Business news 21 May 2025
CPI Rises! Insolvencies climb! Oil up! The pound, tax and interest rates to climb too? GDP, savings, 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.
CPI rises to 3.5%
Consumer Price Inflation (CPI) rose 1.2% in April to take the annual rate from 2.6% to 3.5%. Economists had predicted a rise to 3.3%. it is the highest level since January 2024. Investors immediately started to discount the chances of further interest rate cuts.
Huw Pill, the Bank of England’s chief economist, has warned that interest rate cuts are fueling inflation and need to slow down. Calling for a more “cautious” approach, he said inflation has remained above the Bank’s 2% target because the Monetary Policy Committee started cutting rates “slightly too early,” adding that the the cost of borrowing did not go high enough.
The latest data release comes against a recent trend of cooling inflation, with the rate of price rises slowing to 2.8% in February and 2.6% in March.
Insolvencies climb 3% in April
Data from the Insolvency Service shows that registered company insolvencies hit 2,053 in April, marking a 3% increase on March’s total but a 5% decline compared to April 2024. Creditors’ voluntary liquidations, where owners or shareholders choose to fold a firm, were the most common insolvency, with 1,544 recorded. There were also 379 compulsory liquidations. Tom Russell, president of insolvency and restructuring trade body R3, said firms have been hit by a hike in employers’ National Insurance contributions and an increase in the national living wage. Warning that the full impact of these costs on businesses is not likely to be seen until later in the year, he added: “The prospect of these changes being introduced has influenced a number of directors’ decisions to seek insolvency and restructuring advice and consider the future of their businesses.” The Insolvency Service also reported an 8% month-on-month rise in personal insolvencies in April, with 10,012 individuals entering insolvency. The figures included 589 bankruptcies, 3,837 debt relief orders, and 5,586 individual voluntary arrangements.
Rayner calls for tax hikes
Deputy Prime Minister Angela Rayner is advocating for increased taxes on high earners and savers. Writing to Chancellor Rachel Reeves, she proposed eight tax hikes, including freezing the threshold at which the additional rate of income tax kicks in. Ms Rayner also proposed ending inheritance tax relief on shares for the Alternative Investment Market. Other mooted measures include closing the commercial property stamp duty loophole, reinstating the pensions lifetime allowance, raising rates on dividend taxes to bring them closer to income tax and removing the tax-free dividend allowance. Calculations outlined in the memo suggest that the plans could raise taxes by £3bn to £4bn annually. The memo suggests that these policies would be “popular, prudent and would not raise taxes on working people.” Shadow Chancellor Mel Stride has hit out at the proposals, saying: “So now we know. Behind closed doors, Labour is plotting fresh tax hikes on hardworking savers, pensions, and businesses.”
UK economy to grow 1% in 2025, economists predict
A poll of economists by Reuters shows that the economy is expected to grow by 1% this year, with this an improvement on the 0.9% forecast in April. James Smith, an economist at ING, said: “The UK government is massively increasing spending this year. There’s a lot of money coming in and that’s going to act as a bit of a tailwind as well. Real wage growth is also still quite strong, so the economy still has some reasonable underpinnings.” Inflation is forecast to have risen to 3.3% in April, from 2.6% in March. Economists polled believe inflation will be above 3% on average in Q2 and Q3.
Sanctions
The UK and EU imposed new sanctions on Russia, targeting its shadow oil fleet and financial intermediaries following the call between Mr Trump & Vladimir Putin, which failed to produce progress on moves toward peace in Ukraine.
Markets
Yesterday, the FTSE 100 closed up 0.92% at 8779.07 and the Euro Stoxx 50 closed up 0.42% at 5449.88 with investors taking the view that corporate results were showing consumer confidence. Overnight in the US the S&P 500 fell 0.39% to 5940.46 and the NASDAQ fell 0.38% to 19142.71 as US equities lost steam following their $8.6 trillion surge.
This morning on currencies, the pound is currently worth $1.341 and €1.183. On Commodities, Oil (Brent) is at $66.1 (on the news Israel may attack Iran) & Gold is at $3313. On the stock markets, the FTSE 100 is currently down 0.13% at 8769 and the Eurostoxx 50 is down 0.47% at 5429.
Negative sentiment towards the US dollar continued with the greenback weaker against both trading counter-parties, and safe haven currencies.
Huw Pill Bank of England chief economist and MPC member said the pace of rate cuts may be too fast. Pill said he views a pace of one quarter point cuts per quarter as too high. At the last MPC meeting Pill voted to keep Bank Rate at 4.5%.
Figures due on Thursday are predicted to show the biggest ever drop in net migration to the UK.
The pound is rising against the US dollar and its peers after the CPI figures changed interest rate expectations.
London boosted by follow-on fundraising
While the London Stock Exchange ranked 35th globally for money raised from IPOs in 2024, with listings bringing in £459m, London surged to fifth when secondary fundraising was taken into account. With follow-on fundraising included, London raised £22bn across 73 issues, marking a 53% increase from 2023. A report from the British Venture Capital Association shows that private capital firms largely raised money from public offerings throughout secondary fundraising during 2024. The report shows that 6% of cash brought in by private equity exits came from fundraising, while 46% came from sales to other private equity firms. It is noted that the Financial Conduct Authority has launched a consultation on making secondary fundraising easier.
