Business news 9 May 2025

UK and US strike trade deal. Bank of England cuts rates to 4.25%. Employment rights, SME finance, housing, markets, pensions, 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.

UK and US strike trade deal

Sir Keir Starmer and US President Donald Trump have hailed an “historic” trade deal between the UK and the US, which eases some, but not all, of the tariffs imposed by the US last month. The deal will see tariffs on British car exports to the US fall from 27.5% to 10%, for the first 100,000 vehicles per year; the 25% tariffs on steel and aluminium will be removed and the UK’s pharmaceutical industry has been promised “preferential treatment”. British beef farmers will be allowed access to the US market and vice versa, with no reduction in food standards in the UK.

Jonathan Reynolds, the Business and Trade Secretary, said the UK would continue trying to reduce the 10% baseline tariff, adding that the agreement did not include any concessions on the digital services tax, online safety laws, or the NHS. More details are being worked out and a separate deal on technology is expected to be agreed at a later date. The Telegraph points out that the deal will give the US the ability to object to Chinese investment in the UK – a clause the Tories said amounted to a “veto” over foreign investment.

Unions welcomed the news, but John Denton, Secretary General of the International Chamber of Commerce, said: “The reality is that US tariffs on UK exports remain significantly higher than they were at the start of the year.” This point was echoed by Tory leader Kemi Badenoch, who claimed the UK had been “shafted” by Trump. “When Labour negotiates, Britain loses. We cut our tariffs – America tripled theirs.”

The US president said in a post on his social media platform that Thursday would be an “exciting day” for the two nations, saying the US has secured what he described as a comprehensive trade agreement with the UK, the culmination of weeks of talks between the two nations who are said to have a special relationship. It makes it the first trade deal of his presidency with countries around the world queuing up to sign deals after he instigated across the board tariffs.

“The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come,” Trump wrote in a second post. “Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!”

The Trump team’s attention has now moved to China where they reportedly seeking to deescalate and reduce tariffs and are also seeking access to rare earth minerals.

Bank of England cuts rates to 4.25%

The Bank of England has reduced the Bank Rate by 25 basis points to 4.25%, marking the second cut this year. Andrew Bailey, governor of the Bank of England, said: “Inflationary pressures have continued to ease, so we’ve been able to cut rates again today.” However, he stressed that the Bank would “need to stick to a gradual and careful approach to further rate cuts” as global trade dynamics played out. The central bank’s forecasters predicted that UK economic growth would weaken slightly over the next two years, but this did not factor in the UK-US trade deal agreed yesterday. The cut had been widely expected, especially after a slowdown in price rises, with inflation cooling to 2.6% in the twelve months to March (from 2.8% the previous month). Five of the BOE’s nine policymakers voted for the cut, with two members wanting a larger 50 basis-point reduction, and two wanting to keep rates on hold.

Employment Rights Bill threatens SMEs

Writing in City AM, Lord Howard Leigh expresses concern over the Employment Rights Bill, which he believes poses significant risks to small and medium-sized enterprises (SMEs). The Federation of Small Businesses (FSB) warns that the Bill could “wreak havoc on our already fragile economy.” Recent surveys indicate that two-thirds of SMEs may limit hiring, and one-third could reduce staff if the Bill is enacted. The financial burden is projected to cost the economy around £5bn, disproportionately affecting small businesses. Leigh highlights the lack of consultation and the rushed nature of the Bill, urging for a more pragmatic approach to support SMEs, which are vital for economic recovery. He says: “This Bill, in its current form, will only hinder that process.”

Rebooted SME finance market can boost growth

Richard Davies, CEO of Allica Bank, highlights in City AM the urgent need for a revitalised SME finance market in the UK. SMEs, which account for 60% of employment and nearly half of business turnover, are facing a significant lending gap of up to £65bn. Davies notes: “The UK has the lowest investment rate in the G7,” pointing to the importance of addressing this issue to support economic growth. He proposes three key actions: doubling the British Business Bank’s Growth Guarantee Scheme, focusing the Bank of England on SME finance, and enhancing navigation of the finance market for SMEs. The goal is to foster a more dynamic and inclusive economy that benefits all regions.

