Business news 22 May 2025
SMEs could ‘unlock £78bn’ by using AI. Job vacancies defy tax fears. Inflation, tech, regulation, tax, 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.
SMEs could ‘unlock £78bn’ by using AI
A report commissioned by Microsoft and consultancy WPI Strategy suggests that SMEs could unlock up to £78bn for the economy over the next decade through greater adoption of generative AI. Analysis by the Federation of Small Businesses shows that 55% of SMEs believe the use of AI could add a huge benefit to their operations. However, 46% said they lack understanding of the technology. Naomi Weir of the Confederation of British Industry, says the UK “has a huge opportunity to lead, but only if we act now to make AI accessible for all businesses – not just a few.”
Job vacancies defy tax fears
Job vacancies in the UK labour market increased by 729,000, or 0.4%, in April, reaching a total of 1.47m. The increase occurred despite concerns that higher employer National Insurance contributions and the national living wage would negatively impact employment. Neil Carberry, chief executive of the Recruitment and Employment Confederation (REC), said that the jobs market is showing signs of “resilience” and reflects “underlying demand” from workers.
Inflation hits 3.5%
More on something we covered briefly yesterday – Data from the Office for National Statistics showed that inflation rose to 3.5% in April. This was up from the 2.6% recorded in March and exceeds the 3.3% increase that had been forecast by economists. The Bank of England, which has an inflation target of 2%, has previously said it expects inflation to peak at 3.7% between July and September. The rise came amid increases in energy costs, while higher employer National Insurance contributions and a boost to the national minimum wage have put pressure on companies to raise prices.
Monica George Michail, an economist at the National Institute of Economic and Social Research, said inflation could remain high for several months, meaning the Bank of England is likely to only cut interest rates one more time this year.
The British Chambers of Commerce said that while April’s increase was expected, “the scale … is concerning.”
Suren Thiru, economics director at the ICAEW, said April’s increase “highlights the brutal hit to household and business finances from April’s multitude of eye-watering bill rises and tax hikes.”
Chancellor Rachel Reeves said she was “disappointed” with the figures.
Government debt
UK Government Borrowing rose by more than expected to £20.2 billion last month, mounting further pressure on Chancellor Rachel Reeves to meet her fiscal rules. The Office for National Statistics, ONS, said public sector net borrowing rose to its fourth-highest April figure on record after increasing £1 billion year-on-year. The state borrowing figure reflects the difference between government spending and its income, largely through tax receipts.
London no longer Europe’s top tech hub
Paris has overtaken London as Europe’s leading tech hub, having been named the only non-US city in the top five on Dealroom’s 2025 global tech ecosystem index. While London’s tech firms raised more venture capital than Paris Between 2017 and 2024, they saw a smaller gain in enterprise value. The total enterprise value of Paris tech firms increased fivefold, compared to the 4.2 times increase for London firms. The report also shows that London continues to lead Europe in AI investment, with start-ups raising $3.5bn last year, ahead of Paris’s $2.4bn, and Munich’s $763m.
UK tech M&A deals surge
Analysis shows that activity across the UK’s software M&A market has hit a record high, with £13.2bn deployed across 420 deals over the past year. This marks a 27% year-on-year increase.
CBI calls for business input on regulation reform
Rupert Soames, president of the Confederation of British Industry (CBI), has warned that the Government’s efforts to reduce regulatory barriers will fail without consulting the businesses affected. Mr Soames has described the Government’s deregulatory push as a “golden opportunity” to enhance international competitiveness and foster innovation but argued that efforts to cut needless red tape will “not be enough without consulting those who live and breathe these regulations themselves: that’s business.” This comes with the Government having initiated a reform agenda, with Prime Minister Keir Starmer and Chancellor Rachel Reeves urging regulators to propose ways to stimulate economic growth.
