Business news 23 September 2025

Today’s top UK business stories cover new tax proposals, high street job losses, financial scandals, and AI mega-investments. SMEs trading on credit should note policy changes that could affect costs, consumer demand, and credit risk.

James Salmon, Operations Director.

🛒Reeves’ tax plans risk higher food prices

Rachel Reeves faces criticism over plans to raise business rates for large shops, which retailers warn will push up food prices. Food inflation already stands at 5.1%, its highest in 18 months.
👉 Why it matters for SMEs: Higher food and retail prices can weaken household spending, hitting smaller suppliers and service providers.

💷Resolution Foundation: shift NI into income tax

The think tank proposes cutting employee National Insurance by 2p while raising income tax by 2p, plus lowering the VAT threshold to £30k. These measures could raise £8bn annually.
👉 Why it matters for SMEs: A lower VAT threshold would drag many small firms into the tax net, adding admin and squeezing margins.

🏬Bodycare to close all stores

Administrators will shut the last 56 Bodycare shops, with 444 job losses. More than 1,000 jobs have gone since the chain collapsed on 5 September.
👉 Why it matters for SMEs: Supplier debts may be left unpaid, highlighting retail fragility and credit risk in consumer sectors.

🪙Crypto crash wipes $1.5bn in bets

Bitcoin fell 2.9% to below $112,000 and Ether slid 9% to $4,075, triggering margin calls for 407,000 traders. The global crypto market dropped below $4tn.
👉 Why it matters for SMEs: Volatility may spook investors and tighten access to alternative financing channels for startups.

🅰️ℹ️AI risk fears revealed in poll

A TBI poll shows 38% of Britons see AI as an economic risk, versus 20% who see it as an opportunity. Analysts warn public scepticism could stall Starmer’s AI ambitions.
👉 Why it matters for SMEs: Trust barriers could slow adoption of AI tools that boost productivity and cut costs.

⚠️BMW sets aside £200m for finance scandal

BMW Financial Services has boosted its provision for motor finance mis-selling claims to £206.9m ahead of an FCA redress scheme.
👉 Why it matters for SMEs: Financial scandals damage trust in lenders, which can ripple into tighter credit for smaller firms.

💷Carillion creditors may finally see payouts

PwC may distribute funds to creditors of 23 Carillion subsidiaries. Many SMEs were devastated by the 2018 collapse that cost 30,000 businesses money.
👉 Why it matters for SMEs: A long-awaited reminder of the risks of relying heavily on large contractors for payment.

🛂PM weighs scrapping visa fees for top talent

Starmer is considering removing visa fees for leading scientists and digital experts, as part of efforts to attract global talent.
👉 Why it matters for SMEs: Could improve access to skilled labour and innovation partnerships at lower recruitment costs.

⚖️UK–US task force on digital assets regulation

The two governments launched a Transatlantic Taskforce to align rules on capital markets and crypto-assets. Recommendations are due in 180 days.
👉 Why it matters for SMEs: Clearer cross-border rules could boost fintech growth and confidence in digital payments.

⚖️Which? files insurance ‘super-complaint’

Which? has asked the FCA to crack down on delays and poor service in home and travel insurance claims, citing widespread consumer harm.
👉 Why it matters for SMEs: Insurance delays set worrying precedents; SMEs may face similar pushback on business claims.

🖥️Nvidia–OpenAI $100bn data centre deal

Nvidia will invest up to $100bn in OpenAI to build AI data centres, receiving equity in return. More than 700m people use OpenAI weekly.
👉 Why it matters for SMEs: Signals a coming wave of AI infrastructure that could lower costs and expand access to advanced tools.

🤖 AI sector faces $800bn revenue gap

Bain & Co warns AI firms will need $2tn in annual revenue by 2030 to cover computing costs but could fall $800bn short. Meanwhile, China’s Huawei has launched a three-year plan to overtake Nvidia in AI chips, raising competitive pressure.
👉 Why it matters for SMEs: A shake-up in AI business models could slow cost reductions and access to tools, while Chinese advances may reshape supply chains and pricing.

🌍 OECD warns on Trump tariffs

The OECD cautioned that the global economy has not yet absorbed the full effects of Donald Trump’s tariffs. The US is expected to slow next year, while Chinese manufacturers — squeezed out of the US market — are ramping up exports elsewhere, sparking alarm in Latin America and beyond.
👉 Why it matters for SMEs: A global trade squeeze could mean cheaper imports in the UK but tougher competition for domestic producers, especially in manufacturing and consumer goods.

📊 Market Snapshot (23 Sept 2025)

  • US: S&P 500 +0.4% (record high), Nasdaq 100 +0.6%, Dow +0.1%. Nvidia jumped 4%.
  • Europe: Stoxx 600 +0.4%, FTSE 100 +0.2% at 9,245.95. Eurozone private sector grows fastest in 16 months.
  • Commodities: Gold surged to $3,750/oz (record), oil fell for 5th day with Brent near $66.
  • FX: EUR/USD 1.1801, GBP/USD 1.3501, USD/CAD 1.3840. EUR/GBP at 0.8744, highest since July.

Gold continues its record-breaking rally to new highs above $3,750, while US equities hit fresh records driven by tech sector strength. European markets are benefiting from strong PMI data showing the fastest private sector expansion in 16 months, though oil continues its decline for the fifth straight day.

🕳 Insolvency Round-up (23 Sept 2025)

Administrators Appointed

  • The Blue Lion Hotel Ltd
  • Queni Koi Ltd
  • National Business Crime Solution Ltd
  • Odin Events Ltd

Liquidators Appointed

  • Precision Power Services Ltd
  • Txplus Consulting Ltd
  • Lanning Toogood Ltd
  • Lynteck Ltd
  • PSP DP Holdco Ltd
  • Glebe Cottage Developments Ltd
  • Luth Associates Ltd
  • Fox Logistic Services Ltd
  • Utopia Tableware Trading Ltd
  • Life Science Works Ltd
  • London VU Developments Ltd

Winding-up Petitions

  • Glenrothes Coachworks Ltd
  • Chapter 7 Whisky Ltd
  • Glasgow Secretarial Services Ltd
  • French Monkey Ltd
  • North West Utility Solutions Ltd
  • Renewable Micro Solutions Ltd
  • Gungho Midco Ltd
  • DPH Mechanical Ltd
  • CLC Rail Resources Ltd
  • DNA (UXB) Operator Ltd
  • Proventus Advisory Ltd
  • Cloisters Design Ltd
  • BMR Churchill Ltd
  • Kesee Ltd

💡 CPA Tip of the Day

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