Business news 9 July 2025
Small business confidence hits rock bottom. Small businesses cry out for tax relief. Voters demand spending cuts, not taxes. The economy, welfare, national debt, wealth tax, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
⏬Small business confidence hits rock bottom
Confidence among London’s small business community has significantly declined, with predictions of growth dropping from 48% to 37% in just three months, according to the latest Novuna Business Finance report. This marks the fourth consecutive quarter of falling growth expectations, now at a national low of 26%, reminiscent of the lockdown period in 2020. The report highlights that while some sectors like manufacturing and construction saw slight improvements, others, including real estate and hospitality, experienced notable declines. The overall sentiment indicates a challenging second half of 2025 for small businesses, particularly in London, which has historically led the growth agenda for the UK.
📢Small businesses cry out for tax relief
As Rachel Reeves explores new strategies to enhance tax receipts, small businesses are urging her to reconsider the recent tax hikes introduced in the Autumn Budget. Research from Simply Business indicates that one in five SMEs may face closure if economic conditions do not improve. Julie Fisher, UK chief executive of Simply Business, said: “Suggestions of further increases come at a time when small business confidence is at a low point.” Over 50% of firms anticipate a worsening economy, a significant rise from 2023. Fisher stressed the need for a simplified tax process and the reversal of national insurance increases to restore confidence among SMEs.
✂️Voters demand spending cuts, not taxes
Voters are increasingly favouring spending cuts over tax increases, according to a recent City AM/Freshwater Strategy poll. The survey revealed that 59% of respondents preferred the Government to reduce spending, while only 17% supported tax hikes. Chancellor Rachel Reeves faces pressure to address a significant public finance shortfall, exacerbated by recent welfare reform U-turns. The Office for Budget Responsibility (OBR) has warned that public debt could rise to 270% of GDP if spending is not curtailed. As Reeves prepares for a challenging budget, top economists predict she may need to implement tax increases of up to £30bn to restore fiscal balance. The poll also highlighted that only 49% of Brits feel financially secure enough to cover an unexpected £500 expense, indicating widespread economic concern.
💥OBR: UK economy faces daunting challenges ahead
The Office for Budget Responsibility (OBR) has raised concerns about the UK’s public finances, describing them as being in a “relatively vulnerable position.” The OBR’s annual fiscal risks and sustainability report indicates that total debt could exceed 270% of GDP by the early 2070s, up from the current 96.5%. The report attributes this to various factors, including the pension triple lock, which is projected to cost £15.5bn annually by 2029-30, significantly higher than initial estimates. The report also warns of future risks from rising defence spending and climate change impacts. Analysts predict the Government may need to raise up to £30bn in taxes to address these challenges. Labour is considering a wealth tax to meet its commitments despite the top 1% already contributing a significant portion of income tax.
🚨UN raises alarm over UK welfare bill
The UN Committee on the Rights of Persons with Disabilities has expressed concerns regarding the UK Government’s welfare bill, citing “credible information” that it may negatively impact disabled individuals. The committee has requested details on the bill’s impact assessment and measures to mitigate potential poverty increases among disabled persons. An impact assessment by the Department for Work and Pensions indicates that the revised bill could reduce relative poverty by 50,000 individuals by 2030, but previous plans would have increased poverty by 250,000.
📈Markets
🏦 Yesterday, the FTSE 100 closed up 0.54% at 8854.18 and the Euro Stoxx 50 closed up 0.57% at 5371.95. Leading London higher was Oil major BP which was up by just over 3% in response to a firmer Brent Crude price.
Overnight in the US markets were fairly flat with the S&P 500 down 0.07% to 6225.52 and the NASDAQ up 0.03% to 20418.46 as markets reacted to Trump ruling out any further extensions to the tariffs set to start on 1st August.
Copper has been hit after Trump indicated he would be implementing a 50% tariff on the essential metal. He also suggested that levies on pharmaceutical imports could be “like 200%” within the next 18 months.
💷This morning on currencies, the pound is currently worth $1.359 and €1.161 .
On Commodities, ️🛢️️️Oil (Brent) is at $70.5 & 💰 Gold is at $3286.
