Business news 23 May 2025
Manufacturers face sharp order slump. Rise in borrowing raises fear of more tax hikes. UK economy shows signs of recovery. Markets, services, retail, migration, 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.
Manufacturers face sharp order slump
British manufacturers are experiencing a significant decline in orders and output, according to the Confederation of British Industry (CBI). The CBI’s monthly balance for new manufacturing orders fell to -30 in May, the lowest since January. The downturn aligns with S&P Global’s survey, which indicated the fastest job cuts in the manufacturing sector since the COVID-19 pandemic began. Ben Jones, lead economist at the CBI, said: “Sentiment among UK manufacturers seems poor, reflecting a combination of rising domestic business costs and US tariff uncertainty.” Additionally, manufacturers are grappling with high energy and labour costs, alongside potential new regulations from the Government’s Employment Rights Bill. Despite a slight improvement in exports following a trade agreement with the US, the overall sentiment remains negative.
Rise in borrowing raises fear of more tax hikes
The Office for National Statistics has reported that public sector net borrowing reached £20.2bn in April, marking the fourth-highest figure for the month on record. Economists, including Ruth Gregory from Capital Economics, suggest that “further tax rises are starting to feel inevitable” due to increased spending pressures and a need to balance the budget. The Chancellor, Rachel Reeves, is under pressure to meet her fiscal rules while managing rising costs in public services and benefits. Public sector net debt is now estimated at 95.5% of UK GDP – 0.7 percentage points higher than a year earlier and now at levels last seen in the early 1960s. The rise in borrowing is attributed to higher public sector pay and inflation-linked benefits. Maxwell Marlow of the Adam Smith Institute points out that over 8% of public spending is spent on debt repayment.
UK economy shows signs of recovery
The UK economy is showing signs of recovery following a challenging April marked by rising energy costs and employment tax increases. According to S&P Global’s latest flash purchasing managers’ index (PMI), the services sector experienced moderate growth in May, although manufacturing activity is still contracting. Chris Williamson, chief business economist at S&P Global, noted that businesses reported a “milder May” after the “awful April” and that “price pressures have moderated after spiking higher.” However, uncertainty surrounding global economic policies continues to dampen confidence, leading to a decline in new work across the private sector.
Strong economy needed to reverse winter fuel payment policy
Sir Keir Starmer has indicated a potential easing of cuts to winter fuel payments, which have affected over 10m pensioners this winter due to means-testing. But the Business Secretary, Jonathan Reynolds, stated that the economy must be “strong enough” for the Government to reconsider this policy. Meanwhile, former Labour PM Gordon Brown has suggested people on top income tax rate should be excluded from winter fuel.
Markets
European equities traded lower on Thursday, weighed down by a negative handover from Wall Street and softer markets in Asia overnight. Investor sentiment soured following renewed concerns over the US fiscal outlook.
However, Johnson Matthey surged as much as 30% after reporting a rise in annual profits and announcing the sale of its Catalyst Technologies unit to Honeywell International for £1.8 billion.
Yesterday, the FTSE 100 closed down 0.54% at 8739.26 and the Euro Stoxx 50 closed down 0.55% at 5424.48. Overnight in the US the S&P 500 fell a slight 0.04% to 5842.01 and the NASDAQ rose 0.28% to 18925.73.
This morning on currencies, the pound is currently worth $1.3495 and €1.1895 as the dollar continues to be punished by markets as latest proposed budget promises even more borrowing to fund Trump’s tax cuts. On Commodities, Oil (Brent) is at $64.3 & Gold is at $3329. On the stock markets, the FTSE 100 is currently up 0.11% at 8749 and the Eurostoxx 50 is down 0.21% at 5413.
Finance ministers from the G7, a group of rich democracies, vowed to tackle “non-market policies” that contribute to “excessive imbalances” in the global economy. This is taken as a statement against Chinese trade practices and not Trump’s tariffs.
The US is pushing the EU to make unilateral tariff reductions or face reciprocal duties of 20%, the FT reported. The US will tell the EU today that Europe’s focus on mutual tariff reductions falls short of US expectations.
