UK government comes to the aid of struggling companies
In a positive sign for the UK government's various initiatives to assist and support small businesses in the UK, restructuring specialist Begbies Traynor has today issued a profits warning purely and simply because of the government's success in assisting companies. The group has warned that government intervention and various successful initiatives announced some time ago are starting to hit home and more and more companies have literally been saved from the scrapheap.
Despite the fact that the UK government has received heavy criticism for its slow response to various problems in the small, medium and large business arenas, there is no doubt that the financial help put in place some time ago is now starting to hit home. One of the issues highlighted by Begbies Traynor was the government's decision to allow companies to defer tax payments to protect cash flow in the short term, something which has seen many companies avoid disaster.
There are signs that Gordon Brown's various initiatives, many of which received critical comments in the financial press, are starting to kick in. It will be interesting to see how long the UK government retain these apparently successful initiatives and indeed how much funding will be given to struggling companies after the election. But has it all come too late for Gordon Brown's bid for re-election?
Share this..
Related stories
Repayment rates on loans rose in last six months
Borrowers seeking loans of £5,000 and £7,500 are being hit by higher repayment rates, as lenders shore up their lending criteria. Research conducted by MoneyExpert.com found that over the last six months, the average rate charged on a loan of £5,000 has risen from 9.45 per cent to 10.16 per cent. Meanwhile, the rate on a loan of £7,500 has edged up from 7.97 per cent to 8.88 per cent. Sean Gar...
Read MoreBarclays under pressure after toxic debt sell-off
Barclays bank is today under pressure after the announcement of a $12 billion Cayman Island deal which would see the bank's toxic debt transferred to an offshore company. We covered this particular deal in detail yesterday and the enormous figures which include $12 billion in toxic debt and $400 million in management charges paid over the next 10 years. So what is wrong with the move by Barclays b...
Read MoreOffshore Companies Offering Pay Day Loans At 2,255% APR
As the financial situation continues to worsen for many in the UK, it has been revealed that a Malta based finance company has been offering Pay Day loans to UK residents with an annual interest charge of 2,255%!
The firm in question is Pounds Till Payday and if the reports are correct they are doing very well in the UK and other countries such as the US. While they offer Pay Day l...
Consumer borrowing at highest level since 2005
01/05/2015 British people borrowed more money in March then they have done before the 2008 financial crisis, according to figures from the Bank of England (BoE). The biggest rise came from unsecured borrowing, such as overdrafts and bank loans, which accounted for £1.1 billion of the overall £1.24 billion rise. Credit card lending increased by £200 million. In contrast, mortgage app...
Read MoreUK businesses struggling to find financial liquidity
Despite the fact that the UK government has pumped over £200 billion of taxpayer’s money into the banking system it appears that around 30% of UK companies are still finding it difficult to gain access to finance. The situation appears to have worsened over the last three months despite assumptions that the UK economy has bottomed out and is now starting to recover. So what next for the UK busi...
Read More