Business news 2 April 2025
Exodus of millionaires to accelerate . Cost hikes hit UK businesses hard. Markets, tariffs, manufacturing, inflation, 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.
Exodus of millionaires to accelerate as new non-dom rules bite
New laws introduced by Rachel Reeves could mean non-doms will be forced to pay 67% tax on their foreign businesses. The Adam Smith Institute (ASI) calculates that some non-doms will have to pay 45% in tax on the profits their foreign companies make plus an additional 39.5% tax on their dividends. “Taxing the foreign businesses of non-doms at rates of up to 67% is the kind of behaviour we might expect from an authoritarian regime – not from the birthplace of capitalism,” said Sam Bidwell, the ASI’s director of research and author of its Wealth Exodus report. “These proposals are nothing short of a slap in the face to the wealth creators who invest, pay taxes and create jobs in the UK. It’s no wonder that so many of them are considering leaving for good.” Figures show 30 millionaires left Britain every day last year, more than double the number in 2023. With the new rules coming into force on Sunday, there are fears the Chancellor’s tax hike could see this number climb further.
UK manufacturing woes deepen
The latest S&P Global UK Purchasing Managers’ Index (PMI) indicates a significant downturn in the manufacturing sector, with the index dropping to 44.9, slightly above the predicted 44.6. This marks the lowest reading in 17 months, well below the average of 51.7 from 2008 to 2025. Rob Dobson, director at S&P Global Market Intelligence, noted that the outlook is “darkening” as confidence wanes, with companies facing rising costs due to changes in national minimum wage and national insurance contributions, alongside geopolitical tensions and potential trade disruptions.
City AM
Cost hikes hit UK businesses hard
Businesses in the UK are preparing for a challenging week as significant cost increases take effect, with industry leaders warning of dire consequences for investment and employment. Helen Dickinson, chief executive of the British Retail Consortium, described the situation as a “bombshell,” stating: “This huge cost burden will undoubtedly reduce investment in stores and jobs, and is likely to lead to higher prices.” The rise in the National Living Wage, National Insurance contributions, and other overheads coincides with soaring energy and water bills. Jane Gratton from the British Chambers of Commerce warned that concerns among businesses are at “record high” levels, with the operating environment expected to worsen. Kate Nicholls, chief executive of UK Hospitality, said the rise in overheads was “eyewatering” and would mean “stark” consequences for businesses.
Tax hikes could shut young people out of work
Young people may be pushed out of the job market due to Labour’s national insurance increases and minimum wage hikes, warns the Institute for Fiscal Studies (IFS). The National Living Wage for those aged 21 and over will rise by 6.7%, while the minimum wage for 18-20 year-olds will see a significant increase of 16.3%. Although the IFS acknowledges that most 18-20 year-olds won’t be directly affected, it highlights that the industries they typically work in will face the largest rise in employer costs. With over 987,000 young people currently not in education, employment, or training, the potential long-term effects on their careers are concerning.
Trump’s tariffs threaten UK economy
Chancellor Rachel Reeves has warned that Donald Trump’s impending tariffs will “have an impact” on the UK’s economy. Business Secretary Jonathan Reynolds described the situation as a “very serious and significant moment.” The US President is expected to announce tariffs on various goods, potentially including a 20% tariff on UK imports. Professor David Miles from the Office for Budget Responsibility noted that tariffs of 20-25% could eliminate the Government’s fiscal headroom. The Government is conducting talks with the US on an economic deal which it hopes will result in the UK being excluded from the new tariff regime
UK offers tax cut to US tech
The UK Government is prepared to reduce its digital services tax (DST) to appease US President Donald Trump, while also extending the tax to non-US companies. This concession aims to mitigate potential tariffs from the US amid fears of a global trade war. Prime Minister Keir Starmer has opted to maintain the DST, which currently generates £800m annually, as government finances are under pressure. The proposed changes could broaden the DST’s scope, potentially increasing tax revenue to £1.2bn by the decade’s end.
Mild concern over expectations for UK inflation
Megan Greene, an interest rate setter at the Bank of England, has expressed concern over rising public expectations for future inflation. Recent surveys from the Bank of England and Citi/YouGov indicate that inflation expectations have increased in recent months. Greene stated: “I do think inflation expectations do remain anchored, but I think it is a concern that they’ve been rising for the past six months.” Greene also commented on the potential disinflationary effects of trade wars on the UK economy, stressing the uncertainty surrounding exchange rates.
