Business news 13 February 2025
GDP, 4 day week, interest rates, housing market, mortgage rates, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
GDP unexpectedly rises
The UK Economy grew by 0.1% in the fourth quarter, beating expectations, according to a preliminary estimate from the UK’s Office for National Statistics on Thursday. Economists polled by Reuters had expected the country’s GDP to contract by 0.1% over the period.m The services and construction sectors contributed to the better-than-expected performance in the economy, up 0.2% and 0.5% respectively, but production fell by 0.8%, the ONS said.
MPs push for four-day week
A group of Labour MPs are pushing for Angela Rayner to adopt a four-day working week in her employment rights bill. They argue that the bill does not go far enough as it only allows workers to compress their hours rather than reducing them altogether. While compressed hours may see an employee complete the same number of hours over fewer days, the 4 Day Week Foundation says moving from a 40-hour week to 32 hours per week will improve work-life balances and maintain productivity. Deputy Prime Minister Ms Rayner has previously said a four-day week is “no threat to the economy.”
Rate-setter backs ‘cautious’ cuts
Megan Greene, an external member of the Bank of England’s Monetary Policy Committee, has backed a “cautious” approach to cutting interest rates, despite concerns that recent news around the economy has been “uncomfortable.” Ms Greene told the Institute of Directors that while the process of inflation coming down is “broadly on track,” she supports a “cautious and gradual” approach to rate cuts as the Bank looks to bring inflation down to its 2% target.
Housing market stalls
Analysis from the Royal Institution of Chartered Surveyors (RICS) shows that agreed sales and inquiries from new buyers were flat in January compared to December. The proportion of agents reporting an increase in new buyer enquiries has fallen in each of the past five months, pointing to a slowdown in demand. However, estate agents and surveyors remain optimistic for prospects further ahead, with most believing sales will pick up over the spring, partly inspired by further potential interest rate cuts. While house prices rose in January, values are forecast to remain fairly flat over the coming months.
Mortgage rates drop below 4%
Mortgage rates have fallen below 4% as a price war intensifies ahead of the stamp duty deadline. Barclays, Santander, TSB, and Lloyds have all cut rates following the Bank of England’s decision to cut the base rate to 4.5%. This will boost buyers amid the rush to beat the stamp duty hike, with the tax-free allowance for first-time buyers set to fall from £425,000 to £300,000 in April
Markets
Yesterday, the FTSE 100 closed up above 8800, up 0.34% at 8807.44 and the Euro Stoxx 50 closed up 0.27% at 5405.65. Overnight in the US the higher than expected inflation reading dampened interest rate hopes and the S&P 500 fell 0.27% to X6051.97 while the NASDAQ ended flat at 19649.95.
US Inflation perked up more than anticipated in January, providing further incentive for the Federal Reserve to hold the line on interest rates. The consumer price index, a broad measure of costs in goods and services across the US economy, accelerated a seasonally adjusted 0.5% for the month, putting the annual inflation rate at 3%, the Bureau of Labor Statistics reported Wednesday. They were higher than the respective Dow Jones estimates for 0.3% and 2.9%. The annual rate was 0.1 percentage point higher than December.
This morning on currencies, the pound is currently worth $1.250 and €1.199. On Commodities, Oil (Brent) is at $74.15 & Gold is at $2917. On the stock markets, the FTSE 100 is currently down 0.85% at 8732 and the Eurostoxx 50 is up 1.1% at 5465.
Barclays shares plunged as it left the outlook for next year unchanged even after solid earnings. “Little new to get excited about,” Citi said. The bank’s traders had their best fourth-quarter performance in at least a decade, with revenue from equities trading surging 40%.
CEOs set to embrace M&A
Nearly all UK chief executives expect to see M&A activity this year, with a poll by EY showing that 99% expect to actively pursue transactions. The poll of 100 CEOs saw 62% say they will look at buying another business, with this up from 40% in September. The same proportion said they will look at joint ventures or strategic alliances. Silvia Rindone, UK&I managing partner for strategy and transactions at EY, said M&A activity is “set to rebound in 2025,” with this “driven by strategic imperatives, digital innovation, and a more favourable regulatory climate.”
