Business news 27 January 2022
James Salmon, Operations Director.
Huge rise in number of families missing bill payments. Small Businesses and Mask Wearing. Workers look to quit after being forced back to office. UK factory costs rising at fastest pace since 1980. House price inflation shuts buyers out of the market. And more business news.
Huge rise in number of families missing bill payments
Do you sell to consumers on credit?
Research by consumer watchdog Which? has found that the number of families who have fallen into arrears with at least one household bill, including their rent, mortgage or energy bills, has risen by almost 50% in just a month, from 1.7m in December to 2.5m this month.
The study found that one in seven of those earning less than £21,000 were affected, with families citing rising energy and food costs and half of families saying they have cut back on heating and using domestic appliances to save money.
If you sell goods or services to individuals or families that could be affected the current energy and inflation crisis, you will want to consider the measures you need to take.
Small Businesses and Mask Wearing
As Plan B restrictions come to an end, many businesses are continuing to encourage customers to wear masks in their indoor spaces. Many are expressing concern about potential hostility from customers who do not want to comply. New research from the British Independent Retailers Association (BIRA) shows that half of its members are still nervous about the restrictions being lifted in England. However, 55% said they believed the restrictions being lifted would increase footfall and confidence on the High Street.
Workers look to quit after being forced back to office
A survey by messaging app Slack found that nearly a third of workers (29%) are considering changing jobs this year. The most common reason cited was a lack of pay rises and bonuses but one in six said they wanted to quit because they were being forced back into the office. Those in law, IT and telecoms, sales, and media and marketing are most likely to make a move. Chris Mills, of Slack, said: “With the significant worker reshuffle expected to continue this year, businesses must be in tune with what workers really want. Our research suggests that offering flexible or remote working, extra days off and salary bonuses, will help businesses attract and retain staff.”
CBI: UK factory costs rising at fastest pace since 1980
Cost pressures for manufacturers are rising at their fastest pace since 1980, the CBI has said, as output growth remains limited by bottlenecks and difficulties finding staff. The CBI warned that higher manufactured goods prices were inevitable. Rain Newton-Smith, the CBI’s chief economist, said government action was needed to ease cost pressures from spiralling energy bills and to encourage investment.
Automation puts one in five UK finance jobs ‘at risk’
A study by PwC and the Financial Services Skills Commission estimates that over a fifth of City finance jobs are at risk of being made redundant by 2025. Automation and changes to the way businesses operate could see 230,000 industry workers lose their jobs, the report warned. However, it also found that firms could save as much as £115m between now and 2025 if they invest in retraining current staff to meet new demands rather than axing jobs and hiring new employees. Christopher Box, a partner at PwC, said: “The financial sector has a major presence across the country and employs people at every stage of their career journeys, from school leavers to experienced hires. Reskilling current workers will make a big difference to their business models.”
Deloitte introduces flexible public holidays for UK staff
Deloitte employees in the UK will be able to take time off on days that are “most meaningful to them” as part of a drive to improve diversity and inclusion. “Our new approach means that our people can choose to take public holiday leave on the dates that are most meaningful to them, in addition to their contractual and purchased holiday allowance,” Jackie Henry, Deloitte’s managing partner for people and purpose, said. “They are still entitled to take public holidays on the days they fall, or they can take these days off at a different time of the year if they prefer,” she added. Grant Thornton brought in a similar policy earlier this month.
UK faces unintended consequences of post-Brexit financial regulation
The EU is to discard elements of Basel III rules to allow the bloc’s banks to lend more cheaply to corporates without credit ratings than UK banks can. Experts have called the EU move “unsound” and predicted UK regulators would follow global standards.
Oil
The Oil Price rose to a seven-year high close to $90 a barrel yesterday, supported by tight supply and geopolitical tensions in Europe and the Middle East that raised concerns about further supply disruption. But then fell as the US dollar strengthened following signs that the Federal Reserve will tighten monetary policy soon in the world’s biggest oil user.
House price inflation shuts buyers out of the market
Sky News analysis of new data shows that it is becoming increasingly difficult to buy a home, especially for people in the parts of the country on the lowest incomes. Krishan Shah, researcher at think tank the Resolution Foundation, says that house price inflation has outpaced wages since the ’80s. “Only 4% of young people between the ages of 25 and 34 have enough savings and earnings to access the typical first-buyer property,” he says. The South West was the region with the highest annual house price and rent inflation, closely followed by the East of England. Ceredigion on the Welsh coast experienced the highest inflation of almost 33% over the past two years, despite being in the bottom third of UK local authorities for average weekly wages. Shah says that this reflects a “race to space” as the pandemic has inspired many to move away from the city centre.
Fed signals March interest rate rise to combat inflation
The US Federal Reserve has signalled that rates could begin rising in March as the central bank finally moves to curb soaring inflation. Fed chair Jerome Powell added that the bond-buying programme would be wound down too in early March. American households are being battered by cost hikes of 7%, the highest level since 1982. Meanwhile, oil prices have surged past $90 a barrel for the first time since 2014 amid the stand-off between Russia and NATO over Ukraine.
Diageo
Diageo reported a rise in profit as strong demand in its off-trade business and recovery in on-trade bolstered results.For the six months ended 31 December 2021, pre-tax profit rose to £2.72 billion from £2.2 billion year-on-year as revenue increased 10% to £11.75 billion.
EasyJet
EasyJet said the Omicron variant of C-19 would continue to have a short-term impact, but the budget airline touted a strong summer ahead, with capacity returning to near pre-pandemic levels. In the three months through December, capacity was 64% of pre-pandemic levels, while the load factor was 77%, missing guidance of over 80%.
Tesla
Tesla reported record profits and said sales were predicted to rise 50% in 2022 but warned that supply chain disruptions will hold it back from introducing new models as focus had to be on the existing lineup.
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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.
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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.