Business news 10 June 2025
Consumer spending slows to lowest of 2025. Half of small builders face insolvency. Nuclear pledge, Employment rights bill, tax rise fears, AI, London output, Gen Z, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Breaking- Unemployment
UK Unemployment has increased and wage growth has slowed, as research by the Office for National Statistics found that some firms had stopped replacing workers when they left.
Unemployment rose by 94.4k to 1.64m in the three months Feb. – April 2025. Overall employment rose 89k to 34.01m. Payrolled employees fell 109,139 in May to 30.17m. The UK unemployment rate climbed to 4.6% for the three months to April, the ONS said in its monthly update, up from 4.5% a month earlier, which was as economists had predicted. Wage growth excluding bonuses rose 5.3% in the three-month period compared to a year ago, down from 5.6%, which was also as expected. Growth of private sector wages excluding bonuses 5.2%, also down from 5.6%.
Consumer spending slows to lowest of 2025
Retail sales in the UK rose by only 1% in May, marking the slowest growth this year, according to the British Retail Consortium and KPMG. Helen Dickinson, chief executive of the British Retail Consortium, commented: “Consumers put the brakes on spending, with the slowest growth in 2025 so far.” Non-food sales fell by 1.1% year-on-year, while food spending increased by 3.6%. The decline in consumer confidence, exacerbated by poor weather and financial concerns, contributed to this slowdown. Barclays reported a similar trend, noting a drop in sales growth from 4.5% in April to 1% in May, which is significantly below the inflation rate of 3.5%.
Half of small builders face insolvency
A joint report from WPI Strategy and ChamberlainWalker warns that half of Britain’s 2,500 smaller housebuilders could face insolvency by the end of the current parliament due to escalating costs and regulatory burdens. The report highlights a “perfect storm of costs” that threatens the Government’s ambitious target of constructing 1.5m homes during this parliamentary term. Sean Worth, a director at WPI Strategy, stressed the importance of having a diverse range of housebuilders, stating: “Without urgent assistance we could see half all of SME builders starting insolvency proceedings by the end of the parliament.” The report also notes that new regulations, including the Building Safety Levy, have added nearly £5bn in annual costs, exacerbating the challenges faced by smaller builders.
Labour pledges £14bn for nuclear
The UK Government has announced a £14.2bn investment in the Sizewell C nuclear power station, which is expected to create 10,000 jobs and supply energy to 6m homes. Energy Secretary Ed Miliband stated that this investment is crucial for achieving the Government’s net zero goals, asserting: “All the expert advice says nuclear has a really important role to play… to get to our clean power and net zero ambitions.”
Minister denies Employment Rights Bill will deter hiring
Labour’s Employment Rights Minister, Justin Madders, has denied the Government’s Employment Rights Bill will deter hiring, despite concerns from businesses. A recent poll by the Institute of Directors (IoD) revealed that over half of employers feel the bill makes them less likely to hire, with many considering outsourcing or automating jobs. Madders compared the current fears to those surrounding the introduction of the minimum wage. He cited a University of Cambridge study suggesting the bill could enhance recruitment and retention rather than hinder growth. Additionally, the bill aims to support carers in balancing work and caregiving responsibilities, with provisions for flexible working.
Voters fear further tax rises
UK voters are increasingly anxious that Rachel Reeves may abandon Labour’s manifesto promises not to raise income tax, according to a recent poll by Freshwater Strategies and City AM. Over half of the 1,250 respondents expect an increase in income tax, with two in five anticipating a VAT hike. The poll indicates a preference for tax cuts and reduced spending, even at the expense of public services. The Chancellor is set to announce spending commitments for 2026-2029, including an £86bn investment in science and technology, despite financial constraints. Paul Johnson from the Institute for Fiscal Studies suggested the Government could extend the freeze on income tax thresholds to raise more funds, amounting to a “stealth tax” affecting millions.
