2009

Hitesh Patel, partner at KPMG Forensic, warns that 2010 is likely to see a continuation of recent fraud highs:

Richard Hill and Joff Pope of KPMG LLP were appointed on Monday 21st December as administrators of Bristol-based printing and mail marketing company, Formpro Mail Marketing Limited.

David Elms, Head of Media at KPMG considers the outlook for the media sector in 2010:

Chris Woodland, head of telecoms strategy at KPMG comments on the 2010 outlook for the telecom sector:

Commenting on the Society of Motor Manufacturers and Traders (SMMT) production figures out this morning, Marc Summers, auto director at KPMG, says:

"The latest SMMT production volumes show another increase year on year. Both production and retail sales in the UK have ended 2009 as the lowest for ten years but nevertheless have held up better than many would have predicted as we entered 2009."

The last ten years could well become known as the "lost decade” for pensions, according to a new KPMG report.

Despite the closure of a number of defined benefit pension schemes among some of the UK's largest corporations, smaller, medium-sized companies remain committed to employee- sponsored retirement packages, according to a survey by KPMG in the UK.

Jon Gorrie, director at KPMG comments on the need of local authorities to put sustainability on their agenda:

Sales growth across Britain's leading pub and restaurant groups slid back in November, with month-on-month sales down -7.4% against October.

Stephen Murphy, transaction partner at KPMG, comments on the "Putting the frontline first: smarter government” paper that was published by the government this week:

Allan Graham and Jane Moriarty from KPMG were appointed Joint Administrators over Cavendish Hotels Ltd, Elizabeth Estates (BS) Ltd and Elizabeth Hotels Ltd (the 'Companies') on Tuesday 8th December 2009.

At last night's Financial Times and Mergermarket European M&A Awards 2009, KPMG's Transactions and Restructuring practice scooped the 'Accountancy Firm of the Year' award. 

"While the return to a VAT rate of 17.5 percent as of 1st Jan 2010 is not unexpected, it will still be a disappointment for many in the retail sector who hoped for an extension.

"The Chancellor failed to deliver any new help for the housing industry, which is disappointing. Although the extension of the existing stamp duty relief for properties under £175,000 is welcome, it is unlikely to help the development of private residential property funds, which cannot usually benefit from the relief, or the other lower rates, when they buy several properties together.”

Richard Threlfall, UK head of infrastructure and projects at KPMG, comments on the Chancellor's announcement to create Infrastructure UK:

Electric vehicles to help rescue UK auto suppliers whilst helping businesses become greener

"The Chancellor's decision to restrict higher-rate tax relief on pension contributions for people with incomes over £150,000 from April 2011 was already flagged but employer pension contributions will now be included in the restrictions".

HMRC support vital to companies in corporate "accident and emergency"

"The announcement that the chancellor is freezing the inheritance tax nil rate band at £325,000 means the IHT headache is returning for middle England householders".

Deferral of corporate tax rate scheme to impact 850,000 businesses

Penalties to increase dramatically after 4 January

KPMG Chief Economist Andrew Smith; "no magic wand"

Commenting on Alistair Darling's announcement of a 50% one-off levy for banker bonuses over £25,000, Jill Storey, People Services Tax Partner at KPMG LLP.

"Chancellor's weapon of choice is butter knife rather than an axe” says KPMG

"Today's announcements were generally good news for the UK Oil & Gas industry". 

David Kilshaw, personal tax partner at KPMG, comments on today's surprise announcement of a further 0.5% rise in NI rates from April 2011.

"The Chancellor's policy of protecting 'front-line public services' comes with a hefty price for public sector workers".

Companies signed up to Climate Change Levy will see bills rise by 1.5%

"The Chancellor placed energy centre-stage in his pre-budget report but it was not all good news".

Businesses in the capital are the most optimistic they have been in 18 months about prospects for the coming half-year, though they remain cautious about future investment and divided about London's longer-term status as a world city, a CBI / KPMG survey reveals today (Wednesday).

 UK retail sales values rose 1.8% on a like-for-like basis from November 2008, when sales had dropped 2.6%, due to turmoil in financial markets hitting consumer confidence. On a total basis, sales rose 4.1% against a 0.4% decline in November 2008.

Initial results from the latest KPMG annual survey of the UK's tax competitiveness suggest that Britain is still at risk of losing some of its largest businesses because of the way in which they are taxed here.

Andrew Hine, head of KPMG's health advisory practice, was crowned 'Business Adviser of the Year' at last night's IB Consulting Awards (Institute of Business) in London. KPMG business adviser Rakesh Majithia was also named as a finalist in the 'Management Consultant of the Year' category. The Awards celebrate the achievements of those in the management and business adviser industry. The judges are drawn from across the public and private sector.

Jane Moriarty and Myles Halley of KPMG were last night appointed joint administrators of Escada (UK) Ltd, a wholly owned subsidiary of Escada AG, the global luxury apparel brand.

Two KPMG Procurement Advisers # Richard Berry and Iain Kirwan # have been named in the Chartered Institute of Purchasing and Supply's ('CIPS') 'Top 35 professionals under 35'list, published in today's Supply Management magazine.

Individual taxpayers, particularly those in the higher earnings brackets, will be eyeing next week's pre-budget report a little nervously, according to KPMG in the UK.

A new KPMG White Paper launched today, challenges the theory that content is the only valuable commodity companies need to consider when developing their online and digital propositions.

UK manufacturers are expecting business activity to rise over the coming year making them the most optimistic group across Europe, according to KPMG's Global Business Outlook Survey*

The joint administrators of First Quench Retailing ("First Quench”), which trades as Threshers, Wine Rack, The Local, Haddows, Bottoms Up and Victoria Wine, have announced the closure of a further 391 stores, resulting in 2,140 redundancies. 

Commenting on the release of Sir David Walker's final report, "Corporate Governance in UK banks and other financial institutions”, published today by HM Treasury, Julian Morgan, Associate Partner, Risk and Regulatory Services at KPMG LLP said:

Mark Harding, Intellectual Property Director, KPMG comments on the measures announced in the Digital Economy Bill today to tackle online infringement of copyright:

Mike Steventon, Partner with KPMG's automotive group comments on the latest SMMT figures.

Global survey shows costs and volumes of data are the main concerns for lawyers

The creditors of Blacks have today voted through the company voluntary arrangement (CVA) proposal, which sets out a financial compromise between landlords of the unoccupied stores and the company.  To come into effect, a CVA has to be approved by 75% of creditors.  In the event, the Blacks CVA was voted through by 98%.

The joint administrators of First Quench Retailing ("First Quench”), which trades as Threshers, Wine Rack, The Local, Haddows, Bottoms Up and Victoria Wine, have announced the closure of a further 381 stores.

Jonathan Thompson, KPMG's global head of real estate and building, comments on the recent recovery of the commercial property sector.

The City Academy in Hackney won the school Innovation in Student Engagement award at the Excellence in Building Schools for the Future (BSF) Awards last week.

KPMG in the UK has won two accolades in the Accountancy Age Awards, presented last night in London.

Leading UK pub and restaurant groups saw a healthy +2.8% increase in like-for-like sales in October. It was the largest monthly increase since Easter.

Retail sales in central London in October were 4.2% higher on a like-for-like basis than a year ago, when sales had fallen 2.6%, as financial turmoil hit consumer confidence - especially in the City.

Despite the deepest recession in sixty years, the global construction industry is surprisingly upbeat and positive about its future prospects, according to KPMG's 2009 KPMG's global construction survey.

KPMG welcomes the publication today of IFRS 9 Financial Instruments.

