GDP expected to contract –  business news 2 October 2020.

James Salmon, Operations Director.

GDP expected to contract, BCC survey shows exceptionally weak economic conditions, covid-19, market and lots more 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.

GDP expected to contract

Research from PwC suggests GDP could contract by between 11% and 12% over 2020. The firm said that a rebound in 2021 is likely but the scale of the recovery will depend on whether there are further waves of the coronavirus and the measures needed to tackle the pandemic, predicting that growth could be between 4% and 10%. The PwC report suggests that if the virus is kept under control, the economy could hit pre-lockdown levels by the end of 2021, while a fresh wave and further lockdowns could push the recovery back to 2023. PwC economist Jing Teow suggests that a recovery in 2021 “could be buoyed if there is a vaccine.” Meanwhile, S&P Global has predicted the UK economy will contract by 9.7% in 2020 before seeing a rebound next year. It said the economy was on course to grow by 15% in Q3 2020 adding that it could rebound by as much as 7.9% in 2021. The firm also suggested that the economy may not return to pre-coronavirus levels until at least 2024. S&P Global Ratings senior economist Boris Glass said that while initial signs of a rebound have been promising, “many hurdles are ahead on the path to recovery”.

BCC survey points to ‘exceptionally weak’ economic conditions

The British Chambers of Commerce (BCC) says more British companies saw a fall in sales in the last quarter than experienced an increase. The BCC’s quarterly economic survey found that 46% of firms saw sales fall in Q3, an improvement on the 73% who reported a decline in Q2, while just 27% of the businesses surveyed reported higher sales than three months earlier. The poll saw 41% of the 6,410 businesses surveyed say they expect sales to improve over the next 12 months, compared with 35% who foresee a decline. It was also found that while 45% of businesses have seen a dip in cashflow, among the smallest firms, the rate hit 51%. Commenting on the findings, BCC economist Suren Thiru said: “Economic conditions remained exceptionally weak in the third quarter”.

HSBC halts new bounce back loan applications

HSBC has stopped accepting applications for new business bank accounts as it looks to focus on clearing a backlog of applications for loans for small firms under the Government’s Bounce Back Loan Scheme. Official figures show that lenders have handed out about £38bn under the initiative, with 1.3m businesses handed financial support designed to soften the blow dealt by the coronavirus crisis. HSBC has approved 194,000 bounce back loans, with a total value of nearly £5.9bn. The bank says it is approving a new loan every 20 seconds. It announced yesterday that new small business customers will not be able to open accounts until December 14. An HSBC UK spokesman said: “As one of the only banks that remained open to applications from all UK businesses since the scheme’s launch, we received a huge level of demand. With the scheme closing on November 30, we need to focus our resources on fulfilling ex isting applications.”

Warehouse rentals hit record in Q3

A report from property consultancy CBRE shows that a record amount of warehouse space was let in Q3, with take-up hitting 13.3m sq ft in the July through September quarter. This exceeds the 12.8m sq ft record set in Q2. The increase was driven by online retailers looking to expand capacity as demand surged amid the coronavirus pandemic. Jonathan Crompton of CBRE said: “The extraordinary level of take-up seen in Q2 has now been exceeded in Q3. To put the numbers into context, the past six months’ take-up exceeds the annual total for eight of the past ten years.”

UK firms may need to set up an EU office

Thousands of UK businesses may need to set up an EU presence if they want to export goods to European markets, according to Blick Rothenberg. It said both EU and UK law will require companies to “have a door to knock on” if there are any disputes over payment and compliance with customs changes after January 1. Failing that, firms would have to pay a customs and freight forwarding agent to bear the risk that new paperwork and payment obligations are satisfied, with industry sources telling the BBC that few agents will be prepared to take that risk.

PM Boris Johnson is set to talk to EU Commission President Ursula von der Leyen on Saturday about Brexit and the future trade relationship.


YouGov poll today showed 37% of UK employers are planning on making staff redundant over Q4 2020 shortly after the current furlough scheme ends on the 31st October.

Covid-19 general news

Global cases pass 34.1 million and deaths exceed 1 million.

The US President tweeted he and his wife Melania had contracted Covid-19 as the USA heads into the final weeks before the Presidential election. Mr Trump tweeted: “Tonight FLOTUS [First Lady of the US] I tested positive for COVID-19. We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!” The president was tested after Hope Hicks, one of his closest aides, was found to have been infected

More than one in 200 people in England, about 0.55 percent of the country’s population, have the coronavirus, according to the latest update from the largest study of Covid-19.

Margaret Ferrier faces calls to quit after admitting she broke self-isolation rules to attend Parliament this week while waiting for the result of a coronavirus test, which later came back positive. Ferrier also breached regulations by taking the train home to Scotland after testing positive. Her conduct was criticized by Scottish First Minister Nicola Sturgeon, who said “the rules apply to everyone.”

