Business news 10 February 2026

UK businesses are operating in a more fragile environment despite pockets of resilience. Retail spending rebounded in January, markets remain broadly supportive, and global investment continues at scale. However, political instability, rising borrowing costs, regulatory pressure and a growing insolvency list underline the risks for SMEs — particularly those supplying goods and services on credit.

James Salmon, Operations Director.

SME-focused stories

Retail sales rebound, but margins remain under strain

UK retail sales rose by 2.7% in January, according to the British Retail Consortium and KPMG, as consumers responded to heavy post-Christmas discounting. Personal electronics and children’s items led the recovery after a weak December. Despite the uplift, the Office for National Statistics reports sales remain 1.5% below pre-pandemic levels, highlighting an uneven recovery.

Why it matters:
Discount-led sales improve turnover but tighten cashflow, increasing the likelihood of delayed payments to suppliers even when headline sales appear strong.

Pub sector warns of rising financial distress

Wetherspoon boss Sir Tim Martin has backed proposals to cut VAT, beer duty and employers’ National Insurance contributions, echoing similar comments from Fuller’s chief earlier in the week. Accountancy firm Price Bailey reports that one in eight pubs is now in severe financial distress, despite targeted government support.

Why it matters:
Hospitality businesses under cost pressure often stretch supplier terms first, raising late-payment and insolvency risk for food, drink, trade and service suppliers.

SMEs face potential £680m cost burden from union access plans

Analysis cited by the Telegraph suggests Labour’s proposal to give trade unions statutory workplace access could cost small businesses £680m. Employers could face fines of up to £150,000 for repeated breaches. The Adam Smith Institute has called for SMEs to be exempt, a view echoed by politicians across parties.

Why it matters:
Higher compliance costs reduce cash buffers, leaving SMEs more exposed when customers delay payment or default.

Tax, government & policy

Public appetite for tax and spending cuts grows

The latest British Social Attitudes report shows a record 19% of the public now support cutting both taxes and public spending, while 60% oppose any further tax rises. Sir John Curtice noted that both public spending and taxation are at post-war highs, creating political pressure for restraint.

Budget leak fallout raises policy uncertainty

A National Cyber Security Centre report revealed that November’s Budget documents were accessed nearly 25,000 times before release. The breach led to the resignation of the OBR chair and tighter controls around fiscal forecasts, with evaluation dates now being kept secret.

Markets & FX

Sterling steadies, borrowing costs rise

Sterling stabilised after Cabinet support for the Prime Minister, rising to $1.3680, but weakened against the euro at €1.1484. Gilt yields moved higher, with the 10-year at 4.53% and the 30-year at 5.35%, pointing to persistently high borrowing costs.

Why it matters:
Higher yields feed through to more expensive business finance, while currency volatility encourages customers to hold cash longer.

Political and rate risks weigh on the pound

Short-dated currency markets show growing demand for protection against further sterling weakness. Political uncertainty and signals that the Bank of England could cut rates as early as March have made UK assets less attractive to investors.

Global & corporate news

Alphabet turns to debt markets to fund AI expansion

Alphabet is reportedly raising $20bn through a bond sale and exploring a rare 100-year bond, as it plans capital expenditure of up to $185bn this year on AI and data centres.

NatWest confirms £2.7bn Evelyn Partners acquisition

NatWest has confirmed its acquisition of Evelyn Partners for £2.7bn, combining £128bn in assets under management. The bank expects a 20% boost in fee income and £100m in annual cost savings.

Commodities & sentiment

Gold surge signals global caution

Gold jumped $85 per ounce to $5,051 after reports that China has asked banks to reduce exposure to US Treasuries, reinforcing gold’s role as a reserve asset. Silver also rose sharply, lifting mining shares.

Why it matters:
A flight to safe assets often coincides with tighter liquidity and slower payments across supply chains.

Market Wrap

Markets & confidence
UK and European shares pushed higher, helped by industrials and tech, which points to improving sentiment rather than real-world relief just yet. For small firms, this is encouraging but still fragile — equity optimism hasn’t filtered through to faster customer payments or easier trading conditions.

