Business news 20 May 2025
The UK-EU trade deal. Payment delays as costs rise. AI, Rates, Energy, downbeat consumers, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Please note: on the 19/3/25 CPA moved 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.
The UK-EU trade deal
The UK and EU have agreed a new post-Brexit reset deal which covers trade, fishing, defence, energy and strengthening ties in a number of policy areas.
The UK will take part in the EU’s planned €150bn defence fund, paying its own fair share with both sides recognizing that rebuilding European defence without British participation would not be a sensible idea.far from ideal.
The current fisheries deal will be extended 12 years to 2038. We can’t eat all our fish anyway.
Food standards will be aligned to facilitate trade in food and fish products, reducing the intrusive border checks between Great Britain and Northern Ireland that were required under the Windsor framework. The UK will be able to sell raw burgers and sausages to the EU for the first time since Brexit.
The youth-experience agreement will make it easier for young people to move, study and work across borders. The UK will also look rejoining the Erasmus-plus student-exchange programme. And to the relief of British tourists, we be allowed to use border e-gates at most EU airports, instead of having to queue at passport control.
The UK and EU will link their carbon markets to avoid taxes on carbon-intensive goods like steel and cement traveling between the UK and EU. The UK will discuss buying and selling directly into the EU’s shared electricity market.
Prime Minister Sir Keir Starmer said the deal puts Britain “back on the world stage,” insisting that it “gives us unprecedented access to the EU market, the best of any country … while sticking to the red lines in our manifesto.”
European Commission President Ursula von der Leyen said the agreement marked a “historic moment” that represents “opening a new chapter” in the “unique relationship” between the UK and the bloc.
Chancellor Rachel Reeves said the agreement was “the best deal with the EU for any country” and would show that Britain “is the place to put investment and do business.”
However, Conservative leader Kemi Badenoch called the deal “very concerning,” adding: “We’re becoming a rule-taker from Brussels once again,” while Reform UK leader Nigel Farage described the deal as a “surrender.”
Factories brace for tax hikes
Factories in the UK are set to face increased taxes under a new “reset” deal which links UK and EU carbon credit markets. The agreement requires the UK to adopt carbon caps “at least as ambitious” as those of the EU, potentially leading to higher taxes for domestic industries.
Payments delayed as costs climb
Data from HMRC suggests that businesses may be delaying tax payments, with figures showing that firms owed up to £29bn in unpaid corporation tax, VAT, and National Insurance in February. This comes with businesses having faced additional demands from the Treasury, with an increase in employers’ National Insurance contributions among £40bn of tax hikes set out in October’s Budget. The HMRC data also shows that revenue losses, which include remissions and write-offs, hit £5.6bn in 2024. While unpaid VAT liabilities stood at an average of £12bn a month between January and March, corporation tax debts were around £7bn a month and the total amount of overdue PAYE or NI debt payments has consistently been above £8bn a month.
If businesses are delaying the payment of their taxes, then they are likely also delaying the payment of their suppliers. Hare you noticed an increase in late payments? Are you using CPA to prompt your late payers to settle outstanding accounts? Our overdue account recovery system has been proven to work and speed up payments. We encourage payment, direct payment direct to you and maintain goodwill.
AI essential for small firms’ survival
A report from Small Business Britain and BT shows that 60% of small business owners believe AI is essential for their survival in the next five years, with 62% already utilising it. However, barriers such as high costs and lack of understanding hinder adoption. Over two thirds (68%) want more affordable AI solutions, while 51% want more practical support. The report, The AI Opportunity for Small Businesses, recommends measures to avoid creating an “AI disparity” among the UK’s 5.45m small businesses, including affordable AI solutions, incentives for early adoption, and a national AI resource hub.
Retailers issue business rates warning
The Retail Jobs Alliance (RJA) lobby group has warned that the retail sector is facing a crisis, with increases to employer National Insurance and a higher rate of business rates on larger stores set to exacerbate existing issues. The RJA, which includes ASDA, Primark, Sainsbury’s and Tesco, says high streets have been hit by the move to online shopping and the growth of retail parks, but warns that business rates risk being the “straw that breaks the camel’s back.” The Non-Domestic Rates Bill is set to introduce a higher multiplier for larger business, with the proceeds meaning lower taxes for smaller businesses. Commercial real estate agents Colliers has previously described the Bill as “poorly thought out” and “growth strangling.”
