Business news 15 September 2025
Productivity, GDP, tax v cuts, interest rates, bossware, pensions, house prices, investment, manufacturing, market news, insolvencies & other stories that we thought would interest our members.
James Salmon, Operations Director.
⚠️Chancellor faces £20bn productivity crisis
The Office for Budget Responsibility (OBR) may downgrade productivity forecasts, risking a shortfall for Rachel Reeves. Following stagnant economic growth in July, officials are reassessing their outlook. Andrew Goodwin from Oxford Economics warned that aligning forecasts with external consensus could necessitate fiscal tightening of £20bn. James Moberly from Goldman Sachs noted that even a minor adjustment could impact headroom by £8bn. The OBR’s decision is critical, as it could force the Chancellor to raise taxes, further straining the economy. Goodwin stated: “The longer it goes on, the greater the pressure to revise it.”
🚨UK economy stagnates as growth stalls
The UK economy showed no growth in July, with the manufacturing sector contracting by 1.3%, the largest decline in a year. The Office for National Statistics (ONS) reported that while services grew by 0.1%, this was not enough to offset the manufacturing downturn. Liz McKeown, ONS director of economic statistics, said: “Growth in the economy as a whole continued to slow over the last three months.” Lindsay James, investment strategist at Quilter, said the Government’s increased employer national insurance contributions are affecting business confidence, leading to a slowdown in growth across sectors.
✂️Public favours spending cuts over tax hikes
According to a recent poll by Electoral Calculus and Find Out Now, 32% of the public supports balancing the budget primarily through spending cuts, while only 14% favour tax increases. The survey of over 2,000 respondents indicates that 29% would prefer cuts to the £160bn welfare bill. Martin Baxter from Electoral Calculus commented: “The findings show that the public wants the Government to get the deficit under control and balance the budget.” However, voters are hesitant about where to make cuts, especially in essential services.
⚠️Higher taxes will be counterproductive
US economist Arthur Laffer has warned that further tax increases in Britain will be counterproductive, reducing revenue by discouraging work, investment, and capital. During a meeting with Sir Mel Stride, the shadow chancellor, in the US earlier this month, Dr Laffer said the UK is probably beyond the point at which further tax rises become futile because they cost more money than they raise. Commenting on his meeting, Sir Mel said: “The lesson of the Laffer curve is clear and proven: if a tax gets pushed up too high, you don’t end up with more revenue – you get less. There is a tipping point where higher taxes suffocate a nation’s spirit of enterprise – and it’s time to sound the alarm for Britain.” In a piece for the Sunday Telegraph, Sir Mel adds: “The mood music ahead of this autumn’s Budget is bleak. To plug a black hole of its own creation, Labour looks set to double down on what is already the steepest tax squeeze in a generation.”
🏦Interest rate cuts unlikely this year
Economists believe interest rates are set to be held at 4% until 2026. The Bank of England’s Monetary Policy Committee (MPC) is set to vote on whether to cut rates this week as is expected to hold the base rate at 4% after cutting it from 4.25% in August. Thomas Pugh, chief economist at RSM UK, said it is “all but guaranteed” that the MPC will hold interest rates at 4%, adding that it will “stick to its gradual and cautious guidance, as it continues to try to balance rising inflation with a weakening labour market.” Philip Shaw, an economist for Investec, expects rates to be held at 4% until the end of the year, with the next cut in February, while economists at Pantheon Macroeconomics said the late Budget “will likely also encourage the MPC to wait until December at least before considering another cut.”
🕵🏻A third of firms use ‘bossware’ to monitor activity
Research by the Chartered Management Institute (CMI) shows that a third of UK employers use “bossware” to monitor employee activities, including emails and web browsing. The survey indicates a rise in workplace surveillance, with one in seven employers recording screen activity. While some managers believe monitoring prevents insider threats, many express concerns about trust and privacy. The CMI study found that more than half (53%) of managers support monitoring of employees’ online activities on employer-owned devices, while 42% oppose it. Petra Wilton, the CMI’s director of policy and external affairs, said: “If it is being used, it is incredibly important employers are open.” The Information Commissioner’s Office has warned that excessive monitoring can infringe on privacy rights, especially for remote workers.
