Business news 26 June 2025
Labour unveils £85bn trade strategy. Tax rises paralysing British businesses. Graduate jobs hit 7-year low. Bleak outlook for household incomes. Cost of living crisis deepens. Markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Labour unveils £85bn trade strategy
Sir Keir Starmer has introduced the UK’s first trade strategy in over 30 years. The strategy will unlock £5bn for businesses and increase UK export finance capacity to £80bn, as part of the Government’s Plan for Change. Starmer stated: “What works for business, works for Britain,” pointing to the importance of trade deals with the US, India, and the EU. The strategy also aims to enhance the UK’s status as a services superpower and improve access to global markets. The UK is also set to join the Multi-Party Interim Appeal Arbitration Arrangement, reinforcing its commitment to a rules-based trading system. Jon Holt, group chief executive of KPMG, commented: “Today we have a clear plan. From removing barriers to overseas markets, to making it easier for our highly skilled people to travel and work across borders, this approach will strengthen our connectivity, boost inward investment and make sure our sector remains globally competitive.”
Tax rises paralysing British businesses – BCC
Rachel Reeves has been cautioned that tax increases are “paralysing” British businesses, with one in three companies cutting jobs due to the £25bn National Insurance hike. Shevaun Haviland, head of the British Chambers of Commerce, urges the Chancellor not to raise taxes further, stating: “The Government needs to use the tax system to incentivise growth, not kill it.” A survey revealed that many businesses are rethinking growth plans due to the unexpected burden of increased National Insurance contributions. Eamonn Ives from the Entrepreneurs Network expressed concern over the lack of understanding from the Government regarding entrepreneurs’ needs. Finally, the Weil European Distress Index highlights that UK businesses are facing significant distress, with rising costs and falling confidence pushing firms to their limits.
Graduate jobs hit 7-year low
Recent data from Indeed reveals that graduate jobs in the UK have reached their “weakest level since at least 2018,” with postings down 12% compared to last June. The decline follows Chancellor Reeves’ £20bn increase in national insurance contributions, which has led employers to hesitate in hiring junior workers. The UK is now the only developed nation with job postings remaining below pre-pandemic levels, approximately 21% lower than in February 2020. Jack Kennedy, senior economist at Indeed, noted that while the labour market is “holding out overall,” new graduates are facing significant challenges in securing employment. The analysis also highlights a decrease in job postings for HR, marketing, and media, alongside a reduction in work-from-home opportunities.
Bleak outlook for household incomes
According to the Resolution Foundation, household incomes are projected to increase by a mere £300 by the end of the decade, with a “bleak” outlook driven by rising taxes and higher energy costs. The think tank forecasts a 1% growth in average household incomes from 2025 to 2030, while the poorest families may see a 1% decline in living standards. Adam Corlett, principal economist at the Resolution Foundation, said that the Government could improve living standards with “the right policy interventions,” such as lifting the two-child benefits cap. The report highlights that pensioners will benefit the most, with an expected income increase of £1,500 or 5%. However, the lowest-income households are projected to be 4% worse off by the decade’s end, exacerbated by rising costs and frozen benefits.
Cost of living crisis deepens
The latest British Social Attitudes study reveals that 26% of people are struggling to live on their current income, a significant increase from 16% before the pandemic. Professor Sir John Curtice from the National Centre for Social Research noted that voters are sceptical about Labour’s proposed solutions, however: “Rather than turning their back on the state, for the most part, the public are still inclined to look to government to provide solutions.” With inflation currently at 3.4% and food prices rising by 4.4%, many are feeling the pinch. Only 35% of the population now report living comfortably, a stark decline from 50% in 2018. The report highlights the growing discontent with high taxes and perceived poor value from public services, particularly the NHS.
Markets
Yesterday, the FTSE 100 closed down 0.46% at 8718.75 and the Euro Stoxx 50 closed down 0.85% at 5252.01.
Overnight in the US the S&P 500 was flat at 6092.16 and the NASDAQ rose 0.31% to 19973.55, lead by Nvidia who hit all times highs as it held its annual shareholder meeting. Reports from Microsoft, Meta, Alphabet and Amazon (Together, the 4 tech titans make up over 40% of Nvidia’s revenue) underline how the chip designer’s biggest customers continue to spend aggressively on building out their AI infrastructure. During the meeting, the CEO, Mr Huang said it would continue to grow because of the “multi-trillion-dollar opportunity” provided by artificial intelligence and robotics.
This morning on currencies, the pound is currently worth $1.375 and €1.725 with the US Dollar taking pounded after news emerged that Trump was considering announcing early the replacement for FED chair Jerome Powell. Testifying before the House’s financial-services committee, Jerome Powell said he would not favour cutting interest rates until at least September.