KPMG's analysis of the latest official insolvency figures from the Ministry of Justice** show that nationally, the three months ended 30 September 2009 saw a substantial increase of 18% in the number of people making themselves bankrupt in England and Wales compared to the same quarter of last year.

The joint administrators of First Quench Retailing ("First Quench”), which trades as the Threshers, Wine Rack, The Local, Haddows, Bottoms Up and Victoria Wine brands, have announced a further 35 redundancies at head office today.

Jim Tucker, Richard Heis and Allan Graham of KPMG have today been appointed joint administrators of Aero Inventory plc, the AIM-listed aircraft parts wholesaler, together with its subsidiary Aero Inventory (UK) Limited ("the Companies”).

Earlier today, in the High Court, Mr Justice Henderson sanctioned 48 Schemes of Arrangement in relation to The Trimark 1968 and Prior Years Pools Schemes (The Trimark Pools Schemes).

From 6 April 2010 high earners will have to pay half of their income in tax as the new 50% tax rate takes effect.

Employer survey shows government 'faces uphill struggle' to promote effective action on closing gender pay gap

- UK retail sales values rose 3.8% on a like-for-like basis from October 2008, when sales had fallen 2.2%, due to turmoil in financial markets hitting consumer confidence. On a total basis, sales rose 5.9% against a 0.1% decline in October 2008.
- Food sales growth slowed further, largely reflecting lower food price inflation. Clothing and footwear showed stronger growth than in September, but against a weak October 2008. Homewares and furniture sales also showed good gains, helped by some improvement in consumer confidence and the housing market. But the gains were against even larger declines a year ago.
- Non-food non-store sales (internet, mail-order and phone sales) in October were 18.0% higher than a year ago compared with 11.9% in September. The faster growth rate in October than in September was in line with the improvement in store sales. Postal strikes prompted some online retailers to switch to other delivery services.

Councils should set self-imposed targets to reduce expenditure by around 20% by 2011.

UK employment prospects will deteriorate less slowly in the final quarter of 2009 than at any time since the start of the recession in spring 2008.

Following the news that HMRC has extended the 15 percent VAT rate for New Years Eve retailers, including the telecommunications sector, to 6am on 1 January 2010, Amanda Tickel, Telecom Partner at KPMG commented: 

KPMG welcomes the publication today by the IASB of the Exposure Draft (ED), Financial Instruments: Amortised Cost and Impairment.  This is part of the phased project to replace the existing standard on recognition and measurement of financial instruments.

The joint administrators of First Quench Retailing ("First Quench”), which trades as the Threshers, Wine Rack, The Local, Haddows, Bottoms Up and Victoria Wine brands, have announced the closure of 373 stores, resulting in 1,738 redundancies.

The City Academy, Hackney was officially opened by Ian Luder, Lord Mayor of the City of London, on Wednesday 4 November.  The Academy is jointly sponsored by the City of London and KPMG.

Marc Summers, auto director at KPMG, says:

"New car registrations were up 31.6% in October to 168,942 units and year-to-date registrations were 1,685,981, down 12.3%. It is the fourth month of growth in a row, thanks in part to the Scrappage Incentive Scheme (SIS)."

Blacks Leisure Group plc ("Blacks”) has announced today a company voluntary arrangement (CVA) proposal. Blacks runs approximately 392 stores across the UK and Ireland, trading primarily as Blacks and Millets.

KPMG Associate Partner Rakesh Majithia has been awarded the 'Outstanding Achievement' Award by the Management Consultancies Association ('MCA'). Two KPMG advisers were runners-up at the Awards, which recognise and celebrate excellence in management consultancy.

Danny Clark, Head of Insurance Accounting at KPMG and author of the firm's recently launched Insurance Reporting Roundup, comments on how financial reporting may be affecting the bottom line for insurers:

KPMG's second annual cash survey has found that UK companies have pushed cash generation up the agenda in response to the changing demands of analysts, lenders and ratings agencies.

Richard Fleming, Mick McLoughlin and Ian Corfield of KPMG have been appointed joint administrators to First Quench Retailing ("First Quench”), the off licence retailer, which operates 1,202 Threshers, The Local, Wine Rack, Bottoms Up, Victoria Wine and Haddows branded stores across Scotland, England and Wales and employs 6,283 people.

KPMG's Restructuring team has received an award for its work at ,JJB Sports at the annual national Insolvency & Rescue awards, which named the JJB turnaround the Business Rescue of the Year (> £51m turnover).

The joint administrators of Sandcity Limited, the boardwear subsidiary of Blacks Leisure Group plc, have today announced the transfer of four of the leasehold store premises to O'Neill (UK) Limited.

On Friday 23 October 2009 Kevin Mawer and Richard Hill from KPMG's Restructuring practice were appointed Joint Trustees in Bankruptcy to Simon Morris, the Leeds property developer who was declared bankrupt on 12 October 2009.

KPMG Forensic has recruited Nigel Layton, founder of the specialist corporate investigations company Quest, as a director in its Corporate Intelligence team.

"Car production fell by 16.1% in September, leaving suppliers exposed. About 90 percent of cars purchased through the scrappage scheme are imported vehicles and, accordingly, the scrappage scheme has provided little benefit to UK car assemblers and component suppliers."

KPMG administrators have today (23 October 2009) achieved a going concern sale of the retail arm of Bolton based aquatic products supplier, Britain's Aquatic Superstore, saving 14 jobs.

The KPMG/Synovate Retail Think Tank (RTT) has unveiled its latest Retail Health Index (RHI) evaluation.

An urgent need for more revenue is pushing many governments into active moves to increase the tax take from indirect taxes, and a worldwide broadening of the tax base for corporate income taxes, KPMG International's latest annual survey of tax rates affecting business has found.

Blair Nimmo and Gary Fraser of KPMG Restructuring were appointed as Joint Administrators of Manor Oak (PMG) Ltd, on Thursday 15 October 2009.

Britain's leading pub and restaurant groups are continuing to trade positively despite predictions that the eating and drinking-out market would be one of those hit hardest by pressure on consumer spending.

Latest figures on management buy-outs completed in the last three months have shown continuing low levels of activity with half of the deals involving some element of distress, according to research by KPMG.

Total liabilities of the UK non-life run-off market increased by approximately 30% to an estimated £37.4 billion in 2008, up from £28.3 billion in 2007. This equates to 18 percent of the non-life market as a whole, according to the seventh KPMG Run-Off Survey of non-life companies.

- UK retail sales values rose 2.8% on a like-for-like basis from September 2008, when sales had fallen 1.5%, due to turmoil in financial markets hitting consumer confidence and very wet weather. In addition, Bank Holiday Sunday and Monday fell in the September trading period in 2009 but not in 2008. On a total basis, sales rose 4.9% against a 1.0% gain in September 2008.
- Food sales growth slowed further, largely reflecting lower food price inflation. Clothing and footwear picked up and homewares and furniture sales also rose above last September's very weak levels, helped by some improvement in consumer confidence and the housing market.
- Non-food non-store sales (internet, mail-order and phone sales) in September were 11.9% higher than a year ago compared with 7.9% in August. The faster growth rate in September than in August was in line with the pick-up in store sales. Postal strikes are now a serious concern for online retailers.

The corporate bond market has opened up to even sub investment grade and unrated companies in recent months. Neill Thomas, Head of Debt Advisory at KPMG comments:

KPMG has appointed Alex Plavsic as the new Head of its UK Forensic practice. Alex takes over from Adam Bates, who has become the firm's UK Head of Risk & Compliance and remains Global Chairman of Forensic.