UK’s AI ecosystem needs infrastructure boost
During London Tech Week, Jensen Huang, CEO of Nvidia, stated that while the UK boasts the largest AI ecosystem globally, it lacks the necessary computing infrastructure to harness its full potential. He praised Sir Keir Starmer’s initiative to enhance the UK’s computing capabilities by 20 times, with a £1bn investment. Huang remarked: “The ability to build these AI supercomputers here in the UK will naturally attract more start-ups.” The comments come as the Financial Conduct Authority (FCA) announced a partnership with Nvidia to form a new framework for financial firms to experiment with AI tools.
London firms face output decline
Businesses in London have experienced a decline in output for the second consecutive month, according to NatWest’s growth tracker. Factors contributing to this downturn include the Chancellor’s tax hikes and rising energy bills. The London business activity index remains below the 50-figure benchmark, indicating stagnation. NatWest chief economist Sebastian Burnside noted: “Demand weakness was widespread across the UK in May,” although there is a glimmer of optimism as firms anticipate future growth driven by long-term investments and new technologies.
Markets
Yesterday, the FTSE 100 closed down 0.06% at 8832.28 and the Euro Stoxx 50 closed down 0.16% at 5421.52 as investors took a breather. Overnight in the US the S&P 500 rose 0.09% to 6005.88 and the NASDAQ rose 0.31% to 19591.24.
In New York Warner Bros share jumped 8% to US$10.56 after announcing it would split into two separate companies, the first a studio business the second a streaming company.
This morning on currencies, the pound is currently worth $1.3485 and €1.1815. On Commodities, Oil (Brent) is at $67.40 & Gold is at $3329. On the stock markets, the FTSE 100 is currently up 0.34% at 8863 and the Eurostoxx 50 is up 0.31% at 5405.
The US and China resumed talks into a second day in London, with financial markets on edge as the world’s two largest economies try to agree new terms of trade.
England’s water companies could be worth nothing
A report from the think tank Common Wealth suggests that the Government could utilise special administration to bring water companies like Thames Water into public ownership at minimal cost. The report’s author, Ewan McGaughey, a professor of law at King’s College London, argues that the commonly cited cost for nationalisation is based on inflated estimates and that the actual market value of water companies could be close to zero. The report contends that the Government could remove licences from any water company deemed to show serious poor performance and give shareholders and secured creditors an “appropriate value” for their stakes, which would, in effect, be nothing.
UK financial services still reign supreme
The UK remains the leading destination for financial services foreign direct investment (FDI) in Europe, despite a significant decline in activity. According to EY’s latest Attractiveness Survey for Financial Services, the UK recorded 73 FDI projects in 2024, a 32% drop from 108 in the previous year. This figure represents 25% of all European financial services FDI projects, far surpassing Germany and France. Martina Keane, EY UK and Ireland Financial Services managing partner, commented: “The strength and depth of the UK’s financial services sector continues to capture global investor confidence.” However, she cautioned that competition is intensifying, particularly from Paris, which is rapidly closing the gap.
Gen Z’s money woes revealed
Recent research from HSBC UK and Young Enterprise highlights that Gen Z feels judged about their financial management, with 67% expressing embarrassment, primarily from family. This generational “shame gap” contrasts sharply with the 33% of the wider UK population who feel similarly. Despite their digital fluency and desire for financial literacy, only 13% of Gen Z would seek money management education from schools. Instead, nearly a quarter have turned to social media influencers for financial advice.
Labour U-turns on winter fuel raid
The Chancellor has U-turned on the winter fuel allowance cuts with Rachel Reeves now saying she would reinstate the benefit for 75% of pensioners, meaning those retirees whose annual income is anywhere up to £35,000 will now be entitled to a payment of either £200 or £300 – up from the £11,500 income threshold. All pensioners will receive the benefit, but the Treasury will claw back the payments from 25% of them through a tax adjustment. The policy change will cost £1.25bn but officials claimed £450m would still be saved compared with the cost of restoring the payment to all pensioners. However, Sir Steve Webb, a partner at pension consultant LCP, said this ignores the additional £200m the Government has spent following a surge in pension credit applications. Experts say Labour will have to increase taxes to cover the cost of the retreat.
