Business news 15 January 2026
UK business confidence received a modest boost this week as economic growth beat expectations and markets steadied, but beneath the surface pressures remain. Rising taxes, policy uncertainty, sector-specific weakness and a heavy flow of insolvencies continue to test cash flow across the SME economy. For businesses selling on credit, the gap between improving sentiment and actual payment behaviour remains a risk that needs close management.
James Salmon, Operations Director.
SME-focused & Economic Stories
UK economy grows faster than expected in November
The UK economy grew by 0.3% in November, beating forecasts and reversing October’s contraction, according to the Office for National Statistics. Growth was driven by a rebound in industrial output after Jaguar Land Rover restarted production following a cyber-attack, alongside a pick-up in services such as accounting and tax consultancy activity around the Autumn Budget. While economists expect modest growth into early 2026, construction output fell sharply and some analysts warned November may reflect a rebound rather than a sustained acceleration.
Why it matters: Headline growth can lift confidence, but uneven sector performance means payment risk remains high — particularly for suppliers to construction and manufacturing.
Government borrowing costs fall as rate-cut expectations build
UK government borrowing costs have dropped to their lowest levels since late 2024, with ten-year gilt yields around 4.34%. Falling yields have increased the Chancellor’s fiscal headroom by more than £3bn, as markets price in up to two Bank of England rate cuts this year. Economists caution the move reflects slowing growth rather than renewed economic strength.
Why it matters: Lower rates may ease financing costs over time, but slowing demand could still stretch customers’ ability to pay on time.
Housing market optimism improves, but activity still weak
Confidence in the housing market is picking up, according to the latest RICS survey, with expectations for sales and prices at their strongest since October 2024. However, new buyer enquiries remain negative and RICS described the market as being in a prolonged soft patch despite early signs of improved sentiment.
Why it matters: Early optimism can tempt suppliers to extend credit, but weak underlying demand means cash flow discipline remains essential.
Tax, Government & Policy
Scots pulled into higher tax bands as “talent tax” fears grow
Nearly 950,000 Scots are expected to pay higher rates of income tax by 2028/29, compared with around 23% of taxpayers elsewhere in the UK. Business groups warn Scotland’s tax divergence risks driving workers away, raising employment costs and weakening competitiveness.
Why it matters: Higher personal tax pressure on owners and senior staff can limit investment capacity and increase wage pressure for SMEs.
London tourist tax could raise £350m
A proposed 3% tourist tax on hotel room costs in London could generate more than £350m a year, significantly more than earlier estimates. The Mayor says the levy would support the capital’s economy, though hospitality groups warn of rising costs.
Why it matters: Extra cost pressure on hospitality operators increases payment risk for suppliers already exposed to thin margins.
EV plans hit by proposed per-mile tax
Almost half of potential electric vehicle buyers are reconsidering purchases following proposals for a 3p-per-mile road tax from 2028, according to AutoTrader. Industry leaders warn the move undermines EV adoption and risks creating a two-tier system.
Why it matters: Uncertainty may delay fleet purchases, disrupting cash flow for vehicle suppliers and service providers selling on credit.
Industry & Corporate News
TGI Fridays closes 16 UK sites
TGI Fridays has shut 16 UK restaurants, resulting in 456 job losses, after administrators were appointed to Liberty Bar and Restaurant Group. A rescue deal saved 33 sites and more than 1,300 jobs, but suppliers remain exposed.
Why it matters: Even partial rescues can leave unsecured suppliers facing losses and delayed payments.
EU banking rules raise growth concerns
New EU banking regulations could restrict cross-border lending by non-EU banks, potentially affecting up to 20% of EU bank borrowing. UK lenders warn the changes may reduce funding for major projects and tighten credit conditions.
Why it matters: Tighter lending can quickly feed through to slower customer payments and higher credit risk for SMEs.
Technology, Trade & Regulation
Trump imposes 25% tariff on some Nvidia AI chips
President Trump announced a 25% tariff on certain Nvidia AI chips as part of tighter controls on exports to China. The move adds further complexity to global tech supply chains.
Why it matters: Higher costs and delays can cascade through supply chains, affecting pricing and payment timelines for SME suppliers.
Musk backs down on Grok AI image rules
Elon Musk has confirmed new restrictions on X’s Grok AI tool, blocking users from creating sexualised images from photos. The move follows regulatory pressure and growing ethical concerns.
Why it matters: SMEs using AI tools face rising compliance and reputational risks if safeguards are unclear.
OpenAI signs $10bn deal with Cerebras
OpenAI has agreed a $10bn deal with Cerebras Systems to supply 750MW of computing power over three years, diversifying its AI infrastructure suppliers.
