Business news 12 August 2025
Rate cut could boost SME lending. Economists expect economy to rebound. Fund managers less optimistic over global economy.Sales surge but costs are climbing for retailers. Plus markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
💁♀️Implications of today’s news for Small Businesses on Credit
If your business operates on credit or offers goods/services on credit, today’s news matters.
Stronger consumer spending—especially in retail and leisure—may improve cash flow, but cooling hiring and pay growth suggest volatility ahead.
With fewer job opportunities and slowed wage growth, some customers may delay payments or seek extended terms—heightening credit risk.
Global trade stability offers short-term relief, but continued uncertainty may affect your cost of goods or payment timelines.
Late payment pressures may intensify: Without robust cash reserves or flexible financing, small businesses could face strained liquidity if customers delay.
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.
🏦Rate cut could boost SME lending
Analysis from Trade Direct Insurance suggests that the Bank of England’s decision to reduce its base interest rate from 4.25% to 4% will deliver a boost for SMEs, saying it will ease loan repayments and could encourage firms to revisit delayed investments. The report suggests that challenger and specialist banks, which now account for around 60% of SME lending, may capitalise on the rate cut by offering more competitive financing options to small businesses. The average interest rate on SME loans is forecast to fall from 7.65% to approximately 7.4%.
💰Economists expect economy to rebound
Economists polled by Bloomberg expect the UK economy to have returned to growth in June after two consecutive months of declines, predicting that Office for National Statistics (ONS) data due this week will reveal growth of 0.2%. This comes after the economy contracted by 0.3% in April and 0.1% in May. The experts also expect the ONS figures to show growth of 0.1% in Q2. This would mark a fall compared to the 0.7% growth in GDP recorded in Q1, which Barclays economist Jack Meaning noted was largely driven by “temporary factors,” including an increase in activity before tariffs and taxes were hiked.
🌎 Fund managers less optimistic over global economy
A poll of fund managers by Bank of America shows that more than 40% expect the global economy to weaken over the next 12 months, with US economic policy and weaker consumer demand set to have a negative impact. This marks a decline on a year ago, when 31% expected the economy to decline. The survey also shows that 18% expect inflation to increase.
🏬Sales surge but costs are climbing for retailers
Data from the British Retail Consortium (BRC) and KPMG shows that retail sales in the UK increased by 2.5% year on year in July, with this driven by warm weather and major sporting events. Consumers spent more on food and clothing, with discretionary spending rising by 2.4%. However, BRC chief executive Helen Dickinson warned that this growth “barely touched the sides” of rising costs, including potential tax increases. Confidence in the UK economy fell to 22%, while personal finance confidence remained stable at 75%. Linda Ellett, UK head of consumer, retail and leisure at KPMG, commented: “With employment costs having risen and inflation both a business and consumer side pressure, it remains a challenging trading environment for many retailers.”
🛍️ Retailers warn against tax hikes
Chancellor Rachel Reeves has been advised against increasing taxes on businesses in her upcoming Budget, as retailers face challenges in selling stock amid rising costs. Helen Dickinson, CEO of the British Retail Consortium, said that if the autumn Budget “sees more taxes levied on retailers’ shoulders, many will be forced to make difficult choices about the future of shops and jobs.”
📈Markets
📈Yesterday, the FTSE 100 closed up 0.37% at 9129.71 (The index has gained 12% over the past 52 weeks) and the Euro Stoxx 50 closed up 0.30% at 5331.85. Overnight in the US the S&P 500 fell 0.25% to 6373.45, retreating after hitting a record high during the day, and the Composite NASDAQ fell 0.3% to 21385.41.
President Trump announced a 90‑day extension of the tariff truce with China, averting a pending escalation in trade duties and boosting investor confidence globally.
Stock markets across Asia responded positively to the trade de-escalation. Japan’s Nikkei 225 soared to a record high of 42,849.67, led by tech gains, SoftBank shares, and optimism on U.S.–Japan trade relations. Broader Asian indices also climbed—Australia’s ASX reached new highs, while China’s and Hong Kong’s markets were largely steady.
💱This morning on currencies, the pound is s showing strength, up about 0.1% against the dollar at $1.344 and against the Euro €1.159. Traders are closely watching today’s U.S. consumer inflation report, which could shape expectations for a Fed rate cut scheduled as early as mid‑September.
Key unemployment data out today shows the private sector pay growth has slowed and unemployment remains steady at 4.7%. July saw a loss of 8,000 payroll jobs, marking the sixth consecutive monthly decline. Vacancies dropped by 44,000.
On Commodities, 🛢️Oil (Brent) is at $66.67 & 💰Gold is at $3349. Gold declined after Trump said he would not impose tariffs on precious metals.
📈On the stock markets, the FTSE 100 is up 0.3% today. European stocks more broadly rose 0.4% in early London trading, with luxury goods stocks leading the gains.
🅰️ℹ️ HMRC uses AI to monitor taxpayers
HMRC has confirmed it uses AI to monitor taxpayers’ social media activity and spending patterns, saying that the aim is to identify potential tax evasion and ensure compliance. HMRC said staff will use AI to identify suspected tax evaders and send out “automated nudges” asking them to pay what they owe. Critics say this raises concerns about privacy and the extent of surveillance on individuals’ digital footprints. An HMRC spokesperson said: “We are committed to using technology to enhance our enforcement capabilities.”
