Business news 28 November 2024
Some of the business news that we thought would interest our members.
James Salmon, Operations Director.
Concerns rise over UK economy
Recent data indicates that households are increasingly anxious about the state of the economy, particularly following Rachel Reeves’s Budget, which has raised concerns about a potential UK recession. The BRC-Opinium tracker shows a decline in consumer confidence, with only 19% of respondents feeling optimistic about the economy in the next three months, down from 21%. Helen Dickinson, chief executive of the British Retail Consortium, remarked that “many are worried about the economy in the lead up to Christmas.”
Labour plans crackdown on employment rights violations
The UK Government is set to enhance sanctions against employers who violate employment rights, particularly concerning minimum wage and visa regulations. Migration minister Seema Malhotra stated: “No longer will employers be able to flout the rules with little consequence or exploit international workers.” The proposed changes, part of the Employment Rights Bill, aim to double the sanction period to two years for serious breaches and extend enforceable action plans from three months to a year. The Home Office has noted that overseas workers, especially in the care sector, are particularly vulnerable to exploitation, with 450 sponsor licences revoked since July 2022.
Government aims to boost small business profits through sustainability
A Government-backed review has been initiated to assist millions of small UK businesses in enhancing their profitability through sustainable practices. Spearheaded by the campaign group Small Business Britain, the review aims to uncover the financial advantages of adopting green initiatives. Jointly chaired by small business minister Gareth Thomas, Barclays’ Nick Stace, and Small Business Britain founder Michelle Ovens, the initiative addresses the limited uptake of sustainability among the UK’s 5.5m small businesses, which contribute to 50% of business-driven emissions. Thomas said that “sustainability isn’t just good for the planet — it’s great for business too.” The review will include research and consultations, with a final report expected in May 2025, providing actionable recommendations for supporting small businesses in their sustainability journey.
PM refuses to repeat pledge vow not to raise taxes again
Prime Minister Sir Keir Starmer has distanced himself from Rachel Reeves’ commitment to businesses regarding no further borrowing or tax increases. The Chancellor’s Budget, which included £40bn in tax rises, has faced backlash from major UK businesses, with critics like the McVitie’s boss expressing concerns over the viability of investing in the UK. Starmer accused Tory leader Kemi Badenoch of wanting the benefits of the budget without the costs, highlighting her unfunded commitments. Reeves later echoed Starmer’s sentiment, stating: “I’m not going to write five years’ worth of budgets in the first few months as Chancellor of the Exchequer.”
IPPR wants higher taxes on wealth
According to a new report by the Institute for Public Policy Research (IPPR), the UK’s tax system is increasingly unfair as wealth grows faster than earnings. Tom Clark, the report’s author, stated: “Wealth begets wealth,” highlighting the advantages that affluent families provide their children, such as elite education and social connections. The report suggests that the Government should consider increasing taxes on wealth, including inheritance tax, to address the disparity between the wealthiest and the less affluent. The top 10% of wealthiest individuals own 57% of the UK’s wealth, while the bottom 30% possess just over £1 in every £100. The IPPR warns that without intervention, the gap between the “have-a-lots” and “have-nots” will continue to widen, limiting opportunities for millions.
Storm Bert’s costly aftermath revealed
Insured losses from Storm Bert in Britain are projected to reach between £250m and £350m, primarily due to flooding of residential homes, according to PwC. This estimate surpasses that of Morningstar DBRS, which suggested losses would be below £150m to £200m based on historical data. Mohammad Khan, head of general insurance at PwC UK, stated: “The losses will principally arise from home insurance claims due to damage from flooding and high winds.” The storm has already caused significant disruption, including four fatalities, and the potential impact of Storm Conall may further exacerbate the situation.
Mitchells & Butlers warns of rising costs
Mitchells & Butlers, the owner of All Bar One, has reported a significant rise in operating profit from £98m in 2023 to £300m in 2024, driven by a 5.3% increase in like-for-like sales. However, the company cautioned that changes in the National Living Wage and employer national insurance contributions will lead to a “sharp” rise in wage costs, estimating cost headwinds at around £100m this financial year. The warning comes as Sacha Lord, a night time economy adviser for Greater Manchester, shared figures showing pubs with a £100,000 rateable value will see business rates jump by £19,000 per year, meaning they will have to sell an extra 60,000 pints a year to cover the extra costs.
Tax raid good for farming, says Reed
The Environment Secretary told the Lords environment and climate change committee on Wednesday that Labour’s tax raid on farmers will be good for farming and food production. Steve Reed claimed that charging estates over £1m with a 20% tax bill from April 2026 could in fact result in more land being used for farming rather than less as land values would fall. He said: “The biggest source of land going out of agricultural production isn’t the changes that have just been made. It’s the fact that there’s too big an incentive for non-farmers, wealthy people, to come in and buy land as a means of reducing their inheritance tax liability.” Meanwhile, Jeremy Moody, secretary of the Central Association of Agricultural Valuers, said that 2,500 farmers a year will be forced to pay the tax – far more than the Treasury’s estimate of 500.
