Business news 18 June 2025
Inflation at 3.4%. US-UK deal & GDP. CBI cuts UK growth forecast. Business poll points to ‘renewed momentum’ 1m workers to quit. HS2, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Inflation at 3.4%
UK inflation stood at 3.4% in May 2025 down 0.1% on April 2025 with rises in food and furniture costs offset by lower air fares and petrol prices. Although estimates had predicted a fall to 3.3%.
US-UK deal & GDP
With car exports to the US escaping the 27.5% tariff (they will still face the 10% rate) and aerospace getting a reprieve but a deal on steal failing to materialize (so stuck to the sector levy of 25%) it is estimated that the tariffs will go from having a 0.4% affect on UK GDP to 0.3%. So a positive affect but still an overall negative.
CBI cuts UK growth forecast
The Confederation of British Industry (CBI) has revised its economic growth forecasts for the UK, predicting an increase of 1.2% for 2025 and 1% for 2026, down from previous estimates of 1.6% and 1.5%, respectively. The CBI said factors such as US tariffs and increased payroll taxes, which are impacting hiring and investment plans, are set to squeeze growth. The forecasts also consider the potential effects of rising oil prices due to geopolitical tensions. Inflation is expected to remain above the Bank of England’s 2% target this year, with the rate influenced by higher household energy costs. The CBI anticipates that household spending will drive growth in 2026, aided by cooling inflation and lower borrowing costs. CBI chief economist Louise Hellem said: “The unpredictable global outlook combined with rising employment costs… means it’s more important than ever that Government pulls all the levers it can to set the UK on a path to sustainable growth.” She also noted that an increase in National Insurance contributions alongside the higher National Living Wage “have had a material impact on business decisions.”
Business poll points to ‘renewed momentum’
Businesses say there is “tentative hope” that the Government can deliver higher growth, according to a survey from Lloyds. While the analysis saw just four out of 14 sectors see an increase in output in May, input cost inflation improved slightly. It was also shown that businesses raised their own prices at the slowest rate in five months. Nikesh Sawjani, senior UK economist at Lloyds, said: “While most sectors still face weak demand and rising costs are squeezing margins for businesses, the broader uptick in activity could suggest some early signs of renewed momentum.”
1m sick and burned out workers set to quit by 2026
Over 1m workers in the UK are expected to resign by 2026 due to burnout and health issues, according to a report by the Work Foundation. The analysis highlights that 6% of the workforce plans to leave their jobs by June 2026, with younger workers aged 16 to 24 being particularly affected. The report calls for a redesign of jobs, advocating for flexible working arrangements and improved health benefits to address the declining mental health of employees. Ben Harrison, director of the foundation, warned that without additional support, “we could see a new generation scarred by unemployment and economic inactivity.” A Government spokesman said: “We are determined to create a welfare system that supports people into work and out of poverty – backed by £1bn to help sick or disabled people find good, secure jobs.”
Markets
Yesterday, the FTSE 100 closed down 0.46% at 8834.13 and the Euro Stoxx 50 closed 0.92% at 5290.57. Overnight in the US the S&P 500 fell 0.84% to 5982.72 and the NASDAQ fell 0.91% to 19521.09.
There was shifting rhetoric on the Israel/ Iran conflict which suggested the goal has shifted to Iranian regime change and not just the disabling of their nuclear capabilities. Equities declined and oil jumped. Speculation is rising that the US could join Israel’s attack on Iran. Trump has called for Iran to unconditionally surrender and has moved an aircraft carrier group to the middle east. Trump even brought up a potential assassination of Ayatollah Ali Khamenei.
President Trump said that the Federal Reserve needed to cut interest rates in order to reduce the cost of servicing US federal debt.
This morning on currencies, the pound is currently worth $1.346 and €1.171. On Commodities, Oil (Brent) is at $75.66 & Gold is at $3377. On the stock markets, the FTSE 100 is currently up 0.2% at 8852 and the Eurostoxx 50 is flat at 5289.
Tik Tok
Trump has given Tik Tok a third 90 day extension to find a US buyer or face a ban. The legislation had originally set a limit at 19th January and the second extension was set to expire this Thursday.