PM refuses to rule out tax hikes
During Prime Minister’s Questions, Keir Starmer faced scrutiny from Conservative leader Kemi Badenoch regarding potential tax increases. Ms Badenoch accused Mr Starmer of evading the question about further tax rises, and argued: “People out there are struggling, businesses are struggling … we cannot have more tax rises.” This came after reports revealed that Deputy Prime Minister Angela Rayner has pushed for a £4bn tax hike that would include an end to inheritance tax relief for AIM shares, higher taxes on dividends and the reinstatement of the pensions lifetime allowance.
Wealthy may face higher taxes
Chancellor Rachel Reeves may consider increasing taxes on the wealthy to avoid further borrowing, Government sources have suggested. Angela Rayner, the Deputy Prime Minister, previously suggested tax hikes that could raise up to £4bn annually, but these were rejected in favour of spending cuts. Despite this, many proposed measures are expected to resurface in future Budgets. While economists predict a potential £60bn shortfall in the next budget, the Chancellor has pledged that she will adhere strictly to her borrowing rules. Labour has ruled out raising income tax, VAT, and corporation tax.
Tax proposals could spark wealth exodus
Tax increases proposed by Deputy Prime Minister Angela Rayner’s could lead to a significant exodus of wealth creators from the UK, AJ Bell founder Andy Bell has warned. He said Ms Rayner “seems to think the answer to the UK’s productivity problem is to tax anyone who’s still producing.”
Markets
Yesterday, the FTSE 100 closed up 0.08% at 8786.88 and the Euro Stoxx 50 closed up .08% at 5454.56. Overnight in the US the S&P 500 dropped 1.61% to 5844.61 and the NASDAQ fell 1.41% to 18872.64.
While Europe was flat, US markets were spooked as bonds yields rose over concern over the tax cutting bill Trump is pushing which it is estimated will add $3 trillion to the national debt. The thirty year treasury yield rose to 5.07%.
This morning on currencies, the pound is currently worth $1.34 and €1.1187. On Commodities, Oil (Brent) is at $64 & Gold is at $3309. On the stock markets, the FTSE 100 is currently down 0.7% at 8725 and the Eurostoxx 50 is down 0.9% at 5405 as the US stock pessimism rippled around the world.
Bitcoin bucked the trend rising above $110k as Trump & the Senate continued to push crypto with the stablecoin bill.
J P Morgan’s CEO, Jamie Dimon said he can’t rule out the US economy sliding into stagflation as the US faces huge risks from tariffs and the government deficit. “I don’t agree that we’re in a sweet spot,” adding that he thought the Federal Reserve was doing the right thing in waiting before reducing interest rates.
The EU has set out a framework for trade talks with the US, including workers rights, environmental standards, economic security and reduction of tariffs on selected products.
OPEC+ members are reportedly discussing another super-sized production increase at their meeting on the 1st June which will pressure the oil price down.
Chancellor warned over tax raid on banks
Rachel Reeves has been warned that increasing tax on banks could hit economic growth. This comes after Deputy Prime Minister Angela Rayner suggested that the sector could be targeted in a tax raid in a memo to the Chancellor. David Postings, chief executive of UK Finance, argues that the sector already makes a “significant contribution” to the UK’s tax base, with analysis suggesting that its total tax contribution hit £44.8bn in the 2023/24 financial year. This marked a 4.7% increase on the year before. He noted that UK-based lenders “already pay a significantly higher rate of tax than those in New York and are expected to pay notably higher rates of tax than in other European capitals.” Ms Rayner has called for the surcharge tax on banks to be raised from 3% to 5%, with this coming on top of the 25% corporation tax.
Tice backtracks on £90bn tax cuts
Richard Tice, deputy leader of Reform UK, has distanced himself from the party’s previous commitment to implement £90bn in tax cuts within 100 days of winning the next election. He clarified that the proposed tax cuts were merely indicative of “the direction of travel” and contingent upon first achieving £150bn in public spending reductions. Simon French, chief economist at Panmure Liberum, has raised concerns about the feasibility of Reform’s economic policies, warning of a potential £70bn to £80bn gap in public finances. The Institute for Fiscal Studies has suggested that Reform is underestimating the costs of its tax cuts and overestimating the amount that can be saved through cuts in spending.