Stephen Murphy, Partner at KPMG, comments on the proposed sale of government assets:

Only 11% currently pay for online media content.
People across the UK are still consuming more traditional TV, radio and newspapers than new online media, according to KPMG's first Media and Entertainment Barometer, launched today, but with the rate of new media growth, this may not remain the case long term.

Nearly half a million pounds raised in first year of the two year relationship

KPMG has raised £482,000 through fundraising events across the country in its first year supporting staff selected charity, Alzheimer's Society - and is targeting reaching at least £1 million by the end of the second year, making KPMG the largest supporter of its kind in the history of the Society.

KPMG today announces the appointment of Blair McCallum as a Partner in the European Operational Strategy Group.

The joint administrators of Dams International Limited, one of the UK's leading independent manufacturers and suppliers of office furniture, have today completed a sale of the business and its assets to a team led by the former management.

KPMG has appointed Rachel Campbell as Global Head of People, Performance and Culture (PPC) and a member of KPMG's Global Executive Team. Rachel is currently Head of People for KPMG Europe LLP, a role that she will retain.

The European Union has announced a Community-wide temporary, optional reverse charge aimed at addressing the suspected fraud.

David Crawshaw and Jane Moriarty from KPMG Restructuring are pleased to announce the successful sale of Shendish Manor Limited in Hertfordshire.

Companies in the pharmaceutical sector are set to come under intense scrutiny from tax authorities around the world as they look to safeguard tax receipts, according to KPMG's Global Transfer Pricing Services practice.

Following today's law change, outlawing the practice of using tips to top up salaries to National Minimum Wage, Neal Smith, Tax Manager at KPMG comments on how companies can manage the impact of these changes on salary costs

A decision from the European Court of Justice ("ECJ”) today is likely to trigger tax rebate claims of between half and one billion pounds from UK companies, according to KPMG.

Paul Flint and Brian Green from KPMG Restructuring have today been appointed Joint Administrators to Dams International Limited, one of the UK's leading independent manufacturers and suppliers of office furniture.

- UK pension scheme deficits expected to end the 3rd quarter of 2009 £100bn higher than at the start of the year.
- UK equity market rally improves asset position but liabilities have dramatically worsened driven by large falls in bond yields.
- Situation for individual companies will depend on investment strategies: those who held their nerve and stayed with equities likely to be better off than those who adopted a defensive position, moving into bonds.

At the end of the 3rd quarter of the year, despite the recovery in the UK equities market, pension scheme deficits under company accounting standards have grown by around £100bn since the beginning of the year.

This autumn will be a critical period for many hotel companies, predicts KPMG, as the sector faces the drop off in summer leisure spend and looks for a much needed return of corporate and events business. Richard Hathaway, KPMG's Head of Travel, Leisure and Tourism comments.

Marc Summers, auto director at KPMG, welcomes the government's announcement today to extend the car scrappage scheme:

Commenting on the Society of Motor Manufacturers and Traders (SMMT) production figures out this morning, Mike Steventon, head of auto at KPMG, says:

Following today's figures from HM Treasury stating that there has been over £100m of film tax relief during 2008/2009 David Nickson, Media Tax Partner at KPMG comments.

Richard Fleming and David Costley-Wood were today appointed administrators to Sandcity Ltd ("Sandcity”), the boardwear subsidiary of Blacks Leisure Group plc.

Commenting on today's release of the European Commission's proposed approach for the financial supervision of banks, insurers and securities markets, Marcus Sephton, Head of Regulatory Services at KPMG in the UK.

The administrators of Makin Metal Powders Limited, Paul Flint, Allan Graham and Brian Green from KPMG Restructuring, are pleased to confirm that they have sold the business, preserving all 41 jobs at the firm's base in Rochdale.

The discussion on the need to cut public expenditure has finally hotted up. Only a few weeks ago, the debate was bogged down and going nowhere. Suddenly the floodgates have opened and all three major political parties are now calling for cuts in public spending.

- New or expanded transfer pricing (TP) regulations in Asia-Pacific
- More focus on TP in Eastern Europe and Africa
- Step-up in audit activity in all regions

Many governments around the world are extending and tightening controls over cross-border transactions between companies within the same group, as they look for new sources of tax revenue, a new survey from KPMG's Global Transfer Pricing Services practice has found.

The overwhelming majority of PCT finance directors (84%) say they are not well enough prepared to identify substantial efficiency savings within the NHS, a survey by KPMG and Dr. Foster Intelligence has found.

Blair Nimmo and Tony Friar of KPMG Restructuring were appointed as Joint Administrators of John McGavigan Limited ("McGavigan”) today, 14 September 2009, at the request of the Company's directors

- Retail sales in central London in August were 5.9% lower, on a like-for-like basis, than a year ago, when sales were up 8.6%.
- Retail footfall in August fell further below its year-earlier level. Better weather than last August's downpours meant people often preferred outdoor leisure to indoor shopping.
- Sterling's weakness against the euro continued to attract overseas visitors, but those from the Middle East returned home earlier this year, as Ramadan began earlier.
- Food sales held up, though growth was dampened by lower food inflation. Clothing and footwear weakened and homewares and furniture were generally tough, especially for big-ticket items.

- UK retail sales values fell 0.1% on a like-for-like basis from August 2008, when sales had fallen, hit by very wet weather. On a total basis, sales rose 2.2% against a 1.4% gain in August 2008.
- This August, food sales continued to do better than non-food. Food sales growth edged up only slightly from July's low. Clothing and footwear weakened further. Homewares and furniture sales fell back below year-earlier levels after July's weather- and clearance driven growth.
- Non-food non-store sales (internet, mail-order and phone sales) in August were 7.9% higher than a year ago, the weakest since May

Paul Flint and Brian Green, of KPMG's Restructuring practice were yesterday (1 September 2009) appointed as Joint Administrators to Bolton based aquatic products retailer, Britain's Aquatic Superstore.

- Legacy business, low interest rates and liquidity constraints impact performance
- Many societies remain well-capitalised
- Expect a small number of mergers in the coming months

2008 has been a tumultuous year for the building societies sector finds KPMG's nineteenth annual Building Societies Database, which, through a series of statistical tables, ratios and rankings, summarises the financial performance of all current UK building societies as of April 2009. While most societies have remained profitable and many have grown, there have been some notable failures. In the near future, UK building societies face challenges around profitability, funding and capital strength.

Britain's leading restaurant and pub operators are trading positively - despite fears of a drop-off in out-of-home consumer spending.

British banks, concerned with the restructuring of substantial commercial real estate losses, are delaying loan enforcement; waiting for market recovery and considering special vehicles to work out the losses, according to KPMG's real estate restructuring team.

- Retail sales in central London in July were 2.2% higher, on a like-for-like basis, than a year ago, when sales were up 5.8%.
- Retail footfall in July fell back below its year-earlier level, hit by the wettest July on record and many clearance sales coming to an end.
- Sterling's weakness against the euro continued to attract overseas visitors, especially those from western European countries. Middle Eastern visitors were more numerous, coming before Ramadan.
- Food, clothing, footwear and outdoor living slowed as the wet weather turned minds to indoor items such as homewares and furniture.

KPMG's analysis of the latest official insolvency figures from the Ministry of Justice** show that, nationally the 12 months ended 30 June 2009 saw a substantial increase of 22 % in the number of people making themselves bankrupt in England and Wales compared to the same quarter of last year.

The partners of KPMG CIS (Commonwealth of Independent States) and KPMG Turkey have overwhelmingly voted to join KPMG Europe LLP ('ELLP') alongside the UK, Germany, Switzerland, Spain, Belgium and the Netherlands.

