Business news 24 March 2022
James Salmon, Operations Director.
Sorry but today’s newsletter is going to be briefer than usual.
GDP Forecast
The UK Office of Budget Responsibility has lowered its forecast for UK GDP growth in 2022 from 6% predicted in October 2021, to 3.8% citing geopolitical conflict (Ukraine) and a highly uncertain outlook.
On inflation the OBR now predict inflation will rise to 8.7 in Q4.
BNP Paribas are now putting the UK as at high risk of civil unrest, rating it second from last among 36 major economies for sustainability, due to wealth inequality, high housing costs, childcare and undermined social mobility. Only Latvia faired worse.
Spring Statement
The UK Chancellor’s Spring Statement contained a few positive surprises that helps to address concerns over sharply rising living costs in the next six months. Overall the tone was progressive and seeks to maintain the UK’s forward momentum given the new complexities of the Russia/ Ukraine war and higher commodity prices.
- The National Insurance threshold will increase by £3,000 from July 2022 meaning that £12,570 will be the new NI threshold.
- 5p per litre fuel tax cut effective from 18:00 GMT today
- £500m increase to £1bn for local councils to support hard hit households
- A promise to cut the basic rate of tax by 1p to 19p in 2024
- An increase in the employment allowance to £5,000
- 0% VAT on solar panels and heat pumps
- Leisure businesses to get a 50% cut on business rates
Overall the Chancellor’s tone was progressive and seeks to maintain the UK’s forward momentum given the new complexities of the Russia/ Ukraine war and higher commodity prices. However, despite the credits, the Government is only giving a £1 back for every £6 they are taking in announced tax rises. With inflation, tax and energy cost rises, UK disposable incomes will see their biggest decline on record during 2022 with living standards predicted to fall over 2%, worse than the fall in 2008 and worse than the falls in the 1970’s.
Lloyds Banking
Lloyds Banking Group has said it is shutting 60 bank branches across the UK, due to customers switching to online banking. The banking conglomerate said it will close 24 Lloyds Bank branches, 19 Bank of Scotland branches, and 17 Halifax branches, on high streets across Britain, in response to record levels of online banking usage
Gazprom
If the UK government has to take over the services of Gazprom in the UK and fulfil contracts based on current high prices, it is estimated the UK taxpayer could face a bill of around £4 billion!
Next
Next reported a surge in annual profit but downgraded its earnings expectations following the closure of websites in Ukraine and Russia. For the financial year that ended January 29, revenue was up 31% to £4.63b from £3.53b the year before, and pretax profit surged to £823.1m from £342.4m.
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 charge our members a fixed annual subscription irrespective of how high the debt value is!
It takes less than 17 minutes to see how you would benefit, do you have the time now?
No face-to-face meeting required – 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
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.