Business News England
Brought to you by DPC Accountants
Welcome to the DPC round up of the latest business news for our clients for 9th September 2024.
Please contact us if you want to talk with out team of experienced Stoke-on-Trent accountants about how these updates affect your business. We are here to support you!
THIS WEEK…
SMEs missing out
A recent report by the British Chambers of Commerce and Tussell has highlighted the ongoing challenges the public sector faces in meeting its procurement targets for small and medium-sized enterprises (SMEs).
Despite the UK government’s commitment to increasing the procurement of goods and services from SMEs, the numbers reveal a persistent shortfall. In 2023, only 20% of the total direct procurement spending in the public sector went to SMEs, amounting to £39.7 billion out of £194.8 billion.
UK courts forcibly close two insolvency firms
In a recent case reported by the Insolvency Service, two connected corporate rescue firms, Atherton Corporate (UK) Ltd and Atherton Corporate Rescue Limited, have been forcibly shut down by the UK courts.
These companies, trading under the Atherton brand, claimed to offer business owners struggling with debt a legal alternative to formal insolvency procedures. However, they misled their clients by encouraging them to sell their financially distressed businesses in a way that would allow them to avoid liquidation and retain company assets without taking responsibility for the company’s debts.
The scheme was supported by five associated companies that bought these distressed businesses and appointed new directors to create distance between the original owners and any future legal actions.
Streamlining access to services
Last week, Companies House confirmed that their online services will move to the GOV.UK One Login beginning from autumn 2024.
The GOV.UK One Login is becoming an increasingly important way of accessing government digital services. It means that you only need one account, one username, and one password to access a range of government services.
The Login is already used for a number of government services, including those related to being an apprenticeship provider, finding and applying for grants, and in Wales to manage fishing permits and catch returns.
Ultimately, the GOV.UK One Login will be used to access all GOV.UK services, which eventually would include tax services. Companies House services moving across will be a major step towards this goal.
House building forecasts lower
Barratt Developments, the UK’s largest housebuilder, has reported a significant decline in pre-tax profits, down by three-quarters for the year ending June 2024. This comes as the company completed just 14,000 homes, a sharp decrease from 17,000 the previous year, with forecasts suggesting even lower figures of 13,000 to 13,500 homes for the upcoming year.
For businesses in the construction and property sectors, this slowdown could be a signal of challenging times ahead. High interest rates are deterring potential buyers, while inflation continues to push up costs, creating a ripple effect across the supply chain.
Student loan interest rates reduce
The Plan 1 student loan interest rate reduced to 6% (from 6.25%) from 30 August. This rate change applies across the UK with the Department for Education (DfE), the Welsh Government and the Department for the Economy in Northern Ireland (DfE NI) all confirming the change.
The reduction follows the Bank of England Base Rate changing to 5% earlier in August.
BTV3 restrictions imposed
The UK Chief Veterinary Officer has declared a bluetongue restricted zone across Norfolk and Suffolk following several confirmed cases of Bluetongue virus BTV3 in the region.
Since 30 August all keepers of cattle, sheep, and other ruminants and camelids in this area have to follow strict restrictions on animal and germinal product movements.
Essential movements of these animals within the Norfolk and Suffolk restricted area can be done without a licence, but they cannot be moved to another area without a specific licence.
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