Business news 19 September 2023

James Salmon, Operations Director.

UK insolvencies rise by 33% in August. Bank of England expected to raise interest rates to 5.5%. Daily spend on bills revealed. UK Cars, City reform, rents, oil, house prices & more business news that we thought would interest our members.

UK insolvencies rise by 33% in August
Businesses in the UK are facing a surge in insolvencies, with company bankruptcies rising by 33.6% in August compared to July. The increase in insolvencies is attributed to long-term economic issues, director fatigue, and creditor pressure. Creditors’ voluntary liquidations remain high, while compulsory liquidation numbers reached their highest level in four years. Late or failed payments have also increased, with claims rising by 26% in Q2 2023 compared to the same period in 2022. However, the summer surge in spending and a 4.1% increase in August retail sales may prevent some businesses from facing insolvency.

Bank of England expected to raise interest rates to 5.5%
The Bank of England is widely predicted to raise interest rates by another quarter point at its meeting on Thursday, taking the cost of borrowing to 5.5%. Some economists expect this to be the last increase in the current cycle of monetary tightening, but others predict the BoE could raise rates further but will raise the bar for doing so. Inflation remains at 6.8% – far above the Bank’s 2% target, but down on its peak of over 11% last year.

Daily spend on bills revealed
The average person in the UK spends 70% of their income on bills every month, according to a new report by MoneySuperMarket. That equates to £48.47 every day just on daily living costs. Assessing costs of 31 different bills, from insurance, broadband, water, and council tax through to groceries, streaming services and travel costs, the price comparison site has launched its Household Money Index to evaluate people’s spending.  It also found London, which has long held the crown as the UK’s most expensive place to live, no longer has the highest cost of living – instead it has been replaced by Manchester at £59.90 a day.

UK carmakers call for tax incentives to help switch to EVs

The lack of tax incentives for private buyers is causing a decline in demand for electric vehicles, according to carmakers. The Society of Motoring Manufacturers (SMMT) has called for a reduction in VAT on battery-powered vehicles and public charging to make them more affordable.

A survey by Savanta found that over two-thirds of drivers want to switch to electric cars but are deterred by the lack of incentives and concerns about charging. While business buying has surged due to tax incentives, individual car buying has slowed. The £1,500 grant towards an electric car was scrapped last year, and carmakers are also calling for electric vehicles to be exempt from the “expensive car supplement”. Sales to private buyers have risen just 0.9% this year compared to a 43% rise for fleets

Major report on City reform delayed
A new report on City reform has been delayed until next year, City AM reports. L&G boss Sir Nigel Wilson began an investigation in May for the Capital Markets Industry Taskforce, headed by London Stock Exchange chief Julia Hoggett, and the findings were due to be published in the autumn. However, sources say more time is needed to distill feedback into the plans.

The Capital Markets of Tomorrow report was looking to roll up a number of reviews of the capital markets ecosystem into a cohesive plan for the City. But delays to the latest report could fuel concerns about the pace of reform in the capital. Charles Hall, head of research at investment bank Peel Hunt said the industry was now “keen to see a faster pace of change” to regulation to solve the malaise facing London. “Regulators need to be clear that regulating a declining market is in no-one’s interest, including their own,” he added.

A third of workers are reducing or stopping pension contributions
A third of UK workers have looked into reducing or pausing their pension contributions in the past two years, as the cost-of-living crisis continues to bite, Royal London research has revealed. The survey found that, for those aged 18-34, this rose to 49%. The main two reasons behind this move were the cost of living (55%) and rising mortgage costs (15%). Royal London argued this may result in a short-term boost for home pay, but can also “have a dramatic impact on people’s future wealth”. The pensions provider added that stopping pension savings may increase take home pay by £1,404 per year but means losing out on £4,092 pension savings a year for workers earning £35,000.

Over half of UK shoppers ready to boycott brands over misleading green claims
More than half of UK shoppers are prepared to boycott brands over misleading green claims, according to a poll by KPMG. The survey found that 54% of consumers would stop buying from a company if it was found to have made misleading sustainability claims, while 38% said they would stop investing in the company. The research also revealed that 18% of UK shoppers have changed their mind about a company due to misleading green claims. Richard Andrews, head of environmental, social and governance at KPMG in the UK, warned that firms risk their reputations by sharing misleading information on sustainability. The poll also showed that two-thirds of UK shoppers try to seek out green or sustainable options, but a third are sceptical of green labels and struggle with inconsistent labelling. The energy and fashion industries were seen as the most likely to engage in greenwashing, according to the poll.

