Business news 26 August 2025
A bumper crop of headlines after the bank holiday weekend. The economy, jobs, taxes, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
🏦 Growth and workforce issues present an ‘acute challenge’
The governor of the Bank of England has warned that Britain faces an “acute challenge” from weak economic growth and a decline in the number of people in employment since the pandemic. Speaking at a US Federal Reserve conference, Andrew Bailey said the Bank has turned its focus away from long-term trends in unemployment and is instead looking at levels of labour force participation. Data shows that 21% of Britons aged 16-64 were neither in work nor actively seeking a job in Q2, with this down on a peak of 22.2% recorded in 2024 but above the 20.3% seen pre-pandemic. Analysis shows that mental health issues are the most common reason for being inactive, something Mr Bailey described as a “very concerning development.”
💡Director ID checks may cost firms ‘tens of millions’
Business leaders could end up spending vast sums to comply with laws designed to prevent fraud, with third-party firms charging up to £250 to help directors navigate Companies House’s new ID verification process. As of November, company directors must verify their identities before their firm’s annual confirmation statement, with those failing to do so potentially facing fines, disqualification or being struck off the register. Cindy van Niekerk, head of ID service Umazi, said: “We are seeing third-party providers charging anywhere from £45 to £250 per verification. Multiply that across six to seven million directors and the bill could run into the tens of millions.”
🏬Businesses face £2.5bn property tax hike
Businesses in England are set to be hit with a £2.5bn rise in property tax payments next year as both inflation and policy changes drive up costs, according to analysis by tax firm Ryan. Business rates, which are based on the value of commercial properties, will increase in line with September’s consumer price index, with inflation expected to reach 4%, adding around £1.11bn to bills. In addition, from April 2026 a new supplementary multiplier of up to 10p will apply to properties with a rateable value above £500,000, shifting about £1.38bn of government-funded discounts onto larger occupiers. It is estimated that this will affect 17,000 properties nationwide. Alex Probyn of Ryan said: “The 2026 revaluation itself is a redistribution exercise, but when you layer on both inflation and the new supplementary multiplier, businesses are left staring down the barrel of an unavoidable double hit.” He argues that larger occupiers “will shoulder a disproportionate burden.” He notes that the UK already has the highest property taxes in the developed world, before warning that the £2.5bn increase “risks undermining the UK’s competitiveness at a critical time for the economy.”
👤Young workers warn of WFH isolation
A survey of 8,000 UK workers shows that four in ten 16-to-24 year olds have become unhappy while working from home, saying they feel lonely or socially isolated. The poll by health insurance firm Bupa shows that 45% of young adults are considering moving to roles that provided more social interaction, compared to 27% of workers across all age groups. Ben Harrison, director of the Work Foundation, said: “Young people’s experience of work has shifted significantly in recent years,” adding that “the rapid introduction of new technologies and a rise in hybrid and remote working practices can risk many young people feeling disconnected from their colleagues and employer.”
🤨Entry-level jobs hit five-year low
Entry-level job listings in the UK have fallen to a five-year low, according to recruitment firm Adzuna’s latest job report. Listings for graduate roles, apprenticeships and other junior positions fell by 6.8% to 209,778 in July and these roles now represent just 21.9% of all vacancies, marking the lowest proportion in half a decade. While graduate positions increased slightly month-on-month in July, they are down by more than a quarter year-on-year. The decline comes after increases to employer National Insurance and the minimum wage drove up workforce costs, with it also noted that companies are increasingly utilising AI for tasks typically handled by junior staff.
👥Hospitality sector sees ‘staggering’ job losses
Of all the job losses recorded since last October’s Budget, the hospitality sector has accounted for more than half (53%), according to analysis by trade body UKHospitality. The report highlights that bars, restaurants, hotels, and pubs have been severely affected by a £25bn increase in National Insurance contributions and a rise in the minimum wage. Data shows that close to 89,000 roles have been shed in the industry over the last nine months. UKHospitality chair Kate Nicholls described the rate of job losses as “staggering,” adding that sector “has been by far the hardest-hit by the Government’s regressive tax increases.” The organisation is calling for urgent measures in the upcoming Budget, saying cuts to business rates and VAT could help prevent hospitality businesses “being taxed out of existence and to reverse the damage.”
