Monzo advises customers to update operating systems for continued app support

Professional Services

Changes at the top announced by North East legal company Jacksons Law Firm

Changes at the top have been announced by North East legal business Jacksons Law Firm as it closes in on its 150th anniversary. Two new top roles have been created at the business, which has bases in Newcastle, Stockton-on-Tees and Sunderland, after Tony Wentworth announced he is stepping down from his role as managing partner. Erica Turner, partner and head of commercial property, is to take up the role of head of legal at the firm, while Amie Callan becomes head of operations. The pair said they are looking forward to taking Jacksons, which was named Law Firm of the Year at the recent Northern Law Awards, further forward ahead of its 150th trading year in 2026. Ms Turner said: “It is a privilege to be at the helm of Jacksons as it approaches its 150th year. I joined the firm in 2004, working alongside studying at university, and did not ever anticipate that 20 years on, this would be what the future held. This is testament to the mentoring, development and career opportunities that the firm provides - and which I am committed to delivering and developing moving forward.” She added all successful businesses have to remain dynamic to succeed - and Jacksons is no exception. “We’ve proven that, notwithstanding the firm’s heritage, the firm remains relevant, ambitious and successful as the firm’s recent Law firm of the Year and Practice Management Award wins demonstrate,” she said. “Within our strategic planning, we are constantly looking at how we can do things differently and better.” Ms Callan, who joined the firm in 2018, said: “We have a dynamic and fast-paced partnership with a results-driven approach that drives change and improvements in all areas, from client experience through to employee culture. This would not have been possible without the support and mentoring of others such as Tony, Jane Armitage and Erica, showing the great stewardship of the company but also the role the culture plays in succession and ensuring people have the skills to succeed.”

Professional Services

Sainsbury's continues financial services exit with £720m Argos credit card sale

Sainsbury's has finalised an arrangement to offload its Argos credit card portfolio for an estimated £720m, moving away from financial services to concentrate on its core retail operations. The supermarket chain has indicated that the deal is set to conclude at the end of the first quarter of 2025 and the sale price closely matches the loan balances and related provisions for the portfolio, as reported by City AM. This latest agreement with the London-headquartered NewDay Group is a continuation of Sainsbury's strategic shift towards bolstering its retail division following earlier, lacklustre efforts to boost competition in the banking industry. Previously, in June, Sainsbury's entered into an agreement with Natwest for the latter to take over the bulk of Sainsbury's Bank, and then proceeded to sell off its network of cash machines three months thereafter. Sainsbury's doled out £125m to purchase its banking arm from Natwest, but anticipates that Sainsbury's Bank will ultimately reimburse the grocer with at least £250m in surplus capital to be distributed among its shareholders. This move took place four months after Tesco divested its principal banking segment to Barclays for £600m, aligning with its "food first" initiative. After these transformations, Sainsbury's financial services division now primarily generates commission-based income by levying fees on partners allied with its brand and store locations. The retailer envisages an annual revenue of no less than £40m through March 2028, which would be sourced from its insurance, foreign exchange, and automated teller machines (ATMs), as well as earnings from the freshly established partnership with NewDay. Sainsbury's has revealed that the Argos credit cards account for approximately 20% of the brand's sales and are used by around two million customers. The company further stated that there will be no immediate changes for customers as a result of this deal. NewDay, a provider of credit to shoppers, took over the John Lewis Partnership's rewards card from HSBC two years ago. HSBC has been the owner of M&S Bank since 2004. Over the past twenty years, supermarkets have been exploring ways to generate additional revenue from their customers beyond food and drink, including ventures into telecommunications, broadband, restaurants, energy and more.