Services PMI
The UK Services PMI rose to 50.2, up from 49.0 in April and slightly above the forecast 50. The manufacturing PMI fell to 45.1 from 45.4, below the forecast 46.1. Putting them together, with a bigger weighting for the larger services sector, the preliminary UK May composite PMI rose to 49.4 from 48.5, but below the forecast 49.3 due to the fall in manufacturing.
Retail
Retail sales rose in the UK at a faster pace than expected last month, boosted by warm weather. Retail sales volumes expanded 1.2% in April from March, numbers from the Office for National Statistics showed. They had risen 0.1% in March from February, an expansion revised down from the initially reported 0.4% climb. The April growth was six times the predicted 0.2%.
Migration
Net migration to Britain nearly halved in 2024 to 431,000, as tougher visa rules brought in by the former Conservative government began to show effect. Arrivals on work and study visas fell sharply; asylum claims rose to 109,000 in the year to March 2025.
Bill could erase £1bn British Steel debt
Ministers are contemplating new legislation to eliminate British Steel’s debts, which are estimated to be close to £1bn, a move Taylor Wessing’s Nick Moser warned could damage business confidence in the UK.
Tax hikes drive Travelodge in to the red
Travelodge has reported a loss in the first quarter of its financial year, primarily due to tax increases announced by Chancellor Rachel Reeves, which are expected to cost the hotel chain over £20m this year. The rise in the National Living Wage will contribute £12m, while increased National Insurance contributions will add £9m to its tax bill in 2025. Revenue fell from £205.5m to £198.4m, reflecting “softer UK market trading conditions, particularly in Greater London.” Travelodge’s EBITDA loss reached £8.4m, down from a profit of £4.9m in the same period last year. Despite challenges, the company is optimistic about future bookings and events, including concerts by Oasis, Beyoncé, and Bruce Springsteen, which may boost performance in the second half of 2025.
BOE urged to stay in its ‘swim lane’ on climate
Sarah Breeden, the deputy governor for financial stability, has stressed the need for the Bank of England to focus on managing climate risks without engaging in political debates over net zero carbon emissions.
Oasis reunion to boost London economy
The highly anticipated Oasis reunion is projected to generate a £426.3m boost to London’s economy, with fans expected to spend over £1bn during the band’s seven-night residency at Wembley Stadium. According to Novuna Personal Finance, the event will attract more than 630,000 fans, each contributing an average of £766.22 across travel, hospitality, and retail. The tour is expected to accumulate £1.06bn in total spend across the UK, surpassing Taylor Swift’s recent tour. The experience economy is thriving, with 60% of Brits eager to invest in cultural events this summer.
Builder.ai probe found signs of bogus sales
Builder.ai, a prominent UK tech start-up backed by Microsoft, is facing insolvency after an internal investigation revealed significant discrepancies in its revenue reporting. The company, which had previously estimated revenues of $220m for 2024, has revised this figure down to approximately $55m, while 2023 sales were restated from $180m to around $45m. The investigation, prompted by concerns over unpaid bills and revenue recognition, suggested a possible effort to inflate revenues, particularly involving questionable resellers in the Middle East. As a result, lenders called a default.
Luxury glamping provider goes bust
Luxury camping operator Yurtel has gone into liquidation leaving wealthy Glastonbury festivalgoers without their yurts or chauffeured rides to the Pyramid Stage. The company’s most recently available accounts, up to October 2023, show they had £570,000 in cash and about £760,000 in debt. Glastonbury Festival said it was “sorry to learn” that Yurtel Limited had appointed liquidators but stressed that it had no involvement with its operation and the firm had not paid for any tickets prior to entering liquidation, so no tickets were secured for their guests.
