SMEs concern over Job Scheme – business news 3 September 2020.

James Salmon, Operations Director.

SMEs voice over the job scheme, an extension to furlough ruled out, Sunak says there will be no horror show tax rises, house prices hit record high,  plus 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.

SMEs concern over jobs scheme

Small firms have voiced concern that they may struggle to access Chancellor Rishi Sunak’s £2bn flagship jobs scheme. Smaller businesses say they are disadvantaged as the Kickstart initiative bars firms taking on fewer than 30 new young workers from applying directly for funds.

The scheme offers six-month paid placements for young people on universal credit, with the Government paying 100% of the national minimum wage for up to 25 hours a week.

Mike Cherry, chairman of the Federation of Small Businesses, said: “Small firms, who are the largest employers across the business landscape, have long expressed interest in this scheme and will be disappointed to find it harder than expected to take part.”

He added: “To put it bluntly, this scheme has not been designed with small businesses front of mind.” Joe Fitzsimons, of the Institute of Directors, said the 30 placement requirement “could give cause for concern”, adding: “With so much on their plate, many small firms will be put off by any unnecessary hurdles.”

PM rules out furlough extension

Prime Minister Boris Johnson has ruled out extending the furlough scheme, saying it is not in workers’ interests to keep them in “suspended animation” with “indefinite furlough”.

Labour’s Kate Osborne asked the PM if the Government would follow other countries in extending the initiative, to which Mr Johnson replied: “I don’t think that’s the right thing. I think the best way forward for our country is to get people as far as we possibly can back into work”.

BoE: Economic outlook remains uncertain

Bank of England (BoE) governor Andrew Bailey has warned of uncertainty around the economy and its recovery from the coronavirus crisis.

He told the Treasury Select Committee that latest forecasts from the BoE were highly uncertain, pointing to a lack of clarity on whether “natural caution” would prevent people from “reengaging” with the economy. Mr Bailey also said that the BoE no longer expects inflation to turn negative, suggesting there is evidence that companies have pocketed the Government’s VAT cut, with people perhaps “absorbing increased costs by not passing it on” as much as had been anticipated.

Despite higher than expected short-term inflation, Mr Bailey said he is confident that “inflation expectations are pretty stable”. He added that household spending is “close to its pre-pandemic levels, but it is a pretty uneven picture”, with a “rapid recovery” in the housing market while social spending “still has not recovered strongly.”

Meanwhile, Sir Dave Ramsden, the Bank’s deputy governor for markets, said policymakers have capacity for more quantitative easing if the economy does not recover as fast as expected, adding that the BoE has “the operational capabilities to do it fast if market dysfunction required that.”

Sunak: No ‘horror show’ tax rise

Chancellor Rishi Sunak has insisted that a “horror show of tax rises” are not on the horizon, with this coming on the back of recent reports that the Treasury is considering a number of tax increases to cover the cost of the covid-19 crisis – including changes to corporation tax and capital gains tax.

In a statement given to a meeting of recently-elected Conservative MPs, Mr Sunak said that while the Government “will need to do some difficult things” in an effort to “overcome short-term challenges”, this did not mean “a horror show of tax rises with no end in sight.”

Mr Sunak also said that ministers will need to be honest with the public about the challenges ahead and show them how the Government plans to “correct our public finances and give our country the dynamic, low-tax economy we all want to see.”

Considering the tax increases that the Chancellor had reportedly be en mulling, a Times editorial says increasing CGT and corporation tax and “tinkering with” tax relief on pension contributions would be counterproductive in the short term.

Minister calls for tax cuts…

Work and Pensions Secretary Therese Coffey has suggested that taxes should be cut in the Budget, telling Times Radio: “I will point out to you that in the past when we’ve actually cut tax rates, we’ve actually seen taxes increase.”

Describing tax rates as a “very dynamic situation”, she added: “Some people might assume the only way to get tax up is to increase tax rates but we have shown in our economic history the opposite.”

Meanwhile, former Cabinet minister Sir John Redwood also urged Mr Sunak to resist short-term tax rises, saying “blundering in” with tax increases may produce less revenue and further lift the deficit.

… while Clarke urges increases

Former Chancellor Ken Clarke has warned Rishi Sunak that he must raise taxes in order to avoid financial disaster in the wake of the coronavirus crisis. Mr Clarke said the current Chancellor must “raise some taxation to show common sense.”

He suggested that by letting debt pile up “you are waiting for inflation to come back” but warned: “When it does come back a financial crisis will hit you and a disaster will occur.”

House prices hit all-time high

Figures from Nationwide show that house prices have hit an all-time high, with the average home now worth £224,123. Prices rose by an average of 2% in August, the biggest month-on-month increase since February 2004 as values saw a post-lockdown surge.

