The number of company insolvencies in England and Wales hit its highest level for 13 years in the second quarter of the year, according to official figures.
The Office for National Statistics (ONS) recorded a total of 5,629 business failures between April and June.
It was the highest quarterly number since the third quarter of 2009.
Construction, manufacturing, accommodation and food service businesses accounted for most insolvencies, the ONS reported.
In a clear indication of the strain faced by firms, it said that more than one in 10 reported a moderate-to-severe risk of insolvency in August.
The dire figures reflect a surge in costs, particularly from rising gas and electricity bills, piling pressure on businesses at a time when most were recovering from two years of COVID-19 disruption.
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Insolvencies fell in 2020, when the government rushed to help businesses survive the pandemic, but they have risen since 2021.
Firms have been grappling with rising costs since pandemic restrictions were relaxed.
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Higher demand for goods and services, coupled with supply chain disruption, have all contributed to a tougher environment for firms to navigate.
The latter problem has eased, but the rise in gas and electricity costs was exacerbated by the effects of Russia’s war in Ukraine.
It has made lighting, heating and production costs more expensive, and companies are under pressure to pass those increases on to customers.
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How cost of living crisis is biting business
It is a difficult juggling act, however, to achieve because they could lose business as a result.
The tough market was met with a chorus of frustration from businesses who, like consumers, were faced with huge increases to bills – of 600% for some businesses – and demanding action to help bring them down.
It was not until last month that the Truss government revealed aid for businesses – in line with the help offered to households – though the Energy Bill Relief Scheme that will cap wholesale costs per unit of energy.
The scheme is due to last throughout this winter – with only targeted help after that.
She said it marks “the biggest set of reforms to the pensions market in decades” ahead of providing more details in a speech at Mansion House on Thursday evening.
Almost 90 local government pension pots will be grouped together, with defined contribution schemes merged and assets pooled together.
This is part of the government’s plan to increase economic growth through investing in infrastructure.
Pension schemes get greater returns when they reach around £20bn to £50bn as they are “better placed to invest in a wider range of assets”, according to the government.
This is backed up by evidence from Canada and Australia, the government argues – with Canada’s schemes investing four times more in infrastructure, and Australia three times more than the UK’s defined contribution schemes.
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Pensions minister Emma Reynolds told Sky News larger pension schemes are able to invest “in a more diverse range of assets, including private equity, which are higher risk, but over time give a higher return”.
She said the government will not tell pension fund managers they must invest more in private equity but due to the larger scale they will be able to invest in a “broader range of assets, and that’s what we see in Canada and Australia”.
Ms Reynolds added that a Canadian teacher or an Australian professor is currently more likely to be invested in British infrastructure or British high-growth companies than a British saver, which she said is “wrong”.
The chancellor has said the changes would “unlock tens of billions of pounds of investment in business and infrastructure, boost people’s savings in retirement and drive economic growth so we can make every part of Britain better off”.
However, Tom Selby, the director of public policy at financial company AJ Bell, said: “There needs to be some caution in this push to use other people’s money to drive economic growth. It needs to be made very clear to members what is happening with their money.”
The government says the funds will be regulated by the Financial Conduct Authority and will need to “meet rigorous standards to ensure they deliver for savers”.
The Local Government Pension Scheme in England and Wales will manage assets worth around £500bn by 2030.
These assets are currently split across 86 different administering authorities, with local government officials and councillors managing each fund.
Under the government plans, the management of local government pensions and what they invest in will be moved from councillors and local officials to “professional fund managers”.
This will allow them to invest more in assets such as infrastructure, supporting economic growth and local investment on behalf of the 6.7 million public servants, the government said.
Defined contribution pension schemes are set to manage £800bn worth of assets by the end of the decade.
There are around 60 different multi-employer schemes, each investing savers’ money into one or more funds. The government will consult on setting a minimum size requirement for these funds.
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Businesses cautious – but pensions sector backs plans
Businesses will need to be reassured that the government’s plans are watertight following the fallout from the budget, according to the trade group the Confederation of British Industry (CBI).
The CBI’s chief economist Louise Hellem said: “While the chancellor is right to concentrate on mobilising investment, putting pension reform to work for the government’s growth mission, unlocking investment also needs competitive and profitable businesses.
“With the budget piling additional costs on firms and squeezing their headroom to invest, the government needs to work hard to regain the confidence in the UK as a place businesses and communities can succeed.
“Pension schemes will want to operate within a UK economy that is prospering.”
