Business news 1 September 2025
Fraud, business optimism, The Employment rights bill, tax fears, UK Growth markets, tariffs, retail, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
⚖️Companies face unlimited fines if they fail to prevent fraud
Large organisations are now criminally liable for failing to prevent fraud, effective today. Under the Economic Crime and Corporate Transparency Act 2023, businesses can be prosecuted if they profit from fraud committed by employees, even without managerial knowledge. They must prove they had reasonable fraud prevention measures in place to avoid unlimited fines. Fraud minister Lord Hanson called it a “pivotal” moment, while Nick Ephgrave from the Serious Fraud Office stated: “This is a significant new tool for prosecutors to tackle serious and complex fraud.” The law applies to organisations with over 250 staff, £36m in turnover, and £18m in assets and includes foreign companies with UK links.
🏢UK business leaders see cautious optimism
Business leaders in the UK are cautiously optimistic about economic growth, according to the Institute of Directors (IoD). The IoD’s optimism index improved to minus 61 in August, its highest since last October. However, concerns about potential tax rises in the autumn budget persist. A BDO survey revealed that 74% of mid-sized businesses exceeded their growth targets, driven by consumer demand and AI productivity. IoD chief economist Anna Leach noted that while confidence has improved, 47% of leaders reported that the tax burden has harmed their finances. Leach stated: “Higher costs and rising regulatory risks threaten to undermine ambitions for jobs and growth.”
⚖️Businesses fear new laws will lead to job losses
Employers are concerned that the Employment Rights Bill could lead to job losses with the British Chambers of Commerce and other organisations urging the Government to reconsider certain aspects of the legislation. Jane Gratton, deputy director of public policy at the BCC, said: “Reducing costs and barriers, and boosting competitiveness for business, must be a priority for government.” The bill, supported by Deputy Prime Minister Angela Rayner, may impose costs of up to £5bn on businesses, potentially resulting in lower wages or reduced headcounts.
💰Private sector faces looming tax fears
The Confederation of British Industry (CBI) warns that the private sector is set to shrink due to fears of tax increases in the upcoming autumn Budget. The latest survey, involving 877 respondents, indicates a decline in investment and hiring across all industries, with consumer services facing the steepest drop. CBI economist Alpesh Paleja stated: “The autumn Budget must not add to that strain with further tax rises that risk undermining investment and growth.” The report highlights rising inflation and employment costs as additional challenges for businesses.
💷Downing Street’s new Budget advisers elicit tax hike fears
Sir Keir Starmer’s new economic adviser has advocated for more wealth taxes on inheritance, land and property, the Sunday Telegraph reports. Minouche Shafik, a former deputy governor of the Bank of England, has been brought in to help guide policy ahead of the autumn budget. The paper cites three occasions when Baroness Shafik called for redistributive taxes on wealthier pensioners, property owners and even owners of prestige cars. She also co-chaired an inquiry set up by Torsten Bell, a Labour minister and former head of the Resolution Foundation – a left-wing think tank – who is helping to write the next Budget. He has called for the residence nil-rate band, which allows a couple to pass on an extra £350,000 of property tax-free, to be abolished. The Economy 2030 report’s proposals included more than doubling the basic rate of dividend tax to 20%; cutting the £270,000 cap on tax-free pensions to £40,000; and raising capital gains tax to 37% on shares and 53% on property. CGT would also be applied to those emigrating and on death. Sir Mel Stride, the shadow chancellor, said: “Labour’s appointment of Minouche Shafik confirms their intent – higher taxes, more borrowing, and punishing success.”
📈Investec boosts UK growth outlook
Investec has revised its growth projections for the UK economy, predicting a 1.5% increase this year and 1.6% in 2026. This surpasses the Office for Budget Responsibility’s (OBR) forecast of 1%. The adjustment follows improved GDP data, which showed a 0.4% growth in June. Investec economists maintain their expectation of an interest rate cut in November, despite recent inflation data affecting market predictions. They noted that if growth aligns with their forecasts, the OBR may avoid cutting its own projections, potentially reducing the need for tax increases.
