Business news 6 February 2025
Services companies cut jobs at fastest pace since 2008. Housebuilders, Bank of England rates, imports to EU, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Services companies cut jobs at fastest pace since 2008
The UK private sector economy experienced slower-than-expected growth last month, with businesses laying off staff at the fastest rate since the 2008 financial crisis. The final S&P Global composite purchasing managers’ index (PMI) rose slightly to 50.6 in January, indicating marginal growth, but employment numbers fell significantly due to rising payroll costs and subdued demand. Tim Moore, economics director at S&P Global Market Intelligence, noted: “The twin perils of shrinking workloads and rising payroll costs meant that many service providers put the brakes on recruitment in January.” Despite a slight recovery in manufacturing output, the overall economic outlook remains bleak, with flatlining GDP and expectations of a 25 basis-point interest rate cut by the Bank of England. Inflation decreased to 2.5% in December, but rising employer national insurance contributions and minimum wage increases are expected to further strain the economy.
Housebuilders face winter workload slump
According to a survey by the Royal Institution of Chartered Surveyors (Rics), a majority of developers reported a decrease in activity over the winter months, attributing this to financial constraints from high interest rates, planning challenges, and labour shortages.
Bank of England expected to cut rates
Policymakers at the Bank of England will meet today to decide on interest rates and are widely expected to back the third rate cut in six months. The Banks Monetary Policy Committee is forecast to lower borrowing by 0.25 percentage points from 4.75% to 4.5%. Simon French, head of research at Panmure Liberum, thinks the BoE will implement six interest rate cuts this year but won’t pivot to faster cuts until late summer. French is somewhat more optimistic about declining inflation than the market consensus, which predicts three cuts in 2025.
EU scraps tax-free exemption on cheap imports
A tax-free exemption for imports of goods worth less that €150 (£125) is being scrapped by the EU to prevent online retailers such as Temu and Shein from flooding the market. The EU Commission said on Wednesday that 91% of the roughly 4.6bn low-value shipments into the bloc came from China last year. Brussels also claimed that some 96% of goods sold on such e-commerce platforms do not comply with the EU’s safety standards. Going forward, online retailers deemed “very large platforms” will be made to “collect the relevant duty and VAT” and “ensure the compliance of the goods with other EU requirements,” Henna Virkkunen, the EU’s tech commissioner, said
Markets
Yesterday, the FTSE 100 closed up 0.61% at 8623.29 and the Euro Stoxx 50 closed up 0.12% at 5271.12. Overnight in the US the S&P 500 rose 0.39% to 6061.48 and the NASDAQ rose 0.19% to 19692.33.
UK markets were climbing ahead of the Bank of Englands latest policy announcement,
This morning on currencies, the pound is currently worth $1.242 and €1.1988. On Commodities, Oil (Brent) is at $75.12 & Gold is at $2860. On the stock markets, the FTSE 100 is currently up 1.25% at 8730 and the Eurostoxx 50 is up 0.58% at 5300.
Supermarkets unite against tax hike
Every major supermarket in the UK, including Tesco, Sainsbury’s, Morrisons, and Asda, have signed a letter condemning Labour’s tax raid on farmers. The letter, organised by National Farmers Union and signed by 57 businesses across the food supply chain, states that the policy puts “the long-term stability of the nation’s food resilience” at risk and should be dropped.
Lloyds hit with £1bn tax bill after legal challenge fails
Lloyds Banking Group has been ordered to pay £1bn to HMRC over the disposal of billions of euros worth of Irish property loans in the wake of the financial crisis. Lloyds had claimed £3.8bn in tax relief on losses it incurred on the assets, which it inherited as part of its £12bn government-brokered rescue of Halifax Bank of Scotland in 2008. But HMRC rejected the bank’s claim, saying it was liable to pay additional corporation tax. The tax office argued the bank’s desire to claim tax relief motivated the decision to quit Ireland. Lloyds denies this and says it will appeal.
