Business news 14 August 2025
UK Economy grows faster than expected. Chancellor urged to ease business burdens. Bank of England’s rate cut hopes fade. Post office, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
📈UK Economy Grows Faster Than Expected – What It Means for Your Business
The UK economy grew by 0.3% in the second quarter, outperforming forecasts of 0.1% and leading the G7 in growth for the first half of the year. June’s output rose 0.4%, despite earlier slowdowns.
This boost was largely driven by increased government spending and stockpiling, which offset weaker consumer spending and lower business investment. While the stronger economy may delay Bank of England interest rate cuts, it signals resilience in tough conditions.
The figures suggest the economy held up in what was expected to be a difficult period as businesses and consumers were hit by Reeves’ £26 billion payroll tax raid, inflation-busting hikes to household bills and increased taxes on home purchases, as well as US President Donald Trump’s tariffs.
The data also appear to further muddy the BOE’s decision over whether to carry on cutting interest rates from the current 4% after statistics on Tuesday showed the economy has lost fewer jobs than initially thought since Reeves’ tax-raising budget last October. Traders responded by slightly trimming bets on BOE rate cuts, while the pound edged higher.
For small businesses:
- Government spending could mean more public-sector contracts and local funding opportunities.
- Slower rate cuts might keep borrowing costs higher for now.
- Stronger overall growth may help consumer confidence in the coming months.
💰SMEs Still Facing a Financing Gap
A Times headline today underscores how risk-averse banks and red tape continue to stifle SME access to external capital. Traditional lenders have notably retreated from small business markets, leaving behind a £90 billion lending gap. Small businesses, particularly those dependent on trade credit, may face tightened access to funds—making any available financing options even more critical.
Need to boost your cash flow? CPA can help you boost your cash-flow by speeding up late payers.
⚖️Chancellor urged to ease business burdens
Chancellor Rachel Reeves has been urged by 1,500 private business leaders, surveyed by KPMG, to reduce taxes and regulations in her upcoming Autumn Budget. They argue that recent tax increases, including National Insurance hikes, hinder growth. The leaders want a focus on higher wages, lower costs, and support for small businesses. Key priorities include adopting new technology and improving profitability through tax measures. Euan West, head of KPMG private enterprise, noted a cautious optimism among businesses, with 93.2% expressing confidence in future growth despite ongoing economic challenges.
🏦Bank of England’s rate cut hopes fade
Hopes for a Bank of England interest rate cut this autumn have diminished following disappointing employment data. The Office for National Statistics reported that unemployment remained at 4.7%, the highest since 2021, with payroll numbers declining for six consecutive months. Matt Swannell, chief economic advisor to the EY ITEM Club, said: “No change to interest rates at the MPC’s September meeting looks almost certain.” Inflation concerns persist, with wage growth at 5%, complicating the decision for the Monetary Policy Committee.
🏤Post Offices face uncertain future
Post Offices across the UK may face significant cuts as Labour considers removing the requirement to maintain at least 11,500 branches. The Government is exploring the option to adapt to market trends, despite preferring to keep the current structure. Dame Harriett Baldwin, shadow business minister, warned that this could jeopardise vital services for vulnerable populations. The proposal would allow the Post Office to make operational decisions regarding branch numbers while ensuring 99% of the population remains within three miles of a full-service branch.
💼UK Treasury hires ex-John Lewis chair as it bids to boost its business acumen
Sir Charlie Mayfield, the former chair of John Lewis, has joined the board of the UK Treasury as the Chancellor looks to bolster her department’s business expertise.
🌡Ministers push for maximum working temperature
Angela Rayner, the Deputy Prime Minister and four other Cabinet ministers, are advocating for a maximum working temperature. During the 2022 heatwave, Rayner urged the previous government for guidance on safe indoor temperatures and flexible working. Unions like Unite and GMB are pushing for a legal limit of 27°C for manual jobs. Despite the ongoing heatwave in 2025, the Government has no plans to implement a maximum temperature, although the Health and Safety Executive will advise on heat stress assessments. Rayner stated: “We need urgent guidance for safe indoor working temperatures.”
📈Markets
📈Yesterday, the FTSE 100 closed up 0.19% at 9165.23 and the Euro Stoxx 50 closed up 0.98% at 5388.25. Overnight in the US the S&P 500 rose 0.32% to 6466.58 (another record high) and the Composite NASDAQ rose 0.14% to 21713.14.