🏦BoE could slow debt sales to boost Labour
Some City experts think the Bank of England could reduce its quantitative tightening (QT) programme to give the Chancellor a little more space come her Budget. The Bank has been selling the bonds it bought during the financial crisis at the rate of £100bn a year, costing taxpayers £22bn annually, but this could be cut to nearer £70bn, easing pressure on the public purse. The Bank is expected to announce whether it will slow down its bond selling on Thursday.
🧔🏻♂️👩🏻New rules to tackle wage gaps
Large employers in the UK will soon be mandated to publish gender pay gap action plans under the Employment Rights Bill (ERB). The new requirement aims to enhance transparency and accountability in addressing wage disparities. Analysis by Pinsent Masons shows a slight decrease in the average hourly median pay gap to 11.28% for 2024-25. While women’s representation in top salary quartiles has improved, they still dominate lower-paid roles, making up 54.72% of the lowest quartile.
🚛Treasury reconsiders landfill tax hike
The Treasury is reconsidering a proposed increase in landfill tax following significant backlash from industry leaders. The plans, which aimed to eliminate exemptions and reduce rates, were revealed unexpectedly, causing anger among sectors like housebuilding and construction. Currently set at £126.15 per tonne, the tax could see costs for large housebuilders rise dramatically. One industry source noted: “They are still trying to get a grip on the impact and implications of the reforms.” The Government has requested further evidence from businesses by next Friday, with a potential delay in decision-making expected.
⚛️Nuclear
The US and Britain will sign an agreement to make it quicker for companies in both countries to build nuclear power stations when President Donald Trump visits this week, according to the UK government.
Employers brace for pension reforms
Over 90% of employers anticipate that Rachel Reeves will impose restrictions on pension salary sacrifice schemes in the forthcoming autumn Budget, according to a Censuswide survey for BDO. Nearly half of C-suite executives view these restrictions as “quite likely,” while 45% consider them “very likely.” Caroline Harwood, head of employment tax at BDO, said: “It’s clear from our survey findings that employers are bracing themselves for reform.”
📈Markets
📈 On Friday , the FTSE 100 closed at 9283.29 (this morning it is at 9274) and the Euro Stoxx 50 closed at 5390.71 (this morning it as at 5426). Over in the US the S&P 500 closed basically flat at 6584.29 and the Composite NASDAQ rose 0.44% to 22141.10.
The rally in global equities is being supported by expectations of A FED cut to US interest rates, a potential easing of US tariffs due to legal challenges and a rebound in the Chinese market.
In Europe: consumer products and travel & leisure shares outperformed, while healthcare lagged
💱This morning on currencies, the pound is currently worth $1.359 and €1.1575. The dollar has continued to decline on interest rate expectations.
On Commodities, 🛢️Oil (Brent) is at $67.12 with oil still elevated after Ukrainian strikes on Russian oil infrastructure & 💰Gold is at $3641 again elevated due to the US interest rate picture.
Fitch Ratings has downgraded France’s credit rating from “AA-” to “A+”, marking the lowest level on record. The decision reflects concerns over the country’s rising debt, projected to reach 121% of GDP by 2027.
💳Contactless limit change a ‘recipe for disaster’
The Mail’s Jeff Prestridge says the Financial Conduct Authority’s plans to remove the £100 limit on contactless payments is “a recipe for disaster” that will see bank cards targeted by thieves who will now be able to completely drain their victims’ banks accounts. Despite consumer and industry opposition, the FCA argues that the change could support economic growth, a claim Prestridge describes as “utter baloney” and “change for change’s sake”.
🏘️House prices
UK Average House Prices jumped by just over £1,500 month-on-month in September as the autumn selling season got under way, according to Rightmove. Across Britain, the typical new seller asking price is £370,257 in September, marking a monthly rise of 0.4% or £1,517. Despite the September increase in prices, the first since May, the average asking price for a home in Britain is 0.1% or £502 lower than a year ago, Rightmove says.
