Improved Job Support Scheme – business news 23 October 2020.
James Salmon, Operations Director.
Chancellor announces more generous UK job support scheme, Government lending to business reaches £62 billion, consumer confidence dips, retail, wealth erosion, furlough, 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.
Chancellor announces more generous UK jobs support scheme
Chancellor Rishi Sunak has revised the Government’s Job Support Scheme – set to replace furlough in November – amid fears for the survival of businesses affected by Tier 2 coronavirus restrictions.
Employers will be required to pay just 5% of workers’ unworked hours, down from 33% previously.
The state will pay 62% of the hours not worked, and the employee will forgo about a third of their unworked wages.
Worth an estimated £13bn over six months, the package will also include a new round of funding for the self-employed, grants for whom will be doubled from 20% of previous earnings to 40%.
Cash grants worth £3,000 a month will be made available for hospitality firms forced to close under Tier 3 restrictions, which will be backdated. Businesses in Tier 2 areas can access grants worth up to £2,000.
Government lending schemes see £62bn paid out to firms
New Treasury figures reveal that the total value of loans paid out under the coronavirus business lending schemes provided by the Government reached nearly £62bn as of mid-October.
This is up from £57.3bn the previous month, with a total of £17.2bn paid out to 73,094 firms as part of the Coronavirus Business Interruption Loan Scheme (CBILS), £4.57bn of financing approved for 623 larger firms under the Coronavirus Large Business Interruption Loan Scheme (CLBILS), £770.8m paid out under the Future Fund to 745 businesses and the Bounce Back Loan Scheme (BBLS) seeing a total of 1,336,320 loans worth £40.20bn approved.
Drop in UK consumer confidence fuels double-dip recession fears
Data from research company GfK show a fall in consumer confidence in the first half of October as coronavirus infections rose and restrictions tightened, fuelling fears of a double-dip recession. Joe Staton, client strategy director at GfK, said: “There’s a worrying threat of a double dip in consumer confidence as concerns for our personal financial situation and even deeper fears over the state of the UK economy drag the index down six points this month. The prospect of rising unemployment is severely depressing our outlook. Worryingly, this data was collected before the new restrictions came into force and the end of the furlough scheme, so this will negatively impact the index in the run-up to Christmas.”
UK Retail
UK Retail Sales smashed expectations in September, with Britons buying 1.5% more goods than a month earlier, helping food stores and online retailers grow strongly. The statistics showed retail sales were 5.5% higher in Sept when compared with pre-pandemic levels in Feb.
UK manufacturing decline slows – survey
The CBI’s industrial trends survey has shown that UK manufacturing activity continued to fall in the most recent quarter, but at the slowest pace since March. Output dropped in ten of the seventeen manufacturing sub-sectors followed in the CBI’s industrial trends survey, with aerospace leading the falls. Separately, a survey by Lloyds Bank has found that 31% of manufacturers believe that a no-deal Brexit would be good for business while 81% said they had made the necessary preparations for operating outside the EU. Those who thought business would improve cited increased demand from domestic buyers and the ability to be more competitive with EU rivals on pricing.
Brits suffer largest erosion of wealth
A study by Credit Suisse has found that Britain has suffered the biggest hit to household wealth of that in any of the world’s major economies this year. Total wealth in the UK fell from $14.6trn to roughly $13.7trn in the six months to the end of June while the number of ultra-high net worth individuals – with assets of more than $50m – declined by 1,544 between the start of 2019 and the middle of this year. Over the same 18-month period the number of super-wealthy adults in the US rose by 14,008 and in China by 4,148. The report suggested currency fluctuations driven by Brexit concerns and a failure of equity markets in the UK to recover from the onset of the pandemic have created a “perfect storm” leaving the UK the biggest casualty of the pandemic among major economies.
Covid-19 general news
The UK reported 21,242 new cases yesterday bringing the total to 810,467.
With 468,499 new cases, global cases pass 41.6 million and deaths exceed 1.14 million
Chancellor Rishi Sunak has unveiled increased support for jobs and workers hit by Covid restrictions after growing clamour from firms in tier two areas. Sunak announced big changes to the Job Support Scheme – set to replace furlough in Nov. He told the Commons that even businesses not forced to shut were facing “profound economic uncertainty”.
Spain’s Canary Islands, the Maldives, the Greek island of Mykonos and Denmark were added to the government’s safe travel list which means visitors will no longer need to quarantine for 14 days on their return.
US Regulators have given full approval for the antiviral drug remdesivir to treat Covid-19 patients in hospitals. The US Food and Drug Administration (FDA) said Veklury, the drug’s brand name, cut the recovery time on average by five days during clinical trials.
A trial found that infusing hospitalized Covid-19 patients with blood plasma from people who had recovered had no effect on whether they got sicker or died
France reported more than 40,000 new cases for the first time, while Italy, Germany and at least eight other nations also recorded record infections. France brought in a curfew affecting 46 million people, ordering them to stay home between 9pm and 6am
Democratic presidential nominee Joe Biden blamed Donald Trump for the deaths of more than 220,000 Americans in the coronavirus pandemic, saying the president doesn’t deserve re-election. The seven-day average of U.S. deaths on Wednesday hit the highest in a month.
