Economy needs further support –  business news 20 October 2020.

James Salmon, Operations Director.

King says the economy needs further support, the chancellor has been warned that tax rises would be self sabotage, house prices, warning over a litigation storm after insolvency rules restored,  covid-19, market and other business news.

Here are CPA we want to share the business news stories we have seen that we think will affect our members and readers. Many of us are busy fighting to protect our businesses and therefore might have missed some of the news that could impact small businesses, their owners and those that sell on credit.

King: Economy will need further support

Former Bank of England (BoE) governor Mervyn King has warned ministers the economy will need additional support in the coming months, with the coronavirus crisis continuing to pose a threat.

The economy needs further support and now is not the time to turn off the taps.

He suggested that the furlough scheme may need to be extended due to the impact of local lockdowns, saying: “The more stringent the restrictions, the more generous the support needs to be.”

Noting that a number of European countries have opted to extend their equivalent of the furlough scheme into 2021, Mr King added: “I think that we are going to end up doing something very similar”.

Speaking during a podcast with former Chancellor Alistair Darling, Mr King said the national debt placed no “immediate constraint” on what the Treasury can spend in response to the pandemic. He also warned the BoE against rushing to adopt negative interest rates, saying they would be unlikel y to have a “significant impact” on the economy.

Chancellor told tax increases now would be ‘self-sabotage’

The Centre for Policy Studies has suggested that Rishi Sunak should follow the lead of Australia and New Zealand and ease the tax burden on business during the coronavirus crisis.

The think-tank has urged the Chancellor to refrain from increasing corporation, capital gains or dividend taxes, saying that while tax increases will be needed down the line to cover the cost of the pandemic, upping levies during a recession would amount to an act of “self-sabotage”.

Australia, it is noted, is raising income tax thresholds, while New Zealand has introduced breaks for businesses, allowing firms to carry forward losses incurred in 2020/21 to offset their corporation tax bills the year after.

Lawyers warn over insolvency rules

Lawyers are warning company bosses of a potential litigation storm after the temporary relaxation on insolvency laws rolled out amid the coronavirus crisis came to an end.

James Whitaker, a commercial litigation partner at Mayer Brown, says that before the pandemic there were a “marked increase” in investigations and prosecutions against individual directors who fall foul of the rules, facing accusations of bribery, fraud, and breaking insolvency and competition laws.

This, he suggests, “reflects the general trend over recent years of greater individual accountability for corporate decisions and actions”.

Property prices hit record high

The average price of a home in Britain hit a new record high of £323,530 in October, according to figures from Rightmove.

Asking prices were 1.1% higher than in September, and 5.5% higher than a year ago. Rightmove predicts that the annual rate of price growth could peak at around 7% before the end of this year.

However, the property portal said there were signs that activity levels may be easing off. In September the number of sales agreed was up by 70% year-on-year, but that figure has fallen to 58% in October.

Covid-19 general news

There were 18,804 new cases in the UK on Monday. With 439,890 worldwide, cases top 40.4 million as deaths pass 1.1 million.

Boris Johnson  set a deadline of noon today for political leaders in Manchester,  to agree to tighter coronavirus restrictions or face new rules being imposed against their will.

In vaccine news, Moderna Inc. said it expects interim results of its Covid-19 shot in November. The first trials to deliberately infect people with covid-19 to accelerate the development of vaccines could occur in the U.K. next year as part of an agreement reached by the government with OPen Orhpan Plc.

Wales will go into a “short, sharp” national lockdown from Friday until 9 November. People will be told to stay at home and pubs, restaurants, hotels and non-essential shops must shut. Primary schools will reopen after the half-term break, but only Years 7 and 8 in secondary schools can return at that time under new “firebreak” rules.  Wales are also banning visitors from anywhere in England under Tier2 or 3 restrictions.

Ireland returned to a lockdown, closing non-essential stores, bars and restaurants for at least six weeks, with people urged to stay within five kilometers of their homes.

The new boss of British Airways has demanded that the self-isolation requirement for international arrivals is replaced by C-19 tests before departure.

