Business news 5 August 2025
Late payment reporting, rate cuts, minimum wage hike, FCA’s car finance redress scheme, migration, shopping, crypto, tax, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
📒 Why is Britain adding to its Byzantine reporting framework?
Gareth Sykes at Herbert Smith Freehills questions the UK Government’s plans to require large companies to detail how long it takes to pay suppliers in their annual reports in the Financial Times. As CPA has often said, asking big companies to report on payment practices is not going to change them . Nobody will take any notice. Add to the cost of late payment by increasing compensation and removing barriers to claim it and you might make companies change when there is a financial cost to the late payment culture.
🏦BoE expected to continue cutting rates
The Bank of England is expected to cut interest rates by 25 basis points to 4% at Thursday’s meeting, but future cuts remain uncertain. James Smith, UK economist at ING, noted the conflicting economic signals, including rising inflation at 3.6% and an increase in unemployment to 4.7%. He stated: “There’s no smoking gun that might prompt a fundamental rethink in the Bank’s outlook just yet.” But Peder Beck-Friis, an economist at Pimco, says: “While inflation has been surprisingly firm, we see good reasons to expect a slowdown. Regulatory price hikes, including in employment taxes, have pushed prices up, but wage growth is softening and the labour market is weakening.” He adds: “We expect the Bank to accelerate rate cuts later this year, with the policy rate settling near 2.75% next year.”
⚖️Rayner pushes for minimum wage hike
Angela Rayner, the deputy prime minister, is advocating for an increase in the minimum wage for 18-year-olds, aiming to eliminate the £2 disparity with older workers. Currently, those aged 21 and over earn at least £12.21 per hour, while 18 to 20-year-olds earn £10. Rayner has tasked the Low Pay Commission with developing a plan to remove these age bands. However, business leaders, including Kate Nicholls of UKHospitality, warn that this could lead to job losses, stating: “Now is not the time to make big jumps again in employment costs, when we have already seen 84,000 jobs lost in the hospitality sector over the last six months.”
🚗FLA hits back at FCA’s redress scheme
The Finance and Leasing Association (FLA) has criticised the Financial Conduct Authority’s (FCA) proposed redress scheme for car finance mis-selling, calling it “completely impractical.” Stephen Hadrill, FLA’s representative, expressed concern about the scheme covering loans dating back to 2007, stating that both firms and customers may lack necessary documentation. The FCA estimates the scheme could cost the industry between £9bn and £18bn, with individual compensation likely under £950. Hadrill warned that the scheme’s costs could lead to fewer car financing options for consumers, saying: “The more expensive lending becomes, the more expensive borrowing becomes.”
UK Financial Conduct Authority chief executive Nikhil Rathi has little sympathy for lenders’ complaints that they would struggle to pay redress on car loans granted as far back as 2007 owing to a lack of customer records, he told the Financial Times. “Now is not the time to haggle with us but to help put things right for consumers,” Rathi said.
💁 UK’s reliance on migration ‘unsustainable’
An executive at the Office for Budget Responsibility (OBR) has warned that mass migration into Britain is creating “serious problems” for public services and living standards. David Miles, an economics professor, urged the Labour Government to prioritise getting Britons back to work instead of relying on overseas workers to grow the economy. He said migration doesn’t necessarily boost GDP and recent record rises in migration were putting a “substantial” burden on the public finances. OBR analysis published last year showed the average low-earner who comes to Britain aged 25 costs the country roughly £150,000 by the time they can claim the state pension.
🛍️Britons flock to tax-free shopping abroad
UK shoppers are increasingly opting for tax-free shopping in the EU, spending 16% more in 2025 compared to last year, according to the Association of International Retail (AIR). The trend follows the introduction of VAT refunds for British tourists post-Brexit. Derrick Hardman, AIR’s chairman, noted that the tax rebates outweigh travel costs. He expressed concern over British shoppers taking their business abroad, urging the UK to reconsider its VAT-free shopping scheme. AIR analysis suggests that reinstating tax rebates could boost the UK economy by £3.65bn annually.
📈Markets
💱This morning on currencies, the pound is currently worth $1.328 and €1.151 .
On Commodities, 🛢️Oil (Brent) is at $68.16 & 💰Gold is at $3362.
