Business news 27 August 2025
Trump threatens UK with tariffs over digital tax. Labour’s tax promises, new employment bill, bond yields, interest rates, energy bills, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
🗽Trump threatens UK with tariffs over digital tax
US President Donald Trump has threatened tariffs on countries imposing digital taxes targeting US tech firms like Google and Amazon. He stated that these taxes, including the UK’s digital services tax (DST), harm American companies while favouring Chinese tech. The UK’s DST, which generates around £800m annually, has faced criticism from US officials. Trump warned: “Unless these discriminatory actions are removed, I will impose substantial additional tariffs on that country’s exports to the USA, and institute export restrictions on our highly protected technology and chips.”
📰Labour’s tax promises under scrutiny
Daniel Finkelstein in the Times discusses the implications of potential tax rises in the upcoming Budget, highlighting Labour’s previous commitments against tax increases. He notes that Labour leader Sir Keir Starmer had assured voters there would be “no tax surprises” and that their plans were “about prosperity, not higher taxes.” Finkelstein argues that a tax-raising budget would betray these promises and could undermine Labour’s credibility. He states: “A tax-raising budget would be a betrayal of all the Chancellor and the Prime Minister said they would do.”
💰New employment bill to cost firms £80m
Labour’s proposed Employment Rights Bill will impose an additional £80m annual cost on businesses, according to employment lawyers. The legislation, deemed “the most expensive and complex” in a generation, includes protections against unfair dismissal and a ban on zero-hours contracts. TWM Solicitors estimate the total cost to firms could reach £5bn annually. Anthony Wilcox, an employment law specialist at TWM, stated: “Employers are rightly very concerned both by the cost of this legislation and the amount of new red tape it will smother them with.” Businesses fear the bill may hinder hiring and overwhelm employment tribunals.
📈Chancellor under pressure as bond yields soar
The UK’s borrowing costs have surged, with the yield on 30-year bonds reaching 5.62%, close to a 27-year high. The increase puts Chancellor Rachel Reeves under pressure to address a potential deficit of £20bn to £40bn in the upcoming autumn Budget. Economists warn of unique financial strains, including high welfare costs and stagnant productivity. Japanese investment bank Nomura said that despite public finances developing broadly in line with expectations, “a large tax-raising budget remains likely”.
👴Torsten Bell to help prepare Budget
Labour minister Torsten Bell has been appointed to lead Rachel Reeves’s Budget preparations, raising concerns due to his history of advocating radical pension reforms. Previously, Bell proposed scrapping the triple lock and cutting tax-free lump sums. His promotion follows a challenging period for the Chancellor, who has reversed several key policies, including cuts to winter fuel payments. An ally described Bell, the former head of a Left-leaning think tank, as one of Labour’s “sharpest minds.” However, critics worry about his track record of drastic financial ideas, which could impact future pension policies. Bell’s past proposals include capping tax-free lump sums and reforming inheritance tax loopholes.
🏦Mann calls for rates to be held
Catherine Mann, a member of the Monetary Policy Committee at the Bank of England, has warned that inflation may remain “persistently elevated” without stricter monetary policy. In a recent speech, she highlighted the risk of further price rises, particularly due to food inflation, which reached 4.2% in August. Mann stated: “By squeezing out inflation today, you prevent it from persisting in the future.” She cautioned against rapid rate cuts, suggesting they could lead to higher inflation later.
💡UK Energy Bills to Rise 2% to Fund Support for Vulnerable Homes
UK energy bills will rise 2% from October, pushed higher by costs that are being added on to fund support payments for vulnerable homes. The energy price cap (set every three months by Ofgem) will rise to £1,755 from 1st October, the regulator said in a statement. That will hit households and businesses still struggling with high costs just as consumption peaks during winter.
📈Markets
📈Yesterday, the FTSE 100 closed down 06% at 9265.80 and the Euro Stoxx 50 closed down 1.11% at 5383.68. Overnight in the US the S&P 500 rose 0.41% to 6465.94 and the Composite NASDAQ rose 0.44% to 21544.27.
London stocks were lower rattled by a host of international events.
President Trump threatened tariffs on countries that discriminate against US tech, by this he means countries that tax US tech companies. The UK Digital Services tax is one such example of an ‘attack on American tech companies’ according to Trump.
The Paris bourse closed down 1.5% after PM Francois Bayrou tabled a confidence vote for 8th September 2025. With a win unlikely, investors now see it as likely that fresh elections will be called that could reinforce both the far right and left wings at the expense of the centre party.
Federal Reserve Governor Lisa Cook has insisted President Trump lacks the authority to fire her and she will stay in her job. This is the first time a President has demanded the sacking of a Federal Reserve Governor.
PM Sir Keir Starmer said Israel’s double strike on the Gaza Nasser hospital and killing of journalists was ‘completely indefensible’.
Poundland has been saved from administration after a High Court judge, Sir Alastair Norris approved its restructuring plan which will see up to £60m injected into the business.