- UK retail sales values rose 1.8% on a like-for-like basis and 3.6% on a total basis, from July 2008, when sales had fallen, hit by changeable weather. Thus this July was slightly stronger than June, but the growth was against a weaker July 2008.
- Food sales growth slowed, partly reflecting lower inflation. Homewares and furniture benefited from clearance discounts and the wettest July on record, which turned minds to indoors after June's heatwave. Clothing sales also slowed despite a good start to new autumn/winter ranges.
- Non-food non-store sales (internet, mail-order and phone sales) in July were 20.0% higher than a year ago, also benefiting from clearance sales.

The pace of deterioration in UK job prospects is starting to slow this summer as private sector demand for staff begins to stabilise following a surge of redundancies earlier in the year. Not only are far fewer employers expecting to make staff redundant but the scale of planned redundancies has also reduced.

UK companies risk falling foul of anti-bribery and corruption rules, according to a new report by KPMG Forensic

The summer 2009 KPMG Business Outlook Survey, which surveys over 3,700 manufacturing firms across the EU, shows returning confidence across the manufacturing sector, but sentiment remains much weaker than pre-crisis levels.

The summer 2009 KPMG Business Outlook Survey, which surveys around 1,800 manufacturing sector firms across the BRIC region (Brazil, Russia, India and China), highlights a strong and broad-based rebound in sentiment following the drop seen in the aftermath of the financial crisis.

Richard Fleming, UK head of restructuring, KPMG, said:

Ian Corfield and Myles Halley of KPMG Restructuring have yesterday announced the sale of the assets and business of EPL Access Ltd which had been placed into administration on 2nd July 2009.

Mark Firmin and Howard Smith of KPMG's Restructuring practice have been appointed (on 5 August 2009) as Joint Administrators of Gateshead based HFW Plastics.

The administrators of specialist business forms printer Ward Knowles Limited have completed a sale of the business and assets of the firm's Oswaldtwistle site to Paragon Group UK Limited. The deal preserves a total of 66 jobs at the site in Lancashire.

Commenting today on the "Energy Security: a national challenge in a changing world' report, Andy Cox, Energy Partner at KPMG said :

Key Points

- Smallest decline in vacancies since August 2008.
- Further marked rise in candidate availability.
- Weaker falls in permanent salaries and temp pay rates.

The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs - published today - provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.

Some of the leading private sector providers have voiced their fears that much needed investments in infrastructure projects are being threatened by a lack of vision and planning by government.

The global brand of sportswear maker Canterbury of New Zealand has been sold to JD Sports Fashion plc ("JD”), in a deal brokered by KPMG Corporate Finance.

KPMG congratulates its trainees who passed the Institute of Chartered Accountants of England and Wales (ICAEW) Professional Stage examinations in the June 2009 sitting.

HM Treasury announced yesterday that all supplies of emissions allowances within the UK will be VAT zero rated from today. This means that whilst VAT is no longer due on UK carbon credit transactions, businesses retain the right to recover VAT they incur on their associated costs. This is an interim measure that will remain in force pending implementation of an EU-wide solution.

Myles Halley and Finbarr O'Connell from KPMG were today appointed administrators to furniture store LOMBOK and have announced the sale of the trading name and assets to a financial consortium led by Privet Capital and Paradigm.

Paul Flint and Brian Green from KPMG Restructuring in Manchester have today been appointed Joint Administrators to the specialist business forms printer, Ward Knowles Limited.

Arab Investments Ltd has today completed the acquisition of Coffee Republic with administrators KPMG.

* KPMG appointed to review and select a delegated Chief Investment Officer for MNOPF * Review marks the second phase of MNOPF's move to implemented

The EW Payne Pools Schemes will close following the payment of all Established Liabilities just 12 months after being sanctioned, the Scheme's Advisers from KPMG have announced today.

The KPMG/Synovate Retail Think Tank (RTT) has unveiled its latest Retail Health Index (RHI) evaluation.

Britain's leading restaurant and pub operators are continuing to hold their own despite tough trading conditions. Aggregated figures from 13 major groups show that like-for-like sales in June were ahead 0.4% on the same month last year.

Over 160 cases of serious fraud with charges in excess of £100,000 came to UK courts in the first half of this year, according to KPMG Forensic - the highest number of cases in a six month period in the 21 year history of its Fraud Barometer.

KPMG Forensic has become the first Forensic practice in the UK to require its partners and staff to attain the Accredited Counter Fraud Specialist (ACFS) anti-fraud qualification.

Companies are planning further cuts of up to 25 per cent in the next couple years, having already done the 'easy bit' by trimming costs and curbing discretionary expenditure, according to a survey by CFO Europe Research Services for KPMG.

Jane Moriarty and Richard Hill of KPMG, the joint administrators of Barnsley House Limited, have announced the sale of Barnsley House Hotel and The Village Pub.

- UK retail sales values rose 1.4% on a like-for-like basis and 3.2% on a total basis, from June 2008, when sales had been hit by cold wet weather.
- Food sales growth edged up further, helped by the heatwave. The hot sunny weather, together with clearance sales, also boosted clothing, footwear and outdoor leisure but big-ticket homewares and furniture sales remained difficult.
- Non-food non-store sales (internet, mail-order and phone sales) in June were 16.8% higher than a year ago, also benefiting from the heatwave and clearance sales.

David Costley-Wood and Brian Green from KPMG Restructuring have today been appointed Joint Administrators to Canterbury Europe Limited, the European trading arm of the Canterbury Group which distributes branded sports and leisure wear, predominantly for the rugby union sector.

The investment industry and Her Majesty's Revenue and Customs (HMRC) have reached a compromise on the use of Unique Tax Reference Numbers ("UTRs”).

Public sector managers must take urgent action to reduce costs and improve productivity in order to maintain service quality as the UK public sector is facing a period of austerity that will last for several years, possibly a decade, KPMG warns

Richard Philpott KPMG Restructuring, joint administrator of Quorn Business Travel Ltd based in Thurmaston, Leicester, has announced the sale of the business and assets.

The joint administrators of Coffee Republic (UK) Ltd, Coffee Republic Franchising Ltd and Goodbean Ltd have announced that 10 of the 20 Coffee Republic (UK) Ltd-owned coffee bars have now closed, resulting in 66 redundancies.

Research by KPMG's Audit Committee Institute amongst over 100 UK audit committee members has found that the economic downturn has caused them to reappraise many fundamental processes, including the external audit itself.

Key Points

- Weaker declines in permanent and temporary staff appointments.
- Candidate availability continued to rise strongly.
- Further drop in staff pay.

Andy McGill and Richard Philpott from KPMG LLP were today appointed joint administrators of Textile Assemblies in Birmingham, at the request of the directors

Richard Hill and David Crawshaw of KPMG Restructuring have been appointed joint administrators of coffee bar and deli chains Coffee Republic (UK) Ltd, Coffee Republic Franchising Ltd and Goodbean Ltd.

Richard Philpott and Mark Orton of KPMG Restructuring have been appointed joint administrators of Leicester-based corporate event companies THA Group Ltd and Thomas Hannah & Associates Ltd.

Melissa Geiger, partner in KPMG's Tax practice, has been named on Management Today's annual '35 Women Under 35' list, which recognises outstanding young women in business in the UK.

The Committee of European Insurance Supervisors (CEIOPS) last night published 23 consultation papers addressing several areas of detail that were left open in the Framework Directive, which was approved in May of this year. The issuance of these consultation papers follows the release of 12 papers in March (with a new addendum to one of these) and a further 13 already announced for release in November.

