Business news 15 August 2025
Chancellor expected to increase taxes in autumn Budget. Businesses ditch full-time staff for contractors. Home repossessions jump. Entry level jobs, hospitality, GDP, US exports, housing, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
💼Chancellor expected to increase taxes in autumn Budget
Rachel Reeves is expected to raise taxes in the upcoming autumn Budget due to higher borrowing and weak growth. Forecasters predict the Chancellor may need to increase taxes by £15bn to £25bn to meet financial rules. Ruth Gregory, deputy chief UK economist at Capital Economics, noted that smaller tax adjustments could be made if the figures are lower. However, the National Institute of Economic and Social Research suggests a potential need for over £40bn in tax increases, possibly affecting income tax rates. Stephen Millard at the NIESR said: “She will likely leave the freeze on allowances and tax bands in place.”
🚷 Businesses ditch full-time staff for contractors
Following the increase in employer National Insurance contributions from 13.8% to 15% in April, small businesses are increasingly hiring virtual staff and contractors instead of full-time employees. The Office for National Statistics reported a decline of 169,000 payrolled employees from June 2024 to June 2025. Debbie Porter, managing director of Destination Digital Marketing, stated: “The risk and the cost of investing in a younger or more inexperienced person is now too much.” Concerns grow that further tax increases may occur in the Autumn Statement, potentially impacting struggling businesses further.
🏘️Home repossessions jump 47% in a year
Figures from UK Finance show home repossessions jumped 47% between April and June this year compared to the same period last year. This is also up 10% on figures for the first quarter. Rachel Springall of Moneyfacts Compare, says: “It is worrying to see a growing number of borrowers can no longer keep up with mortgage repayments and are having properties repossessed.” Additionally, landlord repossessions rose by 11% year-on-year.
🎓Employers say degrees not needed for entry-level jobs
Most employers believe university degrees are not essential for entry-level positions, according to a survey by Indeed. The poll revealed that 68% of recruiters prioritise attitude over A-levels. Some 81% of young people, however, believe their qualifications will aid their career success. Despite a challenging job market, 70% of school leavers feel confident about entering the workforce. Separately, data by Adzuna has suggested that entry-level jobs had fallen by a third since the launch of ChatGPT.
🥘 Hospitality jobs plummet after tax hike
Baton Berisha, CEO of Rare Restaurants, warned that over 84,000 jobs have been lost in the UK hospitality sector since the National Insurance Contributions (NICs) increase in April 2025. He urged the Government to restore NICs to previous levels and reduce VAT to 15%, exclaiming: “Your taxes are curtailing growth.” The British Chambers of Commerce echoed his concerns, stating that businesses cannot bear further tax burdens in the upcoming autumn Budget.
📈UK economy grows slightly in Q2
UK economic growth slowed to 0.3% in the three months to June, according to the Office for National Statistics (ONS). This figure, while lower than the previous quarter’s 0.7%, exceeded economists’ expectations of 0.1%. Chancellor Rachel Reeves described the results as “positive,” highlighting a strong start to the year. Growth was primarily driven by the services sector, including computer programming and health services. However, rising costs for households and employers, alongside a cost of living crisis, have created challenges. Reeves noted: “There is more to do to deliver an economy that works for working people.”
🗽UK exports to US hit three-year low
UK exports to the United States fell to a three-year low in June, declining by 15% or £700m. The drop follows President Trump’s tariffs, which began in April. The UK’s overall trade deficit widened to £9.2bn in the second quarter, driven by rising imports. William Bain, head of trade policy at the British Chambers of Commerce, said: “Implementation of the UK’s trade deal with the US in full is now needed to improve prospects.” Meanwhile, Anna Titareva from UBS warned that rising protectionism could hinder economic growth in the coming years.
🏙️London Jobs
London is bearing the brunt of the UK’s jobs slowdown as a combination of tax rises, elevated wage costs and weak consumer spending force the city’s business to cut payrolls faster than in the rest of the country. The capital has shed almost 45,000 payrolls since October when the Labour government announced a £26 billion hike in employers’ national insurance and a new higher minimum wage. It means one in four of all job losses across the country have come in the UK’s most productive region. Combined with the surrounding South East region, the rate rises to nearly four in 10 lost jobs.
According to Kate Nicholls, UKHospitality’s CEO, London is the least competitive city in Europe in terms of taxes and other costs, and has lost around 30,000 hospitality jobs over the last year.t is higher, the business rates are higher, the wage costs are higher, and we are not seeing enough money coming through the front door to be able to cover those costs and for businesses to remain viable,” Nicholls said during a phone interview.
📈Markets
📈Yesterday, the FTSE 100 closed up 0.13% at 9177.24 and the Euro Stoxx 50 closed up 0.86% at 5434.70.
London’s blue-chip index underperformed its European counterparts on Thursday, as investors digested a fresh round of economic data on both sides of the Atlantic. The UK economy expanded more than expected in the second quarter, potentially narrowing the path for further interest rate cuts and offering some relief to the government. The Office for National Statistics reported GDP growth of 0.3% quarter-on-quarter, easing from a 0.7% rise in the first quarter but still ahead of consensus forecasts. In the US, producer price index figures surprised to the upside, with wholesale prices accelerating and stoking concerns that inflationary pressures remain stubborn. Wall Street stocks opened broadly lower on the news.
