Government throws weight behind Tata rescue deal
The Government is preparing to throw its financial might behind the rescue of Tata’s Scunthorpe steelworks, helping to secure a deal to save 4,000 jobs. According to steel industry sources, the Department for Business, Innovation and Skills is likely to provide a loan of around £70m to £80m backing a takeover by the turnaround fund Greybull. The Government’s support will be crucial in ensuring the sale of the steelworks goes through in the coming weeks. The rescue...
UK LATE PAYMENTS HIT TWO-YEAR HIGH AT 2015 YEAR-END
UK businesses see late payments rise 12% in 4Q 2015 vs 3Q 2015 One in six firms reported customers failing to pay for goods and services on time Overdues increased across 14 of 17 major industry sectors last year Late payments in the construction sector surged 26% year-on-year in 2015 Payment delays in automotive and electronics fell 12% and 15% respectively The number of overdue payments experienced by UK businesses reached a two-year high in the final quarter of 2015, with...
More than a third of 8.4m BHS loan went to four directors
Guardian understands quartet from Retail Acquisitions Limited shared £3m days after buying struggling department store chain. More than a third of an £8.4m loan taken out of BHS by its new owners in March last year went to four directors who were part of the consortium, handing them a multimillion-pound windfall just days after buying the struggling department store chain. The Guardian understands that £3m was shared between four directors of Retail Acquisitions Limited – Dominic...
Debtor days are over as BIS calls time on world credit binge
The world’s credit boom is beginning to show dangerous signs of unraveling, ushering in a period of fresh turmoil for the over-indebted global economy, the Bank of International Settlements has warned. The globe’s top financial watchdog called time on the world’s debt binge, noting that debt issuance and cross border flows in emerging economies slowed for the first time since the aftermath of the global credit crunch at the end of last year. With financial markets thrown...
UK online alternative finance market grows to £3.2 billion in 2015
In 2015 the UK online alternative finance sector grew 84%, facilitating £3.2 billion in investments, loans and donations, according to a joint report published today by the Cambridge Centre for Alternative Finance at the University of Cambridge and UK innovation foundation Nesta, in partnership with KPMG and with the support of CME Group Foundation. This is a significant increase in volume, but growth of the online alternative finance market is slowing down, with the annual growth in 2014/2015...
Late payments challenge construction industry
Trade credit insurer Atradius warns that the UK’s construction industry will struggle from late payments this year and that non-payment could be at a significant level. The new in-depth Construction Market Monitor report by Atradius reveals that while output in the sector has rebounded overall, construction is still affected by trailing effects of the recession. During the downturn, construction companies tendered at margins that are no longer sustainable in the face of the raw material...
Changes affecting businesses in April
As we near the end of the financial year we are taking a look at the changes which will be introduced in April that will affect many of our clients. Introduction of a National Living Wage From 6 April 2016 a new mandatory ‘National living wage’ (NLW) will apply to workers aged 25 and over. The first national living wage will be set at £7.20 (this is the current over-21 national minimum wage rate of £6.70 plus a premium of 50p) and will run alongside the other National Minimum Wage...
FCA launches call for input on retaining CCA provisions
The Financial Conduct Authority (FCA) has today launched a call for input on the review of retained provisions of the Consumer Credit Act 1974 (CCA). The review will consider whether particular CCA provisions remain appropriate or should be modified, updated, or replaced by FCA rules or guidance, to maintain the right degree of consumer protection. Christopher Woolard, director of strategy and competition at the regulator, said: “This is a real opportunity for everyone with an interest...
Risks of insolvencies continue to trouble global markets
Insolvencies will continue to hit global markets in 2016, exposing businesses to the risk of non-payment, warns leading trade credit insurer Atradius. In its latest Insolvency Forecast, part of a suite of economic research reports, Atradius publishes predictions for insolvency levels in 22 key trade markets. While insolvencies are forecast to fall in 15 markets, the anticipated improvements are expected to be small. Low oil prices, US monetary normalisation and the uncertain impact of a...
Most business leaders will vote to stay in EU, polls find
Six in 10 back David Cameron’s deal amid warnings that uncertainty is already affecting Britain’s commercial interests. A majority of business leaders will be voting in favour of Britain staying inside the European Union after David Cameron’s deal, according to two new surveys. But there are warnings that, whichever way the vote goes, Britain’s commercial interests are already being hurt by the uncertainty. Six in 10 executives said they supported the plan hammered out in...
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