Tariff threats stall corporate decisions

FRP Advisory has reported delays in corporate decision-making due to President Trump’s tariff threats on US imports. The restructuring firm noted that “the final quarter of the financial year saw a marked increase in macroeconomic volatility,” which has affected business confidence. The number of public companies issuing profit warnings rose by 24% in April, with half attributing their difficulties to tariff threats and US economic disruption.

UK housing market slows as tax break ends

The housing market in Britain has experienced a slowdown following the conclusion of a temporary tax break on home purchases, according to the Royal Institution of Chartered Surveyors (RICS). The monthly house price balance fell to -3 in April, the lowest since July 2024, with sales agreements dropping significantly. RICS chief economist Simon Rubinsohn said: “The main reason for the dip in the key RICS sales activity metrics lies in the expiry of the stamp duty holiday.” Despite this, Halifax reported a 0.3% increase in house prices, indicating some resilience in the market. RICS believes the cut top interest rates could exert upward pressure on house prices in the coming year, although the immediate outlook remains soft. Rental demand continues to rise, with a notable shortfall in affordable rental stock.

Scotland’s small firms thrive in 2024

Smaller businesses are crucial to Scotland’s economy, representing over 98% of the total business population and contributing 42.7% of employment and 27.3% of revenues, according to Scottish Government figures. The British Business Bank’s Small Business Finance Markets report for 2024/25 revealed a 14.2% increase in equity investment volumes for Scotland’s smaller businesses, reaching £407m, significantly outpacing the UK-wide growth of 6.6%. Despite a slight decline in deal numbers, Scotland maintained the second-best performance among UK regions. Susan Nightingale, Director, UK Network, Devolved Nations at the British Business Bank, notes: “The quantity and value of equity deals demonstrates the resilience of Scotland’s smaller business community.” The £150m Investment Fund for Scotland has also committed over £10m to support local firms, indicating a robust financial ecosystem for smaller businesses.

Markets

London trading closed with mixed results on Thursday, as the initial enthusiasm surrounding a Bank of England rate cut and the prospect of a UK-US trade deal faded. The FTSE 100 closed down 0.32% at 8531.61 and the Euro Stoxx 50 closed up 1.12% at 5288.94. Overnight in the US the S&P 500 rose 0.58% to 5663.94 and the NASDAQ rose 1.07% to 17928.14.

The Bank of England voted by a majority of 5-4 to reduce the Bank Rate by 0.25% to 4.25% – as widely anticipated. Two members preferred a larger 0.50% cut, while another two wanted to maintain the rate at 4.50%.

This morning on currencies, the pound is currently worth $1.327 and €1.179. On Commodities, Oil (Brent) is at $63.7 & Gold is at $3329. On the stock markets, the FTSE 100 is currently up 0.42% at 8568 and the Eurostoxx 50 is up 0.32% at 5306.

China’s exports rose by 8% in value  year on year in April, despite shipments to America falling by 21% after Mr Trump’s tariffs. According to customs data, the rise was down to greater exports to South-East Asia, which increased by 21%, and the EU, up 8%.

Retail

Retail Footfall increased in April, data released Friday showed. The British Retail Consortium-Sensormatic footfall index showed total UK footfall increased by 7.2% on-year in April compared to a 5.4% decline in March. Of the total, high street rose 5.3% on-year in April from a 4.0% decline in March. Retail park footfall increased by 7.5% on-year from negative 1.2% in March. Shopping centre footfall improved by 5.6% in April, up from negative 5.8% in March.