Professional Services

Metro Bank hit with £16.7m fine for inadequate monitoring of £51bn worth of transactions

Metro Bank has been hit with a hefty £16.7m fine by the Financial Conduct Authority (FCA) for its failure to adequately monitor transactions for potential financial crime risks. The City watchdog revealed that Metro Bank had inadequately monitored over 60 million transactions, totalling a value of £51bn, for money laundering risks between June 2016 and December 2020, as reported by City AM. "Metro automated the monitoring of customer transactions for potential financial crime in June 2016. However, its system did not work as intended," the regulator stated. An error in how data was fed into the system meant that transactions taking place on the same day an account was opened, and any subsequent transactions until the account record was updated, were not monitored. Despite concerns being raised by junior staff members in 2017 and 2018 about the adequacy of the checks, the issue was not fully resolved until December 2020, more than four and a half years after the automated system was first implemented. "Metro's failings risked a gap being left in our defence against the criminal misuse of our financial system. Those failings went on for too long," said Therese Chambers, joint executive director of enforcement and market oversight. The bank would have faced a larger fine of £23.8m, but it qualified for a 30 per cent discount as it agreed to resolve the issue.

Professional Services

City law firms see partner fees falling for second year as regionals close gap

While the majority of law firms anticipate a rise in revenues this financial year, City partners are witnessing a gradual decline in their fees as regional law firms begin to close the gap, new data reveals. Professional service firm Crowe's latest report indicates that despite inflation hitting 11 per cent in 2024, nearly 40 per cent of firms have seen their revenues grow beyond this rate, as reported by City AM. The study, which included 56 law firms each with a turnover exceeding £1m last year, found that City partner fees have fallen for the second consecutive year to £1.5m, a one per cent decrease from the previous 12 months. Meanwhile, regional firms are making strides, with the average partner generating £955,000, marking a near six per cent increase from the previous year. When it comes to fees per fee earner (including partners), they rose by five per cent in City law firms to £284,782 and by three per cent in regional firms to £146,487. The report also highlighted that the headcount for fee earners in regional firms grew by almost 10 per cent and by over two per cent for partners. In contrast, City firms saw an increase of one per cent for fee earners and over six per cent for partners. Crowe further disclosed that the surge in interest rates has led to unprecedented levels of interest on client accounts, with 41 per cent of client account balances exceeding £1m, the highest reaching over £7m. The survey revealed that a significant majority (72 per cent) of companies reportedly generated over £250,000 in interest from client accounts. The study also pointed out a shift in workplace dynamics, with law firms considering changes to flexible working systems - 66 per cent anticipate staff being in the office for more than half (50 per cent) of their time. The survey suggested that the drive for office attendance has predominantly come from regional firms, with 75 per cent expecting employees to be in the office three or more days a week, compared to just 50 per cent of City firms.

Professional Services

Bitcoin price rockets to new all-time high as Trump effect continues

Bitcoin has surged past $82,000, continuing its record-breaking streak following the re-election of Donald Trump as President. The cryptocurrency reached an all-time high of $82,313 (£63,900) earlier today, although it has since relinquished some of its gains, it remains 2.1 per cent higher, as reported by City AM. Bitcoin prices have soared approximately 20 per cent since Trump's election last week, with the rally spurred by optimism that a second Trump term could herald a new chapter for crypto. "Promises to deregulate crypto after three years of Gensler leading the Biden crackdown means the market is buoyant," commented Neil Wilson from Finalto. Other digital currencies, including Ethereum and Solana, have also seen significant increases since the election. Despite previous criticisms of cryptocurrencies, Trump began to engage with the industry in the lead up to his campaign, fuelling speculation of a more supportive regulatory landscape. "He's made an about turn on supporting the industry and is now vowing to turn the US into the crypto capital of the world," remarked Susannah Streeter, head of money and markets at Hargreaves Lansdown. "Bitcoin speculators are betting on a more clement regulatory environment and have expectations that the authorities may build up a reserve crypto fund, helping lift ongoing demand," she added. Anticipation is mounting that Trump might appoint more crypto-friendly regulators and establish a strategic Bitcoin reserve should he return to office. In tandem, the Republican Party may soon be assuming control of the House of Representatives, setting the stage for potential sweeping legislative adaptations.

