Business news 11 June 2025
Business leaders ‘paralysed’ by crises. Businesses can’t take more tax rises. Wage growth cools as jobless rate rises. Long-term sickness cuts 10% off GDP. Plus markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Business leaders ‘paralysed’ by crises
According to BDO’s Global Risk Landscape Report 2025, business leaders are becoming “paralysed” by ongoing crises, which is hindering growth opportunities. The report indicates that 84% of international executives view the current risk landscape as crisis-driven, with 69% adopting a defensive stance. Alisa Voznaya, partner and head of risk consulting at BDO, said: “Faced with this relentless volatility, some business leaders are being too hesitant to take decisions.” The report highlights that the top risks include regulatory challenges, supply chain issues, and cybercrime. While some executives acknowledge the positive impact of regulatory demands, many feel that compliance overspend is not delivering value. BDO surveyed 500 executives from global businesses with revenues exceeding $100m to compile the report.
Businesses can’t take more tax rises
Today, the Chancellor will present her spending review, which includes significant investments of £113bn in capital and £86bn in research and development. Shevaun Haviland, director general of the British Chambers of Commerce, praised these investments as “real, tangible steps” to stimulate economic growth. However, challenges persist, she writes in the Telegraph, with less than half of businesses expecting turnover growth this year. The rising cost of doing business, particularly due to taxes and National Insurance increases, is a major concern. Haviland stressed the need for no new taxes on businesses, stating: “Businesses can’t afford it. The country can’t afford it.” To foster growth, the Government must address cost pressures and provide opportunities for private enterprises.
Wage growth cools as jobless rate rises
The UK labour market is experiencing significant challenges, with unemployment rising to 4.6% in April, the highest level in nearly four years. The increase is attributed to tax hikes introduced by Rachel Reeves, which have contributed to a broader slowdown in job growth. Annual wage growth has also decelerated to 5.2%, the slowest pace in seven months. The latest data indicates a sharp decline in payroll numbers, with a drop of 109,000 in May, reflecting the impact of a £25bn rise in employer national insurance contributions and a 6.7% increase in the national living wage. Suren Thiru from the Institute of Chartered Accountants warned that high business costs could lead to further job losses this year. In the meantime, almost 6.2m people were employed in the public sector in March, 35,000 more than a year earlier and the highest number since December 2011. The latest weakening in the jobs market prompted traders to increase bets on a rate cut in August.
Long-term sickness cuts 10% off GDP
A report produced for the NHS reveals that the UK’s long-term sickness crisis has reduced Britain’s GDP by 10%. Research by consultancy Frontier Economics estimates that getting the 4.2m unemployed people with long-term sickness back into work would increase GDP by £125bn, while reducing the number of sick days employees take would provide an extra £45bn. Treating preventable disease so people could work longer hours would bring the “total productivity impact of reducing ill-health on the UK economy up to £246bn,” the researchers said.
World Bank says global growth to slow markedly
The World Bank forecasts that the global economy is set for its worst year since the 2008 financial crash, with growth expected to decline to 2.3% due to trade tensions stemming from President Trump’s tariffs. The report highlights that over two-thirds of countries will experience restricted GDP potential, impacting British firms’ export opportunities. The US economic outlook has notably worsened, with growth projected to decelerate sharply to 1.4%, down from a previous estimate of 2.3%. The analysis indicates that 60% of developing economies will also see a slowdown, while the euro area’s growth is expected to be just 0.7%. The World Bank suggests that countries should “liberalise more broadly” through trade deals to bolster growth.
Markets
Yesterday, the FTSE 100 closed up 0.43% at 8870.55 as investors saw the weak employment data as an indication that lower interest rates are more likely, the pound fell too. In Europe the Euro Stoxx 50 closed flat at 5422.60. Overnight in the US the S&P 500 rose 0.55% to 6038.81 and the NASDAQ rose 0.63% to 19714.99.
The US and China announced that they had agreed on the outlines of a plan to revive the flow of sensitive goods with China releasing some shipments of rare earths and the US also easing some export controls.
UK employment sank by the most in five years with wage growth slowing more than forecast. The number of employees on payroll tumbled 109,000 in May, which was the biggest decline since May 2020. The fall was much worse than the 20,000-decrease predicted by economists.
