Business news 13 August 2025
SMEs paralysed by economic uncertainty. Economic slowdown hits jobs market. Retail sales rise but costs loom. Public sector productivity failings costs UK £80bn. Plus markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
💁♀️SMEs paralysed by economic uncertainty
Small and medium-sized enterprises (SMEs) are hesitant to invest due to economic uncertainty, according to the Azets Barometer Spring Survey. High wage costs, tariffs, and unpredictable financial conditions are major concerns. Peter Gallanagh, CEO of Azets, stated: “SMEs are asking for clarity from the Government around tax policy and long-term economic plans.” The survey reveals that SMEs, which represent 99.8% of UK businesses and employ 60% of the workforce, are treating cash as insurance rather than a growth tool. Confidence in government support for skills training is also low, with only 18% of firms optimistic about solutions.
📉Economic slowdown hits jobs market
Unemployment in the UK remains steady at 4.7%, according to the Office for National Statistics (ONS). However, pay growth has slowed from 5% to 4.6%, and vacancy rates have dropped by 44,000, marking the 37th consecutive decline. Suren Thiru, economics director at the ICAEW, noted that rising employer national insurance costs are impacting hiring. He stated: “The UK jobs market is facing more pain in the coming months.” Recent reports indicate that recruitment intentions are at a record low, particularly affecting young job seekers. Rachel Reeves, the Chancellor, defended Labour’s job creation record but acknowledged the need for further progress.
🏢Public sector productivity failings costs UK £80bn
Research by EY reveals that declining productivity in the NHS and public services costs the UK economy £80bn annually. Since 2019, public sector output has fallen by 5%, while the private sector has grown by 3%. If productivity gaps persist, losses could reach £170bn by 2030. Peter Arnold, chief UK economist at EY, said: “If left unaddressed, [underperforming productivity] will continue to act as a drag on UK growth.” Arnold added: “With public sector spending now accounting for 44% of GDP, a more productive public sector is vital to achieving better productivity and a stronger UK economy.”
🛏 Over 3.5m people now exempt from finding a job
Data published by the Department for Work and Pensions (DWP) show the number of Britons claiming Universal Credit with no requirement to look for work is up by a million since Labour came to power, to reach 3.7m people. The over-50s are driving the surge, with experts suggesting this was partly linked to the rising state pension age – more people in their mid-60s are now eligible for working age benefits – while rising unemployment and the worsening jobs market had also pushed more people onto benefits.
🛍️Retail sales rise but costs loom
UK retail sales increased by 2.5% in July compared to last year, according to British Retail Consortium (BRC)-KPMG data. However, this growth is insufficient to cover the £7bn in new costs imposed on the sector. Food sales rose by 3.9%, driven by warm weather, but inflation at 4% indicates higher prices rather than increased demand. BRC chief executive Helen Dickinson warned that further taxes could force retailers to make tough decisions, impacting jobs and consumer spending. Barclays reported a 1.4% rise in consumer card spending, but confidence in the economy fell to 22%.
🏗️ Planning Reform
Chancellor of the Exchequer Rachel Reeves is drawing up plans for another overhaul of Britain’s planning rules amid frustration on Downing Street at a lack of progress around a policy seen as crucial to boosting economic growth. Prime Minister Keir Starmer has complained to colleagues and suggested a new planning bill, which is now being pushed by Reeves. A new planning bill could raise the bar at which infrastructure projects can be challenged by judicial review, and limit the number of legal challenges any project can face. Reeves and Prime Minister Keir Starmer see unblocking the planning system as a critical step to speed the delivery of infrastructure projects and lift Britain’s anemic growth rate.
🏭Ineos warns of soaring costs hitting manufacturing
British manufacturers are under intense pressure from high energy and emissions costs, undermining their ability to compete with rivals abroad, according to chemicals giant Ineos. “Unless there is a significant turnaround in the next couple of years with regards to high energy and carbon costs, UK manufacturing is under threat,” the company said in an email.
📈Markets
📈Yesterday, the FTSE 100 closed up 0.2% at 9147.81 boosted by a strong first half set of results from Industrial engineering firm Spirax Group. The Euro Stoxx 50 closed up 0.08% at 5335.97.
Global stocks have reached new all-time highs, with the MSCI All Country World Index hitting a record peak. European markets are showing strength with the Stoxx 600 up 0.4%. Asian markets are particularly strong, up as much as 1.5% to their highest since February 2021, led by gains in Hong Kong and Japan. Markets are pricing in expectations of monetary policy easing, with a 25-basis-point Fed rate cut being priced into money markets. Bond market volatility has reached its lowest levels, as measured by the MOVE Index. Gold is posting modest gains following the latest US inflation data.
Overnight in the US the S&P 500 rose 1.13% to 6445.76 and the Composite NASDAQ rose 1.39% to 21681.91 as markets hit all time highs as the US and China agreed to a 90-day extension to iron out a comprehensive trade agreement and US CPI inflation came in with a seasonally adjusted increase of 0.2% for the month and an annualized rate of 2.7%, near on as expected.
💱This morning on currencies, the pound is currently worth $1.357 and €1.157.
On Commodities, 🛢️Oil (Brent) is at $65.95 & 💰Gold is at $3363.