Global markets were boosted as investors were increasingly confident that the Federal Reserve could restart its monetary policy easing cycle next month. Signs that U.S. tariffs on imports have not fully filtered into headline consumer prices came as a relief for investors this week as they scour for insights on the impact trade uncertainty has had on the economy.
💱This morning on currencies, the pound is currently worth $1.358 and €1.163. Sterling is performing strongly today, driven by better-than-expected UK GDP data and the reduced expectation for a rate cut.
On Commodities, 🛢️Oil (Brent) is at $65.90 & 💰Gold is at $3351. Oil prices remain steady despite the International Energy Agency warning of a record oversupply next year.
📈On the stock markets, the FTSE 100 is currently down 0.05% at 9161 and the Eurostoxx 50 is up 0.14% at 5396.
Bitcoin briefly climbed past $124,500, topping the previous all-time high as investors ventured into risk-taking territory.
Exports and Business Investment Under Pressure
Goods exports to the U.S. dropped by 13.5%, hitting a three-year low due to tariffs. Business investment fell by 4%, reflecting growing caution among firms
🎈Scotland’s deficit balloons to £26bn
Scotland’s Finance Secretary Shona Robison has defended the country’s finances as “sustainable” despite new figures showing a £26.2bn deficit in 2024-25, equal to 11.6% of GDP — more than double the UK’s 5.1% rate. The Government Expenditure and Revenue Scotland report said spending grew faster than revenue, with the gap partly due to falling North Sea income and slower revenue growth compared to the UK. Revenue rose 1.5% to £91.4bn, while spending increased from £111.4bn to £117.6bn.
⚠️IHT raid: UK a ‘very dangerous place’ for a wealthy person
Proposals from the Treasury to limit tax-free gifts from parents to children have raised concerns among tax experts, who warn that such changes could make the UK less appealing for wealthy individuals. Dan Neidle, founder of Tax Policy Associates, said an IHT raid might seem like a good idea in theory, but “there is a big risk that Labour suffers a death by a thousand cuts on the rich who have the ability to leave the UK.” He explains: “You would be saying to non-doms that not only do you have to pay inheritance tax – as announced in Reeves’s last budget – but you can’t even gift your way out of it. It would make the UK a very dangerous place for a wealthy person to be.” Elsewhere, David Sturrock, of the Institute for Fiscal Studies, said that Rachel Reeves was unlikely to be able to raise significant sums from the change without hitting relatively small gifts made by middle earners. The position was echoed by Jonathan Portes, a former Treasury adviser and professor of economics and public policy at King’s College London, who said the changes would “certainly not raise tens of billions of pounds, or anything like it”.
🕵Informants send record 165,000 tip-offs to HMRC
Analysis by Price Bailey reveals a 9% rise in reports to HMRC’s tax fraud tip-off hotline with 164,670 calls made in 2024-25. Despite reports hitting an all-time high, payments have fallen for the first time in four years. HMRC awarded just £852,438 to whistleblowers last year, down 13% since 2023-24. HMRC compensates informants on a discretionary basis depending on the amount of tax recovered and time saved in investigations. Price Bailey’s Andrew Park comments: “While HMRC depends increasingly on taxpayer intelligence to close the £5.5bn tax fraud gap, the current reward system lacks both scale and clarity.” John Hood at Moore Kingston Smith, adds: “HMRC works closely with other tax jurisdictions across the globe, and will be painfully aware of the gulf between the effectiveness of the fraud hotline in the UK and in the US.”
🏢PwC tightens grip on office attendance
PwC UK has intensified its monitoring of employee office attendance through key card usage and WiFi connections. The firm introduced a “traffic-light” system to flag attendance levels, marking those below 60% as “amber” and below 40% as “red.” The policy, effective since April, aims to ensure staff spend at least three days a week in the office or with clients. However, concerns have emerged regarding the transparency of the surveillance, with reports alleging that those who breach the policy can face formal sanctions, with their performance evaluations and bonuses potentially affected.
🛒More than 100 big supermarkets at risk of closure from UK business rates rise
Government plans to raise business rates is putting more than 100 large stores run by the UK’s top supermarket chains at risk of closure, property experts have said.
⚖️FCA dismisses 12 for misconduct
The Financial Conduct Authority (FCA) has dismissed 12 employees due to misconduct allegations, with nearly 40 staff disciplined from 2022 to 2024. Sarah Pritchard, FCA’s deputy chief executive, commented: “Failure to tackle toxic behaviours drives away good people.” The news comes as the FCA aims to clarify non-financial misconduct rules with a consultation set to close in September. Shadow business secretary Andrew Griffith labelled the new rules as “grade A mission creep,” citing concerns over regulatory overreach. The FCA has however rowed back on plans to regulate diversity, equity, and inclusion (DEI) targets, a move welcomed across the City following fears it would have piled “unwarranted costs” onto firms.
