Business news 11 August 2025
The economy, tax, employment, inflation, rates, recruitment, manufacturing, jobless, long term sick, AI, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
💼Reeves urges public to be patient over economic recovery
Rachel Reeves has urged the public to be patient over the Government’s efforts to boost the economy. The Chancellor says her “mission” is to “end the cycle of decline, tackle the unfairness in our economy, give every community the chance to thrive and to make the lives of every working person better off.” She added that while she is “impatient for the change people voted for to be delivered,” she has “always known it was never going to happen overnight.” Saying that Labour is “on the side of working people,” Ms Reeves accused the Conservatives of overseeing “endless spirals of chaos.”
💰Rates set to remain higher for longer
Analysts say interest rates are likely to stay higher for longer than expected after the Bank of England altered its inflation and growth forecasts. While markets had expected a further 0.25% cut to the base rate by the end of the year, traders now say there is only a 50% chance the rate will be cut again in 2025. Analysts at Capital Economics and Oxford Economics said they were “less confident” that rates would be cut to 3.75% in November. UBS economist Anna Titareva said the Bank’s forecast for inflation and the impact on interest rates was “striking,” while Oxford Economics’ Andrew Goodwin said: “If inflation continues to surprise to the upside, this could tip the balance towards no change, particularly if market pricing moves against a rate cut.”
🏦Risk of ‘persistent inflation’ could affect rate cuts
Huw Pill, chief economist at the Bank of England, has warned of an increased risk of “persistent inflation,” despite officials making “progress” in bringing down the rate of price growth. Speaking after the Bank voted to reduce the base interest rate to 4% from 4.25%, Mr Pill said heightened risks regarding inflation could affect the chances of further cuts. He said: “There is some shift in the balance of risks on inflation. There is a risk of spillover into more persistent inflation,” adding: “When inflation is high due to external forces, we need to be aware of the risk they might affect domestic price-setting.” Office for National Statistics data shows that inflation rose to 3.6% in June, far exceeding the Bank’s 2% target.
‼️Small firms hit by staff shortages
Research suggests that staff shortages are forcing many Scottish businesses to reduce their opening hours or cut back on services. The Federation of Small Businesses Scotland (FSB) study shows that one in three small businesses are closing early, shutting on certain days or scaling back their operations due to a lack of staff. This comes at a time when the unemployment rate north of the Border stands at 3.7%. Guy Hinks, chair of the FSB, said: “The scale of the issue means it is not just a problem for the individual businesses themselves, it is a drag on the national economy.” Data shows that Scotland has around 350,000 small firms employing over 900,000 people with a combined annual turnover of £93bn.
💼Recruitment activity falls in July
A report from KPMG and the Recruitment and Employment Confederation shows that July saw a sharp decline in recruitment activity, with the steepest drop in vacancies since April. Demand for permanent staff was down across all employment categories apart from engineering, with retail at the bottom of the table having seen “a rapid fall in vacancies.” Temporary hiring, meanwhile, fell at its fastest rate in five months. The analysis also shows that pay growth has slowed, with starting salaries rising at the weakest rate since March 2021. Recruiters attributed the slowdown in recruitment to weak confidence in the economic outlook and rising payroll costs. Suggesting that companies are holding out to see what the Budget delivers, Jon Holt, chief executive at KPMG, said: “Many firms will continue to pause major investment decisions until there is greater clarity.”
💁♀️Hiring plans hit record low
Hiring intentions among British companies have fallen to a record low, with only 57% of private sector firms planning to recruit in the next three months, according to the Chartered Institute of Personnel and Development (CIPD). This marks a decline from 65% in autumn 2024 and is the lowest since the survey began in 2016, excluding the pandemic. James Cockett, senior labour market economist at the CIPD, said business confidence was “faltering further under rising employment costs,” with an increase in employer National Insurance contributions having an impact.
⚖️Managers call for retirement age increase
A poll by the Chartered Management Institute (CMI) shows that around half of managers aged 55 or over think the retirement age should be raised to reflect higher life expectancy, with a third of younger managers agreeing. However, managers polled also flagged the physical strain of certain jobs and noted issues around mental health. CMI chief executive Ann Francke commented: “Getting this right is essential to unlocking productivity and future-proofing our economy. A country that asks citizens to work longer must be a country that values their experience and supports them.”
👵Nearly 2m over 50s claiming jobless benefits
A Centre for Social Justice (CSJ) study shows benefit claims among 50–64-year-olds have risen 43% since before the pandemic, reaching 1.99m, with this driven largely by long-term sickness. Economic inactivity in this age group is 25.9%, double that of 35–49-year-olds, accounting for nearly a third of post-pandemic inactivity growth. The CSJ calls for overhauling fit note processes, setting age-specific employment targets, and expanding work-health schemes to retain older workers, citing lost skills and potential billions in missed tax revenue.
