Business news 18 August 2025
Energy costs, tax reforms, productivity, consumer confidence, worker anxiety, manufacturing, plastics, pubs, house prices, employee surveillance, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
💡Energy costs threaten UK growth
Tees Valley Mayor Ben Houchen has warned that the UK’s soaring energy costs pose a significant threat to economic growth and regeneration efforts in former industrial areas. The International Energy Association reported that the UK has the highest industrial electricity prices among its members, with costs at 26p per kWh compared to just 6.5p in the US. Houchen said: “If we are not competitive on energy pricing, companies can spend their money elsewhere.” He also expressed concerns over increased National Insurance contributions leading to job losses. Shadow Chancellor Sir Mel Stride echoed these worries, highlighting the broader implications for industry and economic stability.
💼Tax reforms sought in push to boost UK productivity
Rachel Reeves has tasked the Treasury with identifying tax reforms to improve forecasts from the Office for Budget Responsibility (OBR). Some experts are concerned that a productivity downgrade could create a fiscal gap exceeding £20bn in the upcoming October Budget. Richard Hughes, chair of the OBR, warned that even a slight reduction in productivity growth could eliminate the Chancellor’s £9.9bn headroom. One ally of Reeves said: “The Chancellor has issued an edict to identify tax reforms,” whilst also focusing on deregulation and legislative changes.
😔UK workers’ misery fuels productivity crisis
UK workers report higher anxiety and lower job satisfaction compared to peers in countries like the US and India, according to a global survey by WorkL. The survey, which included 70,000 staff, revealed that the UK scored below the global average for workplace wellbeing. Lord Price, founder of WorkL, commented: “Happier employees are more productive than their unhappy counterparts.” The UK’s productivity has stagnated, with a 0.5% decline from 2019 to 2024, impacting family finances and company profits.
💰Businesses urge Chancellor to halt tax hikes
Businesses have warned Chancellor Rachel Reeves against further tax increases in the upcoming Budget. Following GDP growth of just 0.3% from April to June, down from 0.7%, the British Chambers of Commerce (BCC) cautioned that the figures mask significant pain for businesses. BCC research manager Stuart Morrison said: “There must be no more business taxes in the Budget.” CBI lead economist Ben Jones highlighted the risk of stagnation due to policy uncertainty, while the Institute of Directors (IoD) noted that private sector growth is hindered by both global and domestic factors.
📉Consumer confidence in UK economy plummets
Consumer confidence in the UK economy has significantly declined, according to Which?’s Consumer Insight Tracker. The report indicates a 31-point drop over the past year, with current confidence averaging minus 40. Only 16% of people believe the economy will improve, while 56% expect it to worsen. Pensioners are particularly pessimistic, with their confidence plummeting to minus 63.
🏙️London’s financial sector sees hiring surge
The financial services sector in London is experiencing a resurgence, with a 10% increase in vacancies in the first half of 2025. Morgan McKinley reports that banks and finance firms are actively hiring for tech-driven roles, particularly in fintech, AI, and cybersecurity. The firm forecasts an 11.2% rise in vacancies for the entire year, totalling over 52,000 positions. David Neal, managing director of Morgan McKinley, noted the sector’s evolution due to tech adoption and regulatory changes, stating: “The financial services sector is evolving fast.” However, overall UK vacancies have declined by 5.8%.
🅰️ℹ️UK manufacturers lag in tech race
British manufacturers are falling behind in robotics and AI, risking a £150bn economic boost. Make UK, a trade body, calls for a “one-stop-shop” for SMEs to access funding and training. The UK ranks fifth in global innovation and has only 112 industrial robots per 10,000 workers, half the EU average. Seamus Nevin, chief economist at Make UK, stated: “Smaller manufacturers are being held back by fragmented support and complex funding systems.” The Government aims to train 7.5m workers in AI skills by 2030 but needs to act faster to support smaller firms, Make UK warned.
⚖️Businesses demand review of tourist tax
Shops, pubs, and restaurants are urging the Government to reconsider the tourist tax in the upcoming autumn Budget. Despite significant lobbying, the Treasury remains firm against reinstating the tax-free shopping scheme, which was abolished in 2021. Derrick Hardman, chairman of the Association of International Retail, stated: “It is mystifying why the Treasury isn’t keen to look at this.” A report from AIR suggests that reinstating tax-free shopping could add £3.7bn to the economy and create over 73,000 jobs. The Government maintains it has no plans for a new scheme.