Garden centres cut staff hours and push up prices
Figures from the Horticultural Trades Association (HTA) show the price of roses, bedding plants and shrubs increased by 4% in the year to December 2024 driven by tax increased in the Chancellor’s Budget. The change in inheritance laws has hit small garden centres while the increase in National Insurance has meant staff numbers have had to be cut.
M&A activity set to soar with focus on growth
The UK mergers and acquisitions (M&A) landscape is anticipated to strengthen in 2025, driven by a recent overhaul at the Competition and Market Authority (CMA). A report by Bain & Company revealed that private equity dealmaking surged nearly threefold in 2024, with the total UK M&A market reaching $133bn, a 38% increase year-on-year. Alastair Chapman, global head of antitrust at Freshfields, remarked: “In the global race for growth, the UK Government does not want the CMA to be an impediment.” The combination of regulatory changes, a focus on growth and the fact that UK-listed companies are widely viewed as undervalued is expected to lead to a more favourable environment for M&A activity.
IMI
IMI said it suffered a cyber security incident. The incident involved “unauthorised access to the company’s systems”. “As soon as IMI became aware of the unauthorised access, the company engaged external cyber security experts to investigate and contain the incident. In parallel, the company is taking the necessary steps to comply with our regulatory obligations,” it added
Nissan and Honda
Talks between Nissan and Honda, two Japanese car-makers, to create the world’s third-largest carmaker by sales, are reported to be close to collapse with an agreement to save the struggling Nissan proving unreachable.
Companies linked to tax fraud director wound up
Following a raid by HMRC last September, a dozen companies associated with Green Jellyfish and its director Daniel Mark Robinson are being liquidated. The companies, primarily based in Norwich, were linked to a tax relief fraud investigation that resulted in 11 arrests.
Latest Insolvencies
Petitions to wind up (Companies) – ENVOPAP LIMITED
Appointment of Administrator – PAINTWELL LIMITED
Appointment of Administrator – KENT,BLAXILL & CO,LIMITED
Appointment of Administrator – PROMAIN (UK) LIMITED
Appointment of Liquidators – SIMON LONGSTAFF LIMITED
Appointment of Liquidators – RETAIL AUDITS.COM LIMITED
Appointment of Liquidators – WOMACK PARTNERS LIMITED
Appointment of Liquidators – REMINGTON ENTERPRISE IT LTD
Appointment of Liquidators – PROSPERO CONSULTING LIMITED
Appointment of Liquidators – RIVIERA SUPPORT LIMITED
Appointment of Liquidators – GODLY PROPERTIES LIMITED
Appointment of Liquidators – BM INFOTECH LTD
Winding up Order (Companies) – MPB DEVELOPMENTS LIMITED
Winding up Order (Companies) – TAYLOR JONES PARTNERSHIP LIMITED
Appointment of Administrator – GUNNA DRINKS LIMITED
Appointment of Administrator – J.B.KIND LIMITED
Appointment of Liquidators – LAGONDA RUSSELL HOLDCO LIMITED
Appointment of Administrator – ST AUGUSTINES COLLEGE LTD
Appointment of Liquidators – WILL B SPINES LIMITED
Winding up Order (Companies) – GRAHAM NORTHERN SERVICES LTD
Appointment of Administrator – ESCALLA TS LTD
Appointment of Liquidators – DUTTLAN HOTELS LIMITED
Petitions to wind up (Companies) – KIRK REFRIGERATION LIMITED
Appointment of Liquidators – CIBUS BINGHAM LIMITED
Appointment of Liquidators – 46 COFFEE HOUSE LTD
Appointment of Administrator – RA PROJECT 5X LIMITED
Appointment of Liquidators – DW THURMASTON LIMITED
Appointment of Liquidators – BLACKBERRY CONSULTING LTD
Appointment of Liquidators – P GRAY & C GRAY CONSULTING 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.