOLDRIDGE CONSULTING LIMITED
Appointment of Liquidators – DAODAN INDUSTRIES LIMITED
Appointment of Administrator – JOHN TRUSWELL & SONS (GARAGE) LIMITED
Appointment of Liquidators – HELM ACTUARIAL LIMITED
Appointment of Liquidators – DELAMERE (CHELMSFORD) LIMITED
Appointment of Liquidators – BELL MEDICAL CONSULTANTS LIMITED
Appointment of Liquidators – C.H.JOHNSON & CO. (HANLEY) LIMITED
Appointment of Liquidators – CADJEN PROPERTIES LIMITED
Appointment of Liquidators – RAY CARTER AGENCIES LIMITED
Appointment of Liquidators – BASIL DAZZLE LTD
Appointment of Liquidators – DPLUS7 LTD
Appointment of Liquidators – IRONOX SHOTBLASTING LIMITED
Appointment of Liquidators – BRAYFORD PROPERTIES LIMITED
Appointment of Liquidators – TIM FROST PROPERTY CONSULTANTS LIMITED
Appointment of Liquidators – JONATHAN BELL LTD
Appointment of Liquidators – CLOUD FINANCE LIMITED
Appointment of Liquidators – GENERAL SEWING MACHINES & ACCESSORIES LIMITED
Appointment of Liquidators – HOLMBUSH EVENTS LIMITED
Appointment of Liquidators – JUNO INVESTMENT ADVISORY LTD
Appointment of Liquidators – OLD KENSWORTH PROPERTY HOLDING COMPANY LIMITED
Appointment of Liquidators – HEXHAM HORSELESS CARRIAGES LIMITED
Appointment of Liquidators – ARCHITECTURAL LEAD & METAL WORK LIMITED
Appointment of Liquidators – QUANTUM HOUSE HOLDINGS LIMITED
Appointment of Liquidators – P L CIVILS LIMITED
Appointment of Liquidators – NED FRESH TRADING LIMITED
Appointment of Liquidators – TAG ASSETS LIMITED
Appointment of Liquidators – IRONSTONE UK LIMITED
Appointment of Liquidators – LADY MUSGRAVE LIMITED
Appointment of Liquidators – MSAFE TECHNOLOGIES LIMITED
Appointment of Liquidators – TRITECH HOLDINGS (NW) LTD
Appointment of Liquidators – CHARTERHOUSE PD (4) LLP
Appointment of Liquidators – LIMBS & PROSTHETICS LEGAL REPORTING LIMITED
Appointment of Liquidators – ROLEC (MIDBROOK) LIMITED
Appointment of Liquidators – EPIHIRO PLC
Appointment of Liquidators – TWINE ASSOCIATES LTD
Appointment of Liquidators – FACILITIES SERVICES LTD
Appointment of Liquidators – MOREMI LIMITED
Appointment of Liquidators – MTG BUILDING SERVICES LIMITED
Appointment of Liquidators – THE PLANT SPECIALIST LIMITED
Appointment of Liquidators – EPIHIRO HOLDINGS LIMITED
Appointment of Liquidators – SAGE MEDICAL (UK) LTD
Appointment of Liquidators – BASTION INVESTMENTS LIMITED
Appointment of Liquidators – PERISTYLE PROPERTIES LTD
Appointment of Liquidators – TOWD POINT MORTGAGE FUNDING 2018- AUBURN 12 HOLDINGS LIMITED
Appointment of Liquidators – AFTON WIND FARM (BMO) LIMITED
Appointment of Liquidators – MAENNE LIMITED
Appointment of Liquidators – PRESTIGE D&M LTD
Appointment of Liquidators – ELIZABETH STEWART PROPERTY LTD
Appointment of Liquidators – LISA WRIGLEY DESIGN LIMITED
Appointment of Liquidators – RYECROFT MEDICAL SERVICES LIMITED
Appointment of Liquidators – CHARTWOOD CONSULTING LIMITED
Appointment of Liquidators – MONTY PROPERTIES LIMITED
Appointment of Liquidators – MILLER FLUID POWER LIMITED
Appointment of Liquidators – DETACOL CONSULTING LTD
Appointment of Liquidators – A & D STURDY LIMITED
Appointment of Liquidators – PROFESSIONAL TREE SURGEONS LTD
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.