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.
Will improved GDP lead to increased liquidity?
There are high hopes this weekend that an improvement in UK GDP, announced earlier this week, could lead to increased liquidity in the banking arena which should then help both consumers and businesses. There is no doubt that many banks have been holding back on increasing their liquidity due to concerns about the economy although hopefully this week's figures should give them some form of comfort...Read More
Barclays bank set to increase staff salaries
Barclays bank is headed for controversy as the UK government and regulators watch over the bank with news that staff salaries at Barclays Capital Investment will be increased across the board and backdated to June 2009. This is a direct response to the UK government's attempt to limit bonus payments in the short to medium term although this does not mean that Barclays Capital Investment will not b...Read More
Recession in Britain set to last 18 months
City analysts today warned the government that the British economy is set to witness a recession which could last up to 18 months. Capital Economics predicts that the gross domestic product for the UK will fall for the first time since the recession of 1990, down by 0.2%. However, it has also been warned that these predictions may be fairly conservative ones - with analysts preparing for even larg...Read More
UK banks still short of capital
In a disappointing move for the UK banking sector and the UK government, the Bank of England still believes that many UK banks are still short of capital adequacy. This is despite the fact that billions upon billions of pounds of taxpayer's money has been poured into the sector, with little return as yet. So what exactly is going on?
While it would be wrong to suggest that the UK ba...
Is the next government taking on a poisoned chalice?
As we approach the next general election more and more people believe we will see a change of government with the Labour Party cast aside in favour of the Conservatives. However, even the most ardent Tory supporters are concerned that the next government will inherit something of a poisoned chalice because ultimately there will be very little room for manoeuvre with regards to taxes and investment...Read More