Business news 4 April 2025
Trump’s tariffs and the market fallout, 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.
UK hit by US tariffs but avoids ‘direct blow’
The UK economy has managed to avoid “a direct blow” from US President Donald Trump’s tariff regime, although economists warn of a “significant” impact. Mr Trump imposed a 10% tariff on UK goods, while UK car manufacturers face a 25% tariff on foreign cars imported to the US, potentially jeopardising 25,000 jobs. Barret Kupelian, chief economist at PwC, said: “The UK avoided a direct blow – but the global economy has taken a substantial hit.” He added: “For the UK, the impact is significant – though less severe than for some other countries.” Thomas Pugh, an economist at RSM UK, said: “The direct impact on the UK is likely to be in the 0.2% to 0.5% of GDP range over the next few years,” adding: “Given we expect growth of 1% this year and 1.5% next year, it implies another year of stagnation at best.”
Business groups warn of ‘deeply troubling’ tariffs
British companies and business groups have expressed concern over President Donald Trump’s 10% tariff on UK goods entering the US, with Confederation of British Industry chief executive Rain Newton-Smith saying the plans are “deeply troubling for businesses.” The Federation of Small Businesses (FSB) said the tariffs were “a major blow” to SMEs, with 59% of small UK exporters selling to the US. The FSB’s policy chair, Tina McKenzie, said the charges “will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat,” adding that “the fallout will stifle growth.” Meanwhile, industry body Make UK said the 25% tariffs on cars, steel and aluminium would be devastating for UK manufacturing. The Society of Motor Manufacturers and Traders said the taxes were a “deeply disappointing and potentially damaging measure.”
Trump tariffs may mean tax hikes
President Donald Trump’s recent announcement of 10% tariffs on UK exports is expected to exacerbate the financial challenges faced by British businesses and could lead to higher taxes. Simon Gleeson, head of Blick Rothenberg’s US corporate desk, said the tariffs mark “a new gust of headwinds adding to the perfect storm for UK businesses.” He added that Mr Trump’s announcement has delivered “a new shockwave for the UK’s economic outlook that continues to be impacted by changes in employers’ National Insurance contributions, business rates and the rising exodus of non-doms.”
PMI shows growth but falls short of forecasts
S&P Global’s latest composite PMI, which takes an average of manufacturing and services output for the month, came in at 51.5 for March. This fell short of analyst expectations, with a poll by Bloomberg suggesting that the PMI would hit 52. March’s reading also came in lower than the long-running average of 53.6. The services PMI hit 52.2 in March, on a scale where a reading above 50 points to growth. Despite this being the fastest acceleration in service sector growth in seven months, Tim Moore, economics director at S&P Global Market Intelligence, said the hospitality and manufacturing sector are suffering from “weak business conditions.” He noted that service providers flagged a “range of constraints on growth, including stretched household budgets, risk aversion among corporate clients and rising geopolitical uncertainty.”
HMRC late fees hit £250m
HMRC collected £251m in late penalties from self-assessment taxpayers between 2021 and 2023, according to data obtained through a Freedom of Information request by NFU Mutual. The analysis reveals that £157m was paid in the tax year ending April 2022, while £94m was handed over in the following year. The number of taxpayers failing to meet deadlines is expected to rise, particularly as more individuals with incomes exceeding £150,000 are required to file returns. Over a million taxpayers missed the latest self-assessment deadline on January 31, nearly double the previous year’s figure. Additionally, late payment interest will increase to 8.5% from April 6, with this the highest level since January 2008. Charlene Young, senior pensions and savings expert at AJ Bell, notes that while the interest penalty will stand at 8.5%, “HMRC will continue to only pay base rate minus 1% on repayments owed to taxpayers, equivalent to 3.5%.”
British Steel plant could close
Unions have warned that British Steel’s Scunthorpe plant may be forced to shut within weeks as the plant’s Chinese owner, Jingye, has yet to secure the raw materials to keep it in operation. Alasdair McDiarmid, assistant general secretary of the union Community, said: “The situation is extremely concerning, and it would be an abject disaster if the business was allowed to close by default due to a lack of raw materials.” Charlotte Brumpton-Childs, the GMB’s national officer, said a union meeting with workers had shown that ”Jingye has no intention of running the plant responsibly,” arguing that “nationalisation is now the only option to save UK steel-making.” British Steel last week launched a consultation on the proposed closure of its two blast furnaces at Scunthorpe, putting up to 2,700 jobs at risk.
Grocery sales slow in March
Analysis by NIQ shows that sales growth at UK supermarkets slowed to 2.7% in the four weeks to April 2, marking a decline on the 4% increase recorded in February. While in-store sales were up 6.8%. online sales grew by just 0.7%. Mike Watkins, head of retailer and business insight at NIQ, said retailers “have reasons to be optimistic this dip in sales won’t last,” noting that “sunnier weather at the start of April and the lead up to Easter will encourage extra spend which will then improve top line sales.” Separate data from Kantar shows that promotional sales increased to 28.2% of total grocery spending in March, with this the highest level in four years.
