Business news 15 May 2025
Late payments choke UK SMEs’ growth. GDP, prices, fraud, taxes, foreign investment, 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.
Late payments choke UK SMEs’ growth
Small and medium-sized enterprises (SMEs) in the UK are facing a significant challenge, with £112bn owed in late payments, according to new research by the Centre for Economics and Business Research (CEBR). The report highlights that the average overdue invoice for these firms is £42,000, which is “choking cash flow[s]” and hindering investment.
Business secretary Jonathan Reynolds remarked: “This isn’t just an inconvenience, it’s holding back 5.5m SMEs which are the backbone of the UK economy.”
CEBR’s head of economic insight, Christopher Breen, noted that while payment times are slightly improving, they are not sufficient to counter the increasing value of overdue invoices. Industry leaders are urging the government to implement digital strategies to reduce late payments by up to 20%.
We at the Credit Protection Association have argued long and hard that the only way to tackle late payments is to turn the practice of rogue business customers, purposely paying their suppliers late, from being the cheapest way to boost to their cash flow, into the most expensive. Increase the compensation, ease the collection of interest and compensation on late payments, and remove the excuses and barriers. Quickly financial directors will opt to other more traditional ways of boosting their cashflow and start paying invoices on time. At the moment, too many see the paying of suppliers late as a free way to increase their own cash flow.
Is your business hindered by 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
GDP surprises
The UK Economy grew 0.7% in the first quarter of 2025, according to the latest ONS figures. This is 0.1% higher than the consensus of estimates which predicted the country’s gross domestic product to expand by 0.6% over the period. The ONS said first-quarter growth “was driven by an increase of 0.7% in the services sector, production also grew, by 1.1%, while the construction sector showed no growth.”
Businesses warned on price hikes
Catherine Mann, a rate-setter at the Bank of England, has emphasised the need for businesses to control price increases before any further interest rate cuts can be considered. She expressed concern over firms potentially raising prices to restore profit margins, stating: “I need to see the loss of pricing power.” Mann, who voted to maintain interest rates at 4.5%, highlighted the impact of rising goods price inflation on household expectations. Despite potential lower import prices due to trade diversions, she noted: “Goods price inflation is actually going up, not down.” The Bank’s chief economist, Huw Pill, echoed concerns about persistent wage increases affecting inflation. Goldman Sachs has adjusted its forecast, predicting UK interest rates will drop to 3% by February, contrary to earlier expectations of a lower rate.
Financial distress hits Devon hard
The latest Red Flag Alert report reveals that over 8,500 businesses in Devon are facing financial difficulties, marking a significant increase over the past year. The South West region has seen a rise in corporate distress, with 41,164 businesses in significant financial trouble, a 4.9% increase from the previous year. While Plymouth has experienced a 2.4% rise in struggling firms, Exeter has seen a 3.7% decrease, with 733 companies in distress. Michael Hall, director at Begbies Traynor, noted: “There is some progress in these figures… However, with tariffs, taxes and various other challenges weighing down on businesses… there will remain caution from business leaders across the region.” The report highlights the ongoing challenges faced by sectors such as construction, retail, and property services.
Fraud unit shut down by Government
The Government has decided to disband the National Investigation Service (Natis) following a review that highlighted its ineffective use of public funds. Established in 2020 to investigate fraud related to the £47bn Covid “bounce back” loan scheme, Natis has only secured 14 convictions despite receiving £38.5m in taxpayer money. The review concluded that “public money was not being spent effectively,” leading to the transfer of cases to the Insolvency Service. John Kent, leader of Thurrock Council, stated: “In the last 18 months, Natis has worked hard to improve their governance and deliver results for the taxpayer.” The findings will be presented to parliament today.
New appointment to boost UK economy
Jim O’Neil, a senior executive from Bank of America, has been appointed as the new Second Permanent Secretary to the Treasury, effective July. O’Neil, who has extensive experience in corporate and investment banking, will focus on attracting private investment and fostering economic growth. The Chancellor Rachel Reeves expressed confidence in O’Neil’s ability, stating: “His extensive knowledge of the private sector will be vital in helping us deliver our number one mission to grow the economy.” The appointment comes amid efforts to stimulate growth, including a recent pledge from British pension funds to invest up to £50bn into UK businesses and infrastructure.
Chancellor will have to raise taxes, warns former adviser
Nick Williams, a former senior Downing Street economic adviser, has warned that Sir Keir Starmer and Rachel Reeves will need to raise taxes due to “not credible” public spending plans. With the next budget being a crucial opportunity for change before the election, Williams writes in the Times that Reeves may face pressure to implement deeper spending cuts or tax increases to address a fiscal black hole. He points out that Labour MPs are becoming increasingly restless, calling for a more substantial investment strategy. Williams suggests combining the spending review and budget into one event to reduce uncertainty and allow for a more effective fiscal approach. He also emphasises the need for Labour to reconsider its manifesto commitments regarding tax increases, particularly in light of growing demands for investment and re-industrialisation.
UK foreign investment projects decline 13%
Research from EY reveals that the UK hosted 853 foreign direct investment (FDI) projects last year, marking a 13% decline from the previous year. Despite this drop, the UK remains one of Europe’s top investment destinations, following France, which secured 1,025 projects, and Germany with 608. The overall number of FDI projects in Europe fell to 5,383, a nine-year low. Anna Anthony, EY UK and Ireland regional managing partner, commented: “While it’s encouraging to see that the UK remains one of Europe’s top investment destinations, it wasn’t immune to the decline in FDI volume.” Factors contributing to this decline include weak economic growth in Europe, high energy prices, and political instability in France.
