Business news 19 January 2026

UK businesses start the week facing a sharp rise in geopolitical and economic uncertainty. Donald Trump’s threat to impose tariffs on the UK and other European nations over Greenland has rattled markets, pushed investors into safe havens, and raised fresh fears of recession. At home, confidence among businesses—particularly in London and Scotland—continues to weaken, while tax, regulation and inflation pressures remain elevated. Insolvencies remain high, underlining how fragile cash flow conditions are for many SMEs

James Salmon, Operations Director.

Business News

Trump’s Greenland tariffs threaten UK recession

Donald Trump has warned he will impose 10% tariffs on the UK and seven other European nations from February, rising to 25% by June, unless they accede to US demands over Greenland. Economists estimate the measures could cost UK exporters more than £6bn a year initially, rising to over £15bn under higher tariffs, with manufacturing and pharmaceuticals hardest hit. EU leaders are preparing retaliatory measures, raising the risk of a wider trade conflict.

Why it matters: Tariffs raise costs, squeeze margins and increase late payments as customers struggle—making cash flow protection critical for SMEs trading on credit.

EU prepares retaliation as trade tensions escalate

The EU is actively considering retaliatory tariffs against the US to create leverage ahead of talks at Davos. While some diplomats are urging restraint, the rhetoric on both sides has intensified, adding to market volatility and uncertainty for exporters.

Why it matters: Prolonged trade disputes increase uncertainty, delay orders and heighten default risk among customers across supply chains.

Markets slide as investors flee to safety

European stocks and US futures fell sharply as Trump’s tariff threats dominated sentiment. Auto, luxury and banking stocks led declines, while defence stocks hit record highs. Investors moved heavily into gold and silver, both hitting record prices, while oil fell on a risk-off tone.

Why it matters: Market volatility often feeds into tighter credit conditions, making customers slower to pay and financing harder to secure for SMEs.

Market Snapshot

Equities:

• FTSE 100: 10,175.70 (▼0.58%)
• Euro Stoxx 50: 5,927.21 (▼1.70%)
• DAX: 24,964.77 (▼1.31%)
• CAC 40: 8,136.87 (▼1.48%)

US markets were closed, but futures pointed lower. Asia was mixed, with Japan and Hong Kong down, while China edged higher.

Currencies (vs GBP):
Sterling strengthened modestly against the dollar, euro and Swiss franc, but weakened against the yen and Aussie dollar.

Commodities:

• Gold: $4,668.93/oz (record high)
• Silver: $92.99/oz (record high)
• Brent crude: $63.33 (▼1.25%)

Bottom line: Markets are firmly risk-off, driven by trade fears and geopolitical tension.

Business confidence in London hits record low

Only 25% of London businesses expect economic improvement in 2026, according to the LCCI. Firms cite the Employment Rights Bill as a major deterrent to hiring, warning that rising costs and risks are suppressing growth.

Why it matters: Low confidence often leads to delayed payments and more cautious customer behaviour, increasing credit risk for suppliers.

Scottish SMEs in decline

Scotland has lost more than 5,300 SMEs since 2020, with rural areas particularly affected. Despite some budget support, business groups warn that the trend reflects deeper structural pressures.

Why it matters: Fewer SMEs means tighter local economies and higher counterparty risk when trading on credit.

Leon founder attacks ‘toxic’ tax regime

Leon’s founder John Vincent says government tax policy is making his business loss-making, forcing plans to close 20 sites. He highlighted the impact of VAT and higher National Insurance.

Why it matters: Rising tax pressure weakens cash flow and increases insolvency risk among customers in hospitality and retail.

UK growth outlook remains weak

The UK economy is forecast to grow just 1% this year, driven mainly by the public sector. Consumer confidence remains fragile, and any rate cuts may be delayed by inflation.

Why it matters: Weak growth raises the likelihood of late payments and bad debts as customers struggle.

Inflation may rise again

Economists expect UK inflation to tick higher in December, driven by travel costs and tobacco duties, before easing later in the year.

Why it matters: Inflation squeezes household and business cash flow, increasing pressure on payment behaviour.

Property market: prices jump but stock surges

Rightmove reports the sharpest rise in asking prices in over a decade, while Zoopla shows the highest number of homes for sale in eight years, with many relisted after failing to sell.

Why it matters: Housing uncertainty affects consumer spending, which feeds directly into SME revenues and payment reliability.

