Business news 14 July 2025

Small business sentiment at record low. Business rates rethink. Economy shrinks in May. Rate cut, taxes, jobs, manufacturing,  markets, homes, insolvencies & more business news that we thought would interest our members.

James Salmon, Operations Director.

📢 FSB: Small business sentiment at record low

More small businesses expect to downsize or close than grow over the next 12 months, according to a survey by the Federation of Small Businesses (FSB). The poll found that 27% of small business owners in the UK expect to downsize, sell, or close their businesses while just 25% anticipate growth over the next year. The analysis means that sentiment is at the lowest point since the annual survey was launched in 2008. Warning that small firms are “facing a very dangerous situation,” FSB policy chair Tina McKenzie said: “Confidence being so low, and not showing any improvement since the start of the year, is bad enough. Stagnation and pessimism among small businesses spells huge risk for the overall economy.”

💷Chancellor plots £1.7bn business rates rethink

Chancellor Rachel Reeves is planning a £1.7bn business rates overhaul in the autumn Budget to help fill a £5bn hole in public finances. The proposal involves raising business rates on large retail premises – such as department stores and supermarkets – to fund lower rates for smaller retailers, hospitality, and leisure businesses. Ministers say the effective discount will target online retailers and save independent firms. Larger retailers, including M&S, Asda, Morrisons, Primark, Sainsbury’s, Tesco and B&Q owner Kingfisher, have strongly opposed the move, warning that it will accelerate high street decline, increase prices, and cause widespread job losses. While the Treasury claims only 1% of properties will be affected and that the changes will support smaller firms, Shadow Business Secretary Andrew Griffith warned that the “stealth tax is going to force up prices and lead to more shop closures.” There are growing calls for the retail and hospitality sectors to be exempted, with it suggested that this would see a higher surcharge on warehouses and office blocks. Helen Dickinson, chief executive at the British Retail Consortium, said: “If we want to support the high street and avoid higher prices for customers, the Government must ensure no shop pays more as a result of the business rates reforms.”

💷Economy shrinks in May

Office for National Statistics (ONS) data shows that the UK economy shrank in May, contracting by 0.1%. This follows a 0.3% contraction in April and was driven by a drop in manufacturing and “very weak” retail sales. With May’s figures logged, the economy is now forecast to come in at around 0.1%-0.2% for the April to June period. Hailey Low, associate economist National Institute of Economic and Social Research, said the economy shrinking for two consecutive months suggests that the outlook for growth “remains fragile.” Chancellor Rachel Reeves described the ONS figures as “disappointing,” adding that she is “determined to kickstart economic growth.” Shadow Chancellor Mel Stride said the shrinking economy was the result of Labour’s “reckless choices,” while Shadow Business Secretary Andrew Griffith called on ministers to reverse an “onslaught of tax and regulations” that have hit businesses. Suren Thiru of the ICAEW said: “May’s downbeat outturn means a contraction in GDP across the second quarter looks a racing certainty,” while EY Item Club economist Matt Swannell said it was “all but certain” that GDP would contract overall between April and June. Barret Kupelian, chief economist at PwC, warned that the UK’s economic outlook was “beginning to turn sour.”

🏦Rate cut ‘almost certain’ as growth falters

With Office for National Statistics data showing that the UK economy contracted by 0.1% in May, Deutsche Bank chief economist Sanjay Raja says it is “almost certain” that Bank of England policymakers will cut interest rates when the Monetary Policy Committee (MPC) meets on August 7, with “more to come” in Q4. Rob Wood, chief UK economist at Pantheon Macroeconomics, said: “Headline GDP disappointed, which will keep the market pricing a high probability of an MPC rate cut in August.”

