Business news 19 September 2025

Today’s blog covers fears of a pension tax raid, the Bank of England holding rates at 4%, higher-than-expected government borrowing, a retail sales boost, record-low home approvals, AI scrutiny in financial services, Nvidia’s big UK investment, and the latest insolvencies.

James Salmon, Operations Director.

💸 Pension Tax Raid Fears Drive £70bn Withdrawals

FCA data shows savers withdrew £70.9bn from pensions in 2024/25 — a 36% rise — amid speculation the Chancellor could slash the tax-free lump sum. Currently capped at £268k, proposals suggest this could drop to £40k.
👉 SMEs should note: squeezed household finances often translate into reduced spending and slower payments.

📊 Bank of England Holds Rates at 4%

The MPC voted 7–2 to keep the base rate steady at 4%, warning inflation at 3.8% remains stubborn. Governor Bailey said cuts would be “gradual and careful.”

Click here to see my TikTok on the subject

👉 For SMEs, borrowing costs remain elevated, and customer demand will stay under pressure.

💷 Budget Deficit Overshoots Forecasts

UK government borrowing hit £18bn in August, the highest in five years and well above the OBR’s £12.5bn forecast. Analysts say Chancellor Reeves faces tough tax and spending choices ahead of the autumn Budget.
👉 Higher borrowing raises the risk of future tax rises on businesses and households alike.

🛍️ Retail Sales Surprise on the Upside

Retail sales volumes rose 0.5% in August, helped by warmer weather boosting clothing and bakery sales. The rise matches July’s revised figure, suggesting households are still spending despite higher taxes.
👉 A short-term lift for SMEs in consumer-facing sectors — though sustainability is in doubt.

🏠 New Home Approvals at Record Low

Planning approvals for new homes fell to just 29,000 in the year to June, the lowest since records began in 1979. Housing Secretary Steve Reed called the figure “unacceptable.”
👉 Bad news for construction SMEs, and another signal of a cooling property market.

🤖 Treasury Probes Big Tech’s AI Role in Finance

The Treasury has written to OpenAI, Microsoft, Google, and others, seeking details on AI’s use in UK financial services. Research suggests AI could cut 178m work hours and 27,000 banking jobs over five years.
👉 For SMEs, AI offers efficiency gains but could reshape competition in unexpected ways.

🚀 Nvidia Commits £2bn to UK AI Startups

Nvidia announced a £2bn investment into UK AI ventures including Wayve and Revolut, partnering with several VC firms. The move is pitched as helping the UK compete globally in AI.
👉 Encouraging for tech SMEs and a signal of growing opportunity in the UK’s AI ecosystem.

📈 Nvidia Backs Intel With $5bn Stake

Nvidia also said it will invest $5bn in Intel, taking a 4% stake. Intel shares surged 22% — their best day since 1987 — while Nvidia rose 3%.
👉 Tech investment is booming globally, reinforcing AI and semiconductors as the growth story of the decade.

📉 Next Warns of Weak Growth

Fashion chain Next forecast “anaemic growth” ahead, citing regulation, tax burdens, and declining job opportunities. While not a cliff edge, it warned of a constrained medium-term outlook.
👉 SMEs should remain cautious on expansion and focus on credit control.

🌍 Market Snapshot (19 Sept)

  • US Equities: S&P 500 +0.5% to record high, Nasdaq 100 +1.0%, Russell 1000 +0.5%. Intel soared 22% after Nvidia’s $5bn investment.
  • Bonds: US 10-year Treasury yields +3bps to 4.12%.
  • Europe: Stoxx 600 flat; DAX +0.2%, CAC 40 +0.2%, FTSE 100 +0.1%. Autos and mining up; tech/media lagged.
  • Oil: Brent above $67, WTI below $64. Trump pushes for lower prices to pressure Russia.
  • Gold: Down ~$60 from Wednesday’s record after Fed caution and stronger dollar.
  • Metals: Copper faces near-term demand headwinds, but long-term shortages could lift prices by 2026.
  • Energy: European gas steady; EU planning faster LNG phaseout.
  • Currencies: GBP/USD -0.5% at 1.3492; EUR/GBP +0.2% at 0.8714; EUR/USD ~1.1770.
    👉 Theme: Fed easing and Nvidia-fuelled tech rally pushed US markets to records, while Europe stays cautious.