Professional Services

UK's largest wealth manager St James's Place to embrace crypto after fund management overhaul

St James's Place's chief investment officer has revealed to City AM that there will be a continued significant reshuffling of who manages some of the UK's largest funds. In December, the country's leading wealth manager withdrew £2bn from Somerset Capital Management, a firm founded by Jacob Rees-Mogg, leading to its immediate closure as the mandate accounted for about two-thirds of its assets, as reported by City AM. This week, Gloucestershire-based St James's Place made a similar move, dropping Impax Asset Management and two others as managers of a struggling £9.9bn fund, causing the smaller asset manager's stock price to drop six per cent over the past two days. Justin Onuekwusi, who took on the role of chief investment officer a year ago, stated that investors should anticipate "a number of changes" in terms of which asset managers control the substantial amount of money in its coffers. "But I think it's important to take a step back as well and say the proposition always has to evolve. It's not that I've come in and now it's a big bang," added Onuekwusi. This move could have serious implications for the entire UK financial industry, as asset managers vie to manage money for the wealth giant. Over the past year, St James's Place has had to evolve more than most asset managers, following accusations that it was 'stuck in the past' and the introduction of consumer duty. The Financial Conduct Authority's Consumer Duty, introduced last year, mandates all financial services to "put their customers' needs first". Despite this, St James's Place has faced challenges due to high charges, exit costs, and non-transparent fee bundling, prompting a need for reform to maintain its status as the industry's leading wealth manager. Savers have struggled to determine if they're getting value for money from St James's Place because the bundled fees make it difficult to compare with other similar funds. "From an investment perspective, we obviously really welcome disaggregation, because it means that we can be compared like-for-like with other managers," Onuekwusi remarked to City AM. Onuekwusi, when questioned about whether St James's Place would apply the separated fees retroactively to allow analysts to assess fund performance accurately, stated that discussions are ongoing. "I think it would make sense to backdate for people to understand the journey they would have been on from a fund perspective," he added. Onuekwusi, who began his role a year ago, noted part of his job was to innovate the firm's offerings to clients. He emphasised that while there is a shift towards more cost-effective investments, it doesn't solely mean moving into index funds. The Chief Investment Officer (CIO) of a leading wealth management firm has highlighted the evolving landscape of investment strategies, noting: "As the market has innovated, now we have different types of index strategies, different types of low cost strategies, whether quant, fully indexed, or others." He also emphasised the importance of emerging asset classes, stating: "In 2035, you can't guarantee much in investment, but you will have new asset classes." The CIO's remarks reflect a forward-thinking approach, particularly as he acknowledged the potential of crypto, digital assets, tokenisation, and private equity sectors that might be avoided by firms with an outdated 'cultural DNA'. "As the largest wealth manager in the UK, we've got a responsibility, I think, to be on top of that," Onuekwusi remarked. However, this push for innovation is at odds with the company's goal of becoming a lower-fee St James's Place, given that new asset classes like private equity are known for their higher costs. "We are very conscious that the newer asset classes tend to be more expensive, so we've been very cautious about dipping our toe in the water there," he explained. Onuekwusi further commented on the integration of these asset classes into the company's offerings: "The thought is, do we want them in our centralised investment proposition, or do we want them in more bespoke types of propositions? That's something we are clearly aware of,". Yet another challenge is the £500m in cost-cutting measures that St James's Place has committed to over the coming years, which could conflict with the resource demands of innovation.

