Business news 20 November 2024
Some of the headlines & business news that we thought would interest our members.
James Salmon, Operations Director.
Insolvencies down 10% in October
The number of company insolvencies in England and Wales decreased by 10% to 1,747 In October, data from the Insolvency Service shows. The report shows that administrations fell by 28% to 100, while creditors’ voluntary liquidations reached 1,445, as directors opted to close their businesses. Benjamin Wiles of consultancy Kroll said the numbers had been “very measured,” given more certainty around the cost of borrowing and the direction of inflation.
Inflation set to climb
Data from the Office for National Statistics is expected to show that inflation has once again risen above the Bank of England’s 2% target on the back of higher energy prices. Economists expect inflation to have climbed to 2.2% in October, having dropped to a three-year-low of 1.7% in the previous month. If the forecasts are correct and the prices of goods and services have increased, analysts say it may reduce the likelihood of the Bank further reducing the base rate.
Government considering subsidised jobs
The Government is contemplating a subsidised jobs programme to address a rise in youth unemployment, with 1.2m young people currently out of work. According to the Office for National Statistics, there are 789,000 individuals aged 16 to 24 who are not in education, employment, or training (NEET), the highest figure recorded. Experts attribute this crisis to increasing mental health issues and a lack of skills training. PwC estimates that reducing the NEET rate could boost GDP by £23bn annually.
Labour’s relationship with business at a ‘critical point’
Helen Dickinson, the chief executive of the British Retail Consortium (BRC), says the Government’s relationship with business is at a “critical point,” with firms concerned over the impact of several policies. This comes after the BRC co-ordinated a letter signed by more than 70 retailers which warned that tax hikes set out in the Budget make job losses “inevitable” and higher prices “a certainty.” Ms Dickinson said the letter “highlights the strength of feeling from right across the industry,” adding: “You can see that businesses large and small are aligned on the concern for the consequences of a whole load of policy changes – not just ones that happened in the Budget – that are all happening at the same time.”
Bailey: Retailers right to warn of tax hike fears
Bank of England governor Andrew Bailey says retailers were right to warn that tax increases introduced in the Budget could lead to job cuts. This comes after a letter co-ordinated by the British Retail Consortium saw more than 70 businesses warn the Chancellor that increased National Insurance contributions, a lower wage threshold for payouts and a higher minimum wage means job losses and price rises are “inevitable.” Speaking to MPs at the Treasury Select Committee, Mr Bailey said: “I think they’re right to say, I think there is a risk here that the reduction in employment could be more.” He added that while there will be more pressure on firms’ margins, they would “probably rebuild those profit margins over time.”
PM defends tax hike
Sir Keir Starmer says he is “absolutely” confident in the Chancellor’s financial plans, despite retailers warning of job cuts and price rises as a result of Budget tax hikes. Defending the decision to increase employers’ National Insurance contributions, the Prime Minister said the previous government had “refused to take a single difficult decision.” Backing the measures that Rachel Reeves outlined in her first Budget, the Prime Minister added: “We have to stabilise the economy, we have to deal with the £22bn black hole, and we need to invest in the future of our country.”
UK looks to strengthen India and Japan ties
The UK is set to relaunch trade talks with India in 2025, with Prime Minister Sir Keir Starmer and Indian leader Narendra Modi having met at the G20 summit in Brazil and agreeing to work toward an agreement. Downing Street said the nations will look to agree an “ambitious UK-India comprehensive strategic partnership to take the relationship to new heights in trade and investment, security and defence, technology, climate, health and education.” The UK will also look to form a new economic partnership with Japan after Mr Starmer met the country’s Prime Minister, Shigeru Ishiba.
Farmers rally against inheritance tax changes
The National Farmers’ Union (NFU) has accused the Government of “betrayal” over the proposed changes to inheritance tax rules. Change set out in the Budget will impose a 20% inheritance tax on farms valued over £1m from April 2026. While the Government insists that most farmers will not be affected by the changes, NFU president Tom Bradshaw said 68% of farmers will be affected by the new tax. Environment Secretary Steve Reed has urged farmers to “check the facts,” claiming the tax is targeted at the wealthiest estates and will curb avoidance by the super-rich. The matter saw farmers take to the streets of Westminster yesterday, with an estimated 13,000 farmers bringing Whitehall to a standstill as they looked to force a U-turn on the inheritance tax rules.