Latest Insolvencies
Petitions to wind up (Companies) – EXPERT THINKING (CONSULTING) LIMITED
Petitions to wind up (Companies) – THE CHICH LIMITED
Petitions to wind up (Companies) – ACCELERATOR CONCEPTS LIMITED
Petitions to wind up (Companies) – BKM CATERING SERVICES LTD
Petitions to wind up (Companies) – BLUELYNK SERVICES LTD
Petitions to wind up (Companies) – BROOKLANDS AND STRATTONS LIMITED
Petitions to wind up (Companies) – PHILLIPS THOMAS LIMITED
Petitions to wind up (Companies) – NAGOVALI LIMITED
Petitions to wind up (Companies) – TRU TRADE LIMITED
Petitions to wind up (Companies) – YORKS STRATFORD LIMITED
Petitions to wind up (Companies) – ONE&ONLY PRO LIMITED
Petitions to wind up (Companies) – VVV TECHNOLOGIES (UK) LIMITED
Petitions to wind up (Companies) – NORTH SOUTH CONNECT LTD
Petitions to wind up (Companies) – COOPER HOLLAND LIMITED
Petitions to wind up (Companies) – PAPER RIVER CONSULTING LTD.
Petitions to wind up (Companies) – ENPHARMA LIMITED
Petitions to wind up (Companies) – PURE COMMS BRISTOL LIMITED
Petitions to wind up (Companies) – SLURP NOODLES LIMITED
Petitions to wind up (Companies) – REDHILL CLASSICS LIMITED
Petitions to wind up (Companies) – DAVID ANDERSEN LIMITED
Petitions to wind up (Companies) – AXT ENTERPRISE LIMITED
Petitions to wind up (Companies) – WITTENBORG MANAGEMENT LTD
Petitions to wind up (Companies) – TALKSOLUTION LTD
Petitions to wind up (Companies) – COGEN LIMITED
Petitions to wind up (Companies) – HARRIS FINDLEYS LTD
Petitions to wind up (Companies) – ZONEWHIRL LIMITED
Petitions to wind up (Companies) – REGENERATION CATALYST LIMITED
Petitions to wind up (Companies) – ARIORT LIMITED
Petitions to wind up (Companies) – PLANNING MATTERS LLP
Petitions to wind up (Companies) – HASKINS PROJECT MANAGEMENT LTD
Petitions to wind up (Companies) – PLAYMAINTAIN LIMITED
Petitions to wind up (Companies) – BLACKFINCH SOLUTIONS LTD
Petitions to wind up (Companies) – BABELSBERG EUROPE LTD
Petitions to wind up (Companies) – THE ELM CATERERS LTD
Petitions to wind up (Companies) – D PRIVATE MARKETS LTD
Petitions to wind up (Companies) – BNB TRADING LTD
Petitions to wind up (Companies) – 1 LIFE U K LTD
Petitions to wind up (Companies) – BANTU FINANCE LTD
Petitions to wind up (Companies) – SUPER DEALZ ONLINE LTD
Petitions to wind up (Companies) – LAMIE 1 LTD
Petitions to wind up (Companies) – MARKETING AND BRANDING LTD
Petitions to wind up (Companies) – FUEL BUNKERING SERVICES LIMITED
Petitions to wind up (Companies) – ABC ENTERTAINMENT LIMITED
Petitions to wind up (Companies) – TULIP WHATELY HALL HOTEL OPCO LTD
Petitions to wind up (Companies) – M & Q PROPERTY MAINTENANCE LTD
Petitions to wind up (Companies) – GHUMAN RETAIL LIMITED
Petitions to wind up (Companies) – D HAYNES LIMITED
Petitions to wind up (Companies) – KENNEDY’S PUBLICATIONS LIMITED
Petitions to wind up (Companies) – REMARKABLE GROUP CONSULTING LIMITED
