Business news 23 January 2025
Could UK join pan Europe customs scheme? The British Business Bank, debt interest, consumer confidence, high skilled visa’s, enrolment freeze hit, Thames Water, CMA, FCA, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Could UK join pan Europe customs scheme?
The European Union’s new trade chief, Marcos Sefcovic, who is responsible for post-Brexit negotiations has said that a “pan-European [customs] area is something we could consider” as part of “reset” discussions between the UK and EU. The Pan-Euro-Mediterranean Convention (PEM) are a set of common rules that allow parts, ingredients and materials for manufacturing supply chains to be sourced from across dozens of countries in Europe and North Africa to be used in tariff-free trade. The Conservatives did not pursue PEM as part of its post-Brexit deal, but some businesses have said it will help the UK rejoin complex supply chains that have been hit by customs barriers.
BBB – Celebrating a decade of impact
As the British Business Bank marks its tenth anniversary, chair Stephen Welton reflects on its significant achievements in supporting smaller businesses. The Bank has aided over 200,000 entrepreneurs, contributing an estimated £43bn to the UK economy and supporting more than 2m jobs. Welton recalls that when the Bank was launched by Sir Vince Cable, its mission was to enhance access to finance for growing businesses. Looking ahead, the Bank aims to establish the British Growth Partnership to attract more institutional investment into innovative firms, ensuring continued economic growth.
Interest on debt pushes up borrowing
Government borrowing exceeded expectations in December, reaching £17.8bn, significantly higher than the £14.6bn anticipated by the Office for Budget Responsibility. This figure marks the third highest December borrowing on record and the highest in four years. Jessica Barnaby, ONS Deputy Director for Public Sector Finances, said: “Compared with December 2023, spending on public services, benefits, debt interest and capital transfers were all up.” Public sector net financial liabilities are now estimated at 84.5% of GDP, while public sector net debt stands at 97.2% of GDP. In response to the rising fiscal pressures, Darren Jones, Chief Secretary to the Treasury, stated that the Government would rigorously review spending, promising to cut unnecessary expenditures to ensure taxpayer money is used effectively.
Consumer Confidence
Nearly half of Britons expect the economy to worsen, a BRC survey showed.
UK Consumer Confidence in January, as expectations around the health of the economy deteriorated. According to BRC-Opinium data, consumer expectations over the next three months of their personal financial situation dropped to minus 4 in January, down from minus 3 in December. Consumer’s expectations of the state of the economy worsened to minus 34 in January, down from minus 27 in December and personal spending on retail fell to minus 9 in January, down from minus 3 in December.
Recession risks
The UK will probably face more frequent technical recessions in the future, according to Bloomberg Economics. The UK’s trend growth rate (the pace at which the economy can grow without boosting inflation) is down 52% from an annual average of 2.5% to 1.2%.
Labour to relax visa rules for high-skilled workers
Rachel Reeves has announced that Labour will publish an immigration white paper later this year, including a review of visas to entice more high-skilled workers to the UK. The Chancellor told an event at the World Economic Forum in Davos: “We are going to look again at routes for the highest skilled people, visas particularly in the areas of AI and life sciences.”
Labour’s auto enrolment freeze hits businesses
Businesses are set to incur an additional £2.3bn in costs following Labour’s decision to freeze the threshold for automatic pension enrolment at £10,000 for 2025-26. Torsten Bell, the pensions minister, said the move will lead to more low-earners being included in the pension system due to rising earnings. The private sector’s pension contributions are expected to rise from £49.6bn to £51.9bn. Ian Futcher, a financial planner at Quilter, remarked: “While freezing the thresholds provides stability for both employers and employees, it is still a missed opportunity to drive higher contributions that could secure better retirement outcomes for millions of workers.”
Thames Water facing bankruptcy as Ofwat refuses to budge
Thames Water has warned ministers that raising bills by more than a third will not be enough for it to avoid bankruptcy. Talks between Britain’s largest water company and Ofwat have broken down after the regulator refused to change its decision last month capping the amount that bills could rise to pay for new infrastructure investments. Thames is expected to appeal its decision to the Competition and Markets Authority. The stand-off has Treasury officials worried that investors will be put off by the regulator’s stance just as the Chancellor is seeking to woo foreign investment.