Amazon said that more than 19,816 of its frontline workers in the US have contracted Covid-19 since March.

For the first time since April, daily new cases of Covid-19 in Italy topped 2,000 on Thursday. Prime Minister Giuseppe Conte said the situation remained “critical.”

The London Underground will need another 5.7 billion pounds, to get through the next 18 months, Sadiq Khan, the mayor of London, said on Thursday. The system has been decimated by the pandemic, travel restrictions and orders to work from home.

The heads of two vaccines companies, Pfizer and Moderna, distanced themselves from President’s Trump comments at the presidential debate on Tuesday that a vaccine was “weeks away.”

India’s death toll rose to almost 100,000, while Germany reported its largest number of new cases since mid-April.

Ukraine has posted a record number of new infections for the third straight day.

Spain’s national government imposed quarantine restrictions on greater Madrid, the country’s coronavirus hotspot, which accounts for a third of its recent covid-19 cases

Turkey and Poland have been added to the UK’s list of countries, requiring visitors either to or from these countries to self isolate for 14 days.


The FTSE 100 edged up 0.2% yesterday but markets have turned negative today on the news of Trumps testing positive. European stocks opened lower on the news. Yesterday the S&P 500 rose 0.53%. NASDAQ rose 1.42%. . Asian Markets ended lower on diminishing hopes for a new US stimulus package and the news that Donald Trump has caught C-19.

Sterling fell sharply after it emerged the EU has started legal proceedings against the UK’s new Internal Market Bill on the grounds it breached the Brexit Withdrawal Agreement and international law. The UK now has one month to reply to the EU Commission, prior to the dispute going to the European Court of Justice.

Oil prices fell 5% to trade around $38 per barrel due to a spike in C-19 cases and concerns over oil demand.

Gold prices, rose $20.20 per ounce despite ISM manufacturing data reading slightly below expectations.

Chancellor hints at business rates rethink

Rishi Sunak has suggested a rethink on business rates may be on the cards, with the Chancellor also pointing to the potential roll out of an online sales tax. Taking part in the Blue Collar Conservatism virtual conference, he told MP Esther McVey: “When I talk to high street businesses, the thing they most complain about are business rates.” Noting that one of the Government’s manifesto commitments was to review the business rates system, he insisted that “it’s not easy to do” as the treasury raises “quite a lot” from the rates to pay for the public services. Mr Sunak said that while “it’s not easy to figure out what you can do to tweak that … there’s lots of options in the consultation.” He went on to identify an online sales tax as one mooted option.

Davis in tax cut call

Writing in the Daily Express, former Brexit Secretary David Davis considers the Chancellor’s options for boosting the economy in the wake of the coronavirus crisis. Pointing to rumours that Rishi Sunak is considering rises in national insurance, CGT and “a host of other damaging taxes on business”, Mr Davis says this “would be the worst possible approach.” Arguing that cutting taxes “not only promotes growth, investment and productivity – it also brings in more revenue”, he says: “Far from raising our taxes, the Chancellor should be cutting them to promote growth”.

HMRC increases instalment threshold

In an effort to help ease pressure brought about by the COVID-19 crisis, HMRC has increased the threshold for self-assessing taxpayers to spread the cost of their bill. Where anyone with liabilities up to £10,000 could contact the Revenue to set up instalment payments, this has now been increased to £30,000. Jesse Norman, Financial Secretary to the Treasury, said: “We are supporting jobs by giving more breathing space to up to 11m self-assessment taxpayers.” He added that the move “should ease the financial burdens and protect the livelihoods of these taxpayers in the months ahead.”

Diversity action called for by CBI

The CBI has stated that the largest UK firms should have at least one black, Asian, or minority ethnic (BAME) member on their boards by next year. The industry group said FTSE 100 firms should have at least one racially and ethnically diverse board member by the end of 2021, with FTSE 250 firms to have the same representation by 2024. The call comes with analysis showing that more than a third of FTSE 100 firms do not have ethnic minority representation at board level. Deloitte is among the first signatories to the CBI campaign. The firm’s Richard Houston commented: “The energy of the Black Lives Matter movement has given a fresh sense of urgency around racial diversity in business”.

FCA issues post-Brexit guidance

The Financial Conduct Authority (FCA) has updated its rules ahead of the Brexit transition period coming to an end. While the new rules will apply from January 2021, the City watchdog said it will temporarily waive some of them, meaning businesses can continue to comply with existing requirements for a limited period – although it insisted there are some areas where it would not be appropriate for relief to be granted beyond December this year. Full compliance with updated regulatory obligations is expected by March 31, 2022. Conor Lawlor of banking industry body UK Finance welcomed the FCA’s flexibility, saying the regulator “acknowledges the scale, complexity and magnitude of some of the changes in relation to key requirements”.

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.

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.

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.