Markets
Yesterday, Stocks rose in the “calm before tariff storm” with the so-called Trump tariff liberation day looming. The FTSE 100 closed up 0.61% at 8634.80 and the Euro Stoxx 50 closed up 1.37% at 5320.30. Overnight in the US the S&P 500 rose 0.38% to 5633.07 and the NASDAQ rose 0.87% to 17449.89.
The White House said the tariffs which are due to be announced this evening, on “all countries” would take effect immediately. Ursula von der Leyen, the president of the European Commission, said the European Union had a “strong plan to retaliate”, though it still hoped for a “negotiated solution”.
This morning on currencies, the pound is currently worth $1.292 and €1.1965. On Commodities, Oil (Brent) is at $74.25 & Gold is at $3133. On the stock markets, the FTSE 100 is currently down 0.43% at 8598 and the Eurostoxx 50 is down 0.6% at 5288.
Euro Zone Inflation dipped as expected to 2.2% in March, according to flash data from statistics agency Eurostat published Tuesday.
US Job Openings in February fell to 7.568 million, more than to the estimated 7.658 million from the previous 7.74 million, which was revised up to 7.762 million.
The UK Manufacturing PMI worsened less than expected last month, falling to 44.9 in March from 46.9 in February. This was slightly better than the preliminary ‘flash’ reading of 44.6 that came out mid-month.
CMA says drivers overpaying for fuel
The Competition and Markets Authority (CMA) has raised concerns over high petrol and diesel margins, which remain significantly above historical averages. The latest report indicates that petrol margins averaged 13.8p per litre, more than double the 6.5p margin from 2015 to 2019. Diesel margins were similarly elevated at 13.4p per litre. Dan Turnbull, CMA senior director, commented: “Fuel margins remain stuck at high levels which impacts prices paid by drivers at the pump.”
House prices stay steady in March
UK house prices remained unchanged at £271,316 in March, with an annual growth rate of 3.9%, according to the Nationwide Building Society. London experienced the lowest annual growth at 1.9%, while Northern Ireland surged to 13.5%, the highest since 2021. Robert Gardner, Nationwide’s chief economist, said, “the market is likely to remain a little soft in the coming months,” following the end of the stamp duty holiday. Despite the current stagnation, Gardner anticipates a gradual recovery in activity as summer approaches, supported by low unemployment and rising earnings.
Solar
The UK produced a record amount of solar power yesterday afternoon as the country’s growing army of panels sucked in the sunny spring weather. Solar panels in the UK were generating as much as 12.2 gigawatts of solar power just after midday, according to the National Energy System Operator
WhatsApp scams surge in the UK
The UK has emerged as the leading country for WhatsApp scams in Europe, with British consumers losing an average of £2,437 per incident in 2024. Analysis by Revolut revealed that WhatsApp fraud accounted for 21% of all reported scams in the UK. Worldwide, 58% of all scams originate from Facebook, Instagram, and WhatsApp – all owned by Meta. Woody Malouf, head of financial crime at Revolut, said: “The illusion of security on WhatsApp is being ruthlessly exploited by criminals.” Job fraud and investment scams were the most prevalent, making up 51% and 38% of cases, respectively.
HMRC in warning over tax avoidance scheme
HMRC has issued a warning regarding a tax avoidance scheme that claims to reduce tax liabilities for companies while returning funds to directors and associates. The scheme involves disguising income and claiming Corporation Tax and VAT deductions for ‘advertising’ costs. However, HMRC cautions that “people who use these arrangements may have to pay more than the tax they tried to avoid,” including interest and penalties.
Investigation launched into flawed data at UK statistics agency
An independent investigation into the Office for National Statistics (ONS) has been initiated to address concerns regarding the accuracy of official economic data. Commissioned by the Cabinet Office and the UK Statistics Authority, the review will be led by former senior civil servant Sir Robert Devereux. The ONS has faced criticism for errors in economic indicators and delays in data publication, raising alarms among the Bank of England and other policymakers. David Miles from the Office for Budget Responsibility (OBR) noted that revisions to ONS estimates significantly impact fiscal targets, stating, “absolutely enormous” differences arise from these changes. The ONS has expressed its willingness to engage with the review process.