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🚨 Latest Insolvencies (19 Sept)

  • Petitions to Wind Up (Companies)
  • SEH Advisory Limited
  • The Wapping and Shadwell Secondary Education Trust
  • The Manor at Pinewood Limited
  • Andrews The Builders Ltd
  • Courtneys Autos Limited
  • Chiko Private Ltd
  • PRS Payroll Services Ltd
  • Façade Panel Systems Ltd
  • Deskon Technologies Ltd
  • Roy’s Jamaican Cuisine Limited
  • Pinnacle Appointments Ltd
  • Stratstone Projects Limited
  • Simpex Corporation (Europe) Limited
  • Euro Express Livestock Limited
  • UK Caring Services Limited
  • Mangata Pay UK Limited
  • Going Group Ltd
  • DMS Transport Solutions Ltd
  • Elliott Dugan Carpentry Limited
  • Single Digital Reason Limited
  • Reigns Consultancy Ltd
  • Blue Spruce Homes Management Limited
  • Facade & Drylining Limited
  • Crabtree & Evelyn (Overseas) Limited
  • The ELA Advantage Ltd
  • 2471 Consultancy Limited
  • Project 21/11 Limited
  • Panoramic Group Facilities Ltd
  • EWB Installations Ltd
  • Holst Real Estate Capital Limited
  • Counting King Limited
  • Sun Inn Morpeth Limited
  • TAT Building Ltd
  • Primrose Hudson Limited
  • Roses Healthcare Ltd
  • E17 Holdings Ltd
  • Computerengland.com Limited
  • Dant Employment Ltd
  • MPN Technologies Limited
  • Cardboard Boxes 2 Go Ltd
  • Acorn Care Providers Limited
  • Naljany MNM Limited
  • Stern Group Ltd
  • Hulme Aviation Consultants Ltd
  • Smart Engineering (East Anglia) Limited
  • Ingenio Construction Ltd
  • Ecommercial Cleaning Services Limited
  • LS Support Ltd
  • TPC Martock Limited
  • Graham Gibson Associates Limited
  • D. & A. Media Limited
  • Alchemist Solutions Limited
  • Green.TV Media Limited
  • Express Movers UK Ltd
  • Pepitos 2 Limited
  • BSL Umbrella Limited
  • Vision Bars Holdings Limited
  • (UK) W1G Limited
  • Joe Delucci’s Limited
  • Sarum Electrical & Mechanical Ltd
  • Why Not Bar and Lounge Limited
  • Zero Dependency Limited
  • Knowbit Ltd
  • Appleton Business Advisors Limited
  • Black Pear Developments Limited
  • Amplify.Link Ltd
  • Dankee Resourcing Ltd
  • Karrma Ltd
  • GGP Drywall Ltd
  • Sam McObrien Associates Limited
  • Edmar Recruitment Services Ltd
  • M & D Contract Services Ltd
  • TS Services (Midlands) Limited
  • Trade and Train Ltd
  • Direct Care Childrens Homes Ltd
  • Relief Services Plus Limited
  • Euro Couriers Ltd
  • Joy-Tech Consultancy Ltd
  • Event Corp Leisure Ltd
  • Loughborough Market Ltd
  • Aluminor Resourcing Services Ltd
  • Lilquest Facilities Ltd
  • Lisaff Ltd
  • Koplar Group Ltd
  • Quba Trust
  • Mc Leod Associates Limited
  • ARB & Grounds Equipment Limited
  • Flexi Caribbean Restaurant Ltd
  • Syston Sub Ltd
  • CP12 Energy Ltd
  • Rbuild Ltd
  • HH Care Ltd
  • HSC (International) Limited
  • Validate-It Services Ltd
  • Coastal Inspired Ltd
  • The Empire Design Company Limited
  • Loughborough Rushes Ltd
  • IGMTB Ltd
  • NSJ Builders Merchants Ltd
  • Seagraves Pallets Limited

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