Business news 17 October 2024
Global insolvencies predicted to rise. Inflation tumbles to 1.7%. Labour’s national insurance hike backlash. More budget prediction reaction, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Global insolvencies predicted to rise
Allianz Trade has forecast a rise in global business insolvencies. Allianz Trade has revised its projections for global business insolvencies, forecasting an 11% rise in 2024, followed by an additional 2% increase in 2025, according to its latest Global Insolvency Report. The company expects insolvency numbers to remain elevated into 2026, reflecting ongoing challenges faced by businesses worldwide amid weak economic demand, geopolitical risks, and difficult financing conditions.
However, in the UK they predict insolvencies will drop by 6% in 2025 and a further fall in 2026.
Inflation tumbles to 1.7%
UK inflation has decreased to 1.7% in September, falling below the Bank of England’s 2% target for the first time since April 2021. This decline is primarily attributed to a 10.4% drop in petrol prices and reduced airfares due to post-summer sales. However, food and drink inflation has risen, with notable increases in prices for milk, cheese, eggs, and fruit. Darren Jones, Chief Secretary to the Treasury, remarked: “It will be welcome news for millions of families that inflation is below 2%.” The lower inflation rate may lead to a pause or reduction in interest rates, potentially easing mortgage payments. Gora Suri, economist at PwC, said: “This suggests we are very much at the end of the disinflationary process, which will be welcome news for policymakers and of course, consumers and businesses
Labour’s national insurance hike backlash
Labour’s proposal to increase national insurance (NI) contributions has drawn sharp criticism from business leaders, who warn it could lead to job losses and wage cuts. Anna Leach, chief economist at the Institute of Directors, stated: “Increasing employers’ national insurance would be a bad idea,” highlighting that such a hike would increase business costs without considering profitability. Critics liken the move to the controversial poll tax of the 1990s, which sparked riots and contributed to the fall of Margaret Thatcher’s government.
Record competition for graduate jobs
Competition for graduate jobs has reached unprecedented levels, with the Institute of Student Employers (ISE) reporting an average of 140 applications per role. In total, over 1m applications were submitted for nearly 17,000 graduate vacancies in 2023-24, marking a 59% increase from the previous year. Stephen Isherwood, joint chief executive of ISE, stated: “As AI makes it easier to apply for jobs, volumes are pushed up and quality down, creating more rejections.” Visa rule changes have further strained the market for international students – HSBC, Deloitte and KPMG have all reportedly withdrawn offers to foreign graduates this year due to the changes.
Tax hikes threaten High Street survival
High street businesses are bracing for a significant tax increase next April, with industry bodies warning of a four-fold rise due to inflation-linked tax adjustments and the end of business rate relief. According to Altus Group, around 250,000 premises will see their business rates surge by 300%, with the average shop’s bill jumping from £3,589 to £14,599. Kris Hamer, Director of Insight at the British Retail Consortium, said: “For too long, the gradual increases to business rates have been contributing to the decline of our high streets.” The total cost of ending the relief is estimated at £2.4bn, exacerbating the financial strain on the retail sector, which already faces high tax burdens. Labour has promised to reform business rates, but details are pending until the upcoming budget.
Markets
Yesterday, UK indices cheered strong CPI data showing a drop to 1.7% which outperformed the 1.9% forecast. Whilst commentators cautioned that energy price rises would see CPI move up by the end of 2024, both gilts and equities were positively impacted with the FTSE 100 closing up 0.97% at 8329.07
Over in Europe the Euro Stoxx 50 closed down 0.77% at 4908.71. Overnight in the US the S&P 500 rose 0.47% to 5842.47 and the NASDAQ rose 0.28% to 18367.08.
This morning on currencies, the pound is currently worth $1.298 and €1.196. On Commodities, Oil (Brent) is at $74.4 & Gold is at $2680. On the stock markets, the FTSE 100 is currently up 0.24% at 8350 and the Eurostoxx 50 is up 0.82% at 4949.
