Business news 4 September 2025
Services drive growth. Reeves rejects Black Hole claims. Budget news, AI investment, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
📈Services sector drives August growth
S&P Global’s latest purchasing managers’ index (PMI) shows that the services sector saw the steepest pace on month-to-month growth in four-and-a-half years in August. The composite PMI for August came in at 53.5, with this up from 51.5 in July and marking a 16-month high on a scale where a reading above 50 represents growth. While the manufacturing PMI saw a slowdown, the services sector PMI came in a 54.2. Tim Moore, economics director at S&P Global Market Intelligence, said the report for August provides a “clear signal that growth prospects for the UK service economy have moved up from the lows seen this spring.” The report also revealed steeper growth in new work, with this driven by rising sales, while business confidence also hit a 10-month high. However, S&P Global said hiring remained “subdued,” with firms also noting that costs increased in August.
⚫Reeves rejects £50bn ‘black hole’ claims
Rachel Reeves has rejected forecasts of a £50bn “black hole” in the public finances, telling the BBC that the National Institute of Economic and Social Research think-tank had “more than most got their numbers wrong in the last few years.” Amid speculation that she will have to hike taxes or cut spending at the Budget, the Chancellor said: “People who seem to know what is in the Budget before we have made those decisions are just wrong,” adding: “A lot of them are talking rubbish, and frankly, a lot of what they’re saying is irresponsible.”
Ms Reeves, who argued there were “lots of positive signs” in the economy, said she will look to “get the balance right” at the Budget as she looks to make sure there is enough money to fund public services “whilst also ensuring that we can bring growth and investment.” The Chancellor, who announced that the Budget will take place on November 26, said that while Britain’s economy “isn’t broken … it’s not working well enough for working people.”
💼Chancellor pressed to prioritise spending cuts over tax rises
Bond investors have urged Rachel Reeves to cut spending in the Budget, warning that tax rises alone will not be enough to address rising borrowing costs and fiscal concerns.
🅰️ℹ️UK AI investment hits £2.9bn
Data shows that private investment in UK AI firms reached £2.9bn in 2024, with average deal sizes of £5.9m. The AI sector is estimated to contribute £11.8bn to the economy, with this double the figure recorded in 2023. Technology Secretary Peter Kyle has described the UK as a “global magnet” for innovation, saying: “We want you to keep investing here, keep building here, list here, scale here.” He added that regulators and investors must ensure the UK maintains its edge in a competitive global market, saying: “Countries can only prosper if they get the big calls right… to innovate, not imitate.”
🎁Fine warning over gifts
Experts warn that 400,000 Britons may face £100 fines from HMRC for failing to declare gifts and freebies as taxable income. With the tax year halfway through, those with side hustles or freelance income must complete a self-assessment return by January 2026. Mitch Hahn, CEO of Nordens, warned: “If you’re receiving products, experiences or services in exchange for promotion, HMRC sees that as taxable.”
📈Markets
📈Yesterday, the FTSE 100 rallied along with global equities and closed up 0.67% at 9177.99 and the Euro Stoxx 50 closed up 0.64% at 5325.01. Overnight in the US the S&P 500 rose 0.51% to 6448.26 and the Composite NASDAQ rose 1.02% to 21497.73,
📈On the stock markets, the FTSE 100 is currently barely up 0.02% at 9179 and the Eurostoxx 50 is barely down 0.03% at 5323.
why equities are up
US markets were bouyed after a favourable antitrust ruling for Alphabet boosted the Google parent’s shares over 9%, while investors parsed a softer-than-expected job openings report in the US for July which was interpreted as increasing the chance of a US rate cut later this month.
The UK Service Sector grew at the fastest rate since April 2024 in August, as output and new work climbed, survey results showed on Wednesday. The UK services purchasing managers’ business activity index rose to 54.2 points in August from 51.8 in July, topping the flash reading of 53.6 released late last month.
FTSE Changes
Burberry is returning to the FTSE 100 after a year out of the top index. I is being joined by Metlen Energy and Metals Plc. The two entrants replace student accommodation provider Unite Group Plc and homebuilder Taylor Wimpey Plc.
Currencies and commodities
💱This morning on currencies, the pound is currently worth $1.3453 and €1.1545 .
On Commodities, 🛢️Oil (Brent) is at $66.99 & 💰Gold is at $3542.
🎰Chancellor’s £3bn gamble on taxes
Chancellor Rachel Reeves plans a £3bn tax increase on online gambling, potentially raising the rate from 21% to 50% as she looks to address a significant gap in public finances. However, the Betting & Gaming Council warns that such a tax hike could jeopardise over 100,000 jobs and push gamblers towards unregulated black market operators. The industry currently contributes £4bn annually in taxes.
🏘️Relaxed mortgage rules would boost first-timers
Banking and finance industry body UK Finance has suggested that relaxing mortgage lending criteria, especially stress tests, could help first-time buyers enter the property market. This comes as analysis shows that easing stress rates would not significantly raise loan defaults, as most borrowers remain below initial thresholds. Current rules have kept arrears low but limited access for many potential homeowners. The Financial Conduct Authority has started a “public conversation” on the mortgage market’s future. UK Finance has cautioned that loosening rules without increasing housing supply could inflate prices and worsen affordability.
🏭Ministers could merge steel companies.
Ministers are in favour of merging all of the UK’s steel companies into one amid concern that the sector is too fragmented. Of the six steel companies in the UK, four are currently being financially supported by the Government and the Department for Business and Trade would reportedly prefer to find a joint buyer rather than nationalise the companies. Speciality Steels UK collapsed into state control in August after insolvency courts granted a compulsory winding up order. Ministers took control of British Steel in Scunthorpe in April; Tata Steel, in Port Talbot, was given a £500m rescue package in 2024; and Sheffield Forgemasters was nationalised in 2021.
