Business news 19 April 2024
Consumer confidence reaches highest level in two years. Retail Sales flat. GPs to lose the power to hand out sick notes. SFO outlines new strategy. A new pension tax raid & more business news that we thought would interest our members.
James Salmon, Operations Director.
Consumer confidence reaches highest level in two years
Consumer confidence rose to its highest level in two years in the last quarter, boosted by a sharp improvement in sentiment among younger people. Deloitte’s consumer confidence index rose to a net balance of -11% in Q1, reflecting a sustained decline in the rate of inflation and easing pressure on consumer finances. Ian Stewart, chief economist at Deloitte, said that rising unemployment and a slowdown in demand for workers had been cushioned by positive developments on real incomes. “The revival in consumer confidence speaks to a wider story of an economy that has turned the corner,” he added.
Retail Sales flat
Retail Sales stayed flat in March, undershooting consensus expectations of 0.3% growth. Year on year, they added 0.8% after falling 0.3% in February.
Commenting on today’s data print, ONS senior statistician Heather Bovill said: “Retail sales registered no growth in March. Hardware stores, furniture shops, petrol stations and clothing stores all reported a rise in sales. “However, these gains were offset by falling food sales and in department stores where retailers say higher prices hit trading.
However, it’s hard not to see food and drink sales rebound with May bank holidays and the men’s football Euros tournament coming up in June!
GPs to lose the power to hand out sick notes
Prime Minister Rishi Sunak has vowed to end Britain’s “sick-note culture” amid concerns that over-medicalising common anxieties is driving a rise in the number of people off work with mental health problems. GPs face being stripped of the right to issue sick notes, as the Prime Minister says doctors are too readily writing people off as unfit for work. Specialist teams linked to the benefits system will instead assess the sick and decide how best to keep them in work.
SFO outlines new strategy
The Serious Fraud Office (SFO) has announced its new strategy to combat serious fraud, bribery, and corruption. The strategy focuses on prevention, the use of AI, greater covert intelligence, and whistleblowers. The SFO aims to be a proactive and authoritative player in the global and domestic justice system. Plans include a pilot program to cut financial crimes at the source, increasing incentives for corporate whistleblowers, and implementing a pre-trial disclosure system. However, some senior lawyers have questioned the strategy. Louise Hodges at Kingsley Napley said: “A big question mark for me is which type of organisation the SFO sees as its target. So far the investigations opened have involved relatively small and lesser-known businesses, some already in administration and a far cry from the global giants and High Street names that the SFO historically had in its sights.”
Chancellor urged to launch tax raid on unspent pension pots
The Institute for Fiscal Studies (IFS) has said Jeremy Hunt could raise £1bn to £2bn in the coming decades by ending the tax-free passing on of unspent pension funds. The Chancellor was also urged to scrap exemptions for the passing on of agricultural land. David Sturrock, senior research economist, said: “Inheritance tax is littered with special reliefs and exemptions which make the tax unfair. Rather than gradually carving out more and more assets from the tax, the Government should take steps to reduce or eliminate some of the major exemptions in the system.” The IFS also argues that there is no rationale for relief on AIM shares as they are held similarly to regular shares. The removal of business relief for AIM shares could potentially raise around £1.1bn in the current tax year, rising to £1.6bn in 2029–30.
Stonegate issues warning over debt
Almost 450 pubs in London, including popular chains like Slug and Lettuce and All Bar One, are facing closure as Stonegate Pub Company, one of the UK’s largest hospitality groups, warns about its £2.2bn debt pile. The company, owned by private equity group TDR Capital, has raised concerns about its ability to refinance the debt by its July 2025 deadline. The GMB Union has flagged debt concerns since January, warning that it could put 19,000 jobs at risk.
