Business news 27 March 2025
Trump’s auto tariffs, inflation, the spring statement, 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.
Trump brings in auto tariffs
US President Donald Trump has announced 25% tariffs on cars and parts imported into the US in a bid to boost the domestic auto industry. “This will continue to spur growth like you haven’t seen before,” he said in the announcement from the Oval Office on Wednesday. The 25% tariff will go into effect at 12:01 am eastern time on 3rd April and apply to all cars not made in the US, meaning even US manufacturers with models made overseas would be hurt under the scheme.
The United Auto Workers, a union, hailed the move as a “victory” for the industry and the end of the three-decade “‘free-trade’ disaster”. The rest of the world braced for economic meltdown. American stocks slid. The tariffs are due to come into effect on April 3rd, a day after a number of other tariffs are due to start. Automakers can apply for exemptions for parts certified under the United States-Mexico-Canada free-trade agreement.
European stocks have fallen on the news with car makers especially down.
S&P Global Ratings put the chance of a recession at 25%. Its economic model alone puts the chance at just 10% but the higher risk reflects the effects of Mr Trump’s tariff policies.
Chancellor delivers Spring Statement
Rachel Reeves has set out her plans for the UK economy, with the Chancellor’s Spring Statement saying that day-to-day Government spending will fall by £6.1bn per year by 2030. Government departments will be given a target to reduce spending by 15% by 2030 and around 10,000 civil service jobs are expected to be cut. It was also announced that defence spending, which had been due to rise £2.9bn next year, will increase by a further £2.2bn. This will be funded in part by reducing overseas aid from 0.5% to 0.3% of gross national income in 2027. Ms Reeves also set out changes to health-related universal credit and the eligibility test for personal independence payments. The spending cuts came as the Chancellor looks to restore her fiscal headroom to around £10bn, with Office for Budget Responsibility analysis having suggested that the Government faced a deficit of £4.4bn
Tax burden set to soar to record high
New forecasts from the Office for Budget Responsibility (OBR) indicate that the UK’s tax burden is set to reach unprecedented levels, rising from 35.3% of GDP in 2024/25 to 37.7% by 2027/28, the highest since records began in 1948. The OBR predicts a peak of 38.3% in 2027/28, significantly above the pre-pandemic level of 33.2% in 2019/20. The increase is primarily driven by personal taxes, particularly income tax and National Insurance contributions. Paul Johnson, director of the Institute for Fiscal Studies, said Britain is approaching “its highest level of tax ever,” adding: “Broad brush, it will remain at record levels – if not for ever, then certainly into the future.”
OBR cuts 2025 growth forecast
The Office for Budget Responsibility (OBR) has halved its growth forecast for 2025, saying the UK economy will expand by just 1% this year. However, it has upgraded estimated GDP growth for the next four years, saying it will hit 1.9% next year, 1.8% in 2027, 1.7% in 2028 and 1.8% in 2029. The OBR has also increased its inflation forecast, saying it will average 3.2% this year rather than the 2.6% previously predicted. The revised estimate remains lower than the 3.75% high forecast by the Bank of England. The OBR analysis suggests that inflation will then fall to 2.1% in 2026 before hitting the Bank’s 2% target in 2027. Ian Stewart, chief economist at Deloitte, said: “Despite a major downgrade to the OBR’s growth forecast, the Government is on track to meet its fiscal targets.”
Inflation falls to 2.8% in February
UK inflation fell to 2.8% in February, from 3% in January, data from the Office for National Statistics (ONS) shows, with the decline driven by a drop in prices for clothing and footwear. Economists polled by Reuters had expected inflation to dip to 2.9% in February. Despite the steeper than expected fall, inflation remains above the Bank of England’s target of 2%. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the Bank is unlikely to cut rates at its next meeting as February’s fall was “not an enormous change” and inflation “is still significantly above target.” Joe Nellis, economic adviser at MHA, said the drop in headline inflation “is unlikely to undo the shift towards caution in the rate-cutting strategy.” Suren Thiru, economics director at the ICAEW, warned that February’s slowdown “is a false dawn as notable near-term price rises are already baked in,” saying higher energy bills and a National Insurance hike are “likely to push inflation perilously close to 4% sooner rather than later.”
Mid-sized firms may quit UK
According to a survey by Business Leader, nearly a third of medium-sized businesses in the UK are contemplating relocating abroad within the next two years. The survey, which included over 100 businesses, revealed that 42% are reducing hiring and 30% are considering leaving the UK due to factors such as cost inflation and rising National Insurance contributions. Richard Harpin, owner of Business Leader, said the survey “paints a stark picture of the outlook for ‘the forgotten middle’ of UK businesses.”
