Business news 19 March 2025
Some of the business news & more that we thought would interest our members.
James Salmon, Operations Director.
Please note: Today, on the 19/3/25 CPA will move 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.
Compulsory liquidations hit ten-year high
The latest figures from the Insolvency Service reveal that February saw the highest number of compulsory liquidations in over a decade, with 393 companies forced to close. This surge comes as businesses brace for rising taxes and employment costs, with David Hudson from FRP noting that both companies and consumers are “cutting their cloth, which is ultimately driving down demand.” Overall, while the total number of company closures fell by 7% year-on-year to 2,035, that figure includes firms that have chosen to shutter, rather than being forced to stop trading. The construction sector was particularly hard hit, accounting for 17% of insolvencies. Kelly Boorman at RSM UK said the industry is “already under-resourced, and the increase to labour costs will squeeze margins.” As the Bank of England maintains high interest rates, Giuseppe Parla at Menzies warns the UK may face further business collapses in the coming months.
Small businesses prepare for April cost hike
Small businesses are preparing for significant bill increases from next month, with National Insurance contributions increasing from 13.8% to 15%, with the threshold dropping from £9,100 to £5,000. Emma Jones, CBE, founder of Enterprise Nation, said: “Small employers are facing the prospect of reduced profits next month as changes to National Insurance, the National Living Wage and Business Rates Relief kick in on 1 April.” Additionally, the National Living Wage will rise by 6.7% to £12.21 per hour for over-21s. While some relief is offered through an extension of business rates relief, many small firms feel overwhelmed by the impending financial burdens.
SMEs hit pause on investments
Small and medium-sized enterprises (SMEs) are postponing investment decisions due to uncertainty surrounding Chancellor Rachel Reeves’ Spring Statement, according to a survey by Bibby Financial Services (BFS). Nearly 50% of the 1,000 firms surveyed are delaying their choices until after the statement, with one fifth expressing concerns over the significant impact of national insurance contribution hikes. Despite these challenges, 87% of SMEs plan to invest this year, and two thirds anticipate increased sales.
Manufacturing at risk from net zero push
Britain’s manufacturing sector is facing significant decline as soaring energy prices drive down investment. According to the EY Item Club, energy costs in the UK are four times higher than in the US and 50% more than in France and Germany. Peter Arnold, UK chief economist at EY, said the high energy costs were the result of running down fossil fuels without a reliable replacement. Northern regions of England will be held back by the industrial decline, EY said, adding: “New investments in renewable energy are yet to, and may never fully, replace the lost activity and employment.”
Fintech leaders meet Chancellor in bid for growth
Britain’s top fintech leaders convened with Chancellor Rachel Reeves at a financial summit on Tuesday. The meeting, attended by executives from Revolut, Stripe, Wise, and Zilch, was part of the Innovate Finance’s Unicorn Council initiative, which seeks to provide policy recommendations to maintain the UK’s fintech leadership. Janine Hirt, Chief Executive of Innovate Finance, said: “The continued success of the UK fintech sector is fundamental to driving growth across the country.” Speaking after the meeting, Reeves said: “We are taking action to make our rulebook more competitive to support growth, the number one mission for our Plan for Change, and have asked the FCA to reform the regulatory structure around capital markets to make it work better for UK firms.”
Lenders push for mortgage overhaul
UK financial services leaders are advocating for significant changes to mortgage lending regulations, urging the Government to lift restrictions on loan-to-income ratios that currently cap borrowing at 4.5 times a buyer’s income. Lenders say they should be able to carry out their own affordability checks on buyers to decide how much people can borrow. The proposals, outlined in UK Finance’s “Plan for Growth,” aim to ease regulatory constraints and support first-time buyers. “The current rules are holding back innovation and investment,” says UK Finance’s chief executive, David Postings. “We need a system that allows financial services to thrive and grow.” Meanwhile, the Financial Conduct Authority (FCA) is to launch a consultation on simplifying mortgage rules after research revealed first-time buyers are increasingly looking outside London to get on the property ladder.