🏦US financial firms plan £1.25bn UK investments
US financial firms have announced UK investments worth £1.25bn that could create 1,800 jobs. While Citi is planning to invest £1.1bn across its UK operations, S&P Global is set to pump £4m into its Manchester offices. PayPal has confirmed a £150m investment in product innovations and growth, while Bank of America will create up to 1,000 new jobs in Belfast in its first operation in Northern Ireland. Alongside these investments, BlackRock is allocating £7bn to the UK market over the next five years. The Department for Business and Trade says these investment and capital commitments will equate to £20bn in trade between the two countries, with around £8bn set to come to the UK and £12bn to go to the US. Business and Trade Secretary Peter Kyle said: “Strengthening ties with the US boosts our economy, creates jobs, and secures our role in global finance,” while Chancellor Rachel Reeves said that the commitment from the US firms “demonstrates the immense potential of the UK economy.”
🏭Britain must resurrect manufacturing, says Ineos boss
The UK faces a significant decline in its manufacturing sector, which has dropped from 16% of GDP in 1990 to just 8% today. The decline hampers the country’s ability to convert innovative ideas into economic value. Peter Williams, group technology director at Ineos, says in a piece for the Mail: “Without a strong industrial base, we also have no springboard for the industries of the future.” The Government must address high energy costs, streamline permitting processes, and support emerging industries to revitalise manufacturing and ensure economic resilience, Williams adds.
⚡Steelmakers hindered by ‘uncompetitive’ energy costs
A report from trade group UK Steel shows that UK steelmakers are facing significantly higher electricity costs than their European rivals, paying up to 25% more than producers in France and Germany. UK Steel said this will mean an extra £26m in annual costs for UK firms, which it likens to the sector operating with “a hand tied behind its back.” Gareth Stace, director-general at UK Steel, warned that “uncompetitive” power prices pose a threat to jobs and future investment.
🏬Sainsburys & Argos
Sainsbury’s says that it has ended talks to sell Argos to Chinese e-commerce firm JD.com. Talks have collapsed as JD.com’s terms and commitments are “not in the best interests of Sainsbury’s shareholders, colleagues and broader stakeholders”.
🅰️ℹ️OpenAI and Nvidia to invest billions in UK
OpenAI and Nvidia plan to invest billions in UK data centres during US President Donald Trump’s upcoming state visit. Sam Altman, CEO of OpenAI, and Jensen Huang, CEO of Nvidia, are collaborating with London-based Nscale Global Holdings on this initiative. The UK Government is expected to provide energy for the project, while OpenAI will offer AI tools and Nvidia will supply chips. Sir Keir Starmer in January unveiled plans to position the UK as an AI superpower, promoting data centre growth and technology adoption across government.
💊AstraZeneca halts £200m investment in UK
AstraZeneca has paused its £200m investment in Cambridge, leaving its entire £650m UK investment package stalled. The decision follows the cancellation of a £450m investment in Merseyside due to reduced government support. An AstraZeneca spokesperson said: “We constantly reassess the investment needs of our company and can confirm our expansion in Cambridge is paused.” The setback comes amid broader concerns for the UK pharmaceutical sector, with other companies like Merck also scaling back investments. Sir John Bell warned that major pharmaceutical firms may cease investing in the UK altogether.
🚨Britain’s £6tn pension debt
Britain faces a staggering £5.8tn in public sector pension liabilities by 2025-26, according to Neil Record, a former Bank of England economist. This is double the national debt. Public sector retirees will receive £57bn this year, primarily from final salary schemes. Maxwell Marlow of the Adam Smith Institute described these pensions as a “ticking time bomb.” The Treasury disputes these figures, claiming public service pension liabilities are £1.3tn.