Businesses question lack of support
Major business groups have expressed frustration over the Chancellor’s Spring Statement, arguing that it offered no relief from impending tax increases. Rachel Reeves, delivering her fiscal update, acknowledged the challenges businesses face, particularly with National Insurance contributions rising by 1.2% to 15% and the salary threshold dropping significantly. Rupert Soames, chairman of the Confederation of British Industry, says that government measures have left business leaders frustrated, while Shevaun Haviland, director-general of the British Chambers of Commerce, highlighted that 82% of businesses will be affected by the National Insurance hike, leading to price increases and recruitment cuts. Rain Newton-Smith, chief executive of the CBI, said that businesses face a “significant regulatory burden” and “damaging consequences for growth, jobs and investment” from the Employment Rights Bill. Meanwhile, Kate Nicholls, chief executive of UKHospitality, said the Spring Statement marks a “missed opportunity to avoid an April cliff-edge.”
Tax rises still possible, analysts warn
Experts have warned that taxes may have to rise later this year, despite the spending reductions and welfare cuts Rachel Reeves set out in the Spring Statement. Although the Office for Budget Responsibility (OBR) said the Chancellor is likely to meet her self-imposed rule to not borrow to fund day-to-day spending, analysts say an unexpected hit to the economy could see any headroom wiped out. Tax hikes may then be required as it would be difficult to further reduce spending or increase borrowing. Paul Dale, chief UK economist at Capital Economics, said that in such a scenario, the Government “may have to break its election promises and raise taxes for households,” while Paul Johnson, director of the Institute for Fiscal Studies said there is likely to be months of speculation about which taxes might or might not be increased in the autumn Budget. Rob Wood, chief UK economist at Pantheon Macroeconomics, says the OBR will “almost certainly” have to cut growth forecasts later this year, adding: “So further tax hikes and borrowing are coming.”
Businesses expect future tax hikes
While the Office for Budget Responsibility (OBR) has upgraded growth forecasts, businesses remain concerned that the Chancellor will have to increase taxes in the future. Warning that “macro forecasts are still built on an overly optimistic view of growth,” Jefferies economist Modupe Adegbembo said this makes it likely that the Government “will need to deliver further cuts or tax increases later down the line to keep finances on track.” While the Chancellor has vowed to adhere to her “non-negotiable” fiscal rules, Hargreaves Lansdown analysts Sarah Coles said: “The debate has already started on whether there might be a new kind of tax altogether to boost the take without breaking any promises.” Jason Hollands, managing director of Evelyn Partners, argues that the absence of tax increases or reforms in the Spring Statement “should provide only limited comfort as the tax burden is only going to ratchet up from here.”
R&D tax credits face overhaul
A proposed overhaul of the UK’s research and development tax incentives aims to address concerns over fraud and accessibility. The Government is considering mandatory assurances for claimants to ensure their projects qualify for taxpayer support before filing claims. Currently, only a small number of companies utilise the voluntary advance assurance option. The incentives, costing the UK approximately £8bn annually, are designed to promote innovation in science and technology. However, a 2022 investigation revealed that dubious claims were being encouraged by advisers, with HMRC struggling to check them effectively.
HMRC to hike fines
HMRC is set to increase fines for the late filing of VAT and self-assessment. There will be a penalty of 3% of the sum outstanding where tax is overdue by 15 days, plus 3% where tax is overdue by 30 days and then 10% per annum where tax is overdue by 31 days or more. The increase is expected to bring in £105m over 2028/29 and £125m over 2029/30. The ICAEW described the increase as “very significant,” saying that timely payments will be “more critical than ever for taxpayers and businesses.”
Chancellor targets tax evaders
The Chancellor, Rachel Reeves, has announced plans to raise over £1bn in additional gross tax revenue a year by 2029/30, with tax evaders to be targeted. This will involve recruiting 500 more HMRC compliance staff. Analysis shows that unpaid tax liabilities owed to HMRC were over £44bn at the end of 2024. The number of charging decisions for the most harmful fraud is set to increase by 20% on current levels, from 500 to 600 per year by 2029/30. Robert Salter, a director at Blick Rothenberg, said the “reality is that it is very difficult to tackle tax fraud in a valid, coherent manner,” while Nicky Owen, a tax partner at Crowe, said: “I am concerned whether we have enough technically skilled people to run and deal with the investigations in a timely basis.” Meanwhile, whistleblowers who inform HMRC about tax-dodging will get a cut of any money collected as a result. The Treasury is also considering cancelling passports or seeking a driving ban in the most serious cases of deliberate tax non-compliance.
Worker rights plan sparks job fears
The Government’s proposed Employment Rights Bill is facing scrutiny from the Office for Budget Responsibility (OBR), which warns it could have a negative impact on employment. Professor David Miles, a member of the OBR’s budget responsibility committee, said that regulations affecting business flexibility may lead to “material and probably net negative economic impacts on employment, prices, and productivity.”
