No-deal Brexit looks very likely –  business news 11 December 2020.

James Salmon, Operations Director.

No deal Brexit looks likely, the rebound stalled prior to lock-down as growth slows in October,  covid-19, market and lots more financial and 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.

No-deal Brexit looks very likely

Moods are extremely somber. As neither side looks willing to Budge. The UK is unwilling to compromise on anything that will affect its independent sovereignty. The EU is unwilling to weaken the common market  and leave it vulnerable to unfair competition.

If no agreement is reached, it would be a massive blow for businesses and consumers on both sides. Decades of free movement of goods, services, people and capital would come to an abrupt end when Britain leaves the EU’s single market and customs union on the 31st December.

About 43% of the U.K.’s exports, valued at about 300 billion pounds, go to the EU each year, and the bloc is the source of 51% of its imports.

Companies would face tariffs, quotas and  frictions to trade as well as delays and potential chaos as they move goods in and out of Europe.

The ports are already struggling and facing huge delays. The imposition of tariffs and controls on imports and exports is only going to exacerbate the issue.

The City of London, the biggest jewel in the UK economy would lose its passport to offer services across the EU and see a flight of capital, trade and business to Paris, Brussels and Frankfurt. Hitting tax revenues in the UK significantly.

Consumers would see their rights to live and stay on the other side of the English Channel restricted and face higher food and car prices along with a myriad of other items that we take for granted.

The International Monetary Fund (IMF) estimates a no-deal Brexit would reduce the EU’s long-term potential output by almost 0.5%, but it would reduce the UK by 3%! Some estimate more!

Under WTO rules (the worst possible trading relationship) we would face average tariffs of 3%. 10% on cars With some dairy products FACING 35%. Some 85% of foods imported from the EU would attract tariffs of 5% or more.

The Prime minister tried to make light of it saying we would be trading with the EU as Australia does, but that ignores the fact that Australia is working hard to agree a trade deal with the EU and they could soon have a better trading relationship with the EU than the UK.

The Car industry say it will hit them for 55 billion as manufacturing here becomes decidedly less favorourable.  Pro-Brexiteer Sir Jim Radcliffe has already announced he will be building his new car factory in France, not Wales as originally planned. In a statement, Ineos Automotive said: “The site’s location on the French-German border, only 200km from Stuttgart, gives excellent access to supply chains, automotive talent and target markets.”

The government has been spending  alot of money on advertising, telling business to prepare for the end of the transition. The problem is nobody knows what the new trading relationship will be like. How can business prepare for something that is unclear and uncertain?

Rebound stalled as growth slows in October

The UK economy grew by just 0.4% in October as the recovery continued to slow in the face of tougher coronavirus restrictions. According to the ONS, the economy remains well below the size it was before the crisis. The UK has been recovering from a record slump earlier this year induced by the first coronavirus lockdown. But output is expected to shrink again in November after England’s second shutdown forced businesses to close. October was the sixth consecutive month of growth for the UK after the economy contracted by a record 19.5% in April amid the first lockdown. The economy initially rebounded at a record rate, but growth has now begun to slow – with October’s growth figure down from the 1.1% seen in September. Yael Selfin, chief economist at KPMG, estimates that the economy could shrink 2% in Q4 compared with the previous three months, which would be “one of the worst [performances] among developed economies

Box maker lifts on pandemic demand

Small businesses shifting online due to COVID-19 were behind a 700% rise in enquiries to DS Smith for personalised boxes. The cardboard packaging manufacturer said demand by e-commerce firms nearly doubled last year, to £400m.

Small business gets go ahead for Kickstart

Small firms have been given the go-ahead to provide Kickstart placements to unemployed young people, the Sun reports. The scheme was launched by the Department for Work and Pensions to create new job placements for 16 to 24-yearolds on Universal Credit. Mike Cherry, chairman of the Federation of Small Businesses, said: “Small businesses can be the ideal environment to nurture talent.”

Nightclub owner files notice to appoint administrators

Deltic has filed a notice to appoint administrators. The nightclub owner remains in talks over an emergency sale after coming under intense financial pressure from the enforced closure of nightclubs. It is understood that Scandinavia bar operator Rekom Group has emerged as preferred bidder to buy Deltic through a pre-pack administration. Deltic is behind brands such ATIK, Bar&Beyond and Vinyl, but a deal to buy the company out of administration could result in some venues closing permanently


The Bank of England has said UK banks are well prepared for serious economic shocks and can continue to lend during the pandemic. Banks have built up strong capital buffers since the financial crisis more than a decade ago, the Bank said in its latest financial stability report. it has given the go ahead for them to resume dividends.

Covid-19 general news

New cases spiked in the UK yesterday to 20,964 with 516 more deaths.

Globally 697,958 new cases brought the total close to 70 million with 1,584,064 deaths.

According to the Economist, almost one in five Americans may have been infected with covid-19, far higher than official numbers suggest.

The US FDA advisers gave their backing to the Pfizer vaccine which clears the path for the FDA to authorise its roll out in the US.

Sanofi & GlaxoSmithKline have announced a delay in their vaccine programme after it showed an insufficient immune response in trial results. The firms said they planned to launch another study of the experimental drug next year, with plans to produce a more effective vaccine by the end of 2021.

