Business Insights

As the coalition government and the BoE continue to make positive noises about the current state of the economy, anybody who is located right at the centre of it knows the truth.

The importance of the housing market to the British economy, both as an indicator of economic health and a means of economic stimulus, cannot be underestimated. Since the beginning of the current economic crisis, which had some roots in the housing market but also had a drastic affect on that same market, much has been made of the importance of ensuring a swift recovery. So, where exactly is the housing market heading, will the recent rise in prices continue and are we just heading for another bubble that, eventually, is bound to burst?

As Local Business Week has now drawn to an end, it seems appropriate to take a look back at what the campaign has taught us about the state of local business and SMEs in the UK today. Running from the 13th – 19th May, the campaign aimed to promote local businesses in the community with the aim of both increasing the number of customers coming through their doors and providing additional help in areas that smaller businesses traditionally struggle with. The week also gave analysts an opportunity to try and establish exactly how well local businesses are doing in the current economic situation and how they may improve.

A Company Voluntary Arrangement (CVA) is a solution which the directors of an existing company may potentially propose if the underlying business is viable but the company has suffered from specific issues that can be remedied, perhaps an unforeseen, large bad debt. In many instances a CVA will not be feasible, particularly if the underlying business is not profitable or there are issues requiring investigation, however, where it is an appropriate strategy a CVA can be an effective rescue tool.

There are certain sectors where the big companies enjoy a monopoly that is unlikely to ever come under threat. This may be due to a lack of competition or simply a specialised and structured way of doing things, with the construction sector standing out as an example where cases of company administration mean that only the major companies have survived in many cases.