Business news 29 November 2022
James Salmon, Operations Director.
FSB urges Shapps to stop energy suppliers inflating bills. Economy more volatile after series of shocks. Crypto fraud jumps by a third in UK. Government bank stalled on fraud squad meetings. City workers ignoring calls to return to offices. And more business news.
FSB urges Shapps to stop energy suppliers inflating bills
The Federation of Small Businesses (FSB) has written to Business Secretary Grant Shapps, urging him to prevent energy suppliers from “finding routes to inflate prices.” This comes after some small firms reported that their energy costs continue to climb, despite the Government’s energy bill relief scheme. While the six-month energy aid package means energy usage charges are capped for businesses, the FSB told Mr Shapps that members were concerned over “the implementation of the scheme and apparent lack of communication from suppliers is causing some concerns.”
The FSB wrote to Centrica, EDF, E.ON, Octopus, Ovo, and Scottish Power in September, asking them freeze standing charges and to not disconnect small businesses during the challenging winter months. It has criticised a “lack of responsiveness” from the suppliers. FSB policy and advocacy chair Tina McKenzie has called for “more transparency and support” over the aid package.
She has also urged ministers to tackle suppliers continuing to charge high bills. EnergyUK, the trade group for the sector, said it was “engaging with trade associations and members” on how to support businesses when government support expires in April.
Economy more volatile after series of shocks
The UK economy has become much more volatile compared to three decades ago, according to a poll by BDO. The firm said economic growth since the global financial crisis in 2008 has been far slower than in the decade and a half before. BDO said that in the first 15 years of its business trends analysis, Britain experienced “an almost consistent period of economic growth” but the 15 years since have seen sluggish output, weaker business optimism and soaring inflation. This has been driven by the banking crisis, the coronavirus pandemic and Russia’s invasion of Ukraine. Reflecting on the current economic climate, Kaley Crossthwaite, a partner at BDO, said: “Whilst it is positive to see the resilience of UK employment levels, as the cost-of-living crisis continues and the country navigates a period of recession, the UK is likely to see a more significant drop in employment along with further falls in optimism and output.”
Retail figures
UK Reail Sales slumped in November as consumers tightened their belts amid the cost-of-living crisis, according to the latest Distributive Trades Survey from the Confederation of British Industry. The CBI’s reported sales balance declined to -19 from +18 in October, coming in well below consensus expectations of +2.
Crypto fraud jumps by a third in UK
Action Fraud data shows that UK crypto fraud rose by a third in one year, with financial losses involving crypto hitting £226m in the year to September 2022 – a 32% year-on-year increase.
Government bank stalled on fraud squad meetings
The Mirror reports that officials from the government-owned British Business Bank (BBB) did not hold any formal meetings with the anti-fraud squad until after almost all Covid loans had already been handed out. While Government-backed loans of up to £50,000 were handed out from May 2020 as part of the Bounce Back Loans Scheme, the BBB, which was responsible for overseeing the scheme, only began holding formal meetings with the National Investigation Service and the National Crime Agency on September 16, 2020. By that time 80% of the £47bn handed out in loans had already gone out. The British Business Bank says officials had held discussions on fraud as part of roundtables with crime agencies before the formal meetings began. An estimated £6.7bn was lost to fraud and error across all of the Government’s pandemic support schemes for businesses and individuals
City workers ignoring calls to return to offices
City workers are ignoring calls from executives for staff to be in the office for a minimum number of days each week, according to a new report based on interviews with 100 workers in major companies. The study suggests that staff and managers in the financial and professional services sectors are employing “bespoke” working models that align with their specific operational needs. The report argues that remote-first policies have no detrimental impact on productivity, with respondents saying that flexible working policies have the potential to significantly boost productivity and provide greater efficiency. Dr Grace Logan, an economist at LSE, warns that demands from top level executives that workers come in for a minimum number of days each week are “ego driven rather than having the best interests of the business in mind.” Anna Lane, president of Women in Banking and Finance, said managers demanding “rigid” schedules, requiring workers come in for “3,4, or 5” days each week will “lose out to their competitors who do not.”
Over 55s most likely to lose their jobs to robots
Staff aged over 55 are more likely than any other group of workers to lose their jobs to robots, research by University College London economists shows. The study shows that nine in 10 workers aged over 55 were made redundant as robot technology replaced humans for “routine” tasks. However, 70% of younger workers kept their jobs after retraining and switching to higher skilled more “abstract” jobs. It is estimated that as many as 10m UK workers are at risk of being replaced by robots within 15 years, with PwC research showing that 30% of jobs in Britain are potentially under threat from breakthroughs in AI.
National Grid will not activate emergency winter plan
National Grid has called off a plan to activate an emergency initiative to pay consumers to use less energy at peak times to help ration energy supplies. The utility company had been considering whether it would begin the first ever live run of its Demand Flexibility Service (DFS) today but yesterday announced that it is “no longer considered to be a requirement for the service.” If used in the future, the scheme will see consumers receive payouts if they limit the use of electrical items during peak times of 4pm to 7pm. National Grid had been ready to trigger the scheme following a warning that Britain’s energy supplies were looking tighter than usual this week. However, it now says it is “confident” it will be able to manage margins and that “demand is not at risk.” Octopus and British Gas are among suppliers taking part in the DFS, which has been tested twice but has not yet run live.
Demand for London offices remains strong
Demand for office space in central London has remained strong despite the shift toward remote working and the economic downturn. Figures from BNP Paribas Real Estate show that uptake of central London offices rose by 63% in the first nine months of this year, compared to 2021. London saw the second highest spike in take-up in Europe, with only Dublin seeing a steeper increase. James Strevens, head of City leasing at BNP Paribas Real Estate, said it is “no surprise that demand in London has seen such a sharp recovery,” adding: “As one of Europe’s largest urban economies, it remains hugely competitive on the world stage.” The report shows that the vacancy rate in central London was less than 9% at the end of Q3, with the rate in the Square Mile slightly higher at 11.4%. Ben Thomson, head of tenant representation at BNP Paribas Real estate, commented: “Despite the hybrid working revolution, and some occupier consolidation, overall demand for office space has been incredibly robust this year.”
Business calls for UK to delay new OECD corporate tax rules
UK firms have urged ministers to delay an internationally agreed 15% corporate tax rate, saying they have insufficient time to prepare and that the OECD has yet to clarify the finer details.
UK households set to spend 65% more this Christmas
WorldRemit’s 2022 Cost of Christmas Study suggests that UK households are set to spend 65% more this Christmas than last year due to inflation and the rising cost of living. The typical outlay over the Christmas period is estimated to hit £905, including around £145 for food and £590 on gifts.
Easyjet
easyJet reported a “record bounce back” in the year ended 30 September, with a largerise in annual revenue and a significantly narrowed loss. The low-cost airline’s pretax loss narrowed to £208 million from £1.04 billion the previous year, as revenue multiplied to £5.77 billion from £1.46 billion the year prior.
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 offer our members a fixed annual subscription regardless of how high the debt value maybe!
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
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.