Business news 8 October 2025

The UK economy faces renewed pressure as the EU unveils punitive steel tariffs that could devastate British exports, while the Financial Conduct Authority confirms an £11bn compensation bill for car finance lenders. Amid calls from accountants to ease the tax burden on businesses, global trade projections improve modestly, and gold surges past $4,000 an ounce.

James Salmon, Operations Director.

Top stories for SMEs

1. EU steel tariffs spark crisis fears

The European Commission plans to halve steel import quotas into the EU, introducing 50% tariffs on any shipments above the new limit. The UK’s £3bn steel export market — 78% of which goes to the EU — faces what industry leaders call “perhaps the biggest crisis ever”.
Prime Minister Sir Keir Starmer pledged “strong support” for the sector, with urgent talks under way to negotiate UK-specific exemptions. Gareth Stace of UK Steel warned that redirected global supply “could be terminal for many of our remaining steel companies.”
Government officials are pressing the EU for clarification, while the industry minister will meet UK steel executives on Thursday.

2. FCA confirms £11bn in car loan compensation

The Financial Conduct Authority said it now expects major UK auto lenders to pay £8.2bn in redress to customers mis-sold car loans, plus £2.8bn in setup costs — a total of £11bn.
This figure is lower than earlier estimates but still represents one of the largest compensation schemes in UK financial history. The news pushed shares in several banks and lenders higher as the regulator’s figure came in below worst-case expectations.

3. Badenoch proposes £25bn in tax cuts

Tory leader Kemi Badenoch announced a new “golden rule” to allocate half of every pound saved to deficit reduction and the other half to tax cuts. Her plan includes scrapping business rates for 250,000 pubs and shops and capping funding for “low-quality” degree courses to promote apprenticeships.

4. Accountants urge Chancellor to cut business costs

A survey by the Association of Chartered Certified Accountants found that 94% of UK accountants lack confidence in the economy, citing rising employment taxes and HMRC inefficiencies as key barriers to growth. Members urged the Chancellor to simplify the tax system and improve HMRC services in the forthcoming Budget.

5. IMF calls for higher pension ages

The International Monetary Fund warned that Western governments, including Britain, must raise retirement ages and control public spending to prevent unsustainable debt. It recommended linking pension ages to life expectancy and tightening VAT exemptions on essentials.

6. WTO upgrades 2025 trade forecast

The World Trade Organization raised its 2025 global trade growth forecast from 0.9% to 2.4%, citing improved logistics and resilient supply chains. However, it warned the outlook for 2026 had deteriorated amid rising protectionism and energy cost volatility.

7. Tesla cuts prices amid demand slowdown

Tesla unveiled cheaper versions of its Model 3 and Model Y, both priced under $40,000 — about 15% less than before. Shares fell 4.5% as investors reacted to concerns over slowing US demand following the end of federal EV tax credits.

8. Ineos warns of ‘deindustrialisation crisis’

Ineos Acetyls will cut 60 jobs at its Hull plant due to high energy costs and cheap Chinese imports. CEO David Brooks said energy prices remain 75% above pre-Ukraine levels and accused governments of “sleepwalking into deindustrialisation”.

Market snapshot

Equities:

  • UK bank shares rallied sharply after the FCA’s lower-than-expected compensation estimate, with Close Brothers up 10% and Lloyds up 3.2%.
  • The FTSE 100 opened higher Wednesday morning.
  • The Stoxx Europe 600 gained 0.4%, led by banks, while BMW shares fell after a profit warning.
  • In the US, futures rose 0.2% after the S&P 500 snapped an eight-day rally.

Commodities:

  • Gold broke a historic record, surpassing $4,000/oz.
  • Brent crude edged up to $66/barrel, while WTI held near $62.
  • Copper weakened after Fed officials warned against rapid rate cuts.

Currencies:

The euro fell to $1.16 and to 0.8663 against sterling, pressured by French political concerns.

The US dollar approached a two-month high amid safe-haven demand.

CPA insight

The EU steel tariff shock will have serious implications for UK manufacturers, particularly those supplying the automotive, construction and energy sectors on credit. SMEs should review exposure to export-linked contracts and consider early discussions with buyers to mitigate potential disruption.

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.

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