Business news 17 December 2025
UK inflation cooled far more sharply than expected in November, strengthening the case for a Bank of England rate cut this week. However, rising unemployment, mounting tax pressure, industrial disruption and a heavy flow of insolvencies underline that many SMEs remain under significant strain — particularly those trading on credit.
James Salmon, Operations Director.
Economic News
UK inflation falls to 3.2%, rate cut hopes rise
Inflation dropped to 3.2% in November, well below forecasts of 3.5% and down from 3.6% in October, according to the Office for National Statistics. Core inflation also eased to 3.2%. The figures increase expectations that the Bank of England could cut interest rates at its final meeting of the year on Thursday.
Why it matters: Lower inflation and potential rate cuts may ease borrowing costs, but weaker demand can still delay customer payments.
Employment & Labour Market
UK unemployment rises to highest level since 2021
The unemployment rate rose to 5.1% in the three months to October, with payroll employment falling by 149,000 year-on-year. Wage growth slowed and youth unemployment climbed to 16%, while London’s jobless rate rose to 6.8%.
Why it matters: Rising unemployment increases payment risk as customers face tighter finances.
NHS resident doctors’ strike threatens service disruption
Patients in England were warned of disruption to non-urgent care as resident doctors begin a five-day strike, the 14th walkout in a long-running pay dispute. The action comes as hospitals face pressure from a severe flu outbreak.
Why it matters: Public-sector disruption can ripple into private suppliers and contractors relying on NHS payments.
Tax & Government
Dividend tax rises and ISA cuts alarm DIY investors
Dividend tax will rise from April 2026, ISA allowances will be cut, and frozen income tax thresholds are expected to push around 920,000 more people into higher tax bands.
Why it matters: Higher personal tax burdens reduce disposable income for business owners and sole traders.
PAYE tax on side hustles sparks backlash
From 2029, employees with side income will be taxed via PAYE coding, a move criticised for risking over-taxation where incomes fluctuate.
Why it matters: Cash-flow volatility increases the likelihood of late supplier payments.
Making Tax Digital rollout gathers pace
HMRC has written to over 200,000 people ahead of mandatory Making Tax Digital for Income Tax from April 2026, affecting self-employed individuals and landlords earning over £50,000.
Why it matters: Poor tax preparation can trigger cash disruption and missed payments.
Morrisons hit with £17m VAT bill
The High Court ruled Morrisons’ hot rotisserie chickens are subject to 20% VAT under “pasty tax” rules.
Why it matters: Unexpected tax liabilities can severely damage short-term cash flow.
Business, Industry & Trade
Ineos secures government backing to save Grangemouth plant
Ineos will receive a £75m government loan guarantee and a £50m grant as part of a £150m investment to secure more than 500 jobs at Grangemouth. The move comes amid widespread closures across Europe’s chemicals sector.
Why it matters: State support can stabilise suppliers, but highlights how fragile heavy industry has become.
UK signs free trade agreement with South Korea
The long-awaited deal is expected to boost UK exporters, including automotive and drinks firms.
Why it matters: Export growth brings opportunity but increases exposure to overseas credit risk.
Hospitality chiefs warn over rising business rates
Industry leaders say warnings about sharply rising pub rateable values were ignored, with average values up 30% before relief reductions.
Why it matters: Rising fixed costs weaken businesses’ ability to pay invoices on time.
International & Markets
US unemployment jumps to 4.6% as growth slows
US job growth remains weak, retail sales are flat and business activity expanded at its slowest pace in six months, unsettling markets.
Why it matters: Global slowdowns often spill into UK demand and worsen debtor payment behaviour.
Trump administration threatens retaliation over EU tech taxes
The US has warned of retaliatory measures against the EU over attempts to tax American tech firms, naming Accenture, Siemens and Spotify as possible targets.
Why it matters: Trade friction raises costs and uncertainty for firms operating across borders.
Warner Bros Discovery set to reject $108bn Paramount bid
Warner Bros Discovery is expected to advise shareholders to reject Paramount’s takeover offer after a key backer withdrew.
Why it matters: Consolidation pressures highlight stress in the media and entertainment sector.
Trump sues BBC for $10bn
Donald Trump has launched a lawsuit against the BBC, alleging misleading editing in a documentary.
Why it matters: Large-scale litigation underlines growing reputational and legal risk for global businesses.
Market Summary – UK, Europe & North America
UK markets outperformed peers, with the FTSE 100 rising 1.15% to 9,796, while the Euro Stoxx 50 gained 0.35%. US markets were broadly flat, with the S&P 500 and Nasdaq struggling for direction after recent volatility.
Oil prices remained volatile. Brent crude fell below $60 a barrel and WTI hovered around $55 amid oversupply concerns and hopes of progress towards ending the Ukraine conflict, despite geopolitical tension involving Venezuela.
Gold rose around 0.7% as investors sought safety.
Sterling weakened against the dollar to around $1.33 but firmed slightly against the euro near 1.14, with markets increasingly pricing in a Bank of England rate cut.
Insolvency notices
Appointments of administrators
Appointments of liquidators
- AML Limited
- Auroo Consultancy Ltd
- Boks Holdings Limited
- C J Bourne (Asset Management) Limited
- Cargill Investments
- Cat Vehicles Management UK Limited
- Churn River Limited
- Claybury Consultancy Limited
- Deltatex Consulting Limited
- Fellview Healthcare Limited
- FGH-FS Consultancy Ltd
- GDT Consulting Limited
- Geoff Gibson Consultancy Ltd
- Globallogic (UK) Limited
- HGG Consulting Limited
- IWC Financial Ltd
- J G Evison Limited
- JMTC Project Management Services Limited
- Kavicoltd Limited
- Lingotto I LLP
- Mackie Consumer Marketing Co. Limited
- Maltby Services Limited
- MDNA Ltd
- Mirova UK Limited
- Mortimer BTL 2022-1 Plc
- Nabu.xyz Ltd
- NFE 2226 UK Limited
- Northcliffe & Seaview Holiday Parks Limited
- Novapoly Limited
- Pidcock and Beastall Limited
- Prudential Financial Partners (Asia) Limited
- R Stafford Charles Company
- Roadmark Travel Limited
- Silk Road Finance Number Six Plc
- TC East Midlands Limited
- Torgold Limited
- UBS Asset Management Holding (No.2) Ltd
- Warner Organisation Limited
- Ystwyth Medical Services Limited
Winding-up petitions
- Gas and Air Technology Ltd
- RM Retail Store Ltd
- Yeoldefoundry Limited
How CPA can support you
When inflation cools but insolvencies rise, credit control becomes critical. CPA members use CreditCare reports, continuous monitoring and our Overdue Account Recovery service to identify risk early and recover invoices before problems escalate.
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 – Total Credit Management