Business news 19 August 2025
Reeves plans overhaul of property taxes. Global growth slows amid tariff strain. CMA faces backlash over bank bundling plans. Labour plans to raise pension age. Markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
🏠 Reeves plans overhaul of property taxes
Rachel Reeves is considering reforms to property taxation as part of preparations for her second Budget, with Treasury officials examining options ranging from new council tax bands on higher-value homes to more radical annual levies. The review comes amid concerns that the current system, particularly stamp duty, is dampening economic growth by discouraging mobility in the housing market. Both the IMF and the Institute for Fiscal Studies have urged the Government to scrap stamp duty, describing it as one of the most damaging taxes in the UK. There is speculation that the Chancellor is considering a recurring property tax on homes valued above a certain amount that could replace stamp and council tax. However, government sources have denied reports they are considering a new “national tax” on property sales above £500,000.
🗽Global growth slows amid tariff strain
Despite early resilience to US tariff hikes, global economies are now showing signs of strain. Countries like Ireland and the UK saw significant slowdowns in Q2, following inventory boosts in Q1. “The full impact of recent tariff measures is still unfolding,” said Ngozi Okonjo-Iweala, WTO Director General. Trade volumes dropped in April and May after surging in Q1, and though the WTO raised its 2025 forecast to 0.9%, it warned of prolonged weakness in US import demand. The Bank of Thailand echoed these concerns, predicting broader slowdowns from ongoing US trade policy effects.
🏦CMA faces backlash over bank bundling plans
The Competition and Markets Authority (CMA) is reconsidering its plan to lift a ban on large banks bundling small business loans with current accounts. The Federation of Small Businesses expressed concern over a potential “likely reduction in choice” while Richard Davies, CEO of Allica Bank, warned that removing the ban could perpetuate “poor service and value” for SMEs. Tina McKenzie at the Federation of Small Businesses said the current rule “has allowed small businesses to shop around for the best borrowing and banking products separately.”
👴👵Labour plans to raise pension age
Labour is considering raising the state pension age to 70, linking future increases to life expectancy. Suzy Morrissey, commissioned by Work and Pensions Secretary Liz Kendall, will review automatic adjustments used in countries like Denmark. Experts warn that such changes could disrupt retirement planning. Currently, the pension age is set to rise to 67 next year and to 68 between 2044 and 2046. Morrissey noted that spending on the state pension has increased significantly, with recommendations expected in several years.
💰Pensions face new death duty tax
Pensions will now incur inheritance tax (IHT) under new rules set to take effect in 2027. Analysis indicates that a typical homeowner in England with a £290,395 property and a £415,000 pension could face an IHT bill of £82,158. The reforms will increase the number of estates subject to IHT from 4% to nearly 10%. Jon Greer of Quilter stated: “Charging inheritance tax on a pension someone could not access is optically terrible for the Government.” The Treasury claims the changes will generate £1.5bn annually by 2029-30.
⚖️Chainsaw politics: Cutting through red tape
Andrew Griffith, the shadow secretary of state for business, has pledged to repeal Labour’s 300-page Employment Rights Bill. In a video, he uses a chainsaw to symbolically cut through the legislation, which he claims will harm job creation. Griffith commented: “The next Conservative government will repeal all of the job-destroying measures in the bill.” Currently under parliamentary scrutiny, the bill has faced opposition from major business groups due to its provisions that enhance employees’ rights to sue for unfair dismissal. Deputy Prime Minister Angela Rayner argues it will significantly improve workers’ rights.
🎓Employers no longer care about a degree
Artificial intelligence (AI) is transforming hiring practices, diminishing the importance of traditional qualifications. Employers now prioritise skills over degrees, with a 14% increase in UK job postings not requiring a degree from 2021 to 2024. Erik Hurst, an economist at Chicago Booth School of Business, said: “The advantage now lies with graduates whose skills complement AI.” While university remains valuable, especially for high-skilled sectors, the shift allows young people more options, such as short courses or entrepreneurship. The focus is now on real-life experience and soft skills that AI cannot replicate.