Renters Reform Bill is bad for tenants
Eviction notices have shot up to hit a five-year high as a ban on no-fault evictions looms via the Government’s Renters Reform Bill. The number of tenants being evicted has risen by more than a third since 2022, reaching 2,671 in the three months to December. Marco Longhi, Tory MP for Dudley North and a landlord himself, commented: “I have consistently said that, whilst well-meaning, the Renters Reform Bill is bad for tenants.” He explained: “At a time when there is already insufficient supply to meet demand for rented property, this legislation is reducing the number of properties available for rent because landlords are increasingly finding it not worth their while. The consequence of lower supply and higher demand is creating very high rental prices, and rather than supporting really tough market conditions for tenants the Bill is actually making it worse for them.”
Badenoch tells regulators to scrap company equality quotas
The Business Secretary, Kemi Badenoch, who is also the Women and Equalities minister, has called on financial services regulators to scrap plans to set diversity targets for finance companies. Badenoch argues they would amount to regulatory over-reach and place an unnecessary additional burden on businesses. The Financial Conduct Authority and the Prudential Regulation Authority have consulted on a requirement for companies to disclose demographic data, including on age, sexual orientation, religion and ethnicity and set diversity targets to address underrepresentation. They would be required to publish their progress. “The benefits claimed are speculative, but the compliance costs will be real,” Badenoch said in a speech at TheCityUK. “There are significant concerns about likely indirect effects, such as increased barriers to entry and expansion, and the resulting impacts on innovation, competition and choice. At a time when government is focused on driving economic growth through smarter regulation, the FCA should not be adding regulatory burdens which go well beyond the legislative framework in the Equality Act.”
Markets
Global stock markets remained edgy after Isreal attacked Iran and an escalation of the tensions in the Middle East sent stocks tumbling around the world and fueled demand for safe haven assets such as bonds, gold and the US dollar.
The FTSE 100 is down 0.57%, the Stoxx Europe 50 0.76%. Futures on the S&P 500 and Nasdaq 100 are down 0.5% and 0.7% respectively.
These moves follow a week of losses after hawkish messages from the US FED and expectations of Isreali retaliation.
Oil Prices jumped $3 a barrel in reaction to the reports that Israeli missiles had struck a site in Iran.
Coventry Co Op
Coventry Building Society is near to agreement to buy Co-Operative Bank for £780m in cash according to news sources.
Natwest
Norway’s sovereign wealth fund is backing NatWest’s plan to buy back more shares from the UK government. The bank is proposing at its AGM that shareholders grant it authority to buy back up to 15% of its shares from the UK government over a 12 month period, up from its current ceiling of 5% p.a.
Unilever
Unilever plans to abandon or water down many of its environmental and social pledges as it faces growing criticism from investors, consumers and politicians against firm’s pursuit of non-financial environmental and social objectives.
Netflix
Netflix credited its crackdown on password sharing as one of the reasons profits surged ahead in its latest quarter. The streaming giant added 9.3 million new subscribers in the three months to the end of March compared to market estimates for five million and a 1.8 million improvement in the same period a year ago. However, the group also said that from next year it will stop reporting subscriber numbers, stating that it was just one component of its growth and in future investors should focus on profits. Revenues in the quarter rose by almost 15% to $9.37 billion while profits rose to $2.61 billion from $1.47 billion a year ago
EV’s
European Auto Manufacturers Association said sales of battery electric cars fell 11.3% to 134,397 units in March, with EV vehicles making up 13% of sales from 13.9%
Nationalisation would cost some Thames Water creditors 40%
The Government’s contingency plans to nationalise Thames Water, dubbed Project Timber, would see the bulk of the company’s £15.6bn debt added to the public purse as part of a taxpayer-backed bailout, the Guardian reports. Plans being overseen by the Department for Environment, Food and Rural Affairs suggest some lenders could lose up to 40% of their money – category B bondholders, who hold about £1.6bn of the company’s debt, would lose 35-40% of their money, while category A bondholders, who are owed about £13bn, would lose 5-10%. Shareholders would have their entire investment wiped out. Nationalisation would be deeply embarrassing for the Government, but Whitehall and the regulator, Ofwat, remain optimistic that it may be avoided, sources said.