👴 Economy facing ‘midlife crisis’ over worker numbers
A report from the Centre for Social Justice (CSJ) shows that the number of people over 50 who are out of work and claiming benefits has risen by 600,000 to 1.99m since February 2020. The analysis shows that there has been a 21% increase in 50 to 64-year-olds leaving the workforce due to health conditions since 2015. The research also shows that in Q4 2024/25, 93% of the 2.7m people receiving fit notes were deemed “not fit for work”. The CSJ has called for age-specialist careers guidance through the new National Jobs and Careers Service. MP Carolyn Harris, vice chair of the organisation, said the report shows the UK economy “is facing a midlife crisis” and has urged ministers to create a National Work and Health Service.
🏭Manufacturers’ confidence hits nine-month high
Manufacturers’ confidence rose to a nine-month high in July, driven by recent tariff agreements, according to BDO’s monthly manufacturing optimism index. The index increased by 2.76 points to 96.50, reflecting reduced concerns over trade, particularly following US President Donald Trump’s decision to lower tariffs on UK car exports from 27.5% to 10%. Scott Knight, head of growth at BDO, said: “Manufacturers may be breathing a little easier… but their output is yet to catch up.” Despite this optimism, challenges remain, including high labour and energy costs. Growth in manufacturing output was offset by Britain’s services sector and with output in the services sector falling to 97.98 last month, BDO’s overall output index fell to 97.79 in July.
🏠Number of borrowers taking longer loans surges
Data from the Financial Conduct Authority shows a significant rise in long-term mortgages, particularly among borrowers aged over 36. In 2024, 30,338 mortgages with a term of 35 years or more were taken out by those aged over 36. This is up from 21,289 in 2023, 16,170 in 2022, 11,092 in 2021 and just 5,911 in 2020. This comes amid a period of rising property prices and interest rates. Zara Bray, a mortgage expert at Quilter, said: “The jump in older borrowers opting for ultra-long mortgage terms highlights just how stretched affordability has become.”
💻Summer brings early exits
Analysis by Virgin Media shows that there is an 8% decline in broadband traffic between 3pm and 5pm on Fridays during the summer, with this attributed to a trend that sees workers told they can leave early. A survey of 1,000 staff found that 20% unofficially finish work early on a Friday, despite no formal policy being in place. Polling shows that 61% of staff believe they have “earned the right” to wrap up early after a busy week, while 63% say they are more efficient earlier in the week knowing they could clock off early on Friday.
📮 Pressure Mounts on Retailers Against Foreign Competition
B&Q’s CEO is urging the Chancellor to end the “de minimis” tax exemption on imports under £135—a policy seen as favoring Chinese e-tailers like Shein—arguing it’s harming UK high-street operations. Rising business rates and wage costs are adding to the squeeze.. Small brick-and-mortar retailers face intensifying competitive and cost pressures—from both online sellers and domestic overheads.
🛢️ Grangemouth Chemical Plant May Shut
Britain’s largest chemical facility, Grangemouth, is threatened with closure as high energy and carbon costs render operations unviable. Small B2B suppliers in the region may see reduced orders as a result
📈Markets
📈On Friday, the FTSE 100 closed down 0.06% at 9095.73 and the Euro Stoxx 50 closed up 0.29% at 5347.74. Over in the US the S&P 500 rose 0.78% to 6389.45 and the Composite NASDAQ rose 0.98% to 21,450.02.
Gilt yields rose sharply with the 5 year gilt yielding 4.03%, 10 year offering 4.6% up 5 basis points and the 30 year paying 5.42% up 7 basis points. The reason appeared to be the Bank of England chief economist Huw Pill warned that whilst there may be room to ease further, but the quarter per quarter pace of UK interest rate cuts was in doubt given the reality of ‘persistent inflation’. This boosted banking shares.
💱This morning on currencies, the pound is currently worth $1.345 and €1.155 on a six day winning streak but that is likely to pause with UK unemployment data due out later. UK employers are reducing payroll budgets in response to £26 billion tax increase by Chancellor Rachel Reeves. ING analysts suggest upcoming UK employment data could be weaker than expected, though impact on sterling might be limited.
On Commodities, 🛢️Oil (Brent) is at $66.5 & 💰Gold is at $3360.
📈On the stock markets, the FTSE 100 is currently up 0.16% at 9110 and the Eurostoxx 50 is down 0.22% at 5336.
The European defense sector is down 1.8% ahead of the Trump-Putin Ukraine meeting.