📈On the stock markets, the FTSE 100 is currently up 0.15% at 9161.55 and the Eurostoxx 50 is up 0.77% at 5377.7.
⚱Labour looks to hike IHT and CGT to help plug £40bn hole
The Guardian reports that ministers are considering introducing a lifetime cap on the amount an individual can give away as part of their inheritance tax planning. At present, gifts made seven years before someone dies are not subject to IHT. A source told the paper that the Treasury is also reviewing rules around the taper rate, which sees gifts given three to seven years before death taxed on a sliding scale, from 32% to 8%. “With so much wealth stored in assets like houses that have shot up in value, we have to find ways to better tap into the inheritances of those who can afford to contribute more,” the source said. The Treasury is also looking at increasing capital gains tax rates with an allowance for investors who put money into British businesses. Commenting on the news, Sir Mel Stride, the Conservative shadow chancellor, said: “Those who have worked hard, saved and want to pass something on to their loved ones shouldn’t be punished by yet more taxes from Labour…Rachel Reeves is taxing your family’s future to fund her failure.”
🏦BoE trims QE loss estimate
The Bank of England (BoE) has revised its estimate of net losses from its bond-buying programme to £115bn, down from £120bn, which the Treasury will have to cover. While the finance ministry profited £124bn during low interest rates, current higher rates have led to significant losses, projected to reach £30bn annually. BoE Governor Andrew Bailey stated that changes to the QE structure could disrupt monetary policy, despite criticism from politicians and former officials.
Reuters
Profits at Page slump amid recruitment gloom
PageGroup has revealed that profits fell over 99% in the first half of the year amid a global slowdown in hiring. The company made a pre-tax profit of £200,000 between January and June – 99.2% below the £27.7m it delivered in the same period of last year.
🏠Persimmon
Persimmon reported a rise in first half profit and it maintained its completions outlook for the full year. In the six months to June 30, pretax profit edged up 0.3% to £146.7 million from £146.3 million. Revenue improved 14% to £1.50 billion from £1.32 billion.
🥓🥚 Reform woos bosses with bacon-and-egg offensive
The deputy leader of Reform UK, Richard Tice, has been hosting breakfasts with UK business leaders as he looks to promote the party’s policies and boost support from corporate Britain. Businesses are being urged to form ties with parry leadership now to avoid being left behind after next year’s devolved elections. Bosses have been asked to compile a list of their biggest bugbears and what Reform can do to fix them. “I’m saying I want a three-pager, no more, with the regulatory problems affecting their industry and their recommended solutions,” Tice says. “We’re in listening mode.”
🚰 Ministers line up administrator for Thames Water
The Environment Secretary has approved the appointment of FTI Consulting to help prepare for the possible collapse of Thames Water. Steve Reed told the House of Commons in June that the Government had stepped up its preparations for the possible insolvency of Thames Water, which has close to £20bn of debt, should it fail to secure a private sector bailout. The industry regulator, Ofwat, has been in talks with the company and its largest shareholders for months on a rescue deal. The Times reports that one of the leading contenders to buy Thames Water if it was put into special administration is the Chinese firm CKI, which already owns Northumbrian Water and UK Power Networks.
🚨Latest Insolvencies
Appointment of Administrator – ANTS GROUP LIMITED
Appointment of Administrator – FORTITUDO LTD
Appointment of Administrator – OWN PROJECTS LIMITED
Appointment of Administrator – PRETTY TECHNICAL LIMITED
Appointment of Administrator – VERSARIEN GRAPHENE LIMITED
Appointment of Liquidators – PROJECT 2017 LIMITED
Appointment of Liquidators – AM PREMIER CONSULTING LTD
Appointment of Liquidators – PATBREW INVESTMENTS LIMITED
Appointment of Liquidators – SONHO CAPITAL LIMITED
Appointment of Liquidators – 6-10 TRAFFIC MANAGEMENT LIMITED
Appointment of Liquidators – DREAMERS REALITY LTD
Petitions to wind up (Companies) – CHESHIRE RENEWABLES (ELECTRICAL) LTD
Winding up Order (Companies) – LEISURE CARAVANS STORAGE LIMITED
Petitions to wind up (Companies) – BELDOM’S SKIP HIRE LIMITED
Petitions to wind up (Companies) – GM CIVIL & STRUCTURAL CONSULTING ENGINEERS LTD
Petitions to wind up (Companies) – APEX TRAFFIC MANAGEMENT LTD
Petitions to wind up (Companies) – POLLOKSHIELDS DEVELOPMENT AGENCY
Petitions to wind up (Companies) – HUTTON ENGINEERING LIMITED
Petitions to wind up (Companies) – CHEDSTOW (NEWCASTLE) LIMITED
Petitions to wind up (Companies) – B D ELECTRICAL IW LTD
Petitions to wind up (Companies) – CITY BUILDING AND JOINERY LIMITED
Appointment of Liquidators – CA’S SORELL LIMITED
Appointment of Administrator – ARRAN DEVELOPMENT TRUST
Appointment of Liquidators – THE TEN GROUP LIMITED
Appointment of Liquidators – DIEGRAVE HOLDINGS LIMITED
Appointment of Liquidators – SEK TRADING LIMITED
Appointment of Liquidators – MULL GEOPHYSICAL 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.