💰Tax rises ahead, warns expert

Faisal Islam, BBC News’ economics editor, believes that the UK is “heading for significant tax rises,” suggesting the autumn Budget may see £10bn to £20bn of further tax hikes. Warning that extending the freeze on income tax thresholds will not be enough, he says: “The noise around wealth taxes points to property and inheritance taxation.” This comes after official data revealed that economic growth declined in May and an Office for Budget Responsibility report warned that Government debt could soar to three times the size of the economy in the long term.

💼Minister hints at tax hikes

Transport Secretary Heidi Alexander has refused to rule out tax rises in the Budget, although she insists the Government will not hike them for those on “modest incomes.” Speaking on Sky News’s Sunday Morning with Trevor Phillips, she said: “We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that.” Ms Alexander went on to say that “when it comes to taxation, fairness is going to be our guiding principle.” She also revealed that cabinet ministers did not “directly” talk about the idea of a wealth tax during a recent away day at Chequers. Her comments come at the end of a week that saw Prime Minister Sir Keir Starmer reiterate that Labour would avoid increases to income tax, VAT and National Insurance, but also fail to rule out extending the freeze on income tax thresholds.

🆒 Labour market shows signs of cooling

The labour market is experiencing a significant slowdown, with the supply of available workers increasing at the fastest rate in nearly five years. According to analysis by KPMG and the Recruitment and Employment Confederation (REC), there has been a decline in permanent vacancies and reduced demand for employees. Consequently, wage growth in the private sector has slowed from 5.5% to 5.3%, marking the slowest pace in four months. Neil Carberry, chief executive of the REC, noted that companies are hesitant to hire due to “the scar tissue left by the spring tax hikes and fear of further business tax rises.” Jon Holt, group chief executive and UK senior partner at KPMG, said the threat of rising employment costs is contributing to a “wait and see” approach among employers. Official jobs market figures show unemployment rose to a four-year high of 4.6% in the three months to April, up from 4.5% in the previous three months.

🎓Graduates face fierce job competition

Entry-level job vacancies in the UK have dropped to their lowest level since 2018, with the number of graduate jobs advertised by employers having fallen by 33% this year. According to recruitment platform Adzuna, UK graduates faced an average of 140 applications per job in 2024, while data shows that entry-level roles at Big Four accountancy firms are down 11%-29% this year. AI is believed to have played a part, with technology capable of repetitive admin tasks usually handed to new-starters, and a poll by Prospects shows that 1 in 10 British students have switched degrees to pre-empt AI. While some blame AI for the decline in entry-level roles, Carl-Benedikt Frey from the Oxford Martin School suggests that inflation and economic uncertainty are more significant factors.

🏭Manufacturing output hits post-pandemic high

UK manufacturing output has surpassed pre-pandemic levels for the first time, driven by a surge in aerospace and defence orders. The report from Make UK and BDO – which covers output to the end of 2023 – also shows the number of manufacturing jobs increased by 12,000 in the 12 months to March 2024, bringing the sector’s total to just under 2.6m. Fhaheen Khan, senior economist at Make UK, said: “Hopefully the post-Covid malaise is firmly in the rear-view mirror,” but cautioned that growth must be evenly distributed across regions. Despite a climb in output, the report also noted a decline in goods exports to the EU. The South West was the strongest performing region, with data showing that it was running at 27% above 2019 levels. This was followed by the East of England, at 21%, and the North West, which is up by a fifth.

📈Markets

📈 On Friday, London equities ended the week on a softer note, with the blue-chip index pulling back from Thursday’s record high. Investor sentiment was weighed down by renewed tariff concerns and disappointing economic data, as the UK economy unexpectedly contracted in May. The FTSE 100 closed down 0.38% at 8941.12 and the Euro Stoxx 50 closed down 1.01% at 5383.48. Over in the US the S&P 500 fell 0.33% to 6259.75 and the NASDAQ fell 0.22% to 20585.53.

BOE Governor Andrew Bailey suggested to the Times that bigger interest-rate cuts are possible if the UK job market deteriorates more quickly than the central bank expects.

💷This morning on currencies, the pound is currently worth $1.348 and €1.154 .

