Business news 30 July 2025
Construction firms face critical distress. UK business activity faces steep decline. IMF predicts UK growth at 1.2% this year. Tax burden hits record high. Young Brits ready to move abroad, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
🏗 Construction firms face critical distress
The construction industry experienced a 15.8% increase in firms in critical distress in Q2 2025, according to Begbies Traynor. Steven Mulholland, CEO of the Construction Plant-hire Association, said that “SMEs are grappling with a range of cost pressures,” including strict environmental regulations and high employer taxes. The sector was the slowest growing in the UK economy during the first quarter of 2025. Mulholland warned that changes to Business Property Relief could threaten 200,000 jobs and £15bn to the economy. Kelly Boorman, National Head of Construction at RSM UK, pointed to the risk of “overtrading” as firms struggle to meet mandatory housing targets amid ongoing cost pressures and skills shortages.
📉UK business activity faces steep decline
British business activity is projected to decline at its fastest rate since the pandemic, driven by a “wave of pessimism” following Labour’s rise to power. The Confederation of British Industry (CBI) reports that all sectors are expected to contract over the next three months, with consumer-facing industries particularly affected by the National Insurance increase. Alpesh Paleja, the CBI’s deputy chief economist, said: “Firms continue to face testing conditions, with expectations pointing to another quarter of falling activity across the economy. While not worsening, the persistently negative outlook underlines the fragility of demand conditions.”
📈IMF predicts UK growth at 1.2% this year
Labour’s ambition to position Britain as the fastest growing economy in the G7 is faltering, according to the International Monetary Fund (IMF). The UK is projected to grow by only 1.2% this year, trailing behind the US and Canada, which are expected to grow by 1.9% and 1.6%, respectively. The UK is also grappling with the highest inflation rate in the G7 at 3.6% and escalating borrowing costs. However, the IMF’s World Economic Outlook indicates that major European economies like Germany and France will experience even slower growth, as will Italy and Japan. The report goes on to warn that geopolitical tensions and higher tariffs could further hinder global economic activity. Chancellor Rachel Reeves commented: “The IMF’s forecasts show that the UK remains the fastest growing European economy in the G7 despite the global economic challenges we are facing.”
💰Tax burden hits record high
The UK tax burden has reached its highest level since the Second World War, with average households paying £31,623.50 in taxes, translating to a 57% tax rate. The average household currently pays £16,700 in direct income tax, but when considering additional levies, the total tax burden rises dramatically. The Government collected £301.9bn in income tax for 2024/25, averaging £10,631 per household.
🛫Young Brits ready to move abroad
According to a recent poll by the Adam Smith Institute, over half of young people in Britain have contemplated leaving the country due to concerns about housing and financial stability. The survey revealed that 28% of those aged 18 to 30 are either planning to emigrate or have seriously considered it, with only 35% stating they have never thought about leaving. Emma Schubart, of the Adam Smith Institute, commented: “The youngest generation of British workers are sending a clear message. They feel overtaxed, underhoused and undervalued. If our political class continues to ignore these warning signs, we risk exporting our talent at precisely the moment when it is most needed.”
📅 Deadline alert for self-employed tax
Self-employed individuals must act quickly as HMRC warns of an impending tax payment deadline. A self-assessment tax return is required for those earning income outside of regular employment, including rental income and side hustles. While annual self-assessments are due by 31 January, a mid-year payment is also required by 31 July, contributing to the 2024-25 tax bill. Missing this deadline incurs high penalties, with interest rates at 8.25% on unpaid tax. Additional penalties apply if the tax remains unpaid for over 30 days, escalating to 15% after 12 months.
