Business news 14 May 2025
Labour’s jobs tax hits employment. Zero-hours contracts surge. Textile industry faces insolvency crisis. Defense, rates, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Please note: on the 19/3/25 CPA moved after 45 years on King Street, to new offices a couple of miles down the road at Profile West, 950 Great West Road, Brentford, TW8 9ES.
Labour’s jobs tax hits employment
The latest jobs figures indicate a troubling trend in the UK labour market, with the unemployment rate rising to 4.5% between January and March, the highest level in nearly four years. The increase is attributed to Labour’s rise in employers’ National Insurance contributions, leading to a reduction in hiring and a drop in vacancies. Average weekly earnings, excluding bonuses, grew by 5.6% in early 2024, but this is a decline from previous months. ONS director of economic statistics Liz McKeown said: “Wage growth slowed slightly in the latest period but remains relatively strong, with public and private sectors now showing little difference. The broader picture continues to be of the labour market cooling, with the number of employees on payroll falling in the first quarter of the year. The number of job vacancies has also fallen again, with the rate of decline increasing in the last few months.”
Zero-hours contracts surge in UK
Recent data reveals that 1.17m people in the UK are currently on zero-hours contracts, marking a 12% increase over the past year, despite Labour’s commitment to abolish these “exploitative” arrangements. Rebecca Florisson, an analyst at the Work Foundation, said: “The [Employment Rights] law is likely to be passed later this year, and we had expected to see the start of a long-term decline of zero-hour contracts in the UK.” However, the opposite trend has emerged, with many workers trapped in unstable jobs, often trading security for flexibility. The Employment Rights Bill aims to ban zero-hours contracts without work offers and establish guaranteed hours based on a twelve-week period. Yet, implementation is not expected until late 2026, leaving many workers in precarious positions.
Textile industry faces insolvency crisis
Britain’s £60bn textile industry is facing a potential wave of insolvencies due to a new trade deal with India, according to Coface, a trade insurance company. The free trade agreement will eliminate tariffs on textile imports from India, which currently range from 10% to 20%, putting pressure on UK manufacturers already operating on tight margins. Jonathan Steenberg, Coface’s chief economist, warned that insolvency rates in the sector could rise by 5% to 7% over the next 12 to 18 months. The anticipated rise in insolvencies could lead to numerous company closures and significant job losses, particularly in less affluent areas of the UK.
New measures unveiled to boost defence
UK Defence Minister John Healey has announced new measures to support small and medium-sized enterprises (SMEs) in the defence sector. The reforms aim to expedite procurement processes and promote investment in emerging technologies. Healey said: “The war in Ukraine confronts us with the truth that a military is only as strong as the industry which stands behind it.” The Government seeks to transform Britain into a “defence industrial superpower,” with plans to reduce procurement times for major equipment from six years to two and to establish a dedicated innovation body with a budget of £400m for the current financial year. A Defence Industrial Joint Council will also be launched to enhance public and private investment coordination in the sector.
Rates may need to stay high for longer
Huw Pill, Chief Economist at the Bank of England, said on Tuesday that that interest rates may need to remain elevated longer than anticipated due to persistent inflation. Pill stated that inflation could remain “too high for the BoE’s 2% target,” suggesting that “the response of monetary policy…needs to be somewhat more aggressive or more persistent.”
Markets
Yesterday, the FTSE 100 closed flat at 8602.92 while the Euro Stoxx 50 closed up 0.44% at 5426.21. Overnight in the US the S&P 500 rose 0.72% to 5886.55 and the NASDAQ rose 1.61% to 19010.09, putting both indexes close to where they started 2025.
Tech stocks led gains in the US. Semiconductor companies in particular had strong day, with Nvidia leading the sector with gains over 6% as the company is set to sell chips to Saudia Arabia.
UK unemployment edged up slightly in the three months to March, while pay growth declined, according to numbers released on Tuesday. The Office for National Statistics reported the UK jobless rate at 4.5% in the three months to March 2025, in line with consensus and up from 4.4% in the previous three-month period to February.
US Inflation was slightly lower than expected (2.3%) in April as President Trump’s tariffs just began hitting the slowing US economy.
