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.
Bank of England sticks at 5.25%
The Bank of England has kept interest rates at 5.25 per cent, despite slowing consumer spending.Several reports have suggested that the UK might be moving towards recession due to the ongoing credit crunch.Ordinarily, this would lead to interest rate cuts in order to provide an economic stimulus.However, concerns over increasing food and fuel costs appear to have prevented the Bank from making the...Read More
Worldwide stock markets take lead from manufacturing figures
Worldwide stock markets are higher today after European and Chinese manufacturing data seemed to indicate that the worldwide economy was on a growth path. This comes after a very difficult three month period at the beginning of 2010 during which different indicators seemed to give very different signals regarding the short to medium term direction of the worldwide economy. While the improvement...Read More
Pay Protection Schemes Deemed Illegal
In a move which has far reaching implications for the UK employment sector, three judges have today ruled that pay protection scheme used by many public sector offices up and down the country are illegal. The schemes were introduced as a way of selling pay deals which brought male and female employees onto the same pay scales if doing the same jobs. In exchange for forgoing on a number of bonu...Read More
UK GDP Contracts, as Triple-Dip Threatens
The UK economy shrank by 0.3pc in the last four months of 2012, making the possibility of entering into recession for the third time since 2007 all the more likely. The Office for National Statistics (ONS) said that the fall in GDP was most likely down to a reduced output from the North Sea and manufacturers. This comes as a massive blow to the coalition government, who just three months ago we...Read More
Manufacturing sector looking positive into summer
Productivity in the UK manufacturing sector is showing signs of improvement following a muted first quarter, figures show.The Office for National Statistics (ONS) revealed today that output in UK manufacturing industries rose by 0.3 per cent between March and April. All industries showed growth, with the transport equipment sector leading the way on 0.9 per cent growth.These figures mean overall o...Read More