The EU expects trade talks with the US to extend beyond Trump’s 9th July deadline.
Elon Musk said he regrets some of his social media posts during last week’s split with Trump, saying “they went too far.”
This morning on currencies, the pound is currently worth $1.3495 and €1.18. On Commodities, Oil (Brent) is at $67.65 & Gold is at $3333. On the stock markets, the FTSE 100 is currently up 0.13% at 8865 and the Eurostoxx 50 is up 0.2% at 5426.
UK Chancellor Rachel Reeves will today detail government spending plans through end of the decade, laying out how hundreds of billions of pounds of investment will be allocated.
Oil rose after Trump said that he’s getting “less confident” about nuclear talks with Iran.
There’s no longer-term advantage to being a bully on global commerce, according to European Central Bank President Christine Lagarde, this morning.“Coercive trade policies are not a sustainable solution to today’s trade tensions,” she said in a speech at the People’s Bank of China in Beijing.
Tesla set 22nd June as a tentative launch date for its robotaxi service.
Investing in London is a national imperative – Hayward
Investing in London is crucial for the entire UK, Chris Hayward, Policy Chairman at the City of London Corporation, says in a piece for the Standard. “Investing in London isn’t about favouring one region over another, it’s about backing the entire country to succeed.” The City of London generates over £110bn in annual economic output, with a workforce that is nearly twice as productive as the national average. Despite challenges, investor confidence remains strong, bolstered by London’s unique advantages such as its time zone, language, and political stability. The City is launching the City Business Investment Unit to attract and retain firms, reinforcing its role as a global capital. A supportive national policy environment is essential to harness London’s strengths and ensure that when London thrives, the rest of the country benefits.
Great British Nuclear
Great British Nuclear said it has chosen a consortium led by Rolls-Royce as the preferred bidder to partner in the development of small modular reactors in the UK. In response, shares in the London-based aerospace and defence company rose to all-time high. In a statement, Great British Nuclear said the government is pledging over £2.5 billion for the overall small modular reactor programme in the spending review period, powering the equivalent of around 3 million homes. Rolls-Royce SMR has been selected by GBN to build three SMR units in the UK.
More 55-year-olds are accessing retirement wealth early
Figures released by HMRC show 120,000 individuals aged 55 to 56 unlocked £2.2bn from their pensions in 2023-24, up 18% from the 100,000 who withdrew just under £2bn in 2019-20. Once workers reach 55, they can take 25% of their pension tax-free, up to a maximum of £268,275. After that, withdrawals are taxed as earnings. Andrew Tricker, of Lubbock Fine Wealth Management, who obtained the data, said: “The large number of savers withdrawing from their pensions before actually retiring is very concerning. Many of them are withdrawing too much – and too early.” But with changes due to come into effect in 2027 that will prevent people passing on their pensions tax-free, experts expect the number of individuals accessing their pots early to rise. RBC Brewin Dolphin found that 56% of those aged 45 or over with pots worth at least £300,000 were intending to “spend more” of their pension following the October Budget.
MPs slam HMRC for silence on breach
HM Revenue and Customs (HMRC) has faced criticism from the Treasury Committee for failing to report a significant breach affecting approximately 100,000 taxpayers. The committee was only informed of the incident when HMRC published a notification on its website during a live session on June 4. The breach, linked to a phishing scam, resulted in a loss of £47m. Dame Meg Hillier, chairwoman of the committee, expressed alarm that Parliament was not notified earlier, stating: “To discover this information during a session from press reports is unacceptable.” The committee is seeking answers from HMRC regarding the lack of communication and the measures taken to prevent future incidents, with a response requested by June 24, 2025.
Stamp duty stalling homeowners’ moves
The HomeOwners Alliance has reported that 3.3m homeowners have abandoned their moving plans over the past two years, primarily due to high house prices and stamp duty costs. A survey revealed that over 800,000 potential moves were postponed because of stamp duty alone, with 35% of homeowners citing high property prices as a significant barrier. Paula Higgins, CEO of HomeOwners Alliance, said: “Stamp duty is acting as a handbrake on the housing market.” The average home in London now costs £552,000, making the stamp duty bill for such a property £17,600. The report highlights that moving costs and the stress of the process deter many from relocating, with 28% of respondents indicating that moving expenses are too high.
