Business news 9 June 2025

Small businesses demand sick pay relief. Business property relief changes will prove costly. Wage growth slows as joblessness rises. Manufacturing, tax, energy, retail, house prices, markets, insolvencies & more business news that we thought would interest our members.

James Salmon, Operations Director.

Small businesses demand sick pay relief

Tina McKenzie from the Federation of Small Businesses (FSB) has urged the Government to allow small businesses to reclaim statutory sick pay for ill workers. The request comes ahead of the Chancellor’s spending review. Currently, employees can receive £118.75 per week for up to 28 weeks, but the FSB highlights that 75% of small employers are worried about the financial impact of expanded eligibility. McKenzie said: “There’s no use glossing over the reality – every pound in this spending review has to work twice as hard with public finances under strain and business confidence low.”

Business property relief changes will prove costly

Analysis by the Confederation of British Industry (CBI) shows the changes to business property relief (BPR) announced in the Chancellor’s October Budget will reduce growth in Labour seats by over £24m over the next five years. In Conservative seats the losses will stand at £20m and in Reform constituencies £18.5m. Seats held by the Green Party can look forward to an average gross value added (GVA) loss of around £40m, indicating that cities and urban centres will be worst hit by the change. The Prime Minister’s seat of Holborn and St Pancras will be the fourth-worst hit constituency in the country with 1,037 jobs expected to be lost. Overall, the analysis shows that £14.9bn in GVA losses can be expected nationwide.

Reeves plans £1bn energy subsidy to boost manufacturing

Rachel Reeves is considering a £1bn taxpayer-funded annual subsidy aimed at reducing energy costs for manufacturers, amid warnings of potential “rapid deindustrialisation” in the UK. The Chancellor faces increasing pressure to lower energy prices, which are believed to hinder investment and competitiveness. The proposed model would compensate manufacturers when electricity prices exceed a certain level, while requiring them to return funds when prices drop. This approach is already in use in several European nations. Make UK has warned the nation’s security will be at stake unless the issue is addressed. The plan could cost £1.1bn annually for five years, but is projected to generate a £3bn economic boost in the medium term.

Wage growth slows as joblessness rises

Recent economic data indicates a slowdown in wage growth and a rise in unemployment. The Office for National Statistics is expected to report that wage growth, excluding bonuses, fell to 5.4% in the three months to April, while unemployment is projected to increase to 4.6%. Ruth Gregory, Deputy Chief UK Economist at Capital Economics, anticipates wages will eventually align with the 2% inflation target. Meanwhile, concerns about the accuracy of labour market data persist, particularly following an overstatement of April’s inflation estimate. Additionally, analysts predict ONS figures will show a 0.2% contraction in the economy for April, driven by weak industrial production. Finally, research by BDO shows a rebound in business output and confidence in May, although this was driven almost entirely by the services sector.

Tax rises loom as defence costs soar

Britain is facing potential tax increases of up to £30bn in the upcoming autumn Budget to support rising defence expenditures, economists have warned. Rachel Reeves, the Chancellor, is under pressure to fulfil commitments to boost defence spending to 3% of GDP by the end of the next parliament, amidst expectations from NATO for even higher contributions. Michael Saunders from Oxford Economics said the Chancellor might have to reconsider her previous pledges against raising income tax, National Insurance, or VAT. With a narrow fiscal margin of £9.9bn, Ms Reeves is also contending with additional costs from restoring winter fuel payments and reviewing the two-child benefit cap, all while facing potential downgrades in economic growth. Separately, Reeves declined to rule out increasing taxes whilst attending a meeting of business leaders at the Confederation of British Industry annual dinner on Thursday. Pressed four times by CBI president Rupert Soames to reassure Britons they would not be subject to higher taxes, Ms Reeves could only commit to avoiding a repeat of the record £40bn tax raid she launched last autumn.

