Business news 7 August 2025
BoE set to cut rates again. PM refuses to rule out tax increase. Contractor jobs surge post NIC hike. Construction, investment, wind, mortgage arrears, wealth exodus, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
🏦BoE set to cut rates again
The Bank of England is expected to cut interest rates by 0.25 percentage points to 4%, marking the fifth reduction since August 2022. Experts say the Monetary Policy Committee (MPC) is likely to reduce the base rate by 0.25 percentage points in a bid to alleviate pressure on mortgage holders and home buyers amid a sluggish economy. Andrew Bailey, the Bank’s Governor, recently said that officials would be prepared to cut rates if the jobs market showed signs of weakening. Official data from the Office for National Statistics shows that the rate of UK unemployment increased to 4.7% in the three months to May, with this the highest level for four years. Matt Swannell, chief economic advisor to the EY Item Club, said a 0.25 percentage point cut is “almost certain,” while Sanjay Raja, senior economist for Deutsche Bank, said the economy has been “weaker than the MPC anticipated” since it published a Monetary Policy Report in May.
💼PM refuses to rule out tax increase
With the National Institute of Economic and Social Research (NIESR) saying the Chancellor may have to break an election pledge and raise income tax, VAT or National Insurance to address a £50bn fiscal black hole, Sir Keir Starmer has refused to comment on whether taxes could be hiked. Asked whether he agreed with economists’ estimates on the need for tax rises or spending cuts, the Prime Minister said that “some of the figures that are being put out are not figures that I recognise.” NIESR analysts say Chancellor Rachel Reeves is set miss her borrowing target by £41.2bn and may also look to rebuild the £9.9bn fiscal headroom identified in the Spring Statement. Analysts at Capital Economics say Ms Reeves may have to raise as much as £25bn in taxes, while JPMorgan believes the Chancellor will look to raise around £10bn. Jason Hollands, managing director at Evelyn Partners, said it is likely that taxes are not coming down “any time soon.”
💁♀️Contractor jobs surge post NIC hike
Since the increase in employers’ National Insurance contributions (NICs) in April, the demand for self-employed contractors has surged. Figures from employment search engine Adzuna show that there are currently 326,068 contract jobs available, with this 20% up on early April. James Neave, head of data science at Adzuna, noted that employers are favouring contractors to avoid the additional £900 annual NICs for an average worker. The shift has resulted in a 9% drop in permanent roles, with 519,767 full-time vacancies now listed.
🏗️Construction sector contracts in July
Activity in the UK’s construction industry contracted at the fastest rate since 2020 in July, according to S&P Global’s PMI for the construction sector. The report shows that output fell from 48.8 in June to 44.3 on an index where a reading below 50 points to contraction, with firms surveyed saying site delays, lower volumes of business orders and weaker consumer confidence have hit activity. Matt Swannell, chief economic adviser to the EY Item Club, said the data suggests the UK economy has “lost momentum.” Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics, noted that the PMI “is erratic at the best of times,” adding that it has been “a relatively poor guide to real activity in the construction sector recently.”
📈Markets
📈Yesterday, the FTSE 100 closed up 0.24% at 9164.31 and the Euro Stoxx 50 closed up 0.26% at 5263.29. Overnight in the US the S&P 500 rose 0.73% to 6345.06 and the Composite NASDAQ rose 1.21% to 21169.43.
It was a busy day for corporate earnings in London with insurer Hiscox surging by almost 10% following their H1 results. Hiscox announced better-than-expected first-half profit and increased its share buyback by $100 million. At the other end of the spectrum CocaCola HBC declined by 7% after the soft drink bottler cut its annual revenue guidance despite a “solid” first half.
🛢️The White House announced Wednesday that it is imposing an additional 25% tariff on India, bringing the total levies against the major United States trading partner to 50%.
“I find that the Government of India is currently directly or indirectly importing Russian Federation oil,” US President Donald Trump said.