Pension tax relief shake-up proposed

Baroness Ros Altmann, a former pensions minister, has proposed that pension tax relief should be reduced if at least 25% of new contributions are not invested in UK funds. She argues the reform could help revive the weakened London stock market and “rebuild confidence in UK assets and markets more generally.” The UK Government is also advocating for increased domestic investment from pension funds, with Chancellor Rachel Reeves suggesting the creation of “megafunds” to unlock £80bn for UK investments. However, experts like Claire Trott and David Robbins have raised concerns about the practicality of Altmann’s proposals, stressing the need to prioritise members’ needs and the complexities involved in implementing such changes.

Pension transfers take 1,000 days

New research reveals that some Britons are facing delays of up to 1,000 days for pension transfers, with a single case taking nearly three years to complete. The report, A Switch In Time, conducted by The Lang Cat, surveyed over 160 financial advisers and found that while some providers manage transfers in under 10 days, many are significantly slower. Lisa Picardo, chief business officer UK at PensionBee, stated: “There should be no more excuses – we’re in 2025, and yet we’re still hearing from advice professionals that consumers are waiting a year, or sometimes even three, for a pension switch to complete.” The report highlights a strong desire for reform, with 96% of advisers supporting legislation for reasonable transfer times and a 10-day Pension Switch Guarantee to enhance consumer protection.

Is accountancy finally becoming sexy?

The accountancy sector is undergoing significant transformation, shedding its outdated image as a dull profession, says Jane Hamilton says in the Times. Anna Draper, head of people, culture and purpose at BDO, says: “The old stereotypical bean counter image is long gone.” With the rise of AI and complex global tax regulations, accountancy is attracting top talent eager to embrace new challenges. The demand for skilled accountants is surging, with vacancies up 14% from last year, yet a skills shortage looms, with a predicted shortfall of 60,000 staff by 2050. KPMG is actively promoting apprenticeship schemes to address this gap, while firms like Deloitte are leveraging social media to attract new talent. As the profession evolves, future accountants will need to blend technical skills with strategic insight, positioning themselves as vital contributors to business success.

Cheshire East Council at risk of failure

Cheshire East Council is facing “significant concerns” regarding its financial stability, with the Government issuing a best value notice to highlight the need for improvement. Local government minister Jim McMahon said there is no evidence of a “current best value failure” but “significant issues need addressing at pace to avoid future failure.” Separately, ministers will send in a team of experts to Warrington council after a report found the local authority had been making “high risk” investments and was at risk of being unable to pay down its debt on an ongoing basis.

Latest Insolvencies

Appointment of Liquidator

IMPACT FINANCE 1 LIMITED
CATALYST OTIS LIMITED
MAAS IT CONSULTANCY LTD
MOONCO LTD
FINSTAR TECHNOLOGIES LIMITED
BEN THOMPSON MEDICAL LTD
WILHEAD LIMITED
CNOOC PETROLEUM MAURITANIA LIMITED
IMPACT PROPERTY 2 LIMITED
IMPACT HOLDCO 1 LIMITED
MJ AUCKLAND CONSULTING LIMITED
LEGACY RELEASE LIMITED
CATALYST QUAIL LIMITED
IMPACT PROPERTY 1 LIMITED
SOVEREIGN TRAVEL & LEISURE GROUP LIMITED

MEDICENTRES LIMITED
ORBITAL PROCUREMENT SOLUTIONS LIMITED
TONE AND TAN LIMITED
NEURO VENTURES LIMITED
THE BROUGHTON HOTEL COMPANY LTD
ASC CONSULTING LIMITED
DAVIDMCK LTD
THE SURGEONS CHAMBERS LIMITED
ONE SQUARE ADVISORS LIMITED
CELGENE UK DISTRIBUTION LIMITED
LENGOW UK LTD
NAUTILUS CONSULTING LIMITED
BRADE DESIGN LIMITED
FRESH ADVICE LTD
HILSON MORAN HOLDINGS LIMITED
RGAX EMEA LIMITED
SODICAM (U.K.) LTD.
RENFORD BUILDERS LIMITED
BELMONT JOINERY (UK) LIMITED
PGOODMAN LIMITED
BRASS NO.8 MORTGAGE HOLDINGS LIMITED
BRASS NO.8 PLC
BPMASTERS LTD

