Business news 14 January 2026

UK businesses are facing a growing squeeze as tax concerns, regulatory pressure and weakening confidence collide. Fresh surveys show business sentiment at a three-year low, investors increasingly anxious about tax rises, and hospitality operators cutting hours or facing higher property taxes. Against this backdrop, global markets remain volatile, metals prices have surged to record highs, and insolvency notices continue to build — underlining why cash-flow control and credit risk management remain critical for businesses selling on terms.

James Salmon, Operations Director.

SME-focused Business News

Ministers urged to unlock SME growth

Policy experts have warned that the Employment Rights Act could unintentionally suppress SME growth by adding complexity and compliance costs at a time when smaller firms are already under pressure. Research cited by the Centre for Policy Studies suggests that even modest SME growth — just 1% per year — could add £320bn to the UK economy by 2030. However, excessive regulation and administrative burden risk discouraging hiring, investment and expansion.
Why it matters: More red tape raises operating costs and legal risk for SME owners, while also making customers more cautious and slower to pay.

Business confidence hits three-year low

UK business confidence has fallen to its lowest level since late 2022, according to ICAEW, marking six consecutive quarterly declines. A record 64% of firms now cite the tax burden as a growing challenge, while more than half say regulation is actively holding back performance. Rising costs, weaker demand and limited pricing power are combining to darken sentiment across sectors.
Why it matters: When confidence falls, businesses delay spending and stretch payment terms — increasing cash-flow strain for suppliers and heightening credit risk.

Investors see tax anxiety surge

Nearly half of UK retail investors now say tax and government policy pose the biggest threat to their portfolios, up sharply from 33% last summer. Dividend tax increases and frozen income tax thresholds have added to concerns that the overall tax burden will continue to rise. While geopolitical risks still rank higher, tax anxiety is now a dominant theme.
Why it matters: Investor caution feeds into lower investment, weaker growth and tighter access to funding for SMEs — all of which affect payment behaviour across supply chains.

Brits brace for tax rises

Polling suggests that 77% of the public expect tax rises this year, with most worried about the impact on household finances. A large majority also fear higher taxes will damage the wider economy, reinforcing a cautious consumer mood.
Why it matters: Consumer belt-tightening reduces sales volumes and increases the likelihood of delayed or missed payments to SMEs.

Former OBR chair questions fiscal credibility

Richard Hughes, former chair of the Office for Budget Responsibility, has warned that the government’s fiscal rules are among the loosest in UK history. He argues they allow large structural deficits and fail to prepare the economy for future shocks. Concerns were also raised about the lack of independent scrutiny over pre-election spending promises.
Why it matters: Weak fiscal discipline raises long-term uncertainty, borrowing costs and volatility — all of which affect SME planning and customer solvency.

Industry & sector stories

Pubs face sharp business rates increases

More than 5,000 pubs are facing significant rises in business rates after rateable values doubled for around 13% of venues. The average increase is £1,400 per year, with some pubs facing much steeper bills. Industry bodies warn that without targeted relief, thousands of venues could close in 2026.
Why it matters: Higher fixed costs push hospitality businesses closer to insolvency, increasing the risk of bad debt for suppliers trading on credit.

Pubs cut opening hours as employment costs rise

Almost half of UK pubs have reduced opening hours after higher employer National Insurance contributions and minimum wage increases raised staffing costs. Many operators say the changes have made marginal trading hours unviable.
Why it matters: Reduced trading hours often mean lower turnover and slower payments to suppliers already exposed to the sector.

Drinking habits continue to shift

Alcohol consumption in the UK is at its lowest level on record, with consumers increasingly opting for low- or no-alcohol alternatives or drinking at home to save money. Rising costs and changing social norms are reshaping demand across the hospitality sector.
Why it matters: Shifting consumption patterns can destabilise cash flow for pubs, bars and their suppliers, increasing credit exposure.

CEOs feel pressure intensify

A global survey shows that UK CEOs feel increasingly isolated under growing operational and stakeholder pressure. Many believe their leadership teams lack the agility to respond quickly to disruption, creating a widening gap at the top of organisations.
Why it matters: Leadership strain can slow decision-making and weaken financial controls, increasing the risk of delayed payments and disputes.