Budget jitters sink investor confidence
Investor confidence in the UK has significantly declined, dropping over 11% in the past month, as concerns mount over Chancellor Rachel Reeves’s upcoming Budget, set to be announced on October 30. Victoria Hasler, head of fund research at Hargreaves Lansdown, stated: “The looming Budget… seems to have spooked investors,” highlighting worries about potential cuts to capital gains tax and pension reforms. The sentiment surrounding UK economic growth has also deteriorated, with confidence plummeting nearly 20%. Hasler noted that initial optimism regarding the new government has faded, leaving investors anxious until the Budget details are revealed.
Fintech Founders threaten to flee UK
Prominent UK fintech founders have expressed concerns over potential hikes in capital gains tax, warning that such changes could drive them to relocate. In a letter to Rachel Reeves, the group Fintech Founders stated that “43% of founders reported they were considering relocating out of the country.” The letter, signed by 66 industry leaders, stressed the importance of maintaining a favourable tax regime to encourage entrepreneurship and sustain the UK’s business ecosystem. The current capital gains tax rate ranges from 20% to 28%, with Labour reportedly considering increases to between 33% and 39%. The founders argue that “ensuring conditions on the ground are such that they encourage the founding and scaling-up of British businesses is crucial to getting the UK economy back on track.”
Middle-class families join wealthy in quitting the UK
The Daily Telegraph reports that it’s not just the super-wealthy fleeing Britain ahead of expected tax hikes in Labour’s upcoming Budget. The paper talks to middle class couples who are looking to move abroad as rising costs eat into their earnings and they face stings from VAT on private school fees and hikes in CGT and IHT. It’s not just the tax burden though. “The quality of life in the UK just isn’t there anymore,” one couple said. “Things don’t work and it all feels a bit downhearted.” High levels of crime are also an issue. Property expert Charles McDowell said Britain is now facing a brain drain the likes of which we haven’t seen since the 1970s.
New tax regime could stop non-dom exodus
The departure of non-doms from the UK could be halted if the Government introduced a Tiered Tax Regime (TTR) taxing net wealth at a flat rate. According to a study by Oxford Economics, the TTR has strong backing from the non-dom community, with 73% of respondents indicating they would remain in the UK longer if the regime were implemented. The TTR would charge non-doms between £200,000 and £2m annually, depending on their net assets, while protecting foreign assets from inheritance tax and exempting them from tax on foreign income for up to 15 years. Leslie MacLeod Miller, chief executive of Foreign Investors for Britain, stated: “The Tiered Tax Regime offers a lifeline to the UK economy by incentivising non-dom investors and entrepreneurs to remain in the UK longer.” However, some experts, like Arun Advani from the University of Warwick, argue that a flat tax starting at £200,000 is too much for most non-doms, who are “here to work, bringing their skills and paying substantial tax.”
Ryanair threatens flight cuts over taxes
Ryanair has issued a stark warning regarding potential cuts to hundreds of UK flights if Rachel Reeves increases aviation taxes in her upcoming Budget. Chief executive Michael O’Leary stated that a rise in air passenger duty (APD) would significantly impact customer demand and threaten the viability of certain routes. He said: “If they raise APD again on domestic flights then there will be a cut in capacity, no question.”
Taiwan Semiconductor
Taiwan Semiconductor raised its revenue guidance to 30% growth up from mid 20% rise after better than forecast Q3 results.
House prices rise for sixth month
In August, the average UK house price rose by 2.8% to £293,000, marking the sixth consecutive month of annual increases, according to the Office for National Statistics (ONS). This growth follows eight months of declines, indicating a resilient housing market as we approach the end of 2024. Malcolm Webb from Legal & General Surveying Services explained: “These latest house price figures show the housing market is holding strong.” Regional variations were noted, with the North West experiencing the highest inflation at 4.6%, while the South West saw the lowest at 0.8%. Additionally, the average private rent in Britain increased by 8.4% to £1,295 per month. Experts suggest that easing mortgage costs and potential cuts to the Bank of England’s base rate could further stimulate market activity.