British Gas boss: Raise taxes to bring down energy bills

Chris O’Shea, the CEO of British Gas owner Centrica, has suggested the Chancellor shift the green levies imposed on households to pay for net zero onto general taxation as a way of bringing down energy costs for hard-up households. Speaking on BBC Radio 4’s Broadcasting House, O’Shea said: “The cost of the energy transition is not small… At the moment, the costs for [upgrading the energy system] come off consumer bills. There is an option to put that on general taxation and that’s something that we would support at Centrica.”

Cost pressures put one in ten retail jobs at risk

According to a new report by the British Retail Consortium, cost pressures in the UK retail sector could lead to one in ten jobs being at risk by 2028. Since 2015, over 350,000 retail jobs have already been lost, a decline significantly larger than that in the steel industry. Helen Dickinson, BRC boss, said: “While factory closures are met by promises of action, the wave of retail jobs losses has been met with indifference from policymakers.” The report highlights that changes to Employer’s National Insurance and increases in the National Living Wage have added £5.1bn to the industry’s costs.

Markets

On Friday, the FTSE 100 closed up 0.31% at 8837.91 and the Euro Stoxx 50 closed up 0.36% at 5430.17. Over in the US the S&P 500 rose 1.03% to 6000.36 – breaking through 6000 for the first time since the tariffs were announced in February, and the NASDAQ rose 1.2% to 19529.95.

This morning on currencies, the pound is currently worth $1.3575 and €1.1875. On Commodities, Oil (Brent) is at $66.54 & Gold is at $3321. On the stock markets, the FTSE 100 is currently at 8830 and the Eurostoxx 50 is at 5417.

Generational wealth gap widens

The debate surrounding generational inequality in Britain has intensified, with baby boomers (born 1946-1965) often blamed for hoarding wealth while younger generations, including millennials and Gen Z, struggle with high rents and stagnant wages. A report by the House of Commons’ Women and Equalities Committee highlighted “clear evidence” of ageist stereotyping in media narratives, which pit older and younger generations against each other. Simon Pittaway, a senior economist at the Resolution Foundation, noted: “There’s an extremely strong life-cycle component to wealth,” indicating that wealth accumulation is a natural progression over a lifetime. However, some boomers, like John Griffiths, argue that they are unfairly targeted for their financial success, remarking: “It’s a gimmick in the financial media to blame the boomers.” The conversation continues as younger generations seek to address the wealth gap and the challenges they face in today’s economy.

UK house prices fall unexpectedly in May

UK house prices experienced a larger-than-anticipated decline last month, marking the most significant quarterly drop in nearly a year due to ongoing economic uncertainty. The average property price fell by 0.4% in May to £296,648, surpassing the expected 0.1% decrease. According to Halifax, this decline follows a 0.3% rise in April, resulting in a quarterly change of -0.3%, the steepest since June last year. Amanda Bryden, head of mortgages at Halifax, noted: “Despite ongoing pressure on household finances, the housing market has shown resilience.” However, mortgage approvals for new home purchases fell for the third consecutive month, with net approvals declining to 60,500 in April. Jeremy Leaf, a London-based estate agent, commented on the impact of the stamp duty holiday ending, clarifying: “The inevitable result is a softening in prices.” The annual growth rate has now slowed to 2.5%.

Labour pensions tax raid predicted

Rachel Reeves is under pressure to address a £30bn spending gap without increasing major taxes like income tax, national insurance, and VAT. However, Harvey Jones in the Express explains that, despite the Chancellor’s insistence that her fiscal rules are “iron-clad” and “non-negotiable”, economists believe tax hikes are inevitable. Robert Salter from Blick Rothenberg says: “The money has to come from somewhere, and that somewhere is taxes.” He suggests that pensions tax relief, costing the Government £48bn annually, could be targeted. Salter predicts potential changes to pension contributions and the tax-free lump sum, which could be reduced from £268,275 to £75,000. Jason Hollands from Evelyn Partners also suspects a double pension raid is in play.