🚨Latest Insolvencies
- Petitions to wind up (Companies) – FULL POINT COMMUNICATIONS LIMITED
- Petitions to wind up (Companies) – GAELICGIRL LTD
- Appointment of Administrator – CHALMERS & SON (OPTICIANS) LTD
- Appointment of Liquidators – ZEAG PARKING LIMITED
- Appointment of Liquidators – LEAFLACE LIMITED
- Appointment of Liquidators – ZUKO SOLUTIONS LTD
- Appointment of Liquidators – BEN CORNISH CONSULTING LIMITED
- Appointment of Liquidators – PROQUALIT LTD
- Appointment of Liquidators – G.A.P.E EQUITY LIMITED
- Appointment of Liquidators – BERTRAM XAVER LIMITED
- Appointment of Liquidators – GRAHAM MCNEILL PROPERTIES LIMITED
- Appointment of Liquidators – APEX QUALITY CONSULTING LIMITED
- Appointment of Liquidators – ALB MANAGEMENT CONSULTING LTD
- Appointment of Liquidators – FAIRWAY TOOL HIRE LIMITED
- Appointment of Liquidators – NMK SOFTWARE DELIVERY LTD
- Appointment of Liquidators – WMH 220 LTD
- Appointment of Liquidators – BIG BEARD TECHNOLOGY LTD
- Appointment of Liquidators – ORBYTE TECHNOLOGY LTD
- Appointment of Liquidators – MW WEALTH MANAGEMENT LIMITED
- Appointment of Liquidators – MEERKAT COMPUTER SERVICES LIMITED
- Appointment of Liquidators – LACUNA SECURITY TRUSTEE LIMITED
- Appointment of Liquidators – PENTODE LIMITED
- Petitions to wind up (Companies) – LEGEND REMOVALS LTD
- Petitions to wind up (Companies) – WESTEND FOOD LTD
- Petitions to wind up (Companies) – CODA PRODUCTION SERVICES LTD
- Petitions to wind up (Companies) – GILLENS COACHES LIMITED
- Petitions to wind up (Companies) – WAAR SCOTLAND LTD
- Petitions to wind up (Companies) – S.YOUNG NETWORKS LTD
- Appointment of Liquidators – GOLDCREST COMMUNITIES LIMITED
- Petitions to wind up (Companies) – THE BUTCHERS FOOD GROUP LTD
- Petitions to wind up (Companies) – DESIGN MAVEN LTD
- Appointment of Liquidators – FLAGSHIP PROPERTY SOLUTIONS LIMITED
- Appointment of Liquidators – NAVAN DEVELOPMENTS LIMITED
- Appointment of Liquidators – MUCKI LIMITED
- Petitions to wind up (Companies) – AUTO ASSIST SCOTLAND LTD
- Petitions to wind up (Companies) – CIVCOL LIMITED
- Petitions to wind up (Companies) – IMPERIAL FOOD PACKING LTD
- Petitions to wind up (Companies) – EVANS WILLIE PROPERTIES LIMITED
- Appointment of Administrator – VIDI CONSTRUCTION LTD
- Petitions to wind up (Companies) – CORNERSTONE BUILDING PROJECTS LTD
- Petitions to wind up (Companies) – GAS (UK) LTD
- Appointment of Administrator – AIRROC LIMITED
- Appointment of Liquidators – INFRACAPITAL (NOVOS) LIMITED
- Appointment of Liquidators – AMOCURA INVESTMENTS LIMITED
- Petitions to wind up (Companies) – WML CONTRACTING SERVICES 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. we face high interest rates, a struggling economy and elevated insolvencies. CPA’s services can help your business navigate these difficult waters.
We are unlike other credit management and debt collection companies. We offer a range of services to our members. They are all included as part of a fixed annual subscription, tailored to your needs.
🎁What CPA membership gives you
Under your annual subscription you will have access to our main services:
- Our Creditcare credit reports give clear credit ratings and credit limits. Along with a host of detailed information on your potential customers. Our Creditcare reports empower you to trade with confidence.
- 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 late payments. But it is unlike other debt collection companies. This service directs your customer to pay direct to you. Having to pay a third party can be damaging. Encouraging them to pay you direct is different. It maintains your goodwill with them. Its effective too. Our Overdue account recovery service resolves over 80% of accounts referred to us.
All of the above services and other complimentary services (e.g. address verification), are included in your subscription!
And what of 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.
Summary
CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. We provide credit information so you can monitor and assess your key customers and be warned of any potential risks.
How has 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.
We are unlike other credit management companies. We offer our members a fixed annual subscription regardless of how high the value of their debts maybe!
Many businesses resort to borrowing more money to improve cashflow. CPA suggests that business owners tackle the cashflow problem at its source. Are 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!
Do you have a particular business customer who is late paying and causing you sleepless nights? Why not ask CPA’s collection department to buy it on recourse?
CPA’s collection department will then pursue the debt. We will be liable for any costs incurred. When we have recovered the debt, we will pay you the net principle debt recovered less our fixed percentage.
Our hope
We hope that once you have enjoyed success you will want to try more. You might consider becoming members. Taking out a subscription is the most cost effective way to access our services. Membership includes our Overdue Account Recovery service. But also our Creditcare reports and 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 past 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.