Rental prices soar as landlords exit
The rental market in the UK is experiencing unprecedented price increases, with average rents in London now at £2,694 per month, a rise of 2.5% from last year. Nationwide, rents have reached £1,344 per month, up 5.2%. This surge is attributed to a shrinking rental market, as many landlords are selling their properties due to increased regulations and potential tax changes. Tim Bannister, a property expert at Rightmove, stated, “We are seeing some landlords choosing to exit the market with potential tax changes and stricter EPC regulations as additional factors in landlords’ decision-making.” The upcoming Budget on October 30 is seen as a crucial opportunity for the Chancellor to provide tax relief to landlords to stabilise the market and alleviate affordability pressures for tenants.
Latest Insolvencies
Appointment of Administrator – JOHN WILKINS (MOTOR ENGINEERS) LIMITED
Appointment of Administrator – CB PRINTFORCE UK LIMITED
Appointment of Administrator – SEVENTYNINE LIGHTING LIMITED
Appointment of Administrator – THUNDER ROAD MOTORCYCLES LTD
Appointment of Liquidators – THE GROSVENOR (CARDIGAN) LIMITED
Appointment of Liquidators – WEALDEN MEDICAL LTD
Appointment of Liquidators – CRICKET HILL FINANCIAL PLANNING LIMITED
Appointment of Liquidators – CERBYDAU MASNACHOL CIBYN CYF
Appointment of Liquidators – MEDIMET LTD
Appointment of Liquidators – GASDOC MEDICAL SERVICES LIMITED
Appointment of Liquidators – GRANT HOMES LIMITED
Appointment of Liquidators – MJM ANALYSIS LIMITED
Appointment of Liquidators – METEOR DEVELOPMENTS HOLDINGS LIMITED
Appointment of Liquidators – TCMS (KENT) LIMITED
Appointment of Liquidators – VISON ENTERPRISES LIMITED
Appointment of Liquidators – ANDREW THROWER LTD
Appointment of Liquidators – SPRINGERFIELD LIMITED
Appointment of Liquidators – GECHO GROUP LTD
Appointment of Liquidators – ODEY WEALTH MANAGEMENT (UK) LIMITED
Appointment of Liquidators – VIVADUM HOLDINGS LTD
Appointment of Liquidators – CROMWELL VENTURES LIMITED
Appointment of Liquidators – CROWTHORNE HEATING CO.LIMITED
Appointment of Liquidators – ENGAGE CONSULT + MANAGE LIMITED
Appointment of Liquidators – JGK CREATIVE LTD.
Appointment of Liquidators – LOGICPRICE LIMITED
Appointment of Liquidators – BOB PARRATT COUNTRYWEAR LIMITED
Appointment of Liquidators – KAVANAGH PEARSON LTD
Appointment of Liquidators – COUNTY ENTERPRISES (HOLDINGS) LIMITED
Appointment of Liquidators – ANALOG CONSULTING LTD
Appointment of Liquidators – DJW MEDICAL LIMITED
Appointment of Liquidators – QUANTICIPATE LTD
Appointment of Liquidators – MODAICO LIMITED
Appointment of Liquidators – GRACON CAPITAL LIMITED
Appointment of Liquidators – JACM CONSULTANTS LIMITED
Appointment of Liquidators – EDGE AHEAD LIMITED
Appointment of Liquidators – HD CONSTRUCTION AND PROFESSIONAL SERVICES LTD
Appointment of Liquidators – DE VERE GLOBAL PARTNERS 1 LIMITED
Appointment of Liquidators – ANDREW J FOX LIMITED
Appointment of Liquidators – JEMPSONS COMMERCIALS LIMITED
Appointment of Liquidators – MICK COOK LIMITED
Appointment of Liquidators – HYPERION HOMES DEVELOPMENTS LIMITED
Appointment of Liquidators – AEM CONSULTANCY LIMITED
Appointment of Liquidators – CAPITAL SPINE LIMITED
