Business news 1 October 2025

The UK enters October with business confidence at historic lows, mounting speculation over a stealth tax raid, and households under sustained financial strain. While the FTSE 100 hit fresh records, insolvencies continue to climb and global uncertainty is fuelled by the US government shutdown.

James Salmon, Operations Director.

Top stories for SMEs

Business confidence collapses

The Institute of Directors reports UK business confidence fell to a record -74 in September, with fears of higher taxes stifling investment and growth. A third of firms expect to cut jobs. ICAEW echoed this, flagging a three-year low in London and calling for stability on business taxation.

Economic news

GDP: The UK economy grew 0.3% in Q2, down from 0.7% in Q1, with annual growth at 1.4%. Economists describe the outlook as “subdued but not stalling,” with PwC projecting full-year growth of around 1.3% in 2025.

Inflation: Bank of England deputy governor Sarah Breeden says inflation holding near 4% is a temporary “hump,” not a derailment of the disinflation path. She warned that keeping rates too high could drag inflation below the 2% target into 2026.

Tax freeze could mean stealth raid

While the Chancellor has ruled out rises in income tax, VAT or National Insurance, analysts warn the freeze on the £12,570 personal allowance may be extended, costing workers £140 a year and raising £7.5bn for the Treasury. This would continue the “fiscal drag” squeezing both households and employers.

Regulatory relief promised

The FCA will relax consumer duty rules for banks and brokers after Chancellor Reeves pushed for lighter regulation. Business Secretary Peter Kyle also vowed to cut red tape by 25%, admitting deregulation carries risks but warning inaction is worse.

Jobs market under strain

Hays UK & Ireland warns rising costs, tax hikes and wage pressures are pushing firms toward automation and offshoring, reducing Britain’s attractiveness for permanent hires.

Housing market split

HMRC reported a slowdown in August transactions, but Nationwide said house prices rebounded 0.5% in September, with annual growth at 2.2%. Buyers are said to be waiting for clarity on the Budget and potential tax changes.

Households under pressure

Research shows households are £244 worse off per month than a year ago, with 60% cutting non-essential spending. BNPL usage among over-55s has doubled, while cash use has fallen to a record low of 9% of transactions.

Pension crisis for Gen Z

Rathbones estimates workers in their 20s now need £3.1m for a comfortable retirement, more than double earlier forecasts, highlighting the inflationary squeeze on long-term savings.

Global spotlight: US shutdown

America’s federal government has shut down for the first time in nearly seven years, with hundreds of thousands of workers furloughed. Markets are volatile as gold surges to record highs.

Tech: OpenAI launches Sora 2

OpenAI has unveiled Sora 2, an AI video model capable of creating hyper-realistic clips, alongside a new app resembling TikTok. It launches in North America via invitation.

Market snapshot

  • FTSE 100: Opened up 0.4% at 9,389.29, hitting a new intra-day record
  • Stoxx 600: Best September since 2019 (+1.5%), but down 0.3% in early trading
  • S&P 500: +0.41% Tuesday; up 7.8% in Q3 (best quarter since 2021)
  • Nasdaq: +11.2% in Q3, strongest in 15 years
  • Gold: New record $3,904.10 on safe-haven demand
  • Oil: Brent near $66, WTI below $63, outlook weak on oversupply
  • Currencies: Dollar Index down 0.25% on shutdown; GBP/USD at 1.3480 weekly high

Insolvency notices

Appointments of Administrators:

  • GIBSON HOUSE (WIRRAL) LIMITED
  • INSTINCTIF PARTNERS LIMITED
  • NEXUS UTILITIES LIMITED
  • PL LONDON LTD
  • SCOTT GROUP RENEWABLES (UK) LIMITED
  • STORELAB LTD

Appointments of Liquidators:

  • 1982 CONSULTING LTD
  • A MEDICARE LTD
  • AESCLEPIUS CONSULTING LIMITED
  • ANNA SHAH CONSULTANCY LIMITED
  • ARC SOLUTIONS LTD
  • CAD FARM SERVICES LIMITED
  • CDG SERVICES LTD
  • CHARLTON VALE SOFTWARE LTD
  • CLEARPAY (EUROPE) LIMITED
  • CLEARPAY (INTERNATIONAL) LIMITED
  • ELMDEER LIMITED
  • FACADE ENGINE LIMITED
  • FRODSHAMS SOLICITORS LIMITED
  • GILLARDS FARMS LIMITED
  • GOOLE WELDING LIMITED
  • GRESHAM RECEIVABLES (NO.39) UK LIMITED
  • GRESHAM RECEIVABLES (NO.44) UK LIMITED
  • GRESHAM RECEIVABLES (NO.46) UK LIMITED
  • HAC HOLDINGS (WALES) LIMITED
  • HIDING LTD
  • HL STRUCTURAL ENGINEERS LIMITED
  • IXMETALS LTD
  • KAMTEER CONSULTING LIMITED
  • KAYMAR LTD
  • KEOS AVIATION UK LIMITED
  • KIN + CARTA LIMITED
  • LUCY CHRISTOPHER DESIGN LTD
  • MASLOW CAPITAL LLP
  • MELSTORE LIMITED
  • OUTSPAN LTD
  • PATISSERIE SAINTE-ANNE LIMITED
  • PINASTER PROPERTIES LIMITED
  • PLAYMONSTER UK LTD
  • POLARIS 2021-1 PLC
  • POLARIS 2022-2 PLC
  • Q.E.D. ENVIRONMENTAL SYSTEMS LIMITED
  • REGSAAS LTD
  • RIVERBANK TECHNOLOGIES LTD
  • RUSSELL BEAUMONT ASSOCIATES LIMITED
  • SAMMIE FERN LTD
  • SEAGEN U.K. LTD.
  • SHELBOURNE, LETHERBY & CO. LIMITED
  • SSCN SOLUTIONS LIMITED
  • STEELMIN SEE LIMITED
  • TRAGAIL PROPERTIES LIMITED
  • TRELLEBORG STANTON LIMITED
  • TRISTAR RECEIVABLES LIMITED
  • VGROW LIMITED

Petitions to Wind Up (Companies):

  • AARON’S OF WICK LIMITED
  • ACCENT CLOTHING LIMITED
  • C A BURKE CONSTRUCTION LIMITED
  • FLANIGAN PROJECTS LIMITED
  • KAM WA CATERING LIMITED
  • PJM CONSTRUCTION NW LIMITED
  • SUNNA TRADERS LTD

CPA Membership – October spotlight

Cash flow is king. With confidence at record lows and insolvencies rising, now is the time to protect your business from late payment risks. CPA members gain access to expert debt collection, credit checks, and support designed to keep cash flowing.

Join today and strengthen your cash flow

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.