Business news 6 May 2025
A bumper bank holiday weekend of news. Business, tax, trade, interest rates, hacks, markets, 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.
Ministers to meet bank chiefs over SME funding
Ministers are set to meet with bank executives from HSBC, NatWest, and Lloyds to discuss how major lenders can support the Government’s growth strategy amid rising concerns that small businesses are struggling to secure necessary funding. Chancellor Rachel Reeves is said to be concerned that lending restrictions by high street banks could hinder the expansion of SMEs. A report from the Department for Business and Trade shows that loan approval rates for firms applying for bank finance are currently below 50%, with this a significant drop from the 67% recorded in 2018.
Construction insolvencies hit record high
Construction business insolvencies have risen to their highest-ever level, with analysis of corporate filings showing that around 840 construction firms appointed liquidators or administrators in the first four months of 2025. This marks a increase of more than 5% in the same period last year. Insolvency Service data shows that the sector accounted for 19.5% of all UK company failure in February, making it the hardest hit industry. The sector has been hit by a number of challenges, including the rising costs of staff and materials and a shortage of skilled workers.
High streets could be ‘taxed out of existence’
Alex Reilley, co-founder of bar and restaurant group Loungers and the chairman of the High Street Regeneration Group, has warned that there is an “acute danger” of the Government taxing British high streets “out of existence.” This comes after ministers opted to increase employers’ National Insurance contributions and lower the threshold at which NI is paid, with an increase to the minimum wage and a cut to business rates relief for smaller businesses adding to the pressure firms are facing. Helen Dickinson, the chief executive of the British Retail Consortium, has warned that retailers are “pulling back on local investment in new shops, reducing hiring plans or announcing job cuts.” PwC analysis shows that Britain’s high streets lost 3,802 businesses last year, having seen almost 5,000 closures in 2023.
US ends tariff exemption for low-cost items
The US has ended a tariff exemption for goods shipped from China worth less than $800 in a move that is likely to hit e-commerce sites such as Shein and Temu. Items shipped commercially will now be subject to new tariffs of 145%. Noting that scrapping the exemption now subjects even low-value imports to tariffs, EY chief economist Gregory Daco said this will squeeze “already-thin” margins and drive up prices. Temu has said it will stop selling Chinese goods direct to US consumers but will sell to Chinese companies set up in the US to distribute on.
Ministers mull import tax rethink
Shoppers in the UK may soon face increased prices on imported goods as the Government considers abolishing the £135 Low Value Imports threshold. Currently, items under this limit are exempt from customs duty, but experts warn that scrapping this could see costs climb significantly. The potential overhaul aims to support British retailers struggling against cheap imports, but it could lead to higher prices for consumers. Trade bodies are advocating for a reduction of the threshold to £40, which would increase the number of items subject to duty. Concerns have also arisen regarding the divergence of UK customs rules from those of the EU, potentially complicating post-Brexit trade.
Hacks a ‘wake-up call’ for businesses
With cyber-attacks making the headlines after Marks & Spencer, the Co-op and Harrods were targeted by hackers, Patrick Tooher in the Mail on Sunday says business leaders “are living in fear they could be next.” However, he notes that while 40% of company boards had a director with specific responsibility for cyber security in 2021, this has fallen to just over a quarter. Data from insurance broker Howden shows that such attacks have cost UK companies £44bn in lost revenue over the past five years and have affected 52% of firms. The National Cyber Security Centre estimates that 76% of UK businesses experienced a cyber security incident in the past year. Susannah Streeter of investment platform Hargreaves Lansdown says the recent cases serve as “a wake-up call for organisations to ensure their IT systems have fortress-like security,” noting that hacking incidents can cause both financial and reputational damage.
Experts expect BoE rate cut
Economists expect the Bank of England to cut interest rates by 0.25 percentage points to 4.25% this week, with Sandra Horsfield, an economist for Investec, saying it is a “near-certainty” that borrowing costs will be reduced. The Bank’s Monetary Policy Committee (MPC) is likely to reduce rates on the back of falling inflation, with Consumer Prices Index inflation slowing to 2.6% in March, from 2.8% in February, and services inflation falling from 5% to 4.7%. In the background of any decision is uncertainty over the impact of US tariffs, with Edward Allenby, UK economist for Oxford Economics, saying that “beyond May’s interest rate decision, the more important question is how US tariff announcements are influencing the MPC’s thinking.”