The S&P 500 Index climbed 0.4% on Tuesday as investors assessed developments in President Donald Trump’s push to remove Federal Reserve Governor Lisa Cook and prepared for Nvidia earnings on Wednesday.
💱This morning on currencies, the pound is currently worth $1.344 and €1.1599.
On Commodities, 🛢️Oil (Brent) is at $67.08 & 💰Gold is at $3378.
📈On the stock markets, the FTSE 100 is currently flat at 9265 and the Eurostoxx 50 is up 0.11% at 5389.
💡FCA approves Pisces market for LSE
The Financial Conduct Authority (FCA) has given the London Stock Exchange (LSE) the go-ahead to launch the Pisces private stock market later this year. This marks a significant milestone for the initiative, which aims to enhance liquidity in private markets. LSE CEO Julia Hoggett stated: “We are delighted to be the first venue operator to have been granted a PISCES Approval Notice by the FCA.” The market, proposed by the Treasury over two years ago, seeks to attract large private companies and provide a pathway to public listings. City minister Emma Reynolds also welcomed the FCA’s decision.
🏦AI market research firm collapses
Streetbees, an AI-led market research firm previously valued at $200m, has entered administration, resulting in over 100 job losses. The company, which served clients like Unilever and Vodafone, failed to secure a rescue deal despite efforts to attract investment. FRP Advisory has been appointed as the administrator. A spokesperson for Streetbees stated: “Despite strong interest from multiple parties, we were unable to conclude a transaction that would provide the necessary capital to continue operations.” The firm faced legacy challenges and adverse market conditions that hindered its survival.
💷Poundland dodges administration with court backing
Poundland has successfully avoided administration after a High Court judge approved a restructuring plan. The plan includes £60m in new funding to support the retailer, which was facing financial collapse by September 7. The restructuring will also involve closing 68 stores, impacting around 1,000 jobs, and reducing rents. Tom Smith KC, representing Poundland, noted that the company’s profitability has sharply declined in recent years due to rising costs and a challenging retail environment.
🛢️Wood Group moves closer to takeover
Wood Group, the engineering and consultancy company, is nearing a potential exit from the London Stock Exchange as it considers a reduced takeover offer from Sidara, a Dubai-based firm. Sidara initially proposed 35p per share but has now lowered its offer to 30p, pending certain conditions. The Wood Group board stated it is inclined to recommend this new offer to shareholders. The deadline for Sidara to confirm its intentions has been extended to 5pm on 28 August.
🚨Latest Insolvencies
Appointment of Administrator – KAJARIA-UKP LTD
Appointment of Administrator – ACE BINDING COMPANY LIMITED
Appointment of Administrator – EBUYER (UK) LIMITED
Appointment of Administrator – ADVENTURE LEISURE VEHICLES LTD
Appointment of Administrator – LVS PLASTICS LTD
Appointment of Administrator – SWAN PRINT LIMITED
Appointment of Liquidators – STANTON PSYCHOLOGICAL SERVICES LIMITED
Appointment of Liquidators – WICKHAM LABORATORIES HOLDINGS LIMITED
Appointment of Liquidators – ALAN GARD LIMITED
Appointment of Liquidators – WREN ARCHITECTURE AND DESIGN LIMITED
Appointment of Liquidators – SCMCD TAX AND ACCOUNTING LIMITED
Appointment of Liquidators – MIDLANDS PSYCHOLOGY SERVICES LTD
Petitions to wind up (Companies) – TLPR1 LTD
Appointment of Liquidators – ADVENTURE YACHTING LLP
Appointment of Liquidators – D. WELSH BUILDERS LIMITED
Petitions to wind up (Companies) – BIRRA 2 LTD
Petitions to wind up (Companies) – BIRRA 1 LTD
Petitions to wind up (Companies) – HANOVER VENTURES LIMITED
Petitions to wind up (Companies) – INGRAM RESTAURANT GROUP LIMITED
Petitions to wind up (Companies) – UNIQUE PAVING LIMITED
Petitions to wind up (Companies) – SYNCOM (UK) LIMITED
Petitions to wind up (Companies) – TTK CONFECTIONERY LTD
Petitions to wind up (Companies) – TEXO CONSTRUCTION LIMITED
Petitions to wind up (Companies) – DISCOVER SAKA LTD
Petitions to wind up (Companies) – CAMPBELL PHARMACEUTICALS LIMITED
Appointment of Liquidators – VIVARI LTD
Appointment of Liquidators – RUDOLPH SOFTWARE UK LTD
Petitions to wind up (Companies) – GY EMERGENCY PLUMBER LIMITED
Petitions to wind up (Companies) – GAS PRO ECO LTD
Petitions to wind up (Companies) – TRADE MOTOR GROUP NOTTINGHAM LIMITED
Petitions to wind up (Companies) – HDM NORTHERN LTD
Petitions to wind up (Companies) – FUTURE ENERGY NE LTD
Appointment of Liquidators – GRIIT 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!
️ The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.