Business news 20 January 2026
UK businesses are facing a tougher operating environment as job losses accelerate, wage growth cools, and global markets are shaken by renewed tariff threats from Donald Trump. While some confidence remains around UK investment appeal, uncertainty over trade, labour costs, and demand is clearly rising — increasing the risk of late payment and counterparty failure for firms trading on credit.
James Salmon, Operations Director.
Business News
Trump tariff threats spark trade and market uncertainty
Global markets were unsettled after President Donald Trump threatened new tariffs on allies opposing his push to acquire Greenland. The proposals risk a renewed trade war, with analysts warning the EU and UK could retaliate in unison. Business groups urged calm, but investors rushed into safe-haven assets, pushing gold to record highs.
Why it matters: Trade disruption raises costs, delays payments, and increases the risk of customer insolvency — especially for SMEs exposed to exports or imported inputs.
UK firms cut jobs at fastest pace in five years
UK employers cut jobs at the fastest rate since 2020, with payrolls falling by 43,000 in December — double market expectations. Unemployment held at 5.1%, near a five-year high, while redundancy notifications surged. Since the October Budget, payrolls have dropped by an estimated 220,000 as firms respond to rising employment costs and weaker demand.
Why it matters: Job losses and rising redundancies weaken consumer spending and increase late-payment risk across supply chains.
Wage growth cools as labour market weakens
Regular pay growth slowed to its lowest level in three and a half years, with private-sector wages rising just 3.6% year-on-year. While public-sector pay surged, economists warned this support will fade. The Bank of England now faces growing pressure over interest-rate cuts as the labour market cools.
Why it matters: Slower wage growth signals weakening demand, which often leads to stretched payment terms and slower invoice settlement.
UK policy, tax & regulation
Labour pressed to set out business rates reform
Labour MPs are urging Chancellor Rachel Reeves to publish a clear plan to overhaul business rates, arguing the system should be replaced rather than subsidised. Hospitality businesses are lobbying hard for relief as costs remain elevated.
Why it matters: Uncertainty over fixed costs makes cash-flow planning harder and increases reliance on credit.
Audit reform bill scrapped
The Government has abandoned long-planned audit reforms following the Carillion collapse, citing improved audit quality and the risk of adding costs to large firms. Industry bodies warned the decision weakens confidence in company accounts.
Why it matters: Weaker oversight increases counterparty risk for SMEs relying on published accounts when offering credit.
Millions overpay tax due to PAYE errors
HMRC data shows more than 5.6 million taxpayers overpaid £3.5bn in income tax, often due to incorrect tax codes. Experts warn many errors go unnoticed.
Why it matters: Overpaid tax quietly drains cash flow — especially for directors and small employers already under pressure.
AI risks threaten UK financial stability
MPs warned that inadequate regulation of AI poses serious risks to the UK financial system, with over 75% of City firms now using AI. Regulators were urged to run AI stress tests.
Why it matters: AI-related failures could disrupt payment systems and credit decision-making, increasing systemic payment risk.
Industry & sector news
Landlord purchases hit record low
Landlord activity fell to just 10.9% of UK home purchases in 2025 as higher taxes and tighter regulation drove investors out. Analysts warn rents may rise as supply tightens.
Why it matters: Higher rents push up wage demands and living costs, squeezing both businesses and customers’ ability to pay on time.
Moores Furniture Group enters administration
West Yorkshire-based Moores Furniture collapsed amid “challenging trading conditions”, with 124 redundancies announced. Parts of the business were sold to Wren Trade Kitchens.
Why it matters: Construction and manufacturing supply chains remain fragile, raising exposure for suppliers trading on credit.
Wise reports strong growth, eyes US listing
Money-transfer firm Wise reported strong third-quarter growth, with cross-border volumes up 25% and active customers rising to 10.9 million. The firm plans a US dual listing in 2026.
Why it matters: Growing use of fintech highlights demand for faster, more reliable cross-border payments — and intolerance for slow settlement.
Micron to buy Taiwanese chip plant
Micron will acquire a $1.8bn Taiwanese facility to meet soaring AI-driven chip demand, further tightening supply for consumer electronics manufacturers.
Why it matters: Supply shortages raise costs and payment risk across manufacturing supply chains.
Market snapshot
Global markets sold off sharply as geopolitical and trade tensions escalated.
Equities:
European stocks posted their worst session in two months. The Stoxx 600 fell 1.2%, with Paris down 1.8% and Frankfurt 1.3%. London was more resilient but still weaker, with the FTSE 100 down around 0.4%. US markets were closed, but futures pointed lower, with the S&P 500 down 1.7% and Nasdaq futures off 1.6%.
Currencies:
The dollar weakened against all major peers as investors grew uneasy about US trade policy. Sterling strengthened modestly against the dollar and euro, while the yen rebounded amid rising Japanese bond yields.
Commodities:
Gold surged to fresh record highs above $4,700 per ounce as investors sought safety. Silver also hit record levels. Oil prices were broadly steady, while natural gas spiked more than 20% on forecasts of extreme cold in the US.
Volatility:
The VIX volatility index rose above 20 for the first time since November, underlining rising market anxiety.
What it means for SMEs:
Market volatility, weaker equity sentiment, and currency swings often translate into tighter credit conditions and more cautious customer behaviour — increasing the importance of proactive credit control.
Insolvencies – latest notices
Appointments of Administrators
- CHESHIRE EAST SCAFFOLDING LIMITED
- LOGIC INVESTMENTS LTD
Appointments of Liquidators
- ARGO (NO. 617) LIMITED
- B5E LIMITED
- B5E PROPERTIES LIMITED
- BEAU TALK PRODUCTIONS LTD
- CASHMERE UK LIMITED
- CGL PSYCHOLOGY SERVICES LTD
- CLAIRE COLEMAN LIMITED
- CONSULTANTS PAR EXCELLENCE LIMITED
- DAFO CONSULTING LTD
- DALE JAMES (BOOKMAKERS) LIMITED
- JELOISE LIMITED
- KILFROST EUROPE LTD
- MANUSOL CONSULTING LTD
- MARINDA DEVELOPMENTS LIMITED
- MID-KENT CONTRACT CLEANING SERVICES LTD
- NAXOS INVESTMENTS LIMITED
- PAPA CHANS LIMITED
- PETER NILSSON CONSULTING LIMITED
- Q.S. SERVICES (N.W.) LIMITED
- SDB PROPERTIES LIMITED
- SHORES & LEGAL LIMITED
- VALE STUDIOS LIMITED
- WEEDON & GREENS NORTON MEDICAL PRACTICE LIMITED
Petitions to Wind Up
- COLOURWELL PAINT LIMITED
- FEATHERFOOT COACHMAN LIMITED
- PK WEST END LIMITED
- POSITIONEERING GROUP LIMITED
- THISTLEROCK DESIGNS LIMITED
- TYDWELL LIMITED
- YUNMA TIANLONG INTERNATIONAL CONSULTING CO., LIMITED
What CPA can do for you
Rising job losses, tariff threats and market volatility all increase the risk of late payment and bad debt. CPA helps Members spot warning signs early, monitor customers, and recover overdue accounts without damaging relationships — so cash keeps flowing when conditions get tougher.
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.