Business News 20 November 2025

Uncertainty over the upcoming Budget is weighing heavily on businesses, with tax freezes, potential new levies, and weak market conditions all creating hesitation among both SMEs and investors. Family firms warn of closure risks, reporting failures hit major brands, the property market remains unsettled, and manufacturers face rising regulatory pressures. Markets rallied globally on Nvidia earnings, but UK equities continue to struggle. Insolvencies remain high across multiple sectors.

James Salmon, Operations Director.

SME-FOCUSED STORIES

Starmer refuses to rule out extending tax freeze

Sir Keir Starmer would not rule out an extension of the income tax threshold freeze, prompting criticism from Opposition leader Kemi Badenoch, who said Budget uncertainty is already causing cancelled investment and halted hiring. Reeves is also under pressure regarding abandoned income tax rises.
Why it matters: Threshold freezes act as stealth tax rises, reducing disposable income and increasing late payment risks.

Tax trap costs workers £38,000

Workers earning between £100,000 and £125,140 have lost up to £38,000 since thresholds were frozen, creating a 62 per cent marginal tax rate. The freeze is expected to continue until 2030.
Why it matters: Reduced take-home pay at senior levels affects B2B spending and slows decision-making on purchases.

Super-rich call for tax hike

High-net-worth figures Dale Vince and Stephen Kinsella are calling for a targeted wealth tax. Reeves has dismissed the idea.
Why it matters: Signals debate over future tax direction, adding uncertainty for high-value clients.

Family firms face closure crisis

A third of UK family businesses say tax hikes threaten their survival, with two-thirds concerned about their future and many abandoning succession plans.
Why it matters: Family firms are major SME employers; distress increases credit risk for suppliers.

Reeves plans VAT on Uber fares

A proposed 20 per cent VAT on private hire fares could raise £1bn but increase costs for low-income workers. Black cabs support the change; Uber warns prices will rise.
Why it matters: Higher transport costs hit workers and increase overheads for SMEs reliant on gig-economy logistics.

ECONOMIC STORIES

Inflation dips to 3.6 per cent but food prices rise

Inflation eased slightly, driven by lower energy costs, but food prices rose nearly 5 per cent. The Bank of England remains cautious, with rate cuts unlikely before 2027.
Why it matters: High food inflation strains household budgets, slowing consumer-facing SME demand.

Deutsche Bank warns Budget will not fix UK finances

Analysts say Reeves’ Budget is unlikely to stabilise public finances and will leave major questions unanswered.
Why it matters: Continued fiscal uncertainty limits business confidence and investment appetite.

UK investors pull £26bn from London market

Investors continue to withdraw funds from UK equities at record pace.
Why it matters: Low liquidity affects valuations and increases risk for UK-listed suppliers.

Ashmore CEO warns of another ‘Liz Truss moment’

Mark Coombs says high-deficit nations depending on markets risk sudden shocks. Others disagree.
Why it matters: Market instability raises borrowing costs for SMEs and reduces appetite for risk.

INDUSTRY-SPECIFIC STORIES

Reporting: WH Smith CEO quits after accounting error

An overstated income error in the US division wiped nearly £600m off value. Profits will fall sharply.
Why it matters: Highlights the importance of robust controls; suppliers must stay alert to financial signals from retail partners.

FRC guidance for smaller listed firms

The FRC has issued insights to help SMEs improve reporting quality, covering revenue recognition, cash flow, impairment, and instruments.
Why it matters: Better reporting reduces risk perception and supports credit decisions.

Property: Pain for first-time buyers despite falling prices

Average first-time buyer price in London reaches nearly £500,000, requiring high incomes and family support.
Why it matters: Housing pressures affect labour mobility and wage expectations for SMEs.

Sellers rush to beat possible CGT changes

Owners of £1.5m+ homes are accelerating sales before possible CGT changes on primary residences.
Why it matters: High-end property uncertainty impacts professional services and construction SMEs.

Manufacturing: Milkshake tax threatens producers

Lower sugar thresholds could cost Global Brands £10m and push production abroad. Dairy drink makers warn milk is being unfairly treated.
Why it matters: Regulatory instability makes UK manufacturing less competitive, increasing default risk.

