Business news 1 April 2025
Tax burden on businesses doubles in 10 years. Minimum wage and tax rise will hammer jobs. Working families ‘to lose £3,500’ as NICs rise. Return-to-office mandates put talent off. Commercial property crisis, US Trade, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Please note: on the 19/3/25 CPA moved after 45 years on King Street, to new offices a couple of miles down the road at Profile West, 950 Great West Road, Brentford, TW8 9ES.
Tax burden on businesses doubles in 10 years
New research by Thomson Reuters reveals that companies contribute over 25.6% of all UK tax receipts, with total payments nearly doubling from £114bn in 2014/15 to £215bn in 2024/25. Chancellor Rachel Reeves has pledged a more pro-business approach, yet the data raises concerns about the current tax landscape, which is becoming increasingly complex. The corporation tax rate stands at 25%, and additional burdens from national insurance and other taxes are compounding the issue. With the need for innovation and technology in compliance growing, businesses are turning to AI-powered tools to manage their tax obligations more effectively, the study notes.
Minimum wage rise and tax raid will cost 85,000 jobs
The Resolution Foundation has warned that 85,000 jobs are at risk from Labour’s hike to national insurance contributions for employers and minimum wage increases. The Left-leaning think tank predicts that employers will have to fire staff, reduce hiring or trim hours to cope with higher costs. Nye Cominetti, an economist at the Resolution Foundation, said: “We find an employment effect of 85,000 in terms of average-hours jobs. It is a substantial number. Most of that employment effect is concentrated among low-earners.”
Working families ‘to lose £3,500’ as NICs rise
Working families are projected to lose over £3,500 by the end of this parliament due to the increase in national insurance contributions for employers announced by Chancellor Rachel Reeves, which will rise by 1.2 percentage points to 15% from April 6. Kemi Badenoch, Conservative Party leader, labelled the levy a “jobs tax” claiming 18.6m households would be affected. The Office for Budget Responsibility estimates that 60% of the cost will be passed on to workers through lower wage growth and higher prices. By 2029-30, the average loss per household is expected to reach £842 annually. A Treasury official claimed the figures do not consider indirect economic impacts and reaffirmed the Government’s commitment to keeping taxes low for working people.
Return-to-office mandates put talent off
According to a recent poll by Hays, nearly half of professionals would consider resigning if required to return to the office full-time, with 58% of female workers expressing this sentiment compared to 42% of men. The survey revealed that 77% of the workforce prefers a hybrid working model, with three days in the office being the most common arrangement. Pam Lindsay-Dunn, chief operating officer of Hays UK and Ireland, said: “Employers need to realise they are at serious risk of losing top talent if they make a full-time return-to-office compulsory.” The cost of commuting emerged as a significant concern, affecting 73% of professionals’ decisions regarding office attendance. Despite some companies pushing for more in-office time, only 8% of employers plan to enforce a return to the office in the next six months.
Labour’s Employment Rights Bill will hammer jobs
Karen Jackson, an employment discrimination lawyer and owner-CEO of didlaw, critiques Labour’s Employment Rights Bill in a piece for City AM, stating it “swings too far” in favour of workers without considering the impact on small and medium enterprises (SMEs). She highlights the bill’s reliance on secondary legislation and warns that it could create uncertainty and hinder growth. While she supports measures against abusive practices like fire and rehire, she argues that introducing day one unfair dismissal rights is impractical and could deter hiring. Jackson also raises concerns about the Fair Work Agency’s proposed powers, suggesting they could lead to overreach. She concludes that the bill, in its current form, should not pass and anticipates significant amendments to make it workable.
Commercial property crisis deepens
The UK’s commercial property sector is facing significant challenges due to environmental regulations and changing work patterns, writes Smart Spaces CEO Dan Drogman. The Spring Statement was a “missed opportunity” for relief, he says, with over 75% of London’s office buildings below the minimum energy standard, putting landlords under pressure to upgrade by 2030. Drogman stresses the need for targeted support, such as retrofit grants, to encourage upgrades without penalising landlords through business rates. He warns that without reform, London risks a wave of stranded assets, leading to rising vacancy rates and weakened economic activity
US tells UK: “No free trade without free speech”
The US administration is making free speech in the UK a condition of a free trade deal with America as talks between the two countries to avert a new tariff regime fail. Pointing to the case of an anti-abortion campaigner, Livia Tossici-Bolt, who was prosecuted for holding a sign near a Bournemouth abortion clinic, a source in the US state department told the Telegraph there should be “no free trade without free speech.” Donald Trump’s long-promised global tariffs expected to come into force on Wednesday and Downing Street conceded on Monday that, despite last minute efforts, tariffs would likely hit Britain. In a statement, the US bureau of democracy, human rights and labour, a branch of the state department said: “US-UK relations share a mutual respect for human rights and fundamental freedoms. However, as Vice-President Vance has said, we are concerned about freedom of expression in the United Kingdom. It is important that the UK respect and protect freedom of expression.”
