Business news 13 February 2026

The UK economy may have edged forward at the end of 2025, but beneath the surface small firms are facing mounting pressure. With GDP growth stuck at just 0.1%, confidence among SMEs at post-COVID lows, and a wave of cost increases approaching in April, many business owners say the recovery simply isn’t reaching them. Rising fixed costs, persistent late payments and a growing list of insolvency notices suggest cashflow — not growth — is once again the defining issue for Britain’s small businesses.

James Salmon, Operations Director.

UK economy grows 0.1% — but small firms warn of “real danger”

The UK economy grew by just 0.1% in December and 0.1% across Q4 2025, matching the previous quarter and coming in below economist expectations. While the Chancellor highlighted that the UK was the fastest-growing European G7 economy last year, business groups say the headline figure masks deep strain at SME level.

The Federation of Small Businesses warned that small firms are at a “very dangerous point”, with confidence collapsing to -71 in Q4 — a post-COVID low. Services showed no growth for the first time in over two years, construction fell 2.1% (its worst quarter in four years), and cost pressures are building ahead of April.

The FSB warned of a looming “costs timebomb” combining higher business rates, energy standing charge increases and a higher National Living Wage. Late payments from larger companies were also cited as worsening conditions. A separate Business and Trade Committee report warned small firms face pressures comparable to the pandemic.

Why it matters: Weak growth combined with rising fixed costs and late payments significantly increases cashflow stress and insolvency risk for SMEs selling on credit.

Tax & Government

Business rates reforms to double bills for 7,000 firms

Nearly 7,000 high street businesses will see business rates more than double under recent reforms. Retail, hospitality and leisure firms are most affected, with business groups again calling the system “broken”.

Hospitality sector under mounting pressure

Angela Rayner acknowledged pubs and restaurants face serious strain from higher business rates, VAT pressures and minimum wage increases. Industry leaders continue to warn of fragility across the sector.

Visitor levy criticised as added burden

Proposed holiday levies could add around £100 to a two-week family break. Over 200 industry leaders have written to the Chancellor expressing concern.

SME & Sector News

Savers squeezed by tax and inflation

Standard Life estimates that a higher-rate taxpayer earning 4.5% interest on £30,000 would retain just £410 in real terms after tax and inflation. Savings tax will rise from April 2027 and ISA allowances will fall.

Mortgage competition heats up

Lenders are offering record levels of 10% deposit products and the highest availability of 5% deposit mortgages since 2008. First-time buyers now represent 34.3% of January sales.

Scottish retail sees strong start

Scottish retail sales rose 3.3% year-on-year (1.7% real terms), with footfall up 5.1%. Edinburgh and Glasgow led gains.

Calmont Homes enters administration

The 20-year-old property developer appointed joint administrators from FRP Advisory.

NatWest posts strong profits

NatWest reported a 30% jump in Q4 pre-tax income to £1.94bn and announced a £2.7bn acquisition of Evelyn Partners. The bank expects return on tangible equity above 17%.

Bank of England stress testing

The BoE is considering appointing a third party to help gather data for industry stress tests amid timetable pressure.

Why it matters: Increased regulatory scrutiny often precedes tighter credit conditions.

US House votes to end Canada tariffs

Lawmakers moved to end tariffs amid cost-of-living concerns, though a veto is likely.

Trump repeals EPA “endangerment finding”

The move could reshape US emissions regulation and auto policy.

Why it matters (both): Global policy volatility adds uncertainty to supply chains and pricing.

Magnum Ice Cream shares fall 16%

Shares fell after operating profit declined post-demerger from Unilever. Analysts also flagged concerns that weight-loss drugs could dampen ice cream demand.

Market Snapshot

Summary

Global markets are consolidating after recent gains, with Thursday’s European and US cash sessions closing mixed to lower, and Asian markets extending losses overnight Friday. The key theme has been profit-taking in technology stocks amid growing questions about AI investment returns, while financial shares also weakened on policy uncertainty.

Drivers

Growing concern about the hundreds of billions spent on AI investments has triggered reassessment across markets. Investors appeared to be evaluating the potential fallout from artificial intelligence’s ability to automate workflows, a notion that could impact traditional business models.