🏗️Government projects worth £200bn at risk
Official auditors have warned that nearly £200bn worth of major government projects are at risk of failure. This amount, which has nearly doubled in a year, now represents 20% of the Government’s total liabilities for capital expenditure. Key projects, including the Northern Powerhouse Rail and a nuclear waste disposal facility, have been downgraded to “red” status due to concerns over budget and delivery timelines.
🏙️London business confidence soars despite inflation
Private business owners in London are experiencing unprecedented optimism about growth, according to the latest KPMG private enterprise barometer survey. Confidence has surged to the highest level in the UK, rising from 88% at the start of the year. Anna Purchas, senior partner at KPMG UK, stated: “Leaders in London are entering the business end of 2025 with the highest level of growth confidence we’ve seen across the UK this year.” However, nearly 50% of owners still cite inflation as their primary concern, alongside rising interest rates and employment costs.
📈Markets
📈Yesterday, markets were flat ahead of talks between European leaders, President Trump, and President Zelensky. The FTSE 100 closed up 0.21% at 9157.74 and the Euro Stoxx 50 closed down 0.26% at 5434.64. Overnight in the US the S&P 500 marginally fell 0.01% to 6449.15 and the Composite NASDAQ rose 0.03% to 21629.77.
💱This morning on currencies, the pound is currently worth $1.3516 and €1.1578 .
On Commodities, 🛢️Oil (Brent) is at $65.86 & 💰Gold is at $3337.
📈On the stock markets, the FTSE 100 is currently up 0.17% at 9173 and the Eurostoxx 50 is up 0.5% at 5462.
Geopolitical developments are the primary market driver today. Trump held talks with Zelensky and European leaders at the White House, followed by a call with Putin, describing the discussions as ‘very good’. This has created significant ripple effects across multiple asset classes. Ukraine-exposed stocks surged in Warsaw and London, with Ferrexpo gaining up to 9.4%. Oil prices declined and defense stocks sold off.
Money markets are betting the Bank of England will keep interest rates on hold at 4% for the rest of this year as signs of faster inflation and a more resilient economy reduce the case for more easing. On Monday, traders decreased wagers on another quarter-point rate cut this year, with swaps implying a less than 50% chance of such a move. A reduction was fully-priced earlier this month.
Intel is in the news as Softbank has agreed to take a 2$ stake for $2 billion. The US government is discussing taking a 10% stake.
Shein is considering moving its base back to China in the hope of securing Beijing’s approval for a Hong Kong IPO.
Apple will no longer be forced to provide a backdoor for American users’ data to the UK government, US Director of National Intelligence Tulsi Gabbard said.
Apple is expanding iPhone production in India, reducing its reliance on China, including manufacturing all iPhone 17 models ahead of their debut next month.
🏭BlackRock backs Gupta’s steel bid
BlackRock has issued a financing support letter to Sanjeev Gupta, owner of Liberty Steel’s Speciality Steels UK (SSUK), which employs nearly 1,500 people in South Yorkshire. The support could amount to £75m, allowing Gupta to maintain control amid financial difficulties. Gupta is preparing for a connected pre-pack administration to alleviate tax liabilities. A hearing on a winding-up petition is scheduled for Wednesday, with officials planning for SSUK’s potential collapse. A Liberty Steel spokesperson stated: “Discussions are ongoing to finalise options for SSUK.”
💲UK accounting rules hold Britain back amidst global crypto drive
The UK is lagging behind the US in cryptocurrency regulations, particularly regarding Bitcoin treasury companies (BTCs). Rachel Reeves aims to enhance economic growth by easing regulations, but current UK accounting rules treat Bitcoin as an intangible asset, obscuring its true value. This punitive approach discourages UK firms from holding digital assets, while US regulations allow for fair value accounting, enhancing transparency. Gautam Pillai, head of fintech research at Peel Hunt, argues that updating UK standards could attract investment and support innovation. He said: “If the Chancellor is serious about loosening the heavy tread of the boot, she should start here.”
📉Fintech funding hits five-year low
Global fintech funding fell to $44bn in the first half of 2025, marking the lowest level in five years, according to KPMG’s bi-annual pulse of fintech report. The UK saw a 5% decline, with investment dropping to $7.2bn. Tim Johnson, KPMG’s global lead for financial services deals advisory, noted: “The first half of 2025 has underscored a recalibration in fintech M&A activity.” Despite the downturn, digital assets and AI investments showed promise, with digital assets labelled the “brightest star” in fintech, attracting $8.2bn.
