Business news 22 July 2025
Chancellor urged to revise fiscal rules. Government borrows billions more than expected. UK firms to be briefed on global risks. Markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Chancellor urged to revise fiscal rules
Rachel Reeves could amend fiscal rules to alleviate challenges during spring fiscal events, according to the Institute for Fiscal Studies (IFS). The IFS suggests that instead of altering the frequency of forecasts by the Office for Budget Responsibility (OBR), the Chancellor should adjust the rules to allow a budget deficit of 0.5% of GDP at each spring forecast. The current fiscal rules, which limit borrowing, are under scrutiny as Reeves contends with a potential £30bn budget shortfall due to high borrowing costs and policy reversals.
Government borrows billions more than expected
The government borrowing came in more than forecast in June, putting further pressure on Chancellor of the Exchequer Rachel Reeves to raise taxes to shore up the public finances. A surge in debt-interest payments sent the budget deficit to £20.7 billion, the Office for National Statistics said earlier, £6.6 billion more than a year earlier and well above the £17.5 billion predicted.
UK firms to be briefed on global risks
Top business executives in the UK are set to receive briefings from the Foreign Office on global risks, including conflicts and trade tensions, as part of the newly established Geopolitical Impact Unit. The initiative aims to provide firms with “straight from the source” insights to help them expand overseas while reducing reliance on costly private consultants. However, some executives question the necessity of such initiatives, citing existing specialist advisers and concerns over potential tax increases.
Markets
Yesterday, the FTSE 100 closed up 0.23% at 9012.99 and the Euro Stoxx 50 closed down 0.3% at 5342.98. Overnight in the US the S&P 500 rose 0.14% to 6305.60 and the NASDAQ rose 0.38% to 20974.18.
This morning on currencies, the pound is currently worth $1.349 and €1.153 .
On Commodities, 
Oil (Brent) is at $68.60 & Gold is at $3386.
On the stock markets, the FTSE 100 is currently up 0.06% at 9018 and the Eurostoxx 50 is down 0.67% at 5308.
TSMC has joined the US$1trn market cap club – the first for an Asian company listed in Taipei.
In yet more political interference, Scott Bessent, the USA’s treasury secretary, called for an inquiry into the “entire Federal Reserve institution” claiming its mandate creep into areas beyond its core mission.
Sanofi to buy Vicebio
Sanofi agreed to buy UK biotech Vicebio Ltd. for as much as $1.6 billion, gaining experimental vaccines and a technology to streamline their development. The French drugmaker will pay $1.15 billion upfront with a commitment for potential milestones worth as much as $450 million, it said in a statement this morning.
Astra Pledges $50 billion on US manufacturing
AstraZeneca Plc plans to invest $50 billion in the US before 2030, increasing spending alongside other European drugmakers ahead of potential tariffs on imported pharmaceuticals.
Government signs investment seals on £38 Billion Sizewell C nuclear plant
The government announced final approval for the Sizewell C nuclear power plant after securing private investment in the £38 billion project. The UK will retain a minority stake of around 45%, while other investors include French state-owned Electricite de France, Caisse de Dépôt et Placement du Québec, Centrica Plc and Amber Infrastructure Group Ltd.
Private equity investment plummets in UK
Private equity investment in UK businesses has significantly declined, reaching levels not seen since the early pandemic. In the first half of 2025, private equity funds executed 726 investments, a 17.1% decrease from 876 deals in the same period of 2024, according to KPMG. Alex Hartley, head of corporate finance at KPMG UK, remarked: “As we headed into 2025 off the back of strong deal numbers last year, the expectation was that M&A activity would continue to pick up.” However, geopolitical uncertainties and the impact of tariffs have created volatility in the deals market. The first quarter saw 370 investments, which fell to 356 in the second quarter, with the southwest of England being the only region to experience growth. Despite the downturn, Hartley expressed cautious optimism for the remainder of 2025, anticipating a potential uptick in activity as business owners prepare for upcoming tax changes.