On Commodities, 🛢️Oil (Brent) is at $71.05 & 💰Gold is at $3365.

📈On the stock markets, the FTSE 100 is currently up 0.2% at 8958 and the Eurostoxx 50 is down 0.8% at 5341.

European export stocks are falling in particular after President Donald Trump dials up trade tensions by announcing a 30% tariff on goods from the European Union. The EU says it will hold off its own tariffs while talks continue, but will prepare countermeasures. The EU will also look to step up engagement with other nations hit by US tariffs in an effort to unite trading partners against the aggressive US tactics.

Amazon’s Prime Day sale helped boost online spending across all US retailers by a larger-than-estimated 30.3% to $24.1 billion, Adobe said.

🏠First-time buyers to benefit from mortgage rule review

The Bank of England’s recent review of mortgage lending rules could enable an additional 16,000 first-time buyers annually to secure loans. The Financial Policy Committee is considering relaxing the cap on lending at 4.5 times a borrower’s income, which was previously set at 15% of home loans to mitigate household debt risks. While the overall cap remains, individual lenders may apply for higher limits. Major building societies including Nationwide and Yorkshire have already sought permission for increased lending.

🏠Homes for sale hits seven-year high

The UK housing market is experiencing a significant surge, according to data from TwentyCi, with nearly 500,000 properties listed for sale between April and June. This marks a seven-year high and represents an increase of 26,000 compared to the same period last year. The rise in listings is partly attributed to landlords exiting the market due to higher interest rates and the impending Renters’ Rights Bill. Despite the increase in listings, confirmed sales have dropped by 8.7% year-on-year, as buyers rushed to complete purchases before the end of temporary stamp duty relief in March. The market remains buoyant, however, with mortgage approvals rising in May and although prices have stabilised, they remain more than 2% up compared to a year ago.

🏦Cash ISA reforms on hold

The Chancellor has put plans to reduce the tax-free allowance for cash ISAs on hold. Officials had been considering reducing the tax-free cut-off, which currently stands at £20,000, but the plan has been shelved following opposition from banks, building societies and consumer campaigners. The changes, which were being considered as a means to encourage people to put money into stocks and shares in a bid to boost the economy, have not been completely ruled out for the future. The Building Societies Association said it welcomed the Treasury stepping back from making any “hasty decisions” on ISAs.

💻London ranked among top AI hubs

London has been named one of the world’s leading hubs for tech talent, coming second to San Francisco in a ranking by Colliers. The report assessed more than 200 global cities on factors such as AI hiring, venture capital flows, university output and tech productivity. The capital scored highly across all categories and Andrew Hallissey, global chief of occupier services at Colliers, said: “Location strategies are shifting. London’s advantage lies in the scale of its ecosystem – talent, innovation and investment all converge here.”

🏦Reeves set to cut banking red tape

Rachel Reeves is set to announce a significant reduction in banking regulations, with plans to scrap parts of the senior managers and certification regime which certifies almost 140,000 financial services professionals. The Chancellor last year said that while the senior managers certification regime had “helped to improve standards and accountability, some elements … have become overly costly and administratively burdensome.” Ms Reeves is expected to make it easier to appoint senior managers by reducing engagement with regulators and removing the need for “pre-approvals” for around four in ten applications. In her upcoming Mansion House speech, the Chancellor will encourage financial firms to relocate to the UK and warn that “for too long red tape has choked off innovation and growth.” A Treasury source said the Chancellor is determined to make the UK the premier destination for business, promising to “turbocharge growth” for future generations.

