Business news 19 June 2025
Summer hits, inflation, AI, pay transparency, dividend tax, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Summer hits
With UK temperatures forecast to exceed 30°C this week, small businesses must act to protect staff, customers, and operations. Prioritise employee wellbeing by ensuring access to water, shaded or ventilated workspaces, and flexible hours during peak heat. Review air conditioning systems and consider portable fans if needed. Retailers and cafes should stock seasonal products and communicate adjusted opening hours if necessary. Monitor government alerts for heatwaves and update risk assessments accordingly. Remote-working policies may help desk-based teams stay productive. Preparation is key: a few practical steps now can prevent disruption and ensure staff safety during extreme heat events. If you ask this writer, the provision of icecreams/lollies goes along way to maintain staff goodwill.
Inflation eases slightly in May
Office for National Statistics (ONS) data shows that inflation fell in May, hitting 3.4% after climbing to 3.5% in April. Despite the slight decline, inflation remains well above the Bank of England’s 2% target. Experts say May’s data means the Monetary Policy Committee (MPC) will opt to keep interest rates at 4.25%. Ruth Gregory, deputy chief UK economist at Capital Economics, said the inflation data “perhaps provides a tentative sign that firms are passing on more of April’s rise in National Insurance contributions in their selling prices.” The Office for National Statistics said its measure of core inflation, which excludes volatile items such as energy, food and alcohol, rose by 3.5% year-on-year, with this down from 3.8%. Monica George Michail, an associate economist at the National Institute of Economic and Social Research, said inflation is likely to remain above 3% for the rest of the year due to the “inflationary effects from higher government spending.” Yael Selfin, chief economist at KPMG UK, suggested that rate setters are unlikely to shift from their “cautious approach” at June’s MPC meeting.
Microsoft: AI could redefine the workday
Technology is changing the shape of the working day, according to Microsoft’s latest work trend index, with advances in AI and connectivity meaning the traditional 9 to 5 may soon be a thing of the past. The study suggests that working hours are extending into early mornings, late nights, and weekends, creating the “infinite workday.” The analysis found that 40% of workers are checking emails before 6am, while almost a third remain online at 10pm. It was also shown that users of Microsoft 365 receive 117 emails and 153 chat messages each day, with this up 6% on a year ago.
Business groups question pay transparency plans
Corporate leaders have questioned plans to make businesses tell workers what their colleagues earn. With ministers looking at ways to end pay discrimination as part of an overhaul of equality policies, business groups have voiced concern over proposals that would make companies publish remuneration structures and list salary brackets on job adverts. Alex Hall-Chen, principal policy adviser for employment at the Institute of Directors, said some of the proposed measures “would only serve to complicate the recruitment processes,” and make it harder for firms to “fairly reward performance and experience.” Warning that there is “a world of difference between a big business and a small one,” Tina McKenzie, policy chair at the Federation of Small Businesses, said: “This is a clear case where it would be excessive for government to impose detailed regulatory rules on small employers who simply don’t have HR departments.” Charles Cotton, policy and reward adviser at HR industry body the CIPD, warned that employers “might face potential equal pay issues if it emerges an employee is being paid a higher salary than an employee of a different sex who’s doing the same job or a job of equal value.”
Markets
Yesterday, the FTSE 100 closed up 0.11% at 8843.47 and the Euro Stoxx 50 closed down 0.41% at 5266.91. Overnight in the US the S&P 500 fell 0.03% to 5980.87 and the NASDAQ rose 0.11% to 19546.27.
US housing starts fell 9.8% in May far worse than consensus forecasts of a 0.8% drop.
US Initial Jobless Claims fell 5k to 245k the fifth highest reading since August 2023.
US Federal Reserve held interest rates steady with governors voting unanimously on the hold decision. Federal Reserve Chair Jerome Powell warned of meaningful inflation ahead due to tariffs.
US markets are closed today for the Juneteenth public holiday.
This morning on currencies, the pound is currently worth $1.3425 and €1.1699. On Commodities, Oil (Brent) is at $76.99 & Gold is at $3370. On the stock markets, the FTSE 100 is currently down 0.4% at 8807 and the Eurostoxx 50 is down 0.8% at 5225.
Equities continue to decline as investors see a growing likelihood that the US will get directly involved in Israel’s conflict with Iran. Donald Trump has reportedly approved attack plans on Iran but has not given a final sign-off. “Nobody knows what I’m going to do,” the president told journalists.
Bank of England is expected to keep interest rates unchanged at 4.25% today.
Norway’s central bank surprised with its first post-pandemic reduction of borrowing costs and said more cuts are on the cards for this year.
Dividend plan could deter investment
Chancellor Rachel Reeves is considering a significant tax increase of up to £20bn in the Budget, with potential changes to the 39% tax rate on dividends and the abolition of a £500 allowance. Such moves could deter investment, as higher dividend taxes may lead to a “rethink” on remuneration strategies, according to Claire Trott from St James’ Place. Additionally, experts say the proposed tax changes could complicate the UK tax regime and push investors towards tax-free ISAs. Meanwhile, Deputy Prime Minister Angela Rayner has suggested increasing the tax surcharge on lenders, which could raise £700m, but UK Finance chief executive David Postings cautioned that this would make UK banks less competitive.