CBI calls for increased R&D spending
The CBI has urged the Government to allocate £30bn for research and development (R&D) by the end of the decade, as part of the Chancellor’s efforts to enhance the UK’s competitiveness with high-innovation economies like the United States. The CBI argues that raising R&D investment would “send a strong signal to attract domestic and foreign investment.” In 2022, UK Government spending on R&D reached £15.5bn, and is expected to have reached £20bn in 2023 when the latest figures are released next month. Louise Hellem, chief economist at the CBI, said: “For [Labour’s] growth mission to succeed, government must inject business with a serious confidence boost.”
ONS updates ‘inflation basket’ to include VR headsets and yoga mats
The Office for National Statistics (ONS) has updated its inflation basket, reflecting changing consumer habits. Notable additions include virtual reality (VR) headsets, yoga mats, and men’s pool sliders, while oven-ready gammon joints and local newspaper adverts have been removed. Stephen Burgess, ONS deputy director for prices, said: “The addition of virtual reality headsets for the first time shows our appetite for emerging technology.” The annual sales of VR headsets are projected to rise from £350m last year to £520m by 2029. This update also highlights a shift towards convenience and online shopping, as consumers increasingly opt for quicker meal options and digital platforms. The latest inflation figures show a rate of 3% as of January, down from a peak of 11.1% in late 2022
Companies will have to report ethnicity pay gap
Ministers have announced that companies with over 250 employees will be required to disclose whether their white workers earn more than their ethnic minority counterparts. This initiative aims to address pay disparities and is part of a Labour manifesto pledge. Unions have praised the move as a significant step towards achieving pay parity. However, businesses express concerns about the additional regulatory burden amid rising costs. The Office for National Statistics reported that in 2022, black workers earned approximately 6% less than white employees. Asian or Asian British employees, meanwhile, earned about 3% more than white employees. Gender pay reporting has been mandatory since 2018, but critics say it is a crude tool that can lead to perverse outcomes. For instance, a reluctance to employ women in lower paid positions or positive discrimination that unfairly penalises men applying for higher-paid jobs.
Couples worry about discussing savings and investments
Research by Columbia Threadneedle reveals that women are nearly three times more likely to seek investment advice from their partners than men, with 20% of women compared to 7% of men. The survey indicates that 30% of couples worry that discussing finances could lead to arguments, a concern that rises to 45% among younger couples aged 18 to 34. Despite these fears, over a third (35%) of couples wish to discuss finances more openly. The survey, conducted by Opinium with 2,000 participants in October 2024, highlights regional differences, with 50% of Londoners fearing money-related disputes, while only 20% of those in Wales share this concern.
Government cuts benefits to save £5bn
The Government hopes to save £5bn by tightening eligibility for the Personal Independence Payment (PIP). Work and Pensions Secretary Liz Kendall said the current number of new claimants is “not sustainable” and that from November 2026, individuals will need to score a minimum of four points in at least one activity to qualify for the daily living element of PIP. This change aims to address the rising costs of long-term sickness and disability benefits, which have surged by £20bn since the pandemic and are projected to reach £70bn over the next five years.
