New Covid tiers – business news 27 November 2020.

James Salmon, Operations Director.

New Covid tiers “make or break” for many businesses;  Think tank predicts pandemic effects will be less severe than financial crash; Sunak backed by BoE’s Bailey; Business cries out for Brexit clarity,  Resolution Foundation foresees prolonged income squeeze, 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.

New Covid tiers “make or break” for many businesses

Small businesses are worried about the new covid tiers. Business leaders and lobby groups have warned that businesses in regions in covid tier 3, under the highest level of Covid restrictions will not survive without further support.

The Times talks to a slew of hospitability bosses voicing their fears for the industry and notes that UK Hospitality expects £7.8bn in losses for the sector in December compared to the previous year.

Mike Cherry, of the Federation of Small Businesses, said the highest level of restrictions may “ultimately lead to some [companies making] very difficult decisions into the new year – without the necessary support, this could be devastating for thousands of small businesses, and tens of thousands of jobs”.

Think tank predicts pandemic effects will be less severe than financial crash

The Institute for Fiscal Studies think tank has claimed that the UK economy is likely to suffer less as a result of the coronavirus pandemic than it did after the financial crisis of 2008.

IFS director Paul Johnson remarked: “On central scenarios borrowing will be ‘only’ £100bn or so in 2024-25,” which he said is “not a million miles away from either current budget balance or at least stabilising debt as a fraction of national income.”

Sunak backed by BoE’s Bailey

Chancellor Rishi Sunak’s approach to the public finances has been supported by Bank of England governor Andrew Bailey, who told BBC Radio Devon: “It is absolutely sensible that public resources, resources of the state, are being used to cushion the huge impact of this absolutely unprecedented shock.”

He went on: “For the moment the key thing is to use all our resources and all our support. And that’s what the Bank of England and Treasury are doing to cushion and make this huge impact more bearable for people.”

Business cries out for Brexit clarity

The Confederation of British Industry (CBI), British Chambers of Commerce (BCC) and the Federation of Small Businesses (FSB) have made a fresh plea for clarity over post-Brexit trade arrangements as the clock ticks down to December 31st.

James Sibley, head of international affairs at the FSB, said: “We welcome government efforts to encourage businesses to prepare for those changes that will take effect regardless of the outcome of talks, but until we know exactly what the state of play will be from 1st January, it’s extremely difficult to fully plan,” a sentiment echoed by the BCC’s co-executive director Hannah Essex.

Separately, British businesses are stockpiling goods before post-Brexit customs checks come into force on January 1st, leading to a hike in the cost of cross-border deliveries and a reduction in capacity.

Resolution Foundation foresees prolonged income squeeze

The Resolution Foundation has predicted that the coronavirus crisis will see Britain’s 15-year squeeze on household incomes prolonged, with pay cut by £1,200 annually within the next four years.

Torsten Bell, chief executive of the think tank, stated: “The pandemic is just the latest of three ‘once-in-a-lifetime’ economic shocks the UK experienced in a little over a decade, following the financial crisis and Brexit.

The result is an unprecedented 15-year living standards squeeze.” The organisation said that most fiscal support in the wake of the crisis will need to be raised from tax rises, noting: “While the priority now is to support the economy, the permanent damage to the public finances will mean tax rises in the future.”

Financial sector workers in remote working survey

New research from Deloitte has found that financial services employees report feeling more productive and well while working remotely.

Avoiding the commute was listed by 66% as the main benefit to the current situation, while 60% of respondents believed the ability to meet in person was the most important benefit of working in an office.

Some 78% of those surveyed agreed that their employers were prepared for their staff to continue working remotely in the long term.

Covid-19 general news

The government released details of its new covid tiers.

A third of England will face the toughest Covid curbs in Tier 3  on the 2nd of December when the national lock-down ends. Large parts of the Midlands, North East and North West, including Manchester and Kent, are in tier three. Most of the rest of the country will be in Tier 2. The new restrictions will mean 55 million people remain banned from mixing with other households indoors

London avoided the highest of the new covid tiers.

There were 17,555 new cases in the UK yesterday (1.57m total). There were an additional 498 deaths taking the total to 57,031.

Globally there were 581,197 new cases taking the total 60.7million with deaths reaching 1,433,789.

AstraZeneca said it is going to conduct an additional efficacy trials of its vaccine after questions were asked about the data released on the covid-19 vaccine it developed with Oxford University. The jab had an efficacy of 70%, but this was only achieved by pooling the results from two cohorts on different dosing regimes. One of these contained no over-55s, who are at most risk of severe covid-19 symptoms.

The government is waiting though and is taking steps to get the British vaccine approved for use. It has formally asked the UK’s medicines regulator to authorise Astrazeneca and Oxford University’s coronavirus vaccine for emergency supply. If the vaccine is approved, it could speed up the rollout of the treatment across the UK.

Germany passed the million case milestone.

The Swedish are questioning their governments lax herd immunity approach.

Hundreds of thousands of Argentines  took to the streets of Buenos Aires to mourn Wednesday’s death of soccer icon Diego Maradona, upending the nation’s strict Covid restrictions. Similar scenes were seen in Naples.


Wetherspoon said the new tiered system would keep about half of its pubs closed when the national lock-down ends on 2nd December .The company said the tiered system set to come into effect after lock-down ends, represented yet ‘another raft of regulations, which has effectively closed half our pubs.’ The company had 366 pubs which would remain closed, with 315 of these pubs in tier three in England and 51 in Northern Ireland and Scotland.

EU Trade talks & Scotland

The U.K. and European Union negotiators are set to start fresh face-to-face trade talks again this weekend following the quarantine period for key officials following a Covid-19 infection. As the December 31st deadline for the current transition looms, key differences (such as fishing” remain and neither side seems willing to budge in this continental game of “chicken”.

Meanwhile the SNP in Scotland are using this all as an excuse to ask for a second referendum (Indyref2) on independence. Scotland First Minister Nicola Sturgeon has called for a second Scottish independence referendum “in the earlier part” of her next term. Since the start of the pandemic in March, 14 consecutive polls have returned majority support for Scottish independence


With the US markets shut for thanksgiving shares in London traded on low volume and lacked direction. The FTSE 100 finished 28 points lower or .44% at 6,362.93 with trading across the rest of Europe also considerably muted. The Euro Stoxx 50 was flat as were German and French shares, all moving less than 0.1%

Oil Prices slipped from seven-month highs with Brent down to $47.6 as signs of growing supply helped to halt a rally driven by optimism that COVID-19 vaccines will revive fuel demand. Gold stabilised at $1809.

The pound ended the day at 1.121 Euros and 1.335 US Dollars.

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 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.