Business news 14 January 2025

Regulators urged to boost growth, business trust dented, trade war fears, Government to stick to fiscal rules, workers rights fear, retail and rates rises, manufacturing, consumer confidence, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
FSB urges regulators to boost growth
The Federation of Small Businesses (FSB) has urged the UK’s key regulators to help deliver economic growth, saying sector watchdogs must “put their shoulders to the wheel on growth alongside business and industry.” In letters to watchdogs including the Financial Conduct Authority, Financial Reporting Council, and Competition and Markets Authority, the FSB says it “wholeheartedly” agrees with the Prime Minister that “regulators have a duty to take a long hard look at current activities in their sphere for their impact on economic growth – to be ‘pro-growth’ and ‘pro-investment’ in their partnerships.” Tina McKenzie, policy chair at the FSB, said: “Regulators must grasp this opportunity to propose small business growth measures within their activities and remits. Regulating for growth doesn’t always mean deregulation – sometimes it means better protection for small firms as consumers.” The FSB’s correspondence comes after minsters wrote to a number of watchdogs in December, saying that regulators must support growth.
CBI chair: Chancellor has dented firms’ trust
Rupert Soames, chair of the Confederation of British Industry (CBI), says Rachel Reeves has created a “hole in the confidence and trust of business” by targeting the private sector as she looks to boost government finances, warning that the Chancellor “bruised” British companies by delivering £40bn of tax hikes in the Budget. Noting that the Chancellor said business was “going to have to fill” an “unexpected hole” of about £22bn in public finances, Mr Soames said: “I think sometimes it’s not understood, the extent of the impact, particularly on companies that employ lots of people.” He went on to warn that an increase in employers’ National Insurance contributions is “going to feed through into inflation,” weaken growth and have a negative impact on employment.
CEOs eye supply chains amid trade war fears
A poll from the Conference Board suggests that global executives are prioritising supply chain resilience amid trade war fears, with 85% planning significant changes, including AI use and supplier localisation, to enhance performance.
Experts expect weaker trade growth
Britain’s trade growth is likely to be hampered by Brexit, tariffs set to be introduced by president-elect Donald Trump and a decline in trade with China, according to a report from Boston Consulting Group. The Analysis says that UK trade will grow by 0.7% a year between 2023 and 2033, with this down from a previous estimate of 0.9%. This would see trade growth fall behind domestic GDP growth, which is expected to average 1.6% in the decade to 2033. Tim Figures, partner and associate director at BCG, said the new projections were “concerning for a global trading nation such as the UK.”
PM: Britain will stick to fiscal rules
With government borrowing costs continuing to climb, Prime Minister Keir Starmer says the Treasury will be “ruthless” in cutting government spending and insists that ministers are determined to bring about economic stability. The Prime Minister also insisted that the Government will stick to the fiscal rules that Chancellor Rachel Reeves set out in October’s Budget. He said Labour “set out those fiscal rules very early on… because we knew that the missing ingredient in recent years has been economic stability.” While he said the Chancellor is “doing a fantastic job” and has the “full confidence of the entire party,” Sir Keir declined to answer when asked whether Ms Reeves would still be Chancellor by the next election. However, the PM’s official spokesman later said Ms Reeves will remain Chancellor “for the whole of this Parliament.”
Hiring falls as tax hike nears
A survey by the British Chambers of Commerce shows that approximately 16% of British companies reduced hiring in the fourth quarter of last year, the highest level since early 2021. This marks an increase from the 13% recorded in Q3 and reflects growing concerns over rising costs, particularly due to upcoming tax hikes. Jane Gratton, the BCC’s deputy director of public policy, said: “Business confidence has been hit hard since the Budget,” adding that employers “are now having to plan for a significant increase in employment costs,” including higher National Insurance rates and a hike in the minimum wage.
Workers’ rights plan sparks job fears
Business leaders have warned ministers that enhanced rights for workers could put jobs at risk. Rupert Soames, chair of the Confederation of British Industry, has questioned plans to give workers rights including sick pay and protection from unfair dismissal from day one and the banning of zero-hour contracts, saying: “I think not only will they not employ (people), I think they will let people go. I think there could be quite an ugly rush before some of these things come into force.” Voicing concern over elements of the Employment Rights Bill, Mr Soames warned of becoming an “adventure playground for employment rights lawyers.”
Retailers: Rate rise will hit jobs
Retailers in London’s West End have warned that business rates reforms will drive up property bills by £44.5m a year, with this likely to mean shop closures and job losses. The New West End Company said the 20% increase in rates bills will add to operating costs for retailers which are already bracing for a £5bn hit from the rise in employers’ National Insurance contributions and a higher minimum wage next year. Dee Corsi, chief executive of the New West End Company, said: “Already faced with a rapidly rising tax bill, it is hard to see how increasing the business rates burden won’t tip the scales towards job losses and store closures.” Ms Corsi said that while the Government insists it is targeting retail’s online giants, “it is flagship high streets, like the West End, that will bear the brunt of the new business rates bill.” Helen Dickinson, chief executive of the British Retail Consortium, has described the industry as a “golden goose” that generates tax revenues far beyond its size.
Manufacturers say the UK remains competitive
According to analysis by trade body Make UK and PwC, nearly 60% of senior executives in the manufacturing sector are planning to increase their investment, with optimism driven by a long-term industrial strategy. However, a third of executives remain cautious, fearing an economic downturn this year. Cara Haffey from PwC UK comments: “While it’s true that UK manufacturers are navigating a complex business landscape, compounded by rising costs, there’s a palpable sense of optimism and resilience underpinning the sector’s trajectory for 2025.” Make UK CEO Stephen Phipson said manufacturers “have demonstrated their resilience over and over again in recent years,” and has urged ministers to boost the sector. He said: “It is now vital that the Government sets out as a matter of urgency the immediate and significant priorities as part of its formal industrial strategy, given the very clear benefits manufacturers believe this will bring.”
