Business news 22 January 2025
Compulsory liquidations soar to new heights. Warning lights flash over jobs market. Budget deficit, CMA, Airports, AI, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Compulsory liquidations soar to new heights
The Insolvency Service has reported a significant rise in compulsory liquidations, reaching 3,320 in 2024, marking a 14% increase from the previous year and the highest level since 2014. Tim Cooper, president of R3, commented: “Compulsory liquidation levels have increased compared to last year as creditors pursue the debts they are owed.” While overall insolvencies decreased by 5% from the previous year’s peak, analysts remain cautious about future trends. Jeremy Whiteson from Fladgate cautioned that the current figures might represent a “temporary relaxation” as concerns grow around the impact of rising minimum wage and national insurance costs, particularly in the retail sector, which saw a 30% month-on-month increase in insolvencies. David Kelly from PwC UK anticipates further insolvency filings in early 2024 as businesses reassess their financial positions. Meanwhile, the number of personal insolvencies also rose by 14%, climbing from 103,434 to 117,947, as consumers grappled with escalating debt due to higher interest rates.
Warning lights flash over jobs market
The British Chambers of Commerce (BCC) has raised alarms about the UK jobs market, indicating that “warning lights” are flashing due to rising unemployment and falling vacancies. Recent data shows a 4.4% unemployment rate for the three months leading to November, up from 4.3%, alongside a significant drop of 47,000 payrolled workers in December, marking the largest decline since November 2020. Despite a notable wage growth of 5.6% in regular pay, the BCC warns that businesses face increasing employment costs, particularly with Labour’s plans to raise national insurance contributions and the minimum wage in April. Analysts predict that the Bank of England may lower interest rates in February, as concerns about the faltering jobs market grow. Matt Swannell from the EY Item Club said the Bank of England is becoming more concerned about the weakness of employment and he expects the MPC to cuts rates by 25 basis points in February
Budget deficit
Debt interest costs pushed up UK government borrowing more than predicted last month, putting Chancellor of the Exchequer Rachel Reeves on course to overshoot official forecasts this year. The budget deficit totaled £17.8 billion in December, more than double the £7.7 billion recorded a year earlier and the highest for the month since the pandemic, the Office for National Statistics said this morning.
Bridgewater founder Ray Dalio warns of UK ‘debt death spiral’
The billionaire founder of hedge fund firm Bridgewater Associates has warned of a “debt death spiral” for the UK. Ray Dalio told the FT the UK needs to cut its budget deficit through either tax rises or spending cuts before the cost of borrowing becomes insurmountable. “When you get to the point that you have to borrow money to service the debt and interest rates are rising, so that debt service payments rise, so you need to borrow more money to pay them, you’re in what the markets call a death spiral,” he said. “As those risks increase, everybody looks at that need to borrow more money at higher interest, which creates [a] self-reinforcing debt deterioration cycle.”
Taxpayers face £49bn public building repair bill
Taxpayers are facing a staggering £49bn bill to repair and replace deteriorating public buildings, according to the National Audit Office (NAO). The NAO’s report highlights that the condition of facilities, including those used by the Ministry of Defence and NHS, poses a significant risk to essential public services. Specifically, £15.3bn is needed for the Ministry of Defence, £13.8bn for the NHS, and £13.8bn for schools, among other costs. Gareth Davies, head of the NAO, said: “Allowing large maintenance backlogs to build up at the buildings used to deliver essential public services is a false economy.” The report suggests that the actual costs could be much higher due to a lack of comprehensive data on the condition of these assets.
Markets
Yesterday, London markets edged higher, with blue-chip stocks holding near record highs. Overnight in the US the S&P 500 rose 0.88% to 6049.24 and the NASDAQ rose 0.64% to 19756.78.
Investors continued to assess comments from US President Donald Trump, speculating on the sweeping changes his administration could bring. Meanwhile, Wall Street resumed trading after inauguration day and opened the week with a broadly positive session.
This morning on currencies, the pound is strengthening and is currently worth $1.237 and €1.183. On Commodities, Oil (Brent) is at $79.88 & Gold is at $2758. On the stock markets, the FTSE 100 is currently up 0.37% at 8580 and the Eurostoxx 50 is up 0.85% at 5210.
Earnings rise!
In the UK, the Office for National Statistics reported that average earnings, excluding bonuses, rose 5.6% annually in the three months to November 30. However, the unemployment rate climbed higher than analysts had anticipated. While the jobs data raised questions about the direction of interest rates, markets are still largely expecting the Bank of England to cut rates when it meets on February 6.
Ministers force out chair of UK’s competition regulator
The chair of the UK Competition and Markets Authority has been forced out by the Business Secretary, Jonathan Reynolds, for not being sufficiently focussed on growth. Marcus Bokkerink was appointed in 2022 and could have served a five-year term. The former Amazon UK boss Doug Gurr is expected to take over as CMA chair in the interim with eyes now on whether CMA chief executive Sarah Cardell adjusts her approach. Tom Smith, competition lawyer at Geradin Partners and former CMA legal director, said the move came as a surprise. “Government seems to be sending a strong signal, especially about merger control,” he added. “It is tempting to say that now would be a good time to file a merger at the CMA.”
