Business news 10 July 2025
Debt disaster looms for UK. UK economy braces for market shocks. Higher payroll taxes will lead to higher prices. Jobs, pubs, net zero, pensions, mortgages, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
🚨Debt disaster looms for UK
Ben Ramanauskas, a senior research fellow in economics at Policy Exchange, warns that the Office for Budget Responsibility (OBR) is overly optimistic about UK productivity growth, which could exacerbate the national debt crisis. The OBR projects that the national debt will exceed 270% of GDP by the 2070s, but if productivity growth remains at the current 0.5%, it could soar to 647% of GDP. Ramanauskas states: “The national debt is already far too high and is set to reach astronomically high levels.” He calls for urgent government action to cut public spending, reform the welfare state, and boost productivity through infrastructure improvements and tax reforms. Without these measures, future generations will bear the burden of current spending habits.
💷UK economy braces for market shocks
The Bank of England has warned that around 3.6m mortgages will become more expensive over the next three years, affecting approximately 40% of mortgage holders. The central bank’s Financial Stability Report highlighted that the UK economy faces increased risks due to global uncertainties, including President Trump’s tariffs and geopolitical tensions in the Middle East. “The outlook for UK growth over the coming year is a little weaker and more uncertain,” the report stated. While many households have yet to feel the full impact of rising interest rates since 2021, the Bank noted that lenders could issue more risky loans, allowing potential homebuyers to borrow more. Despite these challenges, the Bank concluded that “household and corporate borrowers remain resilient.”
🛍️Higher payroll taxes will lead to higher prices
Employers in the UK are preparing to increase prices for consumers due to higher payroll taxes, raising concerns about persistent inflation. A survey by S&P Global revealed that nearly 50% of firms intend to pass on the national insurance cost to consumers, while 36% plan to reduce headcount. The survey also indicated that over 20% of companies would cut back on investment spending. With unemployment rising to 4.6% and the economy shedding 250,000 jobs in the past year, the outlook for growth remains uncertain. Meanwhile, the Institute of Chartered Accountants in England and Wales reports a decline in business confidence, with the index falling to its lowest level since 2022.
🕴London businesses embrace part-time hiring
Businesses in London are increasingly hiring part-time workers as they adapt to rising employment taxes and costs. A survey by the London Chamber of Commerce and Industry (LCCI) revealed that the proportion of firms hiring part-time roles surged from 36% to 56% between the first and second quarters of the year. Despite this shift, only 15% of businesses reported an increase in workforce size, with inflation and rising energy costs remaining significant concerns. While larger firms express more confidence in economic growth, only 28% of businesses expect improvement in the next year.
🍺Pubs face daily closures after tax raids
The British Beer and Pub Association (BBPA) has warned that one pub will close every day this year, with a projected 378 closures across England, Wales, and Scotland. The increase from 350 closures last year is attributed to rising costs, with £1 of every £3 spent on pints and food going to taxes. Nigel Farage, leader of Reform, described the situation as an “absolute tragedy,” highlighting that the rise in National Insurance contributions has severely impacted profits. Tim Martin, CEO of Wetherspoons, called for tax equality with supermarkets to prevent further closures. Emma McClarkin, BBPA’s chief executive, said: “For many, it’s impossible to make a profit,” leading to the potential loss of nearly 6,000 jobs.
💚Net zero to cost taxpayers £800bn
The UK’s Office for Budget Responsibility (OBR) has projected that the transition to net zero will cost taxpayers over £800bn in the next two decades, with annual expenses reaching £30bn until at least 2051. This figure includes £9.9bn for technology investments and £20.5bn in lost tax revenue from declining petrol and diesel sales. Although the cost has decreased from £1.1trn since the last review in 2021, the OBR suggested that introducing a road tax for all vehicles could help mitigate expenses. Additionally, the report highlighted potential impacts of climate change on public finances, warning that a 3C rise in temperatures could increase government debt by 74% of GDP by the early 2070s. The findings come amid rising opposition to net zero commitments.
📈Markets
📈Yesterday, the FTSE 100 closed up 0.14% at 8867.02 and the Euro Stoxx 50 closed up 1.37% at 5445.65. Overnight in the US the S&P 500 rose 0.61% to 6263.26 and the NASDAQ rose 0.94% to 20611.34.
💻Nvidia hit a valuation of $4 trillion (the first company to do so). It only hit a valuation of $1trn in 2023.
