Insurer warns of rise in fraudulent claims amid cost-of-living crisis


Insurer Zurich UK has stated that there has been a significant increase in the number of fraudulent claims as a result of the cost-of-living crisis.

Zurich found that between 1 January and 31 May 2022, the number of fraudulent property claims rose by 25% compared to the same period in 2021. It also stated that in the last five months, it has prevented fraud amounting to £4.2 million, which equates to more than £40,000 a day.

TVs, mobile phones and jewellery were some of the most common items fraudsters claimed to have had stolen or to have lost.

Scott Clayton, Head of Claims Fraud at Zurich UK, said:

‘Sadly, many more people are facing hardships as a result of the cost-of-living crisis, which is contributing to an increase in fraudulent claims. Since the start of the year, we’ve seen a significant rise in bogus property claims as households and businesses come under increased financial strain.

‘While exaggerating or faking a claim might seem like a chance worth taking, the consequences can be severe, with fraudsters facing criminal prosecution and potentially even a prison sentence.’

Internet link: Zurich website

New finance legislation aims to unlock investments


The government has introduced legislation to Parliament, which it says will enhance the competitiveness of the UK financial services sector and unlock tens of billions of pounds of investment.

The Financial Services and Markets Bill repeals hundreds of pieces of EU retained law to deliver a ‘comprehensive model of regulation for the UK’.

The government says this will establish a ‘coherent, agile and internationally respected approach to financial services regulation that works in the interests of British people and businesses’.

The Bill will implement the government’s vision for the sector that is ‘open, green, technologically advanced and globally competitive – while maintaining high levels of consumer protection’.

Commenting on the legislation, David Postings, Chief Executive of banking industry group UK Finance, said:

‘A successful financial services sector is critical for achieving economic growth and benefits the whole country – it is one of our most important industries, delivering jobs, investment and growth across every region.

‘To ensure the sector continues to be successful, alongside maintaining the pace of reform, there needs to be a keen focus on international competitiveness from the next government.’

Internet link: HM Treasury press release

Pandemic-born businesses could add £20.4 billion to UK economy


More than £20 billion could be added to the UK economy in the future from the number of additional businesses created during the pandemic, according to research carried out by the Confederation of British Industry (CBI).

Around 800,000 companies were registered in the first year of the pandemic, a 22% increase compared with the previous year. Only 13% of these start-ups cited regulation as a challenge when starting their business.

However, access to finance was a key concern for many burgeoning business leaders, with 55% highlighting this post-2020, compared with 42% pre-Covid.

The research also found that businesses born during the pandemic are 20% more likely to embrace sustainability than firms established prior to 2020.

Tony Danker, Director General of the CBI, said:

‘Pandemic-born businesses – led by ambitious, resilient entrepreneurs – have innovated in so many ways, and at such speed, giving me great sense of optimism. It’s crucial we give these leaders the support they need to grow and succeed.

‘Rising energy prices, supply chain challenges, an uncertain economic outlook and cost-of-living crisis mean we’ve some testing months, and possibly years, ahead. For start-ups which count their experience in months, not years, that environment is even tougher.

‘That said, even if the cost of doing business is rising, the cost of starting a business shouldn’t. The UK needs the ideas and ingenuity of entrepreneurs to help us grow.’

Internet link: CBI website

Reform required to combat staff shortages, says BCC


The British Chambers of Commerce (BCC) has called for action to help firms employ more staff amidst recruitment difficulties.

A survey carried out by the business group revealed that 61% of firms are looking to recruit more employees, but many are facing difficulties in doing so.

According to the BCC, the construction sector is facing the most severe recruitment challenges, with 83% of construction businesses reporting issues with recruiting skilled workers.

The BCC has outlined a three-point plan to help businesses recruit. This plan includes encouraging firms to ‘find new ways of unlocking pools of talent’; helping employers invest in training; and reforming the Shortage Occupation List (SOL).

Jane Gratton, Head of People Policy at the BCC, said:

‘Businesses remain under huge pressure to fill jobs, but record levels of recruitment difficulty are showing no signs of improvement. Solutions are urgently needed so that firms can keep their doors open throughout these tough times.

‘We have written to the government outlining a three-point plan on how they can work with businesses to solve this.’

Internet link: BCC website

IMF warns UK is set for slowest rate of growth of G7 countries


The International Monetary Fund (IMF) has warned that the UK faces the slowest rate of growth in the G7 next year.

The IMF predicts that UK economic growth will fall to 0.5% in 2023, which is considerably lower than its previous prediction of 1.2%, which was forecast in April.

Russia’s invasion of Ukraine and the Covid-19 pandemic has caused the global economy to shrink, the IMF stated. It has consequently cut its 2022 global growth forecast to 3.2%.

It also said that rising prices and higher borrowing costs are continuing to squeeze households and businesses around the world. The data revealed that in the three months to July, global economic growth contracted, marking the first decline since the onset of the pandemic.

The IMF predicts a 15% probability of recessions in the G7 economies, which include Germany, France, the US, the UK, Japan, Canada and Italy. This is almost four times higher than usual, according to the IMF.

Pierre-Olivier Gourinchas, Economic Counsellor and the Director of Research at the IMF, said:

‘The global economy, still reeling from the pandemic and Russia’s invasion of Ukraine, is facing an increasingly gloomy and uncertain outlook.

‘Higher-than-expected inflation, especially in the United States and major European economies, is triggering a tightening of global financial conditions. China’s slowdown has been worse than anticipated amid Covid-19 outbreaks and lockdowns, and there have been further negative spillovers from the war in Ukraine. As a result, global output contracted in the second quarter of this year.

‘The outlook has darkened significantly since April. The world may soon be teetering on the edge of a global recession, only two years after the last one. Multilateral cooperation will be key in many areas, from climate transition and pandemic preparedness to food security and debt distress.’

Internet links: IMF website

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