Business news 13 January 2026

Small businesses entered 2026 under growing pressure as confidence slumped to its lowest level since the pandemic, costs rose sharply following the Budget, and insolvency activity continued to tick higher. Pubs, restaurants, recruiters and retailers are all feeling the squeeze, while global markets pushed to record highs despite renewed political and monetary uncertainty in the US. For suppliers trading on credit, the message is clear: cash flow discipline matters more than ever.

James Salmon, Operations Director.

Business News

Small business confidence sinks to post-pandemic low

The Federation of Small Businesses reported a sharp deterioration in sentiment, with its confidence index plunging to minus 71 — the weakest reading since 2020. Taxation is now the number one concern for nearly two-thirds of firms, while 26% reduced headcount last quarter and investment intentions have fallen sharply.
Why it matters: Falling confidence often leads to slower payments, tighter cash positions and higher default risk across supply chains.

Tax changes could force 540 pub closures this year

UK Hospitality warned that rising business rates, higher employer National Insurance and minimum wage costs could push 540 pubs to close in 2026. Many landlords saw rateable values jump by around 30%, wiping out the impact of promised discounts. Hotels and restaurants face even steeper increases, with hundreds at risk.
Why it matters: Hospitality suppliers face elevated credit risk as margins shrink and closures accelerate.

Recruiters brace for a tough year as hiring stalls

Recruitment firms are facing a difficult outlook as permanent hiring remains weak and businesses hesitate to switch staff amid economic uncertainty. The sector also faces growing disruption from AI and the risk of employers bypassing recruiters altogether.
Why it matters: Recruiters often operate on invoice-heavy models, making them vulnerable to delayed payments when hiring slows.

Retail sales growth slows for a fourth month

UK retail sales rose just 1.2% year on year in December, below the long-term average, as consumers delayed spending in anticipation of post-Christmas discounts. Grocery sales were stronger, rising 3.1%, helped by food inflation.
Why it matters: Sluggish retail demand increases pressure on cash flow for wholesalers and suppliers selling on extended terms.

Tax, property & household finance

Record number of employees dragged into the £100k tax trap

More than 2 million UK employees are expected to earn over £100,000 in 2026/27, many facing an effective 60% marginal tax rate due to frozen thresholds.
Why it matters: Higher personal tax burdens can dampen spending and slow payments through the wider economy.

London property prices fall sharply in real terms

London home values have fallen 15% in real terms over the past decade, with apartments down 22% and one in seven selling at a loss. Rising service charges and leasehold issues are further weighing on valuations.
Why it matters: Weak property values reduce borrowing capacity for business owners who rely on property-backed finance.

Employment & labour market

Jobseekers rise as hiring demand weakens

UK labour market data showed a sharp rise in jobseekers in December, with permanent placements falling for the 39th consecutive month.
Why it matters: A weakening jobs market often precedes slower consumer spending and increased late payment risk.

Financial services hiring drops, fintech bucks the trend

Financial services job vacancies fell 13% in Q4, though fintech hiring rose strongly year on year.
Why it matters: Sector divergence can mask underlying payment risks among traditional firms under pressure.

Global & corporate news

  • Former US Federal Reserve chairs warned that political pressure on the Fed risks undermining monetary stability.
  • President Trump announced a 25% tariff on countries trading with Iran, raising fresh trade uncertainty.
  • Alphabet surpassed a $4 trillion market capitalisation, reflecting investor enthusiasm for AI leaders.
  • Paramount escalated its legal battle with Warner Bros over a proposed merger involving Netflix.
  • Trustpilot and Persimmon both reported strong trading updates, bucking broader economic caution.

Market snapshot

Global equity markets remained resilient despite political noise. The S&P 500 and Nasdaq hit fresh record highs, while European stocks also closed at all-time peaks. The FTSE 100 was broadly flat, hovering just above 10,130, as investors awaited UK GDP data.

Precious metals surged, with gold hitting a new record above $4,600 an ounce as concerns over US monetary independence weakened the dollar. Oil prices edged higher on renewed Iran-related tensions, though longer-term forecasts still point to oversupply.

Sterling strengthened against the dollar, trading around $1.35, while holding steady against the euro near €1.15. Currency moves reflected a weaker dollar rather than UK economic optimism.

Insolvency notices

Administrations

  • ALFRED INTEGRATED COMMUNICATIONS LTD
  • HARLOW TOWN FOOTBALL CLUB LIMITED
  • VERSARIEN PLC

Liquidations

  • ASTBURY & TAYLOR (MOTOR ENGINEERS) LIMITED
  • CHAMPIONS OF CASTLETON LIMITED
  • CRESTBRIDGE INSTITUTIONAL HOLDINGS US LIMITED
  • CRESTBRIDGE US HOLDINGS LIMITED
  • DV4 CRC TRADERS UK LIMITED
  • HART PARRY CYF
  • MELIORA PARTNERS LIMITED
  • ON MY TOD LIMITED

Winding-up petitions

  • AMOS ENTERPRISE LTD
  • EDEN ESTATE PROPERTIES LTD
  • EMAREL SERVICES LIMITED
  • FULL SPEED FIBRE LTD
  • FUSION JETS LIMITED
  • GEMINI LOTTO FUNDRAISING LTD
  • JGA SOLUTIONS LTD
  • MARKET FORCE INFORMATION (EUROPE) LIMITED
  • MARTELLO HOTEL LIMITED
  • MATRAS EXPORTERS LTD
  • SAMLOUIS LIMITED
  • SUREFIX123 LTD
  • TREGONNING VILLAGE LTD

How CPA membership could help

With confidence falling, costs rising and insolvency risk spreading across multiple sectors, protecting cash flow is no longer optional. CPA helps members spot warning signs earlier, monitor customer risk, and recover overdue accounts professionally — keeping cash moving without damaging relationships, at a time when certainty is in short supply.

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.