💰Wealth tax conundrum for Labour
The Chancellor is under pressure to address a £40bn deficit in public finances, with the National Institute of Economic and Social Research (NIESR) attributing the gap to increased borrowing and a sluggish growth outlook. Options for raising revenue include freezing income tax thresholds, increasing National Insurance contributions, and taxing pensions. But a wealth tax has gained wide support within the Labour party and the Observer looks at whether it would work in the UK. Research from 2020 suggested a 2% levy on those with £10m or more in assets would raise nearly £17bn a year, but there are concerns over high administrative costs and the difficulties in preventing avoidance. Andy Summers, director of CenTax, reckons Capital Gains Tax reforms would work better, along with closing loopholes that allow for some businesses gains to go untaxed, claiming this would good for investment and growth. The paper suggests Treasury officials favour “properly taxing the sources and uses of wealth” over a wealth tax.
🛫Young people are desperate to flee Labour’s Britain
Daniel Hannan laments the grim prospects faced by young people in today’s economy in the Sunday Telegraph, pointing to reports about five Oxford graduates that are struggling to find work after a year of job applications. He says youth unemployment has reached over 14%, exacerbated by rising minimum wage laws and increased employer taxes. Angela Rayner’s package of employment laws will only make matters worse, Hannan contends. He goes on to cite a survey by the British Council which found 72% of Britons under 30 are thinking of working abroad, asking “who can blame them?” Hannan concludes: “We are pulling off the extraordinary double of simultaneous emigration and immigration crises, exporting our entrepreneurs and replacing them with people who go on to benefits. And, God help us, we have another four years of it to come.”
😵Gen Z sick days soar for mental health
New research by Chrysalis reveals that 40% of Gen Z employees (aged 18–34) took more than one day off for poor mental health in the past year, compared to 23% across all ages. Over half (52%) reported that their mental health negatively impacted productivity, and 36% considered quitting due to insufficient support. Joe Shalam, Policy Director at the Centre for Social Justice, said: “We’ve come on leaps and bounds on mental health but the danger now is that good intentions are turning into terrible outcomes for young people.” The Deloitte Mental Health at Work report estimates that mental health-related absences cost UK employers £56bn annually.
💼Reeves plans new sin taxes
Rachel Reeves, the Chancellor, may introduce new “sin taxes” targeting gambling and junk food to raise £20bn in revenue. According to Pantheon Macroeconomics, the move would aim to restore her £9.9bn fiscal buffer, eroded by welfare U-turns and lower tax receipts. The proposed taxes could include higher levies on tobacco, alcohol, and sugary products. Christopher Snowdon from the Institute of Economic Affairs stated: “The sugar tax has been such a dramatic failure that it should be repealed, not expanded.” The Government is also considering ending sugar tax exemptions on milk-based drinks.
📈Markets
📈 On Friday, the FTSE 100 closed down 0.42% at 9138.90 and the Euro Stoxx 50 closed up 0.26% at 5448.61. Over in the US the S&P 500 fell 0.29% to 6449.80 and the Composite NASDAQ fell 0.4% to 21622.98.
Despite Friday’s fall, US stocks were up on the week. Health-care stocks were the best performers of the week. UnitedHealth Group was the sector’s biggest gainer, helped by Warren Buffett’s Berkshire Hathaway and David Tepper’s Appaloosa Management betting on a turnaround in the firm.
President Trump is considering using funds in the Chips Act for the acquisition of a stake in Intel according to US media. Intel shares continued to add to gains.
Ireland’s Trade Surplus slumped in June, driven by far lower exports to the US, data published by the Central Statistics Office showed Friday. The country’s trade surplus dove 56% to €5.43 billion in June from €12.27 billion in May. Exports fell 26% to €17.19 billion in June from €23.32 billion in May.
💱This morning on currencies, the pound is currently worth $1.355 and €1.1595 .
On Commodities, 🛢️Oil (Brent) is at $65.87 & 💰Gold is at $3349.
📈On the stock markets, the FTSE 100 is currently up 0.04% at 9142.4 and the Eurostoxx 50 is down 0.44% at 5424.9.