On Commodities, Oil (Brent) is at $67.65 & Gold is at $3342. On the stock markets, the FTSE 100 is currently up 0.1% at 8727 and the Eurostoxx 50 is up 0.15% at 5259.
Shell and BP
Shell Plc said it has no intention of making a takeover offer for BP Plc, reversing on previous reports that the two European Oil Majors were in active merger talks. The announcement kills speculation that the two would end up combining, following several years of poor performance from BP and rising pressure from activist shareholder Elliot Investment Management.
Chinese imports
Chinese companies have increased their shipments to Britain with exports of small parcels and electronics jumping to levels not seen in years as they adjust to high US tariffs. The wave of Chinese exports to the UK could have benefits such as lower inflation but also drawbacks such as undercutting domestic manufacturers. UK officials are monitoring for trade diversion effects and potential dumping on the market.
Defense
NATO Allies yesterday agreed to more than double their defense spending target from 2% of gross domestic product to 5% by 2035, in the most decisive move from the alliance in over a decade. In a joint declaration, the Western military bloc said it was “united in the face of profound security threats and challenges,” in particular the long-term threat posed by Russia to Euro-Atlantic security and the “persistent threat” of terrorism. Britain will purchase at least 12 F-35 stealth fighter jets capable of carrying nuclear warheads, marking its most substantial nuclear capability upgrade in decades. This represents a boost for BAE Systems which makes a substantial portion of the components, including fuselage, targeting systems and ejector seats.
AI
A federal judge in the US ruled that Meta’s use of books to train its artificial-intelligence models did not violate any copyright law, a day after another court came to a similar decision in favour of Anthropic, a rival AI firm. Several authors had filed the lawsuit against the tech giant, but the judge said they had failed to present sufficient evidence.
Online dating
Bumble, an online dating platform, said it would cut its workforce by 30% to save around $40m in annual costs. Match, a rival, recently announced staff cuts of 13%. Dating apps, which wooed huge numbers of users during the late 2010s, have failed to attract Generation Z.
Halfords to close garages amid tax hikes
Halfords has announced plans to close several garages due to rising labour costs linked to Rachel Reeves’ tax hikes. The company stated that the closures are a response to the increased financial burden from last year’s Budget, which has already added £23m to its wage bill. Despite reporting an 11% profit rise to £38m for the year ending March 28, Halfords is cautious about the consumer outlook, with CEO Henry Birch noting: “The negative outlook for employment and the impact of geopolitical instability continue to weigh on confidence.” The company has already confirmed closures in Berwick and Broughty Ferry, with most staff expected to be redeployed. Halfords operates 373 stores and over 540 garages, with sales rising 2.5% to £1.72bn.
Wealth exodus puts pressure on Reeves to impose exit tax
As the wealthy flee high-tax UK experts predict that the Labour Government could introduce an exit tax, as countries such as Germany, Norway and Belgium have done. A report by Henley & Partners predicted that a net 16,500 millionaires will leave Britain this year, up from 10,800 in 2024. Chris Etherington of RSM said previous governments have not been concerned about the number of businesses and wealthy individuals leaving the country. However, if the Chancellor raises capital gains tax further, prompting even more people to leave, the pressure on Rachel Reeves to implement an exit tax would increase.
Non-dom U-turn could revive London property market
Edward Matthews, CEO of Mera Investment Management, says reversing Labour’s extension of inheritance tax (IHT) on global assets could lead to the revival of London’s prime property market. He argues that a pragmatic tax reversal would signal that the UK is “once again open for business,” essential for reclaiming its status as a global safe haven. The market may bounce back if the UK fosters a stable fiscal environment prioritising long-term investment.
Motor insurers face tough times ahead
UK motor insurers are projected to break even this year but are expected to incur losses in 2026, according to analysts at EY. They predict that heightened competition and rising claims inflation will hinder profitability, with a net combined ratio of 100% in 2025 and 107% in 2026. EY anticipates a 6% drop in premiums in 2025, followed by a 5% increase in 2026, translating to a £10 saving for motorists over two years. Dan Beard, UK insurance partner at EY, said: “Following just one year of underwriting profitability in the last three, UK motor insurers are once again bracing for challenge in an increasingly uncertain market.”
Bitfinex launches £100m token for litigation finance
Bitfinex Securities has announced a £100m direct listing of tokenised equity, named TITAN2, aimed at financing litigation for motor finance claims. Investors will proportionately share in the claims recovery, with the vehicle managed by a Luxembourg special-purpose entity. The announcement precedes a crucial ruling from the UK Supreme Court regarding the motor finance sector, which could significantly impact the industry. Bitfinex also had a £5m listing of a crypto token, known as TITAN1, for investments in regulatory capital for a UK-based credit union. Jesse Knutson, Head of Operations at Bitfinex Securities, said: “The respective listings offer investors an attractive return in combination with the opportunity to diversify their existing portfolios with exposure to digital assets.”
