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.
Sterling hits five-month low against euro
Sterling today hit a five-month low against the euro amid growing concerns that the UK economy is poised for a significant lurch downwards. There is growing pressure on the UK business arena and UK banks are now banding together to create a £1.5 billion rescue package with the UK government on the verge of increasing fiscal stimulus programmes in the UK. All in all this does not bode well for the...Read More
British Chambers of Commerce warn Chancellor
The British Chambers of Commerce has today warned Chancellor Alistair Darling that there must be no "sacred cows" when the pre-budget report is announced this week. Despite the fact that the public sector is the obvious area for substantial cost savings there are concerns that the budget report may well be heavily influenced by the fact the general election will be next year and the government nee...Read More
UK economic growth at four year high
Data released by the Office for National Statistics today shows that the UK economy grew by 1.1% in April and June 2010, nearly double analyst's expectations of a 0.6% increase. This is a welcome relief to the UK government at a time when budget cuts and investment issues are very much grabbing the headlines and taking away from the very difficult and very challenging situation which the UK govern...Read More
RMT confirms that members will be re-balloted regarding strike action
Bob Crow, leader of the rail workers union, has today confirmed that members will be re-balloted regarding strike action which was recently blocked by the UK high court. While the unions have dismissed claims that the initial vote was in any way "riddled with irregularities" these were concerns that were highlighted by the high court after evidence placed before them by National Rail management....Read More
OECD claims UK government can't afford election giveaway
The Organisation for Economic Co-operation and Development (OECD) has today issued a stern statement aimed at Alistair Darling suggesting that the UK economy is in such a dire state that he cannot afford to even contemplate a "pre-election giveaway program". The statement comes after the release of October figures for government finances which were the worst on record and show the true demise of t...Read More