Business news 31 July 2025
Debt doom loop threatens UK economy. Brits stash away more cash. Energy bills, young people, retail price hikes, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
🌀 Debt doom loop threatens UK economy
Ray Dalio, founder of Bridgewater Associates, has warned that the UK is in a “debt doom loop” due to rising taxes and debts. He asserted that the Government’s tax hikes could drive wealthy taxpayers away, worsening the economy. The UK’s national debt is currently £2.9trn and may reach £3trn soon. Dalio noted that the top 10% pay 75% of income taxes, and losing even a small percentage of them could significantly reduce tax revenue. He called for strong leadership to address both financial and social challenges, echoing concerns from the International Monetary Fund and the Office for Budget Responsibility.
💰Brits stash away more cash
Figures from the Office for National Statistics show the proportion of disposable income not spent, known as the savings ratio, rose to 11.1% in the first quarter of 2024. This is up from 9.3% in the last quarter of 2023 and marks the highest rate since Q3 of 2021. The ONS data also showed real household disposable income rose by 2.5% in the first quarter of 2024 – the biggest increase in two years – but consumer spending barely changed, rising by only 0.2%
💡 UK energy bills could be set according to wealth
Ofgem has initiated a review of energy bill costs to address concerns that rising fixed charges may disproportionately affect low-income households. Chief executive Jonathan Brearley stated that while electricity unit costs could decrease, fixed costs for network upgrades might increase. The review will explore options like “progressive billing,” where wealthier households could pay more. However, shadow energy secretary Claire Coutinho, argues that Ofgem should focus on reducing overall energy costs rather than redistributing them.
🛫Young people need to feel optimistic about the UK
Christian May reflects in City AM on why many young people in the UK are thinking of leaving the country. High taxes, soaring house prices, and declining public services mean young people struggle to see the value in staying in the UK. The Resolution Foundation reports that typical real income is expected to rise by only 1% over the next five years. With nearly 30% of 18-30 year olds contemplating leaving the country, May suggests Britain follows Portugal’s example and cuts taxes for the under-35s. He goes on to warn: “Optimism is a vital ingredient for a country’s success. Without it, the future simply becomes something to be endured – or avoided.”
🛍️Retailers warn of price hikes
Retailers are warning of potential price increases and job cuts if Rachel Reeves raises taxes in the upcoming Budget. A survey by the British Retail Consortium (BRC) revealed that 66% of bosses expect to raise prices, with 88% citing taxes and regulation as their primary concern. Helen Dickinson, BRC chief executive, said another tax increase would “fan the flames of inflation” and risk job losses. The survey also indicated that 85% of retailers have already raised prices due to increased National Insurance contributions and minimum wage.
📈Markets
📈Yesterday, the FTSE 100 closed flat at 9136.94 and the Euro Stoxx 50 closed up 0.2% at 5393.18. Overnight in the US the S&P 500 fell 0.12% to 6362.90 and the NASDAQ rose 0.15% to 21129.67.
The US Economy grew at an annualized rate of 3% in the second quarter, rebounding from a 0.5% contraction in the first quarter.
Trump announced a trade deal with South Korea with tariffs of 15%. South Korea will invest $350bn for investments owned and controlled by the US and selected by President Trump. South Korea has also agreed to buy $100bn of LNG from the US. Earlier he raised tariffs on Brazil from 10% to 50%, citing an “extraordinary threat” to American security from the policies of the country’s left-wing government. Mr Trump also threatened tariffs of 25% on imports from India and an unspecified “penalty” because it imports Russian oil and weapons.
💱This morning on currencies, the pound is currently worth $1.321 and €1.156.
On Commodities, 🛢️Oil (Brent) is at $72.8 & 💰Gold is at $3303.
📈On the stock markets, the FTSE 100 is currently up 0.47% at 9180 and the Eurostoxx 50 is down 0.22% at 5381.
💻 Microsoft
Microsoft is on track to become the second company after Nvidia, a chipmaker, to reach a $4trn market capitalisation. The tech giant reported soaring quarterly profits, with net income increasing by 24% from a year earlier, to $27.2bn. The better-than-expected results were largely due to its bold bet on artificial intelligence.
Microsoft reported better-than-expected growth in its cloud business, which it says brought in more than $75 billion in the past year, as the company continues to commercialize artificial intelligence services. The closely watched Azure cloud-computing unit posted a 39% rise in sales during Microsoft’s fiscal fourth quarter, the company said in a statement on Wednesday.
Analysts projected 34% revenue growth. The company said sales at the cloud division grew 34% to more than $75 billion during the year ended in June, the first time the company has disclosed a revenue figure for Azure, which sells computing power and other services to businesses.Overall, sales rose 18% to $76.4 billion during the quarter. Net income was $3.65 a share. Analysts on average estimated $73.9 billion in revenue and per-share earnings of $3.37. Shares initially rose 9% after hours on the news.
