Business news 16 January 2026

Late payments remain a growing threat to small businesses, with new research showing tradespeople are increasingly forced to chase invoices or write off work entirely. While headline GDP data points to modest growth, inflation pressures, labour market uncertainty and a surge in winding-up petitions underline how fragile cash flow remains for UK SMEs — particularly those trading on credit.

James Salmon, Operations Director.

SME-focused & cash-flow stories

Two-thirds of tradespeople left chasing late payments

New research from Direct Line Business Insurance shows late payments are worsening across the trades sector. Over two-thirds of tradespeople are currently chasing at least one overdue invoice, with the average amount owed standing at £2,023. Nearly a quarter are juggling four or more unpaid invoices at once, while many have been forced to write off significant sums entirely.

As a result, behaviour is hardening. Nearly half of tradespeople now ask for proof of funds before starting larger jobs, while upfront payments and late-payment charges are becoming more common.
Why it matters: Persistent late payment directly undermines cash flow, forces SMEs to tighten credit terms, and increases the risk of insolvency across supply chains.

Hotel Café Royal faces winding-up petition

Luxury London hotel Café Royal is facing a winding-up petition from HMRC over unpaid tax liabilities. Despite reporting turnover of £38.7m, the business made a £1.5m pre-tax loss, highlighting how even high-end operators are struggling with costs and tax burdens.
Why it matters: HMRC enforcement remains aggressive, and unpaid tax is increasingly triggering insolvency action — even for well-known, revenue-generating businesses.

LK Bennett files for administration

Fashion retailer LK Bennett has filed a notice of intention to appoint administrators, giving it a short window to secure new investment or a buyer. Trading will continue while a sale process begins.
Why it matters: Retail insolvencies raise credit risk for suppliers, landlords and service providers already exposed to fragile consumer demand.

Insurance firm collapse leaves policyholders exposed

Premier Insurance Company has entered administration, leaving more than 16,000 policyholders facing uncertainty. While some cover remains valid, protection levels may vary, according to the FCA.
Why it matters: Insurance failures can disrupt trading overnight, leaving SMEs unexpectedly uninsured and exposed to operational and financial risk.

Tax, government & regulation

Remote working tax relief to be scrapped

From April 2026, employees will no longer be able to claim tax relief for home-working costs such as energy and broadband. Employers may still support costs tax-free, but the burden shifts away from HMRC.
Why it matters: Rising household costs can affect staff retention, wage demands and morale, particularly for small employers with limited flexibility.

Chancellor considers wider support for hospitality

The government is reviewing whether business-rates support should be extended beyond pubs to the wider hospitality sector. Industry leaders warn that hotels and pharmacies face rate rises exceeding 100%, with calls growing for a broader overhaul of the system.
Why it matters: Higher rates squeeze margins and increase late-payment risk, especially for hospitality suppliers operating on thin cash buffers.

HMRC helpline outage hits taxpayers

HMRC’s phone lines were down for more than two hours, causing disruption ahead of the self-assessment deadline.
Why it matters: Administrative delays increase compliance risk and cash-flow pressure for SMEs already struggling with tax payments.

Economy, employment & inflation

UK economy grows faster than expected in November

The UK economy grew by 0.3% in November, marking the fastest growth since the 0.4% recorded in April. Analysts had been expecting monthly GDP growth of just 0.1%. The growth was driven by a return to production at Jaguar Land Rover and strong performance in the tech sector. The Office for National Statistics data shows that the dominant services sector was up by 0.3%, and production, which includes manufacturing, was 1.1% higher. Construction, however, fell by 1.3%. While November’s growth exceeded forecasts, the three-month growth rate remains low at 0.1%. Despite the growth, concerns about consumer spending and tax burdens persist. Suren Thiru, economics director at the ICEAW, said the figures “confirm an unexpectedly upbeat November for the economy,” adding that “November’s uptick means it’s inevitable that the UK economy grew modestly across the final quarter of 2025.” Thomas Pugh, chief economist at RSM UK, said he expects the economy “did little more than stagnate” in Q4. Yael Selfin, chief economist at KPMG UK, noted that the figures show that economic activity accelerated despite pre-Budget uncertainty.
Why it matters: Modest growth offers limited relief for SMEs facing rising costs and uncertain demand.