Banks face £30bn bill from motor finance scandal
UK banks may face a £30bn compensation bill due to the motor finance scandal, according to Moody’s, which has calculated the cost of a potential redress scheme for customers mis-sold loans. The Financial Conduct Authority (FCA) banned discretionary commissions in car loan deals in 2021 and has since announced a wide-ranging review of the commissions paid by lenders to car dealers or credit brokers for arranging finance. With it suggested that the FCA may force car loan providers to compensate borrowers, Moody’s has suggested that this could amount to between £8bn and £21bn in redress costs for the industry. The bill, it says, could rise by a further £9bn if it is ruled that the matter applies to all types of commission, not just the discretionary arrangements.
Insurers see record property claim payouts
Property insurance claim payouts reached £4.1bn in the first three quarters of the year, according to The Association of British Insurers (ABI) data. This marks a 15% increase on January to September 2023 and is the biggest total for the first nine months of a year since records started in 2017. The ABI data also shows that insurers paid out £1.3bn in domestic and commercial property insurance claims during Q3. The report also shows that the average payout per home insurance claim has hit a record high of £6,002 and is 33% higher than a year ago. The ABI notes that analysis from EY shows that in 2023, for every £1 property insurers received in home insurance premiums, they paid out £1.18 in claims.
Winter fuel cut to put 50k into poverty
Government estimates suggest that cuts to the winter fuel allowance mean an additional 50,000 pensioners will be living in relative poverty next year. This comes with the Chancellor having previously announced that the £300 payment would be restricted to those eligible for pension credit. Work and Pensions Secretary Liz Kendall said the estimates did not take into account any increased take-up of the credit. She added that the decision to cut the winter fuel payments was not one the Government “wanted or expected to take.”
Latest Insolvencies
Petitions to wind up (Companies) – BREEZE INSTALLATIONS LTD
Petitions to wind up (Companies) – QUINTARZ LTD
Appointment of Administrator – N E C SERVICES GROUP LTD
Appointment of Administrator – RUSTINGTON RECRUITMENT LIMITED
Appointment of Liquidators – FAME IT LTD
Appointment of Liquidators – BENNETT INTERNATIONAL LIMITED
Appointment of Administrator – CROSSWORD CONSULTING LIMITED
Appointment of Liquidators – BAROSSA MORTGAGE FUNDING NO.3 LIMITED
Appointment of Liquidators – INSPIRATIONWORKS (UK) LIMITED
Appointment of Liquidators – GOLDAGE LIMITED
Appointment of Liquidators – CSC COMMODITIES UK LIMITED
Appointment of Liquidators – PHS HOLDCO LIMITED
Appointment of Liquidators – BAZAAR ARCHIVE LTD
Appointment of Liquidators – WHITE WATER TRADING COMPANY LIMITED
Appointment of Liquidators – SEALAND WINDOWS LIMITED
Appointment of Liquidators – REDLAND DEVELOPMENTS LIMITED
Appointment of Liquidators – PHS GROUP INVESTMENTS LIMITED
Appointment of Liquidators – LIVERPOOL REVERSIONARY COMPANY LIMITED(THE)
Appointment of Liquidators – ZURICH GSG LIMITED
Petitions to wind up (Companies) – SMITHGOLD LIMITED
Appointment of Liquidators – DARROCH COMBINED SERVICES LTD.
Appointment of Administrator – CALDER PEEL PARTNERSHIP LIMITED
Petitions to wind up (Companies) – HOME DRAINAGE PROTECTION SERVICE LTD
Petitions to wind up (Companies) – GLOBAL BOXING MANAGEMENT LTD
Petitions to wind up (Companies) – KGH LIMITED
Petitions to wind up (Companies) – HAVYILAH LTD
Appointment of Liquidators – BREGU EYE LTD
Appointment of Liquidators – TNT HOLDINGS (UK) LIMITED
Appointment of Liquidators – LEONARD CHARLES LIMITED
Petitions to wind up (Companies) – SYMPHONY INTERIORS 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.