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.
Did Tory voters get what they wanted?
There are many policy differences between the Conservative party and the Liberal Democratic Party and indeed a number of prominent Liberal Democrat MPs are still unconvinced about the makeup of the coalition. However, when you bear in mind that the Conservative party gained by far and away the largest share of the popular vote are Tory voters getting what they expected? There is growing dismay...Read More
British Airways needs to reduce costs
Last week's revelation that British Airways made a loss of £400 million for the 12 months to March 2009 has shocked many in the city. While it has been clear for some time that the likes of British Airways were struggling under the UK recession, and the worldwide recession, a company which has turned a £1 billion profit last year into a £400 million loss obviously needs urgent attention.
Big business finally waking up to financial restraints
A report by Deloitte LLP has today revealed that 50% of executive directors working at FTSE 350 companies in the UK will incur a further pay freeze in 2010 even though many also saw their remuneration frozen in 2009. Even those who are lucky enough to receive an increase in their remuneration in 2010 are unlikely to see an increase above 3%. After a period when executive remuneration did not se...Read More
Strikes On The Way In The Public Sector
As more than 800,000 public sector workers voted for an escalating series of stoppages there are real concerns that the worst case scenario, a summer of discontent, could materialise in the UK. While talk of sustained industrial action in the UK has been doing the rounds for some weeks it looks as though a number of 2 day strikes will be announced fairly soon.
The strike action wou...
Corporate failures still a worry in the north-west
It has been revealed today that 245 companies in the north-west of England failed in February against 290 in the corresponding month in 2009. While this is a significant 15.5% reduction in corporate failures, the figures are still way too high and very uncomfortable for businesses and banks in the region. The rate of corporate failures in the north-west of England is the highest outside of London...Read More