Business news 21 February 2025
Personal insolvencies, late payment interest, jobs, retail, AI, pensions, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Personal insolvencies jump to a 12% annual increase
The number of people going financially insolvent across England and Wales jumped by 12% in January compared with January 2024, according to Insolvency Service figures. Some 9,706 people entered insolvency last month, which was 3% lower than in December 2024 but 12% higher than in January 2024.
The 3,847 debt relief orders (DROs) registered in January 2025 were 82% higher than the long-term average of 2,114, although below the record high of 4,336 seen in June 2024, the Insolvency Service said. They added that the rise in DRO numbers since April 2024 coincided with the abolition of a £90 admin fee to obtain a DRO and the expansion of eligibility criteria in June 2024. The debt threshold for having a DRO was increased from £30,000 to £50,000 and the allowable value of an exempt motor vehicle was increased from £2,000 to £4,000.
Separately, there were 5,267 individual voluntary arrangements (IVAs) registered in January 2025 which was6% lower than the average monthly number seen in 2024. And at 592, bankruptcy numbers remained at about half of pre-2020 levels.
In addition to the personal insolvency figures, there were 8,240 breathing space registrations under the debt respite scheme in January.
Years of rising prices have hit household finances hard, and as we reach the final stages of a long, cold winter, financial concerns remain a constant worry for many. With heating and food costs continuing to rise, many people are struggling to remain solvent.
If you sell on invoice to consumers, what measures do you have in place to get paid when the invoice becomes due?
HMRC late payment interest hits £400m
HMRC has claimed £409m in late payment interest from taxpayers, with this triple the £131.9m it pulled in from interest charges in 2021. Chris Etherington of RSM said: “Late payment interest has become an increasingly important source of revenue for HMRC,” adding: “While a penalty is understandable, it risks pushing financially struggling taxpayers into a debt spiral.” Amid concern over the impact of frozen tax thresholds and shrinking tax-free allowances, Laura Suter of AJ Bell said: “We’ve seen a rise in taxpayers missing payments because they simply can’t afford it. More people will be forced into self-assessment, and these punishing penalties will hit them hard.” With taxpayers who pay their taxes via self-assessment set to pay more interest as HMRC cracks down on late payments, Andrew Park at Price Bailey warned: “It’s a blatant cash grab by the taxman and one which comes without any safeguards.”
Jobs market hit by ‘longest downturn’ in decades
The global jobs market is experiencing its longest downturn since the early 2000s, according to Dirk Hahn, chief executive of Hays, Britain’s largest recruitment firm. He said: “I have been in the business for 27 years and this is by far the longest downturn I have ever seen.” Demand for contract workers remains low, and the market for permanent hires has not improved since a pre-Christmas slump. Despite these challenges, the UK labour market has shown resilience, with companies retaining staff but hesitant to hire. James Hilton, Hays’s chief financial officer, noted that businesses are maintaining their workforce but are not looking to expand, leading to a “slight stalemate situation.”
Retail
UK Retail Sales climbed by 1.7% over the month, against a downwardly revised 0.6% drop in December. Renewed growth at food stores, where sales jumped by 5.6%, offset declines for the likes of household, clothing and textile goods, alongside automotive fuel. The overall uptick trounced analyst expectations, which had been for a 0.2% increase in retail sales in January.
UK banks use AI to boost customer services
Banks in the UK are more likely to focus AI strategy on improving customer experience than their US rivals, according to NTT Data’s Intelligent Banking in the Age of AI report. While 52% of UK banks are using AI to enhance customer services rather than cut jobs, 59% of US banks have prioritised their AI usage on cutting costs. The analysis also saw 37% of European banks say regulation is the biggest obstacle when it comes to adopting AI. Roberto Freddi, European lead of financial services at Kearney, said: “Regulation is emerging as the biggest roadblock to AI adoption for European banks, reinforcing the need for clear frameworks that drive innovation while ensuring compliance.” It was also found that while a quarter of UK banks are looking to switch to a fully automated model, a third of US firms are aiming for full automation.
Reeves urges financial services to back emerging markets
Rachel Reeves has urged financial services firms to work with development institutions and within emerging markets. The Chancellor met with firms including Aviva, HSBC and Schroders to call on the industry to seize on growth opportunities and boost London’s position as a leader in development finance. At a roundtable co-hosted with Odile Renaud-Basso, president of the European Bank for Reconstruction and Development, Ms Reeves launched the London Coalition on Sustainable Sovereign Debt, which will be co-chaired by City Minister Emma Reynolds. The coalition will look to bring the Government and private sector stakeholders together to boost sustainable sovereign debt financing. Ms Reeves said: “Business and government must work together to seize opportunities in emerging markets and kickstart economic growth,” adding: “The UK’s world-leading financial centre can help countries unlock new opportunities for our brightest and best British companies to create wealth and drive growth.”
