100,000 British companies in financial trouble
A report by Begbies Traynor claims that upwards of 100,000 British companies are in serious financial trouble with over £58 billion of debt between them. There are also 50,000 other companies likely to be hit by UK government cutbacks which will make the situation even worse and potentially tip tens of thousands more companies over the edge. There is no doubt that beneath the surface there are many companies struggling to survive and any lurch downwards by the UK economy could have a catastrophic impact on the UK business arena.
The report by Begbies Traynor is a major blow to the UK financial arena although thankfully UK banks have grouped together to create a £1.5 billion rescue fund for small to medium-sized businesses. Whether this is too little too late remains to be seen but there is no doubt that UK companies do need increased liquidity and they need it quickly!
Inflation in the UK continues to remain stubbornly high, unemployment in the UK is creeping ever higher and the economy is under major pressure. The higher unemployment rises the more pressure this places upon the welfare state and ultimately we could see many of the budget cuts introduced by the government negated by a massive increase in benefit payments.
Can we now call the end of the European recession?
Today's economic data from France and Germany was far better than many expected but can we now call the end of the European recession? Well there's no doubt that the French and German economies are two of the most influential within Europe there's also no doubt that both countries have significant budget deficits. As a consequence, austerity measures taken across Europe will impact the short to...Read More
Wildcat strikes spread to other oil refineries
As we reported just a few days ago, an unofficial strike at the Lindsey oil refinery has now spread to other areas of the country. The initial unofficial strike action came about when over 50 redundancies were announced at one of the subcontractors operating from the Lindsey oil refinery, and despite union intervention the dispute is still rolling on.
At a time when the UK economy...
Darling says the UK will make it through the other side
Alistair Darling has come out with one of the most bland statements ever seen from a UK Chancellor when he confirmed that he believes that the UK economy will get through a 'difficult period'. Of course the UK will make it through to the other side, of course it will bounce back in due course but what wreckage will it leave in its wake as the slowdown crushes all before it.
UK trade gap narrows in November
Figures from the Office for National Statistics show that the UK trade gap with the rest of the world narrowed from £7 billion in October to £6.8 billion in November. Analysts had been expecting a figure of around £7 billion so the reduction in the gap has been well received. But what does this mean for the UK economy? It is interesting to see that exports increased by 0.1% during November w...Read More
Is the Scottish economy on a knife edge?
News that the Diageo rescue plan has ultimately failed and the company will be closing down its Kilmarnock plant, although investing additional funds in other Scottish operations, is another hammer blow for the Scottish workforce which has been under significant pressure of late. Despite the fact that the Scottish executive has been very aggressive in its stance against the Diageo move, which ulti...Read More