Business news 20 June 2025
Bank of England holds rates steady. Retail sales fall. Public sector borrowing rises. UK loses half a million millionaires. Markets, tax, fraud, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Bank of England holds rates steady
The Bank of England has decided to maintain interest rates at 4.25% to combat persistent inflationary pressures, particularly in light of rising energy prices due to tensions in the Middle East. Governor Andrew Bailey stated: “Interest rates remain on a gradual downward path, although we’ve left them on hold today.” Despite three members of the Monetary Policy Committee (MPC) advocating for a 25 basis point cut, the majority (6) opted for caution, citing the unpredictable global landscape. Inflation data from the Office for National Statistics indicated a 3.4% rise in prices over the past year, prompting the Bank to remain vigilant. The MPC acknowledged that monetary policy must stay restrictive until inflation risks are adequately addressed, with forecasts suggesting inflation could reach 3.7% by September.
Retail sales fall
UK retail sales suffered the sharpest fall since 2023, in a sharp reversal of consumer spending that suggests the economy could be struggling in the second quarter.
UK retail sales fell 2.7% in May from April or -2.8% excluding petrol worse than the consensus 0.5% decrease said the Office of National Statistics.
Public sector borrowing rises
UK public sector borrowing hit £17.7bn in May the second highest level on record. This will add to concerns the government is struggling to keep to its fiscal rules.
Miliband urged to support small firms with net zero
Shirine Khoury-Haq, the Chief Executive of the Co-op, has written to Ed Miliband, urging him to address the significant challenges hindering small and medium-sized enterprises (SMEs) in achieving net zero. She highlighted that a lack of affordable finance and excessive planning regulations are obstructing their efforts. Khoury-Haq stated: “I continue to believe that energy consuming businesses – both small and large – could and should be encouraged and equipped to play in this urgent transition.” She called for free energy auditing and low-cost loans for English firms, aligning them with Scottish initiatives.
Infrastructure boost
The UK Government has pledged £725 billion to be spent over the next decade on Infrastructure projects They include rebuilding and maintaining schools, colleges, and hospitals, and prison expansion.
Darren Jones of the Treasury said the government would be doing “fewer things better instead of the same things badly”, a sign that the list of more than 600 projects inherited from the Conservatives may be cut back.
At least £9 billion a year will be committed to critical maintenance of schools, hospitals, prisons, and courts “following years of underinvestment”. The infrastructure strategy includes plans to invest £16 billion in new homes, £590 million for the Lower Thames Crossing project, and £1billion for the maintenance of transport infrastructure.
CMA to investigate infrastructure delays
The UK’s Competition and Markets Authority (CMA) is set to conduct a review of road and railway infrastructure projects due to ongoing delays and cost overruns. The initiative follows the Government’s announcement of a £37bn increase in HS2 costs and a two-year delay. The review aims to address “persistent issues around cost and delivery” and will assess whether procurement and regulatory processes hinder market growth.
UK loses half a million millionaires
The UK experienced a significant decline in its millionaire population, losing approximately 437,553 individuals in 2024, according to the annual UBS Wealth Report. The total number of dollar millionaires fell from 3.06m in 2023 to 2.62m in 2024, making the UK one of the few major economies to witness such a drop. Factors contributing to this decline include high interest rates and a struggling stock market. Michel Frey, head of UK high net worth at UBS, stated: “Average real-term wealth per adult in the United Kingdom fell in 2024 because living-cost pressures and rising interest rates moved faster than either house prices or most financial markets.” Meanwhile, the US saw a contrasting trend, with household wealth increasing by 11% in 2024. The country gained more than 1,000 millionaires a day over the year.
Markets
Yesterday, the FTSE 100 closed down 0.58% at 8791.80 and the Euro Stoxx 50 closed down 1.33% at 5197.03 as markets were nervous about possible escalations the conflict in the Middle East. The US was closed for the Juneteenth holiday.
But overnight investor confidence was buoyed as Trump said he would be delaying the decision on bombing Iran for two weeks. There’s a substantial chance of negotiations that may or may not take place with Iran in the near future, press secretary Karoline Leavitt said, citing Trump. The White House also claimed that Iran has all that it needs to build a nuclear weapon.