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But key parts of the pensions sector gave their backing to the government’s plans, including Standard Life, Royal London, Local Pensions Partnership Investments and the Pensions and Lifetime Savings Association.
Deputy Prime Minister Angela Rayner said: “This is about harnessing the untapped potential of the pensions belonging to millions of people, and using it as a force for good in boosting our economy.”
Consumer rights group Which? is suing Apple for £3bn over the way it deploys the iCloud.
If the lawsuit succeeds, around 40 million Apple customers in the UK could be entitled to a payout.
The lawsuit claims Apple, which controls iOS operating systems, has breached UK competition law by giving its iCloud storage preferential treatment, effectively “trapping” customers with Apple devices into using it.
It also claims the company overcharged those customers by stifling competition.
The rights group alleges Apple encouraged users to sign up to iCloud for storage of photos, videos and other data while simultaneously making it difficult to use alternative providers.
Which? says Apple doesn’t allow customers to store or back-up all of their phone’s data with a third-party provider, arguing this violates competition law.
The consumer rights group says once iOS users have signed up to iCloud, they then have to pay for the service once their photos, notes, messages and other data go over the free 5GB limit.
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“By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions,” said Which?’s chief executive Anabel Hoult.
“Taking this legal action means we can help consumers to get the redress that they are owed, deter similar behaviour in the future and create a better, more competitive market.”
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Apple ‘rejects’ claims and will defend itself
Apple “rejects” the idea its customers are tied to using iCloud and told Sky News it would “vigorously” defend itself.
“Apple believes in providing our customers with choices,” a spokesperson said.
“Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage. In addition, we work hard to make data transfer as easy as possible – whether it’s to iCloud or another service.
“We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise.”
It also said nearly half of its customers don’t use iCloud and its pricing is inline with other cloud storage providers.
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How much could UK Apple customers receive if lawsuit succeeds?
The lawsuit will represent all UK Apple customers that have used iCloud services since 1 October 2015 – any that don’t want to be included will need to opt out.
However, if consumers live abroad but are otherwise eligible – for example because they lived in UK and used the iCloud but then moved away – they can also opt in.
The consumer rights group estimates that individual consumers could be owed an average of £70, depending on how long they have been paying for the services during that period.
Apple is facing a similar lawsuit in the US, where the US Department of Justice is accusing the company of locking down its iPhone ecosystem to build a monopoly.
Apple said the lawsuit is “wrong on the facts and the law” and that it will vigorously defend against it.
And in December last year, a judge declared Google’s Android app store a monopoly in a case brought by a private gaming company.
“Now that five companies control the whole of the internet economy, there’s a real need for people to fight back and to really put pressure on the government,” William Fitzgerald, from tech campaigning organisation The Worker Agency, told Sky News.
“That’s why we have governments; to hold corporations accountable, to actually enforce laws.”
The jobs of more than half of the workforce at the DIY chain Homebase are at risk after the retailer’s owners called in administrators following a failed attempt at a sale.
Sky News reported earlier on Wednesday that around 1,500 people were set to keep their roles as 75 of the 130 stores were set to be snapped up by the saviour of Wilko in a so-called pre-pack deal.
The Range, also a general merchandise specialist, was confirmed as the buyer later in the day.
Teneo, which is handling the process, is understood to have been working to find a buyer for as many of the chain’s sites as possible.
Teneo said in a statement on Wednesday afternoon that up to 70 stores were confirmed to be included in the deal – saving up to 1,600 jobs out of 3,600.
It leaves 2,000 jobs at risk.
Forty-nine other stores will continue to trade while alternative offers are explored.
Sources told Sky’s City editor Mark Kleinman that there had been many expressions of interest in the remaining stores, despite the gloom being felt across the retail sector over the higher tax take demanded in the budget.
The sector has warned of higher inflation and job losses arising from the measures, which include increased employer national insurance contributions and minimum wage levels.
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The pre-pack deal – which typically allows a buyer to cherry-pick the assets it wants – brings to an end a six-year ownership of Homebase by Hilco, the retail restructuring specialist.
Teneo had initially been attempting to find a buyer for the whole Homebase business.
The partial sale comprises all those stores in the Republic of Ireland and the Homebase brand and its e-commerce business.
The Range is part of CDS Superstores, which is controlled by the businessman Chris Dawson – nicknamed “the Del Boy billionaire” because of the distinctive number plate on his Rolls-Royce Wraith.
Last year, it paid £7m to buy the brand and intellectual property assets of Wilko, which had collapsed into administration.
Since then, Mr Dawson has opened a string of new Wilko outlets.