A state guarantee scheme to underpin vital supply-chain insurance is set to
be announced by Chancellor Alistair Darling in next week’s Budget, according to
government insiders, the Financial Times reported.
The credit insurance scheme will form a centrepiece of the Budget initiatives
to help small to medium-sized businesses cope with the recession, the FT said.
Its unveiling marks the culmination of months of negotiations with insurers
spearheaded by Lord Mandelson, the business secretary, the paper said.
The initiative is in response to a sharp reduction in credit insurance, which
protects companies that supply goods on credit against the risk that they will
not be paid.
The scarcity of credit insurance could threaten hundreds of supply chains,
according to the FT.
The government scheme is expected to offer guarantees for companies that have
seen their cover reduced but not withdrawn.
In January Accountancy Age revealed that Euler Hermes, the UK’s
largest trade credit insurer, had restricted the terms of its cover, saying the
move would help customers weather the recession.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team