Business news 26 March 2025
Tax raid on the horizon. Small businesses to pass on tax hike costs. New powers for fair work agency, retail, rates, 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.
£36bn tax raid on the horizon
Next week will see £36bn in tax increases, with a hike in National Insurance, a freeze on income tax thresholds and a rise in stamp duty all coming into force. Shadow Business Secretary Andrew Griffith said: “There’s no amount of preparation to help anyone be ready for the £36bn tidal wave of tax and similar increases breaking over the heads of businesses and households,” while shadow Chancellor Mel Stride said “reckless tax rises are a ticking timebomb” and accused Labour of breaking a promise to not raise taxes for working people. The tax changes will see employer National Insurance increase from 13.8% to 15% while the threshold falls from £9,100 per year to £5,000. The £36bn will also include increases to the windfall tax and a higher interest rate on overdue tax bills. Darwin Friend, head of research at the TaxPayers’ Alliance, said the tax rises “will place a significant burden on hard-working families and businesses,” and Anna Leach, chief economist at the Institute of Directors, has warned that the “overall rise in the tax burden transfers resources out of the productive private sector into the poorly performing public sector.”
Small businesses to pass on tax hike costs
Research from Grant Thornton shows that 71% of SMEs plan to pass rising employment costs onto consumers, with this a 15% increase from a poll in December. With employers’ National Insurance contributions and minimum wages increasing, around seven in ten businesses plan to reduce or freeze hiring in the next six months. Despite concerns over rising costs, 85% of SMEs are optimistic about their revenue growth over the next six months.
B&Q owner urges tax rethink
Kingfisher, the owner of B&Q, has urged the Chancellor to reconsider proposed tax increases for employers, citing a potential £45m rise in UK costs due to higher National Insurance contributions and packaging taxes. The upcoming minimum wage increase and anticipated higher business rates further complicate the financial landscape for retailers.
Co-op CEO calls for rates reform
Rachel Reeves has been urged to reform the business rates system. Co-op chief executive Shirine Khoury-Haq has called on the Chancellor to avoid increasing property levies as retailers face a £7bn rise in costs, saying: “There is a real danger that we do see our high streets starting to die off, and we can’t let that happen.” With looming increases in business rates many small shops could see bills rise by 140% in April.
Reeves set to deliver £2.2bn defence boost
Chancellor Rachel Reeves is set to announce a £2.2bn increase in defence spending during her Spring Statement, emphasising the need for the UK to “move quickly in a changing world” amid global uncertainties. While ruling out tax rises, Ms Reeves will detail significant welfare cuts, totalling £5bn, marking the largest reduction in a decade. Meanwhile, the Office for Budget Responsibility is expected to lower its growth forecasts, halving a previous projection that the economy would increase by 2% in 2025.
New powers for fair work agency
The Fair Work Agency (FWA) is set to gain significant enforcement powers under the Employment Rights Bill, allowing officers to enter homes and seize documents during investigations. This has raised concerns among businesses, with Craig Beaumont from the Federation of Small Businesses saying: “Firms want help to grow, not Captain Clipboard walking into their business premises and homes.” The bill, which is currently under scrutiny in the House of Lords, will enable the FWA to compel interviews and conduct searches, mirroring powers typically reserved for police. Critics, including Alex Hall-Chen from the Institute of Directors, have expressed alarm over the “unprecedented powers” granted to the FWA, urging clarity on its intended use. The legislation also introduces various worker protections, including a ban on zero-hour contracts and enhanced rights for flexible working.
Retail sales drop in March
Retail sales fell “markedly” in the year to March, with the Confederation of British Industry’s (CBI) monthly gauge of retail sales falling to -41 from -23 in February. This marks the lowest reading since July last year on a survey which measures the proportion of retailers who have reported an increase, or a decrease, in sales. Martin Sartorius, principal economist at the CBI, said global trade tensions and the impact of October’s Budget “are weighing on consumer and business confidence, which is leading to reduced demand.”
Markets
Global stock markets slipped as investors awaited more clarity on US tariff plans and the economic outlook before President Donald Trump’s 2nd April deadline to impose a fresh set of tariffs.
The pound fell and gilts climbed after UK inflation unexpectedly cooled to 2.8% (it had been 3% in January and was expected to be 2.9% in February), strengthening the case for the Bank of England to cut interest rates again in May. It’s a morale boost for Chancellor of the Exchequer Rachel Reeves ahead of a key economic statement today.