Professional Services

Bank of England announces rate cut amidst Budget implications

The Bank of England has reduced interest rates by 25 basis points, indicating a "gradual" approach as the Budget's impact permeates the economy. Eight members of the Bank's Monetary Policy Committee (MPC) voted in favour of the second rate cut this year, with only Catherine Mann opposing. This brings the benchmark Bank Rate to 4.75 per cent, down from a high of 5.25 per cent. The Bank made its first interest rate cut since the pandemic in August. Market expectations were met with this decision due to recent progress on inflation. Data released last month revealed that the headline rate dropped to 1.7 per cent in September, the lowest since April 2021. Underlying inflation indicators, such as services inflation and wage growth, have also continued to ease, suggesting a decrease in domestic price pressures, as reported by City AM. "If the economy evolves as we expect it's likely that interest rates will continue to fall gradually from here," stated Andrew Bailey, Governor of the Bank. However, Bailey emphasised that the Bank "can't cut interest rates too quickly or by too much" due to ongoing worries about inflationary dynamics. Specifically, the Bank highlighted the potential inflationary effects of the new government's inaugural Budget. Chancellor Rachel Reeves unveiled approximately £40bn in tax hikes last week, which are set to underpin a £70bn average annual increase in government spending. According to the Bank's latest projections, this blend of tax increases and heightened expenditure is expected to elevate inflation while simultaneously stimulating growth. The Bank's officials have estimated that due to the Budget's implications, inflation could rise by about half a percentage point, potentially reaching a peak of 2.75% in mid-2025. They anticipate that inflation will realign with its target by early 2027, which is roughly a year beyond their previous predictions. The report also highlighted uncertainties surrounding the inflationary effects of the rise in employers' national insurance contributions. Bank experts indicated significant ambiguity regarding the impact of the tax increments, noting that outcomes would hinge on "the degree and speed with which these higher costs pass through into prices, profit margins, wages and employment". In contrast to the Office for Budget Responsibility's outlook, the Bank foresees businesses absorbing a larger portion of the increased expenses within their profit margins, rather than reducing employee wages. Nonetheless, it was implied that the fiscal measures would likely lead to a "small decrease in potential supply" and exert a "small upward impact on inflation". Furthermore, the Bank suggested that the Budget would bolster growth by about 0.75% relative to the forecasts made in August. This adjustment could see the annual growth rate in 2025 surge to 1.75%, an increase from the current year's projection of around one percent. "This reflects the stronger, and relatively front-loaded, paths for government consumption and investment more than offsetting the impact on growth of higher taxes," stated the Bank. Growth is then projected to decline to 1.1 per cent in 2026 as a degree of spare capacity builds in the economy. This mirrors both the restrictive stance of monetary policy and fiscal tightening. The forecasts were predicated on the assumption that the Bank Rate would drop to around 3.75 per cent by the end of next year. Traders have already adjusted their expectations for rate cuts as a result of the Budget, anticipating just two or three rate cuts in 2025. Setting aside the potential inflationary impacts of the Budget, Bank officials continued to highlight concerns about the persistence of services inflation. Services inflation, which is viewed as a good measure of domestic price pressures, dropped to 4.9 per cent in September, significantly below the Bank's expectations. However, Bank officials cautioned that some of the decrease in services inflation was driven by "volatile categories", some of which are expected to unwind. "Services price inflation was expected to remain broadly unchanged over the next six months," it declared.

Professional Services

Shawbrook Bank's loan and deposit books surpass £15bn amid robust demand in real estate

Shawbrook Bank has announced that its loan and deposit books have surpassed £15bn for the first time, following a surge in lending demand during the first nine months of the year. In today's trading update covering the first three quarters, the retail lender reported an 18 per cent annualised increase in its loan book to £15.1bn, up from £13.3bn the previous year, propelled by "strong net lending volumes across our core specialist real estate and SME markets", as reported by City AM. The bank's deposit book also experienced significant growth, expanding by 16 per cent to over £15.2bn, compared to £13.6bn last year. "Demand for the premium experience, flexibility and certainty we offer across our specialist lending markets remains robust, with both our loan and deposit books exceeding £15bn for the first time," Marcelino Castrillo, Shawbrook Bank's chief executive, commented. "We have maintained our focus on re-weighting our lending mix while leveraging our agility in the deposit market, contributing to a stronger underlying return on tangible equity for Q3." "Investment in the continuous evolution of our proposition to stay ahead of customer needs, expectations and trends remains our strategic focus." However, the bank did note an uptick in the number of clients in arrears, rising to 2.8 per cent from 2.3 per cent, a figure which the firm stated remains within its credit risk appetite. "As we look ahead, we continue to see promising opportunities for expansion and value creation across our core markets, including SME and Real Estate," Marcelino further added.

