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.
Number of insolvencies rises
The number of insolvencies in England and Wales rose during the third quarter of the year, according to government figures.Individual insolvencies increased by 8.8 per cent during the period, to reach 27,087, while business insolvencies numbered 4,001, an increase of 10.5 per cent over the quarter and 26.3 per cent compared with figures from a year ago.In terms of receiverships, administrations an...Read More
Will the Bank of England reduce interest rates?
It has been announced that the central bank of Australia has cut base rates in the country by one full percentage point overnight to try and avert a banking crisis in Australia. While this move does not impact upon the UK in any way it does pave the way for a slashing of rates in the UK to try and halt the slide of both investment markets and the economy.
Pressure has been mounting...
Orthodox economic solutions are nearly exhausted - what next?
As we see UK base rates fall to 1.5% there is concern that the UK government will be forced to use more unorthodox and risky initiatives in its mission to refloat the UK economy. Indeed only yesterday evening we saw speculation that the Treasury is on the verge of printing more money as a means of combating deflation in the UK and even though this has been denied, a Treasury spokesperson confirmed...Read More
'Good Easter' for UK shopkeepers
This year's Easter will be a good one for the nation's shopkeepers, according to the British Retail Consortium (BRC).Releasing its spending statistics for the week up to and including Easter Saturday, the BRC predicts that shoppers are set to spend an additional £670 million more than an average April week.This contributes to a four per cent increase on last year's total spending on Easter, with...Read More
More woes for UK travel industry
Last week's sudden demise of Flyglobespan has had an impact on the whole UK travel industry with news of further casualties over the last few days. UK travel outfit Allbury Travel Group, also trading as Libra Holidays, Argo Holidays and Jetlife has fallen by the wayside and there are fears this could be the first of many additional casualties over the festive period. So why has the sector suddenly...Read More