Ian Corfield and Myles Halley of KPMG Restructuring have been appointed joint administrators of EPL Access Ltd, a hydraulic access equipment hire business based in Sandy, Bedfordshire.

UK public sector organizations much slower than other countries in making radical changes needed to cope with looming public sector crisis, KPMG survey reveals

Commenting on the Retail Distribution Review consultation paper issued today by the Financial Services Authority

Encouraging figures from Britain's leading restaurant and pub operators show that sales are generally holding up against last year despite the squeeze on consumer spending and increased competition from supermarkets.

- 42 percent of business leaders are confident about their prospects
- 55 percent believe the UK has reached the bottom of the economic cycle
- 23 percent say their banking relationship has worsened

The mood of those leading British businesses has lifted from the rock bottom reached this spring.

The investment management industry should work to rebuild trust with investors through a 'back-to-basics' client relationship approach, combining improved communication and education, increased knowledge sharing, and a bolstering of corporate governance and risk management transparency, contends a new investment management report entitled: "Renewing the promise: Time to mend relationships in investment management”.

Richard Fleming and Paul Dumbell from KPMG Restructuring have today been appointed Joint Administrators to F.E. Mottram (Non Ferrous) Limited, the Congleton-based manufacturer of secondary aluminium products.

Almost half of UK council leaders and chief executives are planning to cut jobs in the next 18 months, a joint KPMG/Total Politics survey has revealed. According to the research 43% of council leaders and 57% of chief executives say that major headcount reductions are very likely.

But action is required to tackle obsolete retail property

Commenting on last night's announcement by the Insolvency Service that it has opened up consultation on proposed reforms to the insolvency regime

Skills shortages could hamper London's economic recovery as four in ten of the capital's businesses still say they have problems finding the right talent, despite rising unemployment, a CBI / KPMG survey revealed today.

Following the announcements in today's Digital Britain Report KPMG comments on some the impacts of some of Lord Carter's announcements:

KPMG has appointed Graham Jung as a Director in its Investment Advisory practice, where he will be primarily responsible for providing strategic investment advice to institutional clients. Graham will be based in London and will report to Patrick McCoy, Head of Investment Advisory for KPMG LLP in the UK.

The Company Voluntary Arrangement (CVA) for East Yorkshire caravan retailer Discover Leisure plc's main trading subsidiary, Signlease Ltd, has been passed at a creditors' meeting in Leeds today.

- UK retail sales values fell 0.8% on a like-for-like basis and rose only 0.8% on a total basis, from May 2008, when sales rose strongly in the sunny weather.
- Food sales slowed after a strong Easter boost in April. Clothing and footwear fell below last May's strong sales while big-ticket homewares and furniture sales remained difficult.
- Non-food non-store sales (internet, mail-order and phone sales) in May were 7.6% higher than a year ago, thus following the month's slowdown in store sales.

Insurance executives expect growth in next 12 months, according to KPMG survey

Mark Firmin and Myles Halley from KPMG Restructuring have today been appointed Joint Administrators of Modus Corovest (Blackpool) Limited.

Key Points

- Contractions in permanent placements and temporary billings continued to ease.
- Candidate availability continued to rise at a strong rate.
- Further reductions in average pay for both permanent and temporary staff.

Richard Fleming, Brian Green and Paul Dumbell from KPMG Restructuring have today been appointed Joint Administrators to Manchester-based Modus Ventures Limited, the commercial property and development group. The group owns in excess of 40 companies across the UK, the majority of which are in the retail property development sector.

The latest CIPD/KPMG Labour Market Outlook report highlights a jobs market sure to strike fear into school-leavers and graduates taking first steps into the jobs market. The labour market outlook looks set to be fraught for all young people, with nearly half (45%) of UK companies not planning to recruit from either of these groups

KPMG has announced the appointment of a new director to head up its restructuring real estate specialist team. Edmund O'Kelly, who has extensive experience in the market, has worked in many types of roles including project management, development, investment and asset management for over 20 years.

KPMG's Restructuring practice which comprises over 750 staff in the UK, and over 1,000 across Europe, has appointed two new Partners and one Director to the UK firm. Marykay Fuller and Nick Smith have been promoted to Partner, while Lloyd Gold joins KPMG as a Director.

Analysis by law firm Mishcon de Reya and KPMG shows that corporate data theft cases in the UK have doubled between 2006 and 2008.

Richard Hill and Jane Moriarty of KPMG have been appointed joint administrators of Portland Spa Limited and Southwell Estates Limited.

David Crawshaw & Jane Moriarty of KPMG have been appointed joint administrators of Shendish Manor Limited on 14th May 2009.

Students in English secondary schools that have been modernized using the Private Finance Initiative scheme (PFI) achieve improved results faster than state sector schools that have been rebuilt traditionally, a report by advisory firm KPMG reveals. The study claims that the rate of improvement in student attainment is 44 percent higher in those attending PFI schools.

- UK retail sales values rose 4.6% on a like-for-like basis and rose 6.3% on a total basis, from April 2008, when sales were very weak in the cold wet weather after Easter fell in March.
- Easter falling in April this year but in March last year, together with warm sun this April but cold and rain last April, make comparisons difficult.
- Easter and the warmer weather boosted both food and non-food sales. In non-food, clothing, footwear and outdoor leisure showed the best growth but big-ticket homewares and furniture sales remained difficult.
- Non-food non-store sales (internet, mail-order and phone sales) in April were 12.5% higher than a year ago, thus following the month's uplift in store sales.

Advisors from KPMG have helped to design the government sponsored trade credit insurance scheme announced in the recent Budget. The scheme was established in response to growing concern from businesses that reductions in the value of insurance cover create pressure on suppliers to shorten payment terms, and can place additional pressure on businesses' working capital facilities.

The latest EU Services Business Outlook survey, which surveys around 2,500 service sector firms across the EU, provides signs that the economic crisis in the region may abate over the next twelve months. That said, most survey variables remained at historically weak levels

The jobs market will continue to shrink in the next three months as the number of employers planning to make redundancies continues to exceed the number of employers planning to hire according to the CIPD/KPMG Labour Market Outlook, a survey of more than 500 employers. The key indicator in the quarterly report covers net employment intentions, and this quarter the figure has fallen to another record low of -19, down ten points compared with the winter quarter.

- Angus Wilson joins as a tax partner in the Infrastructure Tax Group from Babcock and Brown
- Darren Mellor-Clark joins as Associate Partner in the Indirect Tax practice from UBS
- Lydia Simpson joins the Tax Legal Services practice as a Senior Manager from Nabarro LLP

KPMG's UK tax practice has made three strategic senior appointments to growth areas of its business. Angus Wilson joins as a tax partner in the Infrastructure Tax Group from Babcock and Brown, Darren Mellor-Clark joins as Associate Partner in the Indirect Tax practice from UBS and Lydia Simpson joins the Tax Legal Services practice as a Senior Manager from Nabarro LLP.

Ian Corfield and Jane Moriarty from KPMG Restructuring were appointed Joint Administrators of Empire Interactive Europe Limited ("Empire") on 1 May 2009

Jane Moriarty and Richard Hill of KPMG have today been appointed joint administrators of Barnsley House Limited, which incorporates Barnsley House Hotel, The Village Pub and The Catherine Wheel pub.

KPMG in the UK has announced it will make an additional distribution of some $60 million to creditors of the insolvent Sovereign Marine & General Insurance Company Limited (Sovereign)

Commenting on the announcement of the Insolvency Services' corporate insolvency quarterly statistics today

Boris Johnson's greatest impact after a year as London Mayor has been in improving the capital's reputation as a place to do business, but he needs to work harder on the city's quality of life, skills shortages, and housing needs, London business leaders said today

According to figures released by the Insolvency Service today, 30,253* people went into bankruptcy or entered into an Individual Voluntary Arrangement (IVA) in the quarter ended 31 March 2009, an increase of 22.9 percent compared to the same quarter in 2008 and a record for any quarter since records began.

