IT firms drown as rising tide buoys rest of UK plc The number of British business failures eased back in April, however IT firms bucked the trend with insolvencies up by a third compared to last year. Credit ratings giant Experian said that 1,564 businesses failed in April, compared to 1,808 company collapses in the same month last year. Put another way, this was 0.08 per cent …
I've seen where UK tech went, to the colony they trained... Kinda asking for that one.
Also, another El Reg yesterday (about HP downsizing) said the UK has the best labor law on the planet. Reckon those 'great' laws might have something to do with it? If a business can't terminate underperforming staff then they are doomed. Its like having cancer.
No. Sacking underperforming staff is entirely possible and happens every day across the UK. It is a myth that our labour laws are damaging our businesses - one being perpetuated by individuals with vested interests in getting rid of more expensive staff and wanting to take on cheaper staff.
All our laws mean is that business managers have to make sure they don't screw their staff over. Seems fair to me!
This post has been deleted by its author
Myth? Really? When is the last time one of your non-UK friends bought something that was "Made In UK"? Been quite a while if it wasn't vegimite. There's a good reason IT & manufacturing has left the UK. Even BAE & BP really don't do real business there except for an HQ & that's just because the govt wouldn't let them leave.
Those great labor laws make sure NHS will always have an opening for you. Even if its just as a client. There's no real business left in the UK that isn't owned or mostly based abroad.
What's the reason for that you reckon? I bet I know...
I've experienced number of British firms go down the tubes or be sucked into foreign control and labour laws were never to blame. Companies can easily get rid of under-performing workers (a dose of 'restructuring' is an easy option), but they seem to have some difficulty in getting rid of underperforming managers. And that's what really kills them.
or indeed, the HMRC closing the loophole where small IT service companies used to be able to close through a voluntary windup of their company and only pay tax at entrepreneurial relief on the assets of the company (usually a bank account chocked full of cash) - which was far cheaper than paying tax on the income/dividends.
The new rules state that companies can still do this; but have to become insolvement and therefore involve a solvency practioner.
April is significant because a lot of small IT service companies were getting it done and dusted before the new rules came into place.
I bet you'll find that a lot of new IT companies started up around the same time.
The Register 
Biting the hand that feeds IT
Copyright. All rights reserved © 1998–2024