Savers underestimate retirement costs
Research indicates that individuals under 55 believe they need £350,000 in pension savings for a comfortable retirement, significantly less than the £760,000 suggested by the Pension and Lifetime Savings Association (PLSA) for a two-person household. The PLSA’s Retirement Living Standards report highlights that a single person requires £670,000 for a comfortable retirement. Myron Jobson from Interactive Investor said: “The latest PLSA Retirement Living Standards data underscores a simple but important truth: the cost of maintaining a decent standard of living in retirement doesn’t stay still.” The PLSA also noted that the minimum retirement living standard has decreased slightly, with a one-person household now needing £13,400 annually.
HMRC to receive £500m for AI boost
The Government is to invest £500m in HMRC for an AI digital assistant tool. It is hoped the investment will “simplify and improve the day-to-day performance of HMRC” and “save time for staff and millions of taxpayers”. Commenting on the news, John Hood, a tax partner with Moore Kingston Smith, said: “Providing AI support to investigators will help to identify problems with tax returns. But HMRC needs to focus on identifying ghosts – people who are not in the tax system or operate in the shadow economy.”
Totally goes into administration, 100 jobs lost
Totally, a healthcare firm which provided urgent care services in NHS 111 call centres, has entered administration, resulting in the loss of 100 jobs. The company, which employed 1,400 people across the UK, including Stockton-on-Tees and Newcastle, has been sold to PHL Group, ensuring the immediate transfer of 600 employees. Tim Vance, joint administrator at EY-Parthenon, said the sale “safeguards critical frontline NHS services and includes the retention of over 600 jobs.” The firm had been struggling since losing the NHS 111 support contract in February.
Latest Insolvencies
Appointment of Administrator – PLANTS365 LIMITED
Appointment of Administrator – R.E.M. (UK) LIMITED
Appointment of Administrator – THOMAS STOREY FABRICATIONS GROUP LIMITED
Appointment of Liquidators – CLEE GROUP LTD
Appointment of Liquidators – HAMMOND TIME-SHARE LIMITED
Appointment of Liquidators – PRESTBURY MANAGEMENT HOLDINGS LIMITED
Appointment of Liquidators – DELIVERING EXCELLENCE LTD.
Appointment of Liquidators – PRESTBURY INCENTIVES LIMITED
Appointment of Liquidators – ALLISON DATA LIMITED
Appointment of Liquidators – MERCURY SIGNALS LTD
Appointment of Liquidators – ENVIRONMENTAL SAMPLING (SURREY) LTD
Appointment of Liquidators – EMMAUS BRADFORD
Appointment of Liquidators – KOIA GLOBAL LIMITED
Appointment of Liquidators – WORK AND HEALTH SOLUTIONS LIMITED
Appointment of Liquidators – SIMONE BATTISTELLA CONSULTING LIMITED
Appointment of Liquidators – GILMOUR LUMBER LIMITED
Appointment of Administrator – MARTURANO HOMES LTD
Petitions to wind up (Companies) – CSJTRADE LTD
Appointment of Liquidators – STEADFAST SOFTWARE TESTING SOLUTIONS LIMITED
Winding up Order (Companies) – ASIR CONSULTING SERVICES LIMITED
Winding up Order (Companies) – SOLVED FM LIMITED
Petitions to wind up (Companies) – RONI HAND CAR WASH LTD
Appointment of Liquidators – A. L. I. PROPERTY LIMITED
Appointment of Liquidators – ORICA-GM HOLDINGS LIMITED
Petitions to wind up (Companies) – ONE LINING LTD
Petitions to wind up (Companies) – HENDERSON CLAIMS LIMITED
Petitions to wind up (Companies) – A K K SERVICES 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!