Business news 25 February 2025
Net zero economy is flourishing. ISA Reform. Bank bonuses. International trade. Property, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Net zero economy is flourishing
The net zero sector is growing three times faster than the overall UK economy, according to Confederation of British Industry (CBI) analysis. The study shows that the net zero economy grew by 10% in 2024 and generated £83bn in gross value added – meaning net zero businesses account for 1.1% of the UK’s total GVA. It was also shown that 22,000 net zero businesses employ almost a million people in full-time jobs, while the average annual wage of £43,000 in these businesses is £5,600 higher than the national average. Louise Hellem, the CBI’s chief economist, said: “We are approaching critical points of no return for energy security and emissions reduction. It’s really fantastic to see the growing strength of the net zero economy in the UK and we need to really continue to see that ambition.” Energy Secretary Ed Miliband said that net zero is “ essential to growth, a strong economy and money in working people’s pockets.”
Reeves mulls ISA reform
The financial sector is divided over Rachel Reeves’ potential reforms to cash ISAs, with the Chancellor said to be considering reducing the annual tax-free limit from £20,000 to £4,000. Critics argue that cash ISAs are vital for many savers, with Robin Fieth from the Building Societies Association emphasising their role in funding loans. However, some experts, like James Norton from Vanguard Europe, warn that cash ISAs can hinder long-term investment growth, arguing that cash “is a drag on investment returns.” Currently, £300bn is held in cash ISAs, which have historically underperformed compared to stocks and shares ISAs.
Big bank bonuses pass £7bn
Bankers at Barclays, HSBC, Lloyds Banking Group, NatWest and Standard Chartered saw bonuses jump 5% in 2024, taking home a combined £7.1bn in bonus cash and shares. This comes after UK regulators decided to scrap the EU’s cap on bonuses. Luke Hildyard, director of the High Pay Centre think-tank, said the increase in bankers’ bonuses was “inevitable” once the cap was removed. He added: “This will strengthen the argument that addressing the extreme top incomes of bankers, chief executives and other high earners and distributing the UK’s wealth more evenly is crucial to revitalising our economy.”
International earnings set to outpace domestic revenue
Analysis by HSBC suggests that international earnings at the world’s fastest-growing companies are set to eclipse domestic revenue within the next five years. While a poll of 1,143 senior decision makers at companies with a revenue of between $18m and $5bn found that overseas revenue currently represents less than half of their income, this is expected to change by 2030. The report identified issues key to delivering international growth, including having the right network, capable local teams, favourable macroeconomic conditions and in-depth market knowledge. It also flagged the biggest challenges, pointing to areas such as regulatory and compliance issues and increased competition.
Pharmacies on brink of closure
The financial stability of UK pharmacies is under severe threat due to a “triple whammy” of rising costs, including a National Insurance hike set out in October’s Budget. The National Pharmacy Association reports that independent community pharmacies are facing an annual shortfall of approximately £100,000, with a total funding crisis amounting to £250m. Analysis shows that over 1,200 pharmacies have closed since 2017.
Markets
Yesterday, the FTSE 100 closed flat at 8658.98 and the Euro Stoxx 50 closed down 0.39% at 5453.76. Overnight in the US the S&P 500 fell 0.50% to 5983.25 and the NASDAQ fell 1.21% to 19286.93.
US stocks struggled for direction amid concerns that US President Donald Trump’s tariff plans and measures to restrict investments between the US and China will hurt global economic growth. Tech sales led the losses after a report that said Microsoft was cancelling several data center leases raised concerns regarding AI demand. Pharmaceuticals bucked the trend after a new strain of coronavirus was found in China.
European equities edge higher in early Tuesday trading as gains for the healthcare sector and defense stocks offset a drop for technology companies. European defense stocks rise after it is reported that Germany’s chancellor-in-waiting Friedrich Merz is in talks with the Social Democrats to approve up to €200 billion in special defense spending.
This morning on currencies, the pound is currently worth $1.2615 and €1.2055. On Commodities, Oil (Brent) is at $74.70 & Gold is at $2940. On the stock markets, the FTSE 100 is currently up 0.21% at 8677 and the Eurostoxx 50 is down 0.17% at 5444.
Bitcoin falls below $90,000 as the crypto slump continues.
The Office for National Statistics says the size of Britain’s trade surplus with the US is £71 billion which could prompt Trump to consider tariffs.
Donald Trump said tariffs due to hit Canada and Mexico next month were on time and “moving along very rapidly”
The US is sketching out tougher versions of its chip curbs against China and pressuring the Netherlands and Japan to escalate restrictions.