Rebel Energy collapses
Rebel Energy, a UK energy supplier serving approximately 90,000 customers, has ceased trading due to a “perfect storm” of rising wholesale prices and the cost of living crisis, according to founder Dan Bates. The company, established in 2019, struggled to secure necessary capital, leading to its closure. Ofgem, the industry regulator, is now tasked with finding new suppliers for affected customers. Tim Jarvis from Ofgem reassured customers that their energy supply would remain uninterrupted and any credit on their accounts would be protected.
Latest Insolvencies
Petitions to wind up (Companies) – STEELE PROPERTY DEVELOPMENT LIMITED
Appointment of Administrator – SWAN STREET FIREHOUSE LTD
Appointment of Administrator – KANWAL UK INDUSTRIES LTD
Appointment of Administrator – HUMANISING AUTONOMY LTD
Appointment of Liquidators – WHITE OAK UK (CBILS) BLUE NO.1 LIMITED
Appointment of Liquidators – THINK BEYOND MEDIA LIMITED
Appointment of Liquidators – RMLH COMMS LTD
Appointment of Liquidators – REVCELERATE LTD.
Appointment of Liquidators – STRIDE TOGETHER LIMITED
Appointment of Liquidators – COSAINTIA LIMITED
Appointment of Liquidators – DRAGON’S HOLDINGS LTD
Appointment of Liquidators – ARAS CIVILS LIMITED
Appointment of Liquidators – TECKNOWORKS LIMITED
Appointment of Liquidators – D AND D RENOVATION LTD
Appointment of Liquidators – FXC (IP) LIMITED
Appointment of Liquidators – TMP PROPERTY LIMITED
Appointment of Liquidators – SWATTSWARE LTD
Appointment of Liquidators – SPYROS BOLOS CONSULTING (SBC) LIMITED
Appointment of Liquidators – WITHDEAN CORPORATE FINANCE LIMITED
Appointment of Liquidators – AMS PROFESSIONAL CONSULTANCY SERVICES LIMITED
Appointment of Liquidators – CLOUDENSITY LIMITED
Appointment of Liquidators – COLOTO LIMITED
Appointment of Liquidators – RAINBOWS HRIS CONSULTANCY LTD
Appointment of Liquidators – AAZ CONSULTING LTD
Appointment of Liquidators – ALLCOTS DEVELOPMENT COMPANY
Appointment of Liquidators – CLICK CITY DIGITAL LIMITED
Appointment of Liquidators – REDWOOD COMMS LTD
Appointment of Liquidators – MAKING YOUR MARK LIMITED
Appointment of Liquidators – KLIMB CONSULTING LIMITED
Appointment of Liquidators – ALIBABA HEALTH LTD
Appointment of Liquidators – WISENUCLEAR LTD
Appointment of Liquidators – HPC MEDIA SYSTEMS LIMITED
Winding up Order (Companies) – IDENTITY LABS CONSULTANCY LIMITED
Appointment of Liquidators – CLEAR INTENTIONS LTD
Petitions to wind up (Companies) – SCOTDRILL LTD
Petitions to wind up (Companies) – THE BURGH ARMS (SCOTLAND) LTD
Petitions to wind up (Companies) – INTERACTIV SOLUTIONS (SCOTLAND) LIMITED
Petitions to wind up (Companies) – MACGRAFIX LTD
Appointment of Liquidators – W B C S (SCOTLAND) LIMITED
Appointment of Liquidators – SPEYBANK LIMITED
Petitions to wind up (Companies) – R T SHEPHERD & SON (SCOTLAND) LIMITED
Appointment of Liquidators – BRISEIDE LTD
Petitions to wind up (Companies) – SARHAN HAJI LTD
Petitions to wind up (Companies) – MAYA’S UNIQUE MARKETING LTD
Petitions to wind up (Companies) – BARLOWS MEP SERVICES LIMITED
Petitions to wind up (Companies) – THE FFA (SE) LTD
Petitions to wind up (Companies) – THE JUG AND GLASS LIMITED
Appointment of Administrator – OXFORD ANALYTICAL SERVICES LIMITED
Petitions to wind up (Companies) – BLAKESLEY ESTATES (KINGSKERSWELL) LTD
Appointment of Liquidators – MUIR WOODS LIMITED
Appointment of Liquidators – BARUA HEALTHCARE LIMITED
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!