Business news 7 March 2025
Chancellor faces tax hikes or austerity. Construction, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Chancellor faces tax hikes or austerity
The Institute for Fiscal Studies (IFS) has warned that Chancellor Rachel Reeves may be forced into fresh tax hikes or a new wave of austerity due to the state of Britain’s public finances. Warning that the Chancellor’s £9.9bn financial buffer from October’s Budget has been wiped out, IFS research economist Dr Isabel Stockton said Ms Reeves has been left with “a tiny, tiny margin relative to the uncertainties involved.” The IFS also said that Ms Reeves is juggling “competing commitments,” having promised not to increase taxes while also ruling out a return to austerity. IFS director Paul Johnson says the Chancellor is likely to extend a freeze on tax bands, with this set to pull more people into paying higher rates
Welfare reform
Chancellor of the Exchequer Rachel Reeves said she will reform the UK’s welfare system as part of a government drive to find savings that help plug a hole in the public finances. “We’ve got to reform our welfare system, because at the moment it’s letting down taxpayers because it’s costing too much”
Construction output hits five-year low
UK construction output hit a five-year low in February, with the S&P Global UK Construction PMI falling to 44.6 from 48.1 in January. Prior to January’s report the industry had recorded 10 consecutive months of expansion. The report also shows that construction companies cut staff for a second consecutive month. Looking ahead, 39% of firms said they anticipate an upturn in the year ahead. Tim Moore, S&P’s economics director, said: “Sharply declining order books rippled through the UK construction sector in February, which led to accelerated reductions in output volumes, employment and input buying.” He added, however, that construction companies “remain optimistic overall about their growth prospects for the next 12 months,” although positive sentiment is down “amid increasing concerns about the broader UK economic outlook.”
Mann calls for ‘activist’ approach to rates
Bank of England rate-setter Catherine Mann says officials should adopt a more activist approach to setting interest rates due to the “substantial volatility coming from financial markets.” Ms Mann, an external member of the Monetary Policy Committee, suggested that the committee should be open to more radical shifts in monetary policy as they look to keep inflation close to the Bank’s 2% target
Retail footfall
Retail Footfall Growth slowed but increased for the second consecutive month, as retail parks outperformed other destinations. According to British Retail Consortium-Sensormatic data, total UK footfall increased by 0.2% in February from the previous year, down from 6.6% in January. Retail park footfall grew by 2.0% in February, down from 7.9% in January. High street footfall grew 0.1%, down from 4.5% in the previous month. Shopping centres rose 0.1%, down from 7.4% in January.
Markets
Yesterday, the FTSE 100 closed down 0.83% at 8682.84 and the Euro Stoxx 50 closed up 0.57% at 5520.47. Overnight in the US the S&P 500 slumped 1.78% to 5738.52 and the NASDAQ dropped 2.61% to 18069.26 as the cost of tariff uncertainty is driving a sell-off for US stocks.
The European Central Bank cut interest rates, following easing inflation. The cut brings the ECB’s deposit facility rate, its key rate, to 2.5% — a move that markets had widely priced in before the announcement.
The US S&P 500 is down by $3 trillion in value since mid February off the back of Trumps trade war. Bitcoin slid over 5% after US crypto czar David Sacks said the US’s reserve won’t use taxpayer money to buy cryptocurrencies.
This morning on currencies, the pound is currently worth $1.291 and €1.191. On Commodities, Oil (Brent) is at $70.4 & Gold is at $2921. On the stock markets, the FTSE 100 is currently down 0.47% at 8642 and the Eurostoxx 50 is down 0.85% at 5473.
UK construction activity saw its sharpest decline since May 2020. In the eurozone, construction and retail sales data indicated weakening demand.
China’s exports hit a record $540 billion in the first two months of 2025 as tariffs drove the frontloading of shipments.
The euro-area economy grew 0.2% at the end of last year, twice the pace initially estimated.
House prices
House prices averaged £298,602 in February, down 0.1% on-month compared with a 0.6% rise to £298,815 in January, according to data from Halifax. Annually, however, house prices have grown by 2.9% in February, the same as in January. Halifax also said that shortages and affordability challenges persist in the UK housing market.