⚖️New rules set to expose pay gaps

The Government is set to introduce the Equality (Race and Disability) Bill, which will require employers with over 250 staff to disclose disability and ethnicity pay gaps. The Bill aims to establish a regulatory unit to prevent pay discrimination and may compel companies to create action plans for improving equality. The Black Equity Organisation has advocated for whistleblower protections to ensure transparency in pay gap reporting, saying support for those who flag issues is “essential.” The Trades Union Congress has called for mandatory pay gap reporting to be extended to employers with more than 50 staff, to cover lower-paid workers in smaller companies, insisting: “If the legislation is to be effective … it needs to apply to the majority of workplaces.” Equalities Minister Seema Malhotra says the measures set out in the Bill are part of the Government’s “absolute” commitment to DEI.

👴DWP set to review pensions auto-enrolment

The Chancellor, Rachel Reeves, is expected to launch a review of the auto-enrolment pension scheme in a move that could see employer contributions to staff retirement pots increase. The review, led by the Department for Work and Pensions, will assess raising auto-enrolment contributions from the current level of 8% of worker earnings. Employees currently pay in 5% while the employer adds 3%. The review will also look at the state pension. The Office for Budget Responsibility has flagged inadequate pension saving as a risk for public finances, saying: “Recent studies suggest a significant proportion of the population may not be saving enough through private pensions to achieve an ‘adequate’ retirement income.”

💶EU plans tax on big corporations

The European Commission is set to propose a new tax targeting companies with a net turnover exceeding €50m (£43.1m) to bolster the EU’s common budget. This initiative aims to ensure that large companies contribute more, with a “bracket” system in place for higher revenues. Notably, the proposal will apply to all large firms operating within the EU, regardless of their headquarters.

🏞National Trust cuts 550 jobs

The National Trust has announced plans to cut 6% of its current workforce, with around 550 jobs set to go. The heritage and conservation charity cited “sustained cost pressures beyond our control,” with increases in employer National Insurance contributions and the National Living Wage adding more than £10m to its annual wage bill.

💰Thames Water spent £136m to secure emergency funding

Thames Water spent at least £136m on efforts to secure emergency funding over the past year, surpassing the £130m it paid in fines. A leaked document details payments to law firms and consultancies including Deloitte and KPMG. A Thames Water spokesperson said: “Customers will not pay for these fees, and fees relating to the recapitalisation will not lead to an increase in any customer bills.”

🚌 Parts supplier enters administration

More than 80 employees at Greenfold Systems, a supplier of bus parts to Alexander Dennis, have been made redundant after the company went into administration. The firm, which employed 90 staff, faced financial difficulties after Alexander Dennis announced plans to relocate its operations from Scotland to Scarborough, resulting in the closure of two sites and the loss of 400 jobs. Callum Carmichael and Michelle Elliot of FRP Advisory, and Shona Campbell of Henderson Loggie, have been appointed as administrators.

💼 Insolvency experts are takeover target

Begbies Traynor, the UK’s largest provider of insolvency and restructuring advice, has drawn the attention of private equity firms keen to enter into takeover talks, with executive chairman Ric Traynor saying: “A month doesn’t go by where there isn’t somebody suggesting a conversation, it’s either private equity themselves or some market maker in the middle.” Noting that Begbies often works closely with private equity firms when the companies they own get into financial difficulty, Mr Traynor said a conversation over a potential deal “could easily be initiated if we wanted to.”