Women see higher insolvency rates
Women in England and Wales have experienced a higher rate of financial insolvency than men for over a decade, with the rate reaching 26.5 per 10,000 adults in 2024, compared to 22.1 for men, according to the Insolvency Service. This trend has persisted for 11 consecutive years, with women more likely to have debt relief orders or individual voluntary arrangements, while men are more prone to bankruptcy. Simon Trevethick, head of communications at StepChange, noted that “women have a higher average expenditure and a lower average income than men,” which complicates their financial situations.
Triple lock fear over pension tax
Campaigners have cautioned ministers against taxing the state pension, labelling it a “fundamental mistake.” Dennis Reed, director of Silver Voices, presented a petition with over 117,000 signatures to Downing Street, expressing concerns that older individuals on modest incomes may face taxation due to the triple lock increasing pensions while thresholds remain frozen. Mr Reed said that “six hundred thousand older people were brought into the tax system last year because the thresholds are frozen… It’s outrageous.” The personal allowance is set at £12,570 until 2028, while the new state pension will rise to £11,973 next month.
Latest Insolvencies
Appointment of Administrator – HOXTON SPIRITS HOLDINGS LIMITED
Appointment of Administrator – HOXTON SPIRITS OPERATIONS LIMITED
Appointment of Administrator – HRC NEWCASTLE LIMITED
Appointment of Administrator – INDUSTRIAL POLYTHENE LIMITED
Appointment of Liquidators – PENSIGA LTD
Appointment of Liquidators – FORTUM RATCLIFFE LIMITED
Appointment of Liquidators – MAPLEHURST ADVISORS LIMITED
Appointment of Liquidators – PALLADIUM GROUP OF COMPANIES UKEIG
Appointment of Liquidators – JCGT1 LTD
Appointment of Liquidators – SEDA AEROSPACE HOLDINGS LIMITED
Appointment of Liquidators – GRACETTE LIMITED
Appointment of Liquidators – VINGENAI LIMITED
Appointment of Liquidators – DELIVERY I LIMITED
Appointment of Liquidators – BROCKMAN & ICKE LTD
Appointment of Liquidators – DEREK MORTIMER LTD
Appointment of Liquidators – STOLEN PICTURE LTD
Appointment of Liquidators – NEERAX LIMITED
Appointment of Liquidators – INTERSECTION VENTURES LIMITED
Appointment of Liquidators – BEITH SALES CONSULTING LIMITED
Appointment of Liquidators – THAMES VALLEY TELECOM LTD
Appointment of Liquidators – STEPHEN BOYCE LIMITED
Appointment of Liquidators – DRAGON TREE COMMODITY TRADING LIMITED
Appointment of Liquidators – TKGC CONSULTING LTD
Appointment of Liquidators – CBO SEARCH LIMITED
Appointment of Liquidators – RESELITE LAW LIMITED
Petitions to wind up (Companies) – RBG LEGAL SERVICES LIMITED
Petitions to wind up (Companies) – CRAIG SEIVWRIGHT ELECTRICAL LTD
Petitions to wind up (Companies) – WILSON DISTRIBUTION LTD
Appointment of Liquidators – XORBI LTD
Petitions to wind up (Companies) – ALLEN COWE BUILDERS (SKYE) LIMITED
Appointment of Liquidators – UK250 HOLDINGS LIMITED
Petitions to wind up (Companies) – BLEU CONSTRUCTION LTD
Appointment of Liquidators – PHIL SWASH LTD
Appointment of Liquidators – ELMA DIGITAL LTD
Appointment of Liquidators – ACA94 CAPITAL LTD
Appointment of Liquidators – ACORN OAK LIMITED
Appointment of Liquidators – SUPERLATIVE DIGITAL SERVICES UK LIMITED
Appointment of Liquidators – SEVIRO LTD
Appointment of Liquidators – KRISHNA TECHNOLOGIES LTD
Appointment of Liquidators – ELOLIVER CONSULTING LTD
Appointment of Liquidators – AUSTRALIS ENERGY LTD
Appointment of Liquidators – ADEAM LTD
Appointment of Liquidators – AMSHAM CAPITAL LTD
Appointment of Liquidators – SEA POINT CONSULTANCY 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!