Business news 16 December 2025

UK businesses continue to face a challenging trading environment as employment weakens, household confidence deteriorates and costs remain elevated. While markets are rallying on hopes of an interest rate cut, insolvencies remain widespread across multiple sectors, underlining the importance of close credit monitoring and proactive debtor management.

James Salmon, Operations Director.

SME & ECONOMIC PRESSURES

NICs hike blamed for rising unemployment

A report from the Resolution Foundation suggests Labour’s increase in employer National Insurance contributions has contributed to rising unemployment, with the rate expected to increase to 5.1% in October, a five-year high. Young workers have been hit hardest, while new job postings fell 14.4% between October and November. Retail and hospitality vacancies declined sharply, and only 37% of workers now feel positive about their career prospects.

Why it matters: Rising unemployment and weaker job confidence increase the likelihood of late payments and customer defaults.

Only 5% of tax breaks reach SMEs

Just 5% of £2bn in tax relief designed to encourage patent filings has gone to SMEs, according to law firm Mathys & Squire. High compliance costs and uncertainty are discouraging smaller businesses from accessing the support, contributing to the UK’s lagging R&D investment.

Why it matters: Missed tax support leaves SMEs under-capitalised and more reliant on trade credit.

LENDING & FINANCE

FCA looks to rebalance risk in the mortgage market

The Financial Conduct Authority has proposed reforms to simplify mortgage rules to help first-time buyers, the self-employed and older borrowers. The regulator plans to review interest-only mortgage requirements and expand the use of technology in mortgage advice, with changes expected from 2026.

Why it matters: Shifts in household borrowing conditions affect consumer spending and SME cashflow.

PayPal moves to become a bank

PayPal has applied for a US banking licence, seeking to take advantage of regulatory deregulation and expand its small-business lending capabilities. The move follows preliminary banking approvals for several cryptocurrency firms, including Circle, Ripple and Paxos.

Why it matters: Easier access to fintech lending may help short-term cashflow, but can mask underlying late-payment problems.

CORPORATE & INDUSTRY

London business leaders launch Growth Commission

Senior business figures have launched a Growth Commission aimed at identifying barriers to UK economic growth, following criticism that the recent Budget lacked a clear growth strategy. Recommendations are expected by February.

Why it matters: Weak growth prolongs tough trading conditions and worsens debtor payment behaviour.

Leon fast food chain faces closures

Leon has entered administration, closing several locations with more expected. Co-founder John Vincent cited heavy tax burdens, noting that 36p in every pound of revenue goes on taxes.

Why it matters: High-profile failures highlight supply-chain exposure for SMEs trading with larger customers.

Ford takes $19.5bn hit as it pivots away from EVs

Ford has warned it will take a $19.5bn profit hit over the next two years as it shifts production away from electric vehicles towards petrol and hybrid models. The move follows the removal of EV tax credits and relaxed fuel standards in the US.

Why it matters: Sudden strategic shifts by large manufacturers can disrupt SME suppliers and payment cycles.

McKinsey plans major job cuts

McKinsey is considering cutting thousands of roles over the next two years as AI reshapes consulting and client demand slows. Non-client-facing roles are expected to be most affected.

Why it matters: Job losses in high-income sectors can quickly feed through to reduced spending and slower payments.

LEISURE & HOSPITALITY

Pubs face new business rates pressure

More than 3,000 smaller pubs will pay business rates for the first time after losing exemptions, despite Budget promises of hospitality support. Some landlords face bills exceeding £10,000.

Why it matters: Rising fixed costs increase insolvency risk and slow payments to suppliers.

PROPERTY

UK house prices tipped for modest rise in 2026

Halifax said UK house prices rose just 0.7% in 2025 to a record £299,892, with market activity close to pre-pandemic levels. It expects prices to rise by 1% to 3% in 2026, slightly below Nationwide’s forecast.

Why it matters: Modest house price growth limits consumer spending power and SME revenues.

REGULATION & INFRASTRUCTURE

Ofcom probes BT and Three over summer outages

Ofcom has launched investigations into BT Group and Three after mobile network outages disrupted call services, including access to emergency services. BT attributed the disruption to a software issue affecting its EE network.

Why it matters: Connectivity failures can disrupt SME operations, invoicing and collections.

OUTLOOK

Household financial fears hit two-year high

Consumer confidence has fallen for a third consecutive month, with job security concerns rising across IT, construction and financial services.

Why it matters: Financially stretched households are more likely to delay payments to businesses.

MARKET SUMMARY

Equity markets were mixed. In New York, technology stocks diverged, with Oracle continuing its sell-off while Nvidia rebounded modestly. In London, blue-chip shares rallied around 1.1% on speculation the Bank of England may cut rates from 4% to 3.75%. Mid-cap stocks also rose.

Gilt prices strengthened, particularly at the long end, with the 30-year yield falling to 5.23% while the two-year yield remained steady at 3.73%.

Gold continued its advance following signs of weakness in US manufacturing, putting the metal on track for strong annual gains.

Insolvencies – Latest Notices

Petitions to Wind Up (Companies)

  • MACLAREN PRODUCTS LIMITED
  • MUUR LTD
  • SMART BUSINESS TRADERS LTD
  • VERMUYDEN CARE LIMITED

Appointments of Administrators

  • COASTAL WORKBOATS SCOTLAND LTD
  • GROUP SILVERLINE LIMITED
  • LEON RESTAURANTS LIMITED
  • LIME PEOPLE SEARCH & SELECT LIMITED
  • MOJO BRIDGE LIMITED
  • PETROFAC SERVICES LIMITED
  • PETROFAC TREASURY UK LIMITED
  • TALLARNA LIMITED
  • TOOLSTREAM LIMITED
  • VITRINE GLAZING SYSTEMS LIMITED
  • ZERO WASTE TECHNOLOGIES LIMITED

Appointments of Liquidators

UNG HORIZON UK SPV LIMITED

AMMARA COMMERCIAL CONSULTING LTD

ARMACELL INSULATION UK HOLDING LIMITED

AWL U.K. LTD

BILL SMITH JEWELLERS LIMITED

BIRMINGHAM PARTITIONING SUPPLIES LIMITED

BMH CONSULTANCY LTD

BUTTERWORTH JESSELTON HOLDINGS LIMITED

CHESTER SYSTEMS LIMITED

CLAIRE BULLOCK CONSULTANCY LIMITED

COMMUNITY ELDERLY AND DISABLED SUPPORT CIC

DANESGATE LTD

DBBK LIMITED

DEBCOR LTD

DMIT CONSULTING LIMITED

DRAUPNIR HOLDINGS LIMITED

ELWORTH CONSULTANCY LIMITED

EVENTINGLIVE LIMITED

EWAN HOUSE LTD

FINO SERVICECO LIMITED

ICS ROBOTICS GROUP LIMITED

IMA ASSETS & INVESTMENTS LTD

JOHRI SURGICAL SERVICES LIMITED

KEVIN SKUCE LIMITED

LANGAN ADVISORY LIMITED

LINKLINE TECHNOLOGY LIMITED

PARKSPA SECURITIES LIMITED

PATHWAYS CONSULTANCY AND TRAINING SERVICES LTD

QAGCO LIMITED

REAL WORLD DEVELOPMENTS LIMITED

SIDER PROPERTY SERVICES LIMITED

SLOANE TUTORS LTD

THE FIREBALL PIZZA COMPANY LIMITED

TPAY LTD

CPA membership

When customers pay late, cashflow suffers. CPA helps members spot risk early, chase overdue invoices effectively and get paid 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,