KPMG has won two awards for Overall Best Private Sector Project and Change Management (Private Sector) for work done with APACS, the UK payments trade association, on the UK's Faster Payments initiative to deliver same-day payments to consumers.

The JJB creditors have today voted through the company voluntary arrangement (CVA) proposal, which sets out a financial compromise between landlords of the unoccupied stores and the company. The remaining creditors have not been asked to compromise financially but have been asked to move to a monthly payment schedule for 12 months.

- Focus on business strategy impacts
- Conduct critical gap analysis
- Secure senior management buy in for implementation and cultural change

The Solvency II Framework Directive has now been passed by the European Parliament and the meeting of ECOFIN on 5 May is also expected to approve the regulation.

Andrew Smith, KPMG Chief Economist said:
"The Budget projections look like a triumph of hope over experience. Despite having to drastically downgrade his forecast for growth this year, the Chancellor still expects the economy to rebound over the next two years.

Commenting on today's announcement Tom McGinness, Head of Middle Markets in London at KPMG said:

Charles Beer, KPMG Tax Partner said:
"For the real estate sector this budget is a big missed opportunity to encourage the development of the residential rented sector.

Commenting on today's announcements on green energy, Derrick Parkes, energy tax partner at KPMG said

Commenting on today's budget announcement on the 'scrappage scheme', Mike Steventon, partner at KPMG in the UK said:

Commenting on today's announcement that HM Treasury will release a paper which will endorse the regulation of "all important institutions including hedge funds”, Tom Brown, Head of Investment Management, KPMG Europe LLP, said:

Commenting on today's announcements on onshore wind planning, Andy Cox, energy partner at KPMG, said:

The chancellor has today announced plans to remove VAT on participation fees for playing bingo, whilst simultaneously increasing the rate of bingo duty to 22%.

Banks need to plan response to new capital, liquidity and funding regime

Commenting on the Chancellor's commitment today to the rollout of country wide Next Generation Networks David Woodward, Head of Capital Allowances said:

Commenting on today's announcement, Frank Sangster, Head of Environmental Tax and Incentives Group at KPMG said:

Commenting on today's Budget announcement Carolyn Steppler, associate partner in personal tax at KPMG in the UK, said:

Commenting on what today's budget holds for big business, Sue Bonney, head of tax at KPMG Europe, said:

Commenting on today's Budget, which includes the adoption of the measures of the investment versus trading consultation paper, Rachel Hanger, Investment Management Tax Partner, at KPMG, said:

Alan Downey, KPMG's Head of Public Sector business, said:
"The Budget may be luring the public sector into a false sense of optimism and complacency

Commenting ahead of the Budget on 22 April, Andrew Smith, chief economist at KPMG in the UK said:

The European Parliament is expected to adopt the revised Solvency II Framework Directive for the insurance industry when it meets on 20 and 21 April, 2009. Commenting in advance of this, Phil Smart, KPMG's Head of Solvency II in the UK, said: "The waiting is nearly over and the insurance industry has run out of excuses; Solvency II must take its place at the top of the industry's agenda given that it affects every facet of an insurer's business."

The past year has seen the issue of UK tax competitiveness hit the headlines with a number of companies quitting the country citing tax reasons as their main motivation for moving.

- Boost labour intensive service sectors, such as pubs, restaurants and building services by significantly reducing VAT rates
- Temporarily remove the Payment on Account regime for large businesses
- Waive the default surcharge for late VAT payments arising out of the credit crunch problems - just charge interest instead

This year's budget will be a tricky balance for the Chancellor and the government. There is an urgent need to support business and consumers, but huge pressure on public finances, limiting the potential for fiscal stimulus.

KPMG administrators of Apollo 2000 have concluded a sale of the businesses assets and the brand to Hughes Electrical, based in East Anglia. Hughes has a portfolio of 34 retail outlets and 5 service depots across East Anglia and has concluded this transaction with a view to major expansion into the Midlands.

On 7 April 2009, JJB Sports plc and Blane Leisure Limited announced an update in relation to proposed Company Voluntary Arrangements.

Key points:

- Slower declines in permanent and temporary appointments.
- Candidate availability continued to rise at a rapid pace.
- Further reductions in permanent and temporary staff pay.

Summary:
The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs - published today - provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.

Paul Flint and Brian Green from KPMG Restructuring in Manchester have been appointed Joint Administrators of Whiterigg Alpines Limited, the Chorley-based grower and supplier of alpine rockery plants.

KPMG has appointed Michael Crawford as Associate Partner to the Financial Risk Management group where he will lead the insurance risk, governance and capital team covering Life, General Insurance and Bancassurance. In addition, he will have responsibility for co-leading the firm's Solvency II services in the UK. Crawford will be based in London and will report to Jane Leach, Partner, Financial Services Head of Risk for KPMG in the UK.

Approximately 60 percent of UK consumers would rather watch adverts in return for free online content, than pay for it, according to KPMG's third annual global Consumers and Convergence survey.

Ian Corfield and Jane Moriarty of KPMG Restructuring were yesterday appointed joint administrators of Two Right Feet Limited.

On Tuesday 31 March 2009, Jim Tucker and John Hansen of KPMG were appointed joint administrators of Visteon UK Ltd (VUK).

Upon the application of the Bank of England, the Court of Session has today appointed Richard Heis, Blair Nimmo, Mike Pink and Richard Fleming of KPMG LLP as Joint Building Society Special Administrators of Dunfermline Building Society ("the Society”).

At the request of the directors, Ian Corfield and Richard Fleming were appointed as Joint Administrators to Greencycle plc on 24 March 2009 after the business, which collects and disposes of recyclable waste for local authorities, experienced financial difficulties.

- In the second of a series of announcements looking ahead to the 2009 budget, KPMG suggests changes to the rules on tax losses could throw a potential "lifeline” in the downturn
- Extending the scope for "carrying back” losses against previously paid tax would be a welcome measure but could be costly
- Introducing measures to enable the "sale” of today's losses for cash could help today's struggling businesses at little or no net cost to the Treasury

This year's budget will be particularly challenging for the Chancellor and the government. On the one hand, there is an urgent need for measures to help businesses, the lifeblood of the economy, to survive the severe downturn. On the other, there is enormous pressure on public finances, which limits the potential for fiscal stimuli.

The joint administrators from KPMG Restructuring in Birmingham have announced they will be implementing a strategy to wind down George Carter (Pressings) Limited, despite an initial hope that a going concern sale could be achieved.

Following KPMG's appointment as administrator to Apollo 2000 Limited on 18 March 2009, Will Wright, director within KPMG Restructuring who is leading the team, has issued the following statement in relation to extended warranties purchased by customers.

Jane Moriarty and Myles Halley from KPMG's Restructuring practice were appointed Joint Administrators to Trinity Walk Wakefield Limited today (19 March 2009) at the request of the directors.

The administrators of Original Shoe Company Limited ("OSC”) and Qubefootwear Limited ("Qube”) have announced that they have closed a further eight OSC stores and two Qube stores, resulting in 121 redundancies.

David Sayer, KPMG's Global Head of Retail Banking comments.

Mark Orton and Richard Philpott of KPMG Restructuring have today 18 March 2009 been appointed joint administrators to Apollo 2000 Limited and Arrow Distributors Limited - both part of the Cranham Group plc.

