Business news 20 October 2023
James Salmon, Operations Director.
Consumer confidence plunges ahead of festive season. A third of consumers will spend less this Christmas. SME recruitment, UK Competitive ranking, OBR admits errors & more business news that we thought would interest our members.
Consumer confidence plunges ahead of festive season
Consumer confidence has slumped ahead of Christmas as consumers continue to suffer a cost of living crunch. GfK’s monthly measure of consumer sentiment fell by nine points to -30 in October, the weakest reading since July and the biggest fall since the start of the Covid pandemic.
Joe Staton, client strategy director at the market researcher, said: “The fierce headwinds of meeting the accelerating costs of heating our homes, filling our petrol tanks, coping with surging mortgage and rental rates, a slowing jobs market and now the uncertainties posed by conflict in the Middle East are all contributing to this growing unease.” The latest data will add to concerns over the health of the economy.
Peter Arnold, UK chief economist at EY, said that “with the effect of a major rise in interest rates coming through, fiscal policy settings tight and the jobs market fraying, sluggishness is likely to remain the story over the rest of this year and into 2024”.
A third of consumers will spend less this Christmas
A survey of 2,600 UK households by KPMG found that a third of consumers would be spending less on Christmas groceries this year and four in ten would cut back on buying gifts. Those who said they would make the biggest reductions over Christmas were aged between 33 and 45. Linda Ellett, UK head of consumer markets and retail at KPMG, said: “Only small amounts of households were in the position to spend more this Christmas. Even for those spending the same, the volumes that they receive may well be less due to inflation.”
Small businesses struggle to compete for talent
Small and medium-sized enterprises (SMEs) in Britain are struggling to compete for talent, with the cost of recruitment soaring, a new study suggests. According to research from talent platform Employment Hero, 89% of SMEs are struggling to match salaries offered by bigger organisations in the UK.
The study of 514 small businesses found that multinationals present a threat to 69% of firms. The average cost of hiring has risen by 68% to £3,089 over the last year.
SMEs, particularly those employing less than 10 workers, are also facing the highest advertising costs and turnover rates.
Ben Thompson, CEO and co-founder of Employment Hero, said, “Recruitment isn’t working for SMEs. They are the backbone of our economy but can’t keep up with a hiring environment of increasing complexity and cost, where huge multinational companies can easily outspend them in the race for top talent.”
High-tax Britain slips down competitive rankings
An annual study on tax competitiveness published by America’s Tax Foundation has revealed that the UK has fallen three places to 30th among the 38 countries in the OECD. In its ranking on corporate taxes, Britain fell by 17 places to 28th – a result of raising the corporation levy from 19% to 25% earlier this year. The UK’s overall tax competitiveness ranking is below that of larger economies such as Germany and the US. The news comes after separate analysis by the IFS think-tank showed that a freeze in income tax bands will raise £52bn, equivalent to 6p on income tax.
OBR admits errors in its economic forecasts
The Office for Budget Responsibility (OBR) has admitted to making errors in its forecasts which had an impact on its predictions of tax revenues, spending and interest rates. The Government’s financial watchdog said its forecasts in March 2021 and March 2022 underestimated the inflation shock from the pandemic and the war in Ukraine. The errors meant the Government ended up borrowing £29.3bn more in 2022-23 than the OBR had anticipated in March 2022.
AI
Prime Minister Rishi Sunak is calling for nations to label artificial intelligence as capable of causing “catastrophic harm” at the AI Safety Summit the UK is hosting next month. While saying “There is potential for significant, even catastrophic, harm, either deliberate or unintentional, stemming from the most dangerous capabilities of these AI models,” the draft joint position being circulated also points out positively the transformative opportunities of AI, especially in public services like health, education, science and clean energy.
Retail
UK retail sales fell 1% in September according to the ONS easing from the 1.3% decline in August.
The fall was larger than expected though as shoppers held back buying autumn clothing amid unseasonably warm weather and also struggled with the cost of living crisis.
Grant Fitzner, the ONS chief economist, said sales “fell notably” in September as the quick pace of price rises put shoppers off, “particularly for sales of non-essential goods”.
Public sector borrowing
Government borrowing in September was lower than most economists had expected but remains high, figures show. UK public sector borrowing totaled £14.35bn over September.
Economists had predicted government borrowing to be £18.3bn last month while the Office for Budget Responsibility had forecast the level to be £20.5bn.
Markets
US indices were lower after Federal Reserve chair Jerome Powell reiterated that inflation remained too high and US interest rates will have to be higher for longer, but also commented that the global economy faces increased uncertainty. Equities also fell as investors responded to the threat of a weekend escalation in the Middle East conflict, driving oil and gold higher, with gold approaching $2000 and WTI passing $90. Overnight, the DOW dropped -0.75%, the S&P 500 dropped -0.85% and the NASDAQ dropped -0.96%. The dollar edged higher to 1.2114 against the pound.
