Business news 29 September 2025

Small businesses woke up today to renewed warnings on taxes, business rates, and economic headwinds. With the Government’s £30bn fiscal gap under scrutiny, speculation is growing that SMEs may bear the brunt in the November Budget.

James Salmon, Operations Director.

Tax and business rate pressures

  • Starmer insists “manifesto stands” but VAT speculation grows: While the PM repeated that income tax, NI and VAT won’t rise, economists note the sums involved may leave little choice. HMRC modelling shows a 1% VAT rise could generate £8.8bn.
  • CBI warning: Business activity fell at the fastest pace since 2020. The CBI says firms are nervous about the Budget and urges the Chancellor not to raise taxes again.
  • Resolution Foundation suggests income tax shift: The think-tank floated freezing thresholds and raising rates while cutting NI to balance the books.
  • FSB: 150,000 firms face loss of rate relief: Sole traders and start-ups in shared spaces are being excluded from small business rate relief — a blow to cashflow.
  • Supermarkets may be spared rate hikes: Retailers push for exemption to avoid costs feeding through to consumers.
  • London offices face “stealth tax”: Business rates for prime offices set to rise £600m next year, sparking concerns over competitiveness.

SMEs & hospitality sector struggles

  • Hospitality “taxed out”: UKHospitality says relentless NI and wage costs have wiped out reserves, with 89,000 jobs lost since Oct 2024.
  • Starmer acknowledges SME challenges: PM highlighted late payments and rising costs, stressing economic stability must underpin government policy.

Jobs & employment

  • Youth job guarantee: Reeves to announce mandatory jobs for under-25s on UC for 18 months, with sanctions for refusals.
  • Graduate hiring slump: Vacancies for graduates fell 33% YoY according to Indeed, a sharper drop than the overall market.

Economy & government

  • OBR clash: Reeves may scrap the OBR’s spring forecast, raising transparency concerns.
  • Treasury abolition floated: Labour peer Lord Glasman argues for replacing the Treasury with an economics ministry.
  • Digital ID mandatory by 2029: Government plans to require IDs to work, aiming to curb illegal migration. Critics warn of costs and risks.
  • BoE policymaker urges bolder rate cuts: Swati Dhingra says inflation pressures are temporary and cuts won’t threaten targets.

Pensions & personal finance

  • Lump sum gifting risks: Pensioners warned that passing on lump sums early could create unexpected IHT bills as rules tighten from 2027.
  • State pension to trigger tax bills: By 2027, the full state pension is forecast to exceed the frozen tax threshold, pulling pensioners into tax for the first time.
  • Over-60s’ biggest regrets: One-third wish they had started saving earlier, while 35% regret not paying more into pensions.

Market snapshot (29 Sept)

  • Equities: US & European futures up; Stoxx 600 +0.3% led by healthcare & mining.
  • Gold: New record above $3,800/oz.
  • Oil: Falls on OPEC+ output expectations.
  • FX: Dollar weakens on easing bets.
  • UK mortgages: Approvals slipped to 64,680 in Aug (vs. 65,161 in July). Net lending £4.3bn. Consumer credit steady at £1.7bn.

️ Insolvency round-up (26–29 Sept 2025)

Administrators appointed

  • Egloshayle 4 Limited
  • Honest Payroll Limited
  • Ridgeview Estate Winery Limited
  • Vaani Property Limited

Liquidators appointed

  • Ambulo (Farnham) Limited
  • Beaumont Landscapes Holdings Limited
  • Binary Bay Ltd
  • BNY Trust Company Limited
  • Braddock Engineering Consultancy Ltd
  • Chris Wallis Consultancy Limited
  • Coolgarif Technologies Ltd
  • Croft Development Consultancy UK Ltd
  • Eginerd Ltd
  • Encore (NNS) Limited
  • ER Solutions Limited
  • FP Medical Ltd
  • Gypsyfoot Consulting Limited
  • Jar Communications Limited
  • Jeymash Limited
  • Kilmora Limited
  • Lewis Bid Management Ltd
  • Longbone of Berwick Limited
  • Lunn Ventures Group Limited
  • Michael Steel and Co (Plant and Machinery) Limited
  • Noveltech Solutions Ltd
  • Nvolve Investments Limited
  • Oxford AI Consulting Ltd
  • P E M Cowdy Limited
  • Premier Oil Exploration Limited
  • Red Ventures Interactive Limited
  • RDL Properties Limited
  • Sarcon (No. 375) Limited
  • S M D Services Limited
  • Shenleybury House Limited
  • St Holdings (Newco 1) Limited
  • Stonebrook Associates Limited
  • Synthetic Technologies Ltd
  • Tampa Bay Properties Limited
  • The Warm Charm Limited
  • Triangle Aviation (UK) Holdings Limited
  • Vision Financial Consulting Ltd
  • Vitruvius Yachts Limited
  • Zed Management Ltd
  • Coromandel (Fraserburgh) Ltd

Winding-up petitions (companies)

  • Aboyne Developments Limited
  • Barrmuir Kitchen and Bathroom Design Limited
  • BC Management Services Limited
  • Beiruttrades Limited
  • Club Gymnasia Limited
  • Cornerstone Construction (NI) Ltd
  • Drumlane Livestock Ltd
  • Fenwick Restaurant Group Limited
  • Four Seasons Real Estates Limited
  • Granite Growth Developments Ltd
  • Hillcrest Agri Ltd
  • HWL Installations Ltd
  • Lumos Telecom (South) Limited
  • Mercury Designs Limited
  • MIKA Export Packing Services Ltd
  • MIKA Logistics Limited
  • MIKA Storage Solutions Limited
  • My Main Electrics Ltd
  • SK Lloyds Solicitors Ltd
  • Smart Loos Limited
  • Sussex Dairy Services Limited
  • West Yorkshire Civil Engineering Limited

CPA Membership

Running a business on credit? With rising taxes, rate hikes and insolvencies, protecting your cashflow is critical. Join CPA today to safeguard your business from late payment and debt recovery risks.

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.