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.
Is It Time To Batten Down The Hatches And Hope For The Best?
The UK economy has never been in such a dire state as it is today with the property market still falling, finance still not available to the masses, banks seeing their balance sheets crumbling and the government unable to help as the public sector deficit reaches epic proportions. Is it time to put our heads down and hope for the best or fight through this recession?
The subject of...
Inflation falls less than expected
The rate of inflation in UK, as measured by the Consumer Price Index (CPI), fell last month to 2.2% from 2.3% the previous month. Analysts had expected a more significant fall to around 1.9% and the recent strength would seem to indicate that the prospect of deflation is lessening by the month. The Retail Price Index (RPI) inflation measurement is already in negative territory although it edged up...Read More
Alistair Darling challenged to curb city remuneration
The last few days have seen the Chancellor of the Exchequer Alistair Darling move out of the shadows and take up the mantle regarding excessive pay in the city and huge bonuses. However, Alistair Darling was today challenged to rubberstamp the creation of a new "High Pay Commission" which would effectively oversee the City of London and regulate remuneration packages and bonuses. So how did the Ch...Read More
Have we kissed goodbye to boom and bust?
Gordon Brown famously declared that he had broken the cycle of boom and bust in the UK some time ago only to have this boast thrown back in his face. While many at the time questioned the decision to declare the end of the infamous boom and bust economic cycle in the UK, and around the world, Gordon Brown was adamant that he had cracked the code! The truth is that the boom and bust economic cyc...Read More
Will the recession impact upon UK education?
While the ongoing construction of new schools across the UK continues unabated, there is serious concern about both college and university education in the short to medium term. Not only is the government running short of significant funds but many parents, who have historically paid for their children to go on to further education, are now finding the extra funding very difficult to come by. Whil...Read More