Business news 12 December 2025
The UK Economy unexpectedly contracted in the three months to October, according to official figures released Friday. It follows a 0.1% expansion over the three months to September. Economists had expected 0% growth over the period. The Office for Statistics noted that services output stalled, construction output fell 0.3% and production output fell 0.5% “largely because of a fall in the manufacture of motor vehicles, trailers and semi-trailers in this period.”
James Salmon, Operations Director.
SME, Tax & Credit Risk
Chancellor’s tax U-turn branded a “glaring error”
Dame Meg Hillier has criticised the Chancellor’s handling of income tax plans, warning that mixed signals ahead of the Budget left businesses “confused or annoyed.”
Why it matters: Policy uncertainty makes it harder for SMEs to plan pricing, margins and credit terms with confidence.
Tax rises threaten jobs and growth, warns CBI
The CBI says early-2025 momentum has faded, blaming high taxes, energy costs and a complex tax regime for stalling investment.
Why it matters: Slower growth and squeezed margins increase late-payment risk across supply chains.
Investors brace for £144bn capital gains tax hit
Treasury forecasts suggest a surge in CGT receipts as investors and second-home owners sell assets.
Why it matters: Asset sell-offs often signal caution, reducing liquidity and increasing payment delays for suppliers.
Economy
UK economy unexpectedly contracts
The UK economy shrank in the three months to October, following modest growth previously. Services stalled, construction fell 0.3% and production dropped 0.5%, driven by weaker vehicle manufacturing.
Why it matters: A contracting economy raises insolvency risk among customers, making credit checks and monitoring essential.
Bank brands Budget “monumentally mishandled”
London-listed lender S&U said recent Budget measures have dampened consumer confidence and failed to drive growth.
Why it matters: Weaker confidence can quickly translate into slower payments and higher bad-debt exposure.
Leisure & Hospitality
Pub industry pleads for urgent tax relief
Industry leaders warn higher business rates could trigger 15,000 job losses and widespread closures.
Why it matters: Hospitality suppliers face elevated credit risk as venues struggle with rising fixed costs.
Chancellor’s business rates claim questioned
UKHospitality says pub rates could rise by 15%, far higher than initially suggested by the Treasury.
Why it matters: Unexpected cost increases often lead to stretched payment terms or non-payment.
Financial Services
FCA plans targeted support for 18m savers
The FCA will allow consumers to access tailored investment guidance without full financial assessments.
Why it matters: Improved financial decision-making may support longer-term stability, but short-term risks remain.
Corporate & HMRC
Auditor queried source of funds at Gupta-owned firm
MHA resigned as auditor of a Liberty Steel Group company after concerns over intercompany transactions.
Why it matters: Weak governance is a warning sign for suppliers offering credit.
HMRC whistleblower rewards not a “guaranteed win”
A new scheme aims to recover unpaid tax but carries risks for informants and uncertain outcomes.
Why it matters: Aggressive tax enforcement can push already-stretched businesses into distress.
Retail
Brits set for festive spending boost
Consumers are expected to spend £24.6bn this Christmas, up 3.5% year-on-year.
Why it matters: Seasonal sales help cashflow, but credit exposure rises sharply if customers over-extend.
Market snapshot
UK economic growth has slipped into contraction, undermining confidence. Equity markets remain fragile as investors weigh weaker growth against higher tax expectations. Sterling is under pressure against both the dollar and the euro as growth forecasts soften. Overall sentiment remains cautious, with businesses and investors looking for clearer policy direction.
Insolvency notices
Appointment of Administrators
- HCP (Levington) Ltd
- Jealous Sweets Limited
- Sensory International Limited
Appointment of Liquidators
- Amalgamated Tobacco Company Limited
- Chandler Rogers Estate Agents Ltd
- Clover Financial Management Ltd
- Coastal Clear Water Limited
- Dardanella Ltd
- Devices2015 Limited
- Duvas Technologies Limited
- GA Inns Limited
- J G L Properties Limited
- Jenny Schiller Mental Health Consultancy Limited
- JTL Investments Limited
- Kingfisher Design and Management Ltd
- Kraftworks Scotland Ltd
- Lee Earing Engineering Solutions Limited
- Leom Investments Limited
- Mark Harris (Holdings) Limited
- North West Containers Limited
- Propeller Theatre Company Limited
- RKD Reg Solutions Limited
- RTJ Property Holdings Limited
- Staffordshire Holdings Limited
- Strathern & Sons Ltd
- The View Cafe Ltd
- Vicim Limited
- Vipond Fire Protection Limited
Petitions to Wind Up
- AV Cargo Airlines Limited
- Award Group Limited
- Bradshaw Builders Limited
- Crussh Retail (Fulham Road) Limited
- Dog Consultancy Ltd
- Eirscot Engineering Limited
- Green & Frederick Limited
- J&W Harris Limited
- KMC Food Group Limited
- Modbay Limited
- Montagu & Co. Ltd
- Saif Social and Health Care Homes Ltd
- Saint Property Services Ltd
- Trusko Residential Ltd
- Valentine London Ltd
- Ward & Sons Roofing & Building Ltd
Winding-up Orders
CPA member focus – protect your cashflow
Late payments rise fastest when confidence falls. CPA members use CreditCare reports, continuous monitoring and overdue account recovery to spot risk early and get paid faster — all included in a fixed annual subscription.
Call 020 8846 0000 to discuss how CPA can help keep your cash moving, even when the economy isn’t.
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.
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