Tesla fell another $10 per share on press reports that US celebrities are ditching their Tesla’s and cancelling Cybertruck orders in protest at Elon Musk’s political entanglements and the recent sackings of key US civil service personnel and other key workers. A recent Electrifying.com poll found Elon Musk activities were discouraging them from buying a Tesla whilst 61% said they were considering a Chinese EV alternative.
Bucking the negative trend was Berkshire Hathaway jumped after strong earnings and an increase in cash reserves to US$334.2bn at 31st December 2024. The Sage of Omaha however did not repurchase Berkshire shares for the second consecutive quarter suggesting he is patiently awaiting a lower share price. However Buffett did modestly increase Berkshire’s Japanese equity interests.
Eurozone Inflation surged to 2.5% in January, marking the highest rate since July and remaining above the European Central Bank’s medium-term target of 2% for the third consecutive month.
The German Economy declined as anticipated in the fourth quarter of past year, data published by the Federal Statistical Office showed. German gross domestic product fell by 0.2% quarterly on a seasonally and calendar adjusted basis. It followed growth of 0.1% in the third quarter from the second.
The winner of Germany’s election, Friedrich Merz, suggested he could work with mainstream parties to loosen the country’s debt brake. Hard-right and hard-left parties could attempt to block efforts to reform borrowing rules.
Apple plans to open a new factory for artificial intelligence servers in Texas as part of a $500 billion investment in the US, the company said Monday. The US technology giant said it would work with partners to launch a 250,000-square-foot server manufacturing facility in Houston to produce servers for Apple Intelligence, its AI personal assistant for iPhone, iPad and Mac computers.
Government could face legal action over pensions
Ministers have been threatened with legal action unless they reconsider the decision to refuse compensation to women affected by an increase in the state pension age. The Women Against State Pension Inequality group is seeking payouts for 3.6m women who were not properly informed of changes and had to rethink their retirement plans. The parliamentary ombudsman last year recommended payouts of up to £2,950 each because of a delay in informing the women affected
Buyers rush to beat stamp duty change
Stamp duty receipts surged by £40m year-on-year in January, reaching £848m, as homebuyers hurried to complete purchases before tax changes come into force on March 31. The nil-rate threshold will drop from £250,000 to £125,000, significantly increasing costs for buyers, with stamp duty bills on an average-priced home set to more than double from £2,028 to £4,528. First-time buyers will also face a reduced relief threshold, while second-home buyers are already affected by a 5% surcharge. Experts warn that while the Treasury has gained £31.3bn from property taxes since September 2022, further tax hikes could negatively impact the market. Jonathan Stinton, head of mortgage relations at Coventry Building Society, said: “Buying a home is about to get a lot more expensive.”
74k buyers could miss deadline
Analysis from Rightmove shows that around 74,000 home buyers in England are expected to miss the stamp duty deadline on April 1, resulting in significant additional costs. The analysis reveals that over 25,000 first-time buyers and nearly 49,000 home movers will be unable to complete their purchases before threshold for stamp duty reverts to £125,000. Rightmove is advocating for a short extension to the deadline to alleviate the financial burden on those who will miss it.
1m homes up by a third
The number of UK homes valued at £1m or more has jumped by around a third over the past five years, data from Savills shows. The report shows a net increase of 3,127 more properties being worth at least £1m in 2024 compared to 2023. The number of homes valued at £1m or more now stands at 702,580, marking a 34% increase on the total recorded five years ago. While one in every 42 homes in Britain is valued at £1m-plus, in London the rate stands at one in every 11.
Women make up 43% of boards
According to the latest FTSE Women Leaders Review, women now hold 43.4% of board positions at FTSE 350 companies, a rise from 42.1% in 2023. The report, sponsored by Lloyds Banking Group and KPMG, shows that women occupied 1,275 board roles and 6,743 leadership positions last year. Despite this progress, the number of female chief executives in the FTSE 350 has fallen to 19 from 20 in 2023. The UK ranks second in the G7 for female board representation, trailing France, which has implemented quotas to achieve 45.4% female representation. Lady Gustafsson, the Minister for Investment, said that the report “shows that while the momentum is with us, we have so much further to go.” Chancellor Rachel Reeves commented: “The UK is leading the charge for gender equality in boardrooms, but we cannot rest on our laurels.” She added: “We must break down the barriers that stop many women being represented in decision-making roles, so that top talent reaches the highest levels of leadership in businesses driving economic growth across Britain.” Vivienne Artz, chief executive of the FTSE Women Leaders Review, said that although FTSE 350 company boards are now gender-balanced, “sustained effort and determination” is required to achieve the 40% target for women in leadership by the end of this year.
