Business news 25 March 2025
Some of the 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.
Chancellor urged to fix ‘unintended consequences’ of Budget
Tom Shave, president of the Europe and Asia-Pacific division at tax services firm Ryan, says the Chancellor must use the Spring Statement to fix the “unintended consequences” of October’s Budget. While he expects Rachel Reeves’ statement will “be more of an economic update focused on spending cuts rather than tax changes,” he argues that it offers an opportunity to “develop a more supportive environment for business and investment in the UK.” Mr Shave says “meaningful action is needed to ease the burden of taxation on businesses along with more growth-associated measures.”
PM: Spring Statement won’t ‘alter basics’
Sir Keir Starmer insists that the Spring Statement will not “alter the basics” of public spending plans. Saying that ministers want to “take some money out of government” and are “looking across the board” at spending, the Prime Minister added: “One of the areas that we will be looking at is, can we run the government more efficiently?”
Treasury urged to add growth to BoE remit
The Institute of Economic Affairs (IEA) think-tank has urged the Treasury to change the Bank of England’s remit to include growth. While the Bank’s mandate covers hitting an inflation target of 2% and setting interest rates, the IEA wants this remit to be expanded to cover total spending in the economy. Warning that the Bank’s inflation-targeting is “not fit for purpose,” IEA economist Damian Pudner said: “Targeting the growth path of nominal GDP would provide a more stable and predictable macroeconomic environment by focusing on total nominal spending rather than a rigid inflation target.”
Retail
The UK Retail Sector saw a declines in sales, a survey from CBI showed, with the fall blamed on weak consumer confidence. The CBI’s distributive trades survey found that retailers reporting the sharpest drop in sales volumes in eight months. The balance of retailer reporting lower sales volumes versus those reporting increases dropped for sixth month in a row.
PMI shows increased growth
The economy saw improved growth in March, according to the latest S&P Global flash UK composite PMI. The index hit 52 in March, up from 50.5 in February on an index where a figure above 50 represents growth. March’s reading was the highest since September and means there has been growth for seventeen consecutive months. While the services sector rose to a seven-month high of 53.2, the manufacturing index fell to a 17-month low of 44.6. Chris Williamson, chief business economist at S&P Global Market Intelligence, said: “An upturn in business activity in March brings some good news for the Government … offering a respite from the recent flow of predominantly downbeat economic data.” RSM UK economist Thomas Pugh said: “Overall, it seems like the domestic economy is now finding its feet after a stumble around the Budget,” but warned that weak global growth and uncertainty about US tariff policy is “dragging on total growth.”
Consumers not confident over the economy
A majority of UK consumers are not optimistic about the UK economy, according to a KPMG poll. Of 3,000 people surveyed, 58% felt the economy was worsening in the three months to the end of February, an increase of 15 percentage points from the three months to the end of November. While 43% said they are reducing their spending on everyday items, more than a third are saving more and 29% are deferring the purchase of big-ticket items.
Construction
Chancellor Rachel Reeves has vowed that £2 billion in grant funding to deliver up to 18,000 new homes in England will go some way to “fixing the housing crisis”. The funding is described by the government as a “down payment from the Treasury” ahead of longer-term investment in social and affordable housing expected to be announced later in the year.
Fintech leads tech hiring
Data shows that fintech firms are leading the way when it comes to hiring activity among UK startups and scale-ups. Fintech firms account for 21% of all UK companies recruiting for tech roles, adding 2,127 new employees over the last twelve months. AI followed, accounting for 12.5% of hiring activity and creating 1,630 new roles.
Mid-sized firms could add £745bn to the economy
Research by BDO suggests that mid-sized firms could add £745bn to the UK economy in the next three years. The report suggests that companies with revenues between £10m and £300m could make up nearly half of the UK’s expansion in GVA by 2028. The analysis also suggests that these firms, which represent less than 1% of all UK businesses, could also add an additional 1.9m jobs.
Small businesses hit by NI hike
A poll from insurance company Simply Business shows that almost one in five small business owners say they will be forced out of business within a year due to challenging economic conditions. A quarter of the 957 firms surveyed by Simply Business want the Chancellor to reverse an increase in National Insurance contributions, warning that higher costs will hit growth. On the impact of the tax hikes, 24% of small businesses have cancelled hiring plans and 16% have reduced employee’s hours, while 43% plan to increase prices.
Peers push back on NI hike
Peers in the House of Lords are intensifying efforts to obstruct plans to increase National Insurance contributions for health and social care workers. Ministers are set to hike employer NI from 13.8% to 15% and lower the earnings threshold from £9,100 to £5,000. Despite attempts to secure exemptions for hospices and care facilities, MPs have rejected the plans.