Trump tariffs hit stocks
Stocks fell on global markets on Thursday, with trade shaken by concerns over tariffs set out by the US, where President Donald Trump said he would impose a 10% baseline tax on imports and even higher duties on a number of countries. In the US, the S&P 500 was down by 4.8%, while the Dow Jones closed about 4% lower, and the Nasdaq was down by around 6%. In Europe, the UK’s FTSE 100 share index ended trading 1.5% down, Germany’s Dax index fell 3% and France’s CAC 40 dropped 3.3%. In Asia, the Nikkei in Japan closed nearly 3% down and Hong Kong’s Hang Seng index was 1.5% lower. The World Trade Organization said it is “deeply concerned” by the impact of the tariffs, estimating that trade volumes could shrink by 1% this year.
American markets suffered their steepest declines since March 2020 on Thursday, giving up $2 trillion in value. Asked if he would consider reducing some tariff rates, Mr Trump said he would be open to “phenomenal” offers.
Maria Cantwell, a Democrat, and Chuck Grassley, a Republican, introduced legislation into the Senate to restore to Congress more power over tariffs. The bill would require the president to notify the legislature of any changes to levies on imports and offer an explanation. Any tariff not approved by Congress would expire after 60 days.
China has hit back with 34% tariffs on all US imports in retaliation.
The UK Government has insisted they will respond to US tariffs with “cool and calm heads”, but they are keeping all options on the table, including the possibility of retaliatory tariffs on a range of US goods. An “indicative list” published by the government showed products that could be targeted, including bourbon whiskey, motorcycles, guitars and jeans.
Markets
Donald Trump blew up the world economy with his grenade toss of tariffs and markets reacted.
Yesterday, the FTSE 100 closed down 1.55% at 8474.74 and the Euro Stoxx 50 closed down 3.59% at 5113.28. Overnight in the US the S&P 500 collapsed 4.84% to 5396.52 and the NASDAQ sunk 5.97% to 16550.61.
This morning on currencies, the pound is currently worth $1.300 and €1.177. On Commodities, Oil (Brent) has dropped over 6% to $65.4 & Gold is at $3128. On the stock markets, the FTSE 100 is currently down 4% at 8141 and the Eurostoxx 50 is down 4.7% at 4872.
The UK Services Sector saw a “modest expansion” in March but economists overestimated the purchasing managers’ index (PMI) readings for the month. The latest composite PMI reading, which takes an average of manufacturing and services output for the month, came in at 51.5. The figure points to a slight expansion in UK output as it skimmed the 50-figure benchmark. However, a poll of economists predicted that the UK’s composite PMI would reach 52.0.
Confidence in UK stocks climbs
A poll of 1,000 British retail investors by Etoro shows that confidence in the UK market has hit a record high, with a third backing the UK as the top performing stock market over the next five years. This compares to the previous record of 24%. With savers moving away from US stocks, European stocks have also seen an increase in popularity, having been included in 34% of portfolios, compared to 29% last month. Just 36% of investors expect the US to outperform other markets this year, down from 41% in the previous quarter.
TikTok
TikTok is due to be banned in the US tomorrow unless it is sold to a US party by its Chinese owners. Mr Trump, who had originally called for the ban before changing his mind, delayed the implementation of Joe Biden’s legislation for 75 days.
Non-doms could quit UK over 67% levy
James Lawson, chairman of the Adam Smith Institute, warns that the Finance Bill will impose harsh and arbitrary tax rules on non-doms, potentially leading to exorbitant tax rates. He highlights that “such punitive taxation runs contrary to the UK’s proud history as a champion of commerce and competition.” The proposed changes could see non-doms paying up to 67% tax on overseas profits, driving wealth-creators away from the UK. Mr Lawson has urged the Government to amend the Finance Bill to protect existing non-doms from excessive rates and ensure that repatriated income under the Temporary Repatriation Facility is not subject to additional taxation.
Pension savers concerned over ‘extraction’ plan
A poll by the Pensions Insurance Corporation (PIC) shows that the majority of pension scheme members are unsure over Government plans that would allow firms to use money from defined benefit (DB) schemes for investment. Seven in ten respondents say they oppose what the PIC has described as ‘extraction’, while 94% said it was important that politicians did not tamper with pension pots. PIC chief executive Tracy Blackwell said that it “took a long time to build up a legal regime for DB pensions that puts members first,” and they are now “clearly concerned at the prospect of these vital protections being watered down.”
Latest Insolvencies
Petitions to wind up (Companies) – L L GLAMPING LIMITED
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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!