Body Shop buyer failed to refinance HSBC loan
Documents released by Body Shop administrators FRP Advisory show the retailer collapsed after Aurelius, which acquired the retailer in November, failed to act on a decision by HSBC to withdraw a line of credit from the Body Shop’s parent company, Natura. HSBC moved to revise its relationship with Natura when it got wind of the disposal and gave the chain at least 18 months’ notice of its decision to end lending. However, Aurelius failed to act forcing the Body Shop to file for insolvency. A source close to Aurelius claimed it had not been made aware of HSBC’s decision to cut ties with the Body Shop.
Latest Insolvencies
Petitions to wind up (Companies) – PARKLAND HOUSE LIMITED
Petitions to wind up (Companies) – UWIN (MCR) LIMITED
Petitions to wind up (Companies) – BRENTWOOD BUILDING CONTRACTORS LTD
Petitions to wind up (Companies) – ELECTRATECH CABLING SOLUTIONS LIMITED
Petitions to wind up (Companies) – INGENIO RECRUITMENT LIMITED
Petitions to wind up (Companies) – IAS SERVICES LIMITED
Petitions to wind up (Companies) – SANITY MARKETING LTD
Petitions to wind up (Companies) – RAILTON BUILD AND STONE LIMITED
Petitions to wind up (Companies) – FUSION ELECTRICAL SUPPLIES LIMITED
Petitions to wind up (Companies) – D.T. PAINTING & DECORATING LTD
Petitions to wind up (Companies) – LGK CONSTRUCTION & JOINERY LIMITED
Petitions to wind up (Companies) – OAKDENE DRINKS LTD
Petitions to wind up (Companies) – SOLOMON EUROPE (NI) LIMITED
Petitions to wind up (Companies) – BANN SERVICES LIMITED
Petitions to wind up (Companies) – MR SPICE LIMITED
Petitions to wind up (Companies) – FIT FACTORY (LARNE) LIMITED
Petitions to wind up (Companies) – I STAY LIVERPOOL LTD
Petitions to wind up (Companies) – STOCK & BAILEY LIMITED
Petitions to wind up (Companies) – 11222557 LIMITED
Petitions to wind up (Companies) – 186 RESTAURANT CO LTD
Petitions to wind up (Companies) – J.R.BAILEY’S LIMITED
Appointment of Administrator – YHPL LIMITED
Appointment of Administrator – HODDESDON DISTRIBUTION LIMITED
Appointment of Administrator – GREEN CREATE W2V KENT LTD
Appointment of Liquidators – BAILEY GRADY LIMITED
Appointment of Liquidators – DOWNING PUB EIS ONE LIMITED
Appointment of Liquidators – GREEN SQUARE RENEWABLE ENERGY FRANCHISING LIMITED
Appointment of Liquidators – WESTOW PUB LIMITED
Appointment of Liquidators – SGM PLANNING LIMITED
Appointment of Liquidators – LAWRENCE IMAGING LIMITED
Appointment of Liquidators – SPIDER CONSULTING LIMITED
Appointment of Liquidators – CED HOLDINGS LIMITED
Appointment of Liquidators – TUNE HOTELS REGIONAL SERVICES (UK) LIMITED
Appointment of Liquidators – JACE MEDIA LTD.