🦅 Fed holds rates despite Trump pressure
The US Federal Reserve decided to maintain interest rates between 4.25% and 4.5%, despite pressure from President Donald Trump for a cut. This decision follows a stronger-than-expected economic growth of 3% in the second quarter, surpassing Wall Street’s 2.4% forecast.
🏦HSBC warns against bank tax hikes
Georges Elhedery, CEO of HSBC, has joined a raft of banking leaders to warn against increasing taxes on banks in the upcoming autumn budget. He said that UK banks already face the highest tax rates compared to other sectors, which could hinder investment and economic growth. Elhedery remarked: “Additional taxation on banks does run the risk of eroding our continued investment capacity.” However, he went on to express optimism about the UK’s economic resilience and highlighted the benefits of recent free trade agreements.
⚽ Gary Neville criticises tax hikes
Gary Neville, former Manchester United star, has condemned Chancellor Rachel Reeves’ national insurance increase, calling it a “challenge” for businesses. The business owner believes the rise has hindered employment and could have been avoided. However, he does support the minimum wage increase. “People, to be fair, should be paid more so I don’t think that’s something that you can be critical of,” he explained.
💷🚿 Football clubs face money laundering risks
The Treasury’s National Risk Assessment of Money Laundering and Terrorist Financing highlights vulnerabilities in football clubs to money laundering, fraud, and bribery. The report notes that dual representation by agents in player transfers poses a significant risk. The UK Football Policing Unit is collaborating with the National Crime Agency on Project Tachygenic to address these threats. The report adds that financially distressed clubs are particularly susceptible to exploitation.
💲PayPal allows users to pay with over 100 cryptos
PayPal has introduced a new feature allowing users to pay with over 100 cryptocurrencies. The ‘Pay with Crypto’ system converts payments into dollars or stablecoins instantly, protecting merchants from price volatility while dramatically reducing transaction costs. Separately, JPMorgan has partnered with Coinbase to enable customers to fund their wallets using Chase credit cards, starting in fall 2025.
🚨Latest Insolvencies
Petitions to wind up (Companies) – K & L TRANSPORT LIMITED
Appointment of Administrator – PARK CHINOIS LIMITED
Appointment of Liquidators – RCL SYSTEMS LIMITED
Appointment of Administrator – APD LIMITED
Appointment of Administrator – UGGBUGG FASHION LTD
Appointment of Liquidators – PARAGON MORTGAGES (NO.26) PLC
Appointment of Liquidators – REAL ESTATE TWO LIMITED
Appointment of Liquidators – EJS ASSOCIATES LIMITED
Appointment of Liquidators – GARDEN ALCHEMY LIMITED
Petitions to wind up (Companies) – SCION INTERIORS LTD
Appointment of Liquidators – BASE OF ALL LTD
Appointment of Liquidators – ELMAN WALL SERVICES LIMITED
Appointment of Liquidators – SFJR LIMITED
Appointment of Liquidators – C. MUDDLE & SON LIMITED
Winding up Order (Companies) – I C FOODS LTD
Winding up Order (Companies) – BMS LUNA STACKS LTD
Winding up Order (Companies) – THE ACCOUNTANCY FRANCHISE LTD
Winding up Order (Companies) – MARCONST4U LTD
Winding up Order (Companies) – DAVID LLOYD’S ADRENALIN WORLD LTD
Winding up Order (Companies) – A&J HOWELLS HOME SERVICES LIMITED
Winding up Order (Companies) – MILLENNIAL VENTURES LTD
Petitions to wind up (Companies) – DEVON CONCRETE LIMITED
Petitions to wind up (Companies) – FACKHAM HALL PRODUCTION LTD
Petitions to wind up (Companies) – LMTS TELECOMS LTD
Petitions to wind up (Companies) – SHERWOOD ESTATE AGENCY LTD
Petitions to wind up (Companies) – THE NOTTINGHAMSHIRE BUILDING COMPANY LTD
Appointment of Liquidators – TOPMARK ASSOCIATES LIMITED
Appointment of Liquidators – DEBORAH MCCARTNEY LTD
Appointment of Liquidators – THE CHIDDINGFOLD LETTERPRESS LIMITED
Appointment of Administrator – MALDON METALS LIMITED
Appointment of Liquidators – MOUNT PROPERTY DEVELOPMENT LIMITED
Appointment of Liquidators – ENERGY TRANSITION SPONSOR LLP
Appointment of Liquidators – COTON HURST RETIREMENT HOME LIMITED
Appointment of Liquidators – MARSHALL DENNING 2 LLP
Appointment of Liquidators – BELVARDE LIMITED
Appointment of Liquidators – P N COMMS (UK) 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.