Pensions could exceed personal allowance in 2026
Retirees may have to pay tax on the state pension as early as next year, according to Deutsche Bank analysis. The report suggests that annual state pension payments could increase by 5.5% to £12,631 in 2026. This would push payments above the £12,570 tax-free personal allowance and see recipients forced to pay the basic 20% rate of tax on income above £12,570. Office for Budget Responsibility analysis had suggested that state pension payments would not breach the personal allowance until April 2027.
Public service reform is pro-growth
Pensions Minister Torsten Bell says reforming Britain’s public services is a pro-growth and pro-business policy, arguing that it is not possible to have a “failing state and a growing economy.”
Markets
Yesterday, the FTSE 100 closed down 0.57% at 8662.97 and the Euro Stoxx 50 closed flat at 5461.03. Overnight in the US the S&P 500 fell 0.43% to 6117.52 and the NASDAQ fell 0.47% to 19962.36.
US shares were hit by profit taking. The trigger was attributed to a profit warning from WalMart which forecast sales and profit for the year to end January 2026 as below Wall Street estimates and also commented on weak US consumer sentiment. UK stocks were off 0.57% with around half of that loss attributable to ex dividends from BP and others.
UK gilts were steady yesterday after recent declines led to 30 year yields picking up to 5.19%. Concerns have been raised over the impact of higher defence spending on UK/ EU government budgets and hence primary issuance. However there was a general retreat in defence companies today, with BAE Systems off 50p on suggestions that some of the recent excitement had been priced in.
This morning on currencies, the pound is currently worth $1.265 and €1.208. On Commodities, Oil (Brent) is at $75.9 & Gold is at $2925. On the stock markets, the FTSE 100 is currently down 0.06% at 8657 and the Eurostoxx 50 is up 0.07% at 5464.
Japan’s Inflation in January climbed 4% year on year, hitting its highest level since January 2023, further strengthening the case for rate hikes by the country’s central bank.
HMRC urged to scrutinise Chancellor’s tax record
The Tories have urged HMRC to investigate whether the Chancellor paid the appropriate taxes on her expenses while working as an economist at Halifax Bank of Scotland. Allegations from a whistleblower suggest that Rachel Reeves, along with two other managers, misused bank funds with excessive spending. Shadow Cabinet Office Minister Mike Wood has written to Sir Jim Harra, the head of HMRC, highlighting that the Income Tax (Earnings and Pensions) Act 2003 mandates that expenses must be “wholly, exclusively and necessarily in the performance of the duties of the employment.”
Fashion chain Quiz collapses
Fashion chain Quiz has fallen into administration with the closure of 23 stores. Administrator Teneo has agreed a pre-pack administration deal for Orion, a subsidiary company run by Quiz’s founding family, that will see it buy the Quiz brand and 42 shops, saving around 1,300 jobs. However, the closure of 23 branches in the UK and Ireland will mean the loss of 191 jobs. Sheraz Ramzan, chief executive of Quiz, said the company had appointed administrators due to “continuing challenging trading conditions impacting the group’s performance.” He added that the decision “will put the business on a more sustainable footing for the future and protect several hundred jobs.”
Latest Insolvencies
Petitions to wind up (Companies) – INVICTUS GROUP HOLDINGS LTD
Petitions to wind up (Companies) – SUNLIGHT LOFTS (UK) LIMITED
Petitions to wind up (Companies) – IDENTITY LABS LIMITED
Petitions to wind up (Companies) – HOUSECHOICE LIMITED
Petitions to wind up (Companies) – GREAT BUILDERS LIMITED
Petitions to wind up (Companies) – RK SOFT LIMITED
Petitions to wind up (Companies) – ACCENT MENSWEAR LTD.
Petitions to wind up (Companies) – SIMPLIFY ER LIMITED
Petitions to wind up (Companies) – ALL ELECTRONICS LTD
Petitions to wind up (Companies) – PREMIER RETAILERS GROUP LTD
Petitions to wind up (Companies) – MYC TRADING GROUP LIMITED
Petitions to wind up (Companies) – HM ENERGY UK LIMITED
Petitions to wind up (Companies) – ASSURE HEALTHCARE GROUP (SOUTH) LTD
Petitions to wind up (Companies) – G.L.H.4 LIMITED
Petitions to wind up (Companies) – HODGE & WILSON LTD.
