Business news 16 October 2025

UK businesses face a tight squeeze as growth stalls and tax hikes loom. The Chancellor is preparing for one of the most difficult Budgets in recent years, with both the Institute for Fiscal Studies and the IMF warning that the UK’s fragile fiscal position leaves little room for manoeuvre. August’s GDP figures show the economy barely expanded, while insolvencies continue to rise and small business margins tighten. Markets remain volatile, with gold surging to record highs and sterling buoyed by a modest GDP uptick..

James Salmon, Operations Director.

Top stories for SMEs

1. Reeves faces £50bn fiscal hole and pressure for tax rises
Chancellor Rachel Reeves has confirmed that both tax increases and spending cuts are being considered ahead of the Budget as she looks to plug a financial shortfall estimated at up to £50bn. The Chancellor acknowledged Brexit’s “severe and long-lasting” impact and said higher taxes on the wealthy would “be part of the story.” The IFS now says Reeves needs to raise her fiscal buffer fivefold—requiring as much as £22bn—to avoid further hikes in the future.
Sources: Sky News, BBC, City AM, The Times

2. Inheritance tax set to hit more middle-class families
Frozen thresholds and rising asset values mean more ordinary families will face 40% inheritance tax bills. With nil-rate bands fixed until 2030 and pensions potentially becoming liable from 2027, IHT is “fast becoming the great middle-class trap,” experts warn.
Source: Daily Mirror

3. IHT reforms could devastate family farms
Family Business UK has urged ministers to rethink proposed changes that would cap inheritance tax relief at £1m, warning of potential £14.8bn losses to the economy and over 200,000 job cuts in farming and family enterprises.
Source: City AM

4. Budget may boost small business share schemes
The Treasury is reportedly considering raising the Enterprise Management Incentive cap to help small firms reward staff tax-efficiently. The move could significantly expand access to EMI options for growing SMEs.
Source: Sky News

5. MPs rebel over business rates increase
More than 50 Labour MPs have voiced opposition to raising business rates for large hospitality venues, warning of closures and job losses. Industry leaders are calling for VAT and National Insurance cuts instead.
Source: Daily Mail

6. Chancellor considering ISA cuts
Rachel Reeves may halve the cash ISA allowance from £20,000 to £10,000, while retaining the full limit for stocks and shares ISAs. Industry voices have urged broader reforms to simplify the savings market.
Sources: City AM, The Times

7. SME performance mixed in Q2
Sage’s latest Small Business Tracker shows UK SMEs saw a 0.2% drop in revenues but a 3.7% rise in profits in Q2. Business spending fell for the first time since early 2024.
Source: The Scotsman

8. Housebuilding slowdown deepens
Data shows over 12,900 builders are now in administration or liquidation, up 63% from 2022. The number of active housebuilders has fallen for the first time in a decade, threatening housing targets.
Sources: Daily Mail, The Times

9. IMF warns of global debt surge
The IMF forecasts global public debt will surpass 100% of GDP by 2029, warning that overspending risks long-term fiscal stability. The UK, already above £3trn in debt, is among the nations under pressure.
Source: City AM

Market Snapshot

The UK economy expanded by just 0.1% in August, with production rising modestly but services stagnating and construction output falling. July’s growth was revised down to -0.1%, underlining weak momentum heading into the winter.

Equities: European markets were mixed, with the Stoxx 600 edging up 0.1% while Whitbread fell 6.7%. The FTSE 100 is expected to open 0.2% lower after closing at 9,424.75. US stocks rose overnight as strong tech earnings offset trade concerns.

Commodities: Gold continued its record-breaking run above $4,240/oz, fuelled by demand for safe assets and expectations of multiple US rate cuts. Oil prices ticked higher above $62 as new UK sanctions hit Russian producers, while European gas rose past €32/MWh amid renewed tensions.

Currencies: The euro strengthened to $1.1650 and sterling climbed to $1.34, its best level since late August, supported by the slight GDP expansion and dollar weakness.

Insolvencies

  • Appointments of Administrators
  • B I Halder & Son Limited
  • Baptt Shopfitters Limited
  • Color Estates Limited
  • Commercial Estates Group Limited
  • Commercial Estates Services Limited
  • Etag Fixings UK Limited
  • Move Inn Supplies Ltd
  • PHBB Restaurants Ltd
  • Union Electric Steel UK Limited
  • Waterline Limited
  • Appointments of Liquidators
  • Acorns in Adel Limited
  • Ackerman Advisors Ltd
  • Aegis Advanced Metals Limited
  • Astbury Formentera Limited
  • Bennetts Family Furnishings Limited
  • Bluebelle Consulting Limited
  • Capability Development Support and Consultancy Limited
  • Construct PM Ltd
  • Contos Consulting Ltd
  • CWE Holdings Limited
  • DPJ Environmental Limited
  • Etna Ltd
  • GNH Consultancy Limited
  • Gul Beauty Limited
  • Harris Logistics Management Limited
  • Hestia Property Limited
  • Highfield Family Trading Ltd
  • Ingyin Flower Limited
  • Ivy Springs Limited
  • JPR Trustee Services Limited
  • Kevan Brown Limited
  • M & N Sheth Limited
  • M Kelly Orthopaedics Ltd
  • Matthew Dewar Carpentry Limited
  • MD Sunbeam Limited
  • Meadow Wood Pet Crematorium Ltd
  • Mondy Limited
  • Norglen Legal Limited
  • Ribev Ltd
  • Saran Consulting Limited
  • Scott Fraser Consulting Ltd
  • SGB Holdings Limited
  • Sid’s Dog Walking Limited
  • Winerock Ltd
  • Zero Knowledge Validation Ltd
  • Petitions to Wind Up (Companies)
  • Al Madina Bedford Ltd
  • Batoul Clinic Limited
  • ELC Roofing Ltd
  • Gibbs Surfacing Limited
  • Granite Glen Limited
  • Hardy Building Services Limited
  • JBA Electrical Services Ltd
  • JFG Park Services Ltd
  • J H Contract Services Limited
  • Land Flip Ltd
  • Morform Insitu Limited
  • Myrah Construction Limited
  • Painease Ltd
  • Pharma Sheet Metal Ltd
  • QS Coffee Ltd
  • Rancom Security Limited
  • RGL Construction Contracts Limited
  • SK Merchandise Ltd
  • T P Bradbury Ltd
  • Uniwaste Ltd
  • VVV Services Ltd
  • Woburn Care Company Ltd
  • Yesfam Ltd

Winding Up Orders (Companies)
Pearcroft Homes Ltd

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