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.
Good weather lifts UK retail sales
Retail sales in May were up 0.8% on a like for like basis compared with May 2009 which is a very positive move especially in the current environment. The British Retail Consortium believes that the good weather of the last few weeks has brought consumers out in large numbers with particular interest in clothing and footwear as well as a return to growth for food sales across the UK. So what does t...Read More
PwC concerned about return to recession
PwC has today issued a damning report on the UK economy and UK finances with a suggestion that a possible return to recession is a 25% to 30% probability. The report also suggests that the next incoming government will need to find an additional £20 billion a year to balance the books in the short term with an increase in VAT and the introduction of various environmental taxes likely to hit the U...Read More
The Spin King is back
Lord Mandelson has today stepped into the limelight and taken on the role of government enforcer with a mission to tackle the "doomsters" who are talking down the UK economy. While there is no doubt that Mandelson has taken on a number of significant tasks in the past, even he will have his work cut out trying to talk up the economy which is literally on its knees with unemployment set to rise sub...Read More
Is The Economic Straightjacket Tightening?
This week saw the largest weekly decline in two year UK government debt notes for 14 years with traders concerned that the recent spate of interest rate reductions in the UK may be at an end. The move was prompted after the Bank of EnglandÃ¢â‚¬â„¢s recent review of inflation which suggested that the rate could nudge towards 4% in the short term. Many experts believe that we are unl...Read More
UK trade deficit falls
Britain's trade deficit with the rest of the world narrowed to £3.5 billion in May, official figures have shown.May's data from the Office for National Statistics (ONS) compares with a shortfall of £4.2 billion in April.But the figures are highly likely to be changed in the coming months after the ONS upwardly revised April's data from £3.6 billion.The revision stems from the impact of carousel...Read More