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.
Surprise Surprise No Change In Base Rates
While today's decision by the Bank of England MPC was literally a no brainer it does not help the thousands of home owners who are struggling to make ends meet. As we read another report from the Halifax which confirms that house prices have fallen by nearly 13% over the last year it seems that mortgage arrears are set to sky rocket over the coming months. Large mortgages, shrinking assets, the...Read More
Bank Of England under pressure to increase quantitative easing fund
In one final push to drag the UK economy out of recession, a number of economists in the UK are putting pressure on the Bank of England's monetary policy committee to increase the quantitative easing fund by at least £50 billion. This would take the "liquidity enhancing strategy" to a total figure of £225 billion, which as pointed out in the Telegraph today, is more than the gross domestic produ...Read More
Top companies warned over pay
23/04/2014 Business Secretary Vince Cable has written to all FTSE 100 companies, warning them to keep up pressure on executive pay bonuses in order to alleviate public anger. He singled out the banking industry in particular as being “ridiculous”, with Barclays one of the main offenders for allocating around £2.5bn in bonus payments earlier this year, despite posting a dip in profits....Read More
Are we set for a consumer champion within government ranks?
There are growing rumours that the UK government is set to announce some kind of consumer tsar who may have the power to fight legal battles on behalf of consumers in the UK. While we still await details of the UK government's White Paper, due on 2 July, it is believed that the UK authorities are looking to increase protection for UK consumers and simplify the legal challenge process where potenti...Read More
Snow costing UK economy £600 million a day
It is estimated that the snowy weather in the UK is costing UK businesses £600 million a day at a time when few businesses can afford to give away trade. A mixture of staff absence numbers and missed trade is beginning to add up and becoming a major concern for the UK government. It is no secret that many small to medium-sized businesses (and a few larger businesses) are literally trading on a...Read More