Reform vows tax on renewable energy
Reform UK has detailed a set of “policies to undo the effects of net zero,” saying it would introduce a windfall tax on renewable energy that would include a “special corporation tax.” Deputy leader Richard Tice said Reform wants to “recover the cost of subsidies from the renewables industry,” adding that these total around £10bn a year. Reform’s election manifesto pledged to scrap energy levies and net zero “to slash energy bills and save each household £500 per year.”
Nationwide warns on cash ISA tax cuts
Nationwide, Britain’s largest building society, has warned that potential cuts to tax breaks on cash ISAs could hinder mortgage access for those looking to get on the property ladder. Tom Riley, director of retail products at Nationwide, said: “Cash ISAs not only help ordinary people save efficiently but enable us to fund our first-time-buyer lending.” The Building Societies Association has also urged the Government to maintain these savings accounts, countering calls from City firms to limit them.The total value of cash ISAs stands at approximately £300bn.
Law firm boss warns over tax changes
Dr Stephen Bence, chief executive of law firm Vardags, has voiced concern over Chancellor Rachel Reeves’ changes to tax policy, warning that they could hinder economic growth. He argues that changes to non-dom rules “make it deeply unattractive for these internationally mobile people to remain in the UK.” High and ultra-high net worth individuals, he says, “have been voting with their feet” and leaving the country at a far higher rate since the shift was announced. Dr Bence also says “utterly naïve” changes to employer National Insurance contributions are “about as anti-growth as one can get,” arguing that raising the cost of employing people has “already tipped some businesses over the edge.” He also criticises “short-sighted” changes to inheritance tax which mean family businesses are no longer exempt. He notes that IHT is now payable on any value above £1m, “albeit at half the normal rate.”
Latest Insolvencies
Appointment of Administrator – SWIFTCARE UK LIMITED
Appointment of Administrator – GJ2020 LIMITED
Appointment of Liquidators – CAROLYNNE MARSHALL LIMITED
Appointment of Liquidators – WILLEW CONSULTING LIMITED
Appointment of Liquidators – BINNACLE CONSULTANCY LIMITED
Appointment of Liquidators – ELDERBERRY CONSTRUCTION LTD
Appointment of Liquidators – NEXTGENACCESS HOLDCO LIMITED
Appointment of Liquidators – THE MOTLEY GROUP LIMITED
Appointment of Liquidators – RESIDENTIAL MORTGAGE SECURITIES 32 PLC
Appointment of Liquidators – ISS TECHNICAL SERVICES HOLDINGS LIMITED
Appointment of Liquidators – LRSP BORROWER SPV LIMITED
Appointment of Liquidators – BURYFIELD GRANGE LIMITED
Appointment of Liquidators – STONED LIMITED
Appointment of Liquidators – JSEAS MARINE SERVICES LIMITED
Appointment of Liquidators – SOUTHPORT HIRE PURCHASE FINANCE COMPANY LIMITED(THE)
Appointment of Liquidators – ST. PETERS DEVELOPMENTS LIMITED
Petitions to wind up (Companies) – MANYA BUILDING SUPPLIES LIMITED
Appointment of Liquidators – CDW INDEPENDENT LIMITED
Petitions to wind up (Companies) – WHITE COCONUT LTD
Petitions to wind up (Companies) – REID GLOBAL TECH LTD
Appointment of Liquidators – D. SPICER LIMITED
Appointment of Liquidators – REBECCA VINCENT CONSULTING LTD
Appointment of Liquidators – ARTISTIC CREATIONS AND CONSULTING LTD
Appointment of Liquidators – LADKINS LIMITED
Appointment of Liquidators – VKM HEALTHCARE LIMITED
Appointment of Liquidators – G.U.S. PROPERTY MANAGEMENT LIMITED
Appointment of Administrator – JOYCE EUROPEAN LOGISTICS LTD
Appointment of Liquidators – WIPRO UK LIMITED
Petitions to wind up (Companies) – ALM HOUSING 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.