US
Mr Trump said he would exempt carmakers that operate under the US-Mexico-Canada free-trade deal from tariffs on goods imported from Canada and Mexico for one month.
The Supreme Court voted 5-4 to temporarily block Donald Trump’s suspension of nearly $2bn in foreign-aid spending. Separately, a federal employment board ordered the administration to temporarily reinstate nearly 6,000 Department of Agriculture employees whom it had sacked.
China’s top diplomat accused Donald Trump of taking a hypocritical approach to bilateral ties and denounced tariffs, as tensions rise between the world’s largest economies.
Investors pull £3bn from funds
Analysis by the Investment Association (IA) shows that investors pulled £3bn out of funds in January, with the outflows driven by economic instability as inflation increased and GDP growth stagnated. This marked a reversal from December, when £2.3bn flowed into funds. The UK All Companies sector, covering funds with over 80% invested in quoted UK shares, saw an outflow of £1.2bn in January, while the UK Smaller Companies sector logged £206m in outflows. Bonds and mixed assets saw inflows of £187m and £39m, respectively. Reflecting on the IA data, Kate Marshall, lead investment analyst at Hargreaves Lansdown, said a “backdrop of weaker economic growth, rising inflation, uncertainty around fiscal policy, and the potential for tax rises in the spring budget” had contributed towards a “weakened” UK sentiment.
Card market ‘isn’t working well’
The Payment System Regulator (PSR) has warned that the card market “isn’t working well.” This comes on the back of a review into the transparency of fees charged by Mastercard and Visa which found that the firms have raised core scheme processing fees by 25% since 2017. The review, which said higher fees had led to added pressure on businesses, found no evidence that the increased fees were due to competition, costs, or innovation. The payments regulator also said that profit margins at the payment networks were “higher than would be expected in a well-functioning market.” David Geale, managing director at the PSR, said: “The confusing information Mastercard and Visa make available to acquirers and merchants contributes to poorer market outcomes through raising their costs of dealing with this overly complex information.”
74k movers likely to miss stamp duty deadline
As the deadline for stamp duty approaches, home buyers are racing to complete their purchases to avoid incurring additional costs. A report from Rightmove indicates that 74,000 movers in England are likely to miss the deadline, resulting in a collective £142m in extra stamp duty payments. Currently, first-time buyers benefit from relief on homes up to £425,000, but the law will change in April, dropping the threshold to £300,000.
Mortgage costs soar for first-time buyers
First-time buyers in Britain are grappling with increased mortgage payments, which now average £940 per month compared to £590 five years ago. Rightmove analysis shows that average wage growth has outpaced the rise in property prices, with earnings increasing by 30% compared to a 17% rise in home prices.
Recruiters see profits slide as jobs market slows
Profits at recruitment firms PageGroup and Robert Walters have significantly declined due to a stagnant hiring market. PageGroup’s revenues fell by 13.5% to £1.74bn, with pre-tax profits slipping to £49.1m from £117.4m. Similarly, Robert Walters reported a 16% drop in revenues to £892.1m, with profits down 98% to £0.5m. The downturn is attributed to geopolitical uncertainties and a lack of substantial pay increases, leading both companies to reduce their workforce by 20%. Robert Walters CEO Toby Fowlston said it remains “uncertain when a sustained improvement” in the jobs market might arise.
Poundland owner mulls sale
Pepco Group is considering putting the Poundland retail chain up for sale, having seen sales fall and amid concern that upcoming tax changes will put more pressure on the business. With employer National Insurance contributions set to increase in April, Pepco says this will “add further pressure” to Poundland’s costs, having warned that the chain is “operating in an increasingly challenging UK retail landscape that is only intensifying.” Pepco says it is considering “all strategic options” for the 825-store chain. Russ Mould, investment director at AJ Bell, said: “Finding a buyer won’t be an easy task and any deal will likely lead to store closures and job cuts.”