🍷Hospitality firms call for tax rethink to cut costs
Kate Nicholls, chief executive of UKHospitality, says the industry is set to see job losses and closures as costs climb, with the hike in employer National Insurance among issues that have added to pressure on the sector. Ms Nicholls said the trade body wants to see “urgent action” in the upcoming Budget – including cuts to business rates and VAT – in an effort to “stop hospitality businesses being taxed out and to reverse the damage done by increased taxes.” Data shows that 89,000 jobs have been cut in restaurants, bars, pubs and hotels since the Budget last October, with this representing 53% of overall job losses in the period.
🛍️Prices climb as cost hikes hit retailers
Prices in British shops are rising at the fastest pace for more than a year and are 0.9% up on a year ago, according to the British Retail Consortium (BRC). The increase comes as retailers pass on additional costs to consumers, with the Government having hiked both employer National Insurance contributions and the minimum wage. The industry estimates that measures set out in last October’s Budget have cost it £7bn. Helen Dickinson, chief executive of the BRC, said: “Retailers continue doing everything they can to limit price rises for households, but the £7bn in new costs flowing through from last year’s Budget has created an uphill battle.” The Retail Jobs Alliance has warned that up to 300,000 jobs could be lost across the sector by 2028, including 40,000 held by workers aged between 16 and 24.
👮Bosses call for worker assault law
Business leaders have urged ministers to make the assault of any public-facing worker a standalone offence. While the Crime and Policing Bill has proposed making assault of a retail worker a new specific offence, corporate leaders say the legislation should cover all sectors. The Institute of Customer Service says there has been a sharp rise in abusive incidents aimed at employees. The professional body found that 43% of customer-facing workers have experienced customer hostility over the past six months, with this a 20% rise on the year before, while 37% are considering leaving their jobs due to aggressive customer behaviour. The institute notes that around 60% of the UK’s workforce are in some form of customer-facing role.
🗽Trump hits UK business with stealth tariffs
The US Government has stunned British manufacturers by imposing stealth tariffs of up to 25% on more than 400 new product categories entering the US. The move was slipped out by the Department of Commerce after lobbying from American steel producers. In May, the UK and US agreed a trade deal which included cutting a 25% tariff rate on British steel and aluminium exports to zero. When the US raised other countries’ tariffs to 50% in June, UK exports remained at 25%. Craig Beaumont, executive director at the Federation of Small Businesses, said the “expansive product restrictions were due to be permanently resolved in post-deal negotiations by now.” He added that UK and US negotiators “must buckle down quickly and do that.” Peter Brennan, director of trade and economics policy at UK Steel, said: “This is dragging on, and we need some resolution, because it is causing increasing damage.”
📈Markets
📈On Friday, the FTSE 100 closed up 0.13% at 9321.40 and the Euro Stoxx 50 closed up 0.48% at 5488.23.
At the Jackson Hole Symposium US Federal Reserve Chairman Jerome Powell said the ‘impact of tariffs on consumer prices are visible with near term risks to inflation to the upside’ and the US economy has faced new challenges in 2025. ‘Shifting risks may warrant adjusting policy however neutral rates may be above those of the 2010s’ . US equities interpreted the Powell speech as interest rates would be cut however the timing of such cuts was left open.
Over in the US the S&P 500 fell 0.43% to 6439.32 yesterday and the Composite NASDAQ fell 0.22% to 21449.29.
The US dollar has moved lower in response to the Trump Administration move to fire Federal Reserve Governor Lisa Cook on an issue that had been disclosed in her pre-appointment hearings before the US Congress.
💱This morning on currencies, the pound is currently worth $1.346 and €1.1595 .
On Commodities, 🛢️Oil (Brent) is at $68.26 & 💰Gold is at $3376.
French indices are lower today after French PM Bayrou called for a confidence vote to be held on 8th September with the aim of obtaining parliamentary backing for spending cuts.
British Retail Consortium said staple foods, including eggs, butter and chocolate rose sharply with food inflation rising to 4.2% in August. Non-food items fell 0.8% in the year to August. Overall shop prices increased by 0.9% in August.
📈On the stock markets, the FTSE 100 is currently down 0.6% at 9264.5 and the Eurostoxx 50 is down 0.9% at 5396.