Latest Insolvencies
Petitions to wind up (Companies) – ELCARBEC LIMITED
Petitions to wind up (Companies) – SERVICE 4UU LIMITED
Petitions to wind up (Companies) – C&A SALES LTD
Petitions to wind up (Companies) – RPM COOLING SOLUTIONS LTD
Appointment of Administrator – IN THE STYLE FASHION LIMITED
Appointment of Administrator – S.TWO CONSULT LIMITED
Appointment of Administrator – RECTELLA LIMITED
Appointment of Administrator – ABSOLUTE CLEAN GROUP LTD
Appointment of Administrator – ADVENTURE PARC SNOWDONIA LIMITED
Appointment of Administrator – FUTURE HIGH STREET LIVING (DIGBETH) LIMITED
Appointment of Liquidators – LITTLE KATERINA CONSULTING LIMITED
Appointment of Liquidators – LEEVER`S PAINTERS & DECORATORS LIMITED
Appointment of Liquidators – STRATEGIC HEALTH CONNECTIONS LIMITED
Appointment of Liquidators – PASSIVE FIRE PROTECTION LTD
Appointment of Liquidators – BIODIESEL DEPOT LIMITED
Appointment of Liquidators – SUPERBIA FINANCIAL PLANNING LIMITED
Appointment of Liquidators – R CHANDROTH LIMITED
Appointment of Liquidators – WINTON MATERIALS SCIENCE LIMITED
Appointment of Liquidators – THE PROPERTY SURGERY LIMITED
Appointment of Liquidators – A D BURNISTON CONSULTING LTD
Appointment of Liquidators – CONTROL SOLUTIONS ENGINEERING DESIGN LTD
Appointment of Liquidators – AJLEITCH CONSULTING LIMITED
Appointment of Liquidators – ONE CLICK PRESS LIMITED
Appointment of Liquidators – T.SNAPE & CO.LIMITED
Appointment of Liquidators – MONICA DAVIES BUSINESS SERVICES LIMITED
Appointment of Liquidators – MALCOLM ELLIS COINS LIMITED
Appointment of Liquidators – BROOKLYN DAIRY CONTRACTORS LIMITED
Appointment of Liquidators – DECIMAL POINT LIMITED
Appointment of Liquidators – ATIBA LIFE SCIENCE CONSULTING LIMITED
Appointment of Liquidators – THD LAMBERT LIMITED
Appointment of Liquidators – MADHAVA LTD
Appointment of Liquidators – AVNET GROUP HOLDINGS LIMITED
Appointment of Liquidators – PUNTIS ASSOCIATES LTD
Appointment of Liquidators – ARTED BUSINESS DESIGN CONSULTING LIMITED
Appointment of Liquidators – QUAYSTONE GROUP LTD
Appointment of Liquidators – LULU SERVICES LIMITED
Appointment of Liquidators – M M DEVELOPERS LIMITED
Appointment of Liquidators – LUMIN PENSION SERVICES LIMITED
Appointment of Liquidators – CONOR DOYLE LTD
Petitions to wind up (Companies) – LDC HUB LTD
Petitions to wind up (Companies) – GRILLING HUT LIMITED
Petitions to wind up (Companies) – ELITE CARS (KENT) LTD
Appointment of Liquidators – STEPHEN EASLEY CONSULTING LIMITED
Appointment of Liquidators – JPH MEDICOLEGAL LIMITED
Appointment of Liquidators – HERRINGDEAN LTD
Appointment of Liquidators – QUANTI-07 LIMITED
Appointment of Administrator – LMR HOLDINGS LIMITED
Winding up Order (Companies) – PICTURE BOOK LIMITED
Petitions to wind up (Companies) – EH1 PROPERTIES LTD
Appointment of Liquidators – L & P JACONELLI LTD
Petitions to wind up (Companies) – J & S METALS LTD
Appointment of Liquidators – KELLEY ODONOVAN TRAINING LIMITED
Appointment of Liquidators – NIGEL RICHES LIMITED
Appointment of Liquidators – DAVID MALTHOUSE TRAINING LIMITED
Petitions to wind up (Companies) – BROOK STAR LIMITED
Petitions to wind up (Companies) – CONTOUR EDUCATION SERVICES LIMITED
Appointment of Liquidators – RACE & RESTORATION LTD
Appointment of Liquidators – CARTHY COMMUNICATIONS LIMITED
Appointment of Liquidators – HERITAGE WILLS LIMITED
Appointment of Liquidators – S. PADLEY LIMITED
Appointment of Liquidators – PCL ACTUARIAL LIMITED
Appointment of Liquidators – RYAN EDWARDS COMMUNICATIONS LIMITED
Appointment of Liquidators – TRADITIONAL ROOFING (LONDON) LIMITED
Appointment of Liquidators – THOMPSON SERVICES LTD
Appointment of Liquidators – SAY – DE CONSULTING LTD
Appointment of Liquidators – BLUE BOND LIMITED
Appointment of Liquidators – DERMATOLOGY SERVICES SOLIHULL LTD
Appointment of Liquidators – HB 101 LTD
Appointment of Liquidators – KTL PROPERTY CONSULTANTS LIMITED
Appointment of Liquidators – MOHRIT LIMITED
Appointment of Liquidators – RYAN & RISHAN INFOTECH LTD
Appointment of Liquidators – TECHIE SHACK LTD
Appointment of Liquidators – ORTHOTEC 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!