Appointment of Administrator

OXFORD CANNABINOID TECHNOLOGIES HOLDINGS PLC
SALEEM VENTURES LTD
SPECIALIST LIFT SERVICES LIMITED
PREMIER COMMUNICATIONS (PETERBOROUGH) LIMITED
NO 1 PENTIRE NEWQUAY LTD
WHISKY MERCHANTS TRADING LIMITED
NEXABIOME LIMITED

UPMARKET LEISURE LTD
FILTER DESIGNS LTD
HYPERION TECHNOLOGIES LTD
JAYB FABRICATION ENGINEERING LIMITED
OREE BOULANGERIES LTD
NOLTE MOBEL LIMITED
STAKEHILL LIMITED
ROVCO LIMITED
GRESHAM POWER ELECTRONICS LIMITED
KESSION CAPITAL LIMITED

Winding Up Petitions

GRAFTONS CLEANING LIMITED
BEDWELLTY PARK RESIDENTIAL HOME LIMITED
MCKEOWN TRANSPORT SERVICES LTD
KYANITE WEB LTD
LONGSCOTT LIMITED
AVANTON LIMITED
BRUNDELL PROPERTY GROUP LIMITED
CONTENTERPRISE LTD
K T UK ENTERTAINMENT LTD
CENTRAL SURGERY NURSING HOME LIMITED
NEXT GENERATION INSTALLATIONS LTD
PHARMACYS DIRECT LIMITED
SL GROUP LIMITED
GOVERICKS DEVELOPMENTS LIMITED
ZY OLDCO LTD
COSMIC ENERGY LTD
PB D AND B LIMITED
WOODRUSH CONSULTING LTD
RANEET LIMITED
MAP HOLDINGS NE LTD
TN16 CATERING CO LTD
EXCEL GALAXY LIMITED
SPARKS ONE SOLUTIONS LTD
CARE SOLUTIONS RECRUITMENT AGENCY LTD
ESL CONSULTANCY SERVICES LTD
DIASPHERE LIMITED
COMENT GROUP LTD
HEALTHCARE HEADHUNTERS LIMITED
BRAVE NEW SPIRITS LTD
CROWN TALENT & MEDIA GROUP LIMITED
WARES ENGINEERING LIMITED
OGOMBII LIMITED
LINK LOGISTICS AND FREIGHT LIMITED
BUDO1002 LTD
THE CONTRACT FLOORING PEOPLE LIMITED
BACHE LTD
EFIBA ARTS AND AFRICAN CULTURAL DEVELOPMENT
IFACE IT LIMITED
AGL CONSTRUCTION MANAGEMENT LIMITED
TRESHAM PROPERTY SERVICES LIMITED
PROXIMA A LTD
CRMINTELLIGENCE LTD
FALSUM CONSULTING LIMITED
WNS CONTRACTORS LIMITED
DHD COMMERCIAL LTD
CROWMARSH PUB COMPANY LIMITED
FAWN INTERIORS STUDIO LTD
ADVANTINE LIMITED
PLUS PAYROLL LTD
CHISWELL FIREPLACES & STOVES LTD
SAIGAK KAZAKHSTAN TRADE HOUSE LTD
POMEROY COTTAGES LTD
HS LUXURY HOUSEKEEPING LTD
JAAP LAGAN LIMITED
RDZ PR LTD
VITAE LONDON CLOTHING LTD
ITALIALONDRA LTD
CABLE ON EXPRESS LIMITED
PDR PLANT LTD
KOMP CONSULTING LIMITED
PRIVILEGE PHA LIMITED
GREG BUILDING SERVICES LTD
BLUE MANGO ENTERPRISES LIMITED
POLISH RETAILER LTD
WTG VENTURES LIMITED
S.T.R.L. LIMITED
BARN HOUSE BAKERY LTD
HFK HOLDING LTD
DEF HEALTHCARE LTD
DUKINFIELD RECOVERIES LIMITED
A V CAPITAL UK LIMITED
SCALABLE FINANCE LIMITED
RICHARDSON ENGINEERING SERVICES LTD
GMC DESIGN CONSULTANCY LIMITED
CC ALPHA LIMITED
KNL HAIR STUDIO LIMITED
GFP PAID LIMITED
UNITED JEWELLERS LIMITED
JEFF MORGAN & SONS LIMITED
MODBALL LIMITED
MAJENTA CAPITAL LTD
INTERDICT LIMITED
BRITLIT CONSTRUCTION LTD
JANNA RESTAURANT LIMITED
ELITE PROPERTY TRADING LTD
AM TEAM LTD
MDPV PROPERTIES LTD
NUMBER1RECRUIT LIMITED
UNI PROFESSIONAL SERVICES UK LTD
YANDY RESTAURANTS LIMITED
STABAL LIMITED
BROOKSY LIMITED
GS8 CONSTRUCTION LIMITED
EMPIRICAL CONSULTING LIMITED
G PROJECTS LIMITED
PURSUIT OF EXCELLENCE GROUP LTD
WINGATE CORPORATE SERVICES LTD
BALA LTD
SWILKEN OF ST ANDREWS LTD
ECARTRANS LIMITED
ABC TAXIS OF AYLESBURY LTD
HAL PRODUCTIONS LIMITED

