Business news 30 May 2024
Some of the business news that we thought would interest our members.
James Salmon, Operations Director.
PM confident over reducing the tax burden
Rishi Sunak says the Conservatives will lower the tax burden if re-elected, telling the Times: “After a difficult few years … our plan is working we can start cutting taxes.” The Prime Minister, who has already cut National Insurance and committed to increasing income tax thresholds for pensioners at a cost of £2.4bn, opted not to “pre-empt anything that’s coming later” when asked what cuts are on the cards. “We have already cut taxes for everyone in work, including young people. I’m not going to get drawn on the future,” he said. The Prime Minister also criticised Labour’s plans, claiming the party will raise taxes on small businesses.
Labour rules out windfall tax on bank profits
Labour has denied it plans to impose a windfall tax on bank profits if it wins the general election, with a spokesman for shadow Chancellor Rachel Reeves insisting she had “no plans” for further taxes on banks. Sources also say that Labour has no intentions to raise the surcharge on bank profits or introduce a financial transaction tax. This move comes as Labour seeks to win support from the City of London, amid concerns that it may be more likely than the Conservatives to target banks’ finances. Influential lobby groups, such as TheCityUK, have strongly opposed a windfall tax, arguing that it would make Britain less competitive.
Labour warned over pension tax plans
While Labour has committed to reintroducing the lifetime allowance cap on pensions, shadow Chancellor Rachel Reeves says the party would allow a workaround for NHS employees to avoid senior doctors leaving the workforce. Experts have warned that many workers are looking to take early retirement to ensure they have accessed their pensions before any changes take place, They are urging Labour to set out how its plans to reinstate tax on large pension pots will work. Graham Crossley, NHS pension expert at financial services firm Quilter, said: “The potential reinstatement of the lifetime allowance has caused considerable anxiety among doctors.”
Lib Dems: Tax social media giants to fund mental health support
The Liberal Democrats have proposed increasing taxes on social media firms and tech giants to fund mental health professionals for England’s state schools. The new workforce would be paid for by tripling the amount these companies pay in the Digital Services Tax. The Office for Budget Responsibility forecasts that the tax will raise about £760m in 2024/25, so trebling the rate is estimated to raise an extra £1.5bn.
PwC to become OpenAI’s largest customer
PwC has entered into a deal with artificial intelligence start-up OpenAI, becoming its largest customer and first reseller of the company’s enterprise product. PwC will roll out OpenAI’s flagship chatbot, ChatGPT Enterprise, to its 75,000 US employees and 26,000 UK employees. PwC last year announced plans to invest $1bn in generative AI across its US operations over three years and Joe Atkinson, PwC US’s vice chair and chief products and technology officer, noted that the OpenAI agreement is is an evolution of that.
Key clients desert PwC China as Big Four rivals circle
A number of high-profile PwC clients in China are switching auditors due to uncertainty around the scale of penalties the firm is facing over its audit of property developer Evergrande.
LinkedIn reveals the fastest-growing jobs for graduates
The fastest-growing job for new graduates in the UK is becoming a solicitor, according to a study by LinkedIn. The study found that the number of filled roles for solicitors saw the biggest percentage increase between 2022 and 2023. Company founders were the second fastest-growing job among new graduates. Other popular career choices for university leavers included becoming finance specialists and auditors. The study also revealed that diversity, knowledge of cultures, and belonging were common attributes among graduates. The study also emphasised the importance of in-person work for young professionals, saying it provides valuable learning and development opportunities and a sense of community.
MPs call for rethink on cryptocurrency rules
A group of Conservative MPs have voiced concern that the UK’s rules around cryptocurrency are “relegating Britain to the sidelines” of the digital currency industry. In a letter to the Prime Minister, they urge the Financial Conduct Authority to end a ban on retail investors accessing cryptocurrency-related investment products such as derivatives and exchange-traded funds (ETFs). The 11 signatories argue that the ban is pushing investors towards “Wild West crypto exchanges” instead of reputable firms. They also highlight that the US allows crypto ETFs, while many “European and Anglosphere markets all provide their citizens with access to crypto exchange-traded products and funds.” In 2022, Rishi Sunak said he wanted to make the “UK a global hub for cryptoasset technology” and the MPs argue that ending the ban would “help to unlock that potential.”
SMEs urge political parties to pledge support
A survey from retail banking group Shawbrook shows that 51% of small business leaders have “expressed apprehension” over the general election, with half saying political uncertainty was a “major concern.” Emma Jones, founder of small business support platform Enterprise Nation, said: “We’d like to see the next government stamp out late payments, boost the confidence and skills of female entrepreneurs to apply for more investment and properly resource HMRC to take away the complexity of just paying tax.” Small Business Britain founder Michelle Ovens said that while economic instability seen in recent years cannot be “eliminated,” planning and growth policies can help deliver a more positive future. Martin McTague, national chair at Federation of Small Businesses, has urged parties to commit to a “bold” Small Business Act that would help tackle the “systemic late payment culture, which is a huge brake on investment, planning and growth,” and address pre-profit taxes such as business rates, “to make them fit for purpose in a modern environment.”
Small firms expect big banks to reduce funding
A survey by online credit provider iwoca shows that that big banks are expected to further reduce funding for SMEs. The poll shows that 77% of SME finance brokers believe high street banks will decrease their appetite to fund small businesses. The survey also found that 86% of brokers expect increased demand for SME finance in the next six months, but 68% believe high street banks will further reduce access to working capital for SMEs over the next twelve months. The decline in lending to SMEs by high street banks has led to a rise in the popularity of specialist lenders, with 59% of SME lending now coming from outside big banks. Analysis of Bank of England data by iwoca shows that 77% of gross lending went to larger firms last year, up from 72% in 2014. The total value of lending to SMEs from high street banks has fallen by more than £1bn over the last year – from £15.5bn in the first quarter of 2023 to £14.2bn in Q1 2024.
PM: A vote for the Tories is a vote for rate cuts
Rishi Sunak says a vote for the Conservatives is a vote for lower interest rates, telling the Times that he shares the Bank of England’s optimism that the economy is “heading in the right direction” and that rate cuts were on the way. The Prime Minister said the Tories are “the party who has committed to bringing down inflation, which is a necessary condition for bringing down interest rates.”
Insolvencies
Appointment of Liquidators – 3LMK LIMITED
Appointment of Liquidators – INSOLVENCY SOFTWARE LIMITED
Appointment of Liquidators – QUOM LIMITED
Appointment of Liquidators – DONBROS LIMITED
Appointment of Liquidators – SECURE INSTALLATIONS (UK) LIMITED
Appointment of Liquidators – CLIFFTOWN SHORE DEVELOPMENTS LTD
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 last one was particularly deadly for suppliers fand we are still seeing elevated insolvencies as businesses struggle.
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.
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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.