📈On the stock markets, the FTSE 100 is currently up 0.23% at 8875 and the Eurostoxx 50 is up 0.73% at 5411.
⚜ Macron
During a speech to Britain’s Parliament, Emmanuel Macron urged the EU and Britain to “de-risk” by reducing reliance on America and China. The French president said that America’s trade wars threaten “this commerce we loved until now”. Mr Macron is on a state visit to Britain, the first by a European leader since Brexit—a sign that the countries’ previously testy relationship is improving.
🚢 Shipping surges
As a result of the tariff ripples, the cost of shipping goods from China to the UK has surged with the cost of a 40 foot container up 60% in 3 months to over $3,300, causing a potential inflationary pressure in the near future.
🏤 Fujitsu
Wyn Williams, chairman of the public statutory enquiry says Fujitsu should release a plan to compensate the thousands of post masters and families affected by their software failures by the end of October.
📅National debt worry
Britain is at risk of a £22 billion surge in debt-interest costs as pension schemes buy fewer government bonds, threatening to worsen an “unsustainable” outlook for the public finances. That’s according to the UK fiscal watchdog, which warned of a rapidly rising debt burden as an ageing population drives up spending on health care and pensions, while climate and geopolitical risks mount.
📈CBI: Tax breaks could help revive stock market
The Confederation of British Industry (CBI) warns that London’s stock market may “drift into irrelevance” without significant reforms, including tax breaks for listings and changes to bonus rules for directors. The CBI’s report, Revitalising UK Public Markets, outlines 20 recommendations aimed at revitalising the London Stock Exchange, which has seen a decline in listings due to competition from foreign markets. The report states: “With domestic capital shifting away from UK equities… the UK stands at a pivotal moment for the future of its public equity markets.” It suggests that making flotation costs tax-deductible could encourage more companies to list, while also advocating for a review of company rules to foster a more risk-taking culture among board members.
💻M&S chair calls for cyber-attack reporting
Archie Norman, chair of Marks & Spencer, has called for a legal requirement for businesses to report significant cyber-attacks to authorities. During a session with the parliamentary Business and Trade Select Committee, he revealed that “a large number” of serious cyber-attacks go unreported, citing two major incidents affecting large UK firms in the past four months. Norman described the April cyberattack on M&S as “traumatic,” leading to a £300m loss in profit. He stressed the need for companies of a certain size to report material attacks to the National Cyber Security Centre (NCSC) within a specified timeframe, stating: “I don’t think it would be regulatory overkill.”
🏢A wealth tax would drive businesses and jobs away
Steve Rigby, co-chief executive of Rigby Group, expresses deep concern over the proposed wealth tax in Britain, stating it could “upend the social contract and drive businesses and jobs away.” He argues that while he supports fair taxation, a wealth tax would unfairly target assets already taxed multiple times, threatening the balance between private enterprise and public service. Rigby highlights the negative experiences of countries like Germany and France, which abandoned wealth taxes due to economic harm. He calls for comprehensive tax reform that distributes the burden more equitably, warning that continuing to tax a small segment of society could lead to their exodus and worsen the situation for all.
💰Wealth tax could drive entrepreneurs away
City leaders, including Sir Martin Sorrell and Sir Rocco Forte, have expressed concern that a proposed wealth tax could lead to a significant exodus of entrepreneurs from the UK. Sir Rocco said: “Labour has already seen a huge exodus of wealthy people,” warning that the tax would exacerbate this trend. S4 Capital’s Sir Martin Sorrell added that it would not only drive away the wealthy but also those aspiring to accumulate wealth. Former RBS chair Sir Philip Hampton described the policy as “very anti-growth,” stressing that it would deter investment in the country. Meanwhile, Labour figures, including transport secretary Heidi Alexander, argue that those with “the broadest shoulders” should bear the highest tax burden, aiming for fairness in taxation while promoting economic growth.
