Business news 13 December 2024

GDP falls again. Food prices rise 40% in five years. Average Brit to pay £1,261 more in tax. Trump tariffs, Royal Mail, Currys price rises, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
GDP falls again
The UK Economy contracted unexpectedly in October, according to data from Britain’s Office for National Statistics. Gross Domestic Product fell by an estimated 0.1% on a monthly basis, the ONS said Friday, with officials attributing the downturn to a decline in production output. Economists polled by news agency Reuters had projected a 0.1% rise in GDP in October. It marked the country’s second consecutive economic downturn, following a 0.1% GDP decline in September.
The contraction came as consumers braced themselves for a painful budget, leaving the Labour government’s pledge to boost growth in trouble only months after taking power.
Food prices rise 40% in five years – IGD
Food price inflation will pick up pace again next year to reach nearly 5%, the Institute of Grocery Distribution (IGD) has warned. This will mean grocery bills will have surged by 40% since 2020, posing a major threat to living standards. James Walton, chief economist, IGD, said: “We do not see food prices going down in the foreseeable future. The rising cost of living, combined with increased employment and regulatory costs, will keep inflation elevated. Consumers will undoubtedly look for ways to save money, but the impact of these cost pressures will be felt across the economy.”
Average Brit to pay £1,261 more in tax
Chancellor Rachel Reeves’s recent Budget adjustments to capital gains tax (CGT) and dividend tax allowances are set to significantly impact the finances of average Britons. According to Myron Jobson, senior personal finance analyst at interactive investor, “the triple whammy of CGT cuts and dividend tax allowances” will lead to increased tax burdens, with some individuals facing an additional £1,261 in tax by 2025. The CGT rate for basic-rate taxpayers has risen from 10% to 18%, while the dividend allowance has been halved from £1,000 to £500. Jobson said the freeze on the personal allowance at £12,570 until April 2028, combined with wage inflation, will exacerbate the tax burden for many.
Trump tariffs will have ‘insignificant effect’ on UK economy
The UK’s economy is expected to be minimally affected by Donald Trump’s proposed blanket tariffs on imports, primarily due to its strong service sector, which constitutes two-thirds of its exports to the US. A Reuters poll indicated that many economists believe the UK could be spared from the 10-20% import charges, as the focus of Trump’s tariffs is on correcting trade deficits with other nations. Stefan Koopman from Rabobank said: “The UK is relatively well positioned to withstand the repercussions of President-elect Donald Trump’s proposed trade tariffs.” In contrast, eurozone countries, heavily reliant on goods exports, may face significant economic challenges.
Markets
This morning on currencies, the pound is currently worth $1.264 and €1.1205. On Commodities, Oil (Brent) is at $73.80 & Gold is at $2668. On the stock markets, yesterday London shares finished flat despite a raft of interest rate cuts. Over in the US the S&P 500 fell 0.54% to 6051.25 and the NASDAQ fell 0.66% to 19902.84. The FTSE 100 is currently up 0.03% at 8314.08 and the Eurostoxx 50 is up 0.27% at 4978.84.
The Swiss National Bank surprised markets with a 0.5% cut citing economic uncertainty post the US election, and slowing inflation. The Swiss policy rate is now 0.5% less than one third of the level of 1.75% where it started 2024. The move was similar to the 0.5% cut by the Bank of Canada yesterday which likewise flagged slowing GDP growth.
Chinese stockss slumped as the Government left investors guessing on the specifics of its fiscal stimulus plan. The benchmark index snapped a two-week winning streak while bond yields dropped to record lows on the promise of easier monetary policy.
ECB cuts rates amid growth concerns
The European Central Bank (ECB) has reduced its benchmark interest rate from 3.25% to 3% in response to signs of slowing growth and political instability in France, as well as potential new tariffs from the US. It’s the third consecutive cut with traders predicting further easing next year. The eurozone is projected to grow by 0.8% this year, with concerns that high interest rates could hinder economic recovery. Major firms in Germany are announcing job cuts, further impacting economic sentiment.
Royal Mail fined
International Distributions Services-owned Royal Mail was slapped with a £10.5 million fine for a “poor delivery performance”. UK watchdog Ofcom said it was the second sanction in just over a year for a Royal Mail which has failed to “significantly improve service levels”. Ofcom said: “74.7% of First Class mail and 92.7% of Second Class delivered on time, well short of target 93% and 98.5%.” Royal Mail was fined £5.6 million in November 2023 for its performance in the 2022-23 financial year.