HMV pauses UK expansion due to taxes
HMV has decided to pause its UK expansion plans, opting instead to open new stores in Ireland and Belgium due to rising wage costs. Phil Halliday, managing director of HMV, said the firm hopes to resume its UK expansion plans if conditions improve, highlighting an unfair tax burden on retailers compared to other sectors. Mr Halliday believes the Government should have introduced changes to business rates this year rather than in 2026 to help offset higher costs from increases to employers’ National Insurance and the minimum wage.
Latest Insolvencies
Petitions to wind up (Companies) – KNOWLEDGE CAPITAL LTD
Petitions to wind up (Companies) – ASCENSION MARKETING GROUP LTD
Petitions to wind up (Companies) – GARDECO LIMITED
Petitions to wind up (Companies) – F B C C LIMITED
Petitions to wind up (Companies) – FOOTBALL FIESTA LIMITED
Petitions to wind up (Companies) – FAIRHAVEN HEALTHCARE LIMITED
Petitions to wind up (Companies) – GATEWAY GLOBAL EDUCATION LTD
Petitions to wind up (Companies) – ALAMO BLINDS & SHUTTERS LTD
Petitions to wind up (Companies) – PARAGON ADVANCE LTD
Petitions to wind up (Companies) – WILLOW TREE SUPPORT SERVICES LTD
Petitions to wind up (Companies) – MCL HOLDINGS LIMITED
Petitions to wind up (Companies) – MIXMATCHMAKEUP LTD
Petitions to wind up (Companies) – 3P EFFECTS DECORATING LTD
Petitions to wind up (Companies) – HEADFORD USA LIMITED
Petitions to wind up (Companies) – JOHN D LIMITED
Petitions to wind up (Companies) – STATION TAXIS (KINGS LYNN) LIMITED
Petitions to wind up (Companies) – UK HIGHWAY SOLUTIONS (TRANSPORT SERVICES) LIMITED
Petitions to wind up (Companies) – LYMINGTON MARINE SALES LIMITED
Petitions to wind up (Companies) – RST BRISTOL LIMITED
Petitions to wind up (Companies) – PRODUCT CONTROL LIMITED
Petitions to wind up (Companies) – LAND & PREMISES LIMITED
Petitions to wind up (Companies) – MORLEY FENCING & LANDSCAPING LTD
Petitions to wind up (Companies) – V BEVERAGES (LONDON) LTD
Petitions to wind up (Companies) – NON FUNGABLE TOKEN ART LTD
Petitions to wind up (Companies) – P.M.P. SCAFFOLDING LIMITED
Petitions to wind up (Companies) – RIZK KENT LTD
Petitions to wind up (Companies) – GOLD ACCOUNTANTS LIMITED
Petitions to wind up (Companies) – WEST MIDLANDS ECONOMIC FORUM LIMITED
Petitions to wind up (Companies) – FEVERSHAM ARMS LIMITED
Petitions to wind up (Companies) – DIRECT PERSONNEL LIMITED
Petitions to wind up (Companies) – AIRFI NETWORKS SERVICES LIMITED
Petitions to wind up (Companies) – STAR CURTAINS & BLINDS LTD
Petitions to wind up (Companies) – LLANGYNIDR PUBS AND INNS LIMITED
Petitions to wind up (Companies) – K&J WOODWARD LIMITED
Petitions to wind up (Companies) – BURLANES SITE SERVICES LIMITED
Petitions to wind up (Companies) – DOLCIA DISTRIBUTION LTD
Petitions to wind up (Companies) – KRIOGEN LTD
Petitions to wind up (Companies) – HENRIETTA FERGUSON LTD
Petitions to wind up (Companies) – HERO GROUP HOLDINGS LIMITED
Petitions to wind up (Companies) – FORD CONSTRUCTION (CHELTENHAM) LIMITED
Petitions to wind up (Companies) – SASHEVA FASHION LTD
Petitions to wind up (Companies) – A.H. CONSTRUCTION SOLUTIONS LIMITED
Petitions to wind up (Companies) – ATL ENGINEERING LIMITED