SMEs need more than just words – Dr Gerard Lyons
Small and medium-sized enterprises (SMEs) represent 99.9% of all firms in the UK, employing 16.6m people and contributing significantly to the economy. But poor policy decisions and a lack of access to finance continues to thwart their progress, writes Dr Gerard Lyons, chief economic strategist at Netwealth. There needs to be a proactive policy approach to SMEs, Dr Lyons asserts, with simplified tax rules and a more predictable regulatory environment. The City also needs to step up and provide solutions to the lack of patient capital and absence of financing to allow SMEs to scale up and invest.
Shops will pass on £1.7bn of price rises
New research by Retail Economics shows retailers face a £5.56bn increase in costs from this week, hitting profits by £1.76bn while £1.72bn of the extra costs will be passed on to consumers. The remainder will be covered by cutting costs. Richard Lim, chief executive at Retail Economics, says: “Retailers are staring down the barrel of a £5.6bn wave of additional costs that will squeeze margins and threaten jobs across the industry. With operating costs rising sharply, many retailers have little choice but to absorb some of the financial pain while cautiously passing costs on to consumers already facing their own pressures.”
Scotland’s SMEs face finance hurdles
Research from the British Business Bank and Business Gateway reveals that smaller businesses in Scotland are facing significant challenges in accessing finance. The Scotland SME Access to Finance Report 2025 indicates that 42% of respondents reported barriers to securing funding, a notable increase from 38% the previous year. Regions such as Tayside, Central Scotland, and Fife reported the highest difficulties, with 52% of businesses affected. Despite these challenges, 41% of Scottish businesses anticipate growth in the next year, with 70% confident in meeting their future finance needs.
CFO turnover hits record high
Over 15% of chief financial officers (CFOs) at listed companies in the UK and US departed their roles last year, marking the highest turnover rate in six years, according to research from Russell Reynolds Associates. The average tenure of CFOs has decreased from 6.2 years to 5.8 years in 2024, largely due to a high retirement rate. Ben Jones, co-head of Russell Reynolds’ European CFO practice, noted that the market pressure on CFOs is “fierce,” driven by increasing regulatory demands and external factors like tariffs and inflation. Additionally, 70 out of 275 CFOs appointed last year were women, the highest proportion in six years, with 54% being internal appointments.
House prices
UK House Price growth remained stable in March, with no month-on-month growth and with the market expected to lack drive in coming weeks due to the end of the stamp duty holiday. House prices were up 3.9% year on year in March, the same as in February, according to data from Nationwide building society.
Mortgage approvals drop in February
Figures from the Bank of England show mortgage approvals for house purchases fell to approximately 65,500 in February, down from 66,100 in January. The decline reflects a broader slowdown in consumer credit borrowing, which decreased by £300m compared to the previous month. Karim Haji, head of financial services at KPMG, commented: “The surprising dip in mortgage approvals… suggests that affordability continues to put pressure on household finances.” Overall, consumer credit borrowing rose to £1.4bn, higher than the average gain of £1.2bn over the previous six months. UK economist at Capital Economics Ashley Webb said: “This provides a glimmer of hope that households are starting to save a bit less and spend a bit more freely.”
Food Inflation
UK Food Inflation continued to edge up in March, despite retailers doing “all they can” to avert pressures bearing down on the industry, figures show. Food prices overall are now 2.4% higher than last March, up from 2.1% in February and above the three-month average of 2%, according to the British Retail Consortium-NIQ shop price index.
Tighter link between public and private capital markets needed
According to a recent report by UK Finance, the relationship between British businesses and public exchanges like the London Stock Exchange is evolving, necessitating a new strategy. The report highlights a significant decline in the importance of public listings, with market capitalisation of UK-traded companies dropping by 17% since 2013. The report, which was supported by EY, advocates for a tighter connection between public and private markets to foster growth and liquidity, suggesting initiatives like the Private Intermittent Securities and Capital Exchange System (PISCES) to facilitate smoother transitions to public listings. Conor Lawlor, managing director at UK Finance, stated: “[The UK has] a world-class ecosystem of public and private markets,” pointing to the need for collaboration to support innovative companies.
Latest Insolvencies
Petitions to wind up (Companies) – RPJ CONSTRUCTION LTD
Petitions to wind up (Companies) – SWYTCH SMART LIMITED
Appointment of Administrator – JACKSON JACKPOT LIMITED
Appointment of Administrator – HEDOINE LIMITED
Appointment of Liquidators – AKORA TCG LTD.