🏦BoE holding Britain back in blockchain revolution
Chancellor Rachel Reeves and Bank of England Governor Andrew Bailey are at odds over stablecoin regulation, jeopardising the UK’s ambitions in the £200bn market. Samuel Norman in City AM points out that Reeves hopes to advance blockchain technology, but Bailey’s “prescriptive” rules could hinder progress. UK Finance has called on the Bank to “publicly walk back” its damaging policy positions and end its “bias towards incumbents and legacy systems”. Other experts, including Kunal Jhanji from Boston Consulting Group, stress the need for regulatory clarity and alignment among stakeholders, while Zoe Wyatt, partner and head of Web3 & Disruptive Technology at at Andersen says: “Regulation remains a defining factor in stablecoin growth, and the UK currently lags behind the EU and US in implementation.”
Aviva
Aviva hailed an “outstanding” first half, and it said the integration of Direct Line is underway. Aviva said pretax profit in the first six months of the year surged 30% to £1.27 billion from £978 million 12 months earlier. Gross written premiums were 4.7% higher at £6.29 billion from £6.01 billion. It said operating profit was 22% higher on-year at £1.07 billion.
Elsewhere Admiral reported a 67% jump in half-year pretax profit on Thursday, underpinned by competitive pricing and strong performance in its core UK motor insurance arm.
📿Claire’s UK enters administration
Claire’s UK has entered administration, putting over 2,000 jobs and 300 stores at risk, a week after its US arm filed for Chapter 11 bankruptcy. Interpath Advisory will oversee operations while exploring options, including a potential sale. CEO Chris Cramer said the move aims to protect long-term value, citing competition, shifting consumer trends, debt, and macroeconomic pressures. The retailer has faced years of challenges, including tariffs, online retail growth, and rivals like Shein and Temu. Founded in 1961, Claire’s has 306 shops in the UK and Ireland. Hilco Capital is reportedly interested in acquiring the business.
🚨Latest Insolvencies
Appointment of Administrator – THE SLEEP HAVEN LIMITED
Appointment of Administrator – SPHERE BIO LIMITED
Appointment of Administrator – W. HARRISON & SONS (CARRIERS) LIMITED
Appointment of Liquidators – BROMBOROUGH HOLDING COMPANY LIMITED
Appointment of Liquidators – NEXT DAY SOLAR LIMITED
Appointment of Liquidators – PILGRIM TECHNOLOGY LIMITED
Appointment of Liquidators – CLEMENT DICKENS & SON (HOLDINGS) LIMITED
Appointment of Liquidators – EARL HOPPER LIMITED
Appointment of Liquidators – NEUBLA UK LTD
Appointment of Liquidators – VERNON GATE PROPERTIES LIMITED
Appointment of Liquidators – 1ST CENTRAL LAW LIMITED
Appointment of Liquidators – LOUD AUDIO UK LIMITED
Appointment of Liquidators – STARKE FINANCIAL LIMITED
Appointment of Liquidators – WILLIAMS GOULD HOLDINGS LIMITED
Appointment of Liquidators – WILLIAMS FINANCIAL PLANNING LIMITED
Winding up Order (Companies) – WPP FAIRPAY LIMITED
Petitions to wind up (Companies) – SYNERGY ACCOUNTANTS AND ADVISORS LTD
Petitions to wind up (Companies) – COOKE CONSTRUCTION AND RENOVATION LIMITED
Petitions to wind up (Companies) – LANDMARK BUILDERS LIMITED
Petitions to wind up (Companies) – BEBE INVESTMENTS LIMITED
Petitions to wind up (Companies) – AMRYTA CAPITAL LLP
Petitions to wind up (Companies) – BOONS TRANSPORT (1986) LIMITED
Appointment of Liquidators – BILCARE GCS LIMITED
Appointment of Administrator – MOUNT ST MARY’S
Appointment of Liquidators – PUZZLE PALACE PROPERTIES LIMITED
Appointment of Administrator – MITCHELLS HOLDING LIMITED
Appointment of Liquidators – CMB SOFTWARE SERVICES LIMITED
Appointment of Liquidators – DAVISON YARROW 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.