Business news 2 September 2025
UK borrowing costs, voters oppose higher taxes, fraud, manufacturing, house prices, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
💸UK borrowing costs keep rising.
UK borrowing costs have surged, with 30-year gilt yields hitting 5.64%, their highest in 27 years, following Sir Keir Starmer’s reshuffle of his economic team. Investors reacted warily to the appointment of Baroness Shafik, who has supported higher wealth taxes, and Darren Jones’s move to chief secretary. Analysts say markets doubt the new team can stabilise public finances, particularly with a £50bn budget gap looming. Global pressures, including President Trump’s US tax policies and French political turmoil, are also driving yields higher. Economists warned that the UK’s weak fiscal outlook makes it especially vulnerable without a credible deficit-reduction plan.
📢Voters reject tax hikes and want Reeves gone.
Most UK voters oppose higher taxes, according to a YouGov poll. The survey found that 58% believe tax increases are unjustified, despite economists suggesting Chancellor Rachel Reeves may need to raise £50bn in the Autumn Budget. Among Labour voters, 42% support tax hikes, while 39% oppose them. Trust in Sir Keir Starmer’s Government is low, with 43% of voters calling for a Cabinet reshuffle and 55% wanting the Chancellor dismissed. The poll comes as Starmer reshuffles his team, appointing Minouche Shafik as economics adviser and poaching two senior Treasury officials – Darren Jones, who was Ms Reeves’s number two and Dan York-Smith. One Labour MP said the appointments reflected Ms Reeves’s diminishing authority in the Government, telling the Telegraph: “It’s a signal that she is in a weak position and it’s deteriorating.”
⚖️Rayner’s union plan faces legal storm.
Angela Rayner’s proposal to enhance trade union powers may violate human rights laws. The plan, part of the Employment Rights Bill, would automatically enrol union members in political funding without a refund option. Critics argue this breaches the European Convention on Human Rights (ECHR), particularly Article 11 on freedom of association. Shadow Business Secretary Andrew Griffith stated: “Rayner’s union charter may be in contravention of her beloved ECHR.” A government spokesperson defended the changes, asserting compliance with the ECHR and informing members of their opt-out rights.
💎Fake jewellery empire left £170m in debt.
Vashi Dominguez, a Spanish jeweller, has vanished following the collapse of his Vashi stores, which left £170m in debts. A BBC Panorama report reveals he created a façade of success to attract investors, including billionaire John Caudwell, who invested £1m. Former employees reported that the flagship store in Covent Garden struggled to attract customers. Charlotte Paul, a former data analyst, noted: “After the shininess had worn off, we were getting, like, two, three, four people in it a day.” The Serious Fraud Office has not received referrals regarding the case.
🏭Manufacturing output hits three-month low
Manufacturing output in the UK fell to a three-month low in August, according to the latest purchasing managers’ index (PMI) data from S&P Global. The index recorded a reading of 47, indicating a downturn as firms faced rising payroll and raw material costs. Matt Swannell from EY ITEM Club noted: “August’s final S&P Global manufacturing survey provided further signs that the sector appears likely to continue to underwhelm.” Job losses continued for the tenth month, with manufacturers expressing concerns over taxes and energy costs affecting competitiveness.
⚖️New fraud law a ‘fundamental shift’ in corporate accountability.
A new “failure to prevent fraud” law came into effect on Monday in what Irwin Mitchell described as a “fundamental shift” in corporate accountability. The law, which means companies could be prosecuted and face unlimited fines if they fail to prevent fraud that their firm profits from, will apply to large organisations that meet at least two of three criteria: having more than 250 employees, £36m turnover or £18m in total assets. Companies must now prove it took reasonable steps to prevent the fraud at the time of wrongdoing. Sam Tate, global head of the regulatory and investigations at Clyde & Co, commented: “The hidden danger lies in complacency; relying on outdated controls, assuming whistleblower policies or anti-corruption controls are enough. The offence casts a wide net with dishonest sales practices, misleading investor communications, and market manipulation all in scope.”
⚖️Deputy PM barred from revealing tax details.
Questions continue to swirl around Angela Rayner’s tax dealings following her recent flat purchase in Hove, which came after she put her Greater Manchester home into a trust. However, as demands for transparency increase, Downing Street has said that a court order restricts her from discussing the tax arrangements. No 10 went on to explain that the Deputy Prime Minister has asked her lawyers to go back to court to secure a change to the order “in the interests of public transparency.”
⚡Chancellor urged to reform windfall tax.
Offshore Energy UK (OEUK) has urged Chancellor Rachel Reeves to reform the windfall tax on energy profits, warning that the North Sea oil and gas sector could vanish “within years, not decades.” OEUK’s chief executive, David Whitehouse, stated that failing to adjust the energy profits levy could lead to a £137bn loss by 2050 and jeopardise 23,000 jobs. Kemi Badenoch, the Conservative leader, plans to eliminate net zero requirements for the sector, advocating for maximum extraction. She stated: “It is time that common sense, economic growth and our national interest came first.”