Tech sector hopes for tax boost
Tech sector leaders are advocating for targeted tax incentives and upskilling initiatives in the Spring Statement, with a Qlik survey revealing that 45% of UK businesses would reinvest savings from reduced corporation tax into AI.
Markets
UK markets were little changed on Monday, with a similar pattern of trading across mainland Europe. Investors reacted to a mixed basket of PMI reports, while also assessing the latest developments on the ‘Trump trade tariffs’. The UK services sector posted a strong reading, while the smaller manufacturing sector sank to an 18-month low.
Tariffs
Donald Trump said he would impose a 25% tariff on countries that buy oil or gas from Venezuela
Colliers: Business rates bill ‘poorly thought out’
Commercial real estate firm Colliers has warned that proposed legislation around business rates “has not been properly thought out.” The Non-Domestic Rates Bill will introduce a higher multiplier for business with a rateable value over £500,000, with the proceeds from this set to enable a lower rate for smaller businesses. John Webber, head of business rates at Colliers, said the reforms “will potentially add millions of pounds onto the rates bills of UK PLC – doing little to help grow the economy.”
IFS chief: Tax hikes have been ‘extraordinary’
Paul Johnson, director of the Institute for Fiscal Studies, says taxes are “rising by an extraordinary amount,” suggesting that the country has seen the “biggest period of raising taxes we have ever had.” He told BBC Radio 4’s Today programme that income taxes are rising “because we are having allowances and thresholds frozen for a very long period of time.” He added that this is “dragging more and more of our income into income tax, and that is why we have had this historically extraordinary increase in taxes over the last five years.” This increase, he added, is “continuing over the rest of this decade.” While Chancellor Rachel Reeves is not expected to announce tax changes in her Spring Statement, speculation surrounds potential tax measures in the next Budget. Some Labour MPs advocate for a wealth tax to offset welfare cuts, but Mr Johnson doubts the feasibility of such a move, noting global challenges in enforcing such levies.
Board members brace for takeover bids
Non-executive directors of UK companies are bracing for takeover bids, according to data by investment bank Peel Hunt, with 80% saying their companies are more vulnerable to being acquired. The poll saw 92% of non-executive directors say they are expecting an increase in takeovers of UK companies this year. It was also found that just 15% are sure they could confidently assess shareholder appetite for an offer if their firm was targeted for a takeover.
FCA to encourage savers to take more risk
The Financial Conduct Authority (FCA) is set to encourage retail investors to up their level of risk when managing their savings. Urging investors to look at “rebalancing” risk is expected to be a key part of the City watchdog’s new five-year strategy. This comes with the Government telling the regulator that it must support growth in the UK economy. Chairman Ashley Alder says the watchdog will support Government efforts to make regulators more growth-focused, saying the FCA will open fewer, more targeted investigations, but insisted that the pro-growth plan would not compromise consumer safety. Meanwhile, the City watchdog is also said to be considering changing its rules to ensure people receive clearer information from financial firms. This would make it easier for consumers to compare products.
Latest Insolvencies
Appointment of Administrator – LIPSYNC LLP
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Appointment of Liquidators – CALOMI HEALTH LIMITED
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Appointment of Liquidators – PGN CONSULTANCY SERVICES LTD
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Appointment of Liquidators – ALI CONSULTANCY LTD
Appointment of Liquidators – ACCORTO LTD
Appointment of Liquidators – GREEN SPARK INVEST LTD
Appointment of Liquidators – STERLING FINANCIAL CONSULTING LTD
Petitions to wind up (Companies) – SMILE MONEY LIMITED
Appointment of Liquidators – JASMIRO LIMITED
Appointment of Liquidators – TEAM ENERGY DEVELOPMENT LIMITED
Appointment of Liquidators – BRAIDBATTLE HOLDINGS LIMITED
Appointment of Liquidators – THE GARDEN DOCTOR (EDINBURGH) LIMITED
Appointment of Liquidators – DWL (CARDIFF) LIMITED
Winding up Order (Companies) – BESPOKE HOMESPACES LIMITED
Petitions to wind up (Companies) – JUST CAR SHOPS LIMITED
Appointment of Liquidators – MARTIN SILCOCK CONSULTING LIMITED
Appointment of Liquidators – R J WHITAKER LIMITED
Petitions to wind up (Companies) – ENZO’S DEVELOPMENTS LATEP LIMITED
Appointment of Liquidators – AP1500 LTD
Appointment of Liquidators – MDU HOLDCO LTD
Appointment of Liquidators – CONSULTING LEADER LTD
Appointment of Liquidators – SQUARE ONE LODGING LTD
Petitions to wind up (Companies) – AFTERCARE DISTRIBUTION 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!