Solomonic’s Post

Australian Businesses Face Challenges as External Administrations Hit Record Highs The latest CreditorWatch Business Risk Index (BRI) reveals some concerning trends for Australian businesses. Key takeaways: ⚫ External administrations are at a record high, indicating that more businesses are going bust than ever before. This is likely due to a combination of factors, including cost pressures, skilled labour shortages, and declining consumer demand. ⚫ B2B payment defaults are also rising, although they have decreased slightly from the record high seen in February. This suggests that businesses are finding it increasingly difficult to pay their bills on time. ⚫ The construction industry is being particularly hard hit, with 23.8% of businesses in this sector having large tax debts of over $100,000. This is likely because many construction businesses are small and operate as sole traders or partnerships, making it difficult for them to secure loans and repay debts. The statistics paint a worrying picture for the Australian economy. https://lnkd.in/gsSED9e8 #CreditorWatch #BusinessRisk #Australia #Construction #Economy

Businesses in Australia are facing insolvency as the economy slows down. This includes struggling industries such as construction, hospitality, and retail. The Australian Tax Office has stated that it cannot waive debts, but is still willing to provide help and assistance to those in genuine need. ➡ Read more about the financial crisis and insolvency in Australia at https://lnkd.in/gecbeYkn. #peoplefirst #leadgroup #finance #insolvency #financialcrisis #australia

Businesses in Australia are facing insolvency as the economy slows down. This includes struggling industries such as construction, hospitality, and retail. The Australian Tax Office has stated that it cannot waive debts, but is still willing to provide help and assistance to those in genuine need. ➡ Read more about the financial crisis and insolvency in Australia at https://lnkd.in/gecbeYkn. #peoplefirst #leadgroup #finance #insolvency #financialcrisis #australia

Here is hoping the new UK Government will bring forward independent regulation of the Bailiff industry in England and Wales, then Scottish Labour, post 2026, can follow up with independent regulation of the Scottish Sherriff Officer Industry and end failed self regulation that has led to the type of abuses we have seen boom over the last 17 years around public sector debt recovery.

Now that the results have been announced, it is time for the new Government to move beyond optimistic promises and start the real work. The challenge ahead remains the same as it has been for the UK and other economies post-Covid-19: how to invest in the country and reduce the debt burden with already high tax rates, and public spending cuts not being a popular option for a Labour Government. Leading up to the election, the focus was primarily on housing in the manifesto, with minimal attention given to commercial property aside from a few comments on the business rates system. However, what commercial property investors and tenants are looking for from the new Labour Government is straightforward: stability and an environment that supports growth.

Companies in the North West of England have faced a tough start to the year as the number of administrations was at its highest level for four years. Across the UK as a whole for 2023, administrations rose more than 25% to 1,307. Figures analysed by Interpath Advisory show the region recorded 19 administrations in January 2024. That was the highest January figure since 2020, when there were 21 cases. The North West accounted for more than a quarter (26%) of total administrations across the UK in January. The worst-hit sectors were industrial manufacturing (44), business services (40), and building and construction (35). Interpath said: “sluggish growth, persistent high interest rates, and fragile consumer sentiment continued to impact British businesses.” Read the full article below:

Now that the results have been announced, it is time for the new Government to move beyond optimistic promises and start the real work. The challenge ahead remains the same as it has been for the UK and other economies post-Covid-19: how to invest in the country and reduce the debt burden with already high tax rates, and public spending cuts not being a popular option for a Labour Government. Leading up to the election, the focus was primarily on housing in the manifesto, with minimal attention given to commercial property aside from a few comments on the business rates system. However, what commercial property investors and tenants are looking for from the new Labour Government is straightforward: stability and an environment that supports growth.

Labour wins a landslide! ..so how can property investors profit from this change in Government? In this video I reveal hundreds of property deal opportunities which have just become available today!!! https://lnkd.in/eErCqEYj

Now that the election results have been announced, it's time for the new Government to shift their focus from optimistic promises to the hard work that lies ahead. The task ahead remains the same as it has been for the UK and other economies post-Covid-19: finding ways to invest in the country and reduce debt, all while dealing with high tax rates and the reluctance to make cuts in public spending under a Labour Government. During the pre-election period, housing was the main focus in manifestos, with little attention given to commercial property aside from a few mentions of the business rates system. However, what commercial property investors and occupiers are looking for from the new Government is clear: stability and an environment that allows for growth.

UK Public Borrowing Update: The UK's public sector borrowing for July has come in at £3.1 billion, surpassing expectations. This unexpected increase underscores the significant challenges the Labour government faces in managing public finances amidst ongoing economic pressures. As the government continues to navigate these fiscal hurdles, the focus on balancing growth and sustainability in public spending will be crucial. #UKEconomy #PublicFinance #EconomicOutlook #GovernmentSpending #FiscalPolicy