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.
City analysts forecast 3 million unemployed by 2010
City analysts are forecasting the rate of UK unemployment to increase to around 3,000,000 by 2010 as the effects of the UK economic downturn continue to impact upon business levels. We have seen around about 5000 jobs lost today and this is starting to become something of a common feature in the business headlines.
There are a number of issues regarding a rise in unemployment, none...
ONS delays release of economic data
The Office for National Statistics has seen its repetition dented further with news that vital GDP and other economic data set to be released has been delayed due to potential errors found in the data. There has been growing concern about the quality and accuracy of official data from the Office for National Statistics for some time and indeed many analysts tend to discount the first set of figure...Read More
Manufacturing output figures cast doubt on UK recovery
Yet again figures from the Office for National Statistics have added further confusion for those who had hoped the UK recession had bottomed out. Manufacturing output for the three months to May was down 1.2% which was a further fall on the previous quarter which had shown a fall of 0.6%. As a consequence, the National Institute of Economic and Social Research has been forced to revise its earlier...Read More
How long before the UK economy is back on firm ground?
While officially the UK economy has pulled away from the recession caused by the credit crunch many people are concerned there is more bad news in the offing, with problems in Europe and in particular the money markets. So while the UK economy would appear to be moving forward in the short term the relative strength below the surface has been very much weakened by the ever challenging budget defic...Read More
Blockbuster goes into administration
14/11/2013 Another well known high street provider has announced today that it is set to shut 72 out of its 264 stores throughout the UK, and cut 452 jobs after confirming earlier in the week it was going into administration. The troubled DVD rental chain Blockbuster is one of the many high street stores that have come under pressure from its online competitors and supermarkets. This is the...Read More