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.
The dangers of overstretching your financial resources
In the boom times it seemed that credit card applications were falling through our doors on a daily basis, loans were freely available on the high street and competition in the mortgage market was intense. Indeed many people were actually applying for and receiving mortgage arrangements of over 100% of the value of the property they were acquiring and using this to refurbish their new homes. In...Read More
Dollar plunges on foreign exchange
The dollar has today plunged on the currency markets after the government reduced interest rates to 0% in a bid to refloat the US economy. The move has seen the currency hit a 13 year low against the yen and fall dramatically against the euro. The US government is now focused on a policy to make borrowing as cheap as possible in order to try and encourage consumer spending which should eventually...Read More
Another leisure firm bites the dust
After news that XL Leisure Group, one of the UK's largest leisure groups, has gone into administration it seems that there are up to a dozen other companies literally on the brink of going under. When you consider that the XL Leisure issue has left up to 90,000 people stranded and unable to get home as planned, how bad can it get if another 12 companies were to go under!
Consumer confidence takes a battering
Despite the fact that it appears as though the UK economy is at least moving in the right direction, consumer confidence fell by four points to -17 in November according to the GfK NOP. While this is a marked improvement on the -35 figure last year it is still disappointing to see a downturn in consumer confidence in the short term at least. One of the main problems which consumers in the UK ha...Read More
One in five shops empty in north of England
04/02/2015 More than one in five shops in northern towns in the UK are empty, according to research from the Local Data Company. This compares to one in ten shops in the south of the UK, highlighting the growing north/south divide. Despite the regional divide widening, overall there has been a “market improvement” in the number of empty shops. The average vacancy rate was 13.3% in the l...Read More