Trump continued his criticism of the FED saying that interest rates were at least 3 points too high!
Donald Trump also signaled he would send more letters Wednesday dictating new US tariff rates on the imports of 7 countries, leaning into his aggressive approach to resetting America’s global trade relationships. Trump set a 50% tariff on Brazil imports citing as a reason, its treatment of Jair Bolsonaro, the hard-right former president who is on trial for an alleged coup attempt which Trump labeled a “Witch Hunt”
💷This morning on currencies, the pound is currently worth $1.361 and €1.160 .
On Commodities, 🛢️Oil (Brent) is at $70.0 & 💰Gold is at $3328.
📈On the stock markets, the FTSE 100 is currently up 1.18% at 8972 and the Eurostoxx 50 is up 0.3% at 5462.
👴Bailey warns against forced pension investments
Andrew Bailey, the Governor of the Bank of England, has cautioned the Government against mandating pension funds to invest in UK assets, advocating for a more natural reform approach. Despite the Government’s consideration of measures to ensure that pension funds allocate a portion of their portfolios to domestic investments, Bailey stated: “I do not support mandating… I don’t think that’s appropriate.” This comes amid concerns from industry leaders, including Aviva’s Amanda Blanc, who likened the Government’s approach to using “a sledgehammer to crack a nut.” Bailey also highlighted the impact of economic uncertainty on investment decisions, noting that firms are delaying listings and capital raises in London due to heightened global instability.
🏠UK Home-buyer Demand Rebounds
A closely watched gauge of demand from potential British homeowners climbed to its highest level in six months, a signal that the real estate market is starting to stabilizing from a tax-increase induced slowdown that’s weighed on house prices. The Royal Institution of Chartered Surveyors said its index tracking new buyer inquiries rose to +3 in June, indicating the number of estate agents seeing higher demand outnumbered those reporting a drop.
🏦Bank of England eases mortgage rules
The Bank of England’s recent decision to adjust its loan-to-income (LTI) limits could significantly benefit first-time buyers. Andrew Montlake, chief executive of Coreco mortgage brokers, described the move as a “welcome and pragmatic” step that allows lenders to offer more mortgages at higher LTI levels. While individual lenders may exceed the 15% cap on high LTI lending, the overall limit remains in place to ensure financial stability. The Financial Policy Committee (FPC) has recommended that the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) amend the implementation of LTI flow limits. The change comes as the share of lending at an LTI ratio of 4.5 or higher rose to 9.7% in early 2025, with expectations for further increases throughout the year.
🚨Latest Insolvencies
Petitions to wind up (Companies) – ELMWOOD (COACHWORKS) LIMITED
Petitions to wind up (Companies) – BIG DREAMER PRODUCTIONS LTD
Petitions to wind up (Companies) – INDEX ASSETS AND CONSULTING LTD
Appointment of Administrator – SKATE HUT LTD
Appointment of Administrator – BROOKVEX IMS LIMITED
Appointment of Administrator – DUNNE AND PENDLETON LIMITED
Appointment of Administrator – THE GENTLEMAN’S JOURNAL LTD
Appointment of Liquidators – A. & S. HEMINGWAY LIMITED
Appointment of Liquidators – IMT WEALTH MANAGEMENT LIMITED
Appointment of Liquidators – STUXCD LTD
Appointment of Liquidators – STATMOND LIMITED
Appointment of Liquidators – GENERALI SAXON LAND DEVELOPMENT COMPANY LIMITED
Appointment of Liquidators – DOBUNE LTD
Appointment of Liquidators – MICHAEL BRISTOW LIMITED
Appointment of Liquidators – APAX PARTNERS EUROPE MANAGERS LTD
Appointment of Liquidators – GB WAS LIMITED
Appointment of Liquidators – 7TH THEOREM LTD
Appointment of Liquidators – SAWLEY PARK RETREATS LIMITED
Appointment of Liquidators – JASPER KNIGHT DEVELOPMENTS LIMITED
Appointment of Liquidators – EUROPEAN ADDED VALUE FUND (GENERAL PARTNER) LIMITED
Appointment of Liquidators – OFFICE ESTATES LIMITED
Appointment of Liquidators – VALOUR MIDCO I LIMITED
Appointment of Liquidators – KUUTIO LIMITED
Appointment of Liquidators – EMILY BOOST LTD.
Petitions to wind up (Companies) – CARDTEST LIMITED
Petitions to wind up (Companies) – RIMSTOCK HOLDINGS 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!