Business news 31 August 2023
James Salmon, Operations Director.
Fraud, Car Insurance, China, Tax cuts, equal pay, hydrogen levy, savings, mortgages, water companies, insolvencies and more business news that we thought would interest our members.
Fraud
The latest NICE Actimize Fraud Insights Report reveals that attempted fraud transactions have skyrocketed by 92% and attempted fraud amounts have soared by 146%.
Car Insurance
The CEO of Admiral warned UK car drivers that insurance premiums are set to continue to rise as providers face rising costs.
Foreign Secretary heads for Beijing
In the first visit in 5 years, Foreign Secretary James Cleverly on behalf of the UK Government set of for China to take advantage of the thaw in tensions between the US and China to reset the UK’s relationship.
UBS
UBS posted a global-record for banking, second-quarter profit of $28.88 billion, well exceeding the projections of $12.8 billion made by analysts. It was the Swiss bank’s first set of results since its takeover of Credit Suisse.
Chancellor rules out major tax cuts this year
Jeremy Hunt has ruled out significantly cutting taxes before the end of this year, citing high inflation and economic volatility. The Chancellor is still hoping to reduce the tax burden in a pre-election Budget, but has emphasised that tackling inflation and balancing the books must take priority. The Autumn Statement, scheduled for October or November, is now too late for an economic turnaround. Conservative MPs expressed dismay at the decision, calling for cuts to inheritance tax and corporation tax.
Women still have right to equal pay, says UK
The UK Government has announced that it will reinstate equal pay protection for women after an EU law guaranteeing it was scrapped. The protection, which aimed to help workers whose jobs had been outsourced, was among some 600 EU laws which the Government announced in May that it would scrap by the end of the year, in the retained EU law bill. However, the government has now committed to reinstating the right under UK law. The Government’s Equalities Hub spokesperson stated that there will be no reduction in equal pay protections and that new legislation will be laid in Parliament by the end of the year. Labour’s shadow women and equalities secretary, Anneliese Dodds, criticised the Government’s U-turn and questioned their commitment to protecting equal pay rights for women.
Government scraps hydrogen levy, but households will still pay
The Energy Secretary has scrapped the consumer “hydrogen levy” that would have burdened households with an extra £120 on their energy bills to pay for hydrogen production and vowed to tax gas shipping companies instead. Grant Shapps tabled an amendment on Wednesday to the upcoming Energy Bill, which would prevent the levy being paid for via energy suppliers and their customers. However, experts dismissed the move as a PR stunt that would still see consumers paying the bill. Adam Bell, a former government energy official who is now a private consultant, said: “If you think shippers won’t jack up their prices in response to this – which will be passed through to consumers – I have a gas transmission pipe to sell you.” He argued that it would make more sense to fund hydrogen subsidies through general taxation, adding: “But this way it doesn’t end up on the Exchequer’s books.”
NS&I puts pressure on banks with market-leading 6.2% bond
High street banks are under pressure to raise savings rates after the UK Government’s savings bank, National Savings & Investments, raised the interest rate on its one-year fixed bonds from 5% to 6.2% – their highest level since they were launched in 2008. The move means NS&I has overtaken challenger banks and others to take the top spot in the savings best-buy table for one-year fixed-rate deals. The next best fixed-rate savings accounts on the market pay 6% – offered by challenger banks Castle Trust Bank, Ikano Bank, Investec, Raisin and Close Brothers. Sarah Coles, the head of personal finance at the investment platform Hargreaves Lansdown, said: “NS&I has gone all-in with the rates on these one-year bonds, and savers are likely to snap them up.”
Mortgage approvals drop nearly 10% month-on-month
The number of mortgage approvals made to home buyers fell by nearly 10% between June and July, according to Bank of England figures. Mortgages are priced off swap rates, which are heavily influenced by the longer-term outlook for the economy. Martin Beck, chief economic adviser to the EY ITEM Club, said: “While swap rates are lower than their early-July peaks, they are still well above the levels seen in early summer. And the scale of the recent rise in interest rates… means housing market activity seems destined to remain sluggish for the foreseeable future.”
Water companies claim £97m in tax rebates despite sewage dumps
Ten water companies in the UK paid no tax last year, despite some of them releasing sewage into rivers and seas, according to analysis. The water industry received nearly £97.1m in tax rebates through the post-Covid “super deduction” scheme introduced by Rishi Sunak. Northumbrian Water reported the highest tax rebate of £21.9m, while paying out a £105m dividend. The number of firms paying no tax last year increased compared to the previous year, when only one company paid no tax. Water companies have faced criticism for historic underinvestment, leading to sewage dumping in England’s waterways. The Liberal Democrats have called the tax rebates the “Sunak Sewage Tax Cut” and are demanding an investigation by HMRC. The Government has defended the tax rebates, stating that investment and regulation are key to addressing sewage pollution.