Britain’s shrinking R&D budgets pose hurdle in ‘global race’ on AI
The number of British companies among the top 2,000 global R&D spenders has nearly halved over the past decade, dropping from 118 in 2013 to just 63 in 2023
Airports
Keir Starmer’s government is preparing to approve controversial expansions to three London airports as part of a push to spur growth that’s become more urgent this month after international markets cast doubt on the credibility of the UK’s economic plans. Ministers are set to publicly signal support for a long-sought third runway at Heathrow, sign off on plans to bring the second strip at Gatwick into full-time use, and allow an increase in the capacity at Luton.
Chancellor of the Exchequer Rachel Reeves said “the answer can’t always be no” when it comes to approving major infrastructure works and planning decisions, her latest indication that she’ll push ahead with controversial projects in a bid to grow Britain’s economy. “This was the problem in the last government,”
Storm ahead
A winter storm packing damaging winds and heavy rain are forecast for Scotland, Northern Ireland and northern parts of England later this week, according to the UK’s Met Office. The storm is expected to arrive in the UK on Thursday and could be the strongest since Darragh in early December.
TikTok
Trump would be open to Elon Musk or Oracle’s Larry Ellison buying TikTok in partnership with the US government. “So what I’m thinking about saying to somebody is buy it and give half to the United States of America, half, and we’ll give you the permit, and they’ll have a great partner,” he said.
AI
Trump announced that OpenAI and Oracle, two tech companies, and SoftBank, a tech fund, will invest up to $500bn in American artificial intelligence, including data centres, over four years
Netflix
Netflix added 18.9 million customers in the fourth quarter, more than double expectations and brought global subscribers at Netflix to more than 300 million.
Tariffs
Trump said he would hit the European Union with tariffs, a day after he threatened a 25% levy on goods coming into America from Mexico and Canada. He gave no timeline for hitting EU imports, or what the level might be. He reiterated that China was also in line for tariffs of perhaps 10%, perhaps as early as February 1st.
FRC finds UK firms struggle with climate reporting
Since the introduction of mandatory Climate-related Financial Disclosures for large companies in the UK in 2022, the Financial Reporting Council (FRC) has found that while firms are attempting to comply, the quality of their reporting remains inconsistent. The FRC’s survey revealed that “reporting quality was inconsistent,” indicating that many companies listed on the Alternative Investment Market or privately held are struggling to meet the national standards. This review marks the FRC’s first assessment of reporting quality since the new requirements were implemented. Sarah Rapson, Executive Director of Supervision, said: “As many AIM and large private companies continue to consider the impact of climate on their strategy, operations and people, the importance of robust frameworks that support preparers to assess risks and opportunities will continue to grow. This review provides clear examples for preparers that will enable them to meet these new Companies Act requirements. As reporting continues to mature, this review will provide a benchmark for organisations to build upon.”
Trump threatens to double tax rates for foreign companies
US President Donald Trump has instructed the Secretary of the Treasury to investigate whether any foreign company, or individual, should face higher taxes because American corporations or its citizens is being unfairly taxed overseas. Under Section 891 of the US tax code the president has the power to double the rate of tax on foreign nationals and corporations if they judge that the countries they hail from are unfairly taxing American interests overseas. Trump also withdrew support for last year’s OECD global tax pact, which allows other countries to levy top-up taxes on US multinationals. Grant Wardell-Johnson, global head of tax policy at KPMG, said: “Ultimately we are seeing international taxation moving from a multilateral domain to a bilateral one based on strong unilateral assertions. It is a new taxation world.”
MPs demand action on HMRC failures
MPs have expressed serious concerns regarding HMRC’s handling of unpaid taxes and customer service. The Public Accounts Committee highlighted that HMRC wrote off £5bn in unpaid tax last year, while also cutting off 44,000 customers who were waiting for assistance. Sir Geoffrey Clifton-Brown, committee chair, said: “HMRC is an organisation in defensive mode, and needs bold and ambitious leadership to begin to chart its recovery.” The committee, which suggested HMRC had deliberately run down its service to force taxpayers online, recommended that HMRC reinstate call waiting time targets and improve access for the 7m customers unable to use digital services. Despite receiving £51m in additional funding, there are fears that service levels may decline again as demand increases. Jim Harra, First Permanent Secretary and Chief Executive of HMRC, defended the authority, claiming improvements have been made, with call wait times reduced by 17 minutes since last year.