📶 Donald Trump threatened to impose a 100% tariff on semiconductor imports, but said companies that invested in the US could be exempt. The president unveiled the plan after a meeting with Apple’s boss Tim Cook, who promised they would invest a further $100bn in the US.
And talking of tariffs, today is the 7th August when many of the Trump tariffs start to take effect. Up until now it has all been theory, today the world must face the reality of the impact from the unilateral tariffs imposed by the US president.
Switzerland President and other senior officials ended their meeting with the US Secretary of State Marco Rubio and other US government officials without securing any new concessions to the 39% tariff imposed on Swiss US exports by President Trump. The Swiss government has called an emergency meeting this morning to discuss the next step
🍔 McDonald’s reported quarterly earnings and revenue that topped analysts’ expectations as buzzy promotions helped its US restaurants rebound. Uber said revenue increased 18% from $10.7 billion a year earlier. For the quarter ending June 30, net income rose to $1.36 billion from $1.02 billion a year ago.
💱This morning on currencies, the pound is currently worth $1.337 and €1.1445 .
On Commodities, 🛢️Oil (Brent) is at $66.75 & 💰Gold is at $3378.
📈On the stock markets, the FTSE 100 is currently down 0.26% at 9140 and the Eurostoxx 50 is up 0.98% at 5315.
💰Mid-market PE investment slips in H1
Mid-market private equity investment in London declined in the first half of this year, according to analysis by KPMG. Data shows that the volume of mid-market private equity investment in the City fell by 14%, with 168 deals completed. More than 50% of these deals involved a bolt-on, where a larger company acquires a smaller business in order to strengthen its operations. Across the UK, there were 377 mid-market deals in H1, with this down 11% on a year earlier. Deal volumes were down 17%, with 726 deals closed. Alex Hartley, head of corporate finance at KPMG UK said economic uncertainty, “driven by geopolitical events and nervousness around the impact of tariffs,” means the deals market has been “slightly more volatile” than had been forecast, with it taking longer to get deals over the line.
🌬 Wind Auction
The government opened applications for the latest offshore wind subsidy auction as the government tries to secure enough capacity to make it possible to run a carbon-free electricity grid by 2030. The process, which guarantees the price of power for renewables developers, is crucial this year as it’s one of the last opportunities to line up capacity that will be operational by the end of the decade. Winning bids could be at least £85 a megawatt hour, up from £82 last year. With the government guaranteeing the price and topping up any difference if the wholesale price is lower.
🏠Mortgage arrears fall in Q2
Missed mortgage payments fell by 4.4% in Q2, according to a report by credit manager Pepper Advantage which also found that direct debit rejections were down 5.1%. This marks the first quarter since the pandemic where both have declined. The analysis also shows that new loans were down 3.2%, with this driven by the end of stamp duty reductions at the end of March. Aaron Milburn, UK managing director at Pepper Advantage, said the drop in mortgage arrears was a “promising sign that some household financial pressures may be easing after years of inflation and rising living costs.” However, he warned that it is “important to remember that any recovery remains fragile.”
🛫Wealth exodus increases
Analysis of Companies House data shows that 3,790 company directors have left the UK since the Government set out a number of tax rises on the wealthy in the October Budget. This compares to 2,712 in the same period a year earlier. The Budget set out several measures that hit the wealthy, including a crackdown on non-doms, tighter inheritance tax reliefs and VAT on private school fees. Most of these came into effect in April and this coincided with a spike in departures, with 691 recorded that month. This was up 79% on April 2024 and 104% on April 2023. Official data on non-dom expatriation levels will not be released until 2027.
