Business news 17 September 2024
Brexit is stifling exports and imports. Flexible working plans, fiscal rules, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Brexit is stifling exports and imports
Economists at Aston University have estimated that annual exports to the EU are 17% lower and imports 23% behind where they would have been if Brexit had not occurred.
The red tape added to trade because of Brexit for British businesses has caused goods trade between the UK and EU to slump and the problem is getting worse, a study has warned.
Many smaller UK producers have given up exporting small amounts to the EU after facing more rules and regulations, a report by Aston University Business School has found.
Between 2021 and 2023, the study calculated that UK goods exports to the EU were down 27% and imported goods were 32% lower than where they would have been had Brexit not happened.
While increased regulations on trade do give consumers some protections, they also bring increasing difficulties for traders, especially the small ones, causing many to just give up on trade with Europe.
Reynolds defends flexible working plans
Labour is set to introduce a comprehensive employment rights package aimed at enhancing worker protections, including giving employees the right to work from home. Jonathan Reynolds, the Secretary of State for Business and Trade, has labelled previous government policies on flexible working as “bizarre,” asserting that the Tories declared “war” on remote work. The new legislation will focus on safeguarding employees from unfair dismissal, banning zero-hours contracts, and establishing a default right to flexible working. But Reynolds also pledged to end the “culture of presenteeism” asserting that flexible working and a right to switch off does contribute to productivity, staff resilience, and their ability to stay working for an employer.
Economists urge fiscal rule change to allow more investment
Eight prominent economists, including Lord Gus O’Donnell and Professor Mariana Mazzucato, have urged Chancellor Rachel Reeves to revise the UK’s fiscal rules in the upcoming budget to prevent further cuts to public investment. In a letter published in the Financial Times, they warned that ongoing under-investment has created a “vicious circle of stagnation and decline” in the UK economy. They stated: “We do not see how the planned ‘decade of national renewal’ can take place if these cuts are delivered.” The economists argue that the current debt rules create an “inbuilt bias” against investment, necessitating a shift towards a pro-investment fiscal framework to ensure long-term sustainability.
Markets
Yesterday,London was little moved but retailers enjoyed a strong session today as hopes rose for lower global interest rates ahead of the Federal Reserve meeting this week. The FTSE 100 closed up 0.06% at 8278.44 and the Euro Stoxx 50 closed down 0.34% at 4827.63. Overnight in the US the S&P 500 rose 0.13% to 563.09 and the NASDAQ fell 0.52% to 17592.13. As markets held their breath ahead of key retail data and the FED interest rate decision but the the NASDAQ was hit by a dip in Apple shares over worries about demand for the new iPhone.
Intel shares jumped more than 8% in late trading after the company said it will make custom AI chips for Amazon.com’s AWS. Amazon’s CEO Andy Jassy meanwhile is looking to cut costs, cutting management layers and ordering employees to return to the office five days a week beginning in January. Elsewhere, Microsoft announced $60 billion in stock-buybacks and it also raised dividend by 10%.
Elsewhere, Boeing, said it would freeze its hiring, stop ordering parts from some suppliers and consider implementing furloughs to save cash following three days of striking with over 30,000 employees on the picket line.
This morning on currencies, the pound is currently worth $1.322 and €1.187. On Commodities, Oil (Brent) is at $72.7 & Gold is at $2580. On the stock markets, the FTSE 100 is currently up 0.75% at 8340.5 and the Eurostoxx 50 is up .43% at 4849.
Businesses struggling under Scotland’s tax regime
Businesses in Scotland are grappling with the challenges posed by the highest tax rates in the UK, as highlighted in the Fraser of Allander Institute’s latest report. The survey of 300 firms revealed that nearly two-thirds have been affected by the Scottish Government’s income tax policy, with 17% reporting a ‘significant’ impact on operations. Professor Mairi Spowage stated: “These results shed light into the ongoing debate on how tax policies are affecting businesses and the broader Scottish economy.” Many firms are struggling to attract and retain talent, leading to increased wage demands and a perception of competitive disadvantage compared to the rest of the UK. The report also noted that the income tax gap has widened, with individuals earning £40,000 paying £111 more in Scotland than elsewhere.
Ovo
Energy supplier Ovo has been ordered to pay £2.4 million to customers after the regulator found it was not handling complaints correctly. The average compensation will be £271.
Harland & Wolff enters administration
Harland & Wolff has entered administration, raising concerns for over 400 jobs at its shipyards. The company, known for building the Titanic, announced that it is “insolvent on a balance sheet basis” following a strategic review initiated in July. Immediate redundancies of 50 to 60 are anticipated. The company, which employs over 1,000 workers across four UK sites, has struggled to secure a £200m loan guarantee from the Government, leading to concerns that British warships may need to be built abroad for the first time in Royal Navy history.
Carpetright customers will not be refunded
Carpetright’s recent administration has left approximately 21,000 customers owed nearly £8m for unfulfilled orders, with the final amount likely to be “considerably” higher, according to the directors’ statement. The flooring chain collapsed in July, resulting in the closure of 273 stores and 1,500 job losses, with its remaining stores acquired by Tapi. The total debt owed to unsecured creditors has reached £373m, leaving many out of pocket.
China
China Retail Sales, industrial production and urban investment in August all grew slower than expected, according to National Bureau of Statistics data released Saturday. Retail sales rose by 2.1% in August from a year ago, missing expectations of 2.5% growth among economists polled by Reuters. That was also slower than the 2.7% increase in July. Industrial production rose by 4.5% in August from a year ago, lagging the 4.8% growth forecast by Reuters. That also marked a slowdown from a 5.1% rise in July.