Latest Insolvencies
Appointment of Administrator – A.J. SIMS LIMITED
Appointment of Administrator – FROST & CO. JEWELLERS LIMITED
Appointment of Liquidators – ROSE WHARF ESTATES LIMITED
Appointment of Liquidators – FOUNDATIONS SUPPORT AND CARE SERVICES UK. LIMITED
Appointment of Liquidators – EOS BUILDERS LIMITED
Appointment of Liquidators – WILES CO-INVESTMENT PARTNERS LLP
Appointment of Liquidators – JAHYZ MARKETING TECHNOLOGY SERVICES LTD
Appointment of Liquidators – O’SULLIVAN DATA MANAGEMENT LIMITED
Appointment of Liquidators – BIRDSEYE TECHNOLOGIES LTD
Appointment of Liquidators – NORFOLK MOULDINGS LIMITED
Appointment of Liquidators – WILES IV MANAGEMENT LIMITED
Appointment of Liquidators – TAURUS TOOLS LIMITED
Appointment of Liquidators – PREMIER CORPORATE CONSULTANTS LIMITED
Appointment of Liquidators – TANGO HOLDINGS LIMITED
Appointment of Liquidators – J.BARRY MARKETING LIMITED
Appointment of Liquidators – R.N. ELECTRONICS LIMITED
Appointment of Liquidators – TREEBEARD TECHNOLOGIES LTD
Appointment of Liquidators – BOLEYN CONSULTING LTD
Appointment of Liquidators – SPL MEDIA LTD
Appointment of Liquidators – AEU MEDICAL LTD
Appointment of Liquidators – AD INFOTECH LIMITED
Appointment of Liquidators – OLIMA CONSULTING LTD
Petitions to wind up (Companies) – STREAMLINED FITNESS 1 LIMITED
Petitions to wind up (Companies) – AUTO SERVICES PONTYPOOL LTD
Petitions to wind up (Companies) – GODLIKE & ELECTRIC RECORDS LIMITED
Petitions to wind up (Companies) – 247 EXCELLENT QUALITY CARE LTD
Winding up Order (Companies) – BRIGHOUSE CAR SALES LIMITED
Winding up Order (Companies) – CASA DEVELOPMENT HOLDINGS LIMITED
Winding up Order (Companies) – TEXTBOOK POINT LTD
Winding up Order (Companies) – AC BUILDING DESIGN LIMITED
Winding up Order (Companies) – PRIVETT’S HEATING & PLUMBING ENGINEERS LTD
Winding up Order (Companies) – CIVILS SOUTHERN LIMITED
Winding up Order (Companies) – J-MECH WASTE SOLUTIONS LTD
Winding up Order (Companies) – WOODSBUILD HERITAGE LTD
Winding up Order (Companies) – PROGRESS FUELS & LUBRICANTS LTD
Winding up Order (Companies) – ZODIAC SOLUTIONS LTD
Winding up Order (Companies) – THIRSTY SUPPLIERS LTD
Winding up Order (Companies) – MCP PRODUCTS LTD
Winding up Order (Companies) – SCORE SOLUTIONS LTD
Winding up Order (Companies) – EUROCHOICE TRADER LIMITED
Winding up Order (Companies) – CARBUNE LTD
Winding up Order (Companies) – COYOTE UGLY CATERING LTD
Winding up Order (Companies) – ZULU ENTERPRISES LIMITED
Winding up Order (Companies) – THE A & M GROUP LIMITED
Winding up Order (Companies) – PRECEDENT SURVEYORS LIMITED
Winding up Order (Companies) – SG HR LIMITED
Winding up Order (Companies) – HAL FORESTRY LIMITED
Winding up Order (Companies) – AFREN NIGERIA HOLDINGS LIMITED
Petitions to wind up (Companies) – FAMILY COSTINGS LIMITED
Appointment of Liquidators – SAMIAN ENTERPRISE LIMITED
Petitions to wind up (Companies) – MGC LOGISTICS (BHAM) LTD
Petitions to wind up (Companies) – Q RECRUITMENT LIMITED
Petitions to wind up (Companies) – AUTOMATED SOLUTION DESIGN LTD
Petitions to wind up (Companies) – HOMIES PIZZA LTD
Petitions to wind up (Companies) – GHOST GASTRO LTD
Petitions to wind up (Companies) – BURNLEY FOOD PLUS LIMITED
Petitions to wind up (Companies) – TALENTED RECRUITMENT GROUP LIMITED
Petitions to wind up (Companies) – MEDCARE HQ LTD
Petitions to wind up (Companies) – EMERALD HOUSE GREEN ENGINEERING LTD.
Petitions to wind up (Companies) – SAPE CAPITAL LTD
Appointment of Administrator – HWS RESTAURANTS LIMITED
Appointment of Administrator – HWSB LIMITED
Appointment of Administrator – HWSI LIMITED
Appointment of Administrator – PHR (NORTHERN EUROPE) LIMITED
Appointment of Administrator – UK LIVE LIMITED
Appointment of Liquidators – FREEMANTLE ENTERPRISES LIMITED
Appointment of Liquidators – AWCOCK WARD PARTNERSHIP CONSULTING LIMITED
Petitions to wind up (Companies) – ALL ENERGY SERVICES LTD
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.