Latest Insolvencies
Petitions to wind up (Companies) – ITS PAYROLL LIMITED
Petitions to wind up (Companies) – MCKENNA STRUCTURAL ENGINEERING LTD
Petitions to wind up (Companies) – IGNITE PLUMBING SERVICES LTD LTD
Petitions to wind up (Companies) – BOWDEN CORPORATION LTD
Petitions to wind up (Companies) – A&R POWER LIMITED
Petitions to wind up (Companies) – TSIA LIMITED
Petitions to wind up (Companies) – FONE BOOTH LTD
Petitions to wind up (Companies) – IMPRINT APPLICATIONS LIMITED
Petitions to wind up (Companies) – DEVON GROUP LIMITED
Appointment of Administrator – REGENT QUARTER SUTTON LIMITED
Appointment of Administrator – BRADFIELD ROAD PROPERTIES LIMITED
Appointment of Administrator – RANDALL WATTS SPV 1 LIMITED
Appointment of Administrator – HANNINGFIELD PARK LTD
Appointment of Liquidators – P J DAVIS LIMITED
Appointment of Liquidators – RADICA EUROPE LIMITED
Appointment of Liquidators – ASTON CARTER LIMITED
Appointment of Liquidators – PPNL SPV B67 – 1 LIMITED
Appointment of Liquidators – LEYLAND MASONIC PROPERTIES LIMITED
Appointment of Liquidators – THREE KAY PROPERTIES LIMITED
Appointment of Liquidators – LAMBERT WELCH KITCHENS LIMITED
Appointment of Liquidators – PPNL SPV B67 LIMITED
Appointment of Liquidators – UPWARD ESTATES LTD
Appointment of Liquidators – EWG 24 LIMITED
Appointment of Liquidators – LINDENHOF HOLDINGS LTD
Appointment of Liquidators – ALNE WOOD PARK LIMITED
Appointment of Liquidators – IRHA LTD.
Petitions to wind up (Companies) – BRACKLEY BAR AND GRILL LTD
Petitions to wind up (Companies) – HOMEWARE LAND LIMITED
Petitions to wind up (Companies) – ARDA OUTDOORS LTD
Appointment of Liquidators – JK FRANCHISING LIMITED
Petitions to wind up (Companies) – COURIERPOINT LIMITED
Petitions to wind up (Companies) – SLENDER FIT LTD
Petitions to wind up (Companies) – THE PAIRC FESTIVAL LIMITED
Petitions to wind up (Companies) – ELITE CUISINE LIMITED
Petitions to wind up (Companies) – KKISS GIFTS LTD
Petitions to wind up (Companies) – COANDA AERONAUTICAL TURBINES LTD
Petitions to wind up (Companies) – STAASH ENTERPRISES LTD
Petitions to wind up (Companies) – QUALITY STATIONERY LTD
Petitions to wind up (Companies) – DEDA BUILDERS LTD
Petitions to wind up (Companies) – THE EYE ESTABLISHMENT HOLDINGS LTD
Petitions to wind up (Companies) – CAMBRIDGE SEMINARS COLLEGE LIMITED
Petitions to wind up (Companies) – BESPOKE COUTURE LIMITED
Petitions to wind up (Companies) – EOIN FLYNN LIMITED
Appointment of Liquidators – CREATIVE CARS & COURIERS LIMITED
Appointment of Liquidators – PIRWANI CONSULTANCY LIMITED
Appointment of Liquidators – MIDBRIDGE LIMITED
Appointment of Liquidators – L&D INSULATION SERVICES LIMITED
Appointment of Liquidators – MIDBRIDGE DEVELOPMENTS LIMITED
Appointment of Administrator – CASTLE & CRYSTAL CREDIT UNION LIMITED
Appointment of Liquidators – THE SPACE SHOREDITCH LIMITED
Petitions to wind up (Companies) – YORKS STEPHENSON STREET LIMITED
Petitions to wind up (Companies) – ANGELS CARE HOME LTD
Petitions to wind up (Companies) – DUCKLINGS TOY SHOP LIMITED
Petitions to wind up (Companies) – VENTROS SS HORSE TRUCKS LIMITED
Appointment of Liquidators – GABLE END DEVELOPMENTS 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!