HMRC warns of surge in fake tax rebate scams
HMRC has received 58,000 reports of scammers offering fake tax rebates in the last 12 months. With around 12m people expected to submit a tax return before the January 31, 2024, deadline, HMRC warns that fraudsters will prey on customers by impersonating the tax body. Scammers use various approaches, such as offering rebates or threatening immediate arrest for tax evasion. Myrtle Lloyd, director general for customer services at HMRC, advises customers to be wary of unexpected contacts and to check HMRC scams advice on GOV.UK.
Decision to scrap new corporate reforms regrettable
A piece for ICAEW (The Institute of Chartered Accountants in England and Wales) Insights states that the Government’s decision to abandon new rules for large UK listed and private companies signals an end to UK audit and corporate governance reform. The legislation was put forward by the Government just three months ago and proposed measures including the introduction of an annual resilience statement, distributable profits figure, material fraud statement and triennial audit and assurance policy statement.
Iain Wright, ICAEW Managing Director, Reputation and Influence, described the decision as “a major blow to those seeking to drive improved transparency and trust in UK corporate reporting”. The Government did however say that it remains committed to wider audit and corporate governance reform, including establishing a new regulator, the Audit, Reporting and Governance Authority to replace the existing Financial Reporting Council.
It is also noted that the Department for Business and Trade, working with FRC, is conducting a review of the non-financial reporting requirements UK companies need to comply with to produce their annual report and to meet broader requirements that sit outside of the Companies Act.
Latest Insolvencies
Appointment of Liquidators – IXACT LIMITED
Petitions to wind up (Companies) – SOMERTOWN LTD
Appointment of Liquidators – TRIANGLE (FUNDING ONE) LIMITED
Petitions to wind up (Companies) – PRO CITY DECORATORS LTD
Petitions to wind up (Companies) – 8669 MAC LTD
Petitions to wind up (Companies) – AUL UNDERWRITING AGENCY LTD
Petitions to wind up (Companies) – THE STORK THURNAM LIMITED
Appointment of Liquidators – CAPITAL DEPOSIT LIMITED
Petitions to wind up (Companies) – 24/7 RESCUE AND RECOVERY UK LIMITED
Petitions to wind up (Companies) – GOLDEN AGE OPERATIONS LTD
Appointment of Liquidators – PUBLICAUK LTD
Petitions to wind up (Companies) – DMH (SUSSEX) LIMITED
Petitions to wind up (Companies) – GDS K9 SOLUTIONS LIMITED
Petitions to wind up (Companies) – WESTBRIDGE ELECTRICAL SERVICES LIMITED
Petitions to wind up (Companies) – L A INSTALLATIONS LEEDS LTD
Petitions to wind up (Companies) – TOTAL BUILDING & MAINTENANCE LIMITED
Petitions to wind up (Companies) – THE PLUMBING TEAM LTD
Appointment of Liquidators – LKBD CONSULTING LTD
Petitions to wind up (Companies) – MORCUMB’S MORTGAGE SERVICES LTD
Petitions to wind up (Companies) – UCG MANAGEMENT SERVICES LTD
Petitions to wind up (Companies) – NEW CITY SERVICES LIMITED
Appointment of Liquidators – GOOD HOPE HOLDINGS LIMITED
Appointment of Liquidators – COMMUTER AIRCRAFT LEASING 2017 II LIMITED
Appointment of Liquidators – SANDFORD PROPERTIES (OXFORD) LIMITED
Petitions to wind up (Companies) – BLUE SIX CONSULTANTS LIMITED
Petitions to wind up (Companies) – CRYSTAL INTERACTIVE LTD
Appointment of Liquidators – KREOS CAPITAL SERVICES V LIMITED
Petitions to wind up (Companies) – BLUEBELL SHOES LIMITED
Appointment of Liquidators – MEALEY IT SOLUTIONS LIMITED
Petitions to wind up (Companies) – MAKELIGHT LTD
Petitions to wind up (Companies) – CIBCO LIMITED
Petitions to wind up (Companies) – BOWER LONDON LIMITED
Appointment of Liquidators – STORE AND SECURE (HOLDINGS) LIMITED
Appointment of Liquidators – KREOS CAPITAL III (UK) LIMITED
Petitions to wind up (Companies) – LONGACRE (BRISTOL) LIMITED
Petitions to wind up (Companies) – LA FIDUCIAIRE LIMITED
Petitions to wind up (Companies) – LUCANIA ASSOCIATES LIMITED
Petitions to wind up (Companies) – ROBINSON HOMES WORCESTERSHIRE LTD
Petitions to wind up (Companies) – CDA TOP TRANS LTD
Petitions to wind up (Companies) – SPREEDLY UK LIMITED
Petitions to wind up (Companies) – NATURALLY PURE PRODUCTS LIMITED
Petitions to wind up (Companies) – SIGNET CONSTRUCTION GROUP LTD
Petitions to wind up (Companies) – LO-MAY CONSULTING LTD
Appointment of Liquidators – PUBLIC REALM SERVICES LTD
Petitions to wind up (Companies) – BPD CONTRACTORS LIMITED
Appointment of Liquidators – RED GRANGE 80 LTD
Appointment of Liquidators – SIMPLYTICS LTD
Petitions to wind up (Companies) – UNIVOCAL LTD.
