Business news 16 August 2024
Britain’s economy grows for second consecutive quarter. Business leaders issue warning over Labour’s workers’ rights plan. Support for those affected by Port Talbot cuts. Retail rises, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Britain’s economy grows for second consecutive quarter
Britain’s economy grew by 0.6% in the second quarter of the year, marking the second consecutive quarter of growth. The growth is in line with estimates and indicates that the UK economy is recovering from the recession experienced at the end of last year. The service sector played a significant role in driving this growth, with scientific research, the IT industry, and legal services performing well. Inflation remains under control, and real wages are at their highest level in three years. The growth follows a 0.7% expansion in the first quarter of the year and has led Tories to accuse the new Chancellor Rachel Reeves of being dishonest about the state of the economy. Shadow Chief Secretary to the Treasury Laura Trott said the figures demonstrate that there is “absolutely no need or justification for tax raises” while former Chancellor Jeremy Hunt said: “Today’s figures are yet further proof that Labour has inherited a growing and resilient economy. The Chancellor’s attempt to blame her economic inheritance on her decision to raise taxes – tax rises she had always planned – will not wash with the public.”
Business leaders issue warning over Labour’s workers’ rights plan
Business leaders have expressed concerns over Angela Rayner’s workers’ rights plan, warning that it could harm jobs and growth. The deputy Prime Minister and business secretary, Jonathan Reynolds, held talks with top bosses of business groups and trade unions to discuss the plans, which include giving workers rights from day one in new jobs as well as a crackdown on zero-hours contracts. But industry figures urged the Government to reduce harm to firms and the wider economy from the proposed employment laws. Tina McKenzie, policy chair at The Federation of Small Businesses (FSB), said: “The new administration must listen to the real needs of small businesses on the ground and help, not harm, small business efforts to get people into work and secure the high levels of growth the country desperately needs.” Elsewhere, Neil Carberry, who runs the Recruitment and Employment Confederation (REC), said he hoped reasonable agreement can be made while Jonathan Geldart, director-general of the Institute of Directors, said further consultation would be “essential to minimising the risk of unintended consequences of these reforms.”
Retail
UK Retail Sales climbed as expected by 0.5% in July, following a 0.9% drop a month earlier, the Office for National Statistics reported on Friday. This was fuelled by a rise in shopping at department stores and on sports equipment as the Euros football tournament and Olympics in Paris took place. Over the year to July, volumes were up by 1.4%, with the increase at department and sports stores offsetting declines in motor fuel sales, alongside at household and textile goods retailers.
Government unveils £13.5m in support for Tata Steel workers and businesses
The UK Government is set to provide a £13.5m cash injection to support businesses and workers affected by job cuts at Tata Steel’s Port Talbot facility in South Wales. The funds will help local enterprises dependent on Tata Steel and assist affected workers in finding new employment, obtaining training, and getting qualifications in sectors with job openings. Business and Trade Secretary Jonathan Reynolds commented: “This funding is an important step towards supporting workers affected by Tata Steel’s transition and businesses in the wider supply chain. We’re working in partnership with trade unions and industry to secure a green steel transition that’s right for the economy, our talented workforce and local communities for generations to come, and our negotiations with Tata remain ongoing.”
Markets
Yesterday, stocks rallied today after a boost from some fresh macroeconomic data. Hopes of a US rate cut were boosted after US retail sales soared ahead of expectations in July, while unemployment in August also improved. London grabbed onto the coat tails of the US market.
US Consumer Spending held up even better than expected in July as inflation pressures showed more signs of easing, the Commerce Department reported. Advanced retail sales accelerated 1% on the month, according to numbers that are adjusted for seasonality but not inflation. Economists surveyed by Dow Jones had been looking for a 0.3% increase. June sales were revised to a decline of 0.2% after initially being reported as flat.
The FTSE 100 closed up 0.8% at 8347.35 and the Euro Stoxx 50 closed up 1.7% at 4807.77. Overnight in the US the S&P 500 rose 1.61% to 5543.22 and the NASDAQ rose 2.34% to 17594.50.
Markets are up this morning with sentiment buoyed by growing optimism that the US will avoid a recession. On currencies, the pound is currently worth $1.2890 and €1.1737. On Commodities, Oil (Brent) is at $80.45 & Gold is at $2462. On stock markets, the FTSE 100 is down 0.2% at 8330 and the Eurostoxx 50 is up 0.47% at 4830.
Financial inclusion drops as cost of living crisis persists
People in the UK are feeling significantly less financially included than they used to be, as the pressure of the cost of living crisis continues to weigh on the public. According to a survey by Principal Financial Group, the proportion of people who feel financially included in the UK has dropped to 56% from 73% a year ago. Confidence in individual economic circumstances has also deteriorated, with only 28% feeling confident about finding a new job if needed, down from 50% six months ago. Despite positive economic forecasts, consumer confidence remains subdued, with only 31% feeling confident about the near-term economic outlook. Seema Shah , chief global strategist at Principal Asset Management, said: “Investors should take note of this sentiment. Economies where people don’t feel they can manage their debt or rely on steady employment are not conducive to confidence and consumer spending.”
