Increasing debt due to rising unemployment
The Liberal Democrat Party has warned that rising unemployment could result in more debt, arrears and repossessions. Recently published government figures show unemployment has reached a seven year high. Liberal Democrat shadow chancellor Vince Cable says: These figures are seriously worrying and represent a trend of rising unemployment stretching back almost two years. "It means that growing numbers of families will be unable to sustain their debt obligations and will drift into arrears, personal bankruptcies and home epossessions. "The situation is not as bad as in the latter years of the Conservative government, but we could be heading in that direction unless the trend is reversed. "Since the government came into office, there has been a tripling of 16 and 17-year-olds who are not in work or full-time education. “The positive story about unemployment, which this government successfully developed, is now seriously unravelling."
Straw slams Farepak for blaming HBOS
Commons leader Jack Straw has slammed shamed Farepak owner Sir Clive Thompson after he blamed the fall of the Christmas hamper firm on HBOS. Sir Clive was quoted to have said that HBOS were “hanging the firm out to dry”. Straw deemed this comment “shameless” as Farepak were well aware of their financial difficulties even though they continued to advertise their product. Jim Devine, MP, says Sir Clive is the “unacceptable face of capitalism”. Sir Clive is currently laying low in Buenos Aires.
David Cameron to speak at FPB’s first National Small Firms’ Summit
Leader of the Conservative Party David Cameron will be the keynote speaker at the first National Small Firms’ Summit held in October, the Forum of Private Business (FPB) has announced. The one-day event for over 200 owners and managers of smaller businesses will take place at Central Hall, Westminster on Wednesday, 18 October 2006. The conference will explore all aspects of the Government"s policies affecting smaller companies such as the burden of red tape. There will be advice from directors and senior managers of successful private companies, prominent politicians and influential civil servants. Len Collinson, FPB’s national chairman, said: “This is a unique opportunity for managers and owners of small firms to meet each other, consider common problems and to be heard by decision-makers.” “David Cameron is now the most popular visitor to any event. We are privileged that our national summit is one of his choices.”
KPMG and SPSL jointly launch the Retail Think Tank
Professional services firm KPMG and retail research group SPSL have formed the KPMG/SPSL Retail Think Tank (RTT), the first of its kind in the UK. The aim of the RTT is to provide the authoritative, credible and most trusted window on what is really happening in retail and to develop thought leadership on the key areas influencing the future of retailing in the UK. The organisation has been created because it is widely accepted that there are so many mixed messages from different data sources that it is difficult to establish with any certainty the true health and status of the sector. The RTT will provide, on a quarterly basis, a clear, balanced and authoritative assessment of the retail sector based on a review of all key influential data streams and open discussion by leading experts representing all major aspects of retailing. The think tank will meet quarterly, in private with the first formal meeting due to take place on Tuesday 11 July. Its members are all senior retail experts, all closely associated with the retail sector. They include Paul Clarke from Barclays Retail & Wholesale Sectors, Dr. Tim Denison from SPSL and Helen Dickinson from KPMG.
The first meetings of the RTT discussed and determined the scope of its future outputs, the methodology and the constitution of the RTT. It was agreed that the RTT should serve to give a balanced, considered, and unbiased view on what the true state of affairs for the sector is, both looking back on the three month period just concluded and looking ahead to the next three months.
Next meetings of the RTT are set for 11th July 2006, 10th October 2006 and 9th January 2007. Outputs will follow shortly after each meeting. It is a deliberate policy of the RTT that no single member is directly employed by nor speaks on behalf of any individual retail business per se, thereby reinforcing the credibility and independence of its outputs which will include news releases and white papers.
Helen Dickinson, partner at KPMG, said; “The KPMG/SPSL Retail Think Tank is something we at KPMG and SPSL have been planning and nurturing for several months. When Tim Denison and I came up with our provisional ‘dream team’ we had no idea that they would all say ‘yes’ to becoming a member. Now that we have had our first meetings I am confident that the nine of us will be able to produce some very meaningful metrics which will be of significance to everyone involved in retail.”
Tim Denison, director of knowledge management at SPSL, added: “It is a testament to the basic concept behind the Retail Think Tank that everyone concerned is very excited by its formation and what it will deliver. I look forward to the KPMG/SPSL Retail Think Tank becoming a cornerstone of retail analysis and strategic commentary, providing both a clear perspective on the health of retailing and also leading the discussion on issues affecting the sector.” Read more at the Enable Finance Blog
Bad Debts Cost UK Billions
Chasing late payment and dealing with bad debt is costing UK small and medium sized businesses an estimated 286 million man hours and nearly £3.6 billion per year according to new research. Despite rising business failure rates in the first quarter of this year, SMEs are still failing to adequately protect themselves from bad debt, claims cash flow financier Bibby Financial Services which conducted the survey. Nearly half (47%) of respondents reported they had no provisions in place should an unexpected debt arise.
Out of the owners and managers that have planned for bad debt, a third rely purely on the threat of legal action (34%), a quarter would use their bank overdraft facility (27%), while 15% plan to cover the shortfall from their personal savings.
David Robertson, chief executive of Bibby Financial Services, said: “Unfortunately, however good the relationship with suppliers and contractors, the reality is that chasing payment and dealing with bad debt is a fact of business life which can strike any business at any time, however unexpected. “I would urge owners and managers to consider the impact of being on the receiving end of a late payment or a bad debt and how the systems, or lack of systems, they have in place would allow them to cope with it. Given that a lack of foresight and planning could lead to a real threat of business failure, reviewing provisions in place should be a matter of priority for small business owners and managers across the country.”
UK Finance, mortgages, remortgages and commercial business finance
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