Markets.
The FTSE 100 index recovered from earlier losses over the course of yesterday’s trading and eventually closed modestly higher, up 0.16% to 5785. The index had fallen 50 points in the morning as investors remained focused on the lack of a US stimulus deal and as covid-19 cases rise across Europe.
UK Chancellor Rishi Sunak unveiled financial support package plans for firms gripped by local lock-down restrictions. Addressing parliament late morning, Sunak said the package includes making the Job Support Scheme, which replaces the current furlough system, more generous.
The pound was quoted at $1.3108 at midday yesterday, but briefly slipped below $1.31, offering some support to the FTSE 100 and its overseas income earners. The pound had been as high as 1.3134 on Wednesday, after rallying on hopes of a last-minute Brexit deal but has given up some of those gains now. Oil prices rose but are still below where they were when the US inventories signalled a falling demand. Gold fell almost 1% to around $1900 on better than expect US job data and the US stimulus package negotiations.
US Markets rose on Thursday as traders weighed House Speaker Nancy Pelosi’s latest remarks on US stimulus negotiations. Overnight, the DOW rose 0.54%, the S&P 500 rose 0.52% and the NASDAQ rose 0.19%.
It appears that the stock markets couldn’t care less about the last debate before US Presidential election. Major Asian indices are trading in right range with mild gains. In Asia, currently, the Nikkei is up 0.34%, the Hong Kong HSI is up 0.71%, the China Shanghai SSE is up 0.16% and the Singapore Strait Times is up 0.24%.
Japanese trade
Britain has officially signed a trade deal with Japan, marking a major milestone in Brexit negotiations as the UK strikes its first agreement as an independent trading nation. The British embassy in Tokyo today announced it has formed the UK–Japan Comprehensive Economic Partnership Agreement (CEPA), which was agreed in principle last month. The deal largely preserves the terms under which the U.K. traded with Tokyo as part of the EU, according to Japan’s Ministry of Foreign Affairs. It’s expected to boost Britain’s GDP by 0.07% compared to 2018 levels over the next 15 years, the U.K. government has said.
Furlough fraudsters stole as much as £3bn, HMRC says
Nearly one in 10 workers on furlough have been asked to work by their boss, breaking the rules and costing taxpayers up to £3.9bn, a National Audit Office survey suggests.
HMRC believes between £2bn and £3.9bn may have been fraudulently paid out under the Treasury’s Job Retention Scheme, which saw £39bn paid out to employers to support furloughed workers.
The estimates from HMRC were used in a National Audit Office report which said there was evidence of “significant levels of furlough fraud” from both organised gangs “hijacking” claims and employers taking money collected on behalf of staff. Meg Hillier, who chairs the public accounts committee commented: “HMRC has paid out billions of pounds to fraudsters. Most of this is likely to be gone for good.”
Hong Kong immigrants will boost tax revenues
Home Office estimates suggest over 1m people from Hong Kong could immigrate to Britain in the next five years, with up to 500,000 possibly arriving in the first year. The UK Government announced a new route for British overseas nationals (BNOs) in the territory to settle in Britain after Beijing imposed strict new security laws on Hong Kong. The arrivals are projected to boost the economy by up to £2.9bn net over five years through extra tax revenue.
Barclays
Barclays reported a jump in third-quarter profit as the bank set aside less money and saw no recurrence of payment protection insurance provisions that had weighed on profit in the prior-year period. For the quarter ended 30 September, pre-tax profit rose to £1.1 billion from £0.2bn, while income was down 6% to £5.2bn year-on-year. The bank attributed the rise in profit to ‘the non-recurrence of the 2019 PPI provision.
EFL seeks delay on tax payments for clubs
The English Football League has asked for permission to defer tens of millions of pounds of tax payments until the Government ban on crowds is lifted. Approximately half of clubs’ salary bills goes to HMRC in tax and national insurance, but the EFL says it is losing a combined £22m a month playing behind closed doors and is seeking a postponement of the payments.
Dutch ‘departure tax’ is illegal, Unilever told
A proposed “departure tax” that will hit Dutch companies leaving Holland has been deemed illegal by the boss of Unilever, which is looking to move its legal base to London as it looks to end its dual Anglo-Dutch structure. Alan Jope said two out of three of the law firms the company consulted said the legislation would contravene EU law and multiple tax treaties.
Property boom could be hit by ‘perfect storm’ of collapsed sales
The Telegraph looks at how logistical delays could put a strangle hold on the property market “mini-boom” as buyers are increasingly pulling out of sales. The summer surge in buyer demand combined with reduced processing capacity after lockdown means that lenders, local authorities, conveyancers and surveyors are overwhelmed, with sales at serious risk of being dragged beyond the stamp duty and Help to Buy scheme deadlines at the end of March.
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 nsm@cpa.co.uk 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.
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 extra 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.