🏭Gupta business faces winding up petition
HMRC has filed a winding up petition against Liberty Pipes, part of Sanjeev Gupta’s Liberty Steel. While the petition suggests the move is linked to an unpaid VAT bill, Liberty claims all payments to HMRC are settled. This marks a fresh challenge for Mr Gupta’s GFG Alliance, which has been under pressure following the 2021 collapse of Greensill Capital, which lent GFG around $5bn. Mr Gupta is also under investigation by the Serious Fraud Office and is being prosecuted for failing to file accounts for over 70 UK businesses.
📿 Claire’s files for bankruptcy in the US
Fashion accessories chain Claire’s is facing an uncertain future after its parent company filed for bankruptcy in the US. The company reported assets and liabilities between $1bn and $10bn, with 25,001 to 50,000 creditors. It previously declared bankruptcy in 2018 but recovered after reducing its debt by $1.9bn. The British arm has incurred losses of £25m over three years, with a £4.7m loss reported for the year ending March 2024. As well as filing for bankruptcy in the US, the retailer has also entered administration in France.
🚨Latest Insolvencies
Petitions to wind up (Companies) – BUBBA ENERGY LTD
Appointment of Administrator – NORJON ENGINEERS LIMITED
Appointment of Administrator – SLEEP 8 INTRINSIC LIMITED
Appointment of Administrator – HESTERCOMBE GARDENS TRUST
Appointment of Administrator – HESTERCOMBE GARDENS LIMITED
Appointment of Administrator – STAGWOOD INDUSTRIES LIMITED
Appointment of Administrator – SHOOT BLUE HIRE LIMITED
Appointment of Liquidators – PEARCE INTERNATIONAL LIMITED
Appointment of Liquidators – SPIRIT MUSIC PUBLISHING LIMITED
Appointment of Liquidators – DAYSHAPE LIMITED
Appointment of Liquidators – RFU HEALTH AND LEISURE LIMITED
Appointment of Liquidators – PHIL’S MANAGEMENT SERVICES LIMITED
Appointment of Liquidators – RFU HOTEL LIMITED
Appointment of Liquidators – ERODE-ALL LIMITED
Appointment of Liquidators – WYCOMBE INVESTMENTS LIMITED
Appointment of Liquidators – COWARD & KERR LIMITED
Appointment of Liquidators – ISEM LTD
Appointment of Liquidators – PAWSHER CAPITAL LIMITED
Appointment of Liquidators – MANIYAR CAPITAL ADVISORS UK HOLDINGS LTD.
Appointment of Liquidators – MOURNE PM SERVICES LTD
Appointment of Administrator – BLOSSOM HOME CARE FRANCHISING LTD
Winding up Order (Companies) – NOTTINGHAM REHAB LIMITED
Winding up Order (Companies) – RUELLA JAMES LIMITED
Winding up Order (Companies) – NRS HEALTHCARE LIMITED
Petitions to wind up (Companies) – A-SPEC CAR SALES LTD
Petitions to wind up (Companies) – MOTOR ACCESS WAY LTD
Petitions to wind up (Companies) – DASHWISE LIMITED
Petitions to wind up (Companies) – STUDIONESH LIMITED
Appointment of Liquidators – GALBROXX LIMITED
Appointment of Liquidators – LAUMAD LIMITED
Appointment of Administrator – DR JONEY DE SOUZA AESTHETIC CLINIC LTD
Appointment of Administrator – JLEC ELECTRICAL LIMITED
Appointment of Liquidators – BIBENDUM GROUP LIMITED
Appointment of Liquidators – MGLA LIMITED
Appointment of Liquidators – HLT OWNED MEZZ IX-A LIMITED
Appointment of Liquidators – FALL ARREST SYSTEM TESTING UK LTD
Appointment of Liquidators – EDR DEVELOPMENTS LIMITED
Appointment of Liquidators – WALLACES EXPRESS LIMITED
Appointment of Liquidators – C & C PROFIT SHARING TRUSTEE (NI) LIMITED
Appointment of Liquidators – CHARSON CONSULTANCY LIMITED
Appointment of Liquidators – INFY IT CONSULTING LTD
➕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.