Business news 16 May 2025
One in ten have no cash savings. Growth exceeds expectations in Q1. WFH, graduate scheme jobs fall, 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.
One in ten have no cash savings
According to the Financial Conduct Authority (FCA), one in ten Brits lack any cash savings, raising concerns about their ability to manage emergency expenses. The FCA’s executive director of consumers and competition, Sarah Pritchard, said that “finances are stretched” for many, with a fifth of the population having less than £1,000 in savings. The report highlights that one in four individuals have missed payments or struggle with financial commitments. However, one in five Britons hold savings of £25,000 or more, and around one in 10 have savings exceeding £50,000.
Growth exceeds expectations in Q1
Office for National Statistics (ONS) data shows that the economy grew in the first three months of the year, with GDP increasing by 0.7%. The increase marks a significant improvement on the 0.1% growth recorded in the closing quarter of 2024 and exceeds the 0.6% growth expected by economists polled by Reuters. The Q1 growth was driven by increased output in the production sector, where manufacturing increased by 1.1%, while the services industry saw growth of 0.7%. The ONS data also shows that GDP per capita rose 0.5% in Q1. Chancellor Rachel Reeves said the ONS shows that the economy “is beginning to turn a corner.” However, the Confederation of British Industry said that the strength of GDP over Q1 is “likely to prove a one-off,” with lead economist Ben Jones warning that businesses “remain cautious over hiring and investment plans” due to the “steep” rise in employment costs set out in October’s Budget.
Business bosses call for rate cut
Business leaders say further interest rate cuts by the Bank of England would drive an increase in spending and boost the economy. Ben Jones at the Confederation of British Industry has suggested that lower interest rates “should encourage consumers to save less and spend more,” while Anna Leach of the Institute of Directors noted that consumer spending “should continue to be supported by real earnings growth and further falls in interest rates.”
WFH has failed to level up economy
The post-pandemic shift to remote and hybrid work among highly skilled professionals has failed to level up Britain’s economy, according to academic research funded by the Ministry of Housing, Communities and Local Government and the Economic and Social Research Council. While hybrid working has surged, it is mostly available to older, high-skilled professionals based in major cities. While 52% of all UK workers never work from home, among highly skilled workers the rate is 29%. Dr David McCollum, one of the report’s co-authors, said there has not been a mass relocation of highly skilled workers to cheaper places, with people “still opting to live in places that offer the best wages and the best opportunities for their profession.”
Graduate scheme jobs fall following tax raid
The number of graduate schemes in Britain fell by a third last year, with figures from recruitment platform Adzuna showing that there were 794 entry-level programmes advertised in the 12 months to April. This was down from 1,224 a year earlier. The decline comes amid a hike in costs after the Chancellor increased employer National Insurance contributions. Kate Shoesmith, deputy chief executive of the Recruitment and Employment Confederation, said: “Slow economic growth and rising employment costs are making businesses hesitant to hire in some sectors.” Will Holt, of the ICAEW, said a “sluggish economy and increasing employer costs” were driving a decline in vacancies.
Nuclear AI needs
Matt Garman, chief executive of Amazon Web Services (AWS) has said the he UK needs more nuclear energy to power the data centres needed for artificial intelligence (AI). Amazon plans to spend £8 billion on new data centres in the UK over the next four years. A single data centre is a warehouse an use the same amount of energy as a small town. Matt Garman told the BBC nuclear is a “great solution” to data centres’ energy needs as “an excellent source of zero carbon, 24/7 power”.
CBI calls for EU reset.
The CBI is calling for a major reset of relations with the European Union, urging both sides to “build bridges” and move beyond Brexit divisions. With a EU-UK summit taking place on 19 May in London, it calls for “practical steps” to ease travel, cut red tape and take joint action on energy, climate and defence.
Markets
Yesterday, the FTSE 100 closed up 0.57% at 8633.75 and the Euro Stoxx 50 closed up 0.16% at 5412.08. Overnight in the US the S&P 500 rose 0.41% to 5916.93 but the NASDAQ fell 0.18% to 19112.32.
Stocks had a mixed day as exuberance over the US-China trade truce moderated. The US dollar fell against most currencies.
European defense stocks climbed strongly after Germany said it was backing US President Donald Trump’s call to increase the defense spending target of NATO members to 5% of their individual gross domestic product.
Retail giant Walmart said it would raise prices because of Mr Trump’s tariffs. The American supermarket said that reduced tariff levels against China are still “too high”.
This morning on currencies, the pound is currently worth $1.3305 and €1.1875. On Commodities, Oil (Brent) is at $64.55 & Gold is at $3208. On the stock markets, the FTSE 100 is currently up 0.38% at 8666 and the Eurostoxx 50 is up 0.48% at 5438.
Sage
Sage reported ‘strong results’ for its first half year, although it noted the ‘more volatile and uncertain’ environment going forward. The Newcastle-upon-Tyne-based accounting software manufacturer said pretax profit increased to £236 million in the six months ended March 31, from £203 million the previous year.
Wealthy may be avoiding more tax
The National Audit Office (NAO) has raised concerns that wealthy individuals in Britain may be evading more tax than previously estimated, following a significant drop in penalties issued by HMRC. The report highlights that while HMRC’s compliance yield from wealthy taxpayers increased from £2.2bn in 2019/20 to £5.2bn in 2023/24, this rise was more than £1bn greater than the “wealthy tax gap” estimated by HMRC. The NAO noted that the number of penalties for wealthy taxpayers fell by over 75% from 2018/19 to 2023/24, indicating a potential increase in non-compliance. HMRC aims to close the tax gap and generate an additional £7.5bn for public services by 2029/30. The Government has faced calls to impose higher taxes on the wealthy as it prepares for the upcoming spending review.
Employee tax break added to trading platform
The Government has introduced legislation for a market designed to allow trading for private companies. Pisces – the Private Intermittent Securities and Capital Exchange System – will allow private firms to trade shares at intervals similar to public markets and will offer investors an opportunity to sell off their stakes in unlisted companies. The legislation will ensure employees with share options are able to exercise them on Pisces and retain tax advantages. Chancellor Rachel Reeves announced that Pisces transactions would be exempt from stamp duty taxes on share trading in October’s Budget.
Latest Insolvencies
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Appointment of Administrator – EQUIANO LIMITED
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Appointment of Liquidators – DCW ER CONSULTANTS LIMITED
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Appointment of Liquidators – TALBOURNE LIMITED
Appointment of Liquidators – HERALD PROPERTIES LIMITED
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Appointment of Liquidators – MBS FINANCIAL SERVICES LTD
Appointment of Liquidators – TIDAL LAGOON (SWANSEA BAY) PLC
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Appointment of Liquidators – SPENCER JAMES MANAGEMENT & CONSULTING LTD
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Petitions to wind up (Companies) – PODS GROUP LTD
Petitions to wind up (Companies) – JS PROJECTS (SCOTLAND) LTD
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Petitions to wind up (Companies) – GLORIOUS CHILDREN CENTRE LTD
Petitions to wind up (Companies) – KIRWIN CONSTRUCTION & GROUNDWORKS LTD
Winding up Order (Companies) – ARTWORK HOLDINGS LTD
Petitions to wind up (Companies) – SD HOLDCO LTD
Petitions to wind up (Companies) – NEWSPAN PROPERTY LIMITED
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Appointment of Administrator – KING INDUSTRIES 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!
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