Professional Services

The latest acquisition deals in Welsh business

Here we feature the latest equity and acquisition deals in Welsh business. Caerphilly-based Drone Evolution has secured equity backing from the British Business Bank’s £135m Investment Fund Wales as it looks to accelerate growth. The company, which was set up in 2018, has secured a £850,000 investment from the £50m equity element of the fund from the economic development bank of the UK Government, which is funded managed by Foresight. The nine-strong team, co-founded by business partners Clayton Earney, Toby Townrow and John Young, pilot drones and provide UK-wide consultancy services. Some of its key clients include multi national property management company CBRE facilities management venture Mitie, Caerphilly Borough Council, as well as delivering in-depth land surveys for EDF Energy’s windfarm projects. Drones, or unmanned aerial vehicles (UAVs) are used to supply aid and food, water and medicine to areas Following the aftermath of Storm Dennis, Drone Evolution, was able to inspect infrastructure damage, problem areas and terrain conditions, to assist in the clean-up operation and to provide mapping and data collection. Mr Townrow, business development director at Drone Evolution, said:“Much of our work is inspection and detection, as well as remedial work. We offer early analysis to prevent potential damage. Our drones are used to complete building, telecoms and typography land surveys, thermography and traffic monitoring. We have worked extensively on coal tip mapping and monitoring year on year for any shift or danger. “We continue to work closely with local authorities to help reduce overhead costs. Our drones identify blocked drains or missing tiles on schools, to prevent leaks and damage.” On its latest investment he added:“It was clear from our very first conversations with Foresight that we were compatible for Investment Fund for Wales support in unlocking the business’ true potential.” Drone Evolution has patented a tethered quadcopter design drone, which can fly for extended periods. As they are powered by a cable, these drones benefit security operations in a temporary space including sports events or music concerts. Mark Sterritt, director, nations and regions Investment Funds at the British Business Bank, said: “The Investment Fund for Wales was established to provide the financial backing that innovative and ambitious companies like Drone Evolution so often need and we are particularly pleased to support their expansion plans as they continue to scale. “The Drone Evolution team is highly experienced, driven and passionate about this specialist, emerging sector, and they have already developed an impressive roster of clients. I’m looking forward to hearing more about what they do next following this significant investment.” Ruby Godrich, investment manager in the private equity team at Foresight, said:“Drone Evolution is an ambitious, growing business with a passionate management team. Over the last few years, the team has grown a successful drone services division whilst also developing a range of products. "! Foresight’s investment via the Investment Fund for Wales will help the company to further scale and in turn have a positive impact on the local economy through the creation of skilled jobs. We are delighted to be supporting Drone Evolution and look forward to partnering with the team on their exciting growth journey.” The Development Bank of Wales is a minority equity holder in the business. Llusern Scientific University spinout firm Llusern Scientific, which has developed a rapid diagnostic test for urinary tract infections (UTIs), has been boosted with a six-figure equity round investment. The Cardiff-based company - which spun out of the University of South Wales - has been backed by the Development Bank of Wales in its latest fundraise aimed at accelerating its commercialisation. Since the start of the year the development bank has invested in six spinout firms with a combined value of £1.7m. The others include Swansea-based Corryn Biotechnologies and Grove Nanomaterials along with Awen Oncology, a spin-out of Bangor University and Cardiff University. Cardiff Metropolitan University spinout Kaydiar and Cardiff University spinout Optimise.ai Llusern Scientific was established by microbiologist Dr Emma Hayhurst and molecular geneticist Dr Jeroen Nieuwland after they were awarded a discovery award from the Longitude Prize and UK innovation agency NESTA to develop an affordable diagnostic tool to combat antibiotic resistance. They were later joined by biomedical engineer Professor Ali Roula and diagnostic professional Martyn Lewis to develop Lodestar DX, a molecular diagnostic test system for both humans and animals that is non-invasive and capable of providing highly accurate results in 35 minutes. Chief executive of Llusern Scientific, Dr Hayhurst said: “UTI prevalence is rising with an ageing population and the increase in antibiotic resistant infections. The gold standard for UTI diagnosis is microbiological urine culture and, in the UK, millions of urine tests are processed and cultured each year. However, a major drawback of urine culture systems is the time lag of approximately two days between specimen collection and pathogen identification. Fast and accurate diagnosis, leading to a rational treatment, is essential to achieve a timely and effective therapy. “Our rapid and easy-to-use UTI test-kits are fully developed and commercially available in the UK, with a real-world evaluation underway within the primary care sector. They decrease the time involved in getting an accurate diagnosis and provide clinicians with the evidence they need to make informed treatment decisions. We hope that this will improve antibiotic stewardship and patient outcomes, resulting in fewer GP visits and hospital admissions