Petitions to wind up (Companies) – THOMAS COMMERCIAL CLEANING LIMITED
Petitions to wind up (Companies) – THE EMPLOYMENT CO GROUP LTD
Petitions to wind up (Companies) – MSR LOCUMZ LIMITED
Petitions to wind up (Companies) – CARE SOLUTIONS (DORSET) LIMITED
Petitions to wind up (Companies) – EQUALITY AND DIVERSITY CARE LTD
Petitions to wind up (Companies) – ABEL BROTHERS LTD
Petitions to wind up (Companies) – KINGFISHER RESORTS ST IVES LIMITED
Appointment of Administrator – TRADELINE UPVC LTD
Appointment of Administrator – EAST 45 LTD
Appointment of Administrator – ARTEZZAN RESTAURANTS LIMITED
Appointment of Administrator – E.CRIS UK LTD
Appointment of Liquidators – P AND J LIMITED
Appointment of Administrator – INVENIA GROUP LIMITED
Appointment of Liquidators – AUTOMATION WISE LIMITED
Appointment of Liquidators – WCP INTERNATIONAL LTD
Appointment of Liquidators – GA MINOR GP LIMITED
Appointment of Liquidators – BLUE RASPBERRY INVESTMENTS LTD
Appointment of Liquidators – GA MINOR LP INVESTOR LIMITED
Appointment of Liquidators – GOLDBUG INNOVATIONS LTD
Appointment of Liquidators – ENTERPRISE HOUSE OF DATA AND INFRASTRUCTURE LTD
Appointment of Liquidators – BEIGUO LIMITED
Appointment of Liquidators – LINK PARK HEATHROW LLP
Appointment of Liquidators – GOLDFINCH GROUP LIMITED
Appointment of Liquidators – RMG INVESTMENTS LIMITED
Appointment of Liquidators – WILLIAMSONS PROPERTY LIMITED
Appointment of Liquidators – COOMBES TRADING LIMITED
Appointment of Liquidators – BHF SOLUTIONS LIMITED
Appointment of Liquidators – SOURNIA CONSULTING LTD
Petitions to wind up (Companies) – ELEADOR CONSULTANTS LIMITED
Petitions to wind up (Companies) – KWIK PRO LTD
Petitions to wind up (Companies) – COMMUNICATING LUXURY LIMITED
Petitions to wind up (Companies) – PARK HIGHEND RESIDENTIAL LTD
Petitions to wind up (Companies) – SHAFTESBURY UK DISTRIBUTION LTD
Petitions to wind up (Companies) – KARPATY BAKERY HULL LIMITED
Petitions to wind up (Companies) – DYFED TELECOM LTD
Appointment of Liquidators – MONT INVESTMENTS LIMITED
Appointment of Liquidators – SESANI LTD
Appointment of Liquidators – ASTERIA FISHING COMPANY LIMITED
Appointment of Liquidators – DREELSIDE ENGINEERING CONSULTANTS LIMITED
Appointment of Liquidators – THREE THISTLES PLC
Appointment of Administrator – ZANDRA RETAIL LIMITED
Winding up Order (Companies) – AWG CONSTRUCTION LTD
Appointment of Liquidators – JUNO FINANCE UK LIMITED
Appointment of Liquidators – IDEARISK LIMITED
Appointment of Liquidators – BHT TECH LIMITED
Petitions to wind up (Companies) – SMARTER DEVELOPMENTS LTD
Petitions to wind up (Companies) – SUPERSPORTS (LONDON) LTD
Appointment of Liquidators – BCI TECHNOLOGY LIMITED
Petitions to wind up (Companies) – C. MORGAN LIMITED
Petitions to wind up (Companies) – FLAIR SPORTING ELITE LTD
Petitions to wind up (Companies) – OASIS FASHIONS HOLDINGS LIMITED
Petitions to wind up (Companies) – WAREHOUSE FASHIONS HOLDINGS LIMITED
Petitions to wind up (Companies) – PAYNE CARPENTRY LTD
Appointment of Liquidators – PLATINUM INFOTECH LTD
Appointment of Liquidators – ICARE DAY CENTRE TRUST LIMITED
Appointment of Liquidators – 24VER LTD
Appointment of Liquidators – RAYGAS LTD
Appointment of Administrator – CHARLTON MILLS ADVISORY LTD
Appointment of Liquidators – FERROUSITY LIMITED
Appointment of Liquidators – HANSON MANAGEMENT CONSULTING LTD
Appointment of Liquidators – OUTATIME 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!