🏠UK tops EU property tax rankings
The UK has emerged as the country with the highest property tax in Europe, collecting £114bn in 2023. This figure significantly surpasses the EU average of £11.8bn. The Government has increased taxes on second homes and buy-to-let properties, with Chancellor Rachel Reeves considering changes to stamp duty for homes over £500,000. The UK’s property tax accounts for 3.7% of GDP, exceeding the European average of 1.9%. According to the OECD, the UK leads in multiple property tax categories, highlighting its substantial revenue generation from this sector.
🚜Reynolds to meet JCB boss over US tariffs
Business Secretary Jonathan Reynolds is to meet with JCB chief executive Graeme Macdonald to discuss the impact of new US tariffs on British businesses. Mr Macdonald has urged ministers to get a “deal done quickly” with the US, saying the tariffs are “very damaging to British industry.” This comes after 400 categories of goods which contain steel and aluminium became subject to US tariffs. Mr Macdonald said this had “blindsided everybody,” adding: “It’s blindsided us, it’s blindsided the UK Government, it’s definitely blindsided US customs.”
💼Money saving unit to cost taxpayers £1.6m
The Government’s Office for Value for Money – a quango tasked with saving money – is forecast to have cost taxpayers £1.6m before it is closed down in October. The Treasury says the body, which was set up to assess government spending and identify inefficiencies, has been responsible for £14bn of efficiencies. The unit was criticised in January when a Treasury Select Committee report said that it risked wasting taxpayer funds, describing it as an understaffed and “poorly defined organisation.”
💼Poll: 43% want a change in Chancellor
A survey shows that 43% of UK voters think Sir Keir Starmer should sack Rachel Reeves as Chancellor, with just 19% thinking she should remain in the post to deliver the upcoming Budget. Among Labour voters, more than one in five think the Prime Minister should remove Ms Reeves from the Treasury. The poll also saw 39% of respondents say that Labour is doing worse than the last Conservative government, while 23% think it is doing better. The survey also shows uncertainty over Mr Starmer’s position, with 35% saying they expect him to still be Prime Minister in a year and 34% saying that someone else will be leading the Government.
☕Coca-Cola Explores Sale of Costa
The Coca-Cola Company is preparing to sell Costa, Britain’s biggest high street coffee chain. Coca-Cola is reportedly working with investment bank Lazard to review options for the business and talks have been held with a number of potential bidders, including private equity firms. Coca-Cola bought Costa from Whitbread, the owner of the Premier Inn hotel chain, for £3.9bn in 2018.
💰Short-term inflation forecast holds at 4%
A poll from Citi and YouGov shows that the public expect short-term inflation to come in at 4%, with this unchanged from a previous survey. The poll shows that longer-term inflation expectations fell to 3.9%, from 4.2%.
👵Older women in the workforce hit record high
Figures from the Office for National Statistics (ONS) show that the number of women aged 65 and over in employment has reached a record high, having gone beyond the 700,000 milestone. The change has been partly driven by the increase in state pension age and after women’s retirement age was raised from 60 to bring it into line with that of men. Official figures show that in the three months to June, a record 10.3% of women aged 65 or over were in employment, with 710,000 in the workforce. Back in 1992, when comparable records began, just 177,000 (3.5%) of women aged 65 or over were in work. In 1992, 301,000 men aged 65 and over were working. This has since risen to 938,000. Former Pensions Minister Ros Altmann, said that while it “can be seen as good news that more women are now able to work longer if they want to … the worry is that some are being forced to keep working through ill health because they have nothing to live on and have to keep waiting for their state pension to start.” Steve Webb, another former Pensions Minister and now a partner at pension consultants LCP, warned: “Given that women typically have pension pots barely half the size of men’s pensions, they are much more likely to feel that they cannot afford to retire.”
🏠Dirty money pushes up property prices
Analysis suggests that house prices are being driven up by criminals funnelling dirty money into property. A study by anti-money laundering experts SmartSearch shows that Illicit money flowing into the housing market has added £3,000 to the average property price in the UK, with this rising to £11,000 in London. The report says that more than £11bn of suspicious money has flowed into the property market since 2016, with more than half of this coming from shell companies registered in British Overseas Territories. The data from SmartSearch also shows that over 87,000 properties in England and Wales are owned by anonymous firms based in tax havens, with around four in ten of these in London. MP Phil Brickell, a member of the All-Party Parliamentary Group on Anti-Corruption, said: “It is time to bring an end to the scandal of offshore secrecy by finally introducing corporate transparency registers.”
