Business news 29 January 2025
Heathrow & Economic Growth plan. Rates plans will ‘exacerbate’ decline of high street. Pay growth, mortgages, the pension surplus, rents, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Heathrow & Economic Growth plan
Today the Chancellor Rachel Reeves gave her backing for a third runway at Heathrow. During a major speech on economic growth, she said the runway is “badly needed” and could create 100,000 jobs. But the chancellor accepted this is just the start of a long process. Reeves said she has been “genuinely shocked” at how slow the wider planning system is, adding developers should be able to stop worrying about “the bats and the newts”
Aside from Heathrow, she backs a series of projects across England – including the redevelopment of Manchester United’s Old Trafford football ground, and investment in the “Oxford-Cambridge growth corridor”
The chancellor said she is working to unlock the potential of the Oxford-Cambridge growth corridor, by funding transport routes including East West Rail and new routs opening this year. She added that the growth corridor, dubbed “Europe’s Silicon Valley”, would drive “investment, innovation and economic growth”
The government has also agreed water resources management plans, unlocking £7.9bn worth of investment in the next five years, including the new Thames reservoir, Reeves said.
Rates plans will ‘exacerbate’ decline of high street
Analysis suggests that plans to reform the business rates system could “exacerbate” the decline of the high street, with retailers facing bigger tax bills. According to global tax consultancy Ryan Tax, legislation set out by the Chancellor will not address the “tax imbalance nor level the playing field” between high street retailers and online giants, “but will actually exacerbate it.” Under proposals outlined by the Treasury, a reform of the rates system would see a higher rate of tax levied on large properties with a rateable value of £500,000 or more, with the revenues used to fund discounts for smaller properties. However, analysis by Ryan Tax suggests the shake-up will land bricks-and-mortar retailers with higher tax bills. The report warns that retail, leisure and hospitality properties could see an extra £482m in business rates. Meanwhile, companies with large distribution warehouses are set to pay an extra £263m in business rate.
Pay growth hits 6.1%
Pay growth in the UK was up 6.1% year-on-year in December, according to a wage tracker from Indeed, outpacing the rates seen in the US (3.1%) and the eurozone (4.1%). This came despite a “cooling” labour market, Indeed noted. Official data recently published by the Office for National Statistics shows that regular pay growth averaged 5.6% in the three months to November. Analysts at Goldman Sachs say that pay growth is set to “significantly exceed” the Bank of England’s projection for Q4,” while Rob Wood, chief UK economist at Pantheon Macroeconomics, believes that pay growth “is likely to remain strong in the near term.”
Firms target wage bill to offset tax hikes
The majority of UK firms will cut the size of pay awards in response to coming tax hikes. Analysis from Incomes Data Research shows that 69% of employers are extremely or moderately likely to reduce pay awards to offset an increase in wage-related taxes announced in the Budget, with more than half of these “extremely likely” to ease back pay increases.
Looser mortgage rules raise risks for lenders
Credit ratings agency Moody’s has warned that the recent relaxation of mortgage rules in several European countries could lead to increased loan defaults, posing a long-term risk to lenders’ credit profiles. Countries such as Britain, Norway, and Finland have eased lending limits, with Britain consulting on further relaxations to support pro-growth policies. But despite the risks, Moody’s also noted that improved lending standards and stronger capital buffers at banks may mitigate potential issues.
Pension fund surpluses will help boost growth
Restrictions on final salary pension fund surpluses are set to be eased, making more money available for investment as the Government looks to promote economic growth. The Treasury has announced that employees and trustees of well-funded schemes will be allowed to make deals on “surplus extraction,” unlocking cash for investment. The Prime Minister and Chancellor say changes to pension rules will allow surpluses currently ‘trapped’ in funds to be invested in the wider economy. The Government calculates that while around 75% of final salary schemes are currently in surplus – with this worth around £160bn – restrictions mean it has been hard for businesses to utilise this for investment. Officials say that giving more flexibility over how schemes are managed will help “remove blockages” that hinder the Government’s growth agenda. Rachel Vahey, head of public policy at AJ Bell, comments: “The Government, desperate to boost UK growth, has long had plans to tap into pension funds as a potential source of new UK investment.”
