Business news 12 February 2026
Small firms are facing pressures comparable to the pandemic — but without the emergency support. £112bn in unpaid invoices. 38 SMEs closing daily due to late payment. GDP growth just 0.1%. Business investment falling. Meanwhile, markets hit record highs.The gap between headline optimism and SME cashflow reality is widening.
James Salmon, Operations Director.
Small firms face pandemic-level pressures as late payments soar
Small businesses are operating under pressures comparable to the Covid pandemic, according to the House of Commons Business and Trade Committee. MPs heard repeated evidence of firms struggling with rising employer National Insurance contributions, energy costs that remain close to double pre-2022 levels, complex VAT thresholds, retail crime, and business rates burdens. However, one issue stood out above the rest: late payment.
Research cited by the committee (from Sage) suggests UK small businesses are owed £112bn in unpaid invoices. Nearly half of invoices are paid late, even with 60–90 day terms now common in sectors such as construction. Around 38 small suppliers are estimated to close every day as a direct result of late payment practices. Unlike during the pandemic, there is currently no emergency-style framework to offset these systemic pressures.
MPs are calling for enforceable measures to tackle persistent late payers, mandatory transparency across supply chains, VAT reform to remove growth “cliff edges,” fairer business rates, targeted SME energy support and stronger policing of retail crime. Liam Byrne MP warned that without coherent action, current conditions risk accelerating closures and hollowing out high streets.
Why it matters: When customers delay payment in a low-growth environment, SMEs effectively become lenders of last resort — increasing bad debt risk, reducing liquidity and raising the likelihood of insolvency.
CPA Opinion
Transparency alone will not stop late payment. The issue is not a lack of reporting — it is a lack of consequence.
Many businesses use extended payment as an informal, interest-free source of working capital. As long as paying late remains cheaper than borrowing, behaviour will not materially change.
Real reform must make late payment financially disadvantageous. Until then, SMEs will continue to carry the burden.
CPA has long argued that statutory late payment compensation levels, set in 1998, should be increased to reflect today’s costs, and that enforcement should be simplified — if not made automatic — to ensure the rules genuinely influence behaviour.
GDP grows just 0.1% as investment shrinks
The UK economy expanded by just 0.1% in the fourth quarter of 2025, undershooting expectations and confirming a loss of momentum in the second half of the year. Services — the backbone of the economy — failed to grow for the first time in more than two years, while construction contracted by 2.1%, its worst quarterly performance in four years.
Business investment fell sharply by 2.7%, highlighting weak corporate confidence. Industrial production and manufacturing output both rose just 0.5% year-on-year in December, significantly below forecasts. Government spending rose 0.4%, helping prevent contraction, while consumer spending remained subdued at 0.2%.
For 2025 as a whole, growth reached 1.3%, but the pattern was uneven, with a stronger first half followed by stagnation.
Why it matters: Weak investment and stagnant services suggest customers may delay projects and payments, while SMEs face rising costs without strong demand growth to offset them.
Retail and manufacturing strain deepens
Fashion retailer LK Bennett has entered administration owing more than £30m, with unsecured creditors facing limited recovery prospects. Children’s bike manufacturer Frog Bikes has filed notice of intention to appoint administrators, citing higher employment taxes, Brexit-related friction and weak consumer demand. Rocket manufacturer Orbex is also preparing to appoint administrators after funding shortfalls.
London property shows mixed signals
London’s office market staged a strong recovery in 2025, with 14 lettings over 100,000 sq ft and 19 investment deals above £100m. Net absorption approached 4m sq ft, the strongest since 2018, reflecting improved lending conditions and returning investor confidence.
Meanwhile, RICS reported that London house price expectations edged into positive territory for the first time in over a year, although near-term sales expectations across the UK softened. In Wales, governments are exploring a vacant land tax aimed at unlocking stalled residential development sites.
Corporate and political developments
Nuveen is acquiring Schroders in a £9.9bn deal, creating a global asset management giant with nearly $2.5 trillion under management. The Schroders brand will remain, with London serving as the group’s largest non-US hub.
The Liberal Democrats have proposed dismantling the Treasury in favour of a new Department for Growth, separating economic strategy from public spending oversight.
Market Snapshot
Global markets reacted to strong US labour data and ongoing AI-driven sector rotation.
UK & Europe
The FTSE 100 closed at a record 10,472.11 (+1.1%) and traded higher this morning at 10,515.49. Gains were led by AstraZeneca (+4.6%) and Antofagasta (+6.1%), supported by strong US jobs data and commodity strength.