High-risk mortgages hit new peak
Recent data from the Bank of England indicates that the share of highly leveraged mortgages has reached its highest level since the 2008 financial crisis, with loans exceeding 90% of property value accounting for 6.7% of all mortgages in the UK during the first quarter. This marks an increase from 6.3% in the previous quarter.
Fraudster’s wife fights tax rise for care homes
Nadra Ahmed CBE, chair of the National Care Association, is leading a campaign against the Government’s increase in employer national insurance contributions, arguing it threatens “the foundations of the public services we deliver.” However, her husband, Aquil, was sentenced to prison for seven and a half years after pleading guilty to his part in stealing £6.9m in tax and national insurance contributions. Despite her husband’s criminal past, Nadra insists she had no knowledge of his actions and has not benefited from his crimes.
FCA appoints Sarah Pritchard deputy chief
The Financial Conduct Authority (FCA) has appointed Sarah Pritchard as its deputy chief executive, a role designed to enhance its growing responsibilities and support the Government’s growth agenda. Nikhil Rathi, FCA’s chief executive, highlighted Pritchard’s significant contributions, stating she has been responsible for some of the organisation’s “most high-profile work.” Pritchard’s new role encompasses the regulation of stablecoin and cryptocurrency firms, as well as the burgeoning buy now pay later sector. She said: “I am looking forward to working even more closely with Nikhil so there is no let-up in the pace of change.” Simon Morris from CMS noted that her appointment reflects the FCA’s commitment to the Government’s Regulation for Growth initiative and the need for vigilant oversight.
Latest Insolvencies
Winding up Order (Companies) – BRIGHTER BLOOM HEALTHCARE GROUP LTD
Winding up Order (Companies) – DAVIS CO. HOLDINGS LTD.
Appointment of Administrator – ETERLAST LIMITED
Appointment of Administrator – GREENBROOK HEALTHCARE (HOUNSLOW) LIMITED
Appointment of Administrator – VOCARE LIMITED
Appointment of Administrator – TOTALLY PLC
Appointment of Liquidators – HANGMAN LIMITED
Appointment of Liquidators – POETRY & PROSE CONSULTING LIMITED
Appointment of Liquidators – INTERCLICK LIMITED
Appointment of Liquidators – TOWER BRIDGE FUNDING 2021-1 PLC
Appointment of Liquidators – CNJ ENGINEERS LTD
Appointment of Liquidators – THE CROFT (RCH) LIMITED
Appointment of Liquidators – MILLBRIDGE SPINNING COMPANY LIMITED
Appointment of Liquidators – E.W. GROVES FARMS LIMITED
Appointment of Liquidators – THE PROPERTY MANAGEMENT & LETTING COMPANY (NEW FOREST) LTD
Petitions to wind up (Companies) – LUXURY FAMILY AFFAIR LTD
Petitions to wind up (Companies) – URBAN WARRIORS ACADEMY LTD
Petitions to wind up (Companies) – CAITHNESS CREELS LIMITED
Petitions to wind up (Companies) – STRUAN HOMES LIMITED
Petitions to wind up (Companies) – LOCHABER DAY AND NIGHT OWL SERVICE LTD
Appointment of Liquidators – K L CONSULTANCY LIMITED
Petitions to wind up (Companies) – PAL OFFICE SOLUTIONS LIMITED
Petitions to wind up (Companies) – DISTRACT LTD
Petitions to wind up (Companies) – S.J. CARE HOMES (WALLASEY) LIMITED
Appointment of Liquidators – KA WAREHOUSING LIMITED
Appointment of Liquidators – WINGCITY LIMITED
Appointment of Liquidators – PUMA CARGO (HOLDINGS) LIMITED
Appointment of Administrator – CMOSTORES GROUP LIMITED
Appointment of Administrator – TOTAL TILES LTD
Petitions to wind up (Companies) – SLH PROJECTS LTD
Appointment of Administrator – CMO GROUP LIMITED
Appointment of Administrator – CMOSTORES.COM LIMITED
Appointment of Liquidators – FERTILITY QMS LIMITED
Petitions to wind up (Companies) – UKRA 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!