Skip to content
Search AI Powered

Latest Stories

Essar Oil UK seeks more time for VAT payment

Essar Oil UK seeks more time for VAT payment

ESSAR Oil UK has sought an extension of the January deadline for the payment of deferred VAT, saying the recovery of the energy sector from the impact of the pandemic has been “slower than predicted”.

The company, owned by India’s billionaire Ruia brothers Shashi and Ravi owes £223 million to HM Revenue & Customs.


In a statement, Essar Oil UK claimed its discussions with HMRC on a “short extension” of time for its VAT payment are “positive” and the company “looks forward to a resolution soon”.

It entered into a time-to-pay (TTP) arrangement with the tax department for a total of £770m in April 2021. It has already repaid £547m, “leaving a balance of £223 million, as part of the government’s opt-in scheme available to all corporates in the UK”, the company said.

The statement comes amid reports that the Stanlow oil refinery, owned by the company, is on the verge of collapse under huge financial strain.

Unless it finds more cash, it is likely to go into insolvency and be taken on by the Official Receiver to keep the refinery running, The Sunday Times said, citing sources.

It said the government is on alert in case Stanlow collapses and has ruled out a bailout.

With 900 employees and a further 800 contractors on site, the refinery, the second-largest in Britain, accounts for the supply of about a fifth of the country’s road fuel, mainly in northwest England. It also provides aviation fuel to Manchester and Birmingham airports. However, the low demand for fuel during the pandemic as a result of lockdowns and curbs on travel, affected the balance sheet of the company.

Essar invested more than $1 billion (£730m) after it acquired the refinery, based in Ellesmere Port.

However, the company claimed its earnings have turned “positive” and it is in “a much stronger position to weather the continued challenge presented by the pandemic”.

More For You

Boohoo shareholders block Mike Ashley’s bid to join board
Mahmud Kamani

Boohoo shareholders block Mike Ashley’s bid to join board

SHAREHOLDERS of online fast-fashion retailer Boohoo have firmly rejected billionaire Mike Ashley’s attempt to secure a seat on its board. The decision, made at a shareholder meeting on Friday (20), follows a series of heated exchanges between Boohoo and Ashley’s Frasers Group.

A decisive 64 per cent of votes were cast against allowing Ashley and his associate, Mike Lennon, to join Boohoo’s board. Excluding Frasers Group’s 28 per cent stake in Boohoo, nearly all remaining investors voted against the proposal, reported the Financial Times.

Keep ReadingShow less
UK-retail-sales-Getty

Christmas shoppers are seen in Covent Garden on December 6, 2024 in London. (Photo: Getty Images)

Retail sales rise by 0.2 per cent in November after pre-budget decline

UK RETAIL sales increased by 0.2 per cent in November, according to official data, reflecting a modest recovery after October’s decline as concerns about the government’s budget eased. However, the growth was weaker than the 0.5 per cent increase forecast by economists polled by Reuters.

The Office for National Statistics (ONS) reported that the November rise marked the first increase since August. Over the three months to November, sales volumes grew by just 0.3 per cent, the weakest performance since the three months to June. Sales volumes had dropped by 0.7 per cent in October amid caution ahead of Chancellor Rachel Reeves’ tax and spending plan.

Keep ReadingShow less
Budget halted economic growth, Bank of England warns

Bank of England Governor Andrew Bailey reacts during a press conference at the Bank of England in London on Aug 1, 2024.

(Photo by ALBERTO PEZZALI/POOL/AFP via Getty Images)

Budget halted economic growth, Bank of England warns

THE Bank of England has cautioned that the UK economy is stagnating, following measures introduced in chancellor Rachel Reeves’s budget. Businesses are reportedly responding to tax hikes and a higher minimum wage by cutting jobs and raising prices.

Andrew Bailey, the Bank's governor, revealed that growth forecasts for the final quarter of 2024 have been downgraded to "zero." He also stressed a cautious approach to reducing interest rates, which remain at 4.75 per cent, citing economic uncertainty. “We need to ensure we meet the 2 per cent inflation target sustainably,” Bailey said.

Keep ReadingShow less
‘UK-India trade sees growth as
payments rise by 121 per cent’

India is increasingly seen as a hub for global business development, according to HSBC

‘UK-India trade sees growth as payments rise by 121 per cent’

BUSINESS activity between the UK and India flourished in 2024, with payments received by clients in Britain from India rising by 121 per cent, according to the latest data from HSBC UK.

The multinational bank highlighted the figures based on its two-way support for businesses within the India-UK corridor this week and said its data on payments and client referrals showed yearon-year growth.

Keep ReadingShow less
Bank-of-England-Getty

A general view of the Bank of England on December 19, 2024 in London. (Photo credit: Getty Images)

Bank of England maintains interest rate amid inflation rise

THE BANK OF ENGLAND (BoE) on Thursday kept its key interest rate unchanged at 4.75 per cent, opting not to follow the US Federal Reserve's recent rate cut, as inflation in the UK sees an uptick.

"We've held interest rates today following the two cuts since the summer," BoE Governor Andrew Bailey said in a statement.

Keep ReadingShow less