Labour market shows signs of cooling

Wage growth is expected to ease to 3.7%, with unemployment holding at 5.1%. The Bank of England is watching a broad set of indicators amid concerns the jobs market may weaken further.
Why it matters: Softer wage growth may ease cost pressure, but weaker employment can quickly impact customer payment behaviour.

Inflation expected to tick higher before easing

December CPI is forecast to rise to 3.4%, driven by higher tobacco duty and airfares, with services inflation nearing 4.7%. Inflation is expected to fall back towards 2% in 2026.
Why it matters: Persistent inflation keeps pressure on costs, pricing decisions and working capital.

Mayor warns AI could hit jobs

London Mayor Sir Sadiq Khan has warned that uncontrolled AI adoption could lead to job losses and inequality, particularly in finance and creative sectors.
Why it matters: Rapid labour shifts increase uncertainty for SMEs planning staffing, skills and long-term costs.

Markets snapshot

Global markets were driven primarily by renewed optimism around artificial intelligence and strong US corporate earnings, while UK and European equities lagged amid ongoing economic and policy uncertainty.

United States:
US equity markets pushed further into record territory. The S&P 500 closed at 6,944, while the Nasdaq Composite ended at 23,530, both supported by a rally in semiconductor and technology stocks. The Dow Jones Industrial Average rose to 49,442, helped by strong financial sector earnings. Taiwan Semiconductor Manufacturing Company’s blowout results reinforced confidence that AI-driven demand remains durable, lifting chipmakers across the board. Nvidia gained more than 2%, while ASML hit a record valuation, topping $500bn. Major banks also added momentum, with Goldman Sachs and Morgan Stanley rising sharply after forecast-beating results, easing concerns around credit quality and loan losses.

Europe:
European markets were more subdued. The Euro Stoxx 50 slipped to 6,025, Germany’s DAX edged down to 25,311, and France’s CAC 40 fell to 8,276. Despite enthusiasm around semiconductors following TSMC’s update, broader sentiment was weighed down by concerns over slowing growth, labour market uncertainty and fiscal pressures. UK equities underperformed, with the FTSE 100 falling to 10,216, even after data showed UK GDP grew faster than expected in November. Investors appear cautious about how sustainable that growth will be given weak construction activity and persistent inflation pressures.

Asia:
Asian markets were mixed. Japan’s Nikkei 225 fell to 53,936, while Hong Kong’s Hang Seng slipped to 26,845 and China’s Shanghai Composite declined to 4,102. Despite the declines, Asian technology stocks reached record highs, tracking gains in US chipmakers. Currency moves also played a role, with the Japanese yen strengthening after officials warned they were prepared to act against excessive volatility, raising concerns about export competitiveness.

Currencies:
Sterling was broadly steady. The pound strengthened slightly against the dollar, with USD/GBP at 0.7466, reflecting expectations that US rate cuts may come sooner than previously thought. Against the euro, EUR/GBP rose to 0.8669, keeping pressure on UK exporters. The yen strengthened following government intervention signals, while commodity-linked currencies such as the Canadian dollar weakened as oil prices fell.

Commodities:
Energy markets were volatile. Brent crude fell sharply from recent highs to around $64 per barrel, while WTI traded near $59.50, after comments from President Trump eased fears of imminent military escalation involving Iran. The drop marked the biggest oil sell-off since June.
Precious metals retreated after recent record highs. Gold slipped to $4,604 per ounce and silver fell to $91, as profit-taking set in and the US held off imposing tariffs on critical minerals. Industrial metals also declined, with copper and aluminium under pressure after China moved to curb high-frequency trading activity in futures markets.