Markets
Yesterday, the FTSE 100 was positive on the day as early trading in the states saw some stability return. The FTSE 100 closed up 0.41% at 8238.91 and the Euro Stoxx 50 closed up 0.27% at 5202.52. Overnight in the US the S&P 500 rose 0.92% to 6067.70 and the NASDAQ rose 2.03% to 19733.59.
Tech stocks look set to rise again, further paring Monday’s big drop that was triggered by DeepSeek’s lower-cost AI assistant. Nasdaq futures got a boost when Dutch chip-equipment maker ASML reported better-than-expected bookings thanks to AI demand. Shares in Nvidia, rose by almost 9% on Tuesday after a 17% drop on the previous day.
Microsoft and OpenAI are reported to be investigating whether data output from OpenAI technology was obtained in an unauthorized manner by a group tied to Chinese AI startup DeepSeek.
This morning on currencies, the pound is currently worth $1.242 and €1.194. On Commodities, Oil (Brent) is at $76.74 & Gold is at $2762. On the stock markets, the FTSE 100 is currently up 0.11% at 8543 and the Eurostoxx 50 is up 0.70% at 5232.
Over in the US, Federal Reserve officials are expected to leave interest rates steady, giving themselves more time to lower inflation and to assess how Donald Trump’s policies will affect the economy.
City should expect a ‘different relationship’ with FCA, says Rathi
Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), says City firms should expect a “different relationship” with the City watchdog. Highlighting that the FCA is being forced to “rigorously” reshape its approach to company failures as the Government pushes regulators to help deliver growth, he said the watchdog cannot “go after every technical breach of every rule.” He added: “We don’t think firms should expect from us lots of detailed rules to try and pin down every possible scenario.” Mr Rathi says there will be a “different relationship between the regulator and the regulated,” noting that the FCA is “shifting the way we regulate” and intends to “show quite a bit of flexibility.”
Rents
Rightmove said rents outside London had fallen for the first time before the pandemic. More rental properties coming onto the market were cited as the reason, though rents overall still rose between October and December as costs in London continued to rise. Rents in the capital rose to an average of £2,695 per calendar month (pcm), up by 0.1% higher than the previous quarter while the rest of the country saw a 0.2% dip to £1,341 pcm for newly advertised properties.
Aluminium
The EU is reportedly proposing a phased ban on imports of Russian aluminum as part of a broad sanctions package
United Utilities
United Utilities backed annual guidance and said it will push on with a “historic £13 billion investment” after accepting a regulatory price review. United Utilities, which last month said it would “take time” to review the final determination by watchdog Ofwat, said it has “accepted” the scheme which covers the five years to March 2030. “With the final determination agreed, we are now able to progress what will be the largest investment in water and wastewater infrastructure in over 100 years, to build a stronger, greener and healthier north west,” Chief Executive Officer Louise Beardmore said.
Tax refunds hit £8.3bn
According to data from a Freedom of Information request, HMRC refunded £8.3bn in overpaid tax during the 2022/23 tax year, benefiting around 8m workers. Each individual received an average of £943, although amounts varied. The overpayments were primarily due to incorrect tax codes. Recent research from Canada Life revealed that almost a third of UK adults who had checked their tax code have found that they had been in the wrong category at some point.
IHT rethink hits three-quarters of farms
More than three-quarters of all farms in England and Scotland will be impacted by new inheritance tax rules set out in October’s Budget. Research from the Agriculture and Horticulture Development Board (AHDB) reveals that over 76% of farms in England and Scotland will be affected by the changes, which impose a 20% effective tax rate on assets exceeding £1m. Meanwhile, shadow Environment Secretary Victoria Atkins has urged the Government to record the number of farmers dying by suicide to “understand the human cost” of the tax plans. Arguing that pensioners, family businesses and farmers are being hurt by the reforms, she has urged ministers to commit to “a full and proper review of this dreadful policy.”
Abramovich dodged tax with superyachts scheme
An investigation by the BBC and the Bureau of Investigative Journalism has uncovered a decade-long scheme involving Russian oligarch Roman Abramovich, aimed at misleading tax authorities regarding his fleet of luxury yachts. The scheme falsely portrayed the yachts as part of a commercial leasing operation to evade millions in VAT. The investigation revealed that Abramovich’s companies leased the yachts to one another, creating an “artificial structure” to avoid tax liabilities.