Global regulation risks intensify

Over 80% of businesses fear cross-border investigations in 2026, with tax, cybersecurity and trade policy risks dominating, according to Baker McKenzie.

Why it matters: Rising compliance costs reduce financial headroom and increase the risk of delayed payments.

OpenAI turns to advertising

OpenAI will test personalised advertising on free and low-cost ChatGPT tiers as it seeks new revenue streams.

Why it matters: Even high-growth tech firms are under pressure to monetise—highlighting how widespread cash strain has become.

Insolvencies & Winding-Up Notices

Administrations

• A & R COMMUNICATIONS LIMITED
• C.F. BOOTH LIMITED
• C.W. SELLORS (GOLD AND SILVERSMITHS) LIMITED
• CRESSBROOK INVESTMENTS LIMITED
• JIMMY’S RESTAURANT AND BAR MEDITERRANEAN LIMITED
• THOMAS STOREY FABRICATION LIMITED
• ZENITH PEOPLE LIMITED

Liquidations

• 270 SOLUTIONS LTD
• ABC2025 LIMITED
• ABLEFLOW LIMITED
• ANDERS FINANCIAL LIMITED
• BROFIELDS LIMITED
• CARE ONCOLOGY LTD
• CENTRALIS ADMINISTRATIVE SERVICES (UK) LIMITED
• D. SUTHERLAND (DIAGNOSTICS) LIMITED
• DAWSON & EMMERSON LIMITED
• DKB MANAGEMENT (UK) LIMITED
• E&M MCGOWN CONSULTANCY SOLUTIONS LTD
• EXCITECH LIMITED
• HAWKER ENGINEERING LIMITED
• ISTIC LIMITED
• JEAN HAMILTON LIMITED
• JWE DATA SOLUTIONS LTD
• JXM CONSULTING LTD
• KRISH IT LTD
• LAIKA NETWORK LIMITED
• MB DEVELOPMENTS (SCOTLAND) LTD
• MISTER INSTALLATION LIMITED
• NEVARCIAN LIMITED
• N LOWTHER CONSULTING LIMITED
• OAKCAPE LIMITED
• P KANE METALS LTD
• PROMETHEUS MO LIMITED
• QSDA LTD
• RALEIGH PARTNERS INVESTMENTS LTD
• RICANT PROPERTIES LIMITED
• ROHKEUS CYBER LTD
• SHAWLEY CONSTRUCTION COMPANY LIMITED
• SPIT SPOT MEDIA LIMITED
• THE PLASTIC ECONOMY LTD
• TIPS HELP LIMITED

Petitions to Wind Up

• A2Z DISTRIBUTIONS LIMITED
• ABBEYDALE LTD
• ACTON LANE (LONDON) LIMITED
• BMS PHOTONICS LIMITED
• DOWNING COMPLIANCE INFORMATION LIMITED
• EURO MECHANICAL HANDLING LTD
• FAIRBRIGHT PARTNERS LIMITED
• FUNDRAISING AUCTIONS LIMITED
• HALOGEN COMMUNICATIONS LIMITED
• HAMILTON WOODS HR LTD
• IPSWICH LAW LIMITED
• JBKC GROUP LTD
• MY FAMILY CARE LIMITED
• NEVE SOLUTIONS LTD
• OLD MARKET MANCHESTER LTD
• PRO GLOBAL FREIGHT SOLUTIONS LTD
• ROCKFORT CONSTRUCTION LIMITED
• RUCHI’S DOSAPARK LTD
• S E R SUPPLIES LIMITED
• SKIBRO TECHNOLOGIES LIMITED
• STRAWBERRY CORNER GARDEN CENTRE LTD
• THE LOCAL SHOP HULL LTD
• THE ROLL INN (PAISLEY) LTD
• UP MY STREET SERVICES LIMITED
• USER FRIENDLY COMPUTING LIMITED
• WE ARE COUCH LTD

Winding-Up Orders

• GAPSTOWS LIMITED
• P C FOOD AND WINE LIMITED
• THE STAITHS GROUP LIMITED

What CPA can do for you

With trade tensions rising, confidence falling and insolvencies remaining high, protecting cash flow has never been more important. CPA helps Members identify risk early, monitor customers continuously, and recover overdue accounts ethically and efficiently—so payments come directly to you when they matter most.

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.