Business news 12 November 2025
Markets, Westminster and the business community were all shaken by a sharp rise in UK unemployment, intensifying expectations of both income tax increases and a possible Bank of England rate cut in December. Investor behaviour remains dominated by fiscal uncertainty ahead of Rachel Reeves’ Autumn Budget. For SMEs trading on credit, the combination of slowing demand, weaker labour data and tightening sentiment raises clear late-payment risks..
James Salmon, Operations Director.
SME-FOCUSED STORIES
Income tax hikes now viewed as “inevitable”
Financial advisers warn that the Government’s £30bn fiscal gap makes income tax the most likely revenue lever in the Budget.
Why it matters: Higher taxes reduce disposable income, which can directly weaken customer spending and worsen payment delays.
Public backlash intensifies over tax rises
A City AM poll shows 57% blame Government mismanagement for expected tax increases, and two-thirds say Reeves should resign if she raises income tax.
Why it matters: Negative sentiment leads to reduced confidence and slower payment behaviour.
Wealthy families missing inheritance tax planning opportunities
73% have not used their £3,000 annual gift allowance despite fears of IHT changes.
Why it matters: Cautious financial behaviour often mirrors wider consumer hesitancy — a concern for SMEs relying on discretionary spending.
ECONOMIC & LABOUR MARKET
Unemployment hits 5% — highest since 2021
ONS figures show a jump to 5% in the three months to September, with private-sector wage growth cooling to 4.2%.
Why it matters: A weakening labour market usually means slower sales and increased credit risk.
Economists warn that labour weakness may be overstated
Policymakers caution that changes in methodology may exaggerate the perceived slowdown.
Why it matters: SME planning becomes harder when headline indicators appear unreliable.
Interest rate cut increasingly likely in December
Markets now price a 75% chance of a cut, driven by rising unemployment and slowing wages.
Why it matters: A cut would ease borrowing costs for SMEs — but could also signal weakening demand.
MARKETS & CORPORATE
FTSE 100 sets fresh records as sterling weakens
London’s blue-chip index surged past 9,900, supported by a softer pound and expectations of a rate cut.
Why it matters: Strong FTSE performance helps large corporates, but bears little relation to SME conditions — which remain tight.
SoftBank sells entire Nvidia stake
SoftBank offloaded its Nvidia holding for $5.8bn to fund investment in OpenAI, and separately sold T-Mobile shares worth $9.2bn.
Why it matters: Big-tech repositioning affects overall market sentiment and investor appetite.
Vodafone jumps 8% on strong results
Positive interim performance and analyst upgrade chatter propelled the stock sharply higher.
Why it matters: Major telecom results often drive B2B pricing direction across the sector.
AstraZeneca hits record high
Strong oncology trial data cemented its position as the UK’s most valuable public company.
Why it matters: Sustained strength in pharma supports British R&D spending and supply-chain stability.
Retailers slide on weak consumer signals
Marks & Spencer fell 3.7% and Tesco dipped 2.4% on fears of Budget-driven pressure on household incomes. Hilton Foods plunged over 20% after issuing a cautious outlook.
Why it matters: Clear evidence that consumer-facing sectors expect weaker demand and tighter margins.
Costa Coffee may attract bid from Centurium Capital
The private-equity backer of Luckin Coffee is considering an offer for Costa, currently being sold by Coca-Cola.
Why it matters: Ownership changes can affect supply contracts and pricing for thousands of UK SMEs in the café and hospitality supply chain.
Global backdrop: US shutdown resolution in sight
The US Senate passed a bill to end the record-long government shutdown; markets were steady but slightly lower.
Why it matters: Reduced global uncertainty tends to support investor confidence, even if UK-specific risks remain dominant.
TAX & GOVERNMENT
Pension tax-free lump sum to remain unchanged
The 25% tax-free limit (capped at £268,275) will stay in place.
Why it matters: Stability is welcome after savers rushed to withdraw funds, creating short-term distortions in consumer behaviour.
