UK Business Insights: Key Developments as of May 12, 2025

1. UK-India Free Trade Agreement: Expanding Horizons for British Businesses

The UK and India have finalized a landmark free trade agreement, anticipated to boost bilateral trade by £25.5 billion annually by 2040. This deal significantly reduces tariffs on various UK exports, including whisky, gin, aerospace components, electricals, medical devices, cosmetics, and food products like lamb, salmon, chocolate, and biscuits. For instance, whisky tariffs will be halved from 150% to 75%, with further reductions planned. Indian exports will also benefit from reduced UK tariffs on clothing, footwear, jewellery, and certain food items. Additionally, the agreement enhances access for UK firms in services and public procurement and includes a three-year exemption from double social security payments for Indian nationals on short-term UK work visas.

For more details, visit here

2. Planning and Infrastructure Bill: Potential Economic Boost

The UK government’s Planning and Infrastructure Bill aims to streamline planning processes and accelerate infrastructure development. An impact assessment estimates that the reforms could contribute up to £7.5 billion to the economy over the next decade, with central estimates of around £3.2 billion. The bill seeks to reduce red tape and expedite decision-making for projects like housing, roads, railways, and renewable energy developments. While the reforms promise economic benefits, some environmental groups have raised concerns about potential impacts on environmental protections.

Read the full impact assessment here.

3. UK-US Trade Deal: Navigating New Opportunities and Challenges

The UK and US have reached a new trade agreement that addresses recent tariff disputes. Key provisions include the elimination of US tariffs on British steel, aluminium, and cars and the removal of the UK’s 19% tariff on American ethanol imports. While the deal opens up opportunities for various sectors, UK bioethanol producers have expressed concerns about increased competition from US imports, potentially threatening domestic production and jobs.

For an overview of the agreement, here

4. Tax-Free Childcare: Supporting Working Families

The government’s Tax-Free Childcare scheme offers working parents up to £2,000 per year per child to help with childcare costs, increasing to £4,000 for disabled children. Eligible families can receive a £2 government contribution for every £8 they pay into a dedicated childcare account. This support applies to children under 12 or under 17 if disabled and can be used for various approved childcare providers.

Employers can assist by informing staff about this scheme. More information is available on the GOV.UK website.

5. The King’s Awards for Enterprise: Celebrating Business Excellence

In 2025, 197 UK businesses have been honoured with The King’s Awards for Enterprise, recognizing outstanding achievements in international trade, innovation, sustainable development, and promoting opportunity through social mobility. Notably, 176 of these are small or medium-sized enterprises, highlighting the significant contributions of SMEs to the UK economy.

For a list of winners and more details, visit the official announcement.

Need Guidance?

If you have questions about how these developments may impact your business or require assistance in navigating these changes, feel free to contact Naseems Accountants. We’re here to support you in making informed decisions.