Tier 3 would be a killer blow for London – business news 10 December 2020.

James Salmon, Operations Director.

Tier 3 would be a killer blow for London, UK Growth slowed in October , covid-19, UK citizens could be barred from entering Europe on 1st January, 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.

Tier 3 would be a killer blow for London

With some of the highest rates of transmission in the country among its boroughs, there is talk that London will be placed in Tier 3.

Kate Nicholls, chief executive of UK Hospitality, has warned that placing London into Tier 3 restrictions before Christmas will result in 150,000 job losses in the industry. Nicholls said closing the sector would deliver a “killer blow” to hundreds of businesses already struggling to survive. “We know that around 800,000 people work in the hospitality sector in London.

Even without Tier 3, we think the workforce will shrink by around 25% compared to pre-pandemic levels. But if the Government puts us into Tier 3, we believe the number will drop to 60% or even lower. That would mean a loss of up to 150,000 more jobs.” The warning comes as Westminster MP Nickie Aiken told residents to keep following rules or risk a tougher lockdown next week.

UK Growth slowed 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.

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 lock-down.

Output is expected to have shrunk again in November after England’s second shut-down forced businesses to close.

We could be barred from entering Europe on 1st January

UK travellers could be barred from entering the E.U. from 1st January 2021 as travel rules associated with being part of the EU expire and pandemic restrictions block entry.

The UK will become a “third-party nation” when it stops following EU trading rules on 31st December.  This means entry into the EU would then be based on essential travel only. Only 8 nations have been put on the approved list for free travel and there are no plans to add the UK

CBI touts digital voucher scheme to boost productivity

The Confederation of British Industry is in talks with the Government about a “productivity voucher” scheme that would provide small firms a 20% discount to adopt technology that experts believe can help solve the productivity puzzle. “It’s an idea that the Government is very open to, and we’re talking to them and really working through some of the detail,” said Rain Newton-Smith, CBI chief economist. “There’s an opportunity for the Government to play a catalytic role like they did with Eat Out to Help Out in giving everyone the confidence and the means to invest in digital technologies.”

PPE contracts worth nearly £500m awarded to companies listed in tax havens

Analysis for the Labour party claims that ministers have awarded PPE contracts worth £470m to seven companies linked to tax havens. Shadow cabinet office minister Rachel Reeves said: “Despite evidence from the National Audit Office that taxpayer money was used to pay well over the odds for PPE […] we are seeing no real moves to increase clarity or trust.”

Ban on tenant evictions just delays the pain

The Times’ James Hurley comments on the Government’s decision to extend a ban on evicting commercial tenants until March 31 to help businesses to survive the COVID-19 pandemic. Although the move was welcomed by tenants and the British Property Federation approved of the commitment that there would be no further extensions, experts say the move has simply delayed some difficult decisions. Analysis by UHY Hacker Young indicates there are at least 3,300 insolvencies “stored up” for when the moratorium ends. Peter Kubik, partner at the firm, said thousands of companies only being kept alive because HMRC, landlords and other creditors are prevented from winding them up. “At some point that will have to come to an end.”

E-cigarettes company out of puff

Smith & Williamson have been appointed by Kind Consumer, which made the nicotine-inhaling device branded as Voke after the company fell into administration. Kind Consumer has now agreed to a sale of assets for £1.6m to OBG Consumer Scientific, a subsidiary of Pharmaserve, a privately owned group and supplier. Shareholders are unlikely to see any of their cash returned.

A million homeowners could become mortgage prisoners

Money Saving Expert Martin Lewis warned MPs on the Treasury Select Committee yesterday that over 1m home owners could soon be trapped in mortgages they cannot afford. “We’ve got 250,000 mortgage prisoners now, but I dread to think how many we will have in a year-and-a half. It wouldn’t surprise me if it was four or five times that number,” he said.

Covid-19 general news

There were 16,578 new cases in the UK yesterday, bringing the total to 1.77m. With 533 deaths bringing the official total to 62,566.

Globally 668,873 new cases brought the total above 68 million with deaths reaching 1,570,643.

Two people in the UK with severe allergies experienced reactions to the Pfizer shot, highlighting the fact that vaccines are not universal.

Deaths in the U.S. from Covid-19 surpassed 3,000 a day for the first time as the country approaches 300,000.

A new report by the US CDC  says the virus was present in Italy in November 2019


Global tocks stumbled as the NASDAQ dropped 1.94% and the S&P fell 0.79% amid diminished prospects of a US stimulus deal and Brexit talks hit another road block.