A Bank of America survey shows record 91% of fund managers view US stocks as overvalued – the highest since 2001. JPMorgan expects a “somewhat stagflationary backdrop” for H2 in the US. Goldman Sachs warns of increasing tariff impact on US consumers.
⚖️Taxpayers face £100 fines for late returns
From April 2026, taxpayers earning over £50,000 will face £100 fines for late Self Assessment tax returns under HMRC’s Making Tax Digital system. This change requires quarterly updates instead of annual submissions, impacting around 780,000 self-employed individuals and landlords. Penalties escalate quickly, with daily charges and additional fines reaching up to £1,600 within a year. HMRC will notify affected taxpayers and encourage participation in a testing programme to ease the transition. Robert Jones of Swift Tax Refunds warned: “Missing deadlines could trigger serious financial consequences.”
🅰️ℹ️ AI revolutionises exam assessments
The education system is undergoing significant changes as proposals for “adaptive assessment” emerge, allowing students to take personalised exams at their own pace. AI is already being used to assist in marking and developing tailored assessments and Mary Curnock Cook, former chief executive of the Universities and Colleges Admissions Service, said: “The real prize is to have adaptive testing, which would completely change the face of how we assess and how students engage.” While critics have voiced concern about potential cheating and diminished attention spans, proponents argue that AI can enhance learning outcomes. A poll for the Observer shows that although 66% of respondents think schools should teach pupils how to use emerging technologies such as AI, only 41% think they are doing so. A poll of 300 businesses by PwC found that just four in 10 think the curriculum and assessment system adequately prepares young people for the workplace.
🅰️ℹ️ Court orders HMRC to reveal AI use
A court has ruled that HMRC must disclose its use of AI in decisions regarding research and development (R&D) tax credits. Tom Elsbury, a tax expert, filed a Freedom of Information request, arguing for transparency. Judge Alexandra Marks at a first-tier tribunal described arguments in favour of greater transparency as “compelling,” ruling that the public deserves to know if AI influences tax decisions. Mr Elsbury has expressed concerns about the implications of AI in tax enquiries, particularly regarding sensitive industries. He argues that the public should know “if AI is concluding or forming a decision in tax enquiries” on enterprise tax credits, adding that people should also know if penalties have been issued on the basis of AI-generated decisions.
🏠Property market surges in H1
The UK property market experienced its strongest performance since 2022 in the first half of 2025, according to GetAgent analysis. Property transactions and mortgage approvals reached a three-year high, driven by a rush to complete purchases before reduced stamp duty rates came to an end in April. An average of 63,866 mortgages were approved each month, with 103,917 transactions completed. Despite a recent slowdown, renewed buyer interest is expected due to improved mortgage affordability from lenders.
💰Top rate taxpayer total set to hit 1.7m by 2030
The number of taxpayers liable for the additional rate of income tax is projected to rise from 236,000 in 2010 to 1.7m by 2030, according to analysis by Quilter. HMRC data shows that 1.2m taxpayers will pay the additional rate this year, while the tax office’s internal forecasts show that 1.5m people are expected to be paying the 45p tax rate by 2028. The increases are driven by frozen tax thresholds and inflation, which have pushed many earners into the 45% tax bracket. Shaun Moore from Quilter says: “The number of people paying the additional rate of income tax has risen exponentially since thresholds were frozen.” Jason Hollands from wealth manager Evelyn Partners said additional-rate taxpayers often sacrifice bonuses or pay rises in exchange for increased employer pension contributions, with these exempt from income tax and National Insurance. Calculations from RSM UK show that someone earning £130,000 would pay £44,703 in income tax. If this person were to pay enough into their pension to keep their income below the £100,000 threshold, they would pay £11,271 less in income tax.
📒Record numbers face dividend tax
Record numbers of investors are facing dividend tax as they exceed the reduced £500 tax-free allowance. A Freedom of Information request by Quilter reveals that 3.67m individuals are expected to pay dividend tax in the 2024/25 tax year, nearly double the figure from 2022/23. The number of dividend taxpayers rose 1.9m in 2022/23, hitting an estimated 3.08m in 2023/24. The dividend tax-free allowance was reduced from £2,000 to £1,000 in 2023 and halved to just £500 in 2024. Experts say cuts to the tax-free allowance have particularly impacted basic-rate taxpayers. Rachael Griffin, tax expert at Quilter, commented: “The Government has made clear that it expects to raise hundreds of millions in additional revenue from these changes,” with it noted that the tax take is projected to rise significantly in the coming years.