Markets
Yesterday, the FTSE 100 closed basically flat, down 0.04% at 8545.13 compared with Europe where the Euro Stoxx 50 closed up 0.77% at 5205.83. Overnight in the US the S&P 500 rose 0.61% to 6086.37 and the NASDAQ rose 1.28% to 20,009.34 as Tuesday’s OpenAI-Oracle-Softbank AI joint venture propelled a rally in tech stocks. Netflix led the charge in the media space after a record-breaking earnings report and Nvidia and Microsoft climbed over 4% .
This morning on currencies, the pound is currently worth $1.232 and €1.183. On Commodities, Oil (Brent) is at $78.95 & Gold is at $2746. On the stock markets, the FTSE 100 is currently down 0.12% at 8535 and the Eurostoxx 50 is down 0.18% at 5197.
Davos
Donald Trump is the talk of Davos this week, and he’ll join the conversation when he speaks to attendees by video at 11 am East coast time. The CEOs of Blackstone and Bank of America are among those who will pose questions to Trump.
TikTok
In an interview with Fox News, Trump downplayed the security risk from TikTok. “Is it that important for China to be spying on young people, on young kids, watching crazy videos?” Trump said.“They make your telephones and they make your computers and they make a lot of other things,” Trump said. “Isn’t that a bigger threat?”
CMA
The Competition and Markets Authority (CMA) announced late Tuesday that Doug Gurr, who was previously country manager for Amazon UK and president of Amazon China, would serve as its interim chair replacing Marcus Bokkerink. The move follows a meeting between CMA Chief Executive Sarah Cardell and other regulators with British Finance Minister Rachel Reeves to deliver ideas on how to stimulate growth. Regulators were told to “tear down the barriers hindering business and refocus their efforts on promoting growth.”
FCA calls for politicians to define acceptable level of consumer harm
UK lawmakers have been asked by the head of the Financial Conduct Authority, Nikhil Rathi, to define an acceptable level of harm to consumers in return for looser regulations. The FCA last week responded to government calls for regulators to support growth in the mortgage market, outlining a series of regulatory changes it plans to introduce in 2025. But speaking at the House of Lords financial regulation committee on Wednesday, Mr Rathi warned: “One or two things are going to go wrong here and not everybody is going to play completely by the rule book, and is there acceptance of that?” He said the Mortgage Charter, which was introduced to reduce the risk of defaults and repossessions, would not be compatible with relaxing lending standards. However, an upside would be improving the chances of young people getting on the housing ladder. “So there are positive benefits for the economy”, he said, “but ultimately, that risk calculus is something we do need a bit of political guidance on, a political discussion on, and it needs to stick over time.” Meanwhile, Rachel Reeves told an audience at Davos that having more than 100 regulators adds to the overlapping burdens businesses face, opening the door to scrapping some bodies.
Trust at risk from Treasury intervention in commission case
Following the Treasury’s move to intervene in the motor finance commission case set for April in the Supreme Court, lawyers warn of a risk to public trust in the financial sector if consumers are denied justice. The case rests on whether it is illegal for car dealers to earn commission from lenders without obtaining the customer’s fully informed consent to the payment. But the Chancellor is concerned a £30bn bill for banks could harm the industry and make securing car finance loans more difficult. But Elizabeth Comley, COO of Slater and Gordon, argued: “While we recognise the importance of maintaining confidence in British lenders, this cannot come at the expense of justice for the individuals affected. Consumers deserve accountability and redress when they have been wronged, and Rachel Reeves’ attempts to shield lenders from the consequences of their actions risk undermining public trust in the financial sector as a whole.”
Brussels proposes extending EU banks’ access to UK clearing houses
In a victory for the City of London, the European Commission has proposed extending access to UK derivatives clearing houses for banks and other financial institutions in the EU for another three years.
JD Wetherspoon
JD Wetherspoon said food and drink sales rose in the first half of its financial year, but warned about the impact of rising costs imposed on the business. The Watford-based company, which owns and operates 796 pubs across the UK and Ireland, reported sales growth of 4.0% for the six months ending January 26.
Tariffs
Donald Trump threatened Vladimir Putin, Russia’s president, with “high levels of taxes, tariffs and sanctions” if he does not “make a deal” to end the war in Ukraine.
Major supermarkets call for rethink of IHT raid on farmers
Tesco has warned that Labour’s tax on farmers is putting the UK’s food security at risk and should be halted. The supermarket’s chief commercial officer, Ashwin Prasad, wrote in a blog: “This is not just a debate about individual policies – the UK’s future food security is at stake.” Asda and Morrisons have already made their backing of farmers public while Sainsbury’s has urged ministers to “listen to the concerns of farmers.” Mr Prasad said: “After years of policy change, it has been harder than ever for them to plan ahead or to invest in their farms. It’s why we’ll be supporting the National Farmers Union’s calls for a pause in the implementation of the policy, while a full consultation is carried out.” Meanwhile, the Office for Budget Responsibility has cast doubt on how much revenue would be raised from the measure since farmers are likely to reduce investment because of the tax raid.