Housebuilding plans will deliver £6.8bn boost, says OBR
The Office for Budget Responsibility (OBR) says housebuilding is set to hit a 40-year high due to reforms to the planning system, with this likely to boost the economy by £6.8bn. While the OBR said the reforms could result in 1.3m new homes across the UK by 2030, the Government says further changes and greater investment will help to meet its target of 1.5m new homes in England over the next five years. The OBR says the number of new homes annually is projected to hit 305,000. It added that the increase in supply will mean a small reduction in house prices, saying the average will fall by around 0.9% by 2029/30.
House prices jump in January
UK house prices increased by 4.9% in the 12 months to January, according to the Office for National Statistics (ONS), with the average hitting £269,000. This exceeds the 4.6% year-on-year increase recorded in December. House price growth was fastest in the north of England, hitting 9.1% in the North East and 6.8% in the North West, while London (2.3%) and the South West (2.7%) logged the slowest rate of growth. The ONS data also shows that average UK monthly private rents increased by 8.1%, to £1,326, in the 12 months to February.
Latest Insolvencies
Petitions to wind up (Companies) – ADW ARC GROUP HOLDINGS LIMITED
Appointment of Administrator – MOLTEX ENERGY LIMITED
Appointment of Liquidators – CHK IT LTD
Appointment of Liquidators – GIRONI CONSULTING LIMITED
Appointment of Liquidators – PADMORE TECHNOLOGIES LTD
Appointment of Liquidators – CHORD DESIGN LIMITED
Appointment of Liquidators – IOI RISK ENGINEERING LIMITED
Appointment of Liquidators – R&R CHORD GROUP LIMITED
Appointment of Liquidators – MORNING EGG LIMITED
Appointment of Liquidators – PROJECT FULMAR LIMITED
Appointment of Liquidators – BRANDCASS CONSULTING LTD
Appointment of Liquidators – SIRTUIN OPHTHALMIC LIMITED
Appointment of Liquidators – LESLEY SEARY LTD
Appointment of Liquidators – TYNEMOUTH DISABLED AND EX-SERVICEMEN’S CLUB AND INSTITUTE LIMITED
Appointment of Liquidators – BISENSE LTD
Appointment of Liquidators – TAMARIKI MARITIME VENTURES LTD
Appointment of Liquidators – HUGHES CONSULT LIMITED
Appointment of Liquidators – DAVIESBAILEY LIMITED
Appointment of Liquidators – HAMSARD 3724 LIMITED
Appointment of Liquidators – HODA ENTERPRISE LIMITED
Appointment of Liquidators – OAKEN VALLEY LIMITED
Appointment of Liquidators – CORNISH HOSPITALITY LIMITED
Appointment of Liquidators – TT MEDICAL SERVICES LIMITED
Appointment of Liquidators – LANT POWER LIMITED
Appointment of Liquidators – D’COSTA CONSULTANTS LIMITED
Appointment of Liquidators – ROBOT CLOUD TECHNOLOGY LTD
Appointment of Liquidators – LINKLIGHT NETWORKS LIMITED
Appointment of Liquidators – LW HOLDINGS (INTERNATIONAL) LTD
Appointment of Liquidators – BR STRATEGIC SOLUTIONS LTD
Appointment of Liquidators – S RASHID CONSULTING LTD
Appointment of Liquidators – KISSACK LTD
Appointment of Liquidators – EXPLICITLY LTD
Appointment of Liquidators – BD SOFTWARE LIMITED
Appointment of Liquidators – RENEWABLES CONSULT LTD
Appointment of Liquidators – CAERUS ADVISORY LTD
Appointment of Liquidators – DERIU CONSULTING LTD
Appointment of Liquidators – DATA CONSULTANTS LTD
Appointment of Liquidators – HEIDI DURRANT CONSULTING LIMITED
Appointment of Liquidators – OXSPRING CONSULTING LIMITED
Appointment of Liquidators – VOLBRO LIMITED
Petitions to wind up (Companies) – IMPACT PLASTICS & COATINGS LTD
Appointment of Liquidators – CYCLONE PROPERTIES LIMITED
Appointment of Liquidators – JAMIE WINDLE LIMITED
Appointment of Liquidators – JD RESIDENTIAL DEVELOPMENTS LTD
Petitions to wind up (Companies) – SENTRY GUARDIANS LTD
Petitions to wind up (Companies) – 3 B’S FOOD GROUP LTD
Petitions to wind up (Companies) – BTCMINING LIMITED
Petitions to wind up (Companies) – ICFL LTD
Appointment of Liquidators – THAI MASSAGE & CLINIC LTD
Appointment of Liquidators – ROCK ROSE SERVICES LIMITED
Appointment of Liquidators – MADELEINE FORSTER LIMITED
Appointment of Liquidators – MR A J CHOJNOWSKI LTD
Appointment of Administrator – PENNINE POWER ENGINEERING LTD
Appointment of Liquidators – SNUG FURNITURE LIMITED
Appointment of Liquidators – CYANWOLF LIMITED
Appointment of Liquidators – MERCIA MEDICOLEGAL LTD
Appointment of Liquidators – T & M DIAGNOSTICS 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!