Waspi compensation decision to be reconsidered
Government will revisit its refusal to compensate women affected by the state pension age change.
Why it matters: Potential compensation could increase future consumer liquidity, but uncertainty persists.
Jet2 warns Government about travel tax increases
The airline says further taxes would harm the industry and undermine revenue.
Why it matters: Travel-sector cost increases pass quickly to SMEs reliant on flights and logistics.
BUSINESS RATES
Heathrow warns that £500m rates hike is an “own goal”
The airport says a five-fold increase would obstruct future investment and growth.
Why it matters: Rate revaluations elsewhere could foreshadow future upward pressure on SME commercial property costs.
FINANCIAL SERVICES
Bank leaders warn that UK regulation hurts competitiveness
HSBC and Barclays executives told the Lords committee that high capital requirements may restrict lending.
Why it matters: SMEs may face tighter lending criteria and slower approvals.
Evelyn Partners sells employee benefits division to Howden
Part of Evelyn’s ongoing refocus on wealth management.
Why it matters: Changes in benefits providers can affect SMEs purchasing employee cover.
INVESTMENT
Investors pull £7.3bn from equity funds
Five straight months of outflows reflect concerns over valuations and Budget-related tax fears.
Why it matters: Nervous investors often mean nervous customers — another drag on SME confidence.
OTHER
Money-laundering conviction: 12-year sentence for Chinese woman
A London court jailed Qian Zhimin for laundering billions in crypto linked to fraud against 100,000 Chinese pensioners.
Why it matters: Reinforces the UK’s tightening enforcement stance, affecting compliance obligations across sectors.
Middle-class dominance in degree apprenticeships
Only 10.7% of degree apprentices are from disadvantaged backgrounds.
Why it matters: Skills shortages may deepen if access barriers persist — a long-term issue for SME hiring.
MARKET SNAPSHOT
The day’s major catalyst was the labour-market shock, with unemployment rising to 5% and wage growth softening. Sterling dropped sharply, boosting FTSE multinationals and helping drive the index to another record high near 9,900. Gilts rallied strongly as traders raised their expectations of a Bank of England rate cut in December. Global conditions improved slightly as the US government shutdown neared resolution, though US markets gave back some earlier gains.
CPA says
When markets wobble, unemployment rises and taxes tighten, late-payment risk always increases. If your customers are slowing down or becoming hesitant, now is the moment to strengthen your credit control. Call CPA and protect your cashflow ahead of the Budget.
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.
INSOLVENCIES
Petitions to Wind Up (Companies)
AAA Haulage Ltd
A K W Engineering Limited
Basic Prime Limited
Garioch Blinds and Furnishings Limited
Legacy Hill Resources Ltd
Metalic Limited
Mezbaan Tours (UK) Ltd
Mulberry Design & Build Limited
OE Construction Limited
Panelex Wood Agency Limited
Paramount Technical Solutions Limited
Stellar Diamonds Limited
Appointments of Administrators
Anglia Crown Limited
D-Fly Global IP Limited
DFLY Technology Group Ltd
Eastern Airways (UK) Limited
Liberty Delta 5 Ltd
Luxury Watch Repairs Limited
Appointments of Liquidators
Aesthetics & Skin Care Clinic Ltd
Astaroth Ltd
Barnward Consultancy Ltd
Baslow Insurance Services Holding Company Limited
Cobden Surveyors Limited
Cold Stores Holdings Limited
CPM Investments Limited
DSBP Probate Services LLP
Eurus Consulting Limited
Hawtrey Logistics Limited
Headlamp Management Limited
Health Image Limited
IIAct Ltd
Infitech Business Solutions Limited
Joyce Green Consulting Ltd
Killick (Spire) Limited
Lilac Lane Limited
N N R Limited
R&A Management Services Limited
T Bayliff Consulting Ltd
Torim Limited
West IT Consulting Limited