📈Markets
📈 On Friday, the FTSE 100 closed down 0.32% at 9187.34 and the Euro Stoxx 50 closed down 0.83% at 5351.73. UK Banks were hit hard by an authoritative report that Chancellor Rachel Reeves is planning a new tax on UK High Street banks that would help raise funds to compensate for Bank of England quantitative easing related losses. Whilst clear details will have to wait for the UK Budget – investors took the view to sell first and find out later.
Over in the US the S&P 500 fell 0.64% to 6460.26 and the Composite NASDAQ fell 1.15% to 21455.55. Technology stocks led the decline, falling 1.6% on Friday . Nvidia was the largest contributor to the S&P 500’s decline, falling 3.3% , while Dell Technologies had the largest percentage drop, falling 8.9%. Despite Friday’s decline, markets still notched four straight months of gains.
US Inflation edged higher in July, according to the Federal Reserve’s preferred inflation measure, indicating that President Trump’s tariffs are working their way through the US economy. The personal consumption expenditures price index showed that core inflation, which excludes food and energy costs, ran at a 2.9% seasonally adjusted annual rate, according to a Commerce Department report Friday.
US markets are closed for Labor Day today, with NYSE, Nasdaq, and US bond markets all shut but key market drivers include a US appeals court ruling that many of Trump’s tariffs were illegal but allowing them to remain temporarily.
The eastern world is uniting against Trumps tariffs. Indian Prime Minister Narendra Modi met with Russian President Vladimir Putin today, in a defiant show of ties at a time of tense relations with the US. Modi said the two countries share a “special” relationship and stand by each other in difficult times. Modi also met Chinese President Xi Jinping at a summit in Tianjin, as he seeks to improve relations with China after his falling out with Donald Trump.
💱This morning on currencies, the pound is currently worth $1.353 and €1.154.
On Commodities, 🛢️Oil (Brent) is at $68.23 & 💰Gold is at $3469.
📈On the stock markets, the FTSE 100 is currently up 0.23% at 9208 and the Eurostoxx 50 is up 0.23% at 5364.
UK mortgage approvals rise to 65,352 in July vs. 64,571 in June, according to a Bank of England report. UK house prices unexpectedly declined in August, according to one of Britain’s largest mortgage lenders, as affordability remains stretched for aspiring homeowners. Average house values fell 0.1% month on month to £271,079, rolling back a revised 0.5% gain the month before, Nationwide Building Society said on Monday. Analysts were expecting a 0.1% rise.
⚖️US Court of Appeals rules Trump tariffs illegal
The US Court of Appeals has ruled that Donald Trump likely overstepped his authority when he declared national emergencies to justify his tariff policies. The court stated that the International Emergency Economic Powers Act (IEEPA) does not grant the president the power to impose tariffs. The ruling may lead to a Supreme Court decision on Trump’s legal rights regarding trade policy. The court noted: “It seems unlikely that Congress intended… to grant the president unlimited authority to impose tariffs.” The ruling will take effect on 14 October, pending further appeals.
🛍️Tax-free shopping cuts hurt UK retail
The UK’s tourism sector has suffered significantly since the pandemic, with visitor spending now 8% lower than pre-Covid levels. The Office for National Statistics attributes this decline to the removal of tax-free shopping. In contrast, Italy and Spain saw spending increases of 13%, while France experienced a 5% rise. The Association of International Retail estimates that the loss of VAT rebates cost British shops over £2bn last year. Derrick Hardman, chair of AIR, stated: “This data shows the urgent need for the Chancellor to launch a review into the fiscal benefits of tax-free shopping.”
💰Record £900m haul from tech tax
Rachel Reeves has secured a record £900m from the digital services tax (DST) for the Treasury, surpassing last year’s £700m. The DST, a 2% levy on tech firms, was expected to raise £275m in its first year but has consistently exceeded forecasts. US President Donald Trump has pressured countries to drop the tax, threatening substantial tariffs on those that do not comply. Matthew Sinclair from the CCIA stated: “The UK digital services tax increasingly stands out as the burden grows.” The Treasury maintains the tax is fair and intends to repeal it once an international agreement is reached.