NHS expansion plans would send income tax rates up 6%
The Institute for Fiscal Studies (IFS) has warned that a plan by the NHS to hire almost a million more staff over the next 13 years will force the Government to raise taxes, cut spending or borrow billions more. Amanda Pritchard, NHS chief executive, said in June that the massive expansion of its workforces was necessary to cope with Britain’s ageing and increasingly sick population. However, Max Warner from the IFS, said the Government would have to find an extra £50bn in today’s money to fund a ballooning NHS budget. Raising such a sum would be equivalent to raising all income tax rates by six percentage points or hiking VAT from 20% to 27%.
Superdry shares suspended after retailer misses accounts deadline
Shares in Superdry were suspended on Wednesday after the retailer failed to publish its annual accounts on time. The company said it expected to publish its results by the end of this week as it worked with the auditor RSM to “complete the final technical points” within its full-year figures. “The board confirms that the delay is a result of normal procedures taking longer than anticipated during the first year that RSM are auditing the company,” it said in a statement.
Babylon sells UK operations to US digital health firm
The UK arm of the digital healthcare company Babylon has been rescued by eMed Healthcare, a digital health company. as part of an insolvency process. Alvarez & Marsal confirmed on Wednesday that it had sold Babylon’s clinical services business, which includes its GP at Hand app that serves 100,000 NHS patients, and its private clinical and corporate health offerings to the US business
China
China Factory Activity in August shrank for a fifth straight month, while non-manufacturing activity hit a new low for the year, in signs that the slowdown in the world’s second-largest economy may not yet have bottomed out.
Adani Group
A consortium of investigative journalist have found documents supporting the claim that the Adani group alledgedly manipulated the companies share price as claimed by the Hindenburg research group in January although the company continues to deny the claims.
County Garden
Chinese property titan, Country Garden, posted a loss of 51.5bn yuan – £5.5 billion – and warned it could default on its debt
Latest Insolvencies
Petitions to wind up (Companies) – STRADBROKE VILLAGE LIMITED
Petitions to wind up (Companies) – MEGMARSTER LTD
Petitions to wind up (Companies) – R FARRELL PLANT HIRE LIMITED
Petitions to wind up (Companies) – BH MADE LTD
Appointment of Liquidators – KDR (FORDER VALLEY) LIMITED
Petitions to wind up (Companies) – XENON CONSULTANCY LTD
Appointment of Liquidators – EASTERN TELEPHONES LIMITED
Appointment of Liquidators – BUCKINGHAM CREATIVE SOLUTIONS LIMITED
Appointment of Liquidators – BSI SPEEDWAY LIMITED
Petitions to wind up (Companies) – REBECCA TRANS LTD
Winding up Order (Companies) – AMITY COLLEGE LIMITED
Appointment of Liquidators – ROPEMAKER RB HOLDINGS LIMITED
Appointment of Liquidators – PMS ENGINEERS LTD.
Appointment of Liquidators – FINSBURY SQUARE 2018-2 PLC
Appointment of Liquidators – SISKINS (KESWICK) LIMITED
Appointment of Administrator – OPTIMA ENERGY SYSTEMS LTD
Appointment of Liquidators – PETER W. FOSTER LIMITED
Appointment of Liquidators – MIDSHIRE BUSINESS SYSTEMS (COMMUNICATIONS) LIMITED
Appointment of Administrator – OPTIMA ENERGY MANAGEMENT HOLDINGS LTD
Winding up Order (Companies) – UK SCAFFOLDING SPECIALISTS (LONDON) LIMITED
Appointment of Liquidators – AWT RUNOFF LTD
Appointment of Liquidators – BEST OF LIMITED
Appointment of Liquidators – FRANCIS CUPISS LIMITED
Appointment of Liquidators – PRINCETON HOLDINGS LTD
Appointment of Liquidators – INPHORM LIMITED
Appointment of Administrator – PARKES UTILITIES SURFACING LTD
Appointment of Liquidators – WILDPEAR STUDIO LIMITED
Appointment of Liquidators – MICHAEL T HANN LTD
Petitions to wind up (Companies) – SPV PL 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 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!
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.