Boom Supersonic
Boom Supersonic, a US startup, broke the sound barrier for the first time with its XB-1 test plane. The company aims to bring back supersonic commercial travel, last experienced by passengers on Concorde in 2003. The XB-1 reached Mach 1, about 1200kph, over the Mojave Desert. But the aircraft is a fraction of the size of the company’s proposed airliner, which it hopes to launch by 2029.
Quiz on brink of administration
Fashion retailer Quiz is close to collapsing into administration. The firm, which operates around 60 stores and employs about 1,500 people, is reportedly lining up Teneo as administrator. It was recently reported that HSBC, Quiz’s main lender, had hired restructuring experts at Interpath to advise it.
Latest Insolvencies
Petitions to wind up (Companies) – UKPERFORMANCEGYM LIMITED
Appointment of Administrator – MORLEY GPCO LIMITED
Appointment of Administrator – COMMUNITY & BUSINESS PARTNERS CIC
Appointment of Administrator – THOROLD DEWLING & CO LTD
Appointment of Administrator – MORLEY NOMINEE CO LIMITED
Appointment of Administrator – VIKING RESOURCES LIMITED
Appointment of Liquidators – UCUBIA LIMITED
Appointment of Liquidators – KB ASSOCIATES CONSULTING (UK) LLP
Appointment of Liquidators – DAVID H OWEN LIMITED
Appointment of Liquidators – MERSEY MOTOR COMPANY,LIMITED
Appointment of Liquidators – K B ASSOCIATES CONSULTING LTD
Appointment of Liquidators – TRACY WHITING CONSULTING LIMITED
Appointment of Liquidators – NPS MEDICAL LTD
Appointment of Liquidators – SSS CONSULTANCY LTD
Appointment of Liquidators – DUNSTER ASSOCIATES LIMITED
Petitions to wind up (Companies) – YORKSHIRE AGGREGATE RECYCLING LIMITED
Winding up Order (Companies) – SECOND HOUSE LIMITED
Winding up Order (Companies) – WOODCO OFFICE EQUIPMENT LIMITED
Winding up Order (Companies) – NOBLE MECHANICAL SERVICES LIMITED
Winding up Order (Companies) – WORKFORCE CIVILS LIMITED
Appointment of Administrator – DYNAMIC MEDICAL LOGISTICS LTD
Appointment of Liquidators – HOLMES CONTROLS LIMITED
Appointment of Administrator – MINT REALISATIONS LIMITED
Appointment of Administrator – TRUST UC LTD
Appointment of Liquidators – CIRCULAR ECONOMY SOLUTIONS LIMITED
Petitions to wind up (Companies) – PATERSON LIGHT HAULAGE LIMITED
Petitions to wind up (Companies) – KOMYBEK LTD
Petitions to wind up (Companies) – SUNVIC INNOVATION LTD
Petitions to wind up (Companies) – PREUS LTD
Petitions to wind up (Companies) – STRUCTURED HOUSE LIMITED
Petitions to wind up (Companies) – FLOWER & HAYES LIMITED
Petitions to wind up (Companies) – CHESHIRE CONTRACTING AND CONTROL (ELECTRICAL ENGINEERING) LIMITED
Petitions to wind up (Companies) – MALTBY LOGISTICS AND PLANNING LTD
Petitions to wind up (Companies) – ATLAS TRAVELS LEICESTER LIMITED
Petitions to wind up (Companies) – FLOOR DECOR OF MILLHOUSES LIMITED
Petitions to wind up (Companies) – WILSDEN SOLUTIONS LIMITED
Petitions to wind up (Companies) – JSRK LIMITED
Petitions to wind up (Companies) – LA SHARPE ELECTRONICS LIMITED
Petitions to wind up (Companies) – 3 CROWNS PROPERTY & MAINTENANCE CONTRACTORS LTD
Appointment of Liquidators – JOOST ENGINES LTD
Appointment of Liquidators – SUTHERLAND BROWN LIMITED
Appointment of Administrator – REDBOOKINTERNATIONAL 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.