Employment & regulation

Digital ID requirement softened

The government has dropped plans to force workers to enrol in a new digital ID scheme, making registration optional instead. Right-to-work checks will still move to digital systems by 2029, but without mandatory ID sign-up.
Why it matters: Reduced compliance burden lowers administrative costs and hiring friction for SME employers.

HMRC delays add pressure

HMRC is facing significant delays as the self-assessment deadline approaches, with some taxpayers waiting weeks for login details and long call wait times common. Staffing shortages and training gaps are being blamed.
Why it matters: Administrative delays distract business owners, disrupt cash-flow planning and increase the risk of penalties.

UK economy & infrastructure

UK economy falters after Budget

Early indicators suggest the economy struggled to recover following November’s Budget, with household spending and labour market conditions deteriorating. Economists warn this could delay hopes of stronger growth in early 2026.
Why it matters: A weaker economy increases insolvency risk and lengthens payment cycles for SMEs.

Northern rail investment confirmed

The government has unveiled £1.1bn of funding for Northern Powerhouse Rail, with wider projects capped at £45bn. However, most economic benefits are not expected until the 2030s.
Why it matters: Long-term infrastructure supports growth, but offers little immediate relief for SMEs facing today’s cash-flow pressures.

Global & markets context

Market snapshot

  • FTSE 100: 10,158.70, slightly higher today
  • Euro Stoxx 50: 6,044.17, modestly up
  • US markets: Fell on Tuesday despite steady inflation
  • Sterling:
    • GBP/USD: 1.3458
    • GBP/EUR: 1.1549

US inflation held at 2.7% in December, reinforcing expectations that interest rates will stay on hold for now. Treasury yields fell, but equity markets remained cautious.

Commodities surge

Gold, silver, copper and tin have all hit record highs, driven by expectations of US rate cuts, strong Chinese demand and a weaker dollar.
Why it matters: Higher input costs can squeeze margins and strain customer cash flow.

China trade strength continues

China reported record exports and a historic $1.19tn trade surplus for 2025, with strong growth outside the US offsetting tariff pressures.
Why it matters: Global trade resilience supports demand, but intensifies competition for UK suppliers.

AI chip exports eased

The US has relaxed restrictions on Nvidia selling advanced chips to China on a case-by-case basis.
Why it matters: Tech supply chains remain fluid, affecting investment cycles and payment timelines.

Boeing regains momentum

Boeing booked more aircraft orders than Airbus for the first time in seven years, though it still trails in production.
Why it matters: Aerospace recovery supports suppliers, but order-book volatility remains.

Insolvency notices

Appointments of Administrators

  • GREAT CLOTHES LIMITED
  • IMPROVEMENT HOUSE LTD
  • NOBLE EVENTS LIMITED

Appointments of Liquidators

  • AGILITAS TRUSTEE LIMITED
  • ANGLIA BOWLS CENTRE LTD
  • BOB BROOMFIELD LIMITED
  • CHURCH STREET PROPERTIES LTD
  • DAVE’S MEDICAL SERVICES LTD
  • DEVASTO LIMITED
  • DOCKLANDS LOGISTICS (EUROPE) LIMITED
  • IONA – KENT AND SOUTH EAST LIMITED
  • MATTLER CONSULTING SERVICES LTD
  • P S ANDERMAN LIMITED
  • QUALITY HEADQUARTERS LIMITED
  • TELEFAULTS (S.O.T.) LIMITED

Petitions to Wind Up

  • ARAL CATERING LTD
  • CHIYOKA FOODS LTD
  • DIGITAL SIX LIMITED
  • KAHYA OPCO LIMITED
  • LAUNDRY ROOM (BANGOR) LIMITED
  • MELTON MEADOWS PROPERTIES LTD
  • SAFEBURYS BIRMINGHAM LTD
  • STAY ON TARGET LTD
  • TRJ CONTRACT BUILDER LTD

What CPA can do for you

With confidence weakening, taxes rising and insolvencies continuing, extending credit without proper protection is riskier than ever. CPA supports Members with CreditCare reports, ongoing monitoring and professional overdue account recovery — helping you protect cash flow while preserving customer relationships.

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.