Business news 7 February 2025
BoE cuts interest rates and growth forecast. Inflation expectations fall in January. Construction sector sees sharp decline. Retail, family wealth, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
BoE cuts interest rates and growth forecast
The Bank of England has cut interest rates from 4.75% to 4.5%, taking the base rate to the lowest level for more than 18 months. Bank Governor Andrew Bailey said the Monetary Policy Committee is “monitoring the UK economy and global developments very closely and taking a gradual and careful approach to reducing rates further.” The Bank has also halved its growth forecast, saying that it expects the economy to grow by 0.75% in 2025, with this down from a previous estimate of 1.5%. In its quarterly inflation report, the Bank said economic growth had been “broadly flat since March last year.” While the economy saw zero growth between July and September, the Bank expects a decline of 0.1% in Q4, having previously forecast growth of 0.3%. The Bank expects the economy to grow by 0.1% in Q1 2025. It had predicted growth of 0.3%. It also forecasts that inflation will rise to a peak of 3.7% in the third quarter of this year, up from a previous estimate of 2.8%.
Inflation expectations fall in January
British households expect inflation to hit 3.5% in a year’s time, according to a monthly poll from Citi and YouGov, with this down on a previous estimate of 3.7%. For five to 10 years’ time, respondents said they expect the rate to be 3.7%, down from 3.9%. Citi economist Benjamin Nabarro commented: “With headline inflation set to accelerate markedly over the coming months, uncertainty around underlying inflation dynamics is likely to remain elevated for some months yet.”
Construction sector sees sharp decline
Activity in the construction sector experienced a significant decline in January, marking the first contraction in nearly a year. The S&P Global purchasing managers’ index (PMI) for construction fell from 53.3 in December to 48.1 in January, below all forecasts from economists surveyed by Reuters. Key factors contributing to the downturn include economic uncertainty and delayed decision-making on major projects. Kelly Boorman, national head of construction at RSM UK, commented: “Construction is also bracing for post-budget headwinds including rises to employers’ National Insurance contributions which could worsen labour shortages,” while Atul Kariya of MHA warned that the industry – and the wider economy – “are now starting to see the full impact of the proposed tax rises and increased labour costs in the Autumn Budget.” Despite the challenges, Elliott Jordan-Doak from Pantheon Macroeconomics anticipates a rebound in activity “as the weather drag abates, interest rates are cut and potential planning reforms… keep a floor under activity.”
Discounts drive up footfall
Retail footfall was up 1.4% year-on-year in January, marking the first annual growth in the opening month of the year since 2016. Analysis by MRI Software shows that shopping centre footfall was up 1.8%, while retail parks saw a 1.4% increase and high street footfall rose 1.1%. Separate analysis from BDO shows that while in-store sales were up 3.2% in January, there was a heavy reliance on discounted purchases. Sophie Michael, head of retail and wholesale at BDO, said January trading “requires heavy encouragement through discounting,” adding that “this delayed spending will no doubt have a significant impact on already-thin margins.”
Families’ wealth declines by £15k
Analysis by Telegraph Money shows that a typical British family is now £15,000 poorer annually compared to five years ago, primarily due to increased taxes, mortgage rates, and energy bills. The pandemic significantly boosted demand for housing, with average detached property prices rising by £50,000 from January 2020 to late 2021. However, families are now facing higher mortgage rates, with repayments increasing by nearly £3,800 annually. Despite a rise in pre-tax income, families are feeling the pinch as their disposable income has only increased by 3.4% in real terms. The energy crisis has exacerbated the situation, with energy bills and council tax rising significantly since 2020.
Markets
Yesterday, the FTSE 100 closed up 1.21% at 8727.28 and the Euro Stoxx 50 closed up 1.62% at 5356.63. Overnight in the US the S&P 500 rose 0.36% to 6083.57 and the NASDAQ rose 0.51% to 19791.99.
US Treasury Secretary Scott Bessent said he is favour of a strong US dollar and has no plans to alter the government’s debt-issuance plans. Investors are focusing on the US monthly jobs report and away from this week’s tariff drama.
This morning on currencies, the pound is currently worth $1.245 and €1.1995. On Commodities, Oil (Brent) is at $74.83 & Gold is at $2865. On the stock markets, the FTSE 100 is currently down 0.3% at 8702 and the Eurostoxx 50 is down 0.15% at 5348.
Amazon gave disappointing earnings guidance and warned it could face capacity constraints in cloud computing, despite plans to invest some $100 billion this year.
The BoE’s Monetary Policy Committee, with seven out of nine members voting in favor, lowered the interest rate by 25 basis points to 4.50%. Two members called for a more significant 50 basis point reduction, hinting at the possibility of additional rate cuts in the months ahead.