The administrators of Diamonds & Pearls, the high street fashion jewellery retailer, have announced the sale of the business to Diamonds and Pearls 2009 Limited. The sale preserves over 300 jobs and 73 stores.

With bad news abounding in the regional media sector, David Elms, Head of Media at KPMG comments on the need for continued change within regional media businesses.

Non-local job opportunities for British workers in Australia are set to fall by a third over the next three years according to research from KPMG International LLP.

- First quantitative survey of UK non-doms
- One in four non-doms set to quit the UK
- More than 90 percent say tax changes damaged the UK's competitiveness
- KPMG proposes five areas where small changes would simplify the new rules, make compliance easier and improve the UK's attractiveness for non-doms

In what is believed to be the first quantitative survey of UK tax resident non-domiciles, KPMG has unveiled statistical data to support anecdotal evidence of the deep dissatisfaction over recent tax changes* among this community.

The severe effects of the global financial market dislocation are revealed in full-year results for the UK's largest banks.

- UK retail sales values fell 1.8% on a like-for-like basis, and rose only 0.1% on a total basis, from February 2008. On both measures, sales fell back after January's clearance-driven improvement.
- Food sales showed slower growth, partly inflation-driven, and non-food sales fell further below their year-earlier level as January's clearance boost faded. Homewares and big-ticket items were particularly hard hit.
- Non-food non-store sales (internet, mail-order and phone sales) in February were 12.3% higher than a year ago. This continued the slowdown from the 30.0% gain in December.

Professional services firm KPMG has been named the 'Best Big Company to Work For' in the prestigious Sunday Times Best Companies awards, for an unprecedented third time.

- New research shows barriers to savings slowly coming down, as international co-operation on taxes develops
- Transparency and certainty the corner-stones of the emerging framework
- Different tax incentives to encourage saving best targeted at different income groups
- Report includes a full analysis of the tax treatment of different UK savings / investment vehicles from pensions to property

A new wave of co-operation between governments and the global financial services industry is needed if consumers around the world are to be encouraged to save and create a sustainable alternative to the wholesale markets as a source of capital, says a new survey from KPMG's Global Financial Services Tax practice.

Myles Halley and Richard Philpott were today appointed Administrator to Diamonds and Pearls Limited, a high street fashion jewellery retailer.

The British public is continuing to go out to eat and drink, but the UK's leading pub and restaurant chains are having to work extra hard, particularly with promotions, to keep customers coming through their doors.

In a further sign of the deteriorating state of the economy, the latest quarterly CIPD/KPMG survey of 892 employers shows that around two-thirds of UK employers have either experienced an organisational budget cut in 2008 or are about to experience one.

The administrators of Hudson & Middleton Limited, one of the oldest potteries in England, have announced that they have sold the business and its assets to Hudsons Fine Bone China Limited, preserving 22 jobs at the firm's base in Stoke-on-Trent.

The administrators of Jesse Shirley & Son Limited, the Potteries-based supplier of boneash to the fine china industry, have announced that they have sold the business and its assets to Hajco 377 Limited, preserving 40 jobs at the firm's base in Etruria, Staffordshire.

Richard Fleming, David Costley-Wood and Blair Nimmo from KPMG LLP were today appointed administrators to two subsidiaries of JJB Sports plc, Original Shoe Company Limited ("OSC") and Qubefootwear Limited ("Qube").

Ruth Anderson, Vice Chairman at KPMG has been appointed a Trustee to The Duke of Edinburgh's Award (the DofE), a youth charity which supports young people from all over the UK.

Paul Flint and Brian Green of KPMG's Restructuring practice were appointed as Joint Administrators to J Blackburn Ltd, a printing and direct mail business on 16 February 2009 and on 18 February 2009 sold part of the company to the management team.

- Businesses have until 31 March this year to claim up to 24 years worth of overpaid or under-claimed VAT
- Claims can run into millions of pounds
- Many businesses unaware they qualify for these cash recoveries
- Certain sectors particularly affected - eg the automotive sector and companies who ran car fleets in the 1970s, 80s and 90s

Businesses across Britain need to hurry to lodge claims VAT rebates ranging from tens of thousands to several million pounds, or risk missing the 31 March deadline according to KPMG in the UK.

KPMG Forensic has recruited Jamie Carstairs as a director in its energy and infrastructure competition and economics team.

Retail sales in central London in January were 6.5% higher than a year ago, on a like-for-like basis, stronger than the 1.1% increase in the UK as whole.

Businesses may be surprised by the impact of taking risk in their pension scheme investment strategy, says KPMG in their response to the PPF's consultation on the future development of the risk-based levy.

Corby-based Energy Batteries Limited has gone into administration. Mark Orton and Richard Philpott of KPMG Restructuring were appointed joint administrators on 10 February 2009.

KPMG can confirm that in 2005 it investigated allegations made by Paul Moore to HBOS and the Financial Services Authority regarding certain aspects of the internal risk function at the bank.

- UK retail sales values rose 1.1% on a like-for-like basis, and 3.2% on a total basis, from January 2008. By both measures, this was the best performance since May, when sunny weather had boosted sales.
- Food sales showed stronger growth. Non-food sales remained down on a year ago, though by less than in December. Sales were driven by widespread heavy discounting in clearance sales. Despite this clothing, footwear, homewares and health and beauty sales remained down on a year ago.
- After a good start to January, sales growth then weakened as clearances ended. Shoppers took advantage of good deals, but many purchases were replacements and essentials rather than discretionary extras.
- Non-food non-store sales in January were 19.2% higher than a year ago. This was weaker than the 30.0% gain in December, when people increasingly used the internet for their Christmas shopping.

KPMG today announces the appointment of Oliver Tant as UK Head of Audit.

The latest quarterly CIPD/KPMG survey of employers' recruitment and redundancy plans indicates that UK job prospects are deteriorating 'at an alarming rate' while the size of average pay rises is shrinking.

Outlook for EU manufacturing sector turns sharply negative at start of 2009.

The winter 2009 KPMG Business Outlook Survey, which surveys over 3,700 manufacturing firms across the EU, shows confidence in the sector has collapsed in the face of the global economic downturn.

KPMG has appointed Stuart Shepley as Partner in the Insurance Risk and Actuarial Services group where he will have particular responsibility for growing and developing KPMG's non-life insurance risk and actuarial practice across Europe. Stuart will be based in London and will report directly to Tim Roff, Head of Insurance Risk and Actuarial Services for KPMG Europe LLP.

Administrators from KPMG Restructuring were appointed to Bromsgrove-based David Payne Homes Limited by the company's directors on 6 February 2009.

KPMG Restructuring predicts that corporate insolvencies (administrations and receiverships) will rise dramatically in 2009 reaching 5,000 by the end of the year. This compares to 3,225 insolvency appointments in 2008 (to 23 December) and 2,230 in 2007: a 45 per cent increase in appointments from 2007 to 2008, according to KPMG's figures.

Premiership football clubs have paid out more in fees during this year's January transfer window than they did last year, according to analysis by accountants KPMG. However, in a sign that the "credit crunch” is beginning to affect some English league football clubs, a number of Premiership sides have funded this record expenditure by selling players before they have bought.

KPMG has announced the appointment of Adrian Scholtz to lead renewable energy corporate finance activities in the UK and Germany. Adrian has worked in the renewable energy sector for more than seven years and has advised on renewable energy transactions with a market value in excess of €1 billion. Adrian was formerly CEO of Green Peninsula, a company which advised large companies on generating renewable energy.