Wealth “increasingly concentrated” among older people
A new report by the International Longevity Centre UK (ILC) and M&G has found that people in their late sixties increased their wealth by nearly 50% between 2010 and 2020, contrasted with those in their late 30s who saw the value of their savings and assets grow by 9%. However, only 6% of over-20s surveyed in 2019-2020 said they had received a gift worth more than £500 in the last two years, and the likelihood of being given a significant gift also falls with age. David Sinclair, chief executive at the ILC, said: “Wealth has become increasingly concentrated among older generations. If we don’t act now, these inequalities will only worsen, leaving younger generations facing even greater challenges.” Liz Emerson, of the Intergenerational Foundation, suggests inheritance tax exemptions for older people if they shift more of their family wealth towards their grandchildren.
HMRC ends overtaxing pension withdrawals
HMRC has announced it will end the controversial practice of overtaxing pension withdrawals, which has forced savers to reclaim £1.3bn over the past decade. Former Pensions Minister Steve Webb praised the decision: “At long last HMRC has listened to ordinary taxpayers.” From April 2025, HMRC will improve the tax code process, ensuring that new pension recipients are assigned the correct tax code from the outset. However, Helen Morrissey from Hargreaves Lansdown noted that while the changes are beneficial for regular income drawdown, issues persist for those taking lump sums. Tom Selby from AJ Bell emphasised the need for further adaptations to the tax system to accommodate flexible pension access.
Britain’s millionaire exodus
In 2024, the UK experienced a significant outflow of wealth, losing 10,800 millionaires, more than double the previous year. This trend is attributed to Labour’s tax increases, including a £40bn rise in Rachel Reeves’s first Budget, and changes to the non-dom tax regime. According to the Adam Smith Institute, each departing millionaire would have contributed at least £393,957 in income tax annually, equating to a revenue shortfall comparable to losing 529,200 average taxpayers. Andrew Griffith, the shadow business secretary, remarked: “This research shows Rachel Reeves’s Marxist maths has put the economy in real danger of drowning in Labour’s tepid bath of decline.”
Zoom out a bit and this is not quite the stampede for the exits that it might appear. There were 602,500 high-net-worth individuals (defined as those with investable assets of at least $1 million) in the UK at the end of 2023, according to New World Wealth, so a net outflow of 10,800 amounts to less than 2%.
Inheritance tax hits record high
Inheritance tax (IHT) payments reached £6.3bn over the nine months leading to December, marking a £600m increase from the previous year, according to HM Revenue and Customs. Nicholas Hyett, an investment manager at Wealth Club, remarked: “Inheritance tax continues to be something of a golden goose for HMRC.”
Latest Insolvencies
Petitions to wind up (Companies) – E & N FOOD PRODUCTS LIMITED
Appointment of Administrator – KINGSWOOD COLOMENDY LIMITED
Appointment of Administrator – KINGSWOOD LEARNING AND LEISURE GROUP LIMITED
Appointment of Administrator – INSPIRING LEARNING LIMITED
Appointment of Administrator – GRADUATION BIDCO LIMITED
Appointment of Administrator – INSPIRING LEARNING (HOLDINGS) LIMITED
Appointment of Liquidators – ITALIAN PRIVATE EQUITY FUND IV L.P.
Appointment of Administrator – PREFIX TECHNICAL SERVICES LIMITED
Appointment of Liquidators – KELLY MORAN LIMITED
Appointment of Liquidators – PADDINGTON MANAGEMENT COMPANY (SUSSEX GARDENS) LIMITED
Appointment of Liquidators – JFH SERVICES LTD
Appointment of Liquidators – SIMPLY SMOOTH HEALTH LTD
Appointment of Liquidators – FORTE OVERSEAS HOLDINGS LTD.