🗽US investors pile $15bn into UK equities
Research by Schroders reveals that since the beginning of 2025 American investors have ploughed $15bn into UK shares. “We are currently seeing increased interest in UK companies from our US and international investors, with many noting the relative value available across a range of sectors,” said Sue Noffke, head of UK equities at the investment manager. Shares in London are still deemed to be relatively cheap whilst the regulatory landscape and strong rule of law make the environment positive for investors.
🍕 Italy catches Britain
The UK economy has lost its edge over Italy and slipped further behind France over the past decade, according to per head gross domestic product figures that reveal a stark underperformance fueled by a population surge, high inflation and tepid growth.
♻️ No plastics deal
International talks to control plastic pollution failed to produce an agreement. Representatives from 184 countries discussed several draft treaties at the UN-backed meeting, but disagreements over curbs on production and controls on toxic chemicals created could not be overcome.
🍺Pubs face crisis as closures rise
The UK pub industry is facing a crisis, with eight pubs closing each week due to rising tax and labour costs. In the first half of the year, 209 pubs were either demolished or repurposed, reducing the total number to 38,780. Emma McClarkin, chief executive of the British Beer and Pub Association, stated: “It’s absolutely heartbreaking… there is a direct link between pubs closing for good and the huge jump in costs they have just endured.” The sector is calling for urgent tax reforms in the upcoming autumn budget to prevent further closures.
🏠House prices
UK House Sellers are lowering asking prices to tempt buyers, resulting in the most active July for agreed sales since the post-lockdown market in 2020, according to property listings site Rightmove. The average new seller asking price dropped by 1.3%, or £4,969, in August to £368,740. The monthly fall is in line with the 10-year average for August, returning to seasonal trends after larger-than-usual declines in June and July. House prices are down almost £11,000 from 3 months ago.
🔍 Is employee surveillance crossing the line?
PwC’s recent launch of a “traffic light system” for tracking employee attendance has reignited discussions about workplace surveillance. The system categorises staff as “amber” or “red” based on their office attendance, potentially leading to sanctions. HSBC is also enhancing its surveillance with more cameras and biometric access due to theft incidents. Professor Phoebe Moore from the University of Essex noted a rise in such technologies, stating: “The rise during Covid was just to make sure people were working. Now it’s to find out where they’re working.” The Information Commissioner’s Office is increasing enforcement against unlawful surveillance practices, having last year ordered Serco Leisure, a chain of gyms, to stop using facial recognition technology and fingerprint scanning after it found the biometric data of more than 2,000 employees had been unlawfully processed to check on their attendance.
🏙️Canary Wharf
JP Morgan is planning a new tower at Canary Wharf for its European HQ at its riverside south plot that it bought in 2008. A new tower would be reportedly cheaper than completely refitting its existing building at 25 Bank Street.
💰FTSE 100 CEO pay hits record
Annual pay for bosses of FTSE 100 companies hit a record high for the third consecutive year. The median pay for chief executive officers at the 100 biggest companies traded on the London Stock Exchange reached £4.6 million, according to research from think tank High Pay Centre. The median CEO pay is now 122 times what a full time UK worker is paid.
⚖️Savings providers will need to record NI numbers
From April 2027, savings providers must collect National Insurance numbers from all customers to assist HMRC in taxing savings income. An HMRC spokesperson said the reform aims to enhance data matching and reduce errors and fraud. However, Stefanie Tremain from Blick Rothenberg described the rules as “intrusive” and pointed to potential issues for those without NI numbers. Rachel Springall from Moneyfacts warned the change could complicate account management, increase costs for providers and make the UK less attractive for investors.
⚖️HMRC brings in ‘mandatory registration’ rule
The Association of Taxation Technicians (ATT) has raised concerns about new legislation requiring tax advisors to register with HMRC by 1 April 2026. The change aims to ensure that all tax advisors meet minimum standards, enhancing HMRC’s oversight. Currently, registration varies, creating gaps in compliance. The ATT warns that individual taxpayers may be affected if their advisors cannot meet the new requirements. HMRC stated: “Where a tax advisor fails to meet HMRC’s minimum standards, their clients have the choice of engaging the services of other registered tax advisors.” A £36m investment will support the transition.