Currys boss warns of impending price rises
Currys CEO Alex Baldock has said Labour’s recent Budget will lead to “inevitable” price increases and hinder job creation. He criticised Chancellor Rachel Reeves for not addressing the issue of business rates, which he describes as “mind-bogglingly expensive,” echoing sentiments from Pret A Manger founder Julian Metcalfe. The Chancellor’s decision to raise the employer rate of National Insurance Contributions (NICs) from 13.8% to 15% and lower the payment threshold has alarmed retailers, with 81 of them warning that these changes could result in job losses and shop closures. Without significant reforms, it is feared that 17,300 shops could close over the next decade.
HMRC accused of doing harm to savers in tax-free lump sums row
The Telegraph follows up on news that HMRC has gone against Financial Conduct Authority (FCA) guidance allowing savers to reverse tax-free lump sum withdrawals after it was revealed the tax office said those who rushed to use their tax-free lump sums before the Budget would not be allowed to reverse it. Lisa Picardo, at PensionBee, said: “It is widely understood across the industry that consumers have a right to cancel using a 30-day cooling-off period and preserving their tax-free allowance. HMRC’s recent assertion threatens to undermine the FCA’s principles of consumer duty and is causing uncertainty and harm. We urge HMRC to reconsider its stance and collaborate with the FCA to ensure the financial services industry can continue to fully support and protect consumers.”
Windsor faces 25% council tax rise
The Royal Borough of Windsor and Maidenhead is proposing a staggering 25% increase in council tax, which could significantly impact household finances, with campaigners warning that the King’s bill may rise by over £800 annually. The council, facing “effective bankruptcy,” has requested a £60.3m loan and permission to raise council tax beyond the current 4.99% limit. John O’Connell, chief executive of the TaxPayers’ Alliance, urged the Government to reject this request to deter other councils from similar tax hikes.
Boohoo Mike
Boohoo has said it would not agree to Frasers boss Mike Ashley joining its board “in any circumstances”. In the latest heated exchange between the two, Boohoo said it would be willing to recommend an “appropriate” candidate put forward by Frasers, but not those already suggested.
Sanjay Shah sentenced for massive Danish tax fraud
Sanjay Shah, a British hedge fund trader, has been sentenced to 12 years in prison for gross fraud against the Danish state, marking the longest sentence for financial crime in Denmark’s history. The Glostrup court found Shah guilty of orchestrating a “cum-ex” tax fraud scheme that defrauded the treasury of over 9bn DKK (£996m) through fraudulent dividend tax refunds. The court noted that Shah played a “central and controlling role” in the crime, which was meticulously planned and executed. In addition to his prison term, Shah will be expelled from Denmark and banned from business activities. He is appealing the verdict while remaining in custody due to flight risk concerns. The prosecution has also secured the seizure of 7.2bn DKK linked to the fraud.
Greens restaurant chain’s collapse detailed
The collapse of the well-known vegetarian restaurant chain Greens, co-founded by celebrity chef Simon Rimmer, has been detailed for the first time. The restaurant, which opened in Didsbury, Manchester, in 1990, closed its doors in January 2024, followed by its Sale location in September. According to a document from Begbies Traynor, the chain owed creditors approximately £458,873 to HMRC, £13,164 to the Royal Bank of Scotland, and £75,000 to trade creditors, with consumer creditors owed around £35,790. Begbies Traynor stated: “There will not be enough money recovered through the administration process to pay anything back to these creditors.” The business and assets were acquired by The Bubble Room Sale Limited for £50,000. The report highlighted that “sales projections for Greens Sale were over ambitious,” contributing to the chain’s financial difficulties.