Petitions to wind up (Companies) – MARTIN SUPPORT SERVICES LTD
Petitions to wind up (Companies) – HOMEWARES MARKETING LTD
Appointment of Liquidators – AIROWING ENGINEERING LIMITED
Appointment of Administrator – TANNER BRODIN LIMITED
Appointment of Liquidators – MOBIUS BLUE LIMITED
Appointment of Liquidators – UDS PROPERTIES THREE LIMITED
Petitions to wind up (Companies) – CHINA GARDEN CATERING LTD
Appointment of Liquidators – FARINO COLE REAL ESTATE LIMITED
Petitions to wind up (Companies) – GSM INTERIORS & CONTRACTORS LTD
Petitions to wind up (Companies) – UC CAPITAL LTD
Appointment of Liquidators – CROSSBAR TECHNOLOGY LIMITED
Appointment of Liquidators – KREOS CAPITAL IV (UK) LIMITED
Appointment of Liquidators – KREOS CAPITAL SERVICES LIMITED
Petitions to wind up (Companies) – STYLISTIC BEDS LTD
Appointment of Liquidators – CUSHER PROPERTIES LTD
Petitions to wind up (Companies) – SOUTHERN ENERGY TRAINING ACADEMY LTD
Petitions to wind up (Companies) – DEEN POWERS INTERNATIONAL LIMITED
Petitions to wind up (Companies) – THOMAS CHASE SERVICES LIMITED
Petitions to wind up (Companies) – BUILDING EMP LIMITED
Appointment of Liquidators – TWISTER FILM & TELEVISION LIMITED
Petitions to wind up (Companies) – DENNISON (INT) PETRO CHEMICALS LIMITED
Petitions to wind up (Companies) – FOVTY SERVICES LTD
Petitions to wind up (Companies) – STRUCTURE DESIGN LTD
Petitions to wind up (Companies) – SERAPHIM PROJECTS LTD
Appointment of Liquidators – TRIANGLE REGIONAL AIRCRAFT LEASING LIMITED
Appointment of Liquidators – SHAPE FACTORY LIMITED
Appointment of Liquidators – WASHBURN MANAGEMENT SERVICES LTD
Appointment of Liquidators – GREEN INVESTMENT GROUP MANAGEMENT LIMITED
Petitions to wind up (Companies) – MONDEC CONTRACTORS LIMITED
Petitions to wind up (Companies) – RIVERSIDE TENPIN BOWLING LIMITED
Petitions to wind up (Companies) – M&G HEATING & COOLING ENGINEERS LTD
Petitions to wind up (Companies) – CJP CONSTRUCTION LTD
Appointment of Liquidators – KREOS CAPITAL SERVICES IV LIMITED
Petitions to wind up (Companies) – TALK IT WORK IT LTD
Petitions to wind up (Companies) – INTELLIGENT WASTE SOLUTIONS LTD.
Petitions to wind up (Companies) – MONSTER TIME PRODUCTIONS LIMITED
Petitions to wind up (Companies) – LASMER LIMITED
Petitions to wind up (Companies) – BG HAMPSHIRE LTD
Petitions to wind up (Companies) – CAPITAL LAND ESTATES LIMITED
Appointment of Liquidators – SUNNYBANKS HOMES (SW) LIMITED
Petitions to wind up (Companies) – DELTA UK ENTERPRISES LTD
Appointment of Liquidators – SUTCLIFFE PLAY (SCOTLAND) LIMITED
Petitions to wind up (Companies) – RENOVA CONSULTING LIMITED
Appointment of Liquidators – METASPACE LIMITED
Appointment of Liquidators – VENNTECH LTD
Petitions to wind up (Companies) – DIVAN BEDS LTD
Petitions to wind up (Companies) – EMPLOYMENT PAYROLL CARE LTD
Petitions to wind up (Companies) – MERSEY GLAZE LTD
Appointment of Liquidators – MINT CLEANING GROUP HOLDINGS LTD
Petitions to wind up (Companies) – R MASON CONSTRUCTION LTD
Petitions to wind up (Companies) – H & L SKID STEER HIRE SERVICES LIMITED
Appointment of Liquidators – ALDESIA 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.