🅰️ℹ️ UK jobs market faces AI upheaval
City AM reports on the challenges facing the UK job market, with unemployment now at 4.7%, the highest in four years. James Reed, CEO of Reed Recruitment, recently described it as “the worst jobs market he has ever seen.” The professional services sector, particularly the Big Four accountancy firms, has seen over 2,000 roles cut due to over-hiring during the pandemic and a shift towards AI investment. Elsewhere, a survey by Yugo revealed that 78% of UK students fear AI could threaten their job prospects. The insurance sector is also facing job cuts, with vacancies down by over 17% as firms focus on digital transformation
📈Markets
📈Yesterday, the FTSE 100 closed up 0.63% at 9136.32 (boosted by banking stocks that rose on the Barclays figures) and the Euro Stoxx 50 closed up 0.75% at 5377.55. Overnight in the US the S&P 500 fell 0.30% to 6370.86 and the NASDAQ fell 0.38% to 21,098.29.
Marks are in a cautious mode as the latest FED decision is awaited and after the US-China talks ended without a tariff truce extension until Trump signs off on it.
Gilts saw modest yields despite Sterling continuing to edge lower.
💱This morning on currencies, the pound is currently worth $1.336 and €1.156 .
On Commodities, 🛢️Oil (Brent) is at $72.73 & 💰Gold is at $3328.
📈On the stock markets, the FTSE 100 is currently down 0.4% at 9101 and the Eurostoxx 50 is up 0.1% at 5375.
🏠Lenders approve more mortgages
British lenders approved 64,167 mortgages in June, an increase from 63,288 approvals in May and up on the 63,000 expected by economists. The rise indicates a recovery in the housing market following the end of a stamp duty discount for some homebuyers. The Bank of England also reported that unsecured consumer borrowing rose by £1.417bn in June, exceeding forecasts and reflecting stronger consumer confidence.
🛢️Trump urges UK to slash North Sea oil taxes
US President Donald Trump has condemned the UK’s high taxes on North Sea oil, labelling it a “treasure chest” for the nation. In a post on Truth Social, he urged the UK to incentivise drillers to unlock wealth and reduce energy costs. The UK currently imposes a 38% energy profits levy, contributing to a total tax rate of 78% on oil and gas activities. Labour has increased taxes on oil giants, with revenues expected to yield around £5.2bn in the next year. Trump’s comments come after he advised Sir Keir Starmer during a visit to Scotland to cut taxes and tackle immigration to beat Nigel Farage’s Reform UK party at the next election. Trump also made the case for exempting farmers from inheritance tax stating that he had eliminated death duties for most estates in the US. Labour’s approach, however, has resulted in a record number of farms (6,365) being forced to close for good in the past 12 months, according to figures in the Telegraph.
🏦Barclays CEO warns against tax hikes
Barclays boss CS Venkatakrishnan has urged the Chancellor not to increase taxes on banks, asserting that the move would not be consistent with the Government’s pro-growth aims. “I think growth is the important objective of the UK economy,” Venkatakrishnan said. “And we want good quality growth, which is fuelled by the important sectors of the economy – banks are one of them.” His remarks follow similar comments from Lloyds Banking Group’s Charlie Nunn and NatWest chief Paul Thwaite amid concern that Rachel Reeves will target the sector for a tax raid to boost her waning fiscal headroom.
📱Laptops and phones lost at HMRC
Nearly 3,000 laptops and phones valued at over £1.8m have been lost or stolen from HMRC in the past three years, accounting for approximately 1.6% of the devices used by its 65,000 employees. HMRC reported 393 devices stolen and 2,504 lost, with all incidents investigated as security breaches.
🏦 HSBC
HSBC reported a 29% plunge in profit before tax to $6.3 billion for the second quarter, but has unveiled another $3 billion share buyback and $0.10 quarterly dividend as it said it was just a paper profit hit. The fall in profit reflected another $2.1 billion impairment charge relating to the lender’s investment in China’s Bank of Communications and exposure to Hong Kong real estate, which were the major contributors to expected credit losses rising $900 million to $1.9 billion.