Monetary Policy Developments Bank of England policymaker Sarah Breeden indicated it is “reasonable to expect” a further quarter-point rate cut by the end of April.

Bank of Japan hawk Naoki Tamura flagged spring as possible timing for the next rate hike, indicating conditions could be in place as early as this spring.

Federal Reserve Governor Stephen Miran said the biggest risk to the economy is policymakers underestimating how much interest rates are restraining growth.

Geopolitical and Policy Developments The Kremlin drafted proposals that could see Russia embrace the dollar again as part of a wide-ranging economic partnership with the Trump administration, according to an internal Russian document.

The White House ramped up pressure on JPMorgan’s Jamie Dimon to cap credit card interest rates, with trade adviser Peter Navarro calling for lower rates.

The US and Taiwan signed a trade agreement Thursday, while a Reuters report indicated the US shelved key tech restrictions targeting China ahead of an April meeting.

Equities

  • FTSE 100: 10,423.00
  • STOXX 600: 618.46
  • DAX: 24,836.78
  • CAC 40: 8,324.28
  • S&P 500: 6,832.76
  • Dow Jones: 49,451.98
  • Nasdaq: 24,687.61

European markets were mixed, with strong stock-specific moves. US indices slipped as investors reassessed AI spending sustainability. Asian markets fell overnight, with profit-taking in technology stocks.

Dispersion within US markets is high, echoing dot-com era conditions, suggesting selective rather than broad-based optimism.

Currencies

  • GBP/USD: 1.3626
  • EUR/GBP: 0.8707
  • GBP/JPY: 209.12

The pound has been one of the weaker G10 performers this week. The yen has rallied strongly, driven largely by dollar weakness and shifting fiscal expectations.

Commodities

  • WTI Crude: $63.03
  • Brent Crude: $67.73
  • Gold: $4,971.63
  • Copper: $12,875.50

Oil is heading for a second weekly decline as the IEA cut demand forecasts. Gold remains volatile but elevated amid rate-cut expectations and geopolitical uncertainty.

Overall market tone: Cautious, with profit-taking in tech, softer oil, a weaker dollar and ongoing policy uncertainty.

Insolvency Notices

Appointments of Administrators

  • COSMIC EARS LTD
  • MAGELLANO LIMITED
  • UK SOLAR EXPERTS LTD
  • WYE FINANCE CO LIMITED

Appointments of Liquidators

  • A&N PROFESSIONALS LTD
  • APPLEDORE DEVELOPMENTS LIMITED
  • CLIFTON IFA ACQUISITIONS LTD
  • CLIFTON WEALTH LTD
  • COLLIS CASTRUM LIMITED
  • ENVISIONARY LTD
  • EXCELSYS LIMITED
  • FERRY LODGE FINANCIAL CONSULTING LTD
  • HADFELDA CONSULTING LTD
  • LEONARD GOLD FINANCIAL MANAGEMENT LIMITED
  • LOVETT ELECTRICAL LTD
  • LSEM SOLUTIONS LIMITED
  • M.A. LODGE (SHOPFITTERS) LIMITED
  • MARK PHILLIPS LIMITED
  • MEIAN 158 LIMITED
  • MERCER,JONES AND COMPANY LIMITED
  • MOUNSEY MARKETING LIMITED
  • NEWTON GREEN CONSULTING LIMITED
  • OC396044 LLP
  • OLD COACH HOUSE SERVICES LIMITED
  • SOMERFIELD WEALTH PLANNING LTD
  • SSES HOLDINGS LTD
  • SUS HOLDCO 1 LIMITED
  • SUSSEX MEDICAL AND DENTAL SERVICES LTD
  • TVM HEALTHCARE LIMITED
  • VEON DIGITAL LIMITED

Winding Up Orders

THE BOND INVESTMENT GROUP LTD

How CPA can help in a low-growth, high-cost environment

When growth is weak and fixed costs are rising, delayed payment becomes more common — and more dangerous.

CPA helps businesses:

  • Act early before overdue invoices deteriorate.
  • Protect margins in low-growth conditions.
  • Maintain relationships while securing payment.
  • Reduce internal credit control burden.
  • Prevent debts becoming write-offs.

With SME confidence at post-COVID lows and April cost increases approaching, now is the time to strengthen credit control discipline.

Start protecting your cashflow today.

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.