Pace of rising rental costs hits nine-year high
The cost of renting a home in the UK has surged by 12% over the past year, the fastest rate of increase since 2014, according to Hamptons. The average monthly rent for a newly-let property is now £1,304, up from £1,165 in August 2022. This increase in the past year was higher than the cumulative increase seen over the four years to 2019, Hamptons said. Rents across the UK have increased by 29%, or nearly £300 a month, since the beginning of the pandemic, Hamptons’ data shows, pushed higher by a prolonged imbalance between supply and demand for rental homes. The fastest rises are in London, where rents have increased by 17.1% in the past year. In Scotland rents are up 13.4% year-on-year, meaning that for the first time it is more expensive to rent a home north of the border than in the midlands. Rents in Wales have had the weakest growth, having risen only 3.4%. The pressure on landlords from high mortgage rates, coupled with a rise in demand from tenants, has been blamed for driving up rental costs.

Home sellers slash asking prices as mortgage rates impact buyer demand
Home sellers are reducing asking prices at the highest rate in 12 years due to the impact of mortgage rates on buyer demand, according to new data from Rightmove. Over a third of homes had their prices cut in the four weeks leading up to September 9, the largest share since January 2011. The average reduction was £22,700, or 6.2%. The most expensive properties saw the fastest price falls, with a 1.2% year-on-year drop for four-bed detached homes or larger. In London, the South East and East of England, asking prices were down by 1.4%, 1.6%, and 1.5% respectively. Demand is stronger for cheaper properties because rising rents are pushing more first-time buyers to get on the property ladder. The overall housing market saw a 0.4% year-on-year fall in asking prices, the largest drop since March 2019. The slowdown in the housing market is also reflected in a decrease in agreed sales, particularly in the middle and upper sectors. Rightmove predicts a 2% fall in asking prices across the year.

IMF pledges to leave climate finance to others
The International Monetary Fund has said it will not stray out of its remit to promote international economic stability by attempting to act on climate change. Kristalina Georgieva, the head of the IMF, said other institutions, such as the World Bank, can lead on “sectoral issues” including climate finance. Her comments follow criticism from some in the US that the IMF had become distracted from its core mission by issues such as climate change.


Oil continues its rise as weak shale output in the US spurred further concerns about a supply deficit stemming from extended production cuts by Saudi Arabia and Russia. With Brent hitting $95, concerns are raised over the inflationary impact of higher oil prices, especially as the pound is falling against the dollar.


Banco Santander simplified its corporate structure as Chief Executive Officer Hector Grisi tries to streamline the company’s operations. As part of the changes, the Spanish bank is combining individual countries’ retail and commercial banking businesses under a new global unit and creating a new digital consumer bank area, Santander said in a statement late Monday.

Post Office

Victims of the Post Office software failure which lead to hundreds of wrongful convictions of fraud have been offered £600,000 each in compensation by the government.

The Post Office minister said the sum was offered with “no ifs or buts”. Those who have previously settled for less will be paid the difference.

Postmasters will continue to receive funds to cover legal fees. Anyone who does not want to accept the offer can continue with the existing process.

Latest Insolvencies

Appointment of Liquidators – ANNIE’S BASKETS LIMITED
Appointment of Administrator – HALO RECRUIT LTD
Appointment of Administrator – BALTIC PROPERTY HOLDINGS LIMITED
Appointment of Administrator – YOUNGS LAW LTD
Appointment of Administrator – ACELERON LIMITED
Appointment of Liquidators – DONORDERM LTD
Appointment of Administrator – MACDONALD & TAYLOR HEALTHCARE LIMITED
Appointment of Liquidators – WESUBSEA UK LIMITED
Appointment of Administrator – BALTIC PROPERTY HOLDINGS 2 LIMITED
Appointment of Liquidators – HELIX ADVISORY SERVICES LIMITED
Appointment of Administrator – BIFF’S KITCHEN LTD
Appointment of Administrator – SHILLINGTON COLLEGE LIMITED
Appointment of Liquidators – B.C.C.G. PROPERTIES LIMITED
Appointment of Liquidators – C. JENKINS WINDOWS LIMITED
Appointment of Liquidators – MIZPAH DUNBAR LIMITED
Appointment of Liquidators – BOHRA & ASSOCIATES LTD
Appointment of Liquidators – ZAPP EVENT SERVICES LIMITED
Appointment of Liquidators – LONDON H.M.O’S LIMITED
Appointment of Liquidators – JD IP LIMITED
Appointment of Liquidators – KDH MANAGEMENT LTD
Appointment of Liquidators – CLEARSPEC LIMITED
Appointment of Administrator – HOUSE OF FUN NURSERY LIMITED
Petitions to wind up (Companies) – DUVALL LIMITED
Appointment of Liquidators – BREEZE NETWORKS LIMITED
Petitions to wind up (Companies) – TKEI DEVELOPMENTS LIMITED
Petitions to wind up (Companies) – NAIL TEAM LTD
Appointment of Administrator – CAMVAC LIMITED
Appointment of Liquidators – M R DUDDLES LTD
Appointment of Liquidators – CLYNDER SERVICES 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 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 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.