However the falling pound supported the FTSE 100 and kept in the black, just.

The pound has dropped after Boris Johnson’s dinner with the EU President Ursula Von der Leyen ended without a break through in negotiations and said very large gaps remain, but they agreed to keep trying until Sunday. The pound is at 1.10 Euros and 1.33 US Dollars.

PM Boris Johnson has said the EU is insisting on terms “no prime minister could accept” in UK-EU trade talks. The PM told MPs “a good deal is still there to be done”. However, Johnson said the EU was seeking an “automatic right” to retaliate against the UK if its labour and environmental standards diverged from theirs.

Bloomberg have reported the United Kingdom economy could suffer a 1.5% drop in GDP in the event of a no deal Brexit.

The UK and Singapore have signed a free trade agreement covering £17 billion of trade in goods and services and begun negotiations on the UK-Singapore Digital Economy Agreement.

Morgan Stanley are moving $120 billion in assets to Germany.

London Stock Exchange has received approval from the FCA for its acquisition of Refinitiv.

Brent is at $49.1 and Gold is at $1833


G4S said it had accepted a sweetened £3.8 billion takeover bid from rival Allied Universal. The new offer trumped a rival bid from Garda World Security.


Facebook has been hit by an anti trust lawsuit from America’s Federal Trade Commission and 48 states, alleging antitrust breaches, seeking to break up the tech giant and force it to sell Instagram and Whatsapp.

HMRC chided for threatening families left penniless by the pandemic

The Times details alleged enforcement tactics employed by HMRC to recover taxes from struggling families during the pandemic. Letters have been sent accusing people of “deliberately” choosing not to pay taxes and warning that officials “can take money directly from your bank or business society accounts”. The enforcement methods, which include the use of eight private debt collection companies, have been condemned for causing “distress” and “emotional trauma”. In the 2019/20 financial year, HMRC gave 1.1m cases to private debt collectors – more than double the number five years earlier. HMRC spent £25.4m on debt collection services in 2019, according to figures compiled by UHY Hacker Young. Over the past decade it paid at least £179m to debt collectors. Rushanara Ali, a Labour MP on the Treasury select committee, called for a review of public services’ use of debt collection agencies and aggressive practices. “We all recognise the need to recover taxes but in the middle of the pandemic there needs to be greater sensitivity so that it doesn’t become counter-productive,” she said – a position the Times agrees with in an editorial piece.

Treasury initiates VAT review of sharing economy

The Treasury has launched a review into VAT and the sharing economy in a move that could lead to higher costs for people who use services such as Uber and Airbnb. The consultation comes amid concern that more services will move online, costing the Treasury as much as £20bn in lost revenue. Physical services charge 20% VAT, but most operators for Uber, Airbnb and TaskRabbit, an online freelance labour marketplace, pay nothing because the individual providers fall below the VAT threshold of £85,000 of turnover. The Treasury said that it also was concerned about “ensuring fair competition and a level playing field for all businesses”. Chris Sanger, global tax leader at EY, said: “The tax system normally seeks not to draw a distinction between different types of business model. Now it provides an incentive in favour of the sharing economy and self-employed, and that creates a risk for the exchequer.”


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.

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.

Keep up to date with the latest news by following us on social media:-

CPA on Linkedin

CPA on facebook

CPA on twitter

See all our latest news here!

Housekeeping: Opening a New Account

Late payments are never good for business. What can you do?

Get paid earlier by understanding why late payments happen.

Protecting Your Business isn’t Half As Painful As You Think

The Good, the Bad and the Ugly – recognising the types of payers you do business with!

See our blog on how to communicate with your debtor early and clearly to set the framework for prompt payments

Everything You Always Wanted To Know About Debt Recovery (But Were Afraid To Ask)

Understand the “why” behind late payments

Read our blog on what to do when not paid on time

10 Bad Habits Every Credit Controller Should Give Up

The Credit Controller’s Best Friend

Debt Recovery: It’s Easier Than You Think!

How Managing Your Cash Flow Can Make You (and Your Business) A Success

Avoid insolvency – Don’t let your money go up in smoke

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.

25 excuses for late payment and how to get around them.

Read our Cash Flow Advice

Read about our overdue account recovery service

Read our blog – What is credit management?

Read our blog – How to select a debt collection agency

20 ways to avoid identity theft

see our blog – 15 steps to avoid invoice fraud

Overcoming 5 common reasons for disputed invoices

As insolvencies rise, could you spot these warning signs in your customers?

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.