Pension surplus plans hit a snag

Rachel Reeves’s plans to utilise £160bn in pension surpluses to stimulate the UK economy are in doubt after a report from the Department for Work and Pensions (DWP) indicated that only about £11bn will be available for investment, as businesses are likely to use surpluses to offload pension liabilities to insurance companies. The DWP said: “It is estimated that an additional £11.2bn surplus will be extracted as a result of the preferred option to legislate over a 10-year period.” Despite the Chancellor’s earlier claims that 75% of final salary schemes were in surplus, the reality is that many companies are opting for full buyouts. Concerns have also been raised about the potential risks to member security if surplus funds are accessed without adequate safeguards. The Chancellor, who is desperate to raise tax revenues, would benefit because any surpluses released are taxed at 25%.

Tax crackdown nets £1.5bn

In 2023-24, HM Revenue & Customs’ Wealthy and Mid-Size Business Compliance (WMBC) team raised over £1.5bn, more than doubling its previous year’s total of £713m. This surge is attributed to a focused crackdown on high earners, with tax experts warning that the wealthy are now firmly in HMRC’s sights. Ian Robotham, legal director at Pinsent Masons, said: “HMRC have been set some very hard targets for extra tax collection by the chancellor.” The total revenue from wealthy individuals rose to £5.2bn, driven by advanced AI systems like Connect, which analyse vast amounts of data to identify tax evasion. HMRC aims to close the tax gap and generate an additional £7.5bn for public services by 2029-30.

Trade deal or job steal?

The UK Government’s new trade deal with India, touted as a significant victory, faces scrutiny as data suggests it may jeopardise British employment. Labour leader Sir Keir Starmer promoted the agreement, but critics argue it allows Indian businesses to save substantially on National Insurance Contributions for workers seconded to the UK. Shadow Business and Trade Secretary Andrew Griffith commented: “Labour’s two-tier tax breaks for Indian secondees risks costing hardworking Brits dear.” The deal includes a ‘Double Contribution Convention’ that could lead to tax savings of up to £11,168 for firms hiring Indian workers over British ones. Despite government assurances, concerns persist about the impact on local employment opportunities.

EU urged to rethink corporate tax plans

Michael Lohan, chief executive of IDA Ireland, has urged the European Union to reconsider its plans for a minimum 15% corporate tax on multinational companies amid tariff negotiations with the US. Lohan stated that it is “inevitable” that EU taxes on US firms will be part of discussions with the Trump administration, which has threatened “revenge taxes” on countries perceived to be targeting US businesses unfairly. He suggested that Brussels should be open to an “adjustment” to ensure that the global agreement includes major trading partners, stating: “If we have a global agreement, it needs to have the largest parties and trading partners to be part of it.”

TUC demands wealth taxes to avoid cuts

The Trades Union Congress (TUC) is intensifying its call for the Government to implement wealth taxes as the Chancellor prepares for significant spending cuts. TUC general secretary Paul Nowak said: “People are fed up with a system where those with the broadest shoulders don’t pull their weight.” A recent poll revealed that 54% of the public favours taxes on large corporations and affluent individuals, with 67% backing an annual wealth tax for estates over £10m. The TUC argues that the Office of Budget Responsibility’s forecasts should not dictate long-term government decisions, advocating for a review of its role. As the Government faces internal conflicts over the spending review, the TUC’s stance adds pressure on Labour, which relies heavily on union funding.

Unions demand end to ban on ‘sympathy strikes’

Trade unions, including the Fire Brigades Union (FBU) and the British Medical Association (BMA), are advocating for the repeal of laws that prohibit secondary industrial action, commonly known as “sympathy strikes”. These laws have been in place since the early 1990s, and the unions argue that they hinder solidarity among workers. The joint statement from the unions asserts: “For too long, the current legal restrictions have served to isolate disputes, weaken solidarity and limit workers’ ability to collectively challenge unfair conditions.” The unions are calling for the laws to be repealed through an amendment to the Employment Rights Bill currently under consideration in the House of Lords.