Barclays: Cuts could see 3.5% base rate
With the Bank of England expected to cut interest rates by 25 basis points to 4.25%, analysis by Barclays suggests that officials on the Bank’s Monetary Policy Committee (MPC) could be set to deliver four consecutive cuts. That would take the base rate down to 3.5%, which would be the lowest level since January 2023. Thomas Pugh, an economist at RSM UK, comments: “There is a chance of consecutive cuts in May and June, but we think inflationary pressures will keep the MPC on its quarterly path unless there is clear evidence of a downward shift in growth.”
US tariffs on car parts come into force
A 25% import tax on engines, transmissions and other key car parts has come into force in the US. This comes alongside a 25% import tax on cars that came into effect last month as the Trump administration looks to drive carmakers to manufacture their products in the US. Parts made in Mexico and Canada that are in compliance with a free trade agreement will be spared the duties.
HSBC warns over growth risks
HSBC has warned that global trade uncertainty poses “serious potential risks” to growth, with the economic outlook uncertain due to a series of “unknowns.” Mark Tucker, the bank’s chairman, said there was an “uncertain geopolitical and macroeconomic environment globally,” adding: “The overarching impact of the changing approach to global trade relations has been to increase economic uncertainty with serious potential risks to global growth.” He says the range of possible shifts in policy “make any attempt at medium-term projections very difficult.”
Bank boss flags trade uncertainty
NatWest chief executive Paul Thwaite has warned of a “pause in activity” among some of Britain’s biggest firms, saying corporate confidence has been hit by the possible impact of US tariffs. Mr Thwaite said: “There is no doubt that global economic uncertainty has increased and there has been a dip in confidence across both businesses and households.”
EU reset could hurt US deal
EU leaders are set to visit the UK this month for a summit that has raised concerns among Brexiteers about the potential impact on a trade deal with the United States. Senior figures, including former International Trade Secretary Sir Liam Fox, have warned that Prime Minister Sir Keir Starmer’s approach could lead to the UK being “tied into a relationship with the EU” that limits its ability to negotiate freely with other countries. David Campbell Bannerman, a former MEP who chairs the Conservative Democratic Organisation, said he is “deeply worried” about a possible “EU reset,” saying it “basically would tie our hands in all our trade deals” and represent “a huge step backwards for the UK’s independent trade policy.”
EU set to make it easier for UK professionals to work in the bloc
The European Commission is set to propose legislation that will make it easier for UK professionals to work in the EU, with plans to recognise “qualifications and skills of third country nationals.”
Self-assessment late fees come into force
HMRC has begun imposing a £10 daily fee on individuals who have not yet submitted their self-assessment tax returns, with the charge coming into force as it has been three months since the submission deadline. Alastair Douglas, CEO of TotallyMoney, notes that the charge is “on top of the staggering 8.5% late payment interest rate on outstanding balances.” In addition to the daily fines, late filers will incur an 8.5% interest rate on outstanding balances and a potential 5% penalty on unpaid tax from September. The tax office notes that those unable to pay due to specific circumstances may have penalties waived, and options for a Time to Pay arrangement are available for debts under £30,000.
Markets
On Friday the FTSE 100 closed up 1.17% at 8596.35 and the Euro Stoxx 50 closed up 2.42% at 5285.19.
US April payroll showed a gain of 177k above consensus estimates of 133k. Whilst lower than March ‘s 185k the reading was well above consensus and took the unemployment rate to 4.2%.
US Bond yields rose with the two year note increasing to 3.744% as the payroll data was seen as reinforcing the US Federal Reserve stance on US interest rates.
US food delivery giant DoorDash has agreed to buy Deliveroo for about $3.9 billion.
Wall Street’s risk-on brigade pushed the S&P 500 to its longest winning streak in two decades, with scars from April’s tariff shock healing on fresh signs of US-China diplomacy.
Mr Trump said he would slap a 100% tariff on films made abroad because he thinks Hollywood is dying a “very fast death”. Details were not clear but Netflix and Disney sold off.
The S&P 500 and the Nasdaq 100 rose more than 1% each on Friday, but US markets closed down yesterday, giving up over half those gains, with the S&P 500 at 5650.38 and the NASDAQ at 17844.24.
Warren Buffett announced his retirement from Berkshire Hathaway after 6 decades leading the conglomerate. Greg Abel was nominated to succeed him in leading the $1.2 trillion titan with $350 billion sitting in cash ready to be put to work. We will miss Buffett’s folksy wisdom and witticisms.
This morning on currencies, the pound is currently worth $1.3325 and €1.177. On Commodities, Oil (Brent) is at $61.85 (Oil has plunged after OPEC+ announced a second consecutive monthly increase in output) & Gold is at $3379. On the stock markets, the FTSE 100 is currently down 0.3% at 8570 and the Eurostoxx 50 is down 1% at 5226.
