Business news 8 July 2025
Personal guarantees stifle UK business growth
Personal guarantees stifle UK business growth. Call to revolutionise trade finance regulations. NDA’s, bereavement leave, pensions, wealth tax, house prices, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
🏡 Personal guarantees stifle UK business growth
The overuse of personal guarantees in borrowing is hindering UK business growth, according to a survey by the Federation of Small Businesses (FSB). Only 13% of small business owners would consider borrowing if personal guarantees were required. Tina McKenzie, policy chair of the FSB, commented: “Personal guarantees should never be the default setting,” adding: “If we are serious about building a climate where small firms can thrive and new ideas can take root, we need to rein in their overuse.” Nearly 80% of directors applying for finance reported being asked to take on personal liabilities, leading to a more cautious approach to expansion among one in seven business owners. The Financial Conduct Authority (FCA) previously indicated it would review its policies regarding personal guarantees.
Imagine trying to grow your business while dragging a ball and chain behind you. That’s the daily reality for thousands of small business owners in the UK forced to sign personal guarantees when accessing finance.
A personal guarantee means your personal assets – including your home – are on the line if your business falters. It’s not just a financial risk; it’s a psychological one. It puts entrepreneurs in a vice, making them think twice before innovating, hiring, or investing. No wonder UK business growth is being throttled.
It’s a problem across every sector, We need a system that allows good ideas to take root without threatening the roof over someone’s head.
💡 The System Is Broken
With banks de-risking and private lenders stepping in, personal guarantees have become the norm. But this ‘safety net’ for lenders creates a choke-hold on ambition. It’s time to rewire the system to support entrepreneurs, not punish them.
🛠️ Want to Avoid the Ball and Chain? Start with Better Payment Behaviour
You shouldn’t have to bet the house to run a business. One way to ease reliance on risky borrowing is by improving your cash flow at the source — and that means getting paid faster, more consistently.
That’s where The Credit Protection Association can help. For over a century, CPA has empowered UK businesses to:
- Encourage prompt payment through intelligent credit control strategies
- Improve customer payment behaviour with firm yet diplomatic engagement
- Unlock cash flow without resorting to personal risk
- Focus on growth instead of chasing invoices
🔓 Unchain Your Business
Don’t let outdated finance models trap you. By prioritising strong credit management and proactive collections, you can protect your business without sacrificing your home or your future.
Just ☎️ call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today to start freeing your business from the burden of unpaid invoices — and take the first step toward sustainable, stress-free growth.
🏦Call to revolutionise trade finance regulations
The International Chamber of Commerce (ICC) has urged the UK to reform trade finance regulations to unlock £22bn for small and medium-sized enterprises (SMEs). In a letter to Financial Conduct Authority chief Nikhil Rathi, ICC UK’s secretary-general Chris Southworth highlighted the “bureaucratic and inefficient” regulatory structure that burdens SMEs with excessive compliance checks.
He noted that the Electronic Trade Documents Act (ETDA) 2023 has significantly improved transaction times and reduced costs, yet the benefits are undermined by outdated regulations. Southworth called for quicker implementation of Basel III reforms, stating that the current timeline “fails to reflect what businesses are doing in the real world”. He stressed the need for “more proportionate, lighter touch” regulations, particularly regarding know your customer processes, to help close the £22bn trade finance gap and position the UK as a leader in digital trade finance.
⚖Labour to ban NDAs linked to harassment or discrimination
The UK Government is set to amend the Employment Rights Bill to prohibit the use of non-disclosure agreements (NDAs) that silence employees who have experienced harassment or discrimination. Angela Rayner, the Deputy Prime Minister, said: “Victims and witnesses of harassment and discrimination should never be silenced.” The legislation aims to empower workers, allowing them to speak freely about their experiences without fear of legal repercussions. The changes will not affect NDAs used for legitimate commercial purposes but will create one of the most robust protection regimes globally. A report by the Chartered Institute of Personnel and Development revealed that 22% of employers use NDAs for sexual harassment cases.
😢 New bereavement leave for parents
Parents who suffer a miscarriage before 24 weeks will soon be entitled to bereavement leave under a proposed amendment to the Employment Rights Bill. Currently, bereavement leave is only available for losses after 24 weeks. Deputy Prime Minister Angela Rayner said: “No one who is going through the heartbreak of pregnancy loss should have to go back to work before they are ready.” The new law aims to provide at least one week of leave, with the exact duration still under consultation. Labour MP Sarah Owen, who has campaigned for the change, shared her own experience of grief following a miscarriage, highlighting the emotional toll it takes. Vicki Robinson, chief executive of the Miscarriage Association, welcomed the announcement as a significant step in recognising the impact of early pregnancy loss.