AstraZeneca Plc will start clinical trials of a combination of its own vaccine and Russia’s Sputnik V inoculation, the company said in statement.

The Government has been told they must consider placing London in Tier 3 restrictions by scientists. Around three quarters of the 32 boroughs have seen a rise in cases up until December 4, particularly among secondary school-age children. The case rate in the capital is now just behind the West Midlands, with more than 15,000 people testing positive in the past week, a rate of 169.6 per 100,000 people, up from 150.9 a month ago.


The internationally focused FTSE 100 climbed 0.54% yesterday on weaker sterling while the the more domestic facing 250 fell 0.64%.

The lack of Brexit breakthough and a realisation that the two sides remain very far apart helped trigger a sell-off in sterling and airline companies yesterday. The Brussels dinner was described as a “failure” by officials on both sides. Sterling fell against the Euro on concerns over the rising risk of a no-deal Brexit following statements from Brussels today that made clear the EU will close negotiations after Sunday.

Sterling is at 1.089 Euros and 1.322 US Dollars

Overnight, the DOW dropped -0.23%, the  S&P 500 dropped -0.13% and the NASDAQ rose 0.54%.

The world’s commodities markets are staging a comeback as the global economy bounces back from the steepest downturn since the Great Depression. Oil prices surged yesterday with Brent climbing back above $50/ bbl for the first time since March helped by strong Asian demand in particular from Indian and Chinese refiners.

Gold is at $1835


The European Central Bank delivered on its promise to offer a new round of stimulus in response to a second wave of Covid-19 infections in the euro-area. The ECB has increased the quantitative easing budget to €1.85trn, adding  €500bnand will extend the term of bank loans, and lengthened the emergency programme by nine months but added a rider that the programme should not be entirely used up . The central bank said further stimulus was necessary given the Covid-19 induced slowdown. It kept interest rates unchanged.

Seperately, the EU has reached an agreement with Hungary and Poland, paving the way for approval of the bloc’s €1.8trn seven-year  budget and a €750bn emergency package to help European economies recover from covid-19.


Shares in Airbnb rose sharply following their  IPO, the biggest US flotation of 2020. They opened at $146, way above the $68 IPO list price, before reaching $165,  which gave the home-rental platform a valuation of more than $100 billion. Earlier this year, as the covid-19 pandemic stopped travel, AirBnB cut its workforce by a quarter. It recovered as lock-downs eased and many travellers chose homes over hotels.​

Mark Littlewood: A Covid wealth tax would be a disaster

In an opinion piece for City AM, Mark Littlewood, the director-general of the Institute of Economic Affairs, says proposals from the Wealth Tax Commission for a “massive, one-off confiscation of personal wealth and property” might seem moderate on the surface, but the “results could be devastating — for individuals, and for the UK economy as a whole.” Littlewood adds that there is no guarantee the move would raise the predicted £250bn; administration costs of the policy have not been considered nor has the fact that the super-wealthy would simply accelerate their use of debt to make their assets harder to plunder. He goes on to say that “even if the tax did bring in the claimed £250bn over five years, the downstream effects on growth and other taxes would be disastrous. What business adviser could recommend a wealthy citizen move to a country that has such a penalising tax? How could they guarantee that this “one-off” raid didn’t become a regular feature of the tax structure?” Littlewood is joined by the Institute of Directors which warns the plan could ruin efforts to rebuild after Covid and destroy entrepreneurship. Also commenting is Gary Heynes, a partner at the audit firm RSM, who points out that the top 1% of earners already pay 30% of the income tax take and asks: “Is it fair to layer another tax on the same group?” Finally, the FT’s Chris Giles asserts that a wealth tax is unnecessary. “Sensible income, expenditure, property and inheritance taxation can raise the revenues required to repair any holes in the public finances and redistribute income and wealth as society demands.”

Ramping up CGT will pour cold water over Britain’s entrepreneurialism

Writing for the Telegraph, Tej Parikh of the Institute of Directors and Lord Leigh of Hurley of Cavendish Corporate Finance say capital gains tax should be treated differently to income tax as there is more risk involved with investment. They write: “From a policy-wonk’s point of view, sharply hiking the tax on capital gains in order to equalise it with that on income seems superficially attractive, but it is flawed, and would come at the least opportune moment imaginable.” The pair go on to suggest that there may well be a case to investigate tightening the rules where CGT benefits those not taking on so much risk. “But any reform would have to be done with extreme care to prevent a knock-on effect. Positive entrepreneurialism will be more important than ever in the months ahead.”

Tory MPs urge stamp duty reform

A group of Conservative MPs calling themselves the Property Research Group (PRG) are urging Boris Johnson to overhaul Britain’s “broken” property taxes – council tax, inheritance tax and stamp duties. They argue that the Government could promote home ownership, increase social mobility and deliver on the Prime Minister’s “levelling up” agenda by reforming the levies. Kevin Hollinrake, the group’s leader, said reforming property taxes would be “one of the most visible ways [Mr Johnson] could help put more money into people’s pockets”. He added: “Council tax, stamp duty and business rates are just three examples of an out-of-date system which is in desperate need of reform.”

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.