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.
Phoenix Four and the UK government witch hunt
The UK government is under attack from the infamous Phoenix Four who have been hung out to dry in the press with regards to the collapse of MG Rover some four years ago. A government report which took four years to produce and £16 million of taxpayer's money would appear to lay the blame fairly and squarely at the door of the Phoenix Four who are accused of unreasonable remuneration packages. How...Read More
Has Gordon Brown angered his new friend Barak Obama?
As Barack Obama pushes ahead with his "protectionism bill" to defend the US economy against foreign traders and foreign companies, it would appear that Gordon Brown is at serious odds with this strategy. It is widely known that the two men have discussed the issue since Obama's induction into the White House although Gordon Brown's public statements place him at the opposite end of the spectrum wi...Read More
Can we now breathe a sigh of relief about the UK banking sector?
This week saw results from the major UK banking giants which were well ahead of analyst's expectations and seemed, on the surface at least, to indicate a significant improvement in the UK financial arena. However, can we now breathe a sigh of relief about the UK banking sector? While there's no doubt that UK banking operations have improved dramatically from lows seen over the last two years th...Read More
Just when the economy showed signs of recovery........
There can be few Prime Ministers who have experienced the difficult situations and circumstances which have arisen under Gordon Brown's tenure over the last 12 months. We have seen the credit crunch, the collapse in UK banking system, the recession, infighting in government, the MP's expenses scandal and now we have the outbreak of swine flu which could turn out to be a worldwide pandemic.
Will Diageo backtrack on plans for plant closure in Scotland?
The last few days have seen the bid to save the Kilmarnock Diageo plant from closure reach new highs with hundreds of workers, members of the public and politicians involved in various marches and protests over the weekend. While the company itself has been fairly quiet over the last few days there is a feeling that despite the public outcry with regards to the planned closure, it is highly unlike...Read More