Business news 10 December 2025
Today’s news paints a picture of mounting pressure on UK households and businesses as tax burdens rise, mortgage risks increase and regulatory scrutiny intensifies. With major central bank decisions pending on both sides of the Atlantic, financial conditions remain unpredictable. For SMEs trading on credit, today’s developments underline a familiar theme: tighter household budgets, higher operating costs and increasing uncertainty around customer payment behaviour.
James Salmon, Operations Director.
Tax News
OECD warns UK tax burden among highest
The OECD reports that UK property taxes are now the fourth highest in the developed world, totalling 10.5 percent of GDP versus an OECD average of 5.1 percent. The overall UK tax burden is expected to climb to 38.3 percent by 2031, the highest in modern UK history.
Why it matters: Higher property and income taxes reduce disposable cashflow for households and increase fixed operating costs for SMEs.
Public concern over tax levels rises
A YouGov poll shows 45 percent of Britons believe taxes and public spending have become excessive, the highest dissatisfaction since 2019.
Why it matters: Lower consumer confidence affects demand and increases payment delays for credit-based businesses.
Economic Stories
Fed expected to cut rates today but outlook uncertain
The Federal Reserve is expected to announce a quarter-point rate cut later today, but deep divisions within the committee mean no clear guidance is likely for 2026. Chair Jerome Powell’s term ends in May, and Kevin Hassett is widely viewed as the frontrunner to replace him.
Why it matters: Global interest-rate uncertainty influences UK borrowing costs and impacts SME loan affordability.
Bank of England says Budget will reduce inflation
The Bank of England told MPs that Budget measures will trim headline inflation by 0.5 percentage points by mid-2026. However, officials warned that strong inflation expectations among firms and consumers remain a threat. Markets expect a rate cut from 4 percent to 3.75 percent next week.
Why it matters: Lower inflation helps ease input costs, but persistent expectations mean pricing pressures could continue.
Wealth inequality reaches extreme levels
The World Inequality Report finds that the top 10 percent earn more than the remaining 90 percent combined, while the poorest half hold less than 10 percent of global earnings.
Why it matters: Inequality suppresses broad-based consumer spending, posing a challenge for SMEs reliant on mass-market customers.
Business Stories
High-risk mortgages hit highest level since 2008
The Bank of England reports that 7.4 percent of all new mortgages now have deposits below 10 percent, the highest proportion since before the financial crisis. Long mortgage terms and a surge in new lending underline growing affordability problems.
Why it matters: Higher mortgage burdens reduce consumer spending and increase credit risk for SMEs.
Mortgage lenders begin pre-Christmas rate war
More than 20 lenders, including major high-street banks, have cut rates ahead of an expected Bank Rate reduction. Two-year fixes now start around 3.5 to 3.7 percent, the lowest since before the 2022 mini-Budget.
Why it matters: Lower rates may improve household cashflow in time, but near-term uncertainty can still lead to late payments.
Auditor resigns from Liberty Steel subsidiary
Audit firm MHA has resigned from Clydesdale Engineering, part of the GFG Alliance, amid ongoing Serious Fraud Office investigations into the wider group.
Why it matters: Suppliers to GFG-linked companies should monitor credit exposure closely.
SpaceX reportedly preparing a major 2026 IPO
SpaceX is said to be advancing plans to raise more than 30 billion dollars in a 2026 initial public offering, one of the largest tech listings ever.
Why it matters: Large global IPOs can improve investor sentiment and benefit UK growth companies seeking capital.
EU investigates Google over AI search summaries
The European Commission has begun examining whether Google’s AI-generated search summaries breach competition law, particularly around using website and YouTube content without sufficient compensation or opt-out capability.
Why it matters: Changes to search visibility may affect SME website traffic and digital lead generation.
Tax and Government
Badenoch warns tax thresholds will rise to fund welfare
Kemi Badenoch claims that scrapping the two-child benefit cap, costing 3.2 billion pounds annually, will lead to higher taxes through frozen thresholds. She warns that current welfare levels amount to “economic suicide”.
Why it matters: Rising tax pressure reduces consumer spending capacity and raises wage expectations.
Government targets corruption “enablers”
A new anti-corruption strategy aims to strengthen police powers to pursue corrupt lawyers, accountants and bankers. Whistleblowers may be financially rewarded for reporting tax evasion.
Why it matters: SMEs should expect tighter compliance checks across professional services.
Other News
Pandemic fraud losses largely unrecoverable
A new report estimates that 10.9 billion pounds of pandemic-related fraud and error is unlikely to be recovered. Only 1.8 billion pounds has been reclaimed so far, with widespread failures identified in emergency schemes including Bounce Back Loans.
Why it matters: Future government support schemes may include much stricter verification, slowing access to emergency funding.
Market Summary:
Global markets were steady but cautious ahead of the Federal Reserve decision.
Equities
The FTSE 100 rose 0.36 percent to 9,676.77, outperforming other major markets. The S&P 500 slipped 0.09 percent to 6,840.51, while the Nasdaq held modest gains. The Euro Stoxx 50 declined 0.22 percent.
Key Market Drivers
• Investors priced in an 89 percent chance of a US rate cut.
• UK banks continued their strong 2025 performance, with Lloyds up 75.8 percent this year, Barclays up 65 percent and NatWest up 56 percent.
• Ares Management surged after being added to the S&P 500.
• UBS warned that options positioning could amplify downside volatility if US equities fall next week.
Commodities
Oil prices weakened, with WTI down to 58.25 dollars per barrel and Brent at 61.94 dollars. Gold traded above 4,208 dollars per ounce. Copper saw its largest one-day fall in over a month. The Bloomberg Commodity Index rose slightly to 109.744.
Currencies
Sterling gained against the dollar, reaching 1.3327, while easing slightly against the euro at 1.1449. The US dollar softened ahead of the Fed meeting. EUR/USD rose 0.1 percent.
UK gilt yields fell 2–3 basis points as Bank of England officials backed market expectations of rate cuts.
Insolvency Notices
Appointments of Administrators
• Engage Locums Ltd
• Pilgrims of March Limited
• Wave Studios Limited
Appointments of Liquidators
• Accuit Ltd
• Caissa Solutions Ltd
• Canterbury Finance No.2 PLC
• Canterbury Finance No.3 PLC
• Chancery House London Nominee 1 Limited
• Cosmique Apps Ltd
• Deutsche Alternative Asset Management (UK) Limited
• Hardowar Ltd
• K Singh Gill Limited
• Kingston Bishop Limited
• PMGR Securities 2025 PLC
• Practical Solutions (GB) Limited
• Premier Miton Global Renewables Trust PLC
• Precise Mortgage Funding 2020-1B PLC
• PSC Credit Holdings LLP
• Southcrest Manor LLP
• T-Impact Limited
• Tantalum Consulting Limited
• Tenacity Wealth Management Limited
• The Thistle Trust
• Thingthing Ltd
• Tim Lee Family Investment Company Limited
• Tower Roadhouses Limited
Winding-Up Petitions
• Acctura Services Ltd
• Augustus Adams Ltd
• Gunning Transmission and Distribution Services Limited
• Insight Consulting (NI) Limited
• Project Zero WF CIC
• Roba Property Management Limited
• Udny Arms Hotel Ltd
• Windows 2000 Belfast Limited
CPA Membership
Late payments are not just an irritation — they are a direct threat to cashflow, staff wages and your ability to grow. If you have customers who habitually delay or avoid payment, our CreditCare monitoring and recovery teams can step in before debts become unmanageable. To discuss how we can help protect your business, just call Peter Uwins, CPA’s National Sales Manager, on️ 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,