New £45m HMRC office in Portsmouth to create 350 jobs
A new £45m HMRC regional office is set to be built in Portsmouth, creating around 350 new jobs. Stephen Morgan MP, representing Portsmouth South, has welcomed the decision, stating that it demonstrates the Government’s commitment to delivering for the city. The office will be located at ‘No 1 The Goodsyard’ near Portsmouth and Southsea railway station, on the former Matalan car park. The development is part of the plan to support the regeneration of the city centre. The four-storey building will provide 5,400 sqm of internal space and is expected to be ready for HMRC to move into by late 2027.
Prime buyers return to London despite tax uncertainty
Buyers have returned to prime London properties after the election despite uncertainty around the Government’s position on tax changes, new data shows. Sales in July were at their highest on a year-to-date monthly basis, although the average price of a property fell by 5% on an annual basis, according to LonRes. The number of properties under offer also increased in July, up 23.6% compared to the same month last year. Nick Gregori, head of research at LonRes, said that given the high level of equity most buyers in prime London have, the market is a little more insulated from rate changes than the general housing market. However, upcoming changes to tax laws such as VAT taxes on private schools and tightening non-dom rules could dampen sentiment. Buyers could also be squeezed further if changes are made to pension tax relief, inheritance tax, or capital gains tax. The stock of available homes for sale continues to rise, with 11.1% more properties on the market across prime London at the end of July than a year earlier. The stock of available rental properties is also recovering gradually, with 11.4% more homes on the market across prime London at the end of July than a year earlier.
Some 60% of landlords increased rents this year
About 60% of landlords increased the rent on at least one of their properties over the past year, according to a survey by the TDS Charitable Foundation. The primary reasons for the rent increases were rising costs and fees, aligning with local market rents, and increases in mortgage costs. The report highlights the affordability challenges faced by both landlords and tenants. Average private rents across the UK increased by 8.6% in the year to July, according to the Office for National Statistics. The supply of rental homes has not significantly improved, despite more landlords buying properties than selling them. Dr Jennifer Harris, head of policy and research at TDS Group, stressed the need for the Government to boost the choice renters have in finding suitable homes. “Without this, tenants will struggle holding rogue and criminal landlords to account given the shortage of alternative housing to move to.”
Latest Insolvencies
Petitions to wind up (Companies) – RETAIL PROPERTIES CORP LIMITED
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Appointment of Liquidators – F.GUTKIND & COMPANY,LIMITED
Appointment of Liquidators – BLACK’S EUROPEAN BUSINESS SERVICE LIMITED
Appointment of Liquidators – ACORN SW. LTD
Appointment of Liquidators – HEYWOOD IT CONSULTANTS LIMITED
Appointment of Liquidators – WHEATFIELD (UK) LIMITED
Appointment of Liquidators – KAS KONSULTANCY LTD
Appointment of Liquidators – LASERFORM INTERNATIONAL LIMITED
Appointment of Liquidators – KNOWLE GATE HOLDINGS LIMITED
Appointment of Liquidators – WILL A JONES LTD
Appointment of Liquidators – FINROB LIMITED
Appointment of Liquidators – GROSSFIELD (FINANCIAL SERVICES) LIMITED
Appointment of Liquidators – KELLY OF CULTS LIMITED
Petitions to wind up (Companies) – PEARTREE (FRASERBURGH) LIMITED
Petitions to wind up (Companies) – HCS CONSTRUCTION LIMITED
Petitions to wind up (Companies) – DENNY GLASGOW LTD
Appointment of Liquidators – A PARTRIDGE COOK LTD
Petitions to wind up (Companies) – VEEVERS & VEEVERS JEWELLERY LIMITED
Winding up Order (Companies) – ANNABELLE DESIGN LIMITED
Appointment of Liquidators – TALK EMERGENCY LIMITED
Appointment of Liquidators – EXPRESSWAY COURIERS LIMITED
Petitions to wind up (Companies) – GOLDEN NESTT LTD
Appointment of Liquidators – DJI TRANSACTION SUPPORT LIMITED
Appointment of Liquidators – CRABTREE LEASING LIMITED
Petitions to wind up (Companies) – IZUMI RESTAURANTS (BRENTWOOD) LIMITED
Petitions to wind up (Companies) – LEDBRIDGE CONSULTANTS LIMITED
Petitions to wind up (Companies) – MONTAGUE PARTNERS LTD
Petitions to wind up (Companies) – SOKA BLACKMORE LIMITED
Petitions to wind up (Companies) – LIFESTYLE DIMENSIONS LTD
Petitions to wind up (Companies) – CEAS KENT LTD
Petitions to wind up (Companies) – QUOTO LIMITED
Appointment of Liquidators – IPSX GROUP LIMITED
Appointment of Liquidators – NUMTIDE LTD
Appointment of Liquidators – ORCHARD VIEW LEEDS LIMITED
Appointment of Liquidators – GUIDEVISION UK LTD
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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!
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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!
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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.