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.
UK consumers rein in spending
At a time when the UK economy is beginning to struggle it seems as though more and more consumers in the UK are prepared to pay off their debts rather than increase spending - and potentially create more problems for the future. Figures from the Office for National Statistics show that during August UK consumers paid off a net £120 million from outstanding debts, UK mortgage approvals fell and th...Read More
Are we approaching the spring of discontent?
Rail Union leaders have confirmed that their members will bring the rail network to its knees after the Easter bank holiday weekend with four days of stoppages beginning on Tuesday. Union chiefs have been vocal in their belief that they will "close down" the rail network as a number of rush hour walkouts have been planned. Just weeks before an expected UK election this is the last thing which Gord...Read More
If you haven't got it how can you spend it?
As the UK population again moves under the spotlight regarding the fall in the UK economy many are now starting to ask the question "if you haven't got money how can you spend it?". A quick review of the last six months has seen the UK population pushed to the forefront of recovery plans in the UK and seen by many as the spark to light the fire. We have seen VAT reductions, base rates fall yet fur...Read More
US Federal Reserve watching job situation
The US Federal Reserve is closely watching the US employment market with concerns that downward pressure on employment figures could see the Federal Reserve push ahead with plans to move borrowing costs even lower. As we mentioned in one of our earlier articles, there is growing concern amongst investors that the Federal Reserve is even contemplating a further easing of the cost of borrowing to in...Read More
UK workers protest at cheap foreign labour
Today saw a substantial demonstration by 800 workers at the Lindsey oil refinery at North Killingholme in Lincolnshire. It would appear that trouble has been brewing at the refinery for some time with suggestions that UK workers have been excluded from a number of engineering and construction projects in the region. The situation saw emotions running high and the Humberside police were cal...