One in three plan to downsize offices – business news 11 February 2021.
James Salmon, Operations Director.
One in three SMEs plan to downsize offices, Sunak urged to boost access to SEISS, ‘Normal’ bank lending to SMEs down 10%, VR brings staff back together, 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.
One in three small businesses plans to downsize offices
Research by Grant Thornton reveals that a third of small businesses intend to reduce their office space going forward as the pandemic accelerates the take-up of home working. Of those who expect to reduce their space, 74% anticipate decreasing their existing footprint by up to a quarter. A further 12% expect to reduce their office space by up to a half. John Burgess, associate director, real estate and assets, Grant Thornton UK, said: “Our research shows that as home working becomes the norm, and demand for office space reduces, businesses will be looking to scale back their property portfolios and optimise spaces to suit new working models.”
Sunak urged to boost access to SEISS
Chancellor Rishi Sunak is being urged to make the Self-employed Income Support Scheme (SEISS) more accessible, with many self-employed workers ineligible to claim support under the programme. Andy Chamberlain, Director of Policy at The Association of Independent Professionals and the Self-Employed (IPSE), stated: “We are calling on the Government to include these people in the next round of SEISS, because they would have done a tax return by now. Because they have done that, HMRC has the information it needs in order to process those grant payments.” He went on: “The problem is, because of the arbitrary nature of the criteria, many have not been able to access SEISS. What we are seeing is wildly different experiences – Person A has been well looked after while Person B has not been very well looked after at all.”
‘Normal’ bank lending to SMEs down 10% last year from £168bn
Research by debt specialist ACP Altenburg Advisory reveals that ‘normal’ lending to SMEs fell from £168bn in December 2019 to £152bn in December 2020, with emergency coronavirus funding through the Coronavirus Business Interruption Loan Scheme (CBLIS) and the Bounce Back Loan Scheme (BBLS) seeing almost £61bn lent to such firms by December 2020. Will Senbanjo, partner at ACP Altenburg Advisory, remarked: “SMEs looking to raise additional funds for growth in the months ahead may need to look at the alternative options, such as asset-based lending or alternative lender funding. Alternative lenders are open for business and are keen to deploy capital to well-managed businesses that have strong growth potential.”
VR brings staff back together
Michael Cogley reports in the Telegraph on employers using virtual reality to help staff reconnect with colleagues and inspire new ways of thinking. Virtual reality (VR) and augmented reality (AR) headsets allow users to see and interact with others in the same digital space and have been used across industries to recreates a range of scenarios.
PwC and Deloitte are among the businesses using VR. “Because we use a virtual office, and because there are avatars, it does allow you to bump into colleagues in a way you can’t do in organised video conferencing,” says Ed Greig, Deloitte’s chief disrupter. PwC has tipped VR and AR to add $1.5trn to the global economy by 2030.
In the UK alone, the technologies could add up to $69.3bn to GDP and enhance more than 400,000 jobs. “Headsets are now lighter, cheaper and more comfortable to use and there are significant improvements being made around the field-of-view, resolution and software,” PwC said.
Financial services contribute record taxes
Financial services firms contributed a record £75.6bn in tax to the Treasury in the past fiscal year, according to a report for the City of London Corporation by PwC. The contribution included £34.1bn in taxes borne directly by finance firms and an extra £41.5bn collected from staff and customers through employment taxes and VAT. The importance of the sector to the economy is underlined by data showing insurers, banks and pension funds account for 3% of the workforce – over a million jobs – but contribute one in every 10 pounds in employment taxes. Isabelle Jenkins, head of financial services at PwC, said: “This report shows the continuing importance of financial services to the economy and to the public finances. At a time when the Government is borrowing heavily to support the economy, the taxes generated by the sector are particularly important. We need to ensure that we have a tax system that supports growth in the sector, allowing it to contribute to the economic recovery following the pandemic, while generating tax revenue in a sustainable way.”
HMRC pays nearly 90% more in legal costs as number of cases lost increases
HMRC has paid 88% more in legal costs to taxpayers after losing cases in 2019/20 than it did in the year earlier period. Pinsent Masons partner Steven Porter commented: “The rise in the number of cases where taxpayers were awarded costs may suggest HMRC has been too bullish in some of the cases it has chosen to litigate.” A HMRC spokesperson said: “HMRC litigates in accordance with its obligations as the tax authority, and the Litigation and Settlement Strategy supports the correct discharge of those obligations.”