Overall sentiment:
Market sentiment remains cautiously positive, driven by AI optimism and resilient corporate earnings, but investors are increasingly selective. Concerns around inflation persistence, labour market softening and geopolitical risk continue to cap enthusiasm, particularly outside the US.

Insolvencies

Petitions to wind up (Companies)

• 9092 Catering Co Ltd
• Angel Kebab Limited
• Anchor Event Management Ltd
• Apex Courier & Delivery Services Ltd
• Apex IT Communications Ltd
• Ara Eximium Ltd
• Arkcon Limited
• Art Focus Investments Limited
• Avenue Heating Ltd
• B&B (UK) Ltd
• B E H Solutions Limited
• Bells Enterprises Ltd
• Berkeley (Insurance) Limited
• Blueprint Packaging Limited
• Blue Oscar Facilities Limited
• Bosun Recruitment Limited
• Cheney Catering Limited
• City 2 City Cleaning Limited
• Clique Luxury Events Ltd
• Co-Space Consultants Ltd
• David Gibbins Consultancy Limited
• Derby Court (Liverpool) Ltd
• Destiney Social Care Provider Ltd
• DJP Services NE Limited
• DMH Building Contractors Ltd
• Dream Mode Limited
• Ealing Builders Ltd
• EDP Midlands Limited
• Ellis Noble Leisure Limited
• Express Transport (UK) Ltd
• F & A Enterprise Ltd
• Fast Cargo BG Ltd
• Fifth Gear Transport Services Ltd
• Fortunes Payroll Ltd
• GL Star Construction Ltd
• Guru Jii Limited
• Hadson Group Limited
• Harbour Pubs IW Limited
• Hollow Oak Nursing Home Limited
• Hunter Leahy Estate Agents Limited
• Infostash Ltd
• JVR Resources Limited
• KAF Consultancy Ltd
• Keywork Central Ltd
• Knighton Cleaning Services Limited
• Lewes House Sale.com Limited
• Mahas Design Ltd
• Mass Media Outdoor Limited
• Master Cleaning Group Ltd
• MDK Outsourcing Solutions Ltd
• Monument Property Services Ltd
• Moviegears Media Limited
• MVP Pro UK Limited
• N D B Engineering Limited
• Oceanfront Gos Ltd
• O’Connors Crumlin Ltd
• Opes MRF 2013 Limited
• Patron Network Ltd
• Peak Physique BT9 Limited
• Pavilion Signs Limited
• Pinnacle Media Partnerships Limited
• Polash Restaurant Ltd
• Powered by Data Ltd
• Professional Voice Limited
• R Haigh Limited
• Reflect Construction Ltd
• Robinson Brothers Transport Limited
• Rooms Food and Drink Ltd
• Ronit Consulting Ltd
• Sanctuary Oasis Services Ltd
• Seades Support Services Ltd
• Seremed Healthcare Ltd
• Sheikh Waqas Limited
• Shosky U.K. Limited
• Square Repair Ltd
• Structural Timber Systems Ltd
• Superfox Ltd
• Tanasa Holdings Ltd
• The Arcade Foundry Ltd
• The Premier Group North Wales Ltd
• Three Flames Ltd
• Towner Finishes Limited
• Treble 99 Limited
• Var One Limited
• Vesper London Ltd
• Wan Plastering Limited
• Willows Pre-School Limited
• Z & K Fleets Ltd
• Zorro Capital Limited

Appointment of Administrators

• Corrotherm International Ltd
• Ellis Noble Leisure Limited

Appointment of Liquidators

• JJHS Consulting Ltd
• Mark Lesley Limited
• Mellow Mist Limited
• MITS 4U Limited
• Mitruit Eyecare Limited
• Mortar Nova Grand Avenue LLP
• Purposefy Consulting Limited
• The Lion Hotel (Criccieth) Limited
• Tricor Services Europe LLP

How CPA membership could help

Late payments, tax pressure and rising insolvencies are no longer isolated risks — they are becoming structural. CPA helps members protect cash flow, reduce write-offs and recover overdue invoices ethically and efficiently, so money comes directly to you when it’s owed.

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.