🌍UK firms shift jobs to South Africa
UK businesses are increasingly offshoring skilled jobs to South Africa due to rising employment taxes. The Legends Agency reported a 25% increase in inquiries since the National Insurance contributions rose from 13.8% to 15% in April. Alex Fenton, a director at the agency, noted that many jobs that could go to British talent are now being filled by South African workers, who benefit from lower salaries and a 3% tax rate. Fenton said: “Entrepreneurs are just looking at… saying, ‘I don’t want to hire in the UK any more. It’s incredibly expensive.'” More than 145 UK firms have hired over 1,100 remote employees in South Africa since July 2024.
🏦City fears new bank taxes
The City of London is gripped by anxiety over potential new taxes on banks, as fears grow that the Government may target the financial sector to address its fiscal shortfall. The Institute for Public Policy Research (IPPR) suggested an income levy on major banks could yield £8bn annually. City workers expressed concerns that such measures would drive talent abroad. Sir Philip Hampton remarked: “The banks are always an easy target because nobody likes them.” Despite government reassurances, many in the financial sector feel a tax grab is imminent, with sentiments of despair prevalent among bankers.
🏗️Landfill tax hike threatens new homes
A proposal to increase landfill tax could add £24,000 to new-build home prices, critics warn. The plan, being considered by the Chancellor, aims to replace the lower rate for inert waste with a higher standard levy, potentially raising costs from £690 to £24,820 per home. Graham Matthews from Business Waste said: “Builders may treat the increase as a permanent cost, which could ultimately be reflected in the prices paid by homebuyers.” The National Federation of Housebuilders warned that this could lead to fewer homes being built, exacerbating the housing crisis.
🏢The Labour Government ‘is failing working people’
Andrew Griffith, the Shadow Secretary of State for Business, writes in the Telegraph that Labour’s new Employment Rights bill will strengthen trade unions while imposing an extra £5bn in costs on businesses. Despite concerns from major business groups like the CBI, Labour appears determined to push forward, Griffith says, in a move he asserts will have a negative impact on job creation and economic growth. An editorial in the FT also laments Labour’s approach to business stating that workers risk bearing the cost of depleted business and investor confidence.
🛢️Windfall taxes threaten North Sea survival
Oil producers warn that the Energy Profits Levy (EPL) could lead to a 40% decline in UK oil and gas output by 2030. Offshore Energies UK (OEUK) stated that the tax, raised from 25% to 38%, is deterring investment and causing job losses, with 1,000 jobs disappearing monthly. David Whitehouse, OEUK’s managing director, urged Rachel Reeves to reform the tax to prevent the industry’s collapse, stating: “Without changes to the fiscal regime, UK oil and gas could disappear within years.” OEUK proposed a new tax mechanism to secure £41bn in investment by 2050.
🚗Poles flee UK amid high taxes, crime
Polish citizens are leaving the UK in record numbers, prompting removal firms to establish direct routes to Poland. Simon Hood, Executive Director of John Mason International, reported a staggering 4,066% increase in inquiries over the past year. Many Poles cite high taxes, crime rates, and the cost of living as reasons for their departure. Hood noted that most inquiries come from young families and entrepreneurs. He expressed concern over the loss of skilled individuals. A HM Treasury spokesperson defended the Government’s economic policies, highlighting job creation and business confidence.
🚨Latest Insolvencies
Petitions to wind up (Companies) – ALLBOAT SERVICES LIMITED
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Appointment of Liquidators – LOCIN ENERGY LIMITED
Appointment of Liquidators – NJN 2013 LIMITED
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Appointment of Liquidators – ASTON CARTER GROUP LIMITED
Appointment of Liquidators – AJAP CONSULT LTD
Petitions to wind up (Companies) – PRECISION AUTOMATION LTD
Petitions to wind up (Companies) – TANAGON LIMITED
Petitions to wind up (Companies) – PORT LIVING LIMITED
Appointment of Administrator – ZEST FOOD SERVICE LIMITED
Appointment of Liquidators – DR SARKAR & DR ROY LIMITED
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Appointment of Liquidators – 3B INVESTMENT GROUP LTD
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Petitions to wind up (Companies) – GRS FOODS LTD
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Petitions to wind up (Companies) – PENWORTHAM CARS LTD
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Petitions to wind up (Companies) – HIGHROOF LTD
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➕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!
️ The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.