🚨Latest Insolvencies

Petitions to wind up (Companies) – LIVE VYNL LIMITED
Petitions to wind up (Companies) – SECURA MANAGEMENT LIMITED
Petitions to wind up (Companies) – THE UMBRELLA AGENCY LIMITED
Petitions to wind up (Companies) – THE LETTING MANN LIMITED
Petitions to wind up (Companies) – ARUNA LTD
Petitions to wind up (Companies) – 12 CELLARS LTD
Petitions to wind up (Companies) – KINGSWOOD PALLETS LIMITED
Petitions to wind up (Companies) – CORTISSO ACCOMMODATION SERVICES LTD
Petitions to wind up (Companies) – ENERGY@NES LIMITED
Petitions to wind up (Companies) – NEPTUNE AND NOB LTD.
Petitions to wind up (Companies) – LION QUAYS HOTEL LIMITED
Petitions to wind up (Companies) – CROWN INN WOODSTOCK LTD
Petitions to wind up (Companies) – FIRST SIGNS LIMITED
Petitions to wind up (Companies) – RRB BIRMINGHAM LTD
Petitions to wind up (Companies) – JMS AGGREGATE SUPPLIES LIMITED
Petitions to wind up (Companies) – UNLIMITED EVENTS LIMITED
Petitions to wind up (Companies) – BECKFORDHUSS LTD
Petitions to wind up (Companies) – J.E.THOM BUILD LIMITED
Petitions to wind up (Companies) – YOUR CARE AND SUPPORT LIMITED
Petitions to wind up (Companies) – TOWAN VALLEY RESORT LIMITED
Petitions to wind up (Companies) – WHITEBRICKS PROPERTY SERVICES LTD.
Petitions to wind up (Companies) – IXILY LTD
Petitions to wind up (Companies) – FIRST STOP NORTHWEST LIMITED
Petitions to wind up (Companies) – PGC CONSTRUCT LTD
Petitions to wind up (Companies) – FORRESTER MANAGEMENT SERVICES LIMITED
Petitions to wind up (Companies) – DOMUSEA DEVELOPMENTS LTD
Petitions to wind up (Companies) – DENTALAIR SERVICES (UK) LIMITED
Petitions to wind up (Companies) – FENNTECH IT LTD
Petitions to wind up (Companies) – COMMERCIAL CONCERNS LIMITED
Petitions to wind up (Companies) – M DIN METAL TRADERS LIMITED
Petitions to wind up (Companies) – BACK OFFICE SERVICES 1 LIMITED
Petitions to wind up (Companies) – ENGHOLM N D S NUTRITION LIMITED
Petitions to wind up (Companies) – NETWORK & SECURITY LIMITED
Petitions to wind up (Companies) – JOHN ALADEJARE HEALTHCARE LIMITED
Petitions to wind up (Companies) – B.A.M. SECURITY SERVICES LTD
Petitions to wind up (Companies) – WE HIRE ANY CARS.COM LTD
Appointment of Administrator – AAP METAL FABRICATION SERVICES LTD
Appointment of Administrator – DACS LTD
Appointment of Administrator – CULT INTERNATIONAL LIMITED
Appointment of Liquidators – PERTINAX PHARMA LIMITED
Appointment of Liquidators – ELLIS MARKETING LIMITED
Appointment of Liquidators – KEYS WAREHOUSE NO.1 LIMITED
Appointment of Administrator – RED LED LIMITED
Appointment of Liquidators – MBE INTERIORS LIMITED
Appointment of Liquidators – MFDM LLP
Appointment of Liquidators – BOOKEEPING ADMINISTRATION SERVICES LIMITED
Appointment of Liquidators – GRANGEBOND LIMITED
Appointment of Liquidators – MMH DEVELOPMENTS LIMITED
Appointment of Liquidators – PLE TECHNOLOGIES LTD
Petitions to wind up (Companies) – REDSPOT CARE LIMITED
Petitions to wind up (Companies) – FIVESTARSTRUK LTD
Petitions to wind up (Companies) – HWK3 LIMITED
Petitions to wind up (Companies) – BLUEPRINT LETTINGS AND MANAGEMENT LTD
Petitions to wind up (Companies) – RUN THE BOX LIMITED
Petitions to wind up (Companies) – FUTUREHEALTHLIVE LTD
Appointment of Administrator – MARTURANO HOMES HOUSTON LTD
Petitions to wind up (Companies) – CARBON ZERO ESTATES LIMITED
Appointment of Liquidators – ACTIVE WEALTH MANAGEMENT LIMITED
Appointment of Liquidators – JULIE KIRWAN 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:

  1. 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.
  2. Our monitoring service will alert you to any significant changes in the status of those customers.
  3. ️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.