The UK’s largest company by market cap, AstraZeneca, bolstered the FTSE after posting impressive full-year results. The pharmaceutical giant saw an 18% revenue increase to $54 billion and raised its long-term sales forecasts, driven by a strong performance in its oncology division.
Eli Lilly reported mixed results for the fourth quarter, even as demand for its blockbuster weight loss drug Zepbound and diabetes treatment Mounjaro soared. The company’s quarterly earnings topped Wall Street estimates, but sales fell just short as Mounjaro saw lower realized prices. Zepbound and Mounjaro have now underperformed expectations for two straight quarters, with the company previously pointing to issues around inventory decreases among wholesalers.
Data Centres
Meta, Alphabet, Amazon and Microsoft spent a combined $180 billion on data-centre infrastructure in the last year.
House Prices
UK House Prices hit a record high at the start of the year, said lender Halifax. House prices rose 0.7% in January from December. They had fallen 0.2% in December from November. “This increase pushed the average property price to a new record high of £299,138,” Halidax analyst Amanda Bryden said. However, the pace of annual growth eased to 3.0% in January, from 3.4% in December. It was the slowest annual growth since July.
Buyers race to beat stamp duty change
Google searches for “stamp duty deadline” surged by 250% last month as home buyers rush to complete purchases before the upcoming changes in England and Northern Ireland. The current exemption for first-time buyers on homes up to £425,000 will shift to a threshold of £300,000 from April 1, resulting in potential savings of up to £5,000.
Climate
This January was the warmest on record, with global surface air temperatures reaching 13.23°C, which is 1.75°C above pre-industrial levels, according to the EU’s Copernicus Climate Change Service. The record heat defied expectations of a slowdown in global warming due to the cooling La Niña phenomenon. Scientists warned of a climate breakdown.
Latest Insolvencies
Petitions to wind up (Companies) – R & H ENTERTAINMENT LTD
Petitions to wind up (Companies) – CAD MANAGEMENT LIMITED
Petitions to wind up (Companies) – MULBERRY HOMES (MIDLANDS) LIMITED
Petitions to wind up (Companies) – THC SOUTH WEST LIMITED
Petitions to wind up (Companies) – FIRE SAFETY 4YOU LTD
Petitions to wind up (Companies) – COULSON LIFTING SERVICES LIMITED
Petitions to wind up (Companies) – WINDOW TECH ADVISORY LTD
Petitions to wind up (Companies) – COINYE LIMITED
Petitions to wind up (Companies) – TOWER HIRE AND SALES LTD
Petitions to wind up (Companies) – CAN (NEWCASTLE) LTD
Petitions to wind up (Companies) – SILVER CLEANERS LTD
Petitions to wind up (Companies) – COUPERS CARE FEES LTD
Petitions to wind up (Companies) – PROJECT SERVICES LONDON LTD
Petitions to wind up (Companies) – INTELLIGENT MIST LIMITED
Petitions to wind up (Companies) – SIM GENERAL REPAIRS LTD
Petitions to wind up (Companies) – VSK INFOTECH LIMITED
Petitions to wind up (Companies) – HEXHAM AND DISTRICT EX-SERVICE CLUB LIMITED
Petitions to wind up (Companies) – YANI CARE SOLUTIONS LIMITED
Petitions to wind up (Companies) – EMPATHY CARE24 LIMITED
Petitions to wind up (Companies) – MET GROUP LTD
Petitions to wind up (Companies) – HUA TANG LTD
Petitions to wind up (Companies) – ELYAMYN EMPIRE UK LTD
Petitions to wind up (Companies) – BMK CONSTRUCTIONS LIMITED
Petitions to wind up (Companies) – LONDON BOX LTD
Petitions to wind up (Companies) – CHICKEN RICE LTD
Petitions to wind up (Companies) – MIKE SOUTH PROJECTS LIMITED
Petitions to wind up (Companies) – DEMPO PRODUCTIONS LIMITED
Petitions to wind up (Companies) – CLOVER TRUCK AND PLANT HIRE LIMITED
Petitions to wind up (Companies) – SIRONA INTERNATIONAL LIMITED
Petitions to wind up (Companies) – QUALITATIVE DECISIONS OF CONSTRUCTION & REPAIR LTD
Petitions to wind up (Companies) – KAZER SYSTEMS LTD
Petitions to wind up (Companies) – PROCUREMENT MANAGEMENT LIMITED
Petitions to wind up (Companies) – SOCIOAPPS LIMITED
Petitions to wind up (Companies) – ZEELA CONSULTING LTD
Petitions to wind up (Companies) – CAMOB LTD
Petitions to wind up (Companies) – BEST ELECTRICAL SERVICE TEAM LTD
Petitions to wind up (Companies) – TEXTURE AGENCY LTD
Petitions to wind up (Companies) – A&D LEISURE AND HOSPITALITY LIMITED
Petitions to wind up (Companies) – PJ SOUTHPORT LTD
Petitions to wind up (Companies) – GVB CONSTRUCTION LTD
Petitions to wind up (Companies) – NALU LIMITED
Petitions to wind up (Companies) – SANFORD GROUP LIMITED
Petitions to wind up (Companies) – TG & SONS GROUP LIMITED
Petitions to wind up (Companies) – DAY LIDDELL LIMITED
Petitions to wind up (Companies) – PROMISES OF CARE LIMITED
Petitions to wind up (Companies) – SPORTS INNOVATION LIMITED
Petitions to wind up (Companies) – XECUTIV RESORT SOLUTIONS LIMITED
Petitions to wind up (Companies) – TOTTERIDGE BUILDING SERVICES LIMITED
Petitions to wind up (Companies) – CREATION SPORTS MANAGEMENT LTD
Petitions to wind up (Companies) – REDWOOD GROUP LTD
Petitions to wind up (Companies) – FIRST DOT U.K LIMITED
Petitions to wind up (Companies) – KYNOSTIC M.G.A LTD
Petitions to wind up (Companies) – EMPIRION LIMITED
Petitions to wind up (Companies) – CHAMBERS ESTATES KENT LTD.