📈Markets
📈Yesterday, the FTSE 100 closed down 0.19% at 8806.53 and the Euro Stoxx 50 closed up 1% at 5341.54. Overnight in the US the S&P 500 dropped 0.79% to 6229.98 and the NASDAQ fell 0.92% to 20412.52.
🛢️London was hit by Shell who moved to cut LNG and oil production guidance and made an admission that its chemicals business over Q2 would be loss making.
US markets fell after Trump announced tariffs of at least 25% on goods from Japan, South Africa, South Korea and other partners, despite extending the deadline to 1st August.
💷This morning on currencies, the pound is currently worth $1.361 and €1.158 .
On Commodities, ️️🛢️️ Oil (Brent) is at $69.3 & 💰 Gold is at $3324.
📈On the stock markets, the FTSE 100 is currently up 0.16% at 8821 and the Eurostoxx 50 is flat at 5340.
💷Lloyds warns against forced pension investments
Charlie Nunn, the chief executive of Lloyds Banking Group, has voiced concerns over Labour’s plan to mandate pension funds to invest in British assets, comparing it to policies in communist China. The Government’s proposed pension reform includes the establishment of megafunds, each investing over £25bn, aimed at reducing fees for pension holders. However, Nunn cautioned that “mandating allocations of pension funds is a form of capital control” which could hinder funds from fulfilling their legal duties to secure the best returns for pensioners. Nunn’s comments come after Louis Taylor, chief executive of the British Business Bank, encouraged pension funds to explore the “goldmine of opportunity” in private UK firms, suggesting that increased investment would render the need for mandating moot.
💰Labour refuses to rule out a wealth tax
The Prime Minister has refused to rule out imposing a wealth tax after former Labour leader Lord Kinnock argued for a 2% levy on assets over £10m. Sir Keir Starmer’s spokesperson said: “The Government is committed to the wealthiest in society paying their share in tax.” He added: “The Prime Minister has repeatedly said those with the broadest shoulders should carry the largest burden.” Sir Keir is now under pressure from unions to introduce a wealth tax after his U-turn on welfare cuts left the Treasury £5bn worse off. Responding to the news, shadow chancellor Sir Mel Stride said “piling further taxes on the wealth creators” would be “the worst thing to do”. Meanwhile, Callum Price, director of communications at the Institute of Economic Affairs, explains in a piece for City AM why a wealth tax would impede the formation of capital – because people would spend more to remain below the threshold – and exacerbate capital flight as the wealth flee for more hospitable climes. Price concludes that if the Government is concerned about wealth inequality it should build more houses as that would effectively “redistribute” property wealth, “while growing the pie at the same time.”
🏘UK house prices hold steady in June
Halifax reported a 0.0% month-on-month change in typical UK property values in June, following a 0.3% decline in May. Amanda Bryden, head of mortgages at Halifax, said: “The UK housing market remained steady in June,” with the average property price at £296,665, approximately 2.5% higher than last year. Despite this stability, Tom Bill from Knight Frank cautioned that high supply and weak demand indicate that this is not the beginning of a market rebound. He noted: “Supply is higher following the stamp duty cliff-edge in March.” Meanwhile, Karen Noye from Quilter highlighted that the market may slow down due to seasonal changes, while Sarah Coles from Hargreaves Lansdown pointed out that high property prices are straining affordability. Overall, experts suggest that modest growth may occur later in the year as mortgage rates stabilise.
⚛ Sizewell C
The UK government moved a step closer to approving the construction of two nuclear reactors in Sizewell after reaching a deal with French authorities over the involvement of EDF. Under the agreement reached over the weekend, the French state-owned owned utility, which is already building a pair of reactors in Hinkley Point in the UK, will retain a stake in the Sizewell C project of 12.5%with the Government and other investors taking on 87.5%.
