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.
Alistair Darling's growth forecast smashed to pieces
Today's news that the UK economy fell by a shocking 0.4% in the third quarter of 2009, against analysts expectations of a rise of 0.2%, has blown Alistair Darling's budget forecasts to pieces. He had originally suggested that the UK economy would move out of recession in the second half of 2009 yet we are now moving towards the latter part of 2009 and many analysts are now concerned that the UK co...Read More
Railway strike could cost £600 million a day
It has been revealed that millions of people in the UK could struggle to make it to work on Tuesday, 6 April due to the rail strike. It is estimated that 10% of the 30 million UK workforce will be affected which will cost the UK economy around £600 million a day in lost revenue and extra cost. It will be interesting to see whether the rail strike proceeds as planned because it has the potential t...Read More
How does the UK balance sheet look today?
While the UK national debt figure of £1.45 trillion has hit the headlines over the last few days (with many believing it could move further towards £2 trillion before improving) it is worth touching base with reality and the fact that total domestic wealth in the UK still stands at £9 trillion! The figures were released by the Office for National Statistics to show that while the UK is strug...Read More
Will base rates come to the rescue of sterling?
While historically sterling has moved in tandem with UK base rates and the outlook for the UK economy, there are concerns that the option to increase base rates in the short, medium and longer term may not be enough to defend the UK currency. More and more emphasis is now being put upon the state of the UK finances and the fact that the UK government has as yet been unable to issue a detailed plan...Read More
Labour government draws the battle lines for next election
Lord Mandelson has today reiterated the fact that the UK government needs to hold the line and hold its nerve as we approach the next general election. Despite the fact that many people have already written off Gordon Brown in the next gen election, there is still much to play for and many mistakes to be made over the coming months. Lord Mandelson appears to have injected a siege mentality within...Read More