📈On the stock markets, Overnight in the US the S&P 500 rose 1.47% to 6329.94 and the Composite NASDAQ rose 1.95% to 21053.58. This morning, after sold rises yesterday, the FTSE 100 is currently up 0.33% at 9158.87 and the Eurostoxx 50 is up 0.14% at 5249.58.
On the continent the focus was on Switzerland which has been in a state of shock since the 39% tariff rate was set by the US government last week. The Swiss blue chip index fell 0.4% yesterday, however Swiss exporters were weaker, Roche fell 1.4%, Nestle was holding onto levels of a decade ago.
In New York shares in Berkshire Hathaway fell $10.49 after taking a large $3.8bn impairment on its Kraft Heinz holding and as the co halted its share buyback due to weaker insurance results. CEO Warren Buffett said operating earnings fell 4% in Q2 to $11.16bn. Communication services and information technology stocks led Monday’s gains in the US amid strength in tech titans Meta and Alphabet. Meanwhile, the Magnificent Seven index rose 2% on the day, with Nvidia outperforming.
Morgan Stanley, Deutsche Bank and Evercore all cautioned that the S&P 500 Index is due for a near-term drop thanks to the darkening economic picture with Evercore saying it could drop 15%.
BP jumped after reporting what appears to be a large find offshore Brazil at Bumerangue that contains a 500m oil column according to early data. The find is said to be its biggest discovery in 25 years and is 100% owned by BP. Meanwhile, BP said its new chairman will conduct a review of the entire portfolio and the company will seek to cut costs beyond its current targets, as the oil and gas major works to reverse years of poor performance. BP announced Q2 adjusted net income of $2.4bn beating forecasts of $1.8bn.
Diageo reported 2025 results showing sales of $20,245m down 0.1% whilst EPS fell 8.6% to $1.642. The distiller’s free cash flow rose $165m to $2.75bn and the board have held the dividend at $1.035. The board increased their cost savings target by $125m to $625m. However Diageo now expects the US tariff impact to be $200m.
💶 The European Union announced Monday that it is suspending for six months its planned countermeasures against the United States’ tariffs, which which were set to take effect this week. “On 27 July 2025, European Commission President Ursula von der Leyen and US President Donald J. Trump agreed a deal on tariffs and trade,” the EU Commission spokesperson for trade said in a statement.
🚗 Tesla has granted chief executive Elon Musk a new pay package of 96 million shares, worth about $29 billion, as it seeks to secure his leadership after a court overturned his original record-setting deal. The award is structured to gradually increase Musk’s voting power and keep him focused on Tesla’s long-term strategy.
India called Donald Trump’s threat of higher tariffs over its purchase of Russian oil “unjustified and unreasonable”.
💲Britain risks falling behind in crypto
Former chancellor George Osborne has criticised the UK’s slow approach to cryptocurrency regulation, stating that the country risks falling behind in the financial revolution. In the Financial Times on Monday, Osborne argued that UK regulators have imposed restrictions that hinder market development, particularly regarding stablecoins. Without proactive measures, London may lose its status as a financial centre, he warned. The Independent’s James Moore agrees, adding that UK officials should not fear crypto. Although Osborne’s views are obviously informed by his position on the global advisory council for Coinbase, that doesn’t make him wrong, he says. The Chancellor needs to “get to work” concludes Moore: “There is – if she can but see it – a potential win for her here. It’s risky, to be sure. But so is getting out of bed in the morning.” The Guardian notes that another advocate from the era of the Conservative-led coalition government is another former chancellor, Philip Hammond, who is chair of the crypto firm Copper. Finally, Mehreen Khan explains in the Times that central banks view stablecoins as an “existential threat” to their control over money.
💷Tories urge Chancellor to rule out tax hikes
The Conservatives are pressing Chancellor Rachel Reeves to reject proposed tax increases in the autumn budget. They argue that changes, such as scrapping the £500 dividend allowance, could push 5.22m more individuals into paying investment taxes. This follows a leaked memo from Angela Rayner suggesting tax hikes to raise £325m annually. Shadow chancellor Mel Stride stated: “The Government need to urgently rule out these tax hikes on savers and investors before speculation causes further economic harm.” The Chancellor has not ruled out specific tax increases, citing a multibillion-pound budget shortfall.