Levy on gambling firms puts 2,500 jobs at risk
The Government has been warned that a £100m annual levy on gambling firms will cost the industry 2,500 jobs. Betting companies have until now paid a voluntary levy to help prevent and tackle gambling-related harms, but Labour is pushing through Conservative plans to put the duty on a statutory footing to ensure all companies paid their fair share. The duty will be set at 1.1% for online betting and 0.5% for “land-based” alternatives, such as high street bookmakers. The Betting and Gaming Council (BGC), which represents the regulated UK betting and gaming industry, said: “The proposed levy rate for independent bookmakers is a hammer blow to the 500 small independent betting shops and the 2,500 people who work in them, which risks job losses and venue closures, while contributing a small amount to the overall levy total.”
City regulators harming UK economy with focus on net zero and diversity
The shadow business secretary has warned that financial services regulators are devoting too much time to net zero and diversity agendas when they should be focussed on growing the economy. Andrew Griffith told peers that politicians and regulators have overseen an tremendous shift in the City away from risk-taking, severely harming the economy, and instead directing energies towards net zero and diversity. The former City minister said major reforms were needed to “get us back the important mojo that our financial and professional services require.” He told the Lords financial services regulation committee: “If you want to change the culture of an organisation, you have to change the incentives, often change the scope of what it does, and change the people.”
Trump’s energy pick slams UK green drive
Chris Wright, Donald Trump’s nominee for US energy secretary, has condemned the UK’s net-zero strategy, claiming it has made the nation poorer. In a report from Liberty Energy, he stated: “The UK has continued aggressive climate policies that have driven up energy prices for its citizens and industry.” Mr Wright said the UK had achieved its cuts in greenhouse gas emissions mainly by importing more. He said: “Things made at energy intensive manufacturing [plants] powered by natural gas in the Midlands of England, which are now shut down, are now built at a coal powered plant in China or Vietnam or Indonesia. That’s not a climate policy, right? You get more greenhouse gas emissions, more air pollutants from burning coal than you burn from natural gas. They just moved it out of their country and those blue collar jobs went with them.”
Property affordability improves
Recent data indicates that housing affordability in Britain has improved, with slower house price inflation and stronger wage growth. According to Halifax, the average house price has increased by 3.8% to £292,508, while full-time workers’ earnings have risen by 5% to £44,667. This shift has led to a decrease in the house price-to-income ratio, now at 6.55 times average earnings, down from 6.62 last year and significantly lower than the pandemic peak of 7.24. Amanda Bryden, head of mortgages at Halifax, stated: “Housing affordability has improved over the past year,” but acknowledged that “buying a property remains a significant challenge for many.”
Former HMRC officer helped husband launder £3.3m
An ex-HMRC compliance officer has been handed a 14-month suspended prison sentence for helping her husband launder £3.3m to fund their lavish lifestyle. Kuldip Badesha was caught by investigators after they found she was leading a lifestyle beyond her means. Her husband, Ranbir Singh, was jailed for six years
Latest Insolvencies
Appointment of Administrator – HAMPSHIRE COMMUNITY BNK LTD.
Appointment of Administrator – CASPER & COLE LIMITED
Appointment of Administrator – KIDSON HOMES LTD
Appointment of Liquidators – TAMETREE PROPERTIES LIMITED
Appointment of Liquidators – AREP LIMITED
Appointment of Liquidators – DREW INVESTMENTS LIMITED
Appointment of Liquidators – FLIPIT LIMITED
Appointment of Liquidators – LIZ SYNNOTT LIMITED
Appointment of Liquidators – TINKA GAMES LIMITED
Appointment of Liquidators – PETER MOORE WEALTH MANAGEMENT LIMITED
Appointment of Liquidators – STEVENSON JAMES CONSULTING LIMITED
Appointment of Liquidators – NASH INVESTMENT HOLDINGS LIMITED
Petitions to wind up (Companies) – PS7 (EUROPE) LTD
Petitions to wind up (Companies) – DSD ELECTRICS LTD
Winding up Order (Companies) – S L K DECORATORS LTD
Appointment of Liquidators – APOLLO JANITORIAL SUPPLIES LIMITED
Appointment of Liquidators – BOFAML INVESTMENTS
Petitions to wind up (Companies) – NESAM TRANSPORT SERVICES LTD
Appointment of Liquidators – CARROWMORE PROPERTY (U.K.) LIMITED
Petitions to wind up (Companies) – BRICK CONSTRUCTION (READING) LIMITED
Petitions to wind up (Companies) – S J MONK PLUMBING & HEATING LTD
Petitions to wind up (Companies) – INSIDE OUT PROPERTY WORKS & LANDSCAPING LTD
Appointment of Administrator – POLOPLEX LIMITED
Appointment of Liquidators – F.V.G. (HOLDINGS) LIMITED
Appointment of Liquidators – PMG MARKETING LIMITED
Appointment of Liquidators – SALGEE INVESTMENTS
Appointment of Liquidators – VALLADALE FISHING COMPANY LTD
Appointment of Liquidators – B DOWNES.COM LTD.
Appointment of Administrator – DAVID BROWN AUTOMOTIVE LIMITED
Appointment of Liquidators – ARGENTUM EXPLORATION LIMITED
Appointment of Liquidators – SWYNNERTON INVESTMENTS LIMITED
Petitions to wind up (Companies) – DESIGNS U.S.A. LIMITED
Petitions to wind up (Companies) – AERISTECH 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.