🏬River Island to close stores to prevent collapse
The High Court has approved River Island’s restructuring plans, saying the fashion retailer can close 33 stores to avoid going into administration. The chain had warned creditors that it could run short of cash by the end of August and go into administration if the proposal was not approved. Alongside the closures, rents will be reduced at a further 71 branches and around 110 roles at the firm’s head office will be made redundant. River Island’s chief executive, Ben Lewis, said the company has a “clear transformation strategy,” adding that the green light for its restructuring plan “gives us a strong platform to deliver this.” Kathleen Garrett, a partner at Reed Smith, said the ruling is “the latest in a series of judgements that have seen the courts prioritise rescuing a business over the interests of creditors.”
🚨Latest Insolvencies
Winding up Order (Companies) – QUICK LEASING LIMITED
Winding up Order (Companies) – BOLOGNESI LIMITED
Appointment of Liquidators – B.R. NURSERY WHOLESALE
Appointment of Liquidators – PLAYFAIR GOLF HOLDINGS LIMITED
Petitions to wind up (Companies) – CHRISTIE MEATS LIMITED
Petitions to wind up (Companies) – KINNETTLES CASTLE LIMITED
Petitions to wind up (Companies) – AISLING CARE SERVICES LTD
Petitions to wind up (Companies) – KEAY HOMES (WINDRUSH) LIMITED
Petitions to wind up (Companies) – SITE WORK CONSULTING LIMITED
Petitions to wind up (Companies) – GHATORPHAR LIMITED
Petitions to wind up (Companies) – THE BARAKAT GALLERY LIMITED
Petitions to wind up (Companies) – ONE LEISURE HALIFAX LTD
Petitions to wind up (Companies) – LJD SHAKES LIMITED
Petitions to wind up (Companies) – WESTWOOD INVESTMENT (UK) LIMITED
Petitions to wind up (Companies) – MAINSTREET (BINGLEY) LTD
Petitions to wind up (Companies) – RIGHT STITCH LTD
Appointment of Liquidators – HODGE JONES & ALLEN SOLICITORS LIMITED
Appointment of Liquidators – FERRY COMMS LIMITED
Appointment of Liquidators – MOONLIGHT BEDROOMS HOLDINGS LIMITED
Appointment of Administrator – WELLTHERM DRILLING LTD
Appointment of Liquidators – CHEMCHINA UK LIMITED
Appointment of Liquidators – MCKC LIMITED
Appointment of Liquidators – VALAGRO UK LIMITED
Appointment of Liquidators – MCNIVEN ROSS LIMITED
Appointment of Liquidators – UNIVERSYS LIMITED
Petitions to wind up (Companies) – DEO VOLENTE LEGAL LLP
Petitions to wind up (Companies) – OXY-PLANTS LTD
Appointment of Administrator – MAGNUS SEARCH LTD
Appointment of Liquidators – WILLIAM THOMPSON HOMES (HORNS ROAD) LIMITED
Appointment of Liquidators – LK MARKETING CONSULTANCY LTD
Appointment of Liquidators – TEST STRIKE UK LIMITED
Appointment of Liquidators – MELVILLE PROPERTY GROUP LIMITED
Appointment of Liquidators – ONE LANSDOWNE ROAD LIMITED
Appointment of Liquidators – BROOKE, EDGLEY (INDUSTRIAL CHIMNEYS) LIMITED
Appointment of Liquidators – NIMBUS LIGHTNING PROTECTION LIMITED
Appointment of Liquidators – INDEPTH SERVICES LIMITED
Appointment of Liquidators – CARDINAL SPECIALIST SERVICES LIMITED
Appointment of Liquidators – TRINITY TEN LIMITED
Appointment of Liquidators – C.J.S. (EASTERN) LIMITED
Appointment of Liquidators – R. LANGSTON JONES & COMPANY LIMITED
Appointment of Liquidators – FALL ARREST SERVICES LIMITED
Appointment of Liquidators – PTSG ELECTRICAL TESTING SERVICES LIMITED
Appointment of Liquidators – PROTECTIS LIMITED
Appointment of Liquidators – HJC DIGITAL LTD
Appointment of Liquidators – OHMEGA TESTING SERVICES LIMITED
Appointment of Liquidators – LIGHTNING PROTECTION TESTING LIMITED
Appointment of Liquidators – WHYTE SPACE CONSULTING LTD
Appointment of Liquidators – NICHOLFILMS LIMITED
Appointment of Liquidators – GUARDIAN CRADLE MAINTENANCE LTD
Appointment of Liquidators – RICHARD SPENCER LIMITED
Appointment of Liquidators – TENACITY LIMITED
Appointment of Liquidators – AT IDENTITY LTD
Appointment of Liquidators – 2150 UK LIMITED
Appointment of Liquidators – QS COMMERCIAL CONSULTING LTD
Appointment of Liquidators – ELICA 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!
️ The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.