💻Nvidia and Advanced Micro Devices
Nvidia and Advanced Micro Devices (AMD) have agreed to pay the US government 15% of their Chinese revenues i.e. exports to China as part of a deal to secure licences to export to China. This marks the first time the US government has shifted to taxing the exports of a US company. Normally a licence for chip exports is decided on national security grounds. Under this agreement Nvidia will pay 15% of its revenues from H20 chips in China to the US government. The development has caused concern that the US government will try to impose taxes on exports of US companies.
🛍️Marks & Spencer
Marks & Spencer fully restored its Click & Collect service, almost four months after a crippling cyberattack knocked out its online operations. The attack, traced to hacking groups DragonForce and Scattered Spider, hit in late April, shutting down online orders, contactless payments, and Click & Collect. Home delivery orders bounced back after six weeks, but Click & Collect was the final piece of the puzzle.
🌏Investors target emerging market opportunities
Research from Fidelity International shows that UK retail investors are increasingly looking to enter emerging markets, with growing economies across Africa, Asia, Latin America and Europe drawing those looking for higher returns. The analysis shows that almost 15% of investors believe emerging markets offer good investment opportunities for the financial year. Andrew Oxlade, investment director at Fidelity International, said: “We’re seeing selective opportunities emerging in global markets this year, and for some investors, emerging markets are coming back into focus.”
⏰Early pension withdrawals raise alarm
Nearly half of individuals making flexible pension withdrawals are under state pension age, raising concerns about their financial future. According to the Department for Work and Pensions, 71% of the £36bn withdrawn since the 2015 Pension Freedoms reform came from those under 65, with 43% made by individuals under 60. Stephen Lowe, communications director at Just Group, said: “Pension flexibility is double-edged – it can be done for good or bad reasons,” while Lucie Spencer from Evelyn Partners suggested that many may be taking cash earlier than advisable, risking shortfalls in retirement.
🚨Latest Insolvencies
Petitions to wind up (Companies) – BARTON TT TAXIS LIMITED
Appointment of Administrator – UNIVERSAL PHARMACY LTD
Appointment of Administrator – RRS NATIONAL LIMITED
Appointment of Administrator – O’FLINN LIMITED
Appointment of Administrator – VERTICAL FUTURE LIMITED
Appointment of Administrator – URBAN TRUANT POWER LTD
Appointment of Liquidators – HOLDCOTEMP022025 LIMITED
Appointment of Liquidators – FRIARY NO.6 PLC
Appointment of Liquidators – M R DURRANS FISHING LTD
Appointment of Liquidators – PROCTOR PROJECTS LIMITED
Appointment of Liquidators – BAA PARTNERSHIP LIMITED
Appointment of Liquidators – UK OM (LP3) LIMITED
Appointment of Liquidators – SBI CONSULTANTS LIMITED
Appointment of Liquidators – FAIR TRIALS INTERNATIONAL
Appointment of Liquidators – KISHORN SPECIALIST CONTRACTORS LIMITED
Petitions to wind up (Companies) – ANDREW WRIGHT WINDOWS LIMITED
Petitions to wind up (Companies) – RUBBER & PLASTIC INDUSTRIES (SCOTLAND) LIMITED
Petitions to wind up (Companies) – ANDREW WRIGHT GLASS LIMITED
Appointment of Liquidators – NAP HEIGHT SERVICES LIMITED
Appointment of Liquidators – LAYLALYLE DESIGNS LIMITED
Appointment of Liquidators – APEX STEEPLEJACKS LIMITED
Appointment of Liquidators – NATHS LIMITED
Appointment of Liquidators – GLENUGIE SUBSEA LTD
Appointment of Liquidators – PENDRICH ROPE ACCESS LIMITED
Petitions to wind up (Companies) – JOHNSTON FORESTRY LIMITED
Appointment of Liquidators – FLAT EARTH PROPERTIES LIMITED
Winding up Order (Companies) – STEVEN YARDLEY FURNITURE MAKER LTD
Appointment of Liquidators – BLAKESET LIMITED
Appointment of Liquidators – WOLAND IT LTD
Petitions to wind up (Companies) – EUROPA BANK PUBLIC LIMITED COMPANY
Petitions to wind up (Companies) – AUTOFUSION LIMITED
Petitions to wind up (Companies) – ELLIS HIGHWAYS CONSULTANCY LTD
Appointment of Administrator – GLODEN LIMITED
Petitions to wind up (Companies) – KIERISH DEVELOPMENTS LIMITED
Petitions to wind up (Companies) – HDY AGENCY LTD
Appointment of Liquidators – GLAN TEIFI TRUSSES AND ROOFING SUPPLIES LTD
Appointment of Liquidators – PENNOD LIMITED
Appointment of Liquidators – GREEN STEEL & CLADDING LIMITED
Appointment of Liquidators – TRENWICK UK LIMITED
Appointment of Liquidators – MOUNTLAKE PROPERTY LIMITED
Appointment of Liquidators – CCTFC70 LIMITED
Appointment of Administrator – AQUALIFE SERVICES LTD.
Appointment of Liquidators – HEJ CAPITAL LTD
Appointment of Liquidators – MERLEWOOD CONSULTING LTD
Appointment of Liquidators – AROB SERVICES LIMITED
Petitions to wind up (Companies) – SY CONTRACTS 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!
️ The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.