The Trump administration is reportedly in talks with Intel Corp. to have the US government take a stake in the chipmaker, according to people familiar with the plan. These talks stem from a meeting this week between President Trump and Intel CEO Lip-Bu Tan. Intel shares rose as much as 8.9% to $24.20 on Thursday, hitting their highest level since March 26.
Overnight in the US markets were broadly flat with the S&P 500 rose 0.03% to 6468.54 and the Composite NASDAQ fell 0.01% to 21710.67.
💱This morning on currencies, the pound is currently worth $1.355 and €1.160 with the pound continuing to strengthen on the differing expectations for interest rates in the US and UK.
On Commodities, 🛢️Oil (Brent) is at $66.30 & 💰Gold is at $3341.
📈On the stock markets, the FTSE 100 is currently up 0.04% at 9181.04 and the Eurostoxx 50 is up 0.5% at 5462.
🏠IHT fears chill Britain’s housing market
Concerns over potential changes to inheritance tax (IHT) are causing uncertainty in Britain’s housing market, according to Savills. The estate agent’s finance chief, Simon Shaw, noted that a lack of information from the Government is leading prospective buyers to delay purchases. The Treasury is reportedly considering IHT reforms to address a £20bn to £70bn gap in public finances. Shaw said: “It creates a level of uncertainty in the residential market particularly.” Savills reported an 8% decline in housing sales revenue, attributing this to tax-related fears and Budget uncertainty.
🏘 Rental market faces supply crisis
The Royal Institution of Chartered Surveyors (Rics) reports a significant decline in new rental properties, marking the fastest drop since the first Covid lockdown. The July 2025 Rics Residential Market Survey indicates a “firmly negative trend” in landlord availability, leading to anticipated rental price increases in the coming months. Simon Rubinsohn, chief economist at Rics, noted that the market is facing challenges, with homebuyer inquiries also decreasing. Tom Bill from Knight Frank highlighted that the upcoming renters’ rights bill may push landlords to sell, further constraining supply.
🐎 FCA raises concerns over surge in ‘money mules’
The Financial Conduct Authority (FCA) reported over 225,000 individuals identified as money mules in the past year, marking a 23% increase and illustrating their pivotal role in enabling fraud.
🐄 Dairy farmers face crisis as costs soar
Britain’s dairy industry is in jeopardy as a survey reveals 13% of dairy farmers plan to exit within a year due to rising costs and labour shortages. The Agriculture and Horticulture Development Board estimates that over 900 of the 7,000 dairy producers in the UK could cease operations. Paul Tompkins from the National Farmers Union attributed the crisis to government policies, including increased National Insurance contributions and proposed inheritance tax changes. Bas Padberg of Arla Foods UK warned that these issues will impact food prices and availability, stating: “The effect of this is ultimately going to be seen in the price and availability of products on the supermarket shelves.”
🏭 Chinese Factory output
China’s factory output expanded by 5.7% in July, the smallest year-on-year increase in eight months. Official data also showed that retail sales, a gauge of consumption, grew by 3.7%, the slowest pace since December. The indicators may compel policymakers to boost stimulus.
🚨Latest Insolvencies
Petitions to wind up (Companies) – HENSTAFF CONSTRUCTION LIMITED
Appointment of Administrator – 2TECH LIMITED
Appointment of Administrator – LIKE DIGITAL MEDIA LTD
Appointment of Liquidators – DRARETE LTD
Appointment of Liquidators – RI MDC UK133 LIMITED
Appointment of Liquidators – ICB CONSULTANTS LTD
Appointment of Liquidators – MUSIC & BALLET LTD
Appointment of Liquidators – PIPING TECHNOLOGIES LTD
Appointment of Liquidators – DAVID JOHNSTON BUILDERS LTD
Appointment of Liquidators – FOR MEDIA SPORTS MANAGEMENT UK LTD
Appointment of Liquidators – ASYMTECH LIMITED
Appointment of Liquidators – PENTACOM INVESTMENTS (UK) HOLDCO LIMITED
Appointment of Liquidators – IAN RUSSELL(PAINTS)LIMITED
Petitions to wind up (Companies) – BEASTLY BREWS LIMITED
Petitions to wind up (Companies) – PSYCHE THERAPY CENTRE LIMITED
Appointment of Liquidators – TYAS SERVICES LTD
Appointment of Liquidators – AURORA CONSULTING LIMITED
Winding up Order (Companies) – CEPHAS TEC LTD
Winding up Order (Companies) – FLANAGAN WHOLESALE LTD
Petitions to wind up (Companies) – YK PROPERTY DEVELOPMENT LIMITED
Petitions to wind up (Companies) – DREAMVIEW MANAGEMENT LIMITED
Petitions to wind up (Companies) – LINKS HOMES LIMITED
Petitions to wind up (Companies) – VOLANTE RECRUITMENT SERVICES LIMITED
Petitions to wind up (Companies) – WAYPOINT ENTERPRISES LTD
Petitions to wind up (Companies) – WFORTY4 CONSULTING LTD
Petitions to wind up (Companies) – HUNTSGROVE ROOFING & PROPERTY SERVICES LIMITED
Petitions to wind up (Companies) – ROUND WORLD REAL ESTATE UK LIMITED
Appointment of Liquidators – ASHRIDGE PRESTIGE LTD
Appointment of Administrator – MARTINS CHOCOLATIER LIMITED
Appointment of Liquidators – BDC MIDCO 71 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.