📈Markets
📈Yesterday, the FTSE 100 closed up 0.1% at 9196.34 and the Euro Stoxx 50 closed up 0.29% at 5367.08. Over in the US markets were closed for Labor day.
💱This morning on currencies, the pound has declined over 1% and is currently worth $1.338 and €1.1495 .
On Commodities, 🛢️Oil (Brent) is at $69.25 & 💰Gold is at $3483.
📈On the stock markets, the FTSE 100 is currently down 0.5% at 9151 and the Eurostoxx 50 is down 0.8% at 5323.
🏭UK Manufacturing PMI dropped to 47.0 for August, below the forecast of 47.3 and down from July’s six-month high of 48.0, but below the neutral 50.0 mark for the eleventh month in a row.
🏦UK Mortgage Approvals for house purchase rose to 65.4K in July, according to data from the Bank of England, up from 64.6K in June (revised up from 64.2k), and above the consensus forecast of 64.0K. UK household deposits with banks and building societies, as well as cash stored in NS&I accounts increased by £7.2 billion in July, down from £8.9 billion in June.
🏘️House prices dip as tax fears loom.
House prices in the UK fell by 0.1% in August, equating to a decrease of £1,585, according to Nationwide Building Society. The average property value now stands at £271,079, which is 2.1% higher than last year but below the peak of £273,751 in August 2022. Robert Gardner, chief economist at Nationwide, noted that prices remain unaffordable compared to incomes, with the average house price being 5.8 times the average salary. He stated: “House prices are still high compared to household incomes, making raising a deposit challenging for prospective buyers.” Speculation around tax changes may further impact the market.
🪖Military Spending
EU Military Spending is set to hit a fresh record of EUR381 billion in 2025, as countries plough more money into warding off Russia, the bloc’s defence agency said Tuesday. The 10% rise comes as European members of NATO have committed to massively ramp up spending under pressure from US President Donald Trump. “Europe is spending record amounts on defence to keep our people safe, and we will not stop there,” EU foreign policy chief Kaja Kallas said.
Greencore
The Competition and Markets Authority has announced that it is investigating the agreed acquisition of Bakkavor Group by rival Greencore Group. The CMA invited comment on the deal in July and seemingly on the basis of what it has received, is now carrying out a ‘phase one’ probe, which has a deadline of 27 October.
💧Lenders offer ‘sweetener’ in Thames Water rescue deal.
Thames Water’s largest creditor group is preparing to propose an additional £1.25bn package to regulators, including new equity and debt write-offs. This offer aims to persuade Ofwat and the Government to support a rescue deal, preventing the nationalisation of the utility. The creditors, holding about £13bn in debt, previously suggested £3bn in equity and £2bn in debt financing, representing a 20% haircut on their investments. Environment Secretary Steve Reed has authorised FTI Consulting to advise on contingency planning for a potential special administration regime, although the Government insists it wants a market-based solution to the crisis.
🚨Latest Insolvencies
Petitions to wind up (Companies) – FEATHERFOOT NEWSPAPER HOUSE LIMITED
Petitions to wind up (Companies) – WREN PACKAGING LIMITED
Appointment of Administrator – ALUMINIUM CASTINGS LIMITED
Appointment of Liquidators – STAGE GATE PROJECTS LTD
Appointment of Liquidators – JAWKINS LIMITED
Appointment of Liquidators – STEARE MEDICAL LTD
Appointment of Liquidators – KRAMDEL LIMITED
Appointment of Liquidators – CABOT SQUARE CAPITAL GP HF LLP
Appointment of Liquidators – BOOTS PROPCO D LIMITED
Appointment of Liquidators – DATABRAID LIMITED
Appointment of Liquidators – FRAMEQUEST LTD
Appointment of Liquidators – MIKE HEWLETT EDUCATION SERVICES LIMITED
Appointment of Liquidators – BEAUCHAMP-YOUNG INVESTMENTS LIMITED
Petitions to wind up (Companies) – THE GREEN BUS COMPANY LIMITED
Petitions to wind up (Companies) – W & H DEVELOPMENTS LTD
Petitions to wind up (Companies) – METRO PAT 247 LIMITED
Petitions to wind up (Companies) – MILLENNIA BOOKS LTD
Petitions to wind up (Companies) – Z VACATION RENTALS UK LTD
Petitions to wind up (Companies) – ONWARDS WE GROW LIMITED
Appointment of Liquidators – AMOS MORGAN CONSULTING LIMITED
Appointment of Administrator – UK COMMUNIIITY HOMES IMPACT 1 LTD.
Appointment of Administrator – ARAMIT PROPERTIES LTD
Appointment of Liquidators – IDR CONSULTING LIMITED
Appointment of Liquidators – MACPHERSON AUTOMATION PROCUREMENT SERVICES LIMITED
Appointment of Liquidators – QUINN FRC STRUCTURES LTD
Appointment of Liquidators – JENTT 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!
️ The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.