💰Pension pots drained as tax fears rise
Retired individuals are withdrawing significant amounts from their pension pots due to concerns over potential inheritance tax (IHT) liabilities. Official figures from HMRC indicate that £5bn was withdrawn in the first quarter of 2025, a 24% increase from the previous year. The number of taxable withdrawals above the 25% tax-free limit rose by 13% to 672,000. Craig Rickman, head of personal finance at Interactive Investor, noted that many pensioners are acting to avoid burdening their heirs with a 40% tax charge.
🛫Wealthy Brits flee UK amid tax changes
The UK Government’s recent non-dom tax reforms are prompting a significant exodus of wealthy individuals, including high-net-worth British nationals. Wealth advisers report a surge in inquiries from affluent Brits seeking relocation to avoid inheritance tax (IHT) liabilities. James Quarmby, a partner at Stephenson Harwood, noted a “large increase in British clients” seeking advice since the changes took effect. The new rules allow individuals to escape UK IHT after ten years abroad. Experts warn that this trend could worsen public finances, with potential losses estimated at £12.2bn if many wealthy individuals leave the UK.
🏠HMRC warns of stamp duty scams
HMRC has warned home buyers about fraudulent firms offering to reclaim stamp duty on properties needing renovation by falsely classifying them as non-residential. Anthony Burke, HMRC’s deputy director, cautioned buyers against allowing agents to make repayment claims on their behalf, stating: “If the claim is inaccurate, you could end up paying more than the amount you were trying to recover.”
⚖️River Island restructuring plan goes to court
A High Court judge will this week decide whether to approve River Island’s plan to close 33 stores, cut rents on a further 71 shops and write off a series of debts in order to stay afloat. The plan, drawn up by advisers at PwC, was not approved by a sufficient range of creditors at a vote held last Friday. Therefore, the plan will be put before the High Court on Thursday for a formal decision on whether to approve the restructuring.
🚨Latest Insolvencies
Appointment of Administrator – HUMBER SERVICES LTD
Petitions to wind up (Companies) – CUBIC7 LTD
Appointment of Administrator – SLIM AT HOME LIMITED
Appointment of Administrator – OPTIMAL COMPLIANCE SERVICES (LONDON) LLP
Appointment of Administrator – ARGENTEX FOREIGN EXCHANGE LIMITED
Appointment of Liquidators – COLMER CONSULTANCY LTD
Appointment of Liquidators – VENUS FISH BARS LIMITED
Appointment of Liquidators – FRESHFORD DEVELOPMENTS LIMITED
Appointment of Liquidators – MAJIKTREE CONSULTING LIMITED
Appointment of Liquidators – SPECIALIST CARDIAC SURGERY LIMITED
Appointment of Liquidators – TROGLOTECH LIMITED
Appointment of Liquidators – WALTONWAGNER DEVELOPMENTS (DULWICH) LTD
Appointment of Liquidators – WEALD PARTNERS LTD
Appointment of Liquidators – ROY T. WARD (INVESTMENTS) LIMITED
Appointment of Liquidators – GD COURSE LIMITED
Appointment of Liquidators – VITTORIA (MIDLANDS) LIMITED
Appointment of Liquidators – ANDREW DUNCAN & CO (SCOTLAND) LIMITED
Petitions to wind up (Companies) – THE AVENUE CHILDCARE SERVICES
Appointment of Liquidators – WILDWOOD PARK LIMITED
Appointment of Liquidators – HILLCREST PARK LIMITED
Winding up Order (Companies) – UPPER STREET FILM AND TV LIMITED
Petitions to wind up (Companies) – CREATION STORIES LTD
Petitions to wind up (Companies) – FOUR TWELVE INVESTMENTS LTD
Petitions to wind up (Companies) – VARAMIS LTD
Petitions to wind up (Companies) – LUXURY HOUSE LONDON LTD
Petitions to wind up (Companies) – DESIGN ON TOAST LIMITED
Appointment of Liquidators – KAELAN LIMITED
Appointment of Liquidators – VK FINSERV LTD
Appointment of Liquidators – MARFORD PROPERTIES 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.