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.
British Airways takes on the unions
British Airways has successfully taken on the unions after the High Court dismissed a union demand for an injunction to stop the ongoing cost-cutting programme at the company. The issue revolves around the British Airways cabin crew who have been forced to accept a reduction in cabin crew numbers from 15 to 14 on long haul flights, something which is perfectly legal and in line with current regula...Read More
UK economy soldiers on
The British economy continued to expand in the first quarter of 2007, albeit at a static rate.According to preliminary official figures Britain plc grew 0.7 per cent in the first three months of this year, consistent with data from the tail end of 2006.The Office for National Statistics (ONS) says that today's figures mean the UK economy has grown by 2.8 per cent in the last 12 months.The growth o...Read More
UK economic downturn worst since 1980
Official figures released by the Office for National statistics have dismayed many economic experts and confirmed that the UK is officially in recession. It has been revealed that in the final three months of 2008 the UK economy contracted by 1.5% and when added to the 0.6% fall in the third quarter of 2008, there was a combined fall in the economy of 2.1% in the second half of 2008. This is offic...Read More
Should politicians around the world take their share of the blame?
As we see the US Congress rushing through a taxation scheme which will take 90% of employee earnings over $250,000 of companies which have received more than $5 billion in taxpayer funding, is it time for the politicians to take their share of the blame?
Without leaning towards any particular political party, or against any particular political party, surely the politicians around t...
Is the voice of the UK government weakening on the world scene?
As we approach the London G20 meeting there are serious concerns that the UK government is losing its power on the world scene and other governments around the world are "doing their own thing". Despite initially receiving substantial interest and support from other governments around the world for their massive stimulus package it would appear that many governments are looking towards the regulat...Read More