The STOXX 600 edged up to 624.89, with oil and gas stocks leading. Siemens Energy surged on robust demand for power-grid infrastructure.
The DAX recovered to 25,176.91 despite earlier weakness, while the CAC 40 stood at 8,396.42.
US
The S&P 500 closed broadly flat at 6,941.47 after initially rallying on January’s nonfarm payrolls report (+130,000 jobs). The Dow Jones slipped to 50,121.40, while the Nasdaq rose to 23,066.47.
Strong employment data reduced expectations of near-term Federal Reserve rate cuts, pushing bond yields higher and creating volatility in financial and technology stocks amid AI disruption concerns.
Asia
Japan’s Nikkei climbed to 57,440, supported by political stability following Prime Minister Takaichi’s election win. Hong Kong’s Hang Seng fell 0.9% to 27,032 amid continued Chinese consumer weakness.
Currencies
Sterling weakened after the soft GDP print.
GBP/USD: ~1.3653
GBP/EUR: ~1.1484
The yen strengthened on expectations of further Bank of Japan tightening.
Commodities
Brent crude: $69.24
WTI crude: $64.54
Oil rose around 2% on US–Iran tension risk.
Gold climbed to $5,072 per ounce, supported by geopolitical uncertainty and strong central bank demand. Copper firmed on improved industrial demand signals.
Overall driver theme: Strong US jobs data reduced rate-cut expectations, boosting equities tied to growth and commodities, while AI displacement concerns and geopolitical risks created sector volatility.
Insolvency Notices
Appointment of Administrators
- CITIHOME GLASGOW LTD
- FAIRACRE (ASHTON) CAR PARK LIMITED
Appointment of Liquidators
- 4 QUARTERS CONSULTANCY LTD
- APPLIED SERVICE MANAGEMENT GLOBAL LIMITED
- BALDWIN & HARRISON LIMITED
- BLACKCLIP LIMITED
- CAPITA DUBAI LIMITED
- CHASSIS AUTONOMY LIMITED
- CHESHIRE LOCAL BUSINESS LIMITED
- CLACLAC LIMITED
- COMPUTERLAND UK LIMITED
- CREST EMPLOYMENT SERVICES LIMITED
- DUNLOP AUSTRALIA LIMITED
- ECLIPSE SHIPPING LIMITED
- FLOATDATA LIMITED
- FOXWELL RETAIL CONSULTING LTD
- HARDLYTRADING LIMITED
- HAYDEN MARTIN LIMITED
- IPM PROJECT CONSULTING LIMITED
- JAMES FOX HOLDINGS LTD
- JEREMY DRAKE CONSULTANCY LIMITED
- KGS MANAGEMENT LTD
- LEEDS CULTURE TRUST
- LION STEEL EQUIPMENT LIMITED
- MCRW HOLDINGS LIMITED
- OLD SHIRE FARM FOODS LIMITED
- PRD DEVELOPMENTS (SUFFOLK) LTD
- PRITEL BUSINESS LIMITED
- RBGM LIMITED
- REPLAY BIOTECHNOLOGY UK LIMITED
- SABEAR LIMITED
- SHELLEY DESIGN ENGINEERING LIMITED
- SSD MIDLANDS LIMITED
- STAMFORD COUNTRY INNS LIMITED
- TLC ENVIRONMENTAL SERVICES LTD
- VINOD VIJH LIMITED
- WOODWARD ELECTRICAL SERVICES LIMITED
- WOODSIDE HOLDING LTD
Petitions to Wind Up
- A E STANTON LIMITED
- BLUEROCK HEALTH LTD
- CONSTRUCTION HELP LINE LIMITED
- DUNHILL SECURITY LTD
- HODGSON HOUSE LTD
- PWE CONTRACTING LIMITED
- RJ PLANT & CONSTRUCTION LIMITED
- THREE LITTLE PIGS CATERING LTD
- VERDE NAVITAS SOLUTIONS LTD
Winding Up Order
How CPA membership could help in a late payment crisis
When margins are tight and growth is subdued, unpaid invoices become dangerous quickly. The earlier action is taken, the greater the chance of full recovery.
CPA helps Members recover overdue debts ethically and efficiently while protecting customer relationships. With structured escalation, credit intelligence and early intervention, we help stop invoices ageing into write-offs.
If late payment is rising in your sector, now is the time to strengthen your credit control process.
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.