TheBriefing
INSOLVENCIES
Company insolvencies up 18% in October
Construction, retail and hospitality sectors are struggling the most as corporate insolvencies grew rapidly in October 2023, in part due to high interest rates.
There were 2,315 company insolvencies in October 2023, up from 1,954 the previous year and nearly a third higher than pre-pandemic levels, when there were 1,477 insolvencies in October 2019. The construction industry remained the worst affected sector, although it saw a small reduction in insolvencies to 332 from 396, followed by the retail sector with 312 and hospitality with 290.
Mathew Richards, restructuring partner at Azets, said: “Insolvencies are continuing at a high level, with 20,865 companies impacted from January to October 2023. For 2019 there were only 17,175 insolvencies (22,128 in 2022).”
“The UK rightly enjoys a strong reputation for high governance standards but it’s important we don’t burden our best and brightest companies”
Andrew Griffith MP, City minister
CRYPTOCURRENCIES
Crypto platforms to share data with tax authorities
Nearly 50 countries have signed up to a scheme to force crypto platforms to share information about clients with tax authorities.
Under the OECD’s new Crypto-Asset Reporting Framework (CARF), crypto platforms will have to start sharing taxpayer information with tax authorities, which currently they do not do, overturning the original ethos of crypto. The rules are likely to come into force in time for data exchanges between 48 countries including the UK, Australia, US, France, Germany, Canada, Japan, Korea and the Cayman Islands, to start from 2027.The measure is designed to help with efforts to enforce tax compliance.
News in numbers
Rate of pay rises in July-September 2023, the first time in two years that pay outstripped inflation.
Source: ONS
Foreign direct investment projects in the UK in the year to March 2023.
Source: Department for Business and Trade
People contacting Citizens Advice about the cost of living in October 2023.
Source: Citizens Advice
The number of criminal investigations underway into Covid fraud.
Source: UK Parliament
The value of public sector fraud prevented in 2023.
Source: Public Sector Fraud Authority
Apple’s potential tax bill in Ireland.
Source: European Central Court
JOBS
Permanent roles down as starting salaries rise
The number of permanent job vacancies is falling despite a rise in starting salaries, according to the KPMG and REC UK Report on Jobs.
There has been little change in job availability for over a year due to economic uncertainty. Although the level of vacancies is declining, October saw the most gradual slowdown since June. However, short-term contracts are on the rise due to the flexibility they offer. This is particularly true of employers, who are often seeking to protect themselves against high salaries in the long term, and as such are offering more fixed-term contracts.
Despite an increase in the number of applicants and lack of roles for permanent staff, recruiters said that starting salaries were still rising; however it was the lowest rise in more than two years.
“Having clear, proportionate, intelligent but final proposals is just so important”
Paul Eagland, BDO managing partner