High taxes pushing industry to extinction, warns Ratcliffe
Ineos owner Sir Jim Ratcliffe has warned that Britain’s chemical industry faces extinction due to high energy prices and carbon taxes, saying a major industry is having “the life squeezed out of it.”
Consumer confidence climbs
Consumer confidence hit its highest level since April 2021 at the end of last year, according to a monthly consumer confidence survey from YouGov and CBRE. The analysis shows an improvement in optimism over areas including business activity and house prices. Despite the lift in consumer optimism, CBRE forecasting lead Sam Miley warned: “The outlook for the economy is weakening, amidst expectations of continually high inflation and concern over the potential for further tax rises.” A recent poll by KPMG UK found that six in ten UK households feel financially secure, with half saying they feel they can spend happily and just 3% unable to cover essential costs. It was also shown that the minority – four in ten – believe that the economy is worsening.
Markets
Yesterday, the FTSE 100 closed down 0.29% at 8224.19 and the Euro Stoxx 50 closed down 0.46% at 4954.21. Overnight in the US markets started to stabilize after a report that Trumps new administration is discussing a gradual approach to ramping up tariffs. Markets are also bracing for US inflation reports this week. The S&P 500 rose 0.16% to 5836.22 and the NASDAQ fell 0.38% to 19088.10.
This morning on currencies, the pound has continued to extend its recent declines and is currently worth $1.219 and €1.1885. On Commodities, Oil (Brent) is at $81.1 & Gold is at $2668. On the stock markets, the FTSE 100 is currently up 0.14% at 8235 and the Eurostoxx 50 is up 0.9% at 4999.
Post Office claims mount
More than 2,000 new compensation claims have been made in the last month by people who believe they are also victims of the Post Office scandal, a government minister has said. Yet many of the more than 4,000 original claimants are still waiting for compensation to be paid.
TikTok
Chinese officials are reported to be evaluating a potential sale of US TikTok to Elon Musk if the company fails to fend off a controversial ban on the short-video app. Although TikTok has dismissed this idea as pure fiction.
Californian fires
The Los Angeles wildfires could result in losses of as much as $30 billion for insurers. The estimates from Wells Fargo and Goldman Sachs are significantly higher than JPMorgan’s forecast last week of about $20 billion.
US bankruptcies soar
US corporate bankruptcies surged to their highest level since the 2008 financial crisis in 2024, with 686 companies filing for bankruptcy. This marked an 8% increase from 2023 and reflects the mounting financial pressures on businesses, which have been exacerbated by high interest rates and inflation. Gregory Daco, chief economist at EY, said: “The persistently elevated cost of goods and services is weighing on consumer demands.”
Spain plans 100% property tax for non-EU residents
Spain is planning to impose a tax of up to 100% on properties bought by non-residents from countries outside the EU. Prime Minister Pedro Sánchez said the move will ensure that available homes are for residents amid a housing crisis in the country. He added that non-EU residents bought 27,000 properties in Spain in 2023, “not to live in” but “to make money from them.”
Latest Insolvencies
Appointment of Liquidators – JAYMO TECHNOLOGY LTD
Appointment of Liquidators – JAMES ABBOTT MANAGEMENT LTD
Petitions to wind up (Companies) – S&B CONTRACTS LTD
Appointment of Liquidators – COLYZEO CAPITAL LLP
Appointment of Liquidators – AVRAPLAN LIMITED
Appointment of Liquidators – JAYMO PROCUREMENT LTD
Appointment of Liquidators – COLYZEO CAPITAL II, LLP
Appointment of Liquidators – PHILIP DIXON CONTRACTORS LIMITED
Petitions to wind up (Companies) – TURNER & HOOCH LIMITED
Appointment of Administrator – MULTIWOOD PRODUCTS LIMITED
Appointment of Administrator – LENUS HEALTH LTD
Appointment of Liquidators – DURKIN DEVELOPMENTS LIMITED
Appointment of Liquidators – BLACK SHEEP MEDIA LTD
Petitions to wind up (Companies) – PG GROUP LTD
Petitions to wind up (Companies) – D L RENDERING LTD
Winding up Order (Companies) – ENERGY13 LIMITED
Winding up Order (Companies) – CLEARMETRIC LIMITED
Petitions to wind up (Companies) – DIVA INTERIORS LIMITED
Petitions to wind up (Companies) – UNDERFLOORHEATING SOLUTIONS UK LIMITED
Winding up Order (Companies) – STURDY CURRENT SOLUTIONS LTD
Petitions to wind up (Companies) – BURLINGTON RETAIL LTD
Appointment of Liquidators – SYNCPLUS LTD
Winding up Order (Companies) – HIBS GROUP LIMITED
Petitions to wind up (Companies) – BEAR WHOLESALE LTD
Petitions to wind up (Companies) – COOBET TRADING LTD
Appointment of Liquidators – BOMMER CONSULTING LTD
Winding up Order (Companies) – BUKOVINA LTD
Winding up Order (Companies) – ANNA (RKS) LTD
Petitions to wind up (Companies) – WESTON RENEWABLES LIMITED
Petitions to wind up (Companies) – EDMONTON MEAT CENTRE LTD
Winding up Order (Companies) – ABC DELIVERIES LTD
Appointment of Liquidators – WAYSTONE FUND SERVICES (UK) LIMITED
Appointment of Administrator – WINDOW DESIGNS 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.