This morning on currencies, the pound is currently worth $1.349 and €1.171. On Commodities, Oil (Brent) is at $77.4 & Gold is at $3356. On the stock markets, the FTSE 100 is currently up 0.43% at 8829 and the Eurostoxx 50 is up 0.8% at 5238.
Bank of England Deputy Governor Clare Lombardelli said the central bank is closely monitoring events in the Middle East after a “deeply worrying” escalation of tensions.
US President Trump suggested he nominate himself to lead the US Federal Reserve following the Federal Reserve decision.
Tesco
Tesco has ordered a solar-powered chilled delivery fleet of vehicles, in a move to enhance its green credentials.
SFO to use undercover agents to solve corporate crime
Nick Ephgrave, the chief of the Serious Fraud Office (SFO), is set to enhance efforts against white-collar crime by recruiting whistleblowers and undercover agents. Ephgrave aims to leverage his experience from the Metropolitan Police to tackle complex corporate crime more effectively. “Fraudsters are just criminals acting in a different sphere,” he said. “They’re cheating ordinary people, taking money, and damaging the country – the same as gunrunners, drug smugglers and all the rest. We should therefore use as much of the tactical armoury that we can against them. That was something I brought in from my policing background, and we are continuing to build that capability.”
HMRC reveals widening tax gap
The UK’s tax gap has increased significantly, with HM Revenue & Customs (HMRC) reporting a loss of £46.8bn in tax liabilities for the 2023-24 financial year, equating to 5.3% of total theoretical tax liabilities. The gap, which represents the difference between taxes owed and collected, was £39.8bn or 4.8% in the year prior. Small businesses now account for 60% of this gap, a rise from 48% in 2019-20. HMRC noted that the tax gap attributed to criminals has decreased from 12% to 9% over the same period. Additionally, individuals and wealthy individuals contribute to 10% of the overall gap, with uncollected corporation tax making up the largest portion at 41%.
Self-employed face hefty tax burden
HMRC’s “Making Tax Digital” initiative is set to impose significant costs on nearly 900,000 self-employed individuals, with estimates suggesting an additional burden of at least £480 per worker. Starting from April 2026, self-employed workers will be required to report their taxes quarterly instead of annually, necessitating the purchase of third-party software, which can cost around £150. Fiona Fernie, a partner at Blick Rothenberg, described the initiative as “pointless,” stating that it adds unnecessary bureaucracy without increasing tax revenue. The Institute of Chartered Accountants in England and Wales (ICAEW) echoed these concerns, labelling the project as “burdensome and not justifiable.” Despite the backlash, the Government plans to extend the digital tax rules to more self-employed individuals by 2028, potentially bringing in an additional 900,000 taxpayers.
Henrys feel the tax pinch
Young professionals, known as Henrys (High Earners, Not Rich Yet), are increasingly frustrated with the high tax burden in the UK. Despite earning over £100,000, many feel financially strained due to rising costs and taxes. Estimates suggest there are around 800,000 Henrys in England and Wales, with a significant portion of income tax revenue coming from the top 10% of earners. Alex Mengden from the Tax Foundation noted: “I think the reliance on high earners… there’s been a bit of a continuous process over the past 10 or 15 years.” As the Government prepares for the autumn Budget, there are concerns that further tax increases may be on the horizon, potentially alienating this demographic from supporting Labour in future elections.
Latest Insolvencies
Appointment of Liquidators – TRACT UK LTD
Appointment of Liquidators – HOTEL ELLENBY LTD
Appointment of Liquidators – GUESTLYNX LIMITED
Appointment of Liquidators – CREPE’ EXPECTATIONS LIMITED
Appointment of Liquidators – ROSFUND LIMITED
Appointment of Liquidators – OVER THE TOP MARQUEES LIMITED
Appointment of Liquidators – LANBRO DEVELOPMENTS LIMITED
Appointment of Liquidators – ARTEVASI UK LIMITED
Winding up Order (Companies) – ROSE GARDEN MOTORS LIMITED
Appointment of Liquidators – MCNEIL GILSON LTD
Appointment of Liquidators – NAVITRON 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!