Labour faces tax and spend dilemma, Onward director warns
Simon Clarke, director of think-tank Onward, highlights the challenges facing the UK economy. He argues that Labour’s approach of increasing taxes and spending could lead to a “low-growth, high-tax future.” Pointing to a significant increase in borrowing, he emphasises the need for a pro-growth agenda that supports entrepreneurship and innovation, rather than merely expanding the state. Mr Clarke says a “doom loop is now well underway,” with tax, borrowing, the cost of borrowing, unemployment and inflation “all going up, while growth is going down.” He adds: “In the face of this, Labour’s instinct is to tax more, spend more and centralise more.”
House prices fall as supply starts to outweigh demand
UK house prices fell 2.7% month-on-month in April, according to the Office for National Statistics (ONS). Year-on-year, prices were up 3.5% in April compared to 7% in March. The ONS said the month-on-month drop came as taxes rose, with the stamp duty holiday for first-time buyers coming to an end on March 31. Richard Donnell, executive director of research at Zoopla, said: “We expect the rate of price growth to slow further over 2025 as home buyers face a large choice of homes for sale which will support a buyers’ market.” Meanwhile, research from Rightmove shows that while buyer demand was up 3% year-on-year in June, the number of homes coming to the market was up 11%. Nick Leeming, chair of property agent Jackson-Stops, said: “Asking prices will need to reflect the current reality where supply is beginning to outweigh demand.”
The City faces a confidence crisis
Tim Focas, head of capital markets at Aspectus Group, argues that the City of London is experiencing a significant crisis of confidence and capital, reminiscent of the challenges faced 50 years ago. The “Big Bang” deregulation of 1986 transformed London into a global financial centre, but now listings are dwindling, with London only accounting for 0.5% of global IPO activity in 2022. Mr Focas criticises policymakers for their cautious approach, adding a call for an overhaul of corporate governance codes “that have gone from protecting investors to smothering boards in box-ticking compliance.” He advocates for radical reforms, including urgent tax incentives for UK listings and a “serious rethink of capital gains treatment on long-term equity investment.” Mr Focas says that without bold reform, London risks losing its global influence.
Tax hikes hit investment, CBI warns
Chancellor Rachel Reeves’ decision to hike taxes on employment has significantly impacted business investment, leading to the lowest investment plans in five years, according to the Confederation of British Industry (CBI). The CBI forecasts UK economic growth at just 1.2% for this year and 1% in 2026. The report indicates that business investment is expected to slow in the third quarter and potentially drop at the start of next year. The CBI report highlights the need for a comprehensive skills strategy and targeted investment to stimulate growth, as the current tax pressures threaten to stifle household consumption and overall economic recovery.
Reform says Treasury should intervene on interest rates
Reform UK has suggested the Treasury should be given a say on interest rates, arguing that ministers should have greater input on the Bank of England’s key decisions. Deputy leader Richard Tice believes “one or two” Treasury officials should sit on the Monetary Policy Committee, ending the Bank’s independence on monetary policy.
National Wealth Fund name a ‘misnomer’
The Treasury Committee has called for clarity over the National Wealth Fund, a new Government body designed as a rebrand of the UK Infrastructure Bank. The committee asked academics whether the name was a “good description of what this new entity is meant to do.” Pranesh Narayanan, research fellow at the Institute for Public Policy Research, said the name was a “slight misnomer” as the body is “closer to a sovereign investment fund or development bank than a sovereign wealth fund.” Neil Lee, professor of economic geography at London School of Economics, and Chaitanya Kumar, head of economic policy at the New Economics Foundation, said they would have opted for a different name.
Latest Insolvencies
Petitions to wind up (Companies) – MILLER, TURNER & CO., (U.K.) LIMITED
Appointment of Administrator – HENLEY DEVELOPMENTS 210 LIMITED
Appointment of Administrator – 79TH LUXURY LIVING FOUR LIMITED
Appointment of Administrator – 79TH COMMERCIAL ONE LTD
Appointment of Liquidators – 911 BOX LTD
Appointment of Liquidators – NORLIFE SERVICES LTD
Appointment of Liquidators – MOJA SOCIAL LTD
Appointment of Liquidators – KAM SOLUTIONS LTD
Appointment of Liquidators – DAEDALUS SERVICES LIMITED
Appointment of Liquidators – GL INVESTMENTS LTD
Appointment of Liquidators – WEBTRAIL SOFTWARE LIMITED
Appointment of Liquidators – RM HUNTER HOLDINGS LIMITED
Appointment of Liquidators – 111 LIFELINE LIMITED
Appointment of Liquidators – THOMAS SIMPSON (LANGDOWNS) LTD
Appointment of Liquidators – DNG DOVE NAISH LLP
Appointment of Liquidators – CDR CAPITAL LTD
Appointment of Liquidators – NORLIFE (QEH) LIMITED
Appointment of Liquidators – FOODTEST GROUP LTD
Appointment of Liquidators – BRENT LIGHTING LIMITED
Appointment of Liquidators – PELLCOMP SOFTWARE 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!