Fraud cases skyrocket in Channel Islands

The Channel Islands Financial Ombudsman’s (CIFO) annual report reveals a staggering increase in fraud cases, with 364 complaints opened in 2024, of which 65 were fraud and scam-related, marking a 1,200% rise from just five cases previously. Douglas Melville, the principal ombudsman, said: “Arguably the largest was the explosive growth in the number of complaints involving losses due to fraud.” The report also highlighted systemic issues, including poor administration and delays in financial services, attributed to insufficient staff coverage and difficulties in reaching customer service.

FCA set to lift ban on crypto trackers

The Financial Conduct Authority (FCA) is considering lifting its ban on crypto exchange traded notes (cETNs) for retail investors. The move reflects the FCA’s shift towards a lighter regulatory approach amid pressure from the Government to stimulate economic growth. Previously, cETNs were only available to professional investors, with the FCA stating they were “ill-suited for retail consumers due to the harm they pose.” David Geale, the FCA’s executive director of payments and digital assets, said the proposals reflect its “commitment to supporting the growth and competitiveness of the UK’s crypto industry.”

Pottery industry on the brink

As the government spending review approaches, pottery industry leaders express deep concern over rising energy and employment costs. The ceramics sector has faced significant decline, with three Stoke-on-Trent manufacturers collapsing in 2025 alone due to soaring energy bills. Emily Johnson, co-owner of 1882 Ltd, stressed that without assistance, the future of the industry is at risk, stating: “We don’t need lip service, we need help.” Rob Flello, chief executive of Ceramics UK, echoed this sentiment, urging the Government to alleviate burdensome taxes and levies. The industry, characterised by an ageing workforce and dwindling skilled artisans, is at a critical juncture, with calls for immediate action to ensure its survival.

River Island working on restructuring plan

River Island, the UK clothing retailer with 230 stores and 5,500 employees, is collaborating with PwC to develop a formal restructuring plan due to challenging trading conditions. The family behind the brand is preparing a significant rescue strategy that may jeopardise numerous stores and jobs. According to the latest accounts, River Island reported a pre-tax loss of £33.2m, with turnover dropping by over 19% to £578.1m. The company acknowledged the “pressures of a highly competitive and changing retail environment” and the impact of geopolitical events on supply chains and consumer confidence. A source indicated that the restructuring plan could be finalised within weeks, although the extent of potential store closures and job losses remains uncertain.

Builder.ai faces UK collapse

Builder.ai, a Microsoft-backed app-building tech company, is preparing for insolvency in the UK after it filed for bankruptcy protection in the US. Alvarez & Marsal has been appointed to oversee the process. Founded by Sachin Dev Duggal, the company had previously achieved a ‘unicorn’ valuation exceeding $1bn, attracting significant investment, including from a Qatari sovereign wealth fund. However, recent allegations from the Financial Times suggest that Builder.ai may have used questionable sales figures to secure funding. As Duggal seeks potential backers to rescue the business, the future of Builder.ai’s UK entities remains uncertain.

