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  • Insolvency review - Week 29

     

    RCM Weekly review - July 2019 - Week 29

     

     This week: Homebase could be buying bathstore out of Administration and Government borrowing increases in June as new PM prepares to take over.

    12th July 2019

     Government borrowing increases in June

    Government borrowing increases in June as new PM prepares to take over

    Today the ONS has released Public sector finances, UK: June 2019

    Borrowing (public sector net borrowing excluding public sector banks) in June 2019 was £7.2 billion, £3.8 billion more than in June 2018; the highest June borrowing since 2015.

    Total public sector Debt at the end of June 2019 stood at £1,818.1 billion (or 83.1% of gross domestic product (GDP)); an increase of £27.0 billion (or a decrease of 1.5 percentage points of GDP) on June 2018.

    A large portion of the increase was driven by rising borrowing cost for RPI index-linked bonds. Compared to June 2018, these interest payments were £2.1 billion higher. Higher spending on public services and flatlining tax receipts also account for the rise.

    Public sector net debt (excluding public sector banks), UK, March 1994 to the end of March 2019

    Public sector debt 1994 to 2019

    Source: Office for National Statistics – Public Sector Finances

    Interesting to note:

    ONS figures show for June 2019, the UK paid £1,033 million to the EU budget through GNI and VAT based contributions, which are made net of the UK rebate. When compared to the same month last year, when the UK received a £237 million credit from the EU, this is an increase of £1,270 million. Many would point out, that had the UK left the EU on the 29th March, these payments would not necessarily have been paid!

    Read the Full ONS report here:
    Public sector finances, UK: June 2019


    19th July 2019

     Bathstore rescue?

    Homebase could be buying bathstore out of Administration

    According to an article the Daily Telegraph, Homebase could be close to sealing a deal with Administrators BDO. Last year, Homebase itself was sold to Australian company, Wesfarmers which last year. It is reported that Homebase would plan to add Bathstore concessions within some of their existing stores. It is reported that the deal could be finalised over the weekend.

    Read more here:
    https://www.telegraph.co.uk/business/2019/07/19/homebase-buys-bathstore-administration/


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    Advice that you can trust: Our Awards & Accreditations

     

    Award Seal Richard Cacho

    Richard Cacho Awarded No. 1 Insolvency Practitioner in Norfolk

    Richard Cacho award article