This morning on currencies, the pound is currently worth $1.3355 and €1.186. On Commodities, Oil (Brent) is at $66 & Gold is at $3235. On the stock markets, the FTSE 100 is currently down 0.25% at 8582 and the Eurostoxx 50 is down 0.6% at 5384.
China hits out
China criticised the recent US-UK trade deal, suggesting it was to the “detriment” of China. The seem aggrieved regarding security requirements for Britain’s steel and pharmaceuticals industries, which could affect Chinese products in British supply chains.
Aviva & Direct Line
The UK Competition & Markets Authority is considering whether Aviva’s planned acquisition of car and home insurer Direct Line will weaken competition within the UK. The regulator launched its merger inquiry to both insurers on Wednesday and has until a July 10 deadline to reach its phase 1 decision.
Microsoft
The tech titan has announced it will cut its workforce by 3% or 6000 positions in an effort to boost efficiency and removing middle managers, despite having posted healthy net income of over $25 last quarter.
Tax reforms push tycoon to Milan
Rolly van Rappard, co-founder of CVC Capital, is contemplating a move from London to Milan due to recent tax reforms in the UK. Reports indicate that changes to the “non-dom” regime and inheritance tax rules are prompting high-net-worth individuals to reconsider their residency. Van Rappard, whose net worth is estimated at $1.5bn, is not alone; Richard Gnodde of Goldman Sachs and steel magnate Lakshmi Mittal have also expressed concerns over the UK’s tax landscape. The Italian government has been actively courting wealthy expatriates with tax incentives, including a scheme allowing tax breaks on overseas earnings for up to 15 years.
FCA aims to simplify insurance rules
The Financial Conduct Authority (FCA) is set to simplify the UK’s insurance regulations to enhance competitiveness and reduce costs for firms. The regulator plans to eliminate “outdated or duplicated” requirements, allowing companies greater flexibility in product reviews and training requirements. Matt Brewis, director of insurance at the FCA, said: “We are stripping back our insurance rule book by removing ineffective, outdated or duplicated regulation.” The proposed changes aim to support lower costs and wider access for businesses and consumers while maintaining essential protections for smaller customers. The FCA is also looking to define large commercial insurance customers who should not be subject to its conduct rules. Feedback on these proposals is invited by July 2, 2025.
Latest Insolvencies
Petitions to wind up (Companies) – PORTERGATE PROPERTY MANAGEMENT LIMITED
Appointment of Liquidators – HM PILBEAM LTD
Appointment of Liquidators – STOWSAFE FULFILMENT LIMITED
Appointment of Liquidators – FERNWOOD ABBY LTD
Appointment of Liquidators – CHONG WAH SUPERMARKET LIMITED
Appointment of Liquidators – HIGH HARROGATE WORKING MEN’S CLUB LIMITED
Petitions to wind up (Companies) – SOFTOFFICE LIMITED
Petitions to wind up (Companies) – THE ROSEDALE PARTNERSHIP LIMITED
Petitions to wind up (Companies) – WELLIS LEISURE LTD
Petitions to wind up (Companies) – CENTRAL VENTURES LIMITED
Petitions to wind up (Companies) – ARRIA DATA2TEXT LIMITED
Petitions to wind up (Companies) – COBRA MOBILE LIMITED
Petitions to wind up (Companies) – AGNEWS (SCOTLAND) LTD
Petitions to wind up (Companies) – WORLD WIDE CARRIERS LTD
Petitions to wind up (Companies) – GIN SPA LIMITED
Petitions to wind up (Companies) – GILLCO LIMITED
Petitions to wind up (Companies) – MCKAYS WASTE MANAGEMENT LIMITED
Petitions to wind up (Companies) – DAVID JOHN KITCHENS LTD
Appointment of Administrator – QUICK REACH POWERED ACCESS LTD
Petitions to wind up (Companies) – COOL BLUE COLLEGE LTD
Petitions to wind up (Companies) – MUZ PROPERTIES LTD
Appointment of Liquidators – AETNA GLOBAL BENEFITS (UK) LIMITED
Appointment of Liquidators – FLASH BIDCO LIMITED
Appointment of Administrator – BAR 2064 LIMITED
Appointment of Liquidators – FINALTA ENTERPRISES 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.