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 government looking to take control of the online arena
We recently covered a report by the Office of Fair Trading into information farmed from the Internet by various UK retail sites. In some cases this information, which has been collected anonymously, has been used to try and predict customer requirements, customer activity and also to pitch items and services at "acceptable prices". In essence, many Internet users are having their activity recorded...Read More
Gordon Brown's outside talent pool dries up
It was June 2007 when Gordon Brown announced his plans to create a pool of ministers from outside of politics to bring about the so-called "government of all the talents". However, while five ministers were initially appointed from outside the political scene, today's departure of Lady Vadera leaves just one minister from the original five. The fact that four have left already, in just a few month...Read More
When will unemployment in the UK start to fall?
A report in the financial press today suggests that UK unemployment will peak at 2.8 million in 2010 but there is no suggestion as to when we can expect a significant fall in unemployment. While the fact that unemployment appears unlikely to reach the 3 million barrier has been well received there is still confusion and debate as to how quickly we can expect the unemployment number to come down on...Read More
No Decision Yet On Borrowing Rules - Alistair Darling
In line with the government's recent strategy of late, the newspapers have been full of stories about an impending change in the fiscal rules which were core to Gordon Brown's time at the Treasury. The rules were introduced for future Labour government's as Mr Brown boasted that he had cracked the traditional boom and bust economic cycle and was in better control of the economy than anyone from t...Read More
Russian authorities unlikely to raise base rates
Despite the fact that the Russian government recently announced the introduction of a ban on the export of grain due to the terrible drought sweeping across Russia, it is unlikely that the central bank will increase Russian base rates in the short-term. While there is obviously a major problem within Russia there are further issues around the world as the price of grain has moved ahead by 30% in t...Read More