Business news 16 July 2025
Inflation challenge persists. Savers urged to invest to boost the economy. Only those on ‘average incomes’ safe from tax hikes. Retail, deregulation, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Inflation challenge persists
UK inflation jumped higher than economists had expected to 3.6% in the year to June, up from 3.4% in May, according to the Office for National Statistics. It is the steepest rise in inflation, since January 2024. The ONS says the rise was driven by motor fuel and food costs, with food price inflation increasing for the third month in a row.
Chancellor Rachel Reeves says there’s “more to do” to bring inflation down, while shadow chancellor Mel Stride says it’s “deeply worrying for families”
Bank of England policymaker Catherine Mann says inflation pressures remain a challenge and has stressed the importance of using interest rates to bring down price growth. Ms Mann, an external member of the Bank’s Monetary Policy Committee, said: “It’s important for us to continue to use monetary policy in order to get us to that 2% inflation objective because inflation is a tax on everybody.”
Higher inflation is a worry for SME owners as it can squeeze the cash flow of small businesses by driving up the cost of goods, materials, and services. As expenses rise, businesses may struggle to maintain profit margins—especially if they are unable to pass those costs on to customers.
Delays in customer payments become even more damaging in an inflationary environment, as the real value of money received later is worth less. This makes effective credit control and prompt payment more crucial than ever to keep cash flow healthy.
Ask us hwo we can help you speed up your incoming payments. Just 
call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or 
email nsm@cpa.co.uk today.
Savers urged to invest to boost the economy
Under plans designed to boost economic growth, the Treasury will look to encourage savers with cash in low-interest accounts to invest their money in stocks and shares instead. Officials said there would be a “review of risk warnings on investment products to make sure they help people to accurately judge risk levels.” The plan will see an advertising campaign to encourage more people into retail investing, with Barclays, Lloyds, HSBC, NatWest, AJ Bell, Schroders, St James’s Place and Interactive Investor all backing the drive. Michael Summersgill, CEO of AJ Bell, said: “Kickstarting an investing revolution could boost household finances and UK capital markets in the process.” He went on to suggest: “Removing friction between cash and investment accounts would create a more flexible system, lifting the psychological barrier between saving and the stock market.”
Only those on ‘average incomes’ safe from tax hikes
Roads Minister Lilian Greenwood says the Government will not increase personal taxes for those on “average incomes.” This comes after Transport Secretary Heidi Alexander told Sky News that those on “modest” incomes would not be targeted by any increase in taxes. In an interview with the same channel, Ms Greenwood was asked to clarify what was considered a modest income. She said the comment referred to “people who work for a living. People who get a payslip.” She also suggested that “those who’ve got the broadest shoulders should bear the greatest burden,” adding to speculation that the Chancellor may be considering a wealth tax to help boost Treasury coffers. On Labour’s stance on taxation, Ms Greenwood insisted: “Our promise when we came in was that we wouldn’t hit working people with increases in employee National Insurance, in income tax or VAT, and we’ve absolutely stuck to those promises.”
Higher tax ‘not good’ for growth
Richard Hughes, chair of the Office for Budget Responsibility, has warned that increasing taxes could hurt economic growth. Appearing before MPs on the Treasury Select Committee, Mr Hughes voiced concern over the UK’s climbing tax burden, saying that it could hit Government spending. He argued that there were “reasons to worry” about Britain’s high level of debt and cautioned the Chancellor that there was only limited scope to raise taxes without hindering economic growth.
Card spending dips
Data from Barclays reveals a slight decline in consumer card spending, with a 0.1% fall recorded in June. Karen Johnson, head of retail at Barclays, said: “Consumers spent cautiously in June, prioritising value as they navigate economic uncertainty.”
Retail sales ‘heat up’ in June
UK retailers experienced an increase in sales during June, with this driven by warmer weather and significant sporting events like Wimbledon. According to the British Retail Consortium (BRC), total retail sales rose by 3.1% year-on-year, with this up from the 0.2% increase recorded a year ago. Food sales surged by 4.1%, influenced by a food inflation rate of 3.7%. Helen Dickinson, chief executive of the BRC, said: “Retail sales heated up in June, with both food and non-food performing well.”
Markets
Yesterday, the FTSE 100 retreated from all time highs and closed down 0.66% at 8938.32 and the Euro Stoxx 50 closed down 0.31% at 5354.17. Overnight in the US the S&P 500 fell 0.4% to 6243.76 and the NASDAQ rose 0.18% to 20677.80.