🔎AI helps HMRC target fraudsters
HMRC is leveraging AI to identify benefit fraud through social media analysis. The tax office scans profiles for “lifestyle inconsistencies,” where social media posts do not align with declared income. This includes monitoring for signs of luxury purchases that contradict tax returns. An HMRC spokesperson confirmed that AI use is limited to criminal investigations and is subject to legal oversight.
🎸Live music spending soars
UK consumer spending on live music reached £6.68bn in 2024, a 9.5% increase from the previous year, according to the report from Live (Live music Industry Venues and Entertainment). This figure is 28.2% higher than in 2022 and over £2bn more than in 2019. However, the analysis shows that grassroots venues continue to close, with one in four late-night venues shutting since 2020. While the sector employed over 234,000 people in 2024, 78.8% of these workers were casual or freelance.
🏢M&A deals set to pass £50bn
The total value of mergers and acquisitions is expected to exceed £50bn in 2025 after Office for National Statistics data revealed that the value of domestic deals hit £3.4bn in Q2. The total for Q2, which was up £600m from the first three months of the year, came as the number of changes in major share ownership rose from 89 in Q1 to 501 in the second quarter. The value of UK firms taking over foreign companies halved to £4bn in Q2, while the total involving foreign firms snapping up UK companies came in at £9.3bn. Patrick Sarch, head of UK public M&A at White & Case, expects takeover activity to remain “robust” for the remainder of 2025, with the total value expected to exceed £50bn.
↘️Firms flag losses from political risks
According to a report by insurer Howden, many businesses have seen losses in international projects or investments due to geopolitical and economic risks. More than half of the senior risk and treasury function decision-makers polled said their firm saw an international investment suffer political losses between 2020 and 2025. Multinational firms said they had experienced issues related to currency conversion and ownership rights. Foreign government interference accounted for the largest average loss across all companies at $20m, followed by currency exchange difficulties ($16.2m) and political violence ($14.6m). Howden noted that firms with political risk insurance coverage reported losses $1.4m lower on average than those without coverage.
⚖️Rayner could face fine over stamp duty error
Angela Rayner, the Deputy Prime Minister, has referred herself to the Prime Minister’s Independent Adviser on Ministers’ Interests after admitting to an error in paying stamp duty on an £800,000 flat. Ms Rayner initially believed she was liable for the standard rate of stamp duty based on legal advice. However, further counsel revealed additional liabilities due to complex provisions related to a trust for her son. HMRC has launched an investigation into Ms Rayner’s tax affairs. Tax experts say she is at risk of a fine from the tax authorities, with this typically 20% or 30% of the underpaid tax.
🚨Latest Insolvencies
- Petitions to wind up (Companies) – BRITCOIN WALLET LTD
- Appointment of Administrator – GVE LONDON LTD
- Appointment of Administrator – LAURELS ESTATE AGENTS LIMITED
- Appointment of Liquidators – LONGITUDE HOLDING LIMITED
- Appointment of Liquidators – COLORFUL LONDON LIMITED
- Appointment of Liquidators – ALPINE MACRO UK LTD.
- Appointment of Liquidators – ACA (MIDLANDS) HOLDINGS LIMITED
- Appointment of Liquidators – RAWSON QUARTER LLP
- Appointment of Liquidators – HAMSARD 3537 LIMITED
- Appointment of Liquidators – SMCS SERVICES LIMITED
- Appointment of Liquidators – MACRO DEVELOPMENTS (PORTSMOUTH) LIMITED
- Petitions to wind up (Companies) – LEICESTER AUTOS LTD
- Petitions to wind up (Companies) – AUTOMOTIVE REMARKETING SOLUTIONS LTD
- Petitions to wind up (Companies) – HARP GROUP LTD
- Petitions to wind up (Companies) – GREEN HOME INSULATION SERVICES LIMITED
- Petitions to wind up (Companies) – MIDAS PROPERTY MANAGEMENT LTD
- Petitions to wind up (Companies) – CRITERION CIVILS AND STRUCTURES LTD
- Petitions to wind up (Companies) – L E H CONSTRUCTION LIMITED
- Petitions to wind up (Companies) – MERCURY CONSTRUCTION (SW) LTD
- Petitions to wind up (Companies) – AJM SERVICES COMPLETE CONSTRUCTION SOLUTIONS LTD
- Petitions to wind up (Companies) – LIMINAL 11 LIMITED
- Petitions to wind up (Companies) – MAGNATE MERCHANTS LTD
- Petitions to wind up (Companies) – ALDPIC LIMITED
- Petitions to wind up (Companies) – ADA CDB LIMITED
- Petitions to wind up (Companies) – ALLEN PRICE CARPENTRY & JOINERY LIMITED
- Petitions to wind up (Companies) – WALDORF MANAGEMENT LIMITED
- Petitions to wind up (Companies) – THE WILDE GROUP LTD.
- Petitions to wind up (Companies) – KANPES GLOBAL LTD
- Appointment of Liquidators – UK INTERCO 2 LIMITED
- Appointment of Liquidators – KEITH MASSIE ENGINEERING LIMITED
- Appointment of Liquidators – PRAXIS ALPHA PARTNERS LLP
- Appointment of Liquidators – AKOA CONSULTANTS 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.
What you get!
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.
Why CPA
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. You will 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!
Don’t borrow more money to improve your cash-flow. CPA suggests that business owners tackle the problem at its source. Are 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.