Latest news with #TimCooper
Scotsman
3 days ago
- Business
- Scotsman
Overdue invoices in Scotland drop to 2025 low, new R3 research shows
The number of overdue invoices on the books of Scottish businesses dropped to the lowest level in 2025 so far in April, according to new research from R3, the UK's insolvency and restructuring trade body. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... R3's analysis of data provided by Creditsafe shows Scottish businesses had a total of 602,822 overdue invoices on their books in April 2025 – the lowest monthly total in 2025 so far. Overdue invoices numbers fell by 0.8% in April when compared to the previous month's total of 607,492. Compared to the rest of the UK, Scotland was one of only four regions or nations to see a monthly fall in overdue invoice numbers, along with Yorkshire (0.9% fall), Northern Ireland (0.6%) and the North East (0.2%). Advertisement Hide Ad Advertisement Hide Ad However, despite the fall compared to the rest of the 2025 figures, overdue invoice numbers in Scotland increased by 30.2% in April 2025 when compared to April 2024's total of 462,933, and by 46.5% compared to April 2023, when 411,438 overdue invoices were recorded. Tim Cooper Tim Cooper, Immediate Past President of R3 and partner at international law firm Addleshaw Goddard, says: 'There's no single reason behind the fall in overdue invoice numbers, but it suggests that on the whole, more businesses are being paid promptly and are managing their finances in a way that's helping them avoid building up payment backlogs than there were at the start of this year. 'However, while the drop in overdue invoices compared to the previous three month's figures is encouraging, this is only a modest drop against a significant and sustained increase in overdue invoices in the two years prior. We should therefore view these latest figures with caution: we don't yet know whether this recent drop will continue or be short-lived. 'For smaller businesses in particular, being paid on time can make a real difference to cash flow and financial stability. A drop in late payments, even a modest one, is welcome and while this development won't fix every challenge firms are currently facing, it may ease some pressure across the supply chain at a time when trading conditions remain tough. Advertisement Hide Ad Advertisement Hide Ad 'Cost pressures on businesses will have increased in April with the changes to Employers' National Insurance and the minimum wage, and the impact of these extra costs, at a time when confidence and demand are already weak, may take some time to filter through to the data. 'My advice to businesses that are struggling with late payments or cash flow concerns is simple – seek advice and seek it as early as possible. Doing so gives you more time to assess your options and take action before those options are no longer available to you.'
Scotsman
3 days ago
- Business
- Scotsman
Overdue invoices in Scotland drop to 2025 low, new R3 research shows
The number of overdue invoices on the books of Scottish businesses dropped to the lowest level in 2025 so far in April, according to new research from R3, the UK's insolvency and restructuring trade body. Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... R3's analysis of data provided by Creditsafe shows Scottish businesses had a total of 602,822 overdue invoices on their books in April 2025 – the lowest monthly total in 2025 so far. Overdue invoices numbers fell by 0.8% in April when compared to the previous month's total of 607,492. Compared to the rest of the UK, Scotland was one of only four regions or nations to see a monthly fall in overdue invoice numbers, along with Yorkshire (0.9% fall), Northern Ireland (0.6%) and the North East (0.2%). Advertisement Hide Ad Advertisement Hide Ad However, despite the fall compared to the rest of the 2025 figures, overdue invoice numbers in Scotland increased by 30.2% in April 2025 when compared to April 2024's total of 462,933, and by 46.5% compared to April 2023, when 411,438 overdue invoices were recorded. Tim Cooper Tim Cooper, Immediate Past President of R3 and partner at international law firm Addleshaw Goddard, says: 'There's no single reason behind the fall in overdue invoice numbers, but it suggests that on the whole, more businesses are being paid promptly and are managing their finances in a way that's helping them avoid building up payment backlogs than there were at the start of this year. 'However, while the drop in overdue invoices compared to the previous three month's figures is encouraging, this is only a modest drop against a significant and sustained increase in overdue invoices in the two years prior. We should therefore view these latest figures with caution: we don't yet know whether this recent drop will continue or be short-lived. 'For smaller businesses in particular, being paid on time can make a real difference to cash flow and financial stability. A drop in late payments, even a modest one, is welcome and while this development won't fix every challenge firms are currently facing, it may ease some pressure across the supply chain at a time when trading conditions remain tough. Advertisement Hide Ad Advertisement Hide Ad 'Cost pressures on businesses will have increased in April with the changes to Employers' National Insurance and the minimum wage, and the impact of these extra costs, at a time when confidence and demand are already weak, may take some time to filter through to the data.