🏦Banks accused of breaching APP fraud rules
Banks have been accused of breaching rules covering mandatory repayments to fraud victims, with complaints lodged over redress for victims of an alleged £200m Ponzi scheme. Investors who fear they have lost money to 79th Group, a failed investment scheme that administrators from Grant Thornton believe is a Ponzi scheme, argue that lenders are breaching legislation designed to protect victims of authorised push payment (APP) fraud. The regulation says firms must repay the “vast majority” of scam victims within five business days, with this extended to 35 business days for complicated cases. The Payment Systems Regulator said it is “engaging with” Pay UK, an industry body which enforces the rules, while UK Finance said the industry has “aligned to ringfence this case from usual processing due to its highly complex nature.”
🚨Latest Insolvencies
Petitions to wind up (Companies) – NEW JERSEY NYC LIMITED
Appointment of Administrator – ANANAS ANAM UK LIMITED
Appointment of Administrator – GRIFFITHS AND JOHNSON LIMITED
Appointment of Administrator – Barnet Council Employees Credit Union Ltd
Appointment of Administrator – HULER LIMITED
Appointment of Administrator – MAIDENCROSS LIMITED
Appointment of Liquidators – GENESIS MORTGAGE FUNDING 2022-1 PLC
Appointment of Liquidators – SKYLINGS LIMITED
Appointment of Liquidators – ASCENTIFY LTD
Appointment of Liquidators – GK DRILLING CONSULTANTS LIMITED
Appointment of Liquidators – BLUELIFE LIMITED
Appointment of Liquidators – TUDOR ROSE MORTGAGES 2021-1 PLC
Appointment of Liquidators – LYGOS TRADING LIMITED
Appointment of Liquidators – R. E. DICKINSON PROPERTIES LIMITED
Appointment of Liquidators – OPTIC ENTERPRISES LTD
Appointment of Liquidators – ENACT NEWCO 7 LIMITED
Appointment of Liquidators – YARDSET LIMITED
Appointment of Liquidators – ENACT NEWCO 8 LIMITED
Appointment of Liquidators – N.P. AND D.B. PROPERTIES LIMITED
Appointment of Liquidators – GBH DEVELOPMENTS LTD
Appointment of Liquidators – VOLLERANT LIMITED
Appointment of Liquidators – TRISMO UK LIMITED
Petitions to wind up (Companies) – OFF THE LEVELS INN’S LIMITED
Petitions to wind up (Companies) – SOUTH STAFFS AIR CONDITIONING LTD
Petitions to wind up (Companies) – HOPE RESTAURANT LIMITED
Petitions to wind up (Companies) – PLAYFAIR HOTEL EDINBURGH LIMITED
Appointment of Administrator – KINSETSU LIMITED
Appointment of Liquidators – JOHNSTON MEDICAL SERVICES LIMITED
Petitions to wind up (Companies) – CRACHERCHLO LTD
Appointment of Liquidators – BOTHWELL BRIDGE ESTATES LIMITED
Petitions to wind up (Companies) – SAINT JUDES BAR GROUP LIMITED
Petitions to wind up (Companies) – HMS (884) LIMITED
Petitions to wind up (Companies) – ANTELOPE TRANSPORT LIMITED
Appointment of Administrator – BOTANIC WAY LIMITED
Appointment of Liquidators – AIKEN & CO LLP
Appointment of Liquidators – GVC CHILE UK LIMITED
Appointment of Liquidators – STORERIGHT (UK) LIMITED
Petitions to wind up (Companies) – LCJ LIMITED
Appointment of Liquidators – THE GARDENS SOLO LIMITED
Appointment of Liquidators – GARDENS ENTERPRISES LIMITED
Appointment of Liquidators – OAKHURST CONSULTANCY (SCOTLAND) LTD
Appointment of Administrator – GRADE (UK) LIMITED
Appointment of Liquidators – PETER TURPIN ASSOCIATES LIMITED
Appointment of Liquidators – SMITS PROJECT CONSULTANCY LTD
Petitions to wind up (Companies) – KENYON INVESTMENTS LIMITED
Appointment of Liquidators – CSV UK 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!
️ The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.