Petitions to wind up (Companies) – CM FREIGHT SERVICES LIMITED
Petitions to wind up (Companies) – BP RESTAURANT LTD
Petitions to wind up (Companies) – QTS CONTRACTS LIMITED
Petitions to wind up (Companies) – PEARSON WHITE LIMITED
Petitions to wind up (Companies) – WIND POWER RESOURCES LIMITED
Petitions to wind up (Companies) – GRAND UK CONSTRUCTION LTD
Petitions to wind up (Companies) – FINANCIAL RECOVERY SOLUTIONS LTD
Petitions to wind up (Companies) – MANOR HOUSE AUTOS LTD
Petitions to wind up (Companies) – H C R REMOVALS & STORAGE LTD
Petitions to wind up (Companies) – SOMARIOUN LIMITED
Petitions to wind up (Companies) – IPEOPLE SC SOLUTIONS LIMITED
Petitions to wind up (Companies) – MIRROR DEVELOPMENTS LTD
Petitions to wind up (Companies) – MIDLAND IMPROVEMENTS LTD
Petitions to wind up (Companies) – SANDRIDGE BLINDS & SHUTTERS LTD
Petitions to wind up (Companies) – NICHETECH LTD
Petitions to wind up (Companies) – ENERGEIA RESOURCES LIMITED
Petitions to wind up (Companies) – UK JPD LTD
Petitions to wind up (Companies) – RAYLEIGH COMMUNICATIONS LIMITED
Petitions to wind up (Companies) – ZAN ECB LTD
Petitions to wind up (Companies) – THE JOKER GROUP LTD
Petitions to wind up (Companies) – KINGSMAN HAULAGE LTD
Petitions to wind up (Companies) – HEWMANN LTD
Petitions to wind up (Companies) – HOLLY LOGISTICS LLP
Petitions to wind up (Companies) – TM TEST LIMITED
Petitions to wind up (Companies) – PIZZA PROJECT W6 LIMITED
Petitions to wind up (Companies) – LUP DRYLINING LIMITED
Petitions to wind up (Companies) – HOME CHANGERS LIMITED
Petitions to wind up (Companies) – BEECHWOOD (NORTH WEST) LIMITED
Petitions to wind up (Companies) – ACE FACILITIES LTD
Appointment of Administrator – ACTION ARTIFICIAL INTELLIGENCE LIMITED
Appointment of Administrator – LISTER HAIGH (YORKSHIRE) LIMITED
Appointment of Liquidators – ELLIGRA LIMITED
Appointment of Liquidators – COMPUTERISE LIMITED
Appointment of Liquidators – WARLTERS SOLUTIONS LIMITED
Appointment of Liquidators – SOUTHFLEET EDUCATIONAL CONSULTANCY LTD
Petitions to wind up (Companies) – BOX HOLDINGS (BHAM) LIMITED
Appointment of Liquidators – PLUMB LIMITED
Appointment of Liquidators – LULLINGTON GROVE LTD
Appointment of Liquidators – ASJ ONLINE LTD
Appointment of Liquidators – J MELROSE DEVELOPMENTS LTD
Appointment of Liquidators – PHENOM CLOUD LTD
Appointment of Liquidators – G.C. HUGHES LIMITED
Appointment of Liquidators – NICHE ACTUARIAL SOLUTIONS LIMITED
Appointment of Liquidators – SPADEWORK CONSULTING LTD
Appointment of Liquidators – BD-SHE LIMITED
Appointment of Liquidators – PHASE HIRE LIMITED
Appointment of Liquidators – MIDHOLM CONSULTING LIMITED
Appointment of Liquidators – DISCREET PEST CONTROL ( NORTH WEST ) LTD
Appointment of Liquidators – WHITEDALE PROPERTIES LIMITED
Appointment of Liquidators – METHODIST HOLIDAY HOTELS LIMITED
Appointment of Liquidators – NE DATA LIMITED
Appointment of Liquidators – RKASH ASSOCIATES LIMITED
Appointment of Liquidators – MORJARIA CONSULTING LTD
Appointment of Liquidators – GRAY MATTERS CONSULTING PVT LTD
Appointment of Liquidators – JAMES MOORHOUSE CONSULTING LIMITED
Appointment of Liquidators – SANSKARA CONSULTING LIMITED
Appointment of Liquidators – RUNNYMEDE RACING 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.