Markets
Yesterday, Global shares were up on easing trade tensions but in Europe the FTSE 100 closed down 0.21% at 8585.01 and the Euro Stoxx 50 closed down 0.24% at 5403.44 as investors paused their rally to catch their breath. Overnight in the US the S&P 500 rose 0.1% to 5892.58 and the NASDAQ rose 0.72% to 19146.81.
This morning on currencies, the pound is currently worth $1.3295 and €1.1865. On Commodities, Oil (Brent) is at $63.8 & Gold is at $3178. On the stock markets, the FTSE 100 is currently up 0.07% at 8592 and the Eurostoxx 50 is down 0.41% at 5381.
Apple
Trump told Tim Cook to stop building out its Indian manufacturing capacity. Trump wants Apple to make phones for the US market in the US and switching manufacture from China to India was not enough. Ignoring the fact that the higher costs of US production would mean a US made IPhone would probably cost over $3500.
M&S seeks £100m from insurers
Marks and Spencer (M&S) is poised to claim up to £100m from its cyber insurers following a significant data breach that compromised some customer information. The retailer’s cyber policy, primarily with Allianz, is expected to cover initial losses of at least £10m. M&S revealed that the stolen data may include contact details and order history, but assured customers that sensitive payment information remains secure. The attack has severely impacted M&S’s online sales, with estimated revenue losses exceeding £60m, and has contributed to a 16% drop in its share price, equating to a £1.3bn loss in market capitalisation. A senior market participant noted that a substantial payout could serve as a “proof of concept” for cyber insurance, potentially encouraging more businesses to seek coverage.
CMA urged to strengthen powers against tech firms
The Competition and Markets Authority (CMA) is under scrutiny following a report from the Institute for Public Policy Research (IPPR) that calls for enhanced powers to regulate US tech companies like Apple and Google. The report argues that the CMA must be tougher to prevent these firms from “stifling UK businesses” through their app store dominance. The Government has recently shifted the CMA’s focus towards prioritising growth, which has raised concerns about potential weakening of regulations on major tech players. Tommaso Valletti, professor of economics at Imperial College Business School, who co-authored the report, highlights in the Times that Apple and Google’s dominance in the mobile app market could extract up to £1.4bn from UK developers this year, potentially rising to £3.3bn annually. Valletti warns that monopolistic practices hinder innovation and economic growth, stating: “Enterprise thrives when barriers to entry are low and innovation is rewarded.”
Mayor pushes for higher council tax
The Mayor of London is advocating for increased council tax on vacant properties, stating that the current 100% premium is “not enough.” Sadiq Khan is lobbying the central government to grant councils the authority to impose significantly higher charges on homeowners who leave their properties empty. Khan highlighted the issue of luxury flats in areas like Nine Elms, which remain unoccupied as owners anticipate rising equity. He remarked: “If you can afford a flat and leave it empty, you can pay double council tax.” Meanwhile, Elliot Keck from the Taxpayers Alliance criticised Khan’s approach, arguing that it adds to the burden on Londoners already facing high rents due to ineffective housing policies.
Latest Insolvencies
Appointment of Administrator – KOKOON TECHNOLOGY LTD
Appointment of Administrator – PATERSON ASSOCIATES (NE) LIMITED
Appointment of Liquidators – BC UK MORTGAGE NO.1 LIMITED
Appointment of Liquidators – CM SHELFCO (4) LIMITED
Appointment of Liquidators – FIRST MODE IPP LIMITED
Appointment of Liquidators – HUMBERSIDE YOUTH ASSOCIATION LIMITED
Petitions to wind up (Companies) – AMAZON DYERS LIMITED
Appointment of Liquidators – ATEDA THERAPEUTICS LIMITED
Winding up Order (Companies) – TRENDY INVESTMENTS LIMITED
Winding up Order (Companies) – WEST SIDE RETAIL LTD
Petitions to wind up (Companies) – BILL’S SUPERMARKET LTD
Petitions to wind up (Companies) – FORMATION CONSTRUCTION LTD
Petitions to wind up (Companies) – ABYAAN TRADING UK LIMITED
Petitions to wind up (Companies) – BARLOWS SERVICES SOLUTIONS LLP
Petitions to wind up (Companies) – EXP LOGISTICS LTD
Petitions to wind up (Companies) – YOUR LOCAL HADFIELD LTD
Petitions to wind up (Companies) – FREDERICK J FRENCH LIMITED
Petitions to wind up (Companies) – SHARP FROST COOLING AND HEATING LIMITED
Petitions to wind up (Companies) – SE1 ASSETS LIMITED
Petitions to wind up (Companies) – MAKER MOTORS LIMITED
Appointment of Administrator – MAVEN LEISURE LIMITED
Appointment of Administrator – MAVEN PREMIUM BARS AND RESTAURANTS LIMITED
Appointment of Administrator – MAVEN PREMIUM SPORTS BARS LIMITED
Appointment of Administrator – HOLVIL LIMITED
Appointment of Liquidators – FUCHS LUBRITECH (UK) LIMITED
Appointment of Liquidators – FUCHS LUBRITECH INTERNATIONAL LIMITED
Appointment of Administrator – 375 PROPERTIES LIMITED
Appointment of Liquidators – PRIME EYECARE XL 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!
Late Payments Choke UK SMEs’ Growth – Time to Turn the Tables