Appointment of Liquidators – JEREMY SAWYER LIMITED
Appointment of Liquidators – BRUCE WALLACE ASSOCIATES LIMITED
Appointment of Liquidators – HILLFOOT ADVISORY SERVICES LIMITED
Appointment of Liquidators – ESPRESSO CODING LTD
Appointment of Liquidators – 43P9 LIMITED
Appointment of Liquidators – NIMLBR SOLUTIONS LIMITED
Appointment of Liquidators – ARLINGTON PROPERTY CONSULTANTS LIMITED
Appointment of Liquidators – PRISM CONSULTANCY SERVICES LTD
Appointment of Liquidators – J.R. MARRIOTT (COLLINGHAM) LIMITED
Appointment of Liquidators – MRLD LTD
Appointment of Liquidators – PETER ROWLAND CONSTRUCTION LIMITED
Appointment of Liquidators – G FARR CONSULTING LTD
Appointment of Liquidators – TAYLOR 2020 LIMITED
Appointment of Liquidators – GOOSE VFX LTD
Appointment of Liquidators – FLEXMORE INDUSTRIAL LIMITED
Petitions to wind up (Companies) – ELAPH MEDIA PUBLICATIONS LIMITED
Winding up Order (Companies) – STASKE (LONDON) LIMITED
Winding up Order (Companies) – BELLSTAR MANAGEMENT LIMITED
Appointment of Liquidators – LUHMANN DUBLIN 2 LIMITED
Appointment of Liquidators – PERRY’S TYRE AND EXHAUST SERVICES LIMITED
Appointment of Liquidators – BARR AGRICULTURE LIMITED
Appointment of Liquidators – JUNIPER FINANCIAL MANAGEMENT LIMITED
Appointment of Liquidators – SPECIALITY SOFTWARE LIMITED
Appointment of Liquidators – CENTRESTAGE ADVISORY LIMITED
Appointment of Liquidators – TEOK TECH LIMITED
Petitions to wind up (Companies) – ACRE INVEST (ST ALBANS) LIMITED
Petitions to wind up (Companies) – INDUSTRISAFE LTD
Petitions to wind up (Companies) – F & J WHOLESALE LTD
Petitions to wind up (Companies) – N E C CORPORATE HOLDINGS LTD
Appointment of Liquidators – SECOND HUNTWELL PROPERTY COMPANY LIMITED
Appointment of Liquidators – SUMMERSTOCK LIMITED
Appointment of Liquidators – EUROPEAN MUSIC COMPANY LIMITED
Appointment of Liquidators – TEAM CAMPBELL LIMITED
Appointment of Liquidators – BLUEJAY DEVELOPMENTS (SOUTH WEST) LIMITED
Appointment of Liquidators – THE SEARCH CONSULTANT LIMITED
Appointment of Liquidators – ST. GEORGE’S CATARACT SERVICE LTD
Appointment of Liquidators – PRECAST HOLDINGS LIMITED
Appointment of Liquidators – EASTBOURNE EYE CLINIC LIMITED
Appointment of Liquidators – BLUE SHEEP HOLDINGS LIMITED
Appointment of Liquidators – THEWUU LTD
Appointment of Liquidators – MONKFISH CONSULTING LIMITED
Appointment of Liquidators – IPSO MANAGEMENT LIMITED
Appointment of Liquidators – CLIMATECHANGEMATTERS LIMITED
Appointment of Liquidators – VISION MEDIA ONLINE LIMITED
Appointment of Liquidators – R J GATENBY LIMITED
Appointment of Liquidators – SUITE HUTS LIMITED
Appointment of Liquidators – SIXTY PLUS LTD
Appointment of Liquidators – GLOBALCAST LIMITED
Appointment of Liquidators – VASCULAR CONSULTING LIMITED
Appointment of Liquidators – AGILE AGENT LTD
Appointment of Liquidators – RADLEY MEDICAL SERVICES LTD.
Appointment of Liquidators – IJC HEALTH LIMITED
Appointment of Administrator – PLUMBS LIMITED
Appointment of Liquidators – MAJN LTD
Appointment of Liquidators – LTT CONSULTANCY LIMITED
Appointment of Liquidators – STEPHANIE BURRELL CONSULTING LIMITED
Appointment of Liquidators – THE LYNDEN COURT HOTEL 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.