💼Financial firms brace for job cuts
Financial services firms are bracing for significant job losses as investment plans and optimism plummet. The Confederation of British Industry (CBI) reported that sector activity fell at its fastest rate since December 2023, marking the first decline in over a year. A notable drop in output at banks has led to this downturn, with staffing levels decreasing by 5.25% to 580,371, the lowest in a decade. Standard Chartered and HSBC have made the largest cuts, reducing 4.5% and 4.3% of their workforce, respectively. Alpesh Paleja, CBI’s deputy chief economist, stated that “conditions deteriorated” and firms are looking to the Chancellor’s Mansion House speech for potential reassurances amid ongoing economic uncertainty. David Postings, CEO of UK Finance, highlighted the speech as a “golden opportunity” for reforms to enhance the banking sector’s competitiveness.
☺️Scotland’s business confidence soars
Business confidence in Scotland has reached its highest level in eight months, according to the Royal Bank of Scotland’s growth tracker. The survey revealed that the combined output of Scotland’s manufacturing and service sectors increased from 50.5 in May to 50.9 in June, marking the second consecutive monthly rise. While the manufacturing sector faced challenges, firms expressed optimism about future growth, with manufacturers reporting positive forecasts for the first time in three months. Despite rising operating costs, businesses showed a willingness to absorb some expenses to maintain sales.
💰Crypto tax crackdown begins in 2026
HMRC is set to enforce new reporting requirements for cryptocurrency holders starting January 2026. Individuals owning cryptocurrencies like Bitcoin, Ethereum, or Dogecoin will need to provide personal details to their service providers to ensure proper tax compliance. Failure to comply may result in a £300 fine. The initiative, part of the Cryptoasset Reporting Framework, aims to tackle tax evasion and ensure that “tax dodgers have nowhere to hide,” according to James Murray, Exchequer Secretary to the Treasury. Additionally, penalties may apply to service providers that fail to report user data accurately.
🏦Chancellor’s ISA cut sparks backlash
The Building Societies Association (BSA) has expressed strong opposition to the Chancellor’s proposed reduction of the cash ISA limit from £20,000. A draft letter obtained by Sky News warns that such a move could lead to increased borrowing costs for homeowners and businesses, stating: “Cutting Cash ISA limits would make this funding more scarce.” The BSA argues that cash ISAs are essential for personal savings and the broader economy, supporting lending and keeping mortgages affordable. The letter urges Rachel Reeves to maintain the current limit to ensure financial security for households and support economic growth. The final version of the letter is expected to be published soon, as the Treasury remains silent on the matter.
🏫 Special needs
Keir Starmer is facing another showdown with his own MPs, just days after last week’s humiliating climb-down on his government’s welfare reforms regarding PIPs. This time, it’s on his government’s plans to change the system for special needs support in schools. Like the benefits system, spending on education for children with special education needs and disabilities (SEND) has risen sharply in recent years with a boom in the number of children with Education, health and care plans (EHCPs). It has become “unsustainable” to budget for. But nobody wants to take away provisions for children and another rebellion is brewing.
🚨Latest Insolvencies
Appointment of Liquidators – LG METALS LTD
Appointment of Liquidators – AC 2025 HOLDINGS LIMITED
Petitions to wind up (Companies) – NEWMAN BUILDING SOLUTIONS LIMITED
Petitions to wind up (Companies) – VOYAGER GROUP SERVICES LTD
Petitions to wind up (Companies) – AF IT CONSULTING LIMITED
Appointment of Administrator – GREYVILLE ENTERPRISES LIMITED
Appointment of Administrator – BYZGEN LIMITED
Appointment of Liquidators – GROVELANDS UK LIMITED
Appointment of Liquidators – MIHAB CONSULTING LTD
Appointment of Liquidators – JCSOM LTD
Appointment of Liquidators – CASTLE STREET NOMINEES UK LIMITED
Appointment of Liquidators – SHIRLEY PARK DELICATESSEN LIMITED
Appointment of Liquidators – CITYWALL NOMINEES LIMITED
Appointment of Liquidators – LAURENCE KEEN NOMINEES LIMITED
Appointment of Liquidators – YG3 LTD
Appointment of Liquidators – NEILSON COBBOLD CLIENT NOMINEES LIMITED
Appointment of Liquidators – OLLIE QUINN LIMITED
Appointment of Liquidators – CARE HOMES 2 LIMITED
Appointment of Liquidators – INTERNATIONAL POWER (GENCO) LIMITED
Appointment of Liquidators – SWINDON POWER TECHNICAL SERVICES 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!