Latest Insolvencies

Appointment of Liquidators – J R NORRIS LIMITED
Appointment of Liquidators – CALMLIGHT LIMITED
Appointment of Liquidators – KOLBUS AUTOBOX LIMITED
Petitions to wind up (Companies) – H.A.L. BUILDERS LIMITED
Petitions to wind up (Companies) – TRUK LONDON LIMITED
Petitions to wind up (Companies) – SMART BUILDINGS SERVICE LIMITED
Petitions to wind up (Companies) – TVR GROUNDWORKS LTD
Appointment of Liquidators – SCOTTISH EXPRESS NEWSPAPERS LIMITED
Appointment of Liquidators – STATUS POINT LIMITED
Petitions to wind up (Companies) – CONTROL CAD LIMITED
Petitions to wind up (Companies) – CAPITAL RESIDENCIES & ACCOMMODATION LIMITED
Petitions to wind up (Companies) – NORTH SOUTH TIMBER HARVESTING LIMITED
Petitions to wind up (Companies) – FISHERS TOURS LIMITED
Petitions to wind up (Companies) – GEORGE CUTHBERT BUILDERS LIMITED
Appointment of Liquidators – OBAR WELL ENGINEERING LIMITED
Petitions to wind up (Companies) – ANGEL ELECTRICAL SERVICES (SCOT) LIMITED
Petitions to wind up (Companies) – DEALTEE LIMITED
Petitions to wind up (Companies) – CAOCAO MOBILITY EUROPE LIMITED
Petitions to wind up (Companies) – MARKET9 WHOLESALE UK LTD
Petitions to wind up (Companies) – HRG INVESTMENTS LTD
Petitions to wind up (Companies) – ECOSERV FM GROUP LIMITED
Petitions to wind up (Companies) – HUNTER MASON CONSULTING LIMITED
Petitions to wind up (Companies) – TRANZFAR LTD
Petitions to wind up (Companies) – ECOM EMPIRE LTD
Petitions to wind up (Companies) – BUSHELLS LTD
Petitions to wind up (Companies) – REGENT PLAZA HOLDINGS LIMITED
Petitions to wind up (Companies) – RELOCABROAD LIMITED
Petitions to wind up (Companies) – RAM GLOBAL INVESTMENTS LTD
Appointment of Administrator – M. ABELSON LIMITED
Appointment of Liquidators – UK CO-INVESTMENT JERMYN STREET LIMITED
Appointment of Administrator – ELEMENTS (EUROPE) LIMITED
Appointment of Administrator – KYNASTON CONTRACT SERVICES LTD
Appointment of Liquidators – ATLANTIC ENTERPRISE U.K. LIMITED
Appointment of Liquidators – BLACKPOLL HOLDINGS LIMITED
Appointment of Liquidators – PROPERTEX GROUP LIMITED
Petitions to wind up (Companies) – HYDRATE HUB LIMITED
Petitions to wind up (Companies) – 31 STOREYS LIMITED
Petitions to wind up (Companies) – SABER TOUMI LTD
Petitions to wind up (Companies) – ALLERTON RESIDENCES LTD
Appointment of Liquidators – CDN SOLUTIONS (HARROW) LIMITED
Petitions to wind up (Companies) – BARKER HOMES WHEATSHEAF LIMITED
Petitions to wind up (Companies) – ALEAM CONSTRUCTION LIMITED
Petitions to wind up (Companies) – ROOFSPACE LTD
Appointment of Liquidators – AGMAN FINANCIAL SERVICES HOLDINGS LIMITED
Appointment of Administrator – CLEWS & SONS LIMITED
Appointment of Administrator – COVENTRY TIMBER PRODUCTS LIMITED
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Appointment of Administrator – JUMPTEC LIMITED
Appointment of Administrator – CCM MOTORCYCLES (UK) LIMITED
Appointment of Administrator – PROJECT BLACK INVESTOR NEWCO 3 LIMITED
Appointment of Administrator – PROJECT BLACK INVESTOR NEWCO 2 LIMITED
Appointment of Administrator – CUBEDOTS LTD
Appointment of Liquidators – HARBOUR NO.1 PLC
Appointment of Liquidators – EPR SOLUTIONS LTD
Appointment of Liquidators – TROY GUILD LTD
Appointment of Liquidators – FC PROJECTS LTD
Appointment of Liquidators – TECH SAFETY ENGINEERING LTD
Appointment of Liquidators – ROXAS LEARNING SOLUTIONS LTD
Appointment of Liquidators – TOWER LAW LIMITED
Appointment of Liquidators – URBAN GREEN NEWCASTLE
Appointment of Liquidators – SINAI HOLDINGS LIMITED
Appointment of Liquidators – BELMONT GREEN FUNDING 5 LIMITED
Appointment of Liquidators – TOGETHER ASSET BACKED SECURITISATION 2021-CRE1 PLC

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.