Appointment of Liquidators – THE HIGHGATE BOOKSHOP LIMITED
Appointment of Liquidators – EVEREST FUNDING LIMITED
Appointment of Liquidators – RED CELL LIMITED
Appointment of Liquidators – LEHANE LTD
Appointment of Liquidators – THE WILLESDEN BOOKSHOP LIMITED
Appointment of Liquidators – MANCHESTER ANAESTHESIA LTD
Appointment of Liquidators – M M EDUCATION LIMITED
Appointment of Liquidators – PROPUS LTD
Appointment of Liquidators – RWE SUPPLY & TRADING PARTICIPATIONS LIMITED
Petitions to wind up (Companies) – ABBEYGLEN (TEKELS PARK) PROPERTIES LIMITED
Appointment of Administrator – INFRASAFE UK LIMITED
Appointment of Liquidators – JEFFERIES EXP LIMITED
Appointment of Liquidators – K D D CONSTRUCTION MANAGEMENT LIMITED
Appointment of Administrator – CRAZY BEAR GROUP LIMITED
Winding up Order (Companies) – LSFU LTD
Winding up Order (Companies) – 3RD ALLIANCE LTD
Winding up Order (Companies) – SPS MICROGRIDS LIMITED
Winding up Order (Companies) – PHU HUNG LIMITED
Winding up Order (Companies) – GRIFFIN PLANT LIMITED
Winding up Order (Companies) – CAMERON CONSULTING (UK) LIMITED
Winding up Order (Companies) – OASIS CATERING LIMITED
Winding up Order (Companies) – F3DEVELOP LIMITED
Winding up Order (Companies) – ALPHA DELIVERY SERVICES LTD
Winding up Order (Companies) – VISUTEC LIMITED
Winding up Order (Companies) – WILLOWS SUPPORT SERVICES LIMITED
Winding up Order (Companies) – PIFIM CAPITAL LTD
Winding up Order (Companies) – CONTECH UK SHOTCRETE SERVICES LIMITED
Winding up Order (Companies) – AMT DATA SOLUTIONS LTD
Winding up Order (Companies) – BECKER HOFFMAN FACILITIES MANAGEMENT LTD
Winding up Order (Companies) – TFTP LTD
Winding up Order (Companies) – MAXXIM RESIDENTIAL DESIGN LIMITED
Winding up Order (Companies) – GCC REINFORCEMENT LTD
Winding up Order (Companies) – PLATAPUSS LTD
Winding up Order (Companies) – UMBRELLA 5ERVICES UK LIMITED
Winding up Order (Companies) – FMXA LIMITED
Winding up Order (Companies) – SELECT LABOUR SOLUTIONS LTD
Winding up Order (Companies) – CEDARWALL LTD
Winding up Order (Companies) – OPTIMUM BUSINESS SERVICES LIMITED
Winding up Order (Companies) – BRIDGWATER CURRY HOUSE LIMITED
Winding up Order (Companies) – FOOD TO GO LANCASHIRE LTD
Winding up Order (Companies) – R.CRESSWELL TRANSPORT LIMITED
Winding up Order (Companies) – OHC PROPERTY FOUR LIMITED
Winding up Order (Companies) – LONDON STORAGE & DISTRIBUTION LTD
Winding up Order (Companies) – RESPONSE DEVELOPMENT TRAINING LIMITED
Winding up Order (Companies) – MAITLAND&WILLIAMS GROUNDWORKS AND CIVIL ENGINEERING LTD
Petitions to wind up (Companies) – TANLAKE FLOWMETERING LIMITED
Appointment of Liquidators – STONEBROOK LONDON LIMITED
Appointment of Liquidators – TC WEST END LIMITED
Appointment of Liquidators – UNSOLVED STUDIOS LIMITED
Petitions to wind up (Companies) – GP ILFRACOMBE MANAGEMENT COMPANY LTD
Petitions to wind up (Companies) – HUBFIND LIMITED
Petitions to wind up (Companies) – MIND TANK LIMITED
Appointment of Liquidators – RICHARD WILLIAMS DENTAL CARE LIMITED
Appointment of Liquidators – PARAGON LEISURE GROUP LIMITED
Petitions to wind up (Companies) – L & D CONSTRUCTION SOUTH WEST LTD
Appointment of Liquidators – WUSH LIMITED
Appointment of Liquidators – TULIPTREE CONSULTANTS LIMITED
Appointment of Liquidators – K M VAUGHAN BUILDING SERVICES LTD
Appointment of Liquidators – AYA TECHNOLOGIES LIMITED
Petitions to wind up (Companies) – PROPITEER MOUNT STREET ONGAR LIMITED
Petitions to wind up (Companies) – IDDIGI LIMITED
Petitions to wind up (Companies) – VISIONAUT 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!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.