Business news 1 January 2026
As we begin a new year, we’d like to wish all our readers a healthy, successful and profitable 2026. With markets having wrapped up a strong but volatile 2025, and with many decision-makers now looking ahead rather than back, today’s update is intentionally light — a brief snapshot of where things stand as the year begins, and what may matter most for UK businesses trading on credit.
James Salmon, Operations Director.
Key Business & Economic Stories
Markets finish 2025 strongly despite a soft final session
Global markets ended the year on a subdued note, with shares, bonds and precious metals easing on the final trading day. The S&P 500 extended its post-Christmas decline but still closed 2025 up around 16%, marking a third consecutive year of double-digit gains. Investor returns over the year were driven largely by optimism around artificial intelligence and support from interest-rate cuts.
Why it matters:
Strong markets can mask underlying trading stress, meaning confidence at the top doesn’t always translate into better cash flow or faster payments for SMEs.
UK assets post their best year in more than a decade
Despite a weaker finish in late December, UK markets had a standout year. The FTSE All-Share recorded its strongest annual gain since 2009, helped by mining and commodities stocks. Gilts rallied across the curve, with 10-year yields ending the year lower, while sterling finished 2025 more than 7% higher against the dollar — its best annual performance since 2017.
Why it matters:
A stronger pound can help reduce import costs, but falling yields and market optimism do not guarantee improved trading conditions or payment behaviour.
Sterling slips into year-end as 2026 uncertainty looms
The pound weakened slightly in thin year-end trading, and some banks are now forecasting further pressure in 2026. Expectations of Bank of England rate cuts, alongside domestic political uncertainty, could weigh on sterling against both the dollar and the euro as the year unfolds.
Why it matters:
Currency weakness can squeeze margins for import-reliant businesses and add further pressure to already tight cash flow.
Starmer admits slow progress and promises change in 2026
Prime Minister Sir Keir Starmer acknowledged that his government has been too slow to deliver the change promised when Labour took office. He said 2026 would be a turning point, with households beginning to feel improvements in living costs, communities and the NHS. Starmer blamed the UK’s problems on years of underinvestment, warning that recovery would not be immediate.
Why it matters:
If improvements are slow to reach households, consumer spending and payment behaviour may remain fragile for much of the year ahead.
Insolvency Notices
Petitions to Wind Up (Companies)
Appointments of Liquidators
- TREDDEX LIMITED
- OCEAN HOLDINGS 1 LIMITED
- MICHAEL MURPHY & LIMITED
- XP HOLDING UK LTD
- XP INVESTMENTS UK LLP
Looking Ahead to 2026
Markets may have enjoyed a strong 2025, but the trading environment for many UK businesses remains challenging. Political uncertainty, cautious consumers and uneven cash flow are likely to remain themes in the early months of the year — making credit control and payment discipline as important as ever.
CPA Membership
As we head into 2026, now is a good time to review your credit terms, monitoring and collection processes. Whether you need clearer insight into a customer’s financial position or support recovering overdue accounts, CPA is here to help protect your cash flow and reduce risk before problems escalate.
Just call Peter Uwins, CPA’s National Sales Manager, on️ Monday when we return to our desks, 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