Why it matters: Faster AI tools may boost productivity, but widening capability gaps could pressure smaller firms to invest sooner than planned.
Market Snapshot
Equity markets were mixed over the 24 hours, with weakness in US technology shares contrasting with strength in UK and European stocks.
In the United States, markets fell on Wednesday as investors grew more cautious. The S&P 500 dropped around 0.8% and the Nasdaq fell about 1%, marking the first back-to-back losses of the year. Technology stocks led the decline after reports of potential new US tariffs on some semiconductor imports, adding to uncertainty around trade policy. Financial stocks also came under pressure, while investors remained wary ahead of a US Supreme Court ruling on the legality of President Trump’s tariff programme.
On Thursday morning, US futures edged higher, suggesting a modest rebound, helped by a recovery in tech shares.
In Europe, markets continued to show resilience. The Euro Stoxx 50 and the broader Stoxx Europe 600 pushed to fresh record highs, supported by strong earnings from the semiconductor sector. Shares in companies such as ASML jumped after Taiwan Semiconductor reported better-than-expected results, reinforcing optimism around long-term demand for chips linked to AI and digital infrastructure.
In the UK, the FTSE 100 closed up 0.5% at 10,184, lifted mainly by mining stocks. The index was supported by rising gold prices, which boosted heavyweight miners, helping the UK market outperform US peers. The FTSE remained firmer again on Thursday morning.
Overall, investors are increasingly selective. Large US technology stocks — once the main drivers of global markets — have struggled at the start of 2026, while commodity-linked and defensive sectors have performed better.
Commodity Markets
Precious metals surged to record highs earlier in the week, driven by geopolitical tensions and strong demand for safe-haven assets. Gold, silver and several industrial metals rose sharply, helping to support mining stocks in London. However, prices eased back on Thursday morning as tensions between the US and Iran appeared to cool.
Oil prices were volatile. Crude climbed to its highest level since October amid concerns over a possible escalation in the Middle East, before falling sharply later in the session after President Trump signalled he could delay any military action. By Thursday morning, oil prices were down around 4%. Longer-term forecasts suggest oil is likely to trade in the high $50s per barrel for much of 2026, reflecting weaker global growth expectations.
Currency Markets
Sterling strengthened against both the dollar and the euro after stronger-than-expected UK GDP data. The UK economy grew by 0.3% in November, beating forecasts and giving the pound a lift.
- GBP/USD is trading around 1.34
- GBP/EUR is around 1.15
Earlier in the week, the pound had struggled to break higher against the dollar as the US currency remained firm, but broader weakness in the dollar on Wednesday helped most major currencies advance. The Japanese yen strengthened after officials in Tokyo warned they could intervene to curb excessive weakness.
️ Insolvencies & Winding-Up Notices
Appointments of Administrators
- CONSUMER ENERGY SOLUTIONS LIMITED
- EASY-TRIM ROOFING AND CONSTRUCTION PRODUCTS LTD
- MEC-SERV LTD
- PLXSUR LIMITED
- SIMPLICITY LIMITED
- SMOOTH COMMERCIAL LAW LIMITED
Appointments of Liquidators
- BOOVE LIMITED
- CENTRAL CREATION LTD
- CONSISTENCY PARTNERS LIMITED
- DMX FILMS LIMITED
- GREEN STREET PROPERTY DEVELOPMENT LIMITED
- HST WORKBOATS LIMITED
- ISLAY FINANCE LIMITED
- JABERPHARMA LTD
- MICRO CONCEPTS LIMITED
- NEVANET UK LTD
- PETER LUX LTD
- RAMBLE LABS LTD
- RUN OPTIMISED LTD
- RUSSELL WILLIAMS (TEXTILES) LIMITED
- SK (NORTHERN) CONSULTANCY LTD
- TRIVSEL UK LIMITED
- WIIAIR LIMITED
- WILL HALL LIMITED
- WILL HALL PROPERTIES (ALTON) LIMITED
Petitions to Wind Up
- BBS UTILITY SERVICES LTD
- INTERIORS OF CHESHIRE LIMITED
- MCGAWLEY CONTRACTING LTD
- PEARCROFT GROUP LIMITED
Winding-Up Orders
- INSTANT ORDERS LIMITED
- PP MANAGEMENT (WM) LIMITED
What CPA membership could help with today
With insolvencies rising, hospitality under pressure and confidence improving faster than cash flow, CPA membership helps businesses stay protected while they trade forward. From CreditCare reports and ongoing monitoring to ethical overdue account recovery, CPA supports members to improve payment behaviour without damaging 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.