Business news 15 December 2025

UK businesses head into the final weeks of the year facing a familiar mix of pressure points: rising tax burdens, patchy economic growth, tight credit conditions and continued stress across hospitality, construction and professional services. While markets remain relatively buoyant and the housing market shows resilience, the underlying trading environment for SMEs remains fragile, with insolvency activity continuing at pace.

James Salmon, Operations Director.

SME & Tax News

HMRC urged to review service as delays persist

HMRC is facing renewed criticism over long waiting times, delayed refunds and incorrect tax demands, despite claims that performance is improving. Accountants report that businesses are waiting years for income tax refunds and are being told not to chase outstanding queries.
Why it matters to SMEs: Delays at HMRC tie up cash flow and management time, increasing financial strain for businesses already operating on tight margins.

Tradespeople brace for Making Tax Digital

One-third of tradespeople still rely on paper records, while only a third are aware of Making Tax Digital for Income Tax, which will apply to those earning over £50,000.
Why it matters to SMEs: Poor preparation for digital tax filing risks compliance failures, penalties and extra admin costs.

Savers brace for tax hike

The Government plans to raise tax on savings interest and reduce cash ISA allowances from 2027, with middle earners facing higher bills.
Why it matters to SMEs: Business owners relying on savings income may face higher personal tax burdens, reducing resilience during downturns.

Rental income tax set to rise

Landlords will face a 2% increase in rental income tax from 2027, with limited mortgage interest relief continuing to squeeze profits.
Why it matters to SMEs: Rising landlord costs risk higher commercial rents and reduced availability of business premises.

Economy & Employment

UK economy shrinks again

The economy contracted by 0.1% in October, following a similar fall in September, driven by manufacturing weakness and flat services output.
Why it matters to SMEs: Sluggish growth reduces customer demand and increases payment risk across supply chains.

Wage growth for lowest-paid workers slows

Pay growth for lower-paid roles eased to 5.9% in October as the jobs market weakens.
Why it matters to SMEs: Slowing wage growth may ease cost pressures but also signals softening consumer spending.

Half of graduates would earn more via apprenticeships

A new report suggests many graduates would have been better off financially choosing apprenticeships, highlighting skills mismatches in the labour market.
Why it matters to SMEs: Skills shortages persist despite high graduate numbers, pushing up recruitment costs.

Housing & Property

First-time buyer borrowing hits £82.8bn

Mortgage lending to first-time buyers surged nearly 30% ahead of stamp duty changes, with momentum expected to continue into 2026.
Why it matters to SMEs: Housing market activity supports trades, suppliers and local economies.

Nationwide says housing market proved resilient

House prices grew 1.8% annually by November, with activity expected to strengthen modestly next year.
Why it matters to SMEs: Stable housing supports consumer confidence and spending.

Mortgage lending growth set to slow sharply

UK Finance forecasts mortgage lending growth will fall to just 2% in 2026, with repossessions rising.
Why it matters to SMEs: Slowing credit growth increases the risk of arrears and financial stress among customers.

Industry & Consumer Trends

Hospitality sector braces for disaster

Business rates reforms threaten sharp tax rises for pubs, hotels and Christmas attractions, with warnings of closures and job losses.
Why it matters to SMEs: Hospitality failures ripple through local supply chains and trade credit networks.

Pubs face closure threat from tax hikes

Industry leaders warn that ending business rates relief could cost thousands of jobs.
Why it matters to SMEs: Failing pubs often leave unpaid invoices across food, drink and service suppliers.

Motor insurance market faces downturn

Insurers are expected to post losses in 2026 as inflation and repair costs bite.
Why it matters to SMEs: Rising insurance volatility increases operating costs for fleet-dependent businesses.

Personal Finance & Behaviour

Credit card rates drive BNPL shift

Buy now, pay later usage continues to grow as consumers avoid high credit card interest.
Why it matters to SMEs: Changing payment behaviour can affect cash flow timing and default risk.

Financial advice gap leaves millions unsupported

Nearly a third of savers have never sought financial advice, despite strong appetite for guidance.
Why it matters to SMEs: Poor financial decisions increase household stress and payment delays.

Gen Z couples clash over finances

Younger couples report higher levels of financial conflict and secrecy.
Why it matters to SMEs: Financial stress among younger consumers increases credit risk.

Markets Snapshot

Equity markets started the week on a positive footing. The FTSE 100 rose close to 1% and remains on track for its strongest annual performance since 2009, helped by financial and energy stocks. European markets were mixed, while US futures edged higher ahead of key economic data.

Oil prices remain subdued near multi-month lows amid expectations of a global surplus next year, while gold continues to push towards record highs as investors seek safety. Copper rebounded after a sharp sell-off last week.

Sterling is broadly steady, trading around $1.34 against the dollar and just under €1.14 against the euro, as markets await the Bank of England’s interest rate decision.

Bank of England Watch

Bank of England set for rate cut

Markets expect a 25-basis-point cut this week, though inflation data could still change the outcome.
Why it matters to SMEs: Lower rates would ease borrowing costs but signal a weakening economy.

Insolvencies – UK Company Notices

Appointments of Administrators

  • CLAYTON EQUIPMENT LIMITED
  • JANFORSTER-ESTATES LIMITED
  • T. HAYSELDEN (DONCASTER) LIMITED
  • TL REALISATIONS LIMITED

Appointments of Liquidators

  • ALAN HIGGS ARCHITECTS LIMITED
  • BINOCLE LIMITED
  • BLACK PEA LIMITED
  • BOWMY LIMITED
  • BRANDPA LIMITED
  • BRAVA HV LIMITED
  • BUSINESS BANKING RESOLUTION SERVICE
  • CAT WITH A HAT LIMITED
  • CCD TRANSPORT (N.I.) LIMITED
  • CONNAUGHT PSV LTD
  • FLIGHTAWARE UK LTD
  • GALLAGHER RESOURCES LIMITED
  • INNOVATION FLEET SERVICES LIMITED
  • NGC EMPLOYEE SHARES TRUSTEE LIMITED
  • PCHC LIMITED
  • PORKELE CONSULTANCY LTD
  • PRIMROSE HILL HOMES LIMITED
  • SAM KIRBY CONSULTING LIMITED
  • SHATTERCONE LTD
  • STEELSTONE PROPERTIES LIMITED
  • WALLDITH HOLDINGS LIMITED
  • WHOLESALE COFFEE COMPANY AND MACHINES LIMITED

Petitions to Wind Up (Companies)

  • AGCI LTD
  • AVOCOM LAW FIRM LLP
  • CACHE LONDON LTD
  • KYLE RYAN LIMITED
  • RHGP LIMITED
  • SEC CONSTRUCTION LTD
  • THE 600 GROUP LIMITED
  • TRICKLE DATA INSIGHTS LIMITED
  • WTM SERVICES LIMITED

CPA Membership

Late payments rarely arrive without warning. CPA members use CreditCare reports, continuous monitoring and overdue account recovery to spot risk early and recover invoices without damaging customer relationships. If late payment is putting pressure on your cash flow, talk to CPA before it becomes a write-off.

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,