Appointment of Liquidators – COGNITIONFUSE LTD
Appointment of Liquidators – CASA BRANCA CONSULTING LIMITED
Appointment of Liquidators – PENUMBRA MEDICAL LIMITED
Appointment of Liquidators – NK HEALTH LIMITED
Appointment of Liquidators – AI TRAINING (UK) LTD
Appointment of Liquidators – QUANTERIUM TECHNOLOGIES LIMITED
Appointment of Liquidators – PYKE SOLUTIONS LTD
Appointment of Liquidators – STAFFRIGHT (LONDON) LTD
Appointment of Liquidators – AGT & TT SYSTEMS LIMITED
Appointment of Liquidators – STOWE TECHNOLOGIES LTD
Appointment of Liquidators – JUNIPER JEAN LTD
Appointment of Liquidators – ELEMENTALDOCS LTD
Appointment of Liquidators – HANBOROUGH IT LTD.
Appointment of Liquidators – SURREY FACIAL SURGERY LTD
Appointment of Liquidators – B AND H PROJECT SERVICES LIMITED
Appointment of Liquidators – AUM INTEGRATION LIMITED
Appointment of Liquidators – BRAYHEALTH LIMITED
Appointment of Liquidators – ACCESS INDEPENDENCE CONSULTING LTD
Appointment of Liquidators – CLEOCAT LIMITED
Appointment of Liquidators – DAISY VILLA LIMITED
Appointment of Liquidators – SHIAKA LIMITED
Appointment of Liquidators – GEOMETRON LIMITED
Appointment of Liquidators – CARRICK FINANCIAL CONSULTING LIMITED
Appointment of Liquidators – PARS UNITED COMMUNITY INTEREST COMPANY
Petitions to wind up (Companies) – KEEPSAKE SCOTLAND LTD
Appointment of Liquidators – JARSC LIMITED
Appointment of Liquidators – HIRIS CAPITAL LIMITED
Appointment of Liquidators – KARM SAFETY CONSULTANCY LTD
Appointment of Liquidators – WORLD RETAIL INSIGHTS LIMITED
Appointment of Liquidators – MARGETSON HOLDINGS LIMITED
Appointment of Liquidators – SFB HOLDINGS LTD
Appointment of Liquidators – APARTMENTS HEATHROW LTD
Why you should become a member of CPA!
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid, since 1914. We have supported our members through all sorts of difficult trading environments. With high interest rates and a struggling economy and elevated insolvencies, our services can help your business navigate these difficult waters.
Unlike other credit management and debt collection companies, we offer a range of services to our members that are all included as part of a fixed annual subscription, tailored to your needs.
Under your annual subscription you will have access to our main services:
- Our Creditcare credit reports provide credit ratings and limits along with a host of detailed information on your potential customers to enable you to trade with confidence and set appropriate credit policies for new customers.
- Our monitoring service will alert you to any significant changes in the status of those customers.
- Our Overdue account recovery service can be used to chase up payment on any invoices to those customers that have not been paid on time. Unlike other debt collection companies, this service directs your customer to pay direct to you and allows you to maintain your goodwill with them, rather than inserting ourselves into your relationship with you customer and insisting they pay CPA instead. Our Overdue account recovery service resolves over 80% of accounts referred to us.
All of the above services and other complimentary services such address verification, are included in your subscription!
And for the small minority of debts not resolved through our Overdue account recovery service, you can refer the debt to our collections department to escalate the late payment collections process.
CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. And we provide credit information so you can monitor and assess your key customers and be warned of any potential risks. CPA has been improving business cash flow for over 100 years, by tackling late payers and campaigning against the late payment culture in the UK.
Unlike other credit management companies, we offer our members a fixed annual subscription regardless of how high the value of their debts maybe!
Rather than to borrowing more money to improve your cashflow, CPA suggests that business owners tackle the problem at its source. If late payments are a strain on your cashflow, then talk to CPA about how we can help you reduce those late payments.
Just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.
When you see your money come in, you will be so glad you used CPA.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Do you have a commercial late payer that is causing you grief? Use CPA’s no-win, no-fee, commercial debt recovery service!
If you have a particular business customer who is late paying and causing you sleepless nights, why not offer it to CPA’s collection department for purchase on recourse?
CPA’s collection department will then pursue the debt. We will be liable for any costs incurred and then when we have recovered the debt, we will pay you the net principle debt recovered less our percentage.
Once you have enjoyed that success then you can consider the more cost effective membership which includes our Overdue Account Recovery service and Status/Credit reports as well as a range of other complimentary services.
Just call 020 8846 0000 and ask for Godfrey Nelson or Cris Shirley (business hours) or email debtpurchase@cpa.co.uk today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
Get compensated for previous late payments
Have you been paid late by business customers in the last six years?
Maybe you no longer work with them. Under legislation, you are entitled to compensation you for those late payments you have suffered.
You put up with the PAIN – now claim the GAIN!
Claim late payment compensation (LPC) from former business customers who paid you late in the last six years!
CPA (LPC) Recoveries is using our bespoke software and decades of experience to do just that for our clients
Check our compensation calculator to see how much your business could be owed!
Discover NOW the potential value of late payment compensation hidden in your sales ledger!