Petitions to wind up (Companies) – VULCAN SHOTBLASTING LIMITED
Petitions to wind up (Companies) – TUSK CAPITAL MANAGEMENT LIMITED
Petitions to wind up (Companies) – PLATINUM PAY LIMITED
Petitions to wind up (Companies) – ROXY MEDIA LIMITED
Petitions to wind up (Companies) – DOT DESIGN U.K. LIMITED
Petitions to wind up (Companies) – AGE GRACEFULLY LIMITED
Petitions to wind up (Companies) – HEARTBREAKERS (SO15) LTD
Petitions to wind up (Companies) – AMAN CARE LIMITED
Petitions to wind up (Companies) – AUTOGRAPH SPORTS MANAGEMENT LIMITED
Petitions to wind up (Companies) – LOVE CAKE CAFE LIMITED
Petitions to wind up (Companies) – ENI SOLUTIONS LTD
Petitions to wind up (Companies) – TURION SERVICES LTD
Petitions to wind up (Companies) – 3M INSTALLATIONS LTD
Petitions to wind up (Companies) – AIRS ASBESTOS REMOVAL (2014) LTD
Petitions to wind up (Companies) – NORTHWOOD COACHWORKS LIMITED
Petitions to wind up (Companies) – CMH PAYROLL SERVICES LIMITED
Petitions to wind up (Companies) – MKD (UK) LIMITED
Petitions to wind up (Companies) – TORQUAY’S OLDEST PUB LIMITED
Petitions to wind up (Companies) – AASEYA SOFTWARE SERVICES (UK) LIMITED
Petitions to wind up (Companies) – BOSS MERCEDES LTD
Petitions to wind up (Companies) – GLOBAL WORLDWIDE FOREX LIMITED
Appointment of Administrator – KENT BLAXILL HOLDINGS LTD
Appointment of Administrator – PRESTEK LTD
Appointment of Administrator – ECLOUD ELECTRONIC CIGARETTES LIMITED
Appointment of Administrator – TRADE 1ST LIMITED
Appointment of Administrator – PAINTWELL HOLDINGS LIMITED
Appointment of Administrator – PAINTWELL TOPCO LIMITED
Appointment of Administrator – MASLIFE LTD
Appointment of Liquidators – ICE TIGER LIMITED
Appointment of Administrator – ADSTOCK BULK SOLUTIONS LIMITED
Appointment of Liquidators – SONATIO LIMITED
Appointment of Administrator – BENBOW STEELS LIMITED
Appointment of Liquidators – INDIUK LTD
Appointment of Administrator – BROMBOROUGH PAINTS LIMITED
Appointment of Liquidators – AGILE SOUP LTD
Appointment of Liquidators – OLD HCVS LIMITED
Appointment of Liquidators – STELLAR UK 1 LIMITED
Appointment of Liquidators – SHRIDHA IT CONSULTANCY LTD
Appointment of Liquidators – MALLO CONSULTANCY LIMITED
Appointment of Liquidators – HTK CONSULTING LIMITED
Appointment of Liquidators – RIVIERA CARE LIMITED
Appointment of Liquidators – WEBSTER & CO (YORK) LIMITED
Appointment of Liquidators – SHAPING SOLUTIONS LTD
Appointment of Liquidators – STOW CONSULTANTS LIMITED
Appointment of Liquidators – ACELINE CONSULTING LIMITED
Appointment of Liquidators – D.U.K.E. PROPERTY HOLDINGS (UK) 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.