UK retail investors target US tech
UK retail investors increased their exposure to US technology stocks in April, despite market volatility. While BP was the most traded stock on AJ Bell’s platform, Nvidia, Amazon, and Tesla all proved popular. Saxo also noted activity focused on US tech stocks, with Amazon, Alphabet, Apple, Meta, and Microsoft leading the way, while analysis by Hargreaves Lansdown saw Nvidia and Tesla featuring prominently in trading volumes.
Half of profit warnings linked to tariffs and trade disruption
Analysis by EY shows that half of the profit warnings issued by UK-listed firms in April cited the impact of US tariffs and global trade disruption. April saw 26 profit warnings, representing a 24% on the 21 recorded in April 2024. Of the profit warnings issued last month, 13 cited tariffs. The data also shows that 62 profit warnings were issued in Q1. While this was down 11% year-on-year, it came before President Donald Trump announced new US tariffs. Jo Robinson, restructuring strategy leader at EY, said: “The first quarter of 2025 may now feel like a different era for many businesses, but the latest profit warnings data reveals underlying weaknesses that will be magnified by recent tariff disruptions and the resulting economic fallout.”
Big banks see trading income spike
FTSE 100 banks saw trading income jump in Q1, although concern over the impact of US trade policy has increased uncertainty around future earnings. HSBC posted pre-tax profit of £7.1bn, while Barclays and NatWest recorded profits of £2.7bn and £1.8bn, respectively. Lloyds, meanwhile, saw a 7% year-on-decline leave profit of £1.5bn. Dan Cooper, UK banking and capital markets leader at EY, said: “UK banks have reported better than expected first-quarter results with no material signs of asset quality deterioration, demonstrating resilience in the face of rising economic uncertainty and ongoing geopolitical tensions.” In the US, Wall Street banks reported record equity revenues in the first quarter.
Female-led firms face funding gaps
A new report reveals that female entrepreneurs, particularly mid-life women, still face major obstacles in securing funding, with this discrimination costing the UK economy up to £250bn. With many female business leaders forced to rely on personal savings or remortgage homes due to lack of support from banks and investors, just 19% of start-ups are led by women. The report, commissioned by HSBC and Noon, found that 69% of mid-life female entrepreneurs used personal funds, while only a small fraction received support from angel investors (4%), banks (3%), or venture capital (2%).
BOE: ‘More to do’ on climate change risks
The Bank of England has reiterated a call for firms to focus on risks related to climate change. Noting that the Bank was one of the first central banks “to create supervisory expectations for how the firms we regulate manage climate-related risks,” David Bailey, executive director for authorisations, regulatory technology and international supervision, said: “There is still more to do, and it remains critical that firms continue to focus on these risks.” He added that the Bank is set to update its supervisory expectations to incorporate lessons that it has learnt since it issued a supervisory statement on the matter in 2019. Highlighting that the proposed expectations will align with international standards for insurers and banks, he said this will include “robust risk management frameworks.”
Data shows UK-US pay gap
According to the OECD, full-time earnings in the US averaged $80,000 in 2023, nearly 50% more than the UK equivalent of £43,000. Analysis shows that the difference in mean earnings between the US and the UK is 49.5%, but the gap between the median rates is far lower, at 24%. In the UK in 2023, the top 10% of earners made 1.88 times median gross earnings in a year, compared to 2.44 in the US. James Cockett from the Chartered Institute of Personnel and Development comments: “Productivity levels in the US have grown at a much higher rate since the financial crisis than in the UK.”
Bank of Mum and Dad support hits £38.5bn
Since 2021, the Bank of Mum and Dad has provided £38.5bn in assistance to help children enter the property market, a 71% increase compared to the previous four years. In 2024 alone, parents contributed £9.6bn, up from £9.37bn in 2023. Last year, 173,500 first-time buyers received an average of £55,572 from their parents, representing 52% of all first-time buyers. Experts say that as mortgage rates begin to fall, the level of support from parents may decrease, as lenders are expected to relax affordability rules, allowing buyers to borrow more. However, the disparity in support needs remains significant, particularly in London, where the average deposit is 138% of income.
WH Smith buyer blocked from mass closures
Modella Capital, the new owner of WH Smith’s high street stores, is effectively blocked from initiating widespread store closures for 12 months due to a transitional services agreement (TSA). If Modella were to launch a company voluntary arrangement (CVA) within the first year of ownership, WH Smith could cancel the TSA, which allows Modella to use its systems post-sale. It is noted that Modella is already pursuing CVAs for two other retailers it owns, Hobbycraft and The Original Factory Shop. WH Smith’s 480-store high street chain was sold to Modella for £76m.