💊GSK
GSK said it expects annual growth at the top end of its outlook range, after “another quarter of excellent performance”. The pharmaceutical firm said its portfolio of Specialty Medicines led the charge, and the group added that it is “positioned to respond to the potential financial impact of tariffs”. Revenue in the second quarter of 2025 rose 1.3% to £7.99 billion from £7.88 billion, helping to push pretax profit up 26% to £1.89 billion from £1.50 billion. Core operating profit rose 12% at constant currency to £2.63 billion.
🏠Taylor Wimpey
Taylor Wimpey swung to a first-half loss due to cladding provisions, but reported a resilient underlying performance as home completions increased and customer demand remained steady despite softer market conditions in the second quarter. Operating profit declined 11.7% to £161 million for the housebuilder, reflecting a £20 million one-off charge related to historical remediation work, while completed sales increased 11% to 5,264 homes, including joint ventures.
🏭BAE Systems
BAE Systems upped its annual guidance after a “strong operational performance in the first half”. BAE said pretax profit in the six months to June 30 rose 2.2% to £1.19 billion from £1.16 billion a year prior. Revenue rose 8.8% to £13.57 billion from £12.48 billion. “Our teams have delivered another strong operational and financial performance in the first half of the year, giving us the confidence to upgrade our guidance. In this heightened global threat environment, we continue to deliver mission critical capabilities to armed forces around the world and invest in our people, technologies and facilities to drive the improved efficiency, capacity and agility needed to meet the increasing demand for our highly relevant products and services,” CEO Charles Woodburn commented.
☕Starbucks
Starbucks reported worse-than-expected profits in the second quarter as the costs of an attempted turnaround piled up. The world’s biggest coffee chain reported net income of $558m, down 47% year on year. Brian Niccol, the firm’s boss, said it was undertaking its “biggest investment ever in operating standards and customer service”, an effort that has included hiring more baristas and simplifying its menu.
🚨Latest Insolvencies
Petitions to wind up (Companies) – ALLOYENGINEERSS LTD
Petitions to wind up (Companies) – SEW ROYALE LTD
Appointment of Administrator – NTS 247 LTD
Appointment of Liquidators – DARYA CREATIVE LIMITED
Appointment of Liquidators – ANANIAS JUNIOR LTD
Appointment of Liquidators – PAUL GOLDSMITH SERVICES LIMITED
Appointment of Liquidators – MR & MRS BEETHOVEN LTD
Appointment of Liquidators – ENERGY MARINE (INTERNATIONAL) LIMITED
Appointment of Liquidators – MPL NATURAL RESOURCES LIMITED
Appointment of Liquidators – TOM BUTTERFIELD LIMITED
Petitions to wind up (Companies) – ORCHID DEVELOPMENT LIMITED
Petitions to wind up (Companies) – KHM BUSINESS SERVICES LTD
Appointment of Liquidators – MYSTORE SELF STORAGE LTD
Appointment of Liquidators – SCS (WITNEY) LTD
Appointment of Liquidators – COLDSTREAM AIR CONDITIONING LIMITED
Appointment of Liquidators – THE SCIENCE BEHIND LIMITED
Appointment of Liquidators – ARFA IT SOLUTIONS LIMITED
Petitions to wind up (Companies) – BREATHE SERVICES LTD
Petitions to wind up (Companies) – K STYLE LTD
Petitions to wind up (Companies) – WEBAIA LIMITED
Petitions to wind up (Companies) – FERN RESIN DESIGNS LTD
Petitions to wind up (Companies) – MENTAL HEALTH ABERDEEN
Petitions to wind up (Companies) – MTIX LTD
Petitions to wind up (Companies) – UK TCF LIMITED
Petitions to wind up (Companies) – EDC GROUP NE LTD
Petitions to wind up (Companies) – UK EDC LTD
Petitions to wind up (Companies) – AOS COOLING & HEATING LIMITED
Appointment of Administrator – CENERGIST 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.