EMPLOYMENT STORIES

Women at risk in AI job market

Women engage 20 per cent less with generative AI tools, increasing their automation vulnerability.
Why it matters: Workforce shifts affect recruitment, training budgets, and admin-heavy SME roles.

FINANCE STORIES

SAPI secures $80m funding

A significant new injection will help fund small businesses, especially those owned by women and immigrants.
Why it matters: Increased access to embedded finance could reduce SME reliance on slow-paying clients.

MARKET SNAPSHOT

Global markets rallied strongly after Nvidia’s exceptional results eased fears of an AI bubble. European chipmakers jumped, and US indices rebounded after several days of losses.

In the UK, however, markets remained under pressure. The FTSE 100 fell for the fifth straight day, dragged down by defence and payments stocks. Investor sentiment in London remains weak, with low IPO appetite and continued equity outflows.

Oil prices ticked higher but remain subdued after recent losses, and gas markets are steady thanks to high LNG imports. Metals rose on hopes of Chinese stimulus. Gold was stable at historically high levels.

Currencies saw sharp moves. The US dollar strengthened as traders reduced expectations of a December Fed rate cut. The pound fell after UK inflation dropped to 3.6 per cent, raising the chance of a Bank of England rate cut next month. The yen weakened further, hitting a 10-month low.

Overall, market sentiment is split: global tech is powering ahead, but UK assets remain fragile ahead of the Budget.

INSOLVENCIES

Appointments of Administrators

  • BRAMBLE ENERGY LIMITED
  • DJB MACHINERY LTD
  • MERIT HEALTH LIMITED
  • MERIT HOLDINGS LIMITED
  • RASICO CONSTRUCTION LTD
  • VIDEOONDEMAND365 LIMITED
  • VINYL (GB) LIMITED

Appointments of Liquidators

  • 12696311 LIMITED
  • ABBOT’S HILL LIMITED
  • AGLAYA NOVA LTD
  • BARAKEL HOLDINGS LTD
  • BARNSLEY CONSULTING LIMITED
  • BONSER & BONSER LIMITED
  • CALVERT TOWERS LIMITED
  • CM PADDOCKS HOLDINGS LIMITED
  • CORPORATE & COMMUNITY DEVELOPMENT LTD
  • CRYSTAL POLISHING COMPANY LIMITED
  • DAT PERFORMANCE CONSULTING LIMITED
  • DUNBAR CAPITAL PROJECTS LIMITED
  • FEROX CAPITAL LLP
  • FEROX CAPITAL MANAGEMENT LIMITED
  • I P HOLLOWAY LIMITED
  • ICG-LONGBOW XEROX SENIOR DEBT INVESTMENTS NO.2 LLP
  • JAMES COWPER SERVICES LIMITED
  • JP MEDICAL CONSULTANCY LIMITED
  • KINGSHOTT SCHOOL TRUST LIMITED
  • LEVEL CONSTRUCTION (SOUTH EAST) LIMITED
  • LITE-WIRE LIMITED
  • MJH FINANCIAL CONSULTANTS LIMITED
  • OAKWOOD HOMES (UK) LTD
  • OX12 CONSULTING LIMITED
  • PETER R GIBBON LIMITED
  • READING INTERIOR CONCEPTS LTD
  • ROBERTS INVESTMENTS BR LIMITED
  • RP WATTS CONSULTING LIMITED
  • SNC 2025 LIMITED
  • SPC PROPERTY CONSULTANTS LIMITED
  • SUMMERS INMAN MANAGEMENT LIMITED
  • SYMMYTECH LTD
  • THE BOUNSALL PARTNERSHIP LTD
  • THE SALTRAM CLUB LIMITED
  • TROVECROFT PROPERTIES LTD

Winding-Up Petitions

  • ABERCORN EDUCATION LTD
  • CAMDEN BOX FRAME LIMITED
  • DEMIR SOFTTECH LIMITED
  • ENDURMETA LTD
  • FAITH CATERING LIMITED
  • SEA CLOUD 1 LIMITED
  • SEA CLOUD 2 LIMITED
  • SRAM & MRAM CITRUS CAPITAL LIMITED

CPA says

Late payment risk is rising fast. As a CPA member, you can have the tools to navigate these difficult waters with confidence.

For support or to discuss a specific debtor case, call 020 8846 0000.

Not a member yet? 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.

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