associated with urinary tract infections. The same principals apply to the veterinary market. “However, we wouldn’t be preparing to take Lodestar DX to market without investment. Commercialising academic research requires the support of forward-looking funding partners like the Development Bank who can provide patient capital and access to an established ecosystem. It’s what will enable us to scale and grow.” Harry George, assistant investment executive with the Development Bank. He said: “Supporting technology-focussed start-ups with high growth potential like Llusern is exactly where our equity funds can make a real difference. We look forward to working with Emma and the team to scale the business here in Wales.” Carl Griffiths, technology seed fund manager with the development bank, said: “Boosting business innovation will help to drive sustainable growth and long-term prosperity. University spinouts often have high-growth potential which is why we are working closely with our partners in higher-education to ensure that capital is available to help bring University research to market and support commercialisation. “Most of the university spinouts are clustered around the “golden triangle” of London, Cambridge, and Oxford but we want to strengthen the pipeline of spinouts in Wales, providing the funding necessary for them to commercialise research, grow faster and attract further investment. From the emerging AI sector to healthcare and life sciences, some of the world’s most valuable and best-known companies have been founded at universities.” Dr Louise Bright, pro vice chancellor of enterprise, engagement and partnerships at the University of South Wales, said: “We are committed to fostering innovation and entrepreneurship and supporting the transition of research into real-world solutions. We are very proud of Llusern who are doing exactly that. This investment from the development bank reflects the potential of this venture to make a significant impact in its field, while also contributing to the growth of the regional and global economy.” Do-It Solutions Market leader in neurodiversity screening and assessment Do-It Solutions has been acquired by Lexxic. Cardiff-based Do-It Solutions was established by Professor Amanda Kirby. The value of the deal has not been disclosed. Do-It’s web-based profiler system solution is a neurodiversity, cognitive and well-being screening and assessment system. It has also developed a comprehensive suite of sector specific neurodiversity training resources helping organisations to further understand and embrace neurodiversity. London-based Lexxic is a specialist in workplace neurodiversity assessment, training and accreditation services. Cardiff-based Gambit Corporate Finance acted as lead advisor to the shareholders of Do-It on its sale. Legal advise was provided by Acuity Law The Gambit team was led by Frank Holmes, Kate Jones and Sean David. Mr Holmes, partner at Gambit and chair of Do-It, said: “It is an absolute privilege to have worked with the UK’s leading expert on neurodiversity and learnt so much about the impact profiler and Do-It’s associated solutions have on people’s lives, and the advantages these bring to willing employers organisations in both the private and public sector alike who can fully tailor support for individuals with diverse talents and skills - qualities increasingly vital in the modern workplace.” Ms Jones, manager at Gambit Corporate Finance, said: “We are thoroughly delighted to have advised the shareholders of Do-It, one of the global market leaders in championing neurodiversity, well-being and inclusion, on its sale to Lexxic. This transaction highlights Gambit’s ability to identify and apply a tailored transition that meets all stakeholder objectives.” Professor Kirby said:“The Gambit team have stood by me and the business for a number of years and have provided the most fitting and professional outcome via this union with Lexxic, a great success all round.” Andrew McGlashan, corporate partner at Acuity Law, said: “Amanda and the team at Do-It Solutions have created something really special and we wanted this deal to reflect that. We have spent the last 18 months working closely with the shareholders to ensure that their objectives were met and that they were satisfied with the final outcome.” Headquartered in Cardiff, Acuity Law has more than 150 lawyers. The firm’s ambitious growth strategy has seen it open offices in Birmingham, Leeds and Liverpool in recent years, adding to its presence in Bristol, London and Swansea. NES Services Group Deeside headquartered NES Services Group has acquired Versatile Telephone Marketing (VTM), based in Suffolk, as it looks to build its portfolio of businesses across the UK. NES Services Group, which has five other subsidiaries covering environmental, parking and security enforcement, has added VTM to its stable with the telecoms business retaining its branding and safeguarding 15 jobs in the process. VTM joins 3GS, National Enforcement Solutions, HSG Security, Enforcement Pro and Caledonian Enforcement Solutions to the umbrella of companies in the group. NES Services group director, Ashley Govier, said: “This is a hugely important acquisition for our business. We want to diversify in professional services for clients in the private, public and third sector. Also, we want to ensure our portfolio of businesses are spread across the breadth of the UK as we grow.” On how the acquisition came about, Mr Govier added “We have used tele-marketing services and had a clear idea on how we could do it better. Luckily, we came across VTM who were passionate about what they did and our vision and values aligned, “Acquisitions are part of our growth strategy so we would welcome any conversation with business owners who are looking to exit or see if their business can add value to a larger group.”