Energy bills set to fall in July
Analysts at consultancy Cornwall Insight have predicted that domestic energy prices will fall by almost 7% a year in July. The £129 reduction in Ofgem’s price cap would mean the average gas and electricity bill would fall to £1,720 a year, down from the current level of £1,849. Cornwall Insight had previously predicted a larger fall – to £1,683 – but said the new forecast reflected higher wholesale energy prices. It has also predicted that the energy price cap will fall again in October, followed by another drop in January 2026.
Inflation increase expected following NI hike
Economists expect inflation to have risen above 3% in April, with the increase in employer National Insurance contributions expected to have had an impact. A Bloomberg poll saw experts predict that inflation will come in at 3.3%, with this up from the 2.6% year-on-year price growth recorded in March. Analysts at Goldman Sachs said the increase will be “driven by firms passing through additional costs” from the tax hike, while experts at JPMorgan said April’s inflation data will be important in assessing how much of the tax increase businesses are passing on.
Consumers ‘resolutely downbeat’ on economy
Research by S&P Global Market Intelligence suggests that British consumers remain “resolutely downbeat” about the economy. The firm’s UK consumer sentiment index came in at 45.2 in May, up from 44.5 in April on a scale where a figure below 50 points to pessimism. The report says that while May saw a more optimistic reading than the month before, attitudes were in “firmly negative territory amid persistent financial worries.”
Markets
Yesterday, the FTSE 100 closed up 0.17% at 8699.31 and the Euro Stoxx 50 closed flat at 5427.23. Overnight in the US the S&P 500 rose 0.09% to 5963.60 and the NASDAQ rose 0.02% to 19215.46.
Investors were concerned by the Moody downgrade of the US credit from AAA to AA1 and the US Treasury Secretary Scott Bessent who was dismissive of the Moody downgrade and said that the US government would act against trading partners that fail to negotiate in good faith, whatever that means.
This morning on currencies, the pound is currently worth $1.337 and €1.188. On Commodities, Oil (Brent) is at $65.45 & Gold is at $3236. On the stock markets, the FTSE 100 is currently up 0.53% at 8746 and the Eurostoxx 50 is up 0.27% at 5442.
China accused the US of undermining recent trade talks after the US warned that using Huawei AI chips “anywhere in the world” would violate US export controls.
The Port of Los Angeles reported a drop of 30% in inbound shipments in early may as the tariff war showed real world impacts.
Clean power storage
Key to the clean power revolution is the ability to store electricity. Europe’s biggest battery – the pumped hydro plant at Dinorwig – opened in 1984 is currently being refurbished in a £1 billion development. The technology is simple. When energy is plentiful water is pumped from a lower reservoir to a higher basin and when power is in short supply, it is released back through a turbine. It accounts for more than half the UK’s 3 gigawatt long duration storage capabilities. By the end of the decade we need to increase that to 8 gigawatts. Many more projects will have to follow. The current refurbishment at Dinorwig will add 25 years to its life.
Chancellor ‘open-minded’ on ring-fence reform
Rachel Reeves has told bank bosses she is “open-minded” on the prospect of reforming the ring-fencing regime imposed on the industry’s biggest players. The chief executives of HSBC, Lloyds, NatWest and Santander last month wrote to the Chancellor, describing the legislation which requires big banks to keep their retail bank operations separate from their investment bank as “redundant.” Ms Reeves said officials are “considering the issues.” Meanwhile, Sam Woods, head of the Bank of England’s Prudential Regulation Authority, has reportedly told staff to explore ways to ease ring-fencing rules without sacrificing the protection they provide for retail deposits. Analysis by RBC suggests that removing the ring-fence could see the banking sector benefit by as much as £2.5bn.