Year-on-year, prices have risen 3.7% compared to August 2019. The analysis also reveals that demand is 34% up on August last year. With property prices reversing losses recorded in May and June, Nationwide chief economist Robert Gardner said: “The bounce-back in prices reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions.”

Separate data from Zoopla show that housing market activity is running at its strongest pace in over half a decade, with agreed sales in August up 76% against the five year average.

Covid-19 general news

The World Health Organisation said anti-inflammatory steroids should be used to treat covid-19 in patients who need oxygen support. A large study provided a “clear signal” that low-dose hydrocortisone, dexamethasone and methylprednisolone reduced mortality, it said. An earlier study of dexamethasone by Oxford University had produced a similar result.

GSK reported it expects to start Phase 3 trials for its Covid-19 vaccine by the end of 2020. It says that 400 people have been enrolled in its Phase 1/2 study.

The U.S. Centers for Disease Control and Prevention has told states to prepare for a Covid-19 vaccine to be ready by Nov. 1, a date that suggests the federal government anticipates a vaccine will become available just days before President Donald Trump stands for reelection

France reported that new cases are being added at the fastest weekly pace since the pandemic began, and new infections in Spain remained near a four-month high.

The Rock and former Italian Prime Minister Silvio Berlusconi joined other high profile names to contract the virus.


The FTSE 100 climbed 1.3% yesterday as the pound fell against dollar and the value of the export heavy FTSE’s  earnings were boosted. Diageo and GSK both big USD earners jumped around 3.7% and 3% respectively.

U.S. equities set a fresh all-time high, amid signs that the global rally is broadening into other sectors and away from technology. Several of this year’s big tech winners, including Apple Inc., Zoom Video Communications Inc. and Tesla Inc fell as profits were taken.  Asian stocks except for Japan were generally down.  The Nikkei closed up 0.94%. Hong Kong HSI is down -0.57%. China Shanghai SSE is down -0.67%. Singapore Strait Times is down -0.63%. In the US DOW rose 454.84 pts or 1.59% to 29100.50.  A 29568.57 record high is now within reach. The S&P 500 rose 1.54% to 3580.84, record and the NASDAQ rose 0.98% to 12056.44, also a record.

Oil prices fell 30 cents to $44.12 per barrel. Gold Prices fell $12.10 per ounce to $1,932.20 per ounce.

Housebuilders benefited from gains following Nationwide’s update on August strong price trends. Barratt Development jumped 8.7% to 548p whilst Berkeley Group rose 204p to 4717p as investors took a positive short-term view of trading given the stamp duty holiday.

EU lead negotiator Michel Barnier says the UK risks crashing out of the EU without a trade deal because of its refusal to compromise, he is “worried and disappointed” after Downing Street refused to make any compromises during recent informal talks.

CEO pay

Total CEO pay rose by 5.5% in 2019 according to a study by Willis Towers Watson a sharp drop from the 13.7% rise in 2018.

Italy lures super-rich with tax break

Figures show that wealthy Brits are taking advantage of tax breaks designed to lure the super-rich to Italy, with a €100,000-a-year flat tax, payable on money earned abroad by anyone who transfers their tax residence to Italy, seeing 78 high-worth Britons relocating since 2017. In total, 784 wealthy individuals have made the switch, with Britain accounting for the biggest proportion, followed by France (58), the US (20) and Russia (19).

Apple app developers to shoulder cost of tech tax

Apple has said app developers will bear most of the cost of the 2% digital services tax, with the levy set to be charged on apps in the coming days. Developers on Apple’s App Store take at least 70% of an app’s sales after taxes, meaning the cost of the new tax will hit the companies that design and engineer the apps. Adding the 2% levy to existing VAT charges will reduce the amount that both developers and Apple itself receive from app sales.

Audit fee increases hit contractors

The Times reports that firms with government contracts are bearing the brunt of accounting failures surrounding the collapse of Carillion, with the construction and outsourcing sector facing “spiralling” audit fees.

Analysis shows that fees paid by Capita to KPMG have risen from £3.4m a year to £5.9m in three years, while Serco’s audit fee last year, also paid to KPMG, was up 58% to £1.9m.

The figures, which are quoted on a like-for-like basis for the statutory audit, show that other companies in the sector have seen audit fee increases of between 10% and 20%.

The Times says the fallout from Carillion failing – including criticism from the Cabinet Office – has “effectively … put up a red flag over the audits of government contractors”, with KPMG, Deloitte, PwC and EY understood to have been increasing resources in audits in the sector to produce higher-quality checking of supposedly higher-risk clients.

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.

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.

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