🏦IFS: Wealth tax will penalise savers
The Institute for Fiscal Studies (IFS) has warned that a proposed wealth tax could adversely affect savers and the middle class. Stuart Adam, a senior economist at IFS, said: “It is difficult to make the case that an annual tax on wealth would be a sensible part of the tax system even in principle.” The IFS argues that taxing wealth annually would penalise individuals for saving and investing, ultimately making the country poorer. Despite a YouGov poll indicating that 75% of the public supports a 2% tax on assets over £10m, the IFS highlighted that several countries, including Sweden and Finland, have previously implemented wealth taxes but later abandoned them. A Treasury spokesman remarked that tax decisions are made during the Budget and declined to comment on speculation.
👛Social media money tips backfire
According to a recent survey by TSB, over half of individuals who followed financial advice from social media ended up losing money. The poll revealed that 31% of respondents acted on online money tips, with 55% reporting financial losses. Additionally, more than 40% of participants felt worse about their finances after encountering posts that flaunted wealth. Surina Somal, director of everyday banking at TSB, cautioned: “There could be useful sources of financial advice on social media. But there are also pitfalls through incorrect information and unregulated investments that could derail your finances.”
🚨Triple lock costs will soar to £15.5bn by 2030
The Office for Budget Responsibility (OBR) has projected that the cost of the state pension triple lock will reach £15.5bn by 2030, three times higher than initial estimates. The triple lock, implemented in 2011, ensures annual pension increases based on inflation, wage growth, or a minimum of 2.5%. The OBR noted that “due to inflation and earnings volatility… the triple lock has cost around three times more than initial expectations.” The rising costs are attributed to an increasing number of pensioners and the volatility of inflation. Chancellor Rachel Reeves has committed to maintaining the triple lock until the end of the current Parliament, despite ongoing debates about its sustainability. The influential Institute for Fiscal Studies has suggested reforming the system to link increases to average earnings instead. Pensioner groups argue that the triple lock is essential for protecting older individuals from rising living costs.
♨️Climate crisis hits chip supply
According to a recent report by PwC, climate change could disrupt 32% of the global semiconductor industry’s copper supply by 2035, a significant increase from current levels. The report highlights that drought conditions are the primary threat to copper processing, affecting all major chipmaking regions.
💼Insolvency surge fuels Begbies growth
Insolvency specialist Begbies Traynor has achieved a decade of growth, with pre-tax profits for the year ending April 30 rising to £11.5m, nearly doubling from £5.8m. Revenues increased by 12% to £153.7m, driven by a surge in larger insolvencies, particularly in its business recovery and advisory division, which accounts for 55% of total revenues. Despite a slight decline in corporate insolvencies across the UK, the business recovery arm saw a 5% revenue increase to £83.7m. The firm stated that profits for the upcoming year are “on track with expectations.”
🚨Latest Insolvencies
Appointment of Administrator – COORDINATE SAAS LIMITED
Appointment of Administrator – CINCHONA TECHNOLOGIES LTD
Appointment of Administrator – COLLEGE HILL PRESS LIMITED
Appointment of Administrator – M.J. HARRIS REPAIRS LTD
Appointment of Liquidators – SHOWELL ESTATES MANAGEMENT LIMITED
Appointment of Liquidators – TARGA X LIMITED
Appointment of Liquidators – CCF & PARTNERS ASSET MANAGEMENT LIMITED
Appointment of Liquidators – YELLOW BLUE PLAYGROUND LTD
Appointment of Liquidators – APML CONSULTANCY LTD
Appointment of Liquidators – MURRAY ASSET NOMINEES UK LIMITED
Appointment of Liquidators – TKW INVESTMENTS LTD
Appointment of Liquidators – MURRAY ASSET MANAGEMENT UK LIMITED
Appointment of Liquidators – RAYMOND ESTATES LTD
Appointment of Liquidators – CARMOSINA HOLDINGS LIMITED
Appointment of Liquidators – PADDICO (280) LIMITED
Appointment of Liquidators – CADLE PROPERTIES LIMITED
Appointment of Liquidators – GERTRUDE ENA FIELD LIMITED
Petitions to wind up (Companies) – DARWEN MINI MART LTD
Petitions to wind up (Companies) – WD JOINERY & BUILDING CONTRACTS LTD
Appointment of Liquidators – LOCHEND PROPERTIES LTD.
Appointment of Liquidators – P & G PROPERTIES LIMITED
Appointment of Liquidators – KENOMA TECHNOLOGY 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!