Sterling under pressure
The pound weakened again, particularly against the euro, as political uncertainty around the Prime Minister rattled confidence.
Why it matters: A softer pound raises import costs and squeezes margins, while overseas customers may delay payment if currency volatility works in their favour.

Interest rate outlook still murky
Global markets are reacting to softer US jobs commentary and China’s reported pullback from US Treasuries. That’s pushing the dollar down and fuelling talk of future rate cuts — but nothing is imminent.
Why it matters: SMEs should not expect near-term borrowing relief. Cashflow discipline remains critical while rates stay elevated.

Oil and energy costs
Oil prices dipped on hopes of progress in US-Iran talks, before rebounding on renewed Middle East shipping concerns.
Why it matters: Energy costs remain unpredictable, making it harder for small firms to plan pricing — another reason customers may push payment terms or delay settlement.

Gold above $5,000 signals caution
Gold’s surge back above $5,000 shows investors are still hedging against uncertainty.
Why it matters: When big money stays defensive, late payment risk rises — especially from stretched customers protecting their own liquidity.

Summary

Global markets showed resilience overnight despite the China Treasury warning that dominated headlines. European cash sessions on Monday posted solid gains across the FTSE 100, DAX, and CAC 40, supported by industrials and technology names, though momentum faded by midday amid geopolitical concerns. Asian markets surged overnight, led by Japan’s record-breaking rally following Takaichi’s landslide election victory, while US futures edged lower after Friday’s AI-driven rally. The dollar’s extended decline—falling nearly 1% over two sessions—was the key overnight development, driven by China’s reported guidance to banks on reducing US Treasury exposure and softer US jobs commentary. This lifted all G-10 currencies, with the yen and Swiss franc rallying over 1%, though sterling lagged on UK political turmoil. Oil prices whipsawed on easing Iran tensions before recovering on renewed Strait of Hormuz concerns, while gold reclaimed the $5,000 level as safe-haven demand persisted.

Employment & skills

Apprenticeships gain momentum as degree alternative

With student debt rising, apprenticeships — including degree apprenticeships offered by major accountancy firms — are increasingly seen as a viable alternative to university. PwC ranks in the top tier of apprenticeship employers, with EY and KPMG also in the top 100.

Why it matters:
Training investment hits cashflow early, making reliable customer payments essential if SMEs are to compete for talent.

Insolvency notices

Petitions to wind up (Companies)

• AAA Child Day Care Limited
• CBW Building Services Ltd
• Koinkoin Ltd
• Manchester Shipping Limited
• Shah Property Management Ltd
• SSS Yorkshire Limited

Appointments of Administrators

• JFM1871 Limited
• Orion Retail Limited
• Reisser Limited
• Senapt Assets Limited
• Specialist Recruitment Solutions Limited
• Summit 2 Leisure Clubs Ltd
• Tarak International Limited
• Three Sixty Design Solutions Limited
• Westmont Systems Limited
• Zandra Systems Limited

Appointments of Liquidators

• AKH Project Solutions Limited
• Aldplaid Limited
• By Bright Ltd
• Castlewood Holdco Limited
• City IT PM Ltd
• DC Transformation Ltd
• Drilltech Limited
• DT & PS Rajan Medical Consultants Ltd
• EQT General Partner (Scotland) Limited
• Glanfield & Associates Wealth Management Ltd
• Greywicke Holdings Ltd
• Greywicke Ltd
• J.J. Sigmagraphics Limited
• Kaunsil Limited
• LL Health Ltd
• Maple Projects Ltd
• Martian Premier League Ltd
• MCN Technology Limited
• Mighall Consulting Ltd
• Pamraine Properties Limited
• Qmee Ltd
• Rebecca Jeneen Limited
• Scapa Cards and Gifts Limited
• Smallwood Business Consultants Limited
• T. Birch (Developments) (IW) Limited
• Taylor Wessing Services Limited

What CPA can do for you

Rising costs, political uncertainty and record insolvency volumes mean late payment risk is increasing across almost every sector. CPA helps Members monitor customers, act early on overdue invoices and protect cashflow before problems escalate.

To find out how CPA can help safeguard your cashflow, 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, Economical collections.