🏦Treasury review of FOS could favour banks
The Financial Ombudsman Service (FOS) is facing significant challenges as the Government plans major reforms. Following the dismissal of chief executive Abby Thomas due to a “mutual collapse in confidence,” the FOS has seen leadership instability. Baroness Zahida Manzoor also stepped down amid controversy. The Treasury’s review proposes closer ties with the Financial Conduct Authority (FCA), which may shift the balance away from consumers and towards financial institutions. Charlotte Hill, partner at Charles Russell Speechlys, said the reforms would result in “tighter coordination between the FOS and FCA, legislative changes to redress mechanisms, and a sharper focus on pro-growth regulation.”
💼Local government audit reforms failed – report
The Audit Reform Lab at the University of Sheffield has released a critical report revealing that audit costs for local councils in England have surged by 238% since the Audit Commission was abolished in 2015. The report highlights that the anticipated annual savings of £100m have not materialised, with many councils facing financial distress. “Ten years on, however, it now seems clear that these reform ambitions have failed,” the authors stated. The report also noted that only 1% of audits were completed on time in 2022-23, exacerbating the crisis in local government finances. Dr Daniel Tischer, author and researcher at Audit Reform Lab, said: “Audit firms have hiked hourly costs for cash-strapped local councils in England to eye-watering levels, while also failing to sign off accounts. The market is broken, regulation is feeble, and the price hikes create a moral hazard where auditors have little incentive to deliver work on time and to budget.”
🚨Latest Insolvencies
Petitions to wind up (Companies) – KLOBUCAR MEDICAL LIMITED
Appointment of Administrator – PAN MARKETING LIMITED
Appointment of Administrator – MABLE THERAPY LTD
Appointment of Administrator – WINDWARD PROSPECTS LIMITED
Appointment of Liquidators – TWENTYSIX BLACK LTD
Appointment of Liquidators – JEAN MARIE VACANCES LTD.
Appointment of Liquidators – OAKWOOD WEALTH MANAGEMENT LIMITED
Appointment of Liquidators – SIGNS AND PLASTIC PRODUCTS, LIMITED
Appointment of Liquidators – HSBC FINANCE LIMITED
Appointment of Liquidators – TWO OCEANS STRATEGY LIMITED
Appointment of Liquidators – P S HARBACH LIMITED
Appointment of Liquidators – PROPRIUS RECRUITMENT LIMITED
Appointment of Liquidators – A. LAFONT LIMITED
Appointment of Liquidators – FOOD MACHINERY & DISPLAY LIMITED
Appointment of Liquidators – PROJECT PLAN PARTNERS LIMITED
Appointment of Liquidators – LYNX CONSULTANCY LTD
Appointment of Liquidators – ENTERPRISE TRAINING 2 LIMITED
Appointment of Liquidators – YMN CONSULTING LTD
Petitions to wind up (Companies) – MITCHELLS FUNERAL DIRECTORS LTD
Petitions to wind up (Companies) – COILLE HAULAGE LIMITED
Appointment of Liquidators – DR A BEDLOW MEDICAL SERVICES LTD
Appointment of Liquidators – LAWFORD EXHIBITS LIMITED
Appointment of Liquidators – BEDFORD RENTALS LIMITED
Petitions to wind up (Companies) – GS HVAC INSTALLATIONS LTD
Petitions to wind up (Companies) – M TOYNE GROUNDWORKS LTD
Petitions to wind up (Companies) – HBS CONSTRUCT LTD
Petitions to wind up (Companies) – HONOUR PLUMBING & HEATING LTD
Appointment of Liquidators – NLYTE SOFTWARE AMERICAS LIMITED
Petitions to wind up (Companies) – HULL FURNITURE LTD
Petitions to wind up (Companies) – VACKER LTD
Petitions to wind up (Companies) – SIMPLY CLAIM LTD
Petitions to wind up (Companies) – SOFY 82 UK LTD
Appointment of Administrator – CELLULAREVOLUTION LIMITED
Appointment of Liquidators – RESTRONGUET CONSULTING LIMITED
Appointment of Administrator – DAVIDSON LUXURY HOLDINGS 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!
️ The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.