ICSM Insolvency News: car parks in decline shock; no joke as comedians left unpaid; and Iran War fall out continues as airlines go bust – but the 5p fuel hike is delayed

By Harry Mottram: Some welcome news for hauliers and motorists with the announcement of the 5p increase on fuel duty due this September being delayed until after Christmas. The Chancellor of the Exchequer Rachel Reeves has outlined a range of help for businesses and households to try to offset the effects of Iran-USA War which has sent the cost of oil above $100 a barrel. She is in something of a difficult situation as there is no immediate solution to the near closure of the Strait of Hormuz which has crippled economies around the world. Add to that the USA tariffs imposed on exports and the ongoing war in Ukraine and her options are restricted if she is to live up to Labour’s promise of growing the economy. Whether it works – we’ll have to wait and see.

The Iran-USA War with its parallel conflict in Lebanon has had a huge impact on airlines due to the numbers of flights cancelled using the Gulf States as either stop-offs or simply having their airspace closed for fear of rockets. Travellers and holiday makers have voted with their suitcases and either cancelled trips completely, used the Eurostar, jumped in their cars or taken flights that avoid the area. Bookings are down and with the rise in fuel costs airlines are in trouble – despite their reassuring statements. KLM Royal Dutch Airlines cancelled all flights to Dubai, while Air Canada, Asiana Airlines, Delta, Lufthansa and SAS have all slashed the number of flights they schedule. British Airways, EasyJet and Jet2Holidays say they don’t plan any cuts for now – but don’t hold your breath if things don’t improve in the Gulf. Meanwhile Zenith Aviation, Spirit, Ascend Airways and Air Antilles France have all gone bust this year.

If you’ve ever tried to park in central London, Birmingham or Glasgow you might have struggled to find a space. However, according to one of the reasons given by NCP for their collapse into administration in March is there are not enough people parking in their car parks. They’ve closed many of their car parks with the others open for the moment as buyers are sought for the others. The excuse for their fiscal difficulties was that due to WFH there were not enough commuters driving into town and parking – which relates to the Covid Crisis of course. NCP went pop with a £305m debt mountain which is more than the value of their 340 car parks. Other reasons for the collapse said their Japanese parent company Park 24 is the cost of maintaining the car parks, and consumer resistance to the high cost of parking - £65 in London for one day is too much when extracted from a weekly pay packet. Drivers have voted with their wheels and using apps have looked for alternative parking options.

Finally, hundreds of comedians, support workers and assistants have been left unpaid by Leicester Comedy Festival in February. Some have been left out or pocket by a few hundred while others have lost thousands despite the success of the event which attracted 100,000 spectators and more than 500 acts this year, including Sir Stephen Fry, Sara Pascoe and Rosie Holt. The BBC reported: “Organisers said they aimed to pay all performers as soon as possible after the event, which ran from 4 to 22 February, but added the delay was due to cashflow problems that they were trying to resolve.” Self-employed tradespeople, freelancers and sole traders can sympathise with the stand-ups.

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