The Independent
25-04-2025
- Business
- The Independent
Number of people struggling with debts rising as ‘breathing space' requests up
There was an increase in the number of people needing 'breathing space' from their debts in March compared with the same month last year, new figures from the Insolvency Service show. There were 8,033 breathing space registrations across England and Wales in March 2025, which is four per cent higher than in March 2024. People can register for breathing space to give themselves a time period to get on top of their debts without being chased by creditors. Registrations take place under the Debt Respite Scheme and people may or may not end up going into a formal personal insolvency procedure, such as a debt relief order (DRO), an individual voluntary arrangement (IVA) or going bankrupt. Of the 8,033 breathing space registrations, 7,932 were standard and 101 were mental health breathing space registrations. A standard breathing space gives people with problem debt legal protections from creditor action for up to 60 days. A mental health crisis breathing space is available to those receiving mental health crisis treatment. It lasts as long as the person's mental health crisis treatment, plus 30 days. Households have faced various bill hikes in April, which will have put an additional strain on some people's finances. The figures also show that 9,205 formal personal insolvencies were recorded in England and Wales in March, marking a 2 per cent increase compared with the same month in 2024. This was made up of 613 bankruptcies, 3,490 DROs and 5,102 IVAs. DROs have been at record high monthly numbers since the abolition of an upfront £90 fee in April 2024, with the 45,804 DROs in the past 12 months being nearly twice as high as the long-term annual average, the Insolvency Service said. In June 2024, the criteria for DRO eligibility were expanded. The debt threshold was increased from £30,000 to £50,000 and the allowable value of an exempt motor vehicle was increased from £2,000 to £4,000. The number of IVAs registered in March 2025 was 9 per cent lower than the average monthly number seen in 2024. Bankruptcy numbers have remained at about half of pre-2020 levels and were also 11 per cent lower than in March 2024. The Insolvency Service also said that 1,992 company insolvencies were registered in March 2025, marking a 9 per cent increase compared with the same month in 2024. Company insolvencies over the past 12 months have been slightly lower than in 2023, which saw a 30-year high annual number, but have remained high relative to historical levels, the report added. John Cullen, a business recovery partner at Menzies, said: 'Our message would be for businesses to act early if they anticipate financial trouble.' Tim Cooper, president of insolvency and restructuring trade body R3, said that, with a rise in people needing DROs and breathing space from debts: 'It is clear that there is still a real and serious issue with debt in England and Wales, and the severity of that is increasing. 'The key factor behind this is likely to be the ongoing cost of living, which continues to be an issue for households across England and Wales. 'While inflation is slowing, people's money is still going less far than it did three, six and 12 months ago, and a number of household bills have increased from this month, which will put further pressure on stretched finances and cause increased concern for those for whom money is already tight. 'Cost-consciousness is making people cautious about their spending and causing them to continue to hunt for deals wherever they possibly can. 'However, these cuts are likely to come from the weekly shop, as there is still some willingness to spend on non-essentials. 'More broadly, consumers remain concerned about the economy and their own finances, and are reluctant to make major purchases unless they are strictly necessary amidst concern about the impact the tariffs, rising bills and the potential for further increases in inflation could have on their outgoings.'
The Herald Scotland
23-04-2025
- Business
- The Herald Scotland
Scottish insolvencies rise amid spiralling costs and weaker demand
This represents a rise of almost 4 per cent on 2022-2023's figure of 1,132. The increase has been put down to a greater willingess from creditors to pursue debts, with HMRC the largest and most common applicant to issue a winding-up order in an attempt to recover money for public purse. Private sector creditors have also been following the trend in an effort to balance their own books. Tim Cooper, President of insolvency and restructuring trade body R3 and Partner at Addleshaw Goddard LLP, said that firms were concentrating on staying afloat rather than aiming for growth. He said: 'It may be that the prospect of having to navigate the rises in National Insurance and Minimum Wage, which came in at the start of this month, was too much for some directors and led to them closing their firms while they were still solvent and while the choice to do so was theirs. 'Economic growth remained sluggish and much of the momentum from earlier in the year gave way to flat conditions by the end of the Q4. 'Firms across a range of sectors have faced rising costs, weaker demand, and growing uncertainty about the broader economic outlook, all of which have made it increasingly difficult to plan and operate with confidence.' Firms are targeting 'staying afloat' over growth (Image: Gareth Fuller/PA Wire) He added: 'Rises in Employers' National Insurance and the National Minimum Wage in the Autumn Budget caught many businesses off guard. These increases will particularly affect businesses with a high proportion of lower-paid or part-time roles, including those in retail, hospitality, and social care. 'As the changes take effect, the pressure on margins is being felt across the board, and business owners are facing difficult decisions about how to manage through an already tough environment.' There were 7,412 personal insolvencies during the same time, a decrease of 8.3% from 2023-2024's figure of 8,082, and a decrease of 7.4% on 2022-2023's figure of 8,001. READ MORE: Mr Cooper said: '2024 was another difficult year for households across Scotland. The high and increasing costs of food, energy, and other bills continued to put a strain on personal finances, leading some to rely on food banks or dipping into savings just to cover basic expenses. 'Consumer confidence also took a hit, with people feeling increasingly worried about their financial future and cutting back on non-essential spending as a result. 'The cost of housing also remains a major concern. The end of the rent cap in March is expected to add further financial strain, particularly in urban areas where rents have already risen steeply. At the same time, high mortgage rates continue to affect homeowners. While recent interest rate cuts may provide some relief for new borrowers, those with existing loans remain under significant pressure.'