Accountancy students ditch Big Four dreams
Recent data from Intuit reveals that 75% of accountancy students aspire to launch their own businesses rather than pursue traditional roles in Big Four firms. The survey of 500 students indicates that young people, particularly those aged 20–24, view accountancy as a pathway to entrepreneurship. Grace Hardy, founder of Hardy Accounting, remarked: “Accountancy gets labelled as male, pale and stale — but for people my age, that’s not the vibe at all.” The desire for business ownership is particularly strong among female students, with 73% aiming to establish their own companies. However, challenges remain, including work-life balance and the high cost of qualifications. James Wright, a senior lecturer, stressed the need for the profession to address these barriers as it becomes increasingly attractive to students and career-changers.
Armalytix launches new tools for insolvency professionals
Armalytix has expanded its insolvency offering with the launch of a fully integrated Identity Verification Service and the industry’s first instant bank statement scanning and analysis solution. Tony Walker, Head of Insolvency at the fintech, commented: “Helping insolvency practitioners operate faster and smarter is a key focus for us. Whether it’s verifying a director’s identity or understanding historical financial activity.”
Wright-Phillips faces bankruptcy battle
Former England international Shaun Wright-Phillips has been issued a bankruptcy notice by HM Revenue and Customs, raising concerns about his financial stability. The 43-year-old, who retired from football in 2019, has since worked as a sports commentator for major broadcasters including BBC and Sky Sports. A representative stated: “Shaun is not aware of this and matters are already with his accountant who is fully versed in Shaun’s affairs.”
Latest Insolvencies
Petitions to wind up (Companies) – G & M BUILDERS LIMITED
Appointment of Administrator – WOOD LOGISTICS & LIFTING LIMITED
Appointment of Administrator – PLM GLOBAL LIMITED
Appointment of Administrator – HERBERT RETAIL LIMITED
Appointment of Liquidators – HAMMONDCARE INTERNATIONAL LIMITED
Appointment of Liquidators – A.W. LASHFORD & SON LIMITED
Appointment of Liquidators – CENTRE FOR AI & CLIMATE LTD
Appointment of Liquidators – HAMMONDCARE UK AND EUROPE LIMITED
Appointment of Liquidators – FINNISH FIBREBOARD (UK) LIMITED
Appointment of Liquidators – PURPLE PATCH TRADING LIMITED
Petitions to wind up (Companies) – CAPITAL BRANDS LIMITED
Appointment of Liquidators – STOCS GLOBAL HOLDINGS LIMITED
Appointment of Liquidators – DI GLOBAL LIMITED
The following companies have been issued a Winding Up Petition and the Notice has appeared in “The London Gazette”
SPHERE SALARIES LIMITED
OTR TEAM LIMITED
CROSS UK PROPERTIES LIMITED
O2C TRANSFORMATION SERVICES LIMITED
KNCUK LTD
ABBEY CAR HIRE (S.E.) LIMITED
BIRMINGHAM INNS LIMITED
LOWCOST MONEYTRANSFER LIMITED
SMALL IT SERVICES LIMITED
WHARFEDALE COMMERCIAL SERVICES LIMITED
SURVIVAL DEPOT LTD
ABEL BOWMAN & CO LIMITED
PANO PROPERTIES LIMITED
CITYGATE HOUSING LTD.
INTERNATIONAL NURSING LTD
CORE FITOUT LTD
MINGO CONSTRUCTION CONSULTANTS LIMITED
TRUSTED ADVISORY GROUP LIMITED
TEST EXPERT SOLUTIONS LIMITED
UNITED EDUCATION PROJECTS LIMITED
ATELIE DA LINGUICA LIMITED
GRINDLOW LTD
THE SEMIOTIC ALLIANCE (LONDON) LTD
LA GRAND COTTAGE LTD
EUNICKCARELTD LTD
VELLEYEN CONSTRUCTION LTD
THE INVICTA HOTEL LIMITED
TEESDALE STRUCTURES LTD
TYMZ GROUP LTD
SKYWAY (BIRMINGHAM) LIMITED
SEARCHDATA GROUP LIMITED
M CLAYTON TRANSPORT LTD
PEGASUS SURVEY SOLUTIONS LTD
DNA4X4 LTD
HAWKFIELD HOMES (SHIREHAMPTON) LTD
EPSOM GLASS AND MIRRORS LIMITED
DIGITALWORKSCO LTD
MARKET9 WHOLESALE UK LTD
ACHILLES ION GABRIEL LTD
SP4 GROUP 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!