Trump has launched an attack on Fauci, attempting to shift the blame for the poor handling of the outbreak on the nations leading scientist on the Covid response, claiming at one point, without explanation, that had he followed the advice of the director of the National Institute of Allergy and Infectious Diseases, hundreds of thousands more Americans would have died. The attacks followed an interview with Fauci on “60 Minutes” on Sunday, where he said he wasn’t surprised that the president had contracted Covid-19 himself.  Poll show Fauci is among the mosttrusted figures during the outbreak while polls rate Trumps handling poorly.

Lockdown threatens pubs

Ben Chapman in the Independent looks at the impact localised coronavirus restrictions will have on pubs, saying revenues across the industry are predicted to be down 50% in the next six months, while analysis suggest more than a quarter of the UK’s 39,700 pubs may not survive the pandemic. Russell Nathan, head of hospitality at HW Fisher, warns that a Tier 2 lockdown is going to be “catastrophic” for pubs and restaurants.


Boris Johnson has knocked back the EU’s offer to restart Brexit trade talks, saying the olive branch from Brussels did not provide a “basis to resume talks”.

The U.K. rejected the European Union’s effort to re-start the deadlocked trade negotiations, saying the block had to give more before it is prepared to re-start talks that Prime Minister Boris Johnson stopped on Friday, saying that a trade deal was unlikely.

“The EU still needs to make a fundamental change in approach to the talks, and make clear it has done so,” Britain’s chief negotiator David Frost said in a tweet after meeting his EU counterpart Michel Barnier. Johnson’s office still described the discussion as “constructive” — a view echoed by officials in Brussels, who said they have a better understanding of what they have to do to reopen the negotiations.


The FTSE 100 fell 0.6% yesterday while the 250 climbed 0.2% with modest gains across the channel in mainland Europe.  The oil price steadied as a boost to libyan output and rising covid cases offset renewed hope for a US stimulus package (U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin “continued to narrow their differences” on a coronavirus relief package) and a vaccine by the end of 2020. Gold gained as the dollar retreated and investors looked for a haven ahead of the election.

In the US stocks reversed initial gains to close sharply lower ahead of a key deadline set by House Speaker Nancy Pelosi to reach a deal on new coronavirus stimulus before the election. The DOW dropped -1.44%, the S&P 500 dropped -1.63% and the NASDAQ dropped -1.65%.

CVA on the menu for café chain

Café chain Bakers + Baristas has urged suppliers and landlords to approve a deal that would reduce costs amid “ongoing uncertainty” surrounding coronavirus. It has hired BDO to put forward a CVA.

Buyer set to land Flybe

Airline Flybe says Cyrus Capital has bought its “brand, intellectual property, stock and equipment” for an undisclosed sum, with it suggested that the carrier, which collapsed in March, could be back in the air in 2021. EY’s Simon Edel, joint administrator of Flybe, said: “The restart of this iconic brand will provide a potentially significant boost to aviation jobs, regional connectivity and local economies.”


Britvic said it had reached an exclusive 20-year franchise bottling agreement with PepsiCo to produce and sell its carbonated soft drink brands including Pepsi, 7UP and Mountain Dew, in the UK. Britvic also provided an update on performance, which it said would continue to be hurt by renewed lockdowns in 2021, though adjusted earnings before interest, taxes, depreciation and amortisation for the full year 2020 was expected to be ‘slightly ahead of current market consensus.’

City finance vacancies down over 50% on last year

Job vacancies in the City’s finance sector have fallen by 54% year-on-year, according to data from Morgan McKinley, underlining the year’s tough third quarter compared to the same period in 2019. Researchers found firms were advertising 3,810 roles in the three months to the end of September, up from 2,490 in June. The London Employment Monitor report suggests the loss of work opportunities has been the result of a perfect storm of pandemic-prompted uncertainty, its impact on banking profits and also Brexit concerns.

Boohoo given something to cry about in auditor hunt

The Telegraph says that fashion firm Boohoo has yet to secure a new auditor following PwC’s decision to step down having reportedly cited reputational concerns. Sources claim that while EY has yet to rule out the move, Deloitte, KPMG, BDO and Grant Thornton have all decided not to bid for the contract, with the Telegraph noting that KPMG cannot apply for the role for at least a year, with consulting work for Boohoo meaning there is a potential conflict of interest. The paper highlights that the Department for Business, Energy and Industrial Strategy has legal powers to appoint an auditor to public companies that cannot find one on the open market. Meanwhile, several papers report that Boohoo’s share price dipped by almost a fifth yesterday, with news of PwC’s decision to resign hitting the retailer’s value. Elsewhere, Kate Burgess in the FT looks at PwC’s decision, saying it is rational to weigh the risks of working with a business whose culture is facing increasing scrutiny.