Prezzo to shut 22 restaurants after insolvency sale
Italian chain Prezzo will permanently close 22 restaurants after being bought out of pre-pack administration by private equity firm Cain International. As a result of the deal, 22 of the chain’s 178 restaurants will stay closed. Cain announced that 216 of its 2,900 jobs would be lost with those stores.
Covid-19 general news
There were 13,013 new cases in the UK yesterday (total 3.99m) with 1001 more deaths (total 115k).
Globally 435,081 new cases brought the total to above 107 million with 2,355,577 deaths.
152m vaccine does have now been given worldwide.
The American CDC has suggested the wearing of two masks, with a cloth mask over the top of a surgical mask, to maximise protection. The shift follows the release of an agency study that found wearing a cloth mask over a surgical mask, or modifying a surgical mask for a snug fit, made for better protection, reducing aerosol exposure by about 95%.
The World Health Organisation recommended the Oxford-AstraZeneca vaccine for all adults. The announcement is hoped to help calm worries about the jab’s efficacy among the over-65s, and against the variant ffrom South Africa.
Transport Secretary Grant Shapps has warned that people in the UK should not be booking holidays at home or abroad yet due to coronavirus. Shapps said he did not know “where we’ll be in terms of cases, deaths and vaccination” by the summer.
The Easyjet chief executive yesterday called on the government to provide details of how it will relax its current border restrictions to give people the confidence to travel again. Tuesday ministers unveiled details of a new hotel quarantine policy, which will see travelers from 33 red-list countries forced to pay £1,750 to spend 10 days in isolation in a hotel upon return. London’s Heathrow airport has also urged the British government to set out a strategy for resuming flights following a tightening of travel curbs that it says has essentially shut down travel.
AstraZeneca delivered full-year results in line with its expectations, as annual profit was boosted by the sale of new oncology and bio-pharmaceuticals medicines. For the year ended 31 December, pre-tax profit more than doubled to $3.92 billion from $1.55 billion year-on-year as revenue increased by 9% to $26.62 billion.
Ireland’s government is likely to maintain most of the current virus restrictions until early April at least, in an effort to prevent the spread of variants, Prime Minister Micheal Martin told RTE Radio.
World Health Organization investigators have identified possible Covid-19 cases that appeared two months before the disease was identified in late 2019.
Retail cost
Britain’s three pandemic lock-downs have cost retailers that have been ordered to close about 22 billion pounds in lost sales, according to a trade group. In a sign of the mounting toll covid-19 is taking on one of the country’s biggest employment sectors, the British Retail Consortium says 2020 was the worst year on record, with in-store non-food sales declining by 24%.
Markets.
Yesterday the FTSE 100 closed at down marginally 7.2 points at 6524.36. As European stocks also fell Overnight, the S&P 500 fell 0.03% and the NASDAQ dropped 0.25%. Asian stocks were up this morning.
The dollars decline is slowing but not stopping. Sterling is at 1.1398 Euros and 1.382 US Dollars.
The Oil Price extended its recent rally for a ninth day yesterday, its longest winning streak in two years, supported by supply cuts and hopes that vaccine roll-outs will drive a recovery in demand. but has started to give up some of those gains on rumours the big producers might cut output. Brent Crude is at $61.10
While Gold climbed as markets responded to faltering optimism and a falling dollar. Gold is at $1841.75.
Supermarket price war
J Sainsbury is slashing the prices of hundreds of essential groceries to match discount rival Aldi. The supermarket chain told the PA news agency it is launching an Aldi price match scheme as the UK’s largest grocers continue attempts to thwart the rapid growth of German discounters Aldi and Lidl. Sainsbury’s said its commitment will mean that around 250 products will see prices reduced to match the equivalent items at Aldi.
Developers hit with new taxes to pay for unsafe cladding removal
The Housing Secretary has announced two new taxes levied on property developers designed to help the Government pay for the removal of unsafe cladding from high rise buildings post-Grenfell. The move by Robert Jenrick sent shares in major UK property developers down yesterday.
Separately Persimmon said it had identified unsafe cladding materials in high-rise buildings that it had developed and would book a £75 million charge to pay for replacement work.
Petro-states could lose $13trn in revenue by 2041
A new report from the think-tank Carbon Tracker says that oil and gas producing countries face a multi-trillion-dollar hole in their revenue as efforts to contain the rise in global temperatures drive the decarbonisation of energy supplies. It estimates the cumulative total revenue loss for all oil-producing countries by 2040 will be $13trn. A group of 40 countries Carbon Tracker describes as “petrostates” could suffer an average loss of 46% of oil and gas revenue. The report says diversification – of government revenue and national economies – is an urgent task.
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.