Petitions to wind up (Companies) – CC RAIL SERVICES LTD
Petitions to wind up (Companies) – KBC SH LTD
Petitions to wind up (Companies) – RAVEN MUSIC LIMITED
Petitions to wind up (Companies) – KLUB KIDS UK LIMITED
Petitions to wind up (Companies) – DIRECT BACK OFFICE PAYROLL LTD
Petitions to wind up (Companies) – SOUTHSTREET (BUILDERS) LIMITED
Petitions to wind up (Companies) – KINGDOM LIFE MINISTRIES
Petitions to wind up (Companies) – GRAPEVINE CORPORATE LIMITED
Petitions to wind up (Companies) – JOLT CONSULTANCY LIMITED
Petitions to wind up (Companies) – IPI BUILD LTD
Petitions to wind up (Companies) – VICTORIA HOTEL LIMITED
Petitions to wind up (Companies) – DELTACO 1 LTD
Petitions to wind up (Companies) – EMPLOYMENT LABOUR SUPPLY LIMITED
Petitions to wind up (Companies) – PAYROLL PROS LIMITED
Petitions to wind up (Companies) – NOTTINGHAM’S HOMELESS HOUSING LIMITED
Petitions to wind up (Companies) – COZMETIKS LIMITED
Petitions to wind up (Companies) – BACK OFFICE SYSTEMS 1 LIMITED
Petitions to wind up (Companies) – 99 MEDIA ORG LTD
Petitions to wind up (Companies) – SABER GENERATORS LTD
Petitions to wind up (Companies) – SOMETHING SPATIAL LIMITED
Petitions to wind up (Companies) – ARYAN TRANSPORTATION & LOGISTICS LIMITED
Petitions to wind up (Companies) – A&V MOTOR ACCIDENT REPAIRS LTD
Petitions to wind up (Companies) – ABAID LIMITED
Petitions to wind up (Companies) – JAMESON OWEN LIMITED
Petitions to wind up (Companies) – JOB ZONE LTD
Petitions to wind up (Companies) – DOLPHIN LOGISTICS (LONDON) LTD
Petitions to wind up (Companies) – FT GROUP LIMITED
Petitions to wind up (Companies) – NRI CONTRACTS LTD
Petitions to wind up (Companies) – FIVE KINGS HOTEL LIMITED
Petitions to wind up (Companies) – DNA4X4 LTD
Appointment of Administrator – SKYBRIDGE U.K. LTD
Appointment of Administrator – LIP SYNC POST LIMITED
Appointment of Liquidators – KLC PROPERTIES LIMITED
Appointment of Liquidators – STODEX LTD
Appointment of Liquidators – DATA INTERCHANGE LIMITED
Appointment of Liquidators – MAYFLOWER NORTH WEST LIMITED
Appointment of Liquidators – ASPEN TOWER NICOL PROPCO (THE GRANGE) LIMITED
Appointment of Liquidators – MAYFLOWER NORTH WEST (HOLDINGS) LIMITED
Appointment of Liquidators – ADT FAMILY INVESTMENTS LIMITED
Appointment of Liquidators – BITDIREX LTD
Appointment of Liquidators – LONT PROPERTIES LIMITED
Appointment of Liquidators – BUY SELL LIMITED
Appointment of Liquidators – K.R. ROLLINSON CONSULTANTS LIMITED
Winding up Order (Companies) – F M STEEL SERVICES LIMITED
Appointment of Administrator – MARGREITER LIMITED
Winding up Order (Companies) – PARLA COME MANGI LTD
Petitions to wind up (Companies) – BEST OF BRITANNIA LTD
Petitions to wind up (Companies) – REUZEIT LTD
Petitions to wind up (Companies) – ALL RETURN LTD
Appointment of Liquidators – DIONO UK LIMITED
Appointment of Liquidators – C.R.E.JOHNSON SUPPLIES 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!