It has recently been reported that Southern Solar is the industry’s third high-profile casualty this month with the company being forced into insolvency. The founder, Howard Johns, one of the early pioneers of the British solar scene and former chairman of the Solar Trade Association from 2007-2012 and a government adviser on renewable energy, is expected to blame the collapse of Southern Solar on the government for failing to support the industry properly.
It would appear that the Government has slashed subsidies for solar power while maintaining those given to nuclear and fossil fuels.
Earlier this month the Department of Energy and Climate Change (DECC) denied that proposed cuts of 87% in solar subsidy levels have tipped solar companies into crisis. It is feared that thousands of people could be made redundant as a result of the deep subsidy cuts.
Last week almost 1,000 jobs were lost when two other companies providing energy saving measures were also placed into insolvency, blaming the cuts in Government subsidies for green energy initiatives for their demise.
Government policies are blamed
Clearly Government policies are being blamed for the downfall of these companies. Could these companies have been saved if they had changed their business models or had planned for Government policy changes? I suppose we will never know the answer.
I have, however, seen company directors who have had the foresight to change their business models and react to market trends or policy changes and their businesses have survived.
A prime example of this is the current changes that the Government plans to implement to childcare with effect from next year, it plans to double free childcare available to all working parents of 3 and 4 year olds to 30 hours a week. These changes will be available to up to 600,000 families and worth approximately £5,000 a year, including the £2,500 they can already save from existing free childcare offers. The implications of these changes will mean that more parents will go back to work which will increase the demand for nursery places.
Opportunities for those planning to open a nursery
If you are currently running a nursery or planning on opening a nursery, clearly there must be an opportunity for you to take advantage of the increase in childcare hours. Maybe you are thinking of expanding your current nursery and don’t have the cash to do so. At Cashsolv, we have a number of years of experience of helping business owners to expand, diversify and grow their businesses. One of the products that we offer is short-term or long-term business loans. To find out more as to how we can help, call us on 01489 550 440, or you can apply online now for a business loan and get an immediate decision in principle.