Appointment of Liquidators – PRE ELECTRICAL SOLUTIONS LIMITED
Appointment of Liquidators – CITY BRANDS LTD
Appointment of Liquidators – ETENOLOGY LIMITED
Appointment of Liquidators – TJL VENTURES LIMITED
Appointment of Liquidators – THISTLE SPV3 LIMITED
Petitions to wind up (Companies) – LICONI LIMITED
Petitions to wind up (Companies) – BAY LEAVES BELFAST LTD
Petitions to wind up (Companies) – ACTIVE TAXIS LIMITED
Petitions to wind up (Companies) – THE IMPERIAL DECORATING COMPANY LTD
Petitions to wind up (Companies) – TDA INTERIORS CENTRAL LIMITED
Petitions to wind up (Companies) – ALTION LIMITED
Petitions to wind up (Companies) – BALFOUR BROOK LTD
Petitions to wind up (Companies) – AIRPORT CARGO CARE UK LIMITED
Petitions to wind up (Companies) – BESPOKE LANDSCAPE SOLUTIONS LTD
Petitions to wind up (Companies) – FELFRI DIAMONDS LTD
Petitions to wind up (Companies) – FARHA LEGAL LTD
Petitions to wind up (Companies) – DIZZY’S RESTAURANT & BAR LIMITED
Petitions to wind up (Companies) – RC TRAVELS LIMITED
Petitions to wind up (Companies) – PEOPLE SOLUTIONS PAYROLL SERVICES LIMITED
Petitions to wind up (Companies) – HORNBEAM CONSTRUCTION LTD
Petitions to wind up (Companies) – AXTEL BUILDING & RENOVATION LTD
Petitions to wind up (Companies) – SOUTH LONDON DRAINAGE & PLUMBING LIMITED
Petitions to wind up (Companies) – KELLEHER GROUP LIMITED
Petitions to wind up (Companies) – SPEAR CONCRETE SERVICES LTD
Petitions to wind up (Companies) – ASTWOOD VENTURES LIMITED
Petitions to wind up (Companies) – CHEDSTOW LIMITED
Petitions to wind up (Companies) – JCO WINDOW CLEANERS LTD
Petitions to wind up (Companies) – HERITAGE 4X4 LIMITED
Petitions to wind up (Companies) – SDS SWISS UK LTD
Petitions to wind up (Companies) – EDEASE LTD
Petitions to wind up (Companies) – MEL PRECISION LIMITED
Appointment of Liquidators – VISION02 LTD
Appointment of Liquidators – BENTLEY-FORBES CONSULTING LIMITED
Appointment of Administrator – JESMOR CONSTRUCTION LTD
Petitions to wind up (Companies) – LIVERPOOL ADVANCED DENTAL LABORATORY LIMITED
Appointment of Liquidators – PJ RETAIL LTD
Petitions to wind up (Companies) – BRISWICK HEATING LTD
Petitions to wind up (Companies) – AVA MATERIALS LIMITED LTD
Petitions to wind up (Companies) – ALWAYS WEAR RED LIMITED
Petitions to wind up (Companies) – AISOLVE LIMITED
Petitions to wind up (Companies) – VARITUS WAVE LIMITED
Petitions to wind up (Companies) – THE HICKING BUILDING RTM COMPANY LIMITED
Petitions to wind up (Companies) – UKDE LIMITED
Petitions to wind up (Companies) – AMEY FINANCE ACADEMY LTD
Petitions to wind up (Companies) – DAY VENTILATION SERVICES LIMITED
Petitions to wind up (Companies) – BOX CLEVER SERVICES LIMITED
Petitions to wind up (Companies) – BIOSENSORS BEYOND BORDERS LIMITED
Petitions to wind up (Companies) – GORDON GROVE METAL COMPANY LIMITED
Petitions to wind up (Companies) – MECHANICAL & PLUMBING SERVICES LIMITED
Appointment of Liquidators – GANTSPEED ENGINEERING LIMITED
Appointment of Liquidators – SWEDISH HEALTH CARE LTD
Appointment of Liquidators – TREGAY PROPERTIES LLP
Appointment of Liquidators – OGW HOLDINGS LIMITED
Appointment of Liquidators – GEMINI INNOVATIONS LTD
Appointment of Liquidators – DR GAJEBASIA LTD
Appointment of Liquidators – VETRONICS SOLUTIONS LIMITED
Appointment of Liquidators – EXCELLENT PROPERTIES LTD.
Appointment of Liquidators – KINGERBY VALE LTD
Appointment of Liquidators – JACK COOPER HOMES LIMITED
Appointment of Liquidators – MAVERICK INCORPORATION LIMITED
Why should you become a CPA member!
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid, since 1914. We have seen many financial crises, this one will be particularly deadly for suppliers for some time to come.
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.
Unlike other credit management companies, we offer our members a fixed annual subscription regardless of how high the debt value maybe!
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 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.