The Analysis News & Opinions
Government extends business support
Insolvency measures supporting businesses during the pandemic and helping them recover, are set to be extended till the end of June 2021. The measures were introduced in the
Corporate Insolvency and Governance Act in March 2020, including protecting firms from aggressive creditor enforcement and removing personal liability on company directors, and have been previously extended on a number of occasions. The measures being extended till the end of
June 2021: l Statutory demands and winding-up petitions will continue to be restricted to protect companies from creditor enforcement action due to debts related to coronavirus (COVID-19). l Small suppliers will not have to continue to supply a business in insolvency. However, larger suppliers will not be able to cease their supply or ask for additional payments while a company is going through a rescue process. l Entry into a moratorium will remain relaxed and a company will be able to enter a moratorium if they have been subject to an insolvency procedure in the previous 12 months.
These measures will be extended until 30
September 2021 Minister for Corporate Responsibility, Lord
Callanan, said: “We are extending these important measures to give businesses the extra breathing space they need as we cautiously reopen the economy and look to build back better from the pandemic. “With the threat of aggressive creditor
action and insolvency eased, companies will be able to focus all their efforts on their recovery.” Dr Roger Barker, director of policy and
corporate governance at the Institute of Directors said: “During the pandemic, it has been essential to provide company directors with the means by which they can sustain inherently viable businesses. “An important component has been the
temporary suspension of the potential liability faced by directors if they continue to operate a company that is facing financial difficulties. “During the exceptional circumstances of
the pandemic, this has been an appropriate step for government to take in order to ensure that viable businesses survive and are in a position to contribute to a meaningful economic recovery.
New order-to-cash research goes live
CCRMagazine and HighRadius are set to produce a new virtual-round-table debate looking at the challenges facing professionals working in the order-to-cash cycle. The debate will again be preceded by a
major research project which will, in turn, focus and add value to the discussion. Stephen Kiely, editor of CCRMagazine,
said: “Earlier this year, we were pleased to work with HighRadius on an important research and debate project, and, as the industry and our society are evolving so rapidly at the moment, we are now taking
August 2021
this one stage further to look forward to what the future holds. Order-to-cash will always remain an area of intense interest, so it is crucial
that senior professionals are
informed. Working with HighRadius, we hope that this research and subsequent debate will do just that.” To complete the new research survey, go to:
www.smartsurvey.co.uk/s/D4FGCM/
www.CCRMagazine.com
Jonathan Andrew Chief executive, Bibby Financial Services
Opinion
‘Pingdemic’ and shortages see SME turnover
SME turnover dipped in July amid raw material shortages and ‘pingdemic’ related disruption, despite Covid-19 restrictions continuing to ease across the UK, according to our BFS SME Turnover Index. The index shows a surprise backward step
in the recovery for SMEs, moving from 148 in June to 145 in July, despite the opening of the economy on ‘freedom day’ in England. The fall in turnover follows a 17% surge in SME business in June which took the Index from 127 in May to 148 the following month. The fall appears to be a result of supply
chain delays and staff shortages as SME clients complain about the impact of the ‘pingdemic’. With Covid-19 cases reaching a 50,000-a day peak during July, hundreds of thousands of SME workers have been forced to isolate away from workplaces. The prolonged shortages of raw materials, such as timber and microchips, are also putting the brakes on the SME recovery. The scarcity of vital resources is being keenly felt in the manufacturing and construction sectors, with the Index for SMEs in construction nosediving in July from 217 to 182, wiping out significant gains made during June. The data suggests there will be no easy
economic bounce back from Covid-19. Even once the pingdemic shortage of workers eases, many of the challenges facing SMEs today are here for the long term. Global supply chain disruption, trading restrictions with Europe and the need to pay back government loans are all putting a handbrake on growth. SMEs must rethink their cashflow and their supply chains to adapt. The index also shows the scale of the
impact of the pandemic and Brexit on SME balance sheets. SME turnover plummeted from 154 in March 2020 to 93 (the lowest on record) during the April lockdown.
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