Government announces tighter BNPL regulation
The Government has announced new rules which target buy now, pay later lenders, bringing them under the regulatory remit of the Financial Conduct Authority (FCA). The legislation means lenders will have to carry out affordability checks to stop people taking on too much debt. It will also see consumers given faster access to refunds and the right to take complaints to the Financial Ombudsman. Warning that BNPL “has operated as a wild west,” Emma Reynolds, Economic Secretary to the Treasury, said the new rules “will protect shoppers from debt traps and give the sector the certainty it needs to invest, grow and create jobs.” Tom MacInnes, director of policy at Citizens Advice, said the legislation is “a crucial step towards better protections for consumers.” He has urged the FCA to “act swiftly to set out the strong consumer safeguards that are so urgently required.”
Investors are going for gold
UK retail investors are increasingly looking to gold, with 58% of those polled by Charles Schwab saying they expect the precious metal to increase in value over the next year. This is the highest number of any asset class and means gold is outdoing traditional investments such as the FTSE 100, which just 39% of investors feel will increase in value. Investors have been drawn to precious metals amid market volatility driven by uncertainty around US trade policy and tariffs. An increase in capital gains tax is also playing a part, with gold exempt from the levy. Richard Flynn, managing director at Charles Schwab UK, says investors are “increasingly bullish” towards safe-haven assets such as precious metals. He added that while some opt to invest in gold directly, “others prefer to invest in mining stocks to gain exposure to gold within their portfolios.”
Financial services faces AI skills shortage
The UK’s financial services sector is facing a skills gap, according to a report from Harvey Nash which highlights the rapid pace of AI adoption in the sector. AI has been identified as the scarcest skill, having placed seventh just 18 months ago, with analysis showing a 260% increase in reported shortages. Rhodri Hughes, executive director for financial services at Harvey Nash, said that while the UK has always been seen as a leading global financial hub, “this could come under threat” if skills shortages are not addressed. The report shows that 89% of technology leaders in the financial services sector are investing in AI, up from 43% a year ago. It was also shown that just 9% of financial services executives believe their firm is prepared for incoming AI regulation, while 14% do not have an AI regulatory risk framework in place.
Deloitte to create 500 tech jobs
Deloitte is set to create 500 new technology jobs in Belfast over the next three years, responding to increased client demand and the “evolving needs” of UK businesses. The firm will establish four dedicated technology centres across the UK, with Belfast being the largest, alongside centres in Cardiff, Manchester, and Newcastle. Additionally, training programmes will be launched to upskill new joiners, including non-technology graduates and career switchers.
Latest Insolvencies
Petitions to wind up (Companies) – SKEAN HOMES LTD
Appointment of Liquidators – SKEW ENERGETICS LIMITED
Appointment of Liquidators – CF SPARKS LIMITED
Appointment of Liquidators – FAIRFIELD ENERGY HOLDINGS LIMITED
Appointment of Administrator – G&T PHOENIX LTD
Appointment of Liquidators – FAIRFIELD ENERGY LIMITED
Appointment of Liquidators – FAIRFIELD FAGUS LIMITED
Appointment of Liquidators – FAIRFIELD ENERGY NO.1 LIMITED
Appointment of Administrator – VENTURI LIMITED
Appointment of Liquidators – FAIRFIELD BETULA LIMITED
Appointment of Liquidators – P & K LETTINGS LIMITED
Appointment of Liquidators – VIVA TECH SOLUTIONS LTD
Appointment of Liquidators – NEXUS SALES & LETTINGS LTD
Appointment of Liquidators – DECOM ENERGY LIMITED
Appointment of Liquidators – SJAH LIMITED
Appointment of Liquidators – RADICAL HQ LIMITED
Petitions to wind up (Companies) – CLEE MEADOWS LTD
Petitions to wind up (Companies) – RCS MOT AND SERVICE CENTER LTD
Petitions to wind up (Companies) – MJJ TRADING LIMITED
Petitions to wind up (Companies) – PIONEER TRANSPORT LTD
Petitions to wind up (Companies) – ASPIRE PROPERTIES NE LTD
Petitions to wind up (Companies) – MARITIME REGISTER OF SHIPPING (UK) LTD
Petitions to wind up (Companies) – BAB BUSINESS GROUP LTD
Appointment of Liquidators – SAIGON PRODUCTIONS LIMITED
Appointment of Administrator – DACO CONSTRUCTION (NORFOLK) LTD
Petitions to wind up (Companies) – IPE CAPITAL 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!
New Data Reveals the UK’s Worst-Paying Business Sectors – How SMEs Can Fight Back