Chancellor considers non-dom IHT rethink
Rachel Reeves is reportedly considering a U-turn on the decision to charge inheritance tax on the global assets of non-doms. This comes amid concern over an exodus of wealthy individuals. The Chancellor, who confirmed that she would scrap the non-dom tax status in last October’s Budget, is said to be considering tweaking a rule that makes the worldwide assets of all UK residents subject to IHT at 40%, even if they are placed in trusts. The non-dom regime, which allowed wealthy foreigners to shelter their worldwide assets from British taxes, was replaced by a system that requires those who have lived in the UK for longer than four years to pay income and capital gains taxes on their global earnings. Under the new system, their worldwide assets eventually become subject to a 40% IHT. Analysis of Companies House records points to an increase in business leaders moving out of the UK, with more than 4,400 directors having left the country in the past year. Departures in April were 75% higher than in the same month last year, with the finance, insurance and property sectors seeing the highest rate of exits. According to recent research, four in ten non-doms are actively considering leaving the UK for somewhere with a more favourable tax regime. Leslie Macleod-Miller, chief executive of Foreign Investors for Britain, said IHT “is certainly the red line,” noting that Research by Oxford Economics shows that inheritance tax was “overwhelmingly” the reason that people “would be forced to leave.”
HS2 delayed again
HS2 the UK’s new high speed railway connecting London to Birmingham will be delayed beyond its 2033 opening date due to cost overruns. The construction budget has increased from £33bn in 2012 when planning was approved to over £100bn today.
Oxford Street
London Mayor Sir Sadiq Khan is to move ahead with plans to pedestrianise Oxford Street one of the world’s busiest streets in terms of footfall. The Mayor will require permission from Deputy PM Angela Rayner to achieve this goal.
Poundland set to close 68 stores
Discount retailer Poundland has said it will be closing 68 stores and two warehouses as part of a turnaround plan, a move that puts more than 1,000 jobs at risk. Poundland, which currently has 792 stores in the UK and Ireland, is also seeking rent reductions from landlords. The retail chain is now seeking court approval for its restructuring. Barry Williams, Poundland’s managing director, said that it was “regrettable” the plan included closures, but said it was necessary if the retailer is to achieve a goal of “securing the future of thousands of jobs and hundreds of stores.” The chain was recently purchased by investment firm Gordon Brothers, who bought it from Pepco for a “nominal” sum.
PAC voices council insolvency concerns
The Public Accounts Committee (PAC) has called on the Government to urgently address a £5bn deficit in high needs spending which threatens to push a number of councils in England towards insolvency. Sir Geoffrey Clifton-Brown, chair of the committee, has expressed concern over the lack of a concrete plan to tackle this impending crisis, warning that while the Government is concerned about local authority finances, “the lack of urgent action… suggests it is comfortable with the current state of affairs.” The statutory override allowing councils to exclude high needs deficits from their balance sheets will expire in March 2026, intensifying the urgency for a sustainable financial solution. Louise Gittins, chair of the Local Government Association, has warned that over half of councils could face insolvency next year without Government intervention.
Latest Insolvencies
Appointment of Administrator – CAMBRIAN ASSOCIATES LIMITED
Appointment of Administrator – MEDDINGS THERMALEC LIMITED
Appointment of Administrator – PLANTMADE LIMITED
Appointment of Administrator – TOM DAVIES BESPOKE EYEWEAR LIMITED
Appointment of Administrator – GERMAN SPECIALISTS LTD.
Appointment of Liquidators – CAMERON-ROSE LIMITED
Appointment of Liquidators – ZMC ELECON LIMITED
Appointment of Liquidators – M J C MECHANICAL LIMITED
Appointment of Liquidators – THE FREELANCE ACTUARY LIMITED
Appointment of Liquidators – TRANSOFT SOLUTIONS (UK) HOLDINGS LTD
Appointment of Liquidators – SW EXEC LTD
Appointment of Liquidators – ROMANCING THE STONE PRODUCTIONS LTD
Appointment of Liquidators – CHROM TECH LTD.
Appointment of Liquidators – EWART CONSULT LIMITED
Petitions to wind up (Companies) – TOPLINE COMMERCIALS LTD
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!