UK Business, Finance and Government Update

Are UK businesses doomed? Is there hope on the horizon? There have been plenty of news articles recently citing the negative trend of UK businesses under strain. For instance, this article from the BBC news website: record jump in businesses in financial distress . Critical Financial Distress The article cites information from insolvency experts and uses the term "critical financial distress." Their source defines it as having a CCJ outstanding for over £5k or facing a winding-up petition. However, I have seen winding-up petitions granted in circumstances where they were not the next logical step. A company might owe or even be in dispute over an account, but WUPs effectively end their access to credit and can lead to frozen accounts. This effectively ends the ability to trade out of insolvency. A company might not be insolvent, but have a WUP granted against them if the judge can be persuaded. So, while having a WUP against a company is a factor, I would point to other indic...

The UK government recently announced via a press release what they term the "biggest fraud crackdown in a generation." The target of this operation is welfare fraudsters who - according to the press release - cheated the taxpayer out of £7 billion in 2024. To many, this may sound like the usual "blame benefit cheats" while ignoring tax avoidance, malicious company management or simple mis-management of government resources. However, this does actually appear to be targeting the criminally-minded element, not those who find themselves between a rock and a hard-place. To summarise the government's press release: benefit cheats will have their driving licenses taken away a new Public Authorities bill will target criminals over tax payers the introduction of the bill is targeted to save £1.5 billion alone ability to target bank accounts, not just PAYE The wording actually states that repeated offenders who fail to pay back what is owed could  be banned from driving...