Key Points

- Demand for staff fell at fastest pace since start of survey in October 1997.
- Candidate availability registered further strong improvement.
- Permanent salaries declined at series record rate while temp pay also fell sharply.

Summary:
The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs - published today - provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.

- Over £1.1bn of fraud comes to court - second highest level in 21 years
- Full impact of credit crunch on fraud is yet to be seen
- Rising company insolvencies heighten fraud alert
- Fraud by managers, employees and customers trebles
- But Government losses to VAT 'carousel' fraud significantly down 

More than £1.1bn of fraud came to UK courts in 2008 according to KPMG Forensic's Fraud Barometer - the highest level recorded since 1995 and the second highest in the twenty-one year history of the survey

- KPMG test claimant, Strathclyde Pension Fund, brings successful legal challenge
- UK Pension funds set to receive over €100m in rebates
- Total cost to the Netherlands tax authorities likely to be around €500m
- A "progressive ruling” which supports the principle of free movement of capital within the EU, according to KPMG

The Dutch tax authorities yesterday issued a ruling which is likely lead to the refund of over €100m to UK pension funds according to KPMG in the UK. The ruling essentially states that the Dutch tax authorities should not have levied a "withholding tax” (WHT) on dividend payments to tax exempt bodies (such as UK pension funds) located within the European Union but outside the Netherlands.

KPMG announced today that its Investment Advisory team has been appointed as advisor to the Trustee of the Home Retail Group Pension Scheme. In addition to ongoing monitoring, KPMG will assist the Trustee with a strategic investment review and investment manager selections.

- Proportion of companies actively considering leaving the UK has more than doubled since 2007
- Dividend exemption unveiled in the pre-budget report welcome but not sufficient to change minds of those thinking of leaving the UK and accompanying debt cap may cause problems
- Further reform of the taxation of foreign profits (especially the 'Controlled Foreign Companies' regime), general clarity of approach and evidence of progress in addressing businesses' remaining tax concerns needed to stem the flow of migrations

The proportion of companies considering leaving the UK has more than doubled since 2007, according to KPMG's third annual survey of the UK's tax competitiveness.

The administrators of Empire Direct, which entered administration on Monday (19 January) have confirmed that customers will not receive goods ordered because the company's terms and conditions state that the customer does not take ownership of goods ordered until delivery or collection. Refunds will not be possible due to Empire Direct's lack of funds when it entered administration. Money paid by customers was put into the company's overdrawn bank account.

More than 500 jobs across the UK have been saved following today's appointment of Richard Fleming and Mark Firmin, from KPMG, as Joint Administrators to national clothing retailer, Greenwoods Menswear.

Administrators from KPMG were appointed to West Midlands-based George Carter (Pressings) on 19 January 2009

- Retail sales in central London in December were 0.7% lower than a year earlier, on a like-for-like basis, stronger than the 3.3% decline in the UK as whole.
- Retail footfall in December was stronger than in the past few months and well up on a year ago, in contrast to the small year-on-year decline in the UK as a whole.
- Early clearance sales and further discounting attracted people into the capital, but UK shoppers were still reluctant to spend. The strong euro boosted Eurozone visitor numbers, who took advantage of the heavy discounting.
- Despite heavy discounting, homewares, clothing and footwear were difficult. Food sales held up, though partly reflecting the effect of high food prices.

Richard Philpott and Allan Graham from KPMG have today been appointed administrators to Jesse Shirley & Son Limited and Hudson and Middleton Limited at the request of the company directors.

Sara Caplan, Associate Partner at KPMG who advises on skills and education comments on the Government's long awaited assessment of the Leitch review published today.

- Members' golf clubs have only until 31 March this year to lodge a claim for up to ten years' worth of VAT paid on non-members' green fees
- The issue is likely to require litigation
- KPMG estimates that a club with annual non-members' income of £100,000 would, if successful, achieve a refund including interest of up to £200,000.

Non profit making golf clubs have the opportunity to claim for thousands of pounds on the net amount of VAT paid to HMRC on non-members green fees but they need to act quickly to protect their position: claims must be submitted by 31 March 2009 for periods 1990-1996. After that date claims will be limited to 3 years. This is not to be confused with a separate issue being pursued in relation to the VAT treatment of membership income.

Mark Firmin and Richard Fleming from KPMG LLP were today appointed administrators to Empire Direct plc and its subsidiary company Empire Property (UK) Limited, at the request of the directors.

HMRC like to remind us that "tax doesn't have to be taxing.” Although professional advisors may disagree with this statement, your tax affairs can certainly be made a lot simpler if you are well organised and take the appropriate care with your tax affairs. The following are some things that may be useful to bear in mind when submitting your Tax Return:

"2009 will be a tough year for general insurers, but not as tough as for other financial services players,” says Mark Winlow, European Head of General Insurance Performance Advisory Services at KPMG.

- UK retail sales values fell 3.3% on a like-for-like basis, and 1.4% on a total basis, from December 2007. By both measures, this was the worst December since the survey began 14 years ago and, barring Easter distortions, the worst performance of any month in that time.
- Food and footwear were the only sectors to show sales up on a year ago - the latter reflecting further heavy discounting. Clothing, furniture and big-ticket homewares fell further below year-earlier levels.
- The first half of December was very tough for many. Christmas buying came later than usual: there were more shopping days in Christmas week this year and shoppers tended to wait for discounts and early clearance sales.
- Non-food non-store sales in December were 30.0% higher than a year ago. This was stronger than the 16.6% gain in November, as people were more confident about Christmas shopping online and several stores had later last order dates than last Christmas.

The legality of the Aggregates Levy was thrown into major doubt at the end of last month by the decision of the European Court of Justice to overturn a previous ruling by the Court of First Instance that the Levy was lawful.

Soaring pension deficits may lead to pension trustees demanding more cash but companies struggling in the downturn may need the funds just to keep the business going, says KPMG.

- Prospective valuations decline significantly across all regions;
- Balance sheet capacity deteriorating;
- KPMG believes its analysis signals a nadir for global M&A deal activity in Q2/Q3 2009 but with deep discounts in valuations in some sectors attracting confident buyers with liquidity.

KPMG Corporate Finance's Global M&A Predictor forecasts that 2009 will see a continued fall in global mergers and acquisitions (M&A) but that deal activity should slowly return late in the year as liquidity improves and attractive value is recognised in certain sectors.

- Material received on landfill site that is put to use on the site rather than going into landfill will no longer be taxed
- Tax rebates for up to three years overpayments available
- KPMG estimates that individual claims could run into millions of pounds

2009 started with some good news for landfill site operators as Her Majesty's Revenue and Customs ('HMRC') announced that it would not be challenging a recent Court of Appeal decision that certain materials entering a landfill site will no longer be subject to landfill tax. The materials in question are used by site operators in maintaining and managing the site.

Investment slowing - and overcapacity increasing

More restructuring, mergers and alliances expected, says KPMG

KPMG's 2009 survey of the global automotive industry says that senior executives expect more companies will go out of business - as revenues and profits continue to fall.

KPMG Europe LLP has appointed Richard Bennison as its next Chief Operating Officer.

- Permanent placements and temp billings fell at series record rates.
- Record rise in candidate availability.
- Average wages and salaries for new placements continued to fall.

The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs - published today - provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.

2009 will see widespread changes to bonus and incentive plan structures as the market seeks to address the perception that earlier bonus practices, in part, contributed to the current financial crisis by encouraging excessive risk taking, says Mike Eckes, Reward Partner at KPMG in the UK.

Businesses across the country are to be encouraged to contribute up to £12,000 a year each, over three years, to help children in schools in their community overcome numeracy problems.