Government urged to adopt ‘pension bonus’ plan

Pension industry figures have said that low earners denied free pension cash given to better paid colleagues should be compensated with a bonus from HMRC. A tax flaw means an estimated 1.5m poorly paid staff lose Government payments into their pensions, depending on the type of scheme operated by their employer. The Treasury put forward four potential fixes over the summer, and asked for feedback and other suggestions in a consultation which has just closed. A solution where HMRC would use information it already holds on lower earners to pay money into their retirement funds is favoured in responses made public by pension groups. The other options involve either clawing back money from low earners who do get the cash at present or two methods forcing employers to change how they administer pensions.

Government urged to cut tax-free Isa allowances to support young people

The Social Market Foundation (SMF) think-tank has urged the Government to cut tax-free Isa allowances for older people and use the money to help out young people on low incomes. “HMRC data show that Isa investors aged 65 and over hold an average of £49,161 in tax-free accounts, compared with £5,629 for people under 25,” the SMF said.

Three UK water companies hang on to tax haven subsidiaries

Water companies Southern Water, South East Water and Welsh Water still have subsidiaries in the Cayman Islands three years after Ofwat advised firms against having financial holdings in tax havens.

Don’t let Covid-19 bust your business!

It will if your cash flow dries up, either sooner or later.

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 sometime to come.

CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. Above all tactfully, because maintenance of goodwill is paramount.

To meet the needs of creditors in the current crisis, we have designed a “critical care” package especially tailored for the situation.

  • The annual package costs start at very low rates
  • A minimum performance warranty is provided
  • Several complimentary services included

Clients instruct CPA on-line via their PC or phone, completely user-friendly. Your late paying customers are told to pay you direct (not to us).

A very recent report shows a 23% increase in the number of unpaid invoices since March 11th THIS YEAR – are you getting a build-up of late payers?

Right now, overdue accounts must be a concern and CPA has a great track record of encouraging slow-payers to pay their suppliers quickly.

It takes less than 17 minutes to see how you would benefit, do you have the time now?

No face-to-face meeting required – just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email today.

When you see your money come in, you will be so glad you used CPA.

Do you sell on credit?

With pressures on the cash flow it is essential that you stay on top of the credit limits you grant customers and watch carefully for any late payments.

Those customers will look for the easiest option to boost their cash-flow. Don’t let it be you.

You can’t just assume your customers can and will pay you eventually, no matter how big their name is.

It is essential to have credit management systems in place to monitor and check your customers credit worthiness.

It is also best practice to use a trusted third party like CPA to make sure you are paid on time by customers, no matter how good a name they have.

About CPA

The Credit Protection Association can help!

Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.

At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.

We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.

Companies in trouble usually have very bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.

If you supply on credit, help us help you identify the risks.

Why use a third party collector?

As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When your customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.

Over the years we have collected billions in overdue invoices for our customers.

Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.

You might be hesitant about contacting a debt collection agency. What are they going to be like?

Can they help your particular type of business?

There is no need for concern. CPA are courteous, helpful and very probably have had direct experience of working with your type of business.

Debt collection agencies are not all alike.

Success lies in both recovering money and keeping customers happy. The Credit Protection Association was founded in 1914 and has helped tens of thousands of UK businesses to collect outstanding payments and reduce the risk of incurring bad debt. We believe that creditors deserve to be paid for the work or goods they have supplied but we fully understand the need to maintain
the best possible relationship with customers!

At The Credit Protection Association, we provide solutions, advice and back-up in all areas relating to the supply of services or goods on account. Client-members receive everything they need from a single source to reduce debtor days and write-offs.

The Credit Protection Association has helped has assisted tens of thousands of UK businesses with their credit control requirements, since the First World War.

We are polite, firm and efficient when it comes to recovering outstanding debt.

