Michael Page faces surprise £40m tax bill

Michael Page International, the FTSE 250 recruitment consultancy, is facing an
unexpected £40 million tax bill, it emerged today, as it unveiled a sharp
drop in quarterly profits.

The group, Britain’s second-biggest recruiter, was warned by the Inland
Revenue last month that it was “considering taking steps” to
recover £37.4 million which it had handed over as a part settlement of an
alleged overpaid VAT bill.

Details of the case emerged as the group unveiled a third-quarter trading
update which showed a 41.8 per cent drop in profits to £82.2 million for the
three months to the end of September with income falling in every region.

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UK service sector signals growth

The UK service sector grew unexpectedly in May, a survey has said, indicating the economic outlook may be improving.

The PMI services index hit 51.7 in May, up from 48.7 in April. A measure above 50 indicates growth, and this was the first reading over 50 since April 2008.

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UK job market weakening rapidly

The UK job market weakened rapidly in November as permanent placements declined at record levels, a new survey from Markit Economics suggests.

The drop in permanent and temporary jobs was faster than at any point in the survey’s 11-year history. Read more