Chancellor: No cut to tax-free ISA limit
Chancellor Rachel Reeves has confirmed that the Government will not cut the tax-free limit on cash ISA deposits, with reports having suggested that ministers were considering cutting the £20,000 limit to as low as £4,000. Ms Reeves told the BBC: “I absolutely want to preserve that £20,000 tax-free investment that people can make every year,” and insisted that she also wants people to “get better returns on their savings, whether that’s in a pension or in their day-to-day savings.” Earlier this year, Emma Reynolds, Economic Secretary to the Treasury, highlighted that “hundreds of billions of pounds in cash ISAs” were preventing money from being invested in the London Stock Exchange, fuelling speculation that the annual limit could be cut. City Minister Reynolds recently met with leaders from large banks who warned against reducing the limit, arguing that the changes would not meaningfully improve investment and growth. While she has ruled out cutting the tax-free limit at this point, the Chancellor is expected to launch a consultation into how the ISA market could be reformed.
A quarter of Brits are silent savers
According to a study by KPMG UK, 25% of people identify as ‘silent savers’, keeping their financial matters private, while only 5% are open about their finances. The survey, which involved 2,000 adults, revealed that 18% are ‘cautious calculators’, meticulously planning their finances, and 12% are ‘casual conversationalists’, discussing money without stress. Despite 88% claiming confidence in number crunching, 37% struggle with complex financial documents.
Tax pressure threatens oil industry
Analysts from Stifel have warned that the UK’s energy profits levy (EPL) is “destroying” the North Sea oil industry, jeopardising energy security and economic stability. Introduced in response to soaring energy prices, the EPL currently imposes a 38% levy on top of existing taxes, resulting in a total tax rate of 78% for producers. This has led to a significant decline in investment in the North Sea, with Stifel estimating that the tax will cost the Treasury £3bn in tax receipts between 2025 and 2030.
Liberty Steel jobs under threat
Liberty Steel is looking to save plants in Rotherham and Sheffield from collapse after a court forced its speciality steel business to close over unpaid debts, a move that puts 1,450 jobs at risk. This came after creditors petitioned the court to force Liberty Steel’s Speciality Steels UK unit into liquidation so its assets can be sold to pay what is believed to be around £4m that is owed.
EU targets small package imports
The European Union is set to introduce a flat tax on billions of small packages entering the bloc, primarily from China. This follows pressure from member states whose customs authorities are struggling with the influx of 4.6bn items imported directly to consumers’ homes each year.
Marks & Spencer
M&S said that a recent cyberattack, which brought online sales to a standstill and left food shelves bare, would cost it around £300 million in operating profit. The company, known for its clothing, homeware and food products, said disruption from the “highly sophisticated and targeted cyber-attack” would run into July and result in increased stock management costs in the second quarter. It added that the financial impact would be reduced through management of costs, insurance and other trading actions, with costs related to the incident to be presented separately as an adjusting item.
Latest Insolvencies
Appointment of Administrator – WMS ENTRANCE SYSTEMS LIMITED
Appointment of Administrator – 79TH COMMERCIAL THREE LTD
Appointment of Administrator – LW&P (BICKNACRE) LIMITED
Appointment of Administrator – 79TH LUXURY LIVING FIVE LTD
Appointment of Administrator – HAVELOCK 1 LIMITED
Appointment of Administrator – CORBYN CONSTRUCTION LIMITED
Appointment of Administrator – AMBX LIMITED
Appointment of Liquidators – FLOKK HOLDING LIMITED
Appointment of Liquidators – R.A.S.H INNOV8 LTD
Appointment of Liquidators – ANGELEON (HOLDINGS) LIMITED
Appointment of Liquidators – FESTIVAL HOUSE DEVELOPMENTS LIMITED
Appointment of Liquidators – NOVA RISK LIMITED
Appointment of Liquidators – ASH LC THREE LIMITED
Appointment of Administrator – HAVELOCK PROPERTY LIMITED
Appointment of Liquidators – USABILITY ENGINEERING LTD
Appointment of Liquidators – SHEPHERDS BUSH TEXTILES LIMITED
Appointment of Liquidators – A & E GAUGES LIMITED
Petitions to wind up (Companies) – SNO ENTERPRISES LTD
Petitions to wind up (Companies) – ALPHA VAPE LTD
Petitions to wind up (Companies) – ELECTRICAL SOLUTIONS (SCOTLAND) LIMITED
Petitions to wind up (Companies) – JDP FUEL LTD
Petitions to wind up (Companies) – SMC BUILDING AND CIVILS LIMITED
Petitions to wind up (Companies) – WELINK ENERGY (U.K.) LIMITED
Petitions to wind up (Companies) – SHAN PHARMACY LIMITED
Petitions to wind up (Companies) – PINNACLE IMP LIMITED
Petitions to wind up (Companies) – EXPRESS LAUNDRY (YORKSHIRE) LIMITED
Petitions to wind up (Companies) – CRS GROUP LOGISTICS LTD
Appointment of Liquidators – KINEGAR QUARRIES LIMITED
Appointment of Liquidators – WILLIAMSFIELD DEVELOPMENTS LTD
Appointment of Liquidators – CLEARGREEN LIMITED
Appointment of Liquidators – GRINDLEFORD MODEL LAUNDRY CO LIMITED(THE)
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!