Key points of the new UK-EU trade deal, implications of the inflation rise and details of refunds for incomplete debt relief order applications
We start the short working week with details of how the new UK-EU trade deal could affect your business, the implications of the rise in inflation, and provide you with information regarding refunds for incomplete debt relief order applications.
What the New UK-EU Deal Could Mean for Your Business
The UK government has agreed a new trade deal with the European Union, aimed at making it easier to do business across the Channel. This follows recent agreements with the US and India and is being presented as part of a wider effort to support jobs and help businesses grow.
The EU is still the UK’s biggest trading partner, but many businesses have faced added costs and delays since Brexit. This new deal intends to reduce some of that pressure.
What’s changing?
A few of the key points include:
- Simpler food and drink trade: Some checks on food, plants and animal products will be removed. This should make it easier and quicker to move these goods between the UK and EU, including Northern Ireland. It may also lower costs for businesses and help keep prices down for consumers.
- Support for British producers: The deal allows UK food producers to sell certain items, like burgers and sausages, back into the EU – something that’s been restricted since Brexit.
- Steel industry boost: UK steel exporters will avoid new EU charges under a special arrangement that the government says will save around £25 million a year.
- Energy and emissions: The UK and EU will link their systems for trading carbon allowances. This move could help UK companies avoid a new EU carbon tax due to come in next year.
- Help for coastal businesses: A 12-year agreement that extends fishing rules in UK waters for the EU has been agreed. There’s also £360 million in funding promised for coastal communities, including money for new equipment and training.
- Smoother travel: UK holidaymakers will be able to use more fast-track eGates at EU airports. Pets will also be able to travel without needing extra certificates each time. Although freedom of movement is not returning, there are plans to let young people work and travel more freely under a future youth experience scheme.
What this may mean for your business
If your business trades with the EU – whether that’s selling food, making goods, or moving products across borders – this deal could make life a bit easier. Fewer checks and less paperwork could help cut delays and bring down some of the added costs of cross-border trade.
It’s worth noting that while the headlines have been announced, some of the details are still being worked out. You may want to keep your eye on how the changes are put into practice.
Looking ahead
This deal won’t reverse all the changes brought in by Brexit, nor does it rejoin the UK to the EU’s single market or customs union. But it may offer some relief if your business has had to struggle with new rules over the past few years.
If you trade with the EU, this could be a good time to review your processes. Alternatively, you could look at whether the changes could open up new opportunities for your business.
Whether because of the new trade deal or not, it is always a good time to look at ways to grow your business. If you need some ideas, why not ask us for your free copy of ’57 Ways to Grow Your Business’. This is our guide to help you maintain profitability and strengthen your position in the market.
See: https://www.gov.uk/government/news/pm-secures-new-agreement-with-eu-to-benefit-british-people
Inflation Rises to 3.5% as Household Bills and Business Costs Increase
UK inflation rose to 3.5% in April, according to official figures, up from 2.6% in March and higher than many economists had expected. This is the highest annual rate in more than a year and comes at a time when both households and businesses are facing a mix of rising costs.
The increase was largely driven by higher water, gas and electricity bills, many of which rose on 1 April. Water and sewerage prices alone increased by over 26%, the sharpest rise in nearly four decades. Airfare and holiday prices also jumped compared to last year, though that rise is expected to be temporary due to the timing of Easter.
For businesses, April also brought higher running costs, including the rise in the National Minimum Wage and an increase in employer National Insurance contributions, both of which are believed to have contributed to a rise in services inflation, which reached 5.4%.
Core inflation – which excludes volatile food and energy prices – also came in higher than expected, suggesting price pressures are more widespread than a few short-term changes.
The Bank of England’s inflation target remains at 2%, and before April’s figures, many were expecting two further interest rate cuts this year. However, some economists now believe only one may happen, with the Bank likely to take a more cautious approach.
In its last report, the Bank of England outlined its expectations that inflation would peak at 3.7% later this year before slowly easing. However, the Bank’s Chief Economist, Huw Pill, recently said that he feared the momentum behind falling inflation had started to stutter.
For now, many businesses will need to manage the impact of higher wage and operating costs alongside ongoing uncertainty over interest rates and consumer confidence.
When costs are rising it is crucial to understand how they are likely to affect your business profitability. If you would like help in analysing your business costs and advice on how to maintain profitability, please get in touch at any time. We are here to help you! See: https://www.bbc.co.uk/news/articles/cx2xx4n1xx0o
Refunds Available for Incomplete Debt Relief Order Applications
The Insolvency Service has confirmed that approximately 4,000 individuals may still be entitled to refunds for payments made towards Debt Relief Order (DRO) applications that were not completed.
Prior to April 2024, individuals were required to pay a £90 when applying for a DRO. In some cases, the individual paid the fee but never finalised their application. The government scrapped the fee in April 2024 meaning that the Insolvency Service was left holding around £500,000 for these incomplete applications.
As a result, the Insolvency Service is looking to refund these fees and since March 2025, around £65,000 has been refunded to applicants.
Letters have been sent to 5,000 people with 1,000 responding so far. A second round of letters is planned. However, if you feel you are due a refund for making a DRO payment but not submitting a DRO application, then you can contact the Insolvency Service directly without waiting for a letter.
Required information
The information you will need to provide includes:
- The Debt Relief Order application number (if known)
- Your name
- Your address
- Your telephone number
- Your bank/building society name
- The name on your bank account
- Your bank account number
- Your bank sort code
- Your building society roll number (if applicable)
The Insolvency Service will compare the information provided against their records before releasing the refund.
If you would prefer to receive the refund by cheque, simply state this in your email or letter.
How to contact the Insolvency Service
You can email or write to the Insolvency Service with your details using the details below:
Email:
Postal address: The Insolvency Service DRO Team, C/O Met Office, Fitzroy Road, Exeter, EX1 3PB