EU will make UK pay to join €150bn defence fund
Britain is set to pay a percentage of the value of weapons purchased from UK companies through an EU-led defence fund, as part of the €150bn Security Action for Europe initiative. Sir Keir Starmer stated that joining this project would create “new opportunities for our defence industry, supporting British jobs and livelihoods.” However, EU diplomats have indicated that the UK will need to recompense Brussels for its participation in the scheme, which aims to enhance military capabilities in response to threats from Russia. The exact payment amount is still under negotiation. The same mechanism will apply to Canada and any other countries that want their industry to access the money, sources said.
Taxpayers urged to challenge HMRC after 46,266 fines dropped
According to HMRC’s latest annual accounts, the number of penalties cancelled on appeal has surged 29% year on year to 46,266. HMRC put the increase down to a new penalty regime for VAT which made it easier for firms to appeal fines through their online accounts. But Price Bailey’s Andrew Park says poor customer service, administrative failings by HMRC and banking delays were also factors that led to late filings. Many fines were also likely cancelled because the individual owed no tax. Mr Park said many taxpayers might be unaware they could appeal a fine. “When two-thirds of appealed penalties are overturned, yet only a small fraction of the nine million issued are challenged, it suggests a significant number of taxpayers may be paying penalties they could successfully contest.” A spokesman for HMRC said: “Our penalty reforms enable customers to appeal easily and quickly online against both penalties and penalty points. Our new points-based system means only those who persistently miss deadlines will incur a financial penalty.”
PM pressed on wealth tax
Sir Keir Starmer was confronted with Labour demands for wealth taxes during a cross-party Liaison Committee on Monday, as he faced an end-of-term grilling by MPs. With an estimated £30bn gap in public finances, former minister Liam Byrne proposed taxing investment income and capital gains to fund a “big bold working class tax cut.” But the PM avoided committing to any specific measures, saying: “I’m not going to be tempted to start speculating on what might or might not be in the Budget.” Elsewhere, Adam Smith posits in the Telegraph that, instead of introducing a wealth tax, Labour will target council tax or primary residence relief, also stamp duty, capital gains, inheritance, and dividend taxes.
ICAEW backs reform to UK SME audit practices
The Financial Reporting Council’s (FRC) decision to enhance the audit practices for small and medium-sized enterprises (SMEs) in the UK has been backed by the Institute of Chartered Accountants in England and Wales (ICAEW). ICAEW chief policy and communications officer Iain Wright said: “SMEs are crucial to the UK economy and local communities, and can be at the vanguard of addressing and solving the UK’s productivity and growth challenges. We strongly support FRC’s initiative to help SMEs access audit services and, in turn, help them secure the capital they need to innovate, scale and grow.”
Wimbledon
A High Court judge ruled that the site of the Wimbledon tennis championship can be expanded to over twice its current size. A group of nearby residents had challenged the permission granted by the Mayor of London’s office last September. Wimbledon says it needs to expand to keep up with other major tournaments.
Private equity investment in accountancy surges
Interest in UK accountancy firms from private equity houses has reached unprecedented levels, with a Kingsley Napley survey revealing that 46% of firms are open to investment and a third have already secured funding. Notably, 86% of top 60 firms reported approaches from private equity or external investors for 2024. John Young, partner at Kingsley Napley, commented: “A major injection of funds to make a step-change difference in tech will help to future-proof practices.” Despite the growing interest, traditional funding sources like partner capital and bank lending remain dominant. Concerns about loss of control and identity persist, but Julie Matheson, also a partner at Kingsley Napley, noted that “private equity is reshaping the accounting sector, not just at the larger firm end but in the mid-market and smaller firm market too.”
Chancellor warned pensions tax stability is essential
Hargreaves Lansdown has cautioned Rachel Reeves against “tinkering” with pension tax relief, warning it could undermine efforts to encourage retirement savings. Helen Morrissey, head of retirement at Hargreaves Lansdown, said: “As we run into the Budget any discussion around reform of pension tax relief needs to be treated with care.” The warning comes after Pensions Minister Torsten Bell refused to rule out a tax raid on pensioners. The new Pensions Commission, set to report in 2027, aims to address the issue of inadequate retirement savings, while also considering the impact of potential tax rises in the Autumn Budget. The Fabian Society has suggested a flat rate of tax relief for all tax bands to simplify the system while James Carter from Fidelity International urged the Government to provide clarity on pension taxation to foster effective saving strategies.