Professional Services

North East business tackling strain of more than 482,000 overdue invoices, research shows

Insolvency experts have warned of the growing strain overdue invoices are placing on North East businesses, with firms currently tackling almost half a million unpaid bills. The region’s firms have seen a 6.8% jump in unpaid bills in Q3 2024 compared to the same period in 2023, according to R3’s analysis of data provided by Creditsafe. In all, North East firms had 482,174 invoices that had gone past their payment deadline on their books in Q3 2024 – with 156,554 in July, 162,568 in August and 163,052 in September. The region faring the worst was the West Midlands, which has seen a 50.3% rise year-on-year, followed by Scotland on 33.6% and the South West on 12.1%. Kelly Jordan, chair of R3 in the North East, said: “While the rise in overdue invoices in the North East has been more modest compared to some other regions, it remains a warning sign of the financial strain many businesses in the region are still facing. Costs are continuing to rise, albeit at a slower pace, and it’s becoming increasingly more difficult to pass on these extra costs to customers or to cut back in other ways. “As a result, businesses are experiencing tighter margins and cash flow challenges, making it harder to keep up to date with the payments they owe.” The huge number of invoices were on the desks of more than 38,000 North East businesses in the third quarter of the year – with 12,615 firms in July, 12,771 in August, and 12,754 in September. This is 3.5% higher than the same period in 2023 which saw 36,843 North East businesses fail to pay their bills on time. Ms Jordan, who is a partner at Muckle LLP, added: “Although the number of companies with overdue invoices on their books fell slightly in September, the overall trend shows a consistent quarterly rise and numbers for that month are higher than in September 2023. These figures have been steadily increasing throughout the year and are significantly higher than they were last year. “Without a consistent improvement in payment practices or cash flow, many companies may find it increasingly difficult to manage their debt and maintain operations, and we could see more and more businesses turning to a formal insolvency solution as a result. “I would urge business owners and directors that are struggling to pay their bills on time to seek advice as soon as they can. Taking that first step can be hard, but by having the conversation early, you will have more time and more options available to you than if you’d waited for the problem to get worse.” Last month the Government announced the New Fair Payment Code – measures to support small businesses and the self-employed by tackling the scourge of late payments, which leads to 50,000 business closures a year according to the Federation of Small Businesses.