🔍Fraudsters face court over £75m scheme
Five individuals face charges related to a £75m investment scheme involving storage units. The Serious Fraud Office (SFO) claims over 1,900 investors were misled by Store First into transferring their pension savings into the scheme. The defendants are charged with conspiracy to defraud, with two also facing perjury and money laundering charges. The SFO alleges that false guarantees were made regarding returns from renting out the units. The case follows an eight-year investigation into the fraudulent activities.
🏭Chancellor’s silence on Grangemouth closure raises eyebrows
Chancellor Rachel Reeves met Ineos owner Sir Jim Ratcliffe shortly before the Grangemouth refinery’s closure but did not discuss its future. The meeting, revealed through a Freedom of Information request, has drawn criticism from the SNP and GMB, who labelled it a “damning” oversight. The refinery ceased operations on April 29, with Petroineos citing daily losses of £385,000. SNP spokesperson Graham Leadbitter stated: “This is a damning revelation,” accusing the UK Government of a lack of action compared to support for other industries. The Treasury claimed the meeting focused on different issues and noted ongoing engagement regarding Grangemouth’s future.
🏭Liberty Steel on the Brink
Sanjeev Gupta is scrambling to save Liberty Steel’s UK specialities arm (SSUK), facing a winding-up petition over unpaid debts. He’s proposing a pre‑pack administration to clear debts and facilitate a buy-back. Creditors—including HMRC and UBS—would have to agree to substantial write-offs. With nearly 1,500 jobs at risk, the steelmaker’s fate could have ripple effects across local supply chains.
🚨Latest Insolvencies
Winding up Order (Companies) – CUSTOMS HOUSE PROJECTS LIMITED
Petitions to wind up (Companies) – LOCHFYNE LANGOUSTINES LTD
Petitions to wind up (Companies) – KALIDUG FOODS LIMITED
Petitions to wind up (Companies) – CURTIS BAR GROUP LIMITED
Petitions to wind up (Companies) – SOUTHSHORE MARINE & DIESEL LTD
Petitions to wind up (Companies) – PUB CORPORATION LIMITED – THE
Petitions to wind up (Companies) – VIZIBILITY DIGITAL LTD
Petitions to wind up (Companies) – LGW CONTRACTORS LTD
Petitions to wind up (Companies) – GRIFFITHS GROUNDWORKS CIVILS LTD
Petitions to wind up (Companies) – EASTCROFT (GUILDFORD) MANAGEMENT LIMITED
Petitions to wind up (Companies) – A. BUCKLER DEMOLITION LIMITED
Petitions to wind up (Companies) – AVONDALE ENVIRONMENTAL LIMITED
Appointment of Administrator – CLAIRE’S EUROPEAN DISTRIBUTION LIMITED
Appointment of Administrator – CLAIRE’S EUROPEAN SERVICES LIMITED
Appointment of Administrator – CLAIRE’S ACCESSORIES UK LTD
Appointment of Liquidators – TWO SIX FOUR LIMITED
Appointment of Administrator – DRINKS OF MANCHESTER LIMITED
Petitions to wind up (Companies) – BRADFORD DIY & BUILDERS MERCHANT LIMITED
Petitions to wind up (Companies) – ORANGE VALLEY RESORT LIMITED
Petitions to wind up (Companies) – PARKWAY BREWING COMPANY LTD
Petitions to wind up (Companies) – BLACKMAN & BLACKMAN CONSULTANCY LTD
Appointment of Administrator – HGL REALISATIONS 1 LIMITED
Appointment of Administrator – ARTURA CONSULTANCY LTD
Appointment of Liquidators – FAHEY CIVILS LIMITED
Appointment of Liquidators – THE AESTHETICS DOCTOR BY DOCTOR AHMED LTD
Appointment of Liquidators – TOP LEVEL SOLUTIONS LIMITED
Appointment of Liquidators – HAILSHAM INNOVATIONS LTD
Appointment of Liquidators – EASTLAND CONSULTING LIMITED
Appointment of Liquidators – MJPS PHARMA CONSULTING LTD
Appointment of Liquidators – PLATO LOGIC LIMITED
Appointment of Liquidators – AMJAK SOLUTIONS LTD
Appointment of Liquidators – BELGRAVIA LUXURY HOLIDAY APARTMENTS LIMITED
Appointment of Liquidators – C2P2 LTD
Appointment of Liquidators – PETER TORRY CONSULTANCY LIMITED
Appointment of Liquidators – RESOLUTION OPTICS 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.