VFX firm Technicolor collapses in UK
Visual effects firm Technicolor, which was founded in 1915, has collapsed into administration in the UK. The firm’s directors had been looking to sell the business but were not able to find a buyer. Administrators say “the majority” of the more than 440 people Technicolor employed in the UK have been made redundant.
Latest Insolvencies
Petitions to wind up (Companies) – WITNEY GRAIN LIMITED
Appointment of Administrator – KEIGHLEY FURNITURE PROJECT
Appointment of Administrator – JAMIESONS DRY CLEANERS LIMITED
Appointment of Administrator – H.A.C. PIPELINE SUPPLIES LIMITED
Appointment of Administrator – MEDICAL PIPED GASES LIMITED
Appointment of Liquidators – JKL & ASSOCIATES LIMITED
Appointment of Liquidators – WALNUT PROFESSIONAL LIMITED
Appointment of Liquidators – OBEROI BROTHERS LIGHTING LIMITED
Appointment of Liquidators – VOST LTD
Appointment of Liquidators – RIDGWAY CONSULTANCY LTD
Appointment of Liquidators – BREAKTHROUGH INNOVATIONS LTD
Appointment of Liquidators – SHAH CONSULTING SERVICES LIMITED
Appointment of Liquidators – OPAL ACTUARIAL LTD
Appointment of Liquidators – FOOD PACKAGING RESOURCE LIMITED
Appointment of Liquidators – TAYGETUS LTD
Appointment of Liquidators – SLADE BIOLOGICS LTD
Appointment of Liquidators – M A JOHNSON LIMITED
Appointment of Liquidators – SEVEN ACRES CONSULTING LTD
Appointment of Liquidators – DPJ TECHNOLOGY LIMITED
Appointment of Liquidators – CARLTON BUILDERS (EAST ANGLIA) LIMITED
Appointment of Liquidators – UGAM INTERNATIONAL LIMITED
Appointment of Liquidators – THE SCANDINAVIAN PINE COMPANY LTD
Appointment of Liquidators – BEXLEY HEALTHCARE SERVICES LIMITED
Petitions to wind up (Companies) – PINNACLE LIFE LIMITED
Petitions to wind up (Companies) – ZEDEK LI LIMITED
Appointment of Liquidators – PROXSYS LIMITED
Petitions to wind up (Companies) – ONORACH LIMITED
Petitions to wind up (Companies) – BOSS GROUNDWORKS LTD
Appointment of Liquidators – FOURTWENTYSEVEN DESIGN LTD.
Appointment of Administrator – HOOD PROPERTY CARDRONA LTD
Petitions to wind up (Companies) – EAST COAST HERITAGE LIMITED
Appointment of Liquidators – SKYE EXPRESS PARCELS LIMITED
Appointment of Liquidators – SELLECT LTD.
Appointment of Liquidators – GCMC CONSULTING LIMITED
Appointment of Administrator – ACHESON CONSTRUCTION LIMITED
Appointment of Administrator – TRITIUM TECHNOLOGIES LIMITED
Appointment of Liquidators – INSPIRE (SOLIHULL) LIMITED
Appointment of Liquidators – HOPE VALLEY INDUSTRIAL HOLDINGS LIMITED
Petitions to wind up (Companies) – RIDEL LIMITED
Petitions to wind up (Companies) – CANTERBURY HCW LTD
Petitions to wind up (Companies) – MAGNUS LLOYD INTERNATIONAL LIMITED
Petitions to wind up (Companies) – OPET SOLUTIONS LTD
Petitions to wind up (Companies) – PRO ESTATES UK LIMITED
Petitions to wind up (Companies) – OVIDIU PATRAU LTD
Petitions to wind up (Companies) – D G DRAUGHTING LIMITED
Appointment of Liquidators – M. SEGAL (MOTOR TRIMMINGS) LIMITED
Appointment of Liquidators – JSC PIPEWORK & MECHANICAL SERVICES LTD
Appointment of Liquidators – S2 PROFESSIONAL SERVICES LTD
Petitions to wind up (Companies) – EHS LONDON LTD
Appointment of Liquidators – SITUS CONSULTING LTD
Appointment of Liquidators – TRINITY INTEGRATED SYSTEMS LIMITED
Petitions to wind up (Companies) – EXPRESS COMMERCIALS NORTH EAST LIMITED
Appointment of Administrator – ENINCO TRADING SERVICES LTD
Appointment of Liquidators – BROOKFIELD TECHNICAL LIMITED
Appointment of Liquidators – SEVEN WAYS (SUPPORT) LIMITED
Petitions to wind up (Companies) – BEAUTY HEALTHCARE 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!