United Kingdom

In October 2024, there were 116 company insolvencies registered in Scotland. At the same time, the total number of company insolvencies was comprised of 50 CVLs, 60 compulsory liquidations, five administrations and one receivership appointment. There were no CVAs, the Scottish Financial News reported. However, it must be noted that the total insolvency rate in Scotland in the 12 months to October 2024 was 53.1 per 10,000 companies on the effective register, marking a 1.5% decrease from the preceding 12 months ending October 2023.

Thames Water extended the deadline in its search for billions of pounds in new equity, as it demands more from potential investors on how they plan to help turn around the beleaguered utility, Bloomberg News reported. Investors originally had to submit indicative, non-binding bids on Nov. 28, but that has now been extended by a week to Dec. 5. The utility last week demanded further details on how any investor plans to improve performance, one of the people said.

Insolvency specialist Begbies Traynor has warned that higher wage bills and prospects for fewer interest rate cuts will keep U.K. company failures at high levels, as it revealed its own cost hit from the recent Budget, the Independent reported. The group said that it is set to face an extra £1.25 million a year from next April after the Chancellor last month announced moves to hike employers’ national insurance contributions. Begbies said it was “reviewing options to mitigate the impact where possible”.

Just when Britain seemed to be moving beyond its inflation problem, the new government's spending splurge and the risk of a global trade war triggered by U.S. President-elect Donald Trump's tariff plan are threatening to extend it, Reuters reported. British inflation peaked above 11% two years ago after the outbreak of the Ukraine war, the highest among the world's big rich economies. It then took longer to fall than in many other countries, in part because of a shortage of workers following Britain's exit from the European Union. No one expects another double-digit price leap.

It was announced as almost a footnote. But a change to the way the Bank of England’s bond portfolio is managed has freed up as much as £10 billion ($12.7 billion) for UK Chancellor Rachel Reeves in coming years, helping to keep a lid on borrowing, Bloomberg News reported. Reeves wrote to BOE Governor Andrew Bailey on Tuesday to agree that the cash buffer held to protect the central bank against unexpected losses on its holdings should be “slightly recalibrated and reduced.” It means the Treasury will transfer less money to the BOE as the reserve is allowed to run down.

Planet Fitness lost its bid in bankruptcy court to acquire budget fitness chain Blink Holdings, according to court filings viewed by CNBC. Planet Fitness placed its competing eleventh hour bids early this month during a 48-hour challenge window. The two higher bids came after it lost out in a bankruptcy auction to U.K.-based, privately held fitness chain PureGym. Late Tuesday, Delaware’s bankruptcy court formally accepted PureGym’s $121 million offer, which initially won at auction in late October. Bankruptcy Judge J.

Southern Water Ltd. was downgraded to junk status by Moody’s Ratings and warned it could be cut further in light of the woes facing UK water and sewage providers as well as the company’s own weak track record, Bloomberg News reported. The firm’s “history of material operational and financial underperformance” could continue over the coming five years and impact the potential raising of £4 billion ($5.1 billion) in new debt and at least £650 million of new equity, Moody’s said in a statement Wednesday.

Chancellor of the Exchequer Rachel Reeves believes the UK’s crackdown on banks in the wake of the global financial crisis has gone too far and vowed to give the country’s watchdogs new marching orders to ensure they’re focused on growing the economy, Bloomberg News reported. Regulators have spent much of the last decade trying to eliminate risk taking, which has hindered growth across the country, Reeves said in prepared remarks for her inaugural Mansion House speech to the City of London on Thursday. “The UK has been regulating for risk, but not regulating for growth,” Reeves said.

Thames Water won crucial support from creditors to move forward with its plan to raise £3 billion ($3.8 billion) in emergency funding, Bloomberg News reported. Holders of more than three-quarters of the beleaguered utility’s senior, Class A debt agreed to the proposal, according to a statement from the company on Wednesday. The fresh money, starting with an initial tranche of £1.5 billion, comes with an annual interest rate of 9.75%.

Britain's finance sector is counting on policymakers to deliver a rulebook revamp that prioritises growth and stops business slipping away to global rivals, amid fresh challenges to London's financial superpower status, Reuters reported. U.K. finance minister Rachel Reeves is giving her first Mansion House speech to leaders of the City on Thursday and is expected to outline the role the left-leaning Labour government wants them to play to help increase national prosperity. Pressure is mounting after Trump vowed to "liberate" the U.S.