Latest Insolvencies
Petitions to wind up (Companies) – STAR CAFE (BEDFORD) LIMITED
Petitions to wind up (Companies) – SHUNAR BANGLA LIMITED
Appointment of Administrator – DNANUDGE LIMITED
Appointment of Administrator – AUSTIN FRASER INTERNATIONAL LIMITED
Appointment of Administrator – TEF TRANSPORT LIMITED
Appointment of Liquidators – DAVID TURNBULL LIMITED
Appointment of Liquidators – JONLINK LIMITED
Appointment of Liquidators – TECH TALENT CHARTER COMMUNITY INTEREST COMPANY
Appointment of Liquidators – TOSHIBA INFORMATION SYSTEMS (UK) LIMITED
Appointment of Liquidators – BASE ON MARS LTD
Appointment of Liquidators – WHYTE’S BUILDING SERVICES LIMITED
Appointment of Liquidators – ARTICULATE LAW LIMITED
Appointment of Liquidators – COPTHORNE CONSULTING LIMITED
Appointment of Liquidators – PAYBIZ CONSULTING LTD
Appointment of Liquidators – DAVID BULMER ASSOCIATES LIMITED
Appointment of Liquidators – NEW LEAF BIDCO LIMITED
Appointment of Liquidators – ISLAY HOLDINGS LIMITED
Appointment of Liquidators – ISLAY TIDAL POWER LIMITED
Appointment of Liquidators – EUROFINS ALBA SCIENCE LIMITED
Petitions to wind up (Companies) – MCDOUGALL JOINERY & BUILDING LTD
Petitions to wind up (Companies) – BUCKDEN FREEHOLD LIMITED
Petitions to wind up (Companies) – PAPA’S GRILL (ORIGNAL) LIMITED
Appointment of Administrator – STYLEMANIA LTD
Appointment of Administrator – AB PAPERS UK LIMITED
Appointment of Administrator – PARAGON SCHEME MANAGEMENT SERVICES LIMITED
Appointment of Administrator – REDFIELDS LANDSCAPING & DESIGN LIMITED
Appointment of Administrator – HAWKMOOR LIMITED
Appointment of Administrator – AGRS HOLDING LIMITED
Appointment of Liquidators – ARTEMIS ALPHA TRUST PLC
Appointment of Liquidators – ALLBLUE LIMITED
Appointment of Liquidators – RANMOOR HEART HEALTH (CONSULTING) LTD
Appointment of Liquidators – ASSENT PLANNING CONSULTANCY LIMITED
Appointment of Liquidators – INERTIAL LIMITED
Appointment of Liquidators – IVY PROPERTIES LIMITED
Appointment of Liquidators – AVANTGARDE MOBILE HOMES LTD
Appointment of Liquidators – DELIVERY INSIDER LIMITED
Appointment of Liquidators – LITTLE ORCHARD TECH LTD
Winding up Order (Companies) – ADEPT RECRUITMENT LIMITED
Appointment of Liquidators – NEWMAFRUIT LIMITED
Appointment of Liquidators – BARDSLEY HICO LIMITED
Appointment of Liquidators – BARDSLEY FRUIT ENTERPRISES LIMITED
Appointment of Liquidators – BARDSLEY & SONS LIMITED
Appointment of Liquidators – BARDSLEY FRUIT FARMING LIMITED
Appointment of Liquidators – BARDSLEY HORTICULTURE LIMITED
Appointment of Liquidators – TEAK CONSULTING LTD
Appointment of Liquidators – GO ASPASIA LTD
Petitions to wind up (Companies) – CRIMSON HORIZON LIMITED
Appointment of Liquidators – SOUTHBROOK GROUP LIMITED
Appointment of Liquidators – EASTWOOD’S COMMERCIAL MOTORS LIMITED
Appointment of Administrator – NORTH WEST WINDOWS LIMITED
Appointment of Liquidators – SAUMYA ENGINEERS LTD
Appointment of Liquidators – PEOPLE2PROCURE LIMITED
Appointment of Liquidators – OXFORD COMPUTER CONSULTANTS LIMITED
Appointment of Liquidators – WILKINSON & WILKINSON (CONSULTING ENGINEERS) LTD.
Winding up Order (Companies) – A MART LIMITED
Winding up Order (Companies) – MR G’S COLLECTION LIMITED
Appointment of Liquidators – CONNECT THERAPEUTIC COMMUNITY LIMITED
Appointment of Liquidators – C.T. COMMUNITY (HOLDINGS) LIMITED
Appointment of Liquidators – EQUANS ENERGY SERVICES UK LIMITED
Winding up Order (Companies) – CAD – POULTRY LTD
Appointment of Liquidators – TERRY SAUNDERS SERVICE INVESTMENTS LIMITED
Petitions to wind up (Companies) – RAREVER LTD
Petitions to wind up (Companies) – INTERACTIVE EDUCATION SOLUTIONS LIMITED
Appointment of Administrator – MISTRAL RETAIL LIMITED
Appointment of Liquidators – CLINIWASTE HOLDINGS LIMITED
Appointment of Liquidators – GLOBAL AWARE INTERNATIONAL LTD
Appointment of Liquidators – MITIE SECURITY (FIRST) LIMITED
Appointment of Liquidators – NB FINANCIAL RISK SERVICES LIMITED
Appointment of Liquidators – INTELLISENSE LTD
Appointment of Liquidators – 3R CONSULTANCY LIMITED
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.