146,000 zombie companies in UK

Eight per cent of UK companies on brink of insolvency.

There are 146,000 "zombie businesses" teetering on the edge of solvency, according to insolvency body R3.

A zombie company is one that is near the point of insolvency but just able to survive – neither failing nor thriving. R3 claims this equates to 8 per ecnt of UK businesses, which are only able to pay the interest on their debts but not tackle payments around the debt itself.

Lee Manning, R3 president, said, "The implication here is that these businesses have been ‘running on empty’ for quite some time now and with no reserves left in the tank, they may not be able to carry on for much longer.

"Essentially, a zombie business is one that is on the edge of insolvency but has been holding on, often for a prolonged period of time. An insolvent business is one that is unable to pay its debts when they fall due, or a business that has debts greater than the value of its assets. The danger for businesses that are teetering on the edge is that any change of circumstances, such as a rise in interest rates, the loss of a major customer, or suppliers upping their prices, will mean that they will not be able to hang on any longer."

R3 identifies three defining features of a zombie company: having to negotiate payment terms with suppliers; struggling to pay debts; and, facing the probability that if interest rates rise, they will be unable to service debts at all.

This article continues in economia.

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Sarah Champion wants to un-resign and join Jeremy Corbyn's shadow cabinet again

The MP is understood to have emailed asking for her job back. 

Sarah Champion, MP for Rotherham, is to rejoin the shadow cabinet less than a month after her dramatic resignation. 

On 28 June, in the aftermath of Brexit, she tweeted: "I have just stepped down from my shadow minister job, but not my responsibilities to my constituents, party or victims of abuse."

Now, she has reportedly emailed Jeremy Corbyn's team to request an un-resignation from her position as shadow minister for preventing abuse. 

According to the Guido Fawkes blog, she wrote: "I would like to formally retract my resignation and ask to be reinstated to my role as Shadow Home Office minister for preventing abuse and domestic violence with immediate effect."

Unsurprisingly, perhaps, given their staffing issues on the shadow cabinet, the Corbyn team is understood to be welcoming her back. 

Shadow chancellor John McDonnell has repeatedly urged ex-shadow cabinet MPs to come back. On 1 July he said: "Wouldn't it be better if people came back and worked with us?"

And on Sunday, he alarmed weekend TV viewers by turning straight to camera and telling the nation: "We've got to stop this now."