CSV1 TRANSPORT LTD
UNITED GROUNDWORKS LTD
GC EXECUTIVE CARS LIMITED
WIPCAR LTD
FROG CONSTRUCTION LTD
SPRING FIELDS (CATERING BUTCHERS) LTD
KINETIC SUPPLIES LTD
RSN COMMERCIAL SERVICES LIMITED
THE INVICTA HOTEL LIMITED
CARFAX TUTORIAL ESTABLISHMENT LIMITED
EIC & DEVELOPMENTS LTD

Winding Up Order Notices

CORNERSTONE BUILDING SERVICES LIMITED
PRIME CASUAL LIMITED
TRINITY POINT DEVELOPMENTS LTD
DEZARAY TRANSPORT LTD

GB CONSULTORIA LIMITED
YOUR PERFECT MOVE (SYDENHAM) LIMITED
IMQ BRICKWORK LTD
EMABA LTD
ESTHER GROUP LTD
ETON EXPORTS LIMITED
EU LINKS LTD
KANETIX LTD
TRIO PRODUCTIONS LIMITED
TOPCAT CONSULTANCY LIMITED
POCOK LTD
HM LEGAL & PROFESSIONAL LTD
DAVE MUNDY STRIP- OUT LIMITED
PALMER PLASTERING (SOUTH WEST) LIMITED
DATA221 LIMITED
KCBS LLP
ORCHARD ROOFING LIMITED
TOAST (SOUTHERN) LIMITED
MANCHESTER AUTOMOTIVE LIMITED
KGC INSPECTIONS LTD
TORUS SOLUTIONS LTD
AEGIS PRIVACY CONSULTING LIMITED
COMMODITIES SERVICES LTD
ELITE INFRASTRUCTURE SERVICES LTD
SKILL ELECTRICAL MECHANICAL LTD
KANKAY LTD
FIRST FOR SAFETY LTD
AGI BUILDING SERVICES LTD
A.N.E CONSULT LTD
BELTECH SEARCH LTD
BD FIELD SYSTEMS LTD
ASMARA INDIAN CUISINE LTD
TRINITY POINT GROUP LTD
ZBIN LIMITED
STRATFORD BURGER TRADING LIMITED
YK ELECTRICAL AND CONTRACTORS LIMITED
GREENLIGHT CREDIT 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:

1. 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.
2. Our monitoring service will alert you to any significant changes in the status of those customers.
3. 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.