The S&P 500 Index dropped 0.4% on Tuesday after mixed earnings results from banks offset a report on consumer prices. Almost all sectors were down. Information technology was the lone gainer as Nvidia and AMD rose on plans to resume sales of AI chips to China. US inflation increased to 2.7% from 2.4% in May, as companies started passing on the tariff related costs to consumers. President Trump announced tariffs on pharmaceuticals are coming to the US “probably” at the end of the month. Tariffs will start low and then be “very high,” Trump added.
This morning on currencies, the pound is currently worth $1.339 and €1.153.
On Commodities, 
Oil (Brent) is at $68.65 & Gold is at $3340.
On the stock markets, the FTSE 100 is currently up 0.12% at 8949 and the Eurostoxx 50 is down 0.42% at 5332.
Firms not ready for Companies House changes
Research from Vistra shows that just 28% of UK company directors feel ready for impending changes at Companies House. Reforms coming into effect through the Economic Crime and Corporate Transparency Act will see a tougher enforcement approach, including the potential for unlimited fines and director disqualification. Among SMEs, none said they were “very prepared” for the changes, while the rate at the biggest firms only came in at 37%. Quizzed on the new ‘failure to prevent fraud’ offence, only 19% of directors said they are currently compliant and just 38% feel confident that their fraud prevention measures would qualify as a statutory defence. While 21% of respondents said they are compliant with a requirement demanding identity verification for directors, persons of significant control, and company filers, Companies House data shows that only 2.86% have actually completed the process.
FCA eases rules to boost capital
The Financial Conduct Authority has announced changes that it says will lower costs for companies looking to boost finances for growth and widen access to investment opportunities for consumers. The City watchdog says firms that are already listed will not need to publish lengthy prospectuses to issue more shares. The FCA will also halve the length of time between a prospectus being issued and an IPO and enable companies to issue corporate bonds to retail investors more easily. Simon Walls, executive director of markets at the FCA, said: “These bold shifts promote innovation, lower costs, and enable a broader investor base for growing businesses.”
Deregulation drive will ‘rewire’ financial services
Chancellor Rachel Reeves has set out a plan to “rewire” the UK’s financial services system, saying that deregulation outlined in her Leeds Reforms will make the UK the number one destination for financial services businesses by 2035. The Chancellor confirmed that the ring-fencing regime, which separates a lenders’ retail and investment activities, will be reformed. The plans will see City Minister Emma Reynolds lead a review into how changes “can strike the right balance between growth and stability, including protecting consumer deposits.” The reforms also include reform of the Financial Services Ombudsman that will see it “returned to its original purpose as a simple, impartial dispute resolution service.” Speaking at the annual Mansion House event in the City of London, Ms Reeves said: “In too many areas, regulation still acts as a boot on the neck of businesses … Choking off the enterprise and innovation that is the lifeblood of growth.” The Chancellor also noted that the Government is consulting with the Financial Conduct Authority.
Bank of England sets out reform of banking rules
The Bank of England has set out a series of reforms designed to ease the regulatory burden on smaller and mid-sized banks, including adjustments to capital requirements and a one-year delay to key parts of the Basel 3.1 reforms. The Bank also announced that the Prudential Regulation Authority (PRA) will issue a discussion paper to outline how to reduce the barriers for mid-sized banks to compete in the mortgage market. The Bank said it plans to deliver a “strong and simple framework” that offers a streamlined regulatory regime for banks and building societies. Sam Woods, chief executive of the PRA, said the changes will “bring in a simpler regime for smaller banks, make it easier for mid-sized banks to scale up in the mortgage market, and allow an extra year for part of the implementation of new investment banking rules.”
HMRC fails to track billionaires’ taxes
HMRC has faced criticism from the Public Accounts Committee (PAC) for its inability to track tax contributions made by billionaires in the UK. A report from the committee highlighted “significant opportunities to collect more revenue,” warning that the lack of clarity could undermine public confidence. Despite improvements in revenue collection from wealthy individuals, the PAC expressed disappointment that HMRC could not effectively utilise available data to identify billionaires. The report said HMRC’s estimate that it failed to collect £300m from offshore accounts last year was too low, given that UK residents held £849bn in tax havens in 2019. HMRC defines wealthy individuals as those with incomes of £200,000 or more, or assets equal to or above £2m. The PAC said because a billionaire has wealth and assets 500 times greater than this level, the potential impact of the tax revenues generated is huge. MP Lloyd Hatton, a member of the PAC, suggests that closing the tax gap would offer an alternative to wealth taxes, saying: “Rather than the Treasury trying to drum up new taxes, if we just got this right and closed the tax gaps there would be more money to spend on public services.”
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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!