Latest Insolvencies
Winding up Order (Companies) – SKN DEVELOPMENTS (NO. 1) LIMITED
Petitions to wind up (Companies) – LEWIS HENIG JOINERY LIMITED
Petitions to wind up (Companies) – THE LITTLE WHITE PIG LIMITED
Appointment of Liquidators – CAMERON FURNACE COMPANY LIMITED
Petitions to wind up (Companies) – NP INDUSTRIAL SERVICES GROUP LTD
Petitions to wind up (Companies) – FABB SCOTLAND LIMITED
Petitions to wind up (Companies) – ZAK RAPID LTD
Petitions to wind up (Companies) – P.R.O.P.- STRESS CENTRE
Petitions to wind up (Companies) – DOUGLAS STEWART JOINERY LTD
Petitions to wind up (Companies) – MCB CIVILS LIMITED
Petitions to wind up (Companies) – AVADA ENVIRONMENTAL LTD
Petitions to wind up (Companies) – AVADA ENVIRONMENTAL CONSULTANCY LTD
Petitions to wind up (Companies) – PITLESSIE PANTRY LIMITED
Petitions to wind up (Companies) – IMAGE ON GLASS LIMITED
Petitions to wind up (Companies) – RIPARA LTD
Petitions to wind up (Companies) – GREEN FORTY DEVELOPMENT LIMITED
Petitions to wind up (Companies) – COFFEE GUYS LTD
Petitions to wind up (Companies) – ECOMAST LIMITED
Petitions to wind up (Companies) – VALINDRA GROUP LTD
Petitions to wind up (Companies) – STRATHEARN EVENTS LIMITED
Petitions to wind up (Companies) – HARCO TRANSPORT SOLUTIONS LTD
Petitions to wind up (Companies) – EE21 LIMITED
Petitions to wind up (Companies) – LARNE FARMS LIMITED
Petitions to wind up (Companies) – CENTRAL HULL RESTAURANT LIMITED
Petitions to wind up (Companies) – MOUNT PACKAGING SYSTEMS LIMITED
Petitions to wind up (Companies) – RA GROUP HOLDINGS LTD
Petitions to wind up (Companies) – SAFEPLAY SURFACING LTD
Petitions to wind up (Companies) – IKIGAI TECH 2 LIMITED
Petitions to wind up (Companies) – BLACK DOVE DEVELOPMENTS LTD
Appointment of Administrator – DJC LEISURE LIMITED
Appointment of Liquidators – WARRANTIX LIMITED
Petitions to wind up (Companies) – CTL AUDIOVISUAL SERVICES LIMITED
Petitions to wind up (Companies) – NORTH WEST RENOVATIONS (BOLTON) LIMITED
Appointment of Administrator – BLUE MARLIN IBIZA LONDON LTD
Appointment of Administrator – FAMEVALLEY LIMITED
Appointment of Liquidators – LH NO 2 LTD
Appointment of Administrator – THE ILKLEY BREWERY COMPANY LIMITED
Appointment of Liquidators – JJ ISQ LIMITED
Appointment of Administrator – ENVIN SENSING SOLUTIONS LIMITED
Appointment of Administrator – ENVIN SCIENTIFIC LIMITED
Appointment of Liquidators – FARNBOROUGH AIRPORT FREEHOLD LIMITED
Appointment of Liquidators – PCL FUNDING VI PLC
Appointment of Liquidators – PROFESSIONAL GOVERNANCE LTD
Appointment of Liquidators – PAVILLION MORTGAGES 2021-1 PLC
Appointment of Liquidators – NEWELL COMMERCIAL LIMITED
Appointment of Liquidators – PJK PROPERTY LIMITED
Appointment of Liquidators – FRESH FLOWER MARKETING LLP
Appointment of Liquidators – MEDICONTRACTS LIMITED
Appointment of Liquidators – REGENT SQUARE LIMITED
Appointment of Liquidators – PE PAGANI HOLDING II LIMITED
Appointment of Liquidators – COMPART SYSTEMS LIMITED
Appointment of Liquidators – DVB TRANSPORT FINANCE LIMITED
Appointment of Liquidators – PE PAGANI HOLDING LIMITED
Petitions to wind up (Companies) – WORCESTERSHIRE BUILDING SUPPLIES LTD
Appointment of Liquidators – KIGH 2000 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!