Failure to invest in women costing $10trn a year
According to the latest Gender Snapshot report from UN Women, governments are neglecting investments in women and girls, leading to significant economic losses. The report highlights that failing to adequately educate young women could cost the global economy $10trn annually, while low- and middle-income countries risk losing $500bn over the next five years if the gender gap in internet access is not addressed. Papa Seck, head of UN Women’s research and data section, said: “The cost of not achieving gender equality is just way too high but at the same time, the potential returns of doing so are also too high to ignore for societies.”
Latest Insolvencies
Appointment of Administrator – BLENHEIM RENEWABLES LIMITED
Appointment of Liquidators – C. SCOTT CONSULTANTS LTD.
Petitions to wind up (Companies) – CANNON CATERING LIMITED
Appointment of Liquidators – CALDERA ADVISORY LIMITED
Appointment of Liquidators – GRESHAM RECEIVABLES (NO. 15) UK LIMITED
Appointment of Liquidators – MICHAEL BROUGHTON PROPERTIES LIMITED
Appointment of Liquidators – STREETDRONE LIMITED
Appointment of Liquidators – P COLLINS SOLUTIONS LIMITED
Appointment of Liquidators – JPLAN SERVICES LTD
Appointment of Liquidators – BUILDING SERVICES & DESIGN ASSOCIATES LIMITED
Appointment of Liquidators – LIONEL FRUMKIN LIMITED
Appointment of Liquidators – EAMES LEGAL CONSULTING LIMITED
Appointment of Liquidators – ZEDELL LLP
Appointment of Liquidators – FLETTONS MEDICAL LTD
Appointment of Liquidators – CHIANTI CREATIONS LIMITED
Appointment of Liquidators – L.M.C. FREIGHT SERVICES LIMITED
Appointment of Liquidators – AGILE STATE LIMITED
Appointment of Liquidators – RESAS CONSULTANCY LTD
Appointment of Liquidators – LOXLEY FUNDING LIMITED
Appointment of Liquidators – SOUTHERNS OFFICE INTERIORS LTD.
Appointment of Liquidators – JTC MEDICAL LIMITED
Appointment of Liquidators – DELTEX CONSULTING LIMITED
Appointment of Administrator – CELLEN BIOTECH LIMITED
Appointment of Liquidators – B.I WELDING SERVICES LTD
Appointment of Administrator – CONTRACT FLOORING & INTERIORS (C.F.I.) LTD
Appointment of Liquidators – GRESHAM RECEIVABLES (NO.16) UK LIMITED
Appointment of Liquidators – A2B ASSESSMENTS LTD
Appointment of Liquidators – LATERAL PROPERTY DEVELOPMENTS 2 LIMITED
Appointment of Liquidators – LONDON AIRPORTS 1992 LIMITED
Appointment of Administrator – IASO LTD
Appointment of Liquidators – KIWI ULA LIMITED
Appointment of Administrator – CELLEN LIFE SCIENCES LIMITED
Appointment of Liquidators – CHINE MARINE LIMITED
Appointment of Administrator – BRICK LIVE INTERNATIONAL LIMITED
Appointment of Liquidators – CDB (U.K.) LIMITED
Appointment of Administrator – MANIGO SERVICES LTD
Appointment of Liquidators – SPECIAL CONTINGENCY RISKS LIMITED
Petitions to wind up (Companies) – TOKAR 63 LIMITED
Appointment of Liquidators – WALDEN CONSULTANTS LIMITED
Appointment of Liquidators – RIPON TECHNICAL SERVICES LIMITED
Appointment of Liquidators – PHILLOIS LIMITED
Petitions to wind up (Companies) – RT IT LTD
Petitions to wind up (Companies) – AK&H TELECOMS LTD
Appointment of Liquidators – A.H. HARRIS (BUTCHERS) LIMITED
Appointment of Liquidators – ETS F MANDY SPRL LIMITED
Appointment of Liquidators – STANCLIFFE HOMES (CHESTNUT) LTD
Appointment of Liquidators – ASPECT TRAFFIC SOLUTIONS LTD
Appointment of Liquidators – DH CONSULTANCY SERVICES LIMITED
Petitions to wind up (Companies) – RED VALLEY LIMITED
Appointment of Liquidators – DSG REFURBISHMENT LIMITED
Appointment of Liquidators – CUMBERLAND PLACE (GENERAL PARTNER) LIMITED
Appointment of Liquidators – WOLDS PROPERTIES LIMITED
Appointment of Liquidators – JIM MCLEARIE HEALTH & SAFETY LTD
Appointment of Liquidators – G. & J. MANN LIMITED
Petitions to wind up (Companies) – BLACK SEA INTERNATIONAL LTD
Petitions to wind up (Companies) – BASE-FLOW LTD
Appointment of Liquidators – LAA GLOBAL CAPITAL LIMITED
Winding up Order (Companies) – PRESTON GUILD HALL LIMITED
Appointment of Liquidators – PRAESIDIUM SERVICES LIMITED
Appointment of Liquidators – MAKE CHANGES NOW LIMITED
Appointment of Liquidators – PREPHERRED LTD
Appointment of Liquidators – KCA DEUTAG DRILLING SERVICES (UK) LIMITED
Appointment of Liquidators – BOATMAN FINANCIAL LTD
Petitions to wind up (Companies) – I GAS ENGINEERS PLUMBING & HEATING LTD
Appointment of Liquidators – A LITTLE DISTRACTION LTD
Appointment of Liquidators – DISCOUNT TILE CENTRE LIMITED
Appointment of Liquidators – WATSON WYATT INTERNATIONAL LIMITED
Appointment of Liquidators – WATSON WYATT HOLDINGS LIMITED
Petitions to wind up (Companies) – EUROPE NETWORK LIMITED
Appointment of Liquidators – PAUL J MELODY 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.