Kendall warns of ‘tsunami’ of pension poverty
Work and Pensions Secretary Liz Kendall has launched a new independent commission on pensions, warning of a potential “tsunami of pensioner poverty” unless significant changes are made. She said many individuals are not saving adequately for retirement, with nearly half of the working-age population saving nothing at all. The commission, led by Jeannie Drake, aims to build consensus on reforms, including possibly lowering the auto-enrolment age and increasing contribution rates. Kendall said: “Unless we act, tomorrow’s pensioners will be poorer than today’s.” The commission will also review the state pension age, but will not consider the costly triple lock guarantee.
New mortgage rules could save homeowners money
Homeowners are set to benefit from new mortgage regulations introduced by the Financial Conduct Authority (FCA), aimed at simplifying remortgaging and reducing loan terms. The FCA’s reforms will eliminate certain guidance deemed outdated, easing the regulatory burden on financial firms. The change allows borrowers to shorten their mortgage terms without a full affordability assessment, potentially lowering borrowing costs and reducing repayment risks into retirement. Emad Aladhal, director of retail banking at the FCA, said: “We are helping more people navigate their financial lives by supporting those who can afford to buy a home.” The FCA points out that lenders must still consider affordability and maintain high standards to protect consumers.
Deputy PM wants councils granted power to charge for hotel stays
The Deputy Prime Minister has called for councils to be given the power to introduce tourist taxes as a means to fill local coffers. The move aligns Angela Rayner with regional mayors including Sir Sadiq Khan and Andy Burnham, but the Chancellor is reportedly loath to introduce constitutional reforms that could take time to implement and which could harm local economies. Rachel Reeves has been warned by hospitality groups that further taxes would risk making their businesses unprofitable after a year of higher taxes under Labour. Mel Stride, the shadow chancellor, told the Telegraph: “Labour can’t help themselves – it’s always tax, tax, tax. Whether it’s Angela Rayner or Rachel Reeves, the instinct is always the same – more taxes. First a £25bn jobs tax, now threats of a tourist tax that would hit hospitality hard.”
UK’s hesitation on stablecoins reveals bureaucratic capture
The Financial Conduct Authority (FCA) is currently consulting on stablecoins, but critics argue that the UK is lagging behind other nations. Countries like Japan, Singapore, and the US have already implemented regulations, while the UK is still in the consultation phase. Paul Marshall, chair of Marshall Wace, says that “smart regulation costs nothing” and is essential for attracting investment. He points out that the UK is trapped in bureaucracy, which overestimates risks and underestimates opportunities. With the US passing the Genius Act, the UK faces a critical choice between adopting a dynamic stablecoin model or a more bureaucratic approach. The Mail reports on how tokenisation will lead to a trading revolution, making the industry cheaper, more transparent and more accessible for everyday investors.
London’s music scene boosts economy
London’s economy is set to benefit significantly from a series of concerts featuring global stars, according to the mayor. The upcoming Oasis performances at Wembley Stadium are expected to attract 630,000 attendees, generating nearly £500m. Grassroots venues also saw a £313m revenue increase last year. UK Music reported that 7.5m people attended concerts in London, contributing £2.7bn to the UK’s live music industry, which totals £10bn. Kate Nicholls from UK Hospitality highlighted the positive impact of live music on local pubs and restaurants.
WEF research ‘rigged’ to undermine Brexit
The World Economic Forum (WEF) is facing allegations of manipulating research to portray Brexit unfavourably. Klaus Schwab, the WEF’s founder, reportedly intervened in the 2017-18 Global Competitiveness Report, insisting that the UK “must not see any improvement” in its ranking otherwise it would be “exploited by the Brexit camp.” The report warned that Brexit would “weaken the UK’s markets component” as integration with the EU diminished. Priti Patel, the shadow foreign secretary, condemned Schwab’s actions as “a stain on the reputation of the WEF,” while Nigel Farage labelled him a “dangerous globalist manipulator.” The allegations surfaced during an internal investigation into Schwab’s conduct, initiated following whistleblower claims of fund misuse and research manipulation
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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!