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.
Are we on the verge of significant job cuts in the public sector?
A report issued today would appear to confirm that the UK public sector, a sector which has mushroomed in size over the last few years, is set to be slashed over the coming 12 months with one in three public sector companies looking to reduce their workforce. Despite the fact that the UK government is arguing that investment in the public sector should be maintained and increased as the UK pulls a...Read More
What next for the UK after confirmation of recession?
For many months analyst have been waiting for today when the UK is officially confirmed as being in a recession (technically confirmed after a reduction in the economy for two consecutive quarters) but the speed of the fall has frightened many. There are serious concerns that the UK economy is effectively in "freefall" and the various government rescue packages and economic stimulus programs are n...Read More
Shoplifting increases in the UK
In a startling revelation it has been revealed that middle-class people in the UK, struggling to meet their financial liabilities, seem unwilling to give up on the luxuries of life with many turning to shoplifting goods such as expensive food, alcohol and cosmetics. Figures supplied by the Centre for Retail Research claimed that shoplifting has increased by 20% in the UK over the last 12 months an...Read More
Bond yields fall amid concerns of double dip recession
The yield on 10 year government bonds fell to record lows yesterday in the UK amid signs that the UK economy is poised for a significant downward turn. This is the latest knock on effect of recent comments from MPC members in relation to a possible double dip recession in the UK. As a consequence, Bank of England growth forecasts for 2010, 2011 and beyond are now being called into question. Gov...Read More
Political leaders agree to general election TV debates
In a sign that the UK political arena is beginning to reflect the US political scene more and more, it has been revealed that Gordon Brown, David Cameron and Nick Clegg have all agreed to participate in three live TV debates ahead of the general election. Despite the fact that Gordon Brown has refused point blank in the past to become involved in live TV debates with his major competitors, many be...Read More