Was 1st October 2021 a game-changer for business? Comments from Stephen Wainwright, Partner at Poppleton & Appleby. The Institute of Directors reported at the start of the month that their members are reporting confidence for the future, however, the financial outlook has declined back to levels not seen since the height of the third lockdown in March 2021. At the same time, several Government support schemes are being wound down, which will cause many business leaders great worry and concern going forward. The Furlough scheme ended on the 30th September 2021 Since its introduction in March 2020, over 11.6 million [...]
Supply Chains: The impact of stock shortages Comments from Charles Brook, Partner at Poppleton & Appleby. Several months ago, I commented upon the pressure that seemed to be accumulating across various industry supply chains. The causes were numerous, but different sectors attributed it severally to Brexit, the pandemic, social trends, and general economics. A repetitive media topic ahead of Brexit was the anticipated impact upon the cross-border mobility of key personnel in agriculture, transport, construction, hospitality, and health, but there was less emphasis on the likely effect on materials supply. Now, as the UK economy continues to open up after [...]
At the outset of the pandemic, the UK treasury announced a series of measures aimed at protecting the business community from the full natural effects on businesses of lockdowns, enforced closures and other restrictions to trade.
How to spot signs of customer or supplier insolvency Despite the total number of corporate insolvencies in Q1 2021 (January to March) decreasing by 22 per cent from Q4 2020, the withdrawal of Government support schemes in the next few months will likely lead to an increase of pressure on struggling businesses. The knock-on effects of suppliers or customers entering insolvency procedures can be potentially disastrous for any business. If issues are not addressed quickly with a business plan swiftly put into place, customer or supplier insolvency can disrupt supply chains or even grind them to a halt. You must [...]
Under a new bill “Ratings ( Coronavirus ) and Directors Disqualification (Dissolved Companies ) Bill”, the Insolvency Service will have retrospective powers to investigate Directors who have abused the Government support Schemes.
All you need to know about the Recovery Loan Scheme The government has revealed new statistics to show how the Government-backed loans have supported businesses through the pandemic - including the Bounce Back Loan scheme, which provided a loan roughly every 20 seconds since its launch last May. The recent announcement from HM Treasury stated that: Three Bounce Back Loans were issued every minute since May 2020 launch Emergency loans provided almost £180 billion in total since March 2020 The Covid Corporate Financing Facility (CCFF) scheme alone supported firms responsible for 2.5 million jobs Government-backed loan figures Loan Type Value [...]
Alternative business funding – what to consider? A number of the Government stimulus come to an end in March 2021 including deferred payments to HMRC for VAT, and Corporation Tax etc. which will fall due for payment in March albeit these can be spread over 11 months. These measures coincide with the winding down of the Furlough Scheme in April 2021, placing a further financial burden on many businesses. We will shortly enter a phase where traditional bank funding will become more difficult to secure. The market to re-bank a business with another high street bank will become increasingly difficult. [...]
Remember Brexit? Comments from Charles Brook, Partner at Poppleton & Appleby. For most of the UK population, Brexit will seem like last year’s big deal in the swell and the wake created by COVID-19. Indeed, with all of the economic and social damage created by Coronavirus and the impact that will be experienced for potentially years to come, some may wonder why we should get all heated up again over Brexit which you might be forgiven for thinking cannot possibly make matters worse. This, however, would be wrong. If Britain doesn’t affect a structured Eurozone Trade Agreement before the end [...]
Coronavirus Job Retention Scheme extended to March 2021 The latest update from Rishi Sunak confirms the government has chosen to extend the furlough scheme until the end of March 2021 as the second wave of the pandemic and increase in lockdown measures threaten to drive business uncertainty and unemployment. On Saturday 31 October, it was announced that the government were extending the Coronavirus Job Retention Scheme to support businesses and individuals through the next phase of response to the pandemic. However, following the first extension announcement, it has been decided that further extension to the furlough scheme and increasing support [...]
Protect and preserve your business The pandemic continues. Comments from Allan Cadman, Partner at Poppleton & Appleby and North West Chair at R3. Seven months in and just a few weeks after a brief sense of light relief, we are now plunged back into an as yet, unknown period of severe restrictions on the fundamental freedoms that we ordinarily take for granted. A total of 7.8 million people and rising across the north of England are now in the highest alert level, not to mention the lockdowns affecting our Celtic friends and neighbours. This will give no comfort to the [...]