“We have used CPA for a number of years now. The website is easy to navigate around with lots of helpful reports. The staff are always at hand and very friendly. CPA has helped us reduce our debt over the years and keep track of potential issues with our customers.”
~ CPA client in Buckinghamshire

“The service from CPA has proved to be everything that you said it would be. We have already seen a huge benefit. We have had a number of overdue accounts paid promptly and directly to us. It is also a huge weight off our mind to know that once we have passed an overdue payment over to you, you take care of everything whilst keeping us informed.
~ Credit Controller client in Warrington

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections


Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.

Call us today

0330 053 9263

CPA is passionate about late payment

The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.

We are extremely passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs, with cash flow difficulties being the single biggest killer of Britain’s small businesses.

If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.

As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.

Under little used legislation, you are entitled to compensation for those late payments.

You put up with the PAIN – now claim the GAIN!

Now you can boost your own cash-flow.

CPA can help unearth the those hidden treasures.

We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.

Did you know that your business is entitled to a minimum of £40 for every commercial invoice paid late to you over the past 6 years?

How many of your invoices are paid late each month – 20, 50, 100 or more?

At £40 per invoice that’s claim of £57,600, £144,000, £288,000 plus interest. The more invoices the bigger the claim! 

At £100 per invoice it’s £144,000, £360,000, £720,000 plus interest.

Discover NOW the potential value of late payment compensation hidden in your sales ledger!

For over 20 years, CPA has calculated and recovered Late Payment Compensation on behalf of Clients!  

Yes, CPA can help you boost your business cash-flow.

Don’t let your bankers control you, contact CPA today.

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.

Read our blog here on how to crack down on the late payment culture.

Read our blog here on how to give late payers the slap they need.

The “Why” of the late payment culture.

New PM should walk the walk and back small firms over late payments

Paying late is “crack cocaine” to big business.

Late payment culture risks “spiraling out of control”

visit our late payment compensation page

See our full blog and FAQ on late payment compensation

Do you realise you could be sitting on a fortune?

Late payments often result in a cash flow crunch and leave SMEs in need of a cash injection.

If you sold B2B on credit then there may be a hidden source of capital you can call on.

If you fancy an bit of extra cash in your business, rather than jumping through hoops with your bank, you could look to uncover the resources from an unexpected source within your own business.

Not many are aware but there could be a hidden fortune within your business, sitting there, just waiting to be uncovered and released.

We can help you uncover the pile of gold, you didn’t even know you were sitting on.

If you trade with other businesses and were often paid late then you could be entitled to significant compensation.

Under little known and under-utilised legislation your business could be due huge amounts in compensation that you didn’t even know about.

Let’s be clear – this is not a way to weaken any customer relationships you value. It is one that identifies who’s been paying late and then recover the potentially significant sums in compensation using Late Payment Legislation from businesses where the relationship has already ended.

You can pick and choose who you want us to follow up – but once we’ve agreed which companies you’d like to pursue compensation from it’s a fast process and there’s no financial outlay to you whatsoever. My team at CPA put its expertise to work to recover the compensation due and fight late payment culture.

That compensation could provide the cash boost your business needed.

But don’t delay, that compensation evaporates if not claimed within six years of the late payment.

How can CPA help?

CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.

We recognise that most companies do not have the resources to spend time on the identification and calculation of Late Payment Compensation. Our service can produce an Analyses within just a few days with (usually) less than 30 mins of co-operation from our clients. We work directly with over 300 accounting packages but can also work with bespoke accounts packages. Indeed, speed is essential as the oldest invoices may fall foul of the 6-year time limit.

Once the Sales Ledger Analyses is made available to clients, all that is required is that management decide which commercially sensitive ex-customers to remove from the list and return it to us.

CPA then uses its years of collection experience to explain and recover the Late Payment Compensation Claims. Clients do not handle any part of the recovery process as our team will take all communications from the companies against who the claims has been made. Often, it’s simply a case of explaining the legislation, sometimes we have to go all the way and enforce the legislation through the courts.

The result is that we are realising clients’ claims worth tens and sometimes hundreds of thousands of pounds which, of course, is pure net profit. You may also be among the recipients of “hundreds of thousands of pounds” should you elect to take advantage of our services.

We do the work, you receive the cash.

If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.

We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.

We are helping business owners who are looking to boost the returns from their business before they retire. We are helping businesses who have lost major clients after years of loyal service to get properly compensated for systematic late payment. We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.

Those former clients who regularly paid you late can finally be made to pay.

Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.

Call us today

0330 053 9263

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.

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The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.