Business news 22 December 2025
UK businesses are ending the year under sustained pressure as economic growth stalls, consumer finances weaken, and insolvency levels remain elevated. GDP growth slowed to just 0.1% in Q3, household savings fell to their lowest level in over a year, and unemployment continues to rise. Retailers and hospitality firms are bracing for a weak Christmas, while manufacturers and exporters face higher costs and regulatory friction.
Against this backdrop, insolvency activity remains broad-based rather than sector-specific, affecting property, professional services, technology, healthcare, construction and hospitality businesses. For SMEs selling on credit, the environment remains high-risk, with late payment and bad debt threats likely to intensify into January.
James Salmon, Operations Director.
UK business confidence weakens as costs rise and growth stalls
UK businesses head towards the end of the year facing a difficult mix of slowing growth, rising costs, weaker consumer demand and increasing insolvency risk. New data from the ONS, CBI and industry bodies paints a picture of an economy still moving forward — but only just — with many SMEs feeling the strain most acutely.
For businesses that sell goods or services on credit, the warning signs are becoming harder to ignore.
SME and economy-focused stories
UK economic growth slows sharply
UK GDP grew by just 0.1% in the third quarter, down from 0.2% in Q2, confirming that momentum is fading. Services and construction provided modest support, but production output fell again.
Why it matters: Slower growth usually means customers delay spending and hold onto cash, increasing the risk of late payment.
Consumer savings fall as taxes bite
Household savings dropped to 9.5%, the lowest level in more than a year, after a £6bn rise in taxes squeezed disposable incomes.
Why it matters: With less financial buffer, consumers are more likely to cut spending or fall behind on payments, affecting businesses further up the supply chain.
High street faces a bleak Christmas
Retailers are bracing for a weak festive period, with 74,000 retail jobs lost over the past year and shoppers planning to spend less in shops, bars and restaurants.
Why it matters: A poor Christmas often leads to January cashflow crises, increasing the risk of overdue invoices and insolvencies among retail and hospitality customers.
Job market shows signs of deeper downturn
Redundancies have risen to 156,000, unemployment stands at 5.1%, and youth unemployment has reached 16%. Vacancies continue to fall.
Why it matters: Rising unemployment weakens demand and increases the likelihood of delayed or missed payments, especially in discretionary sectors.
Private sector downturn deepens, warns CBI
The CBI says private-sector output is set to fall into early 2026, with weak demand and rising wage costs squeezing margins despite pay growth outpacing inflation.
Why it matters: Businesses under margin pressure often stretch supplier terms, increasing credit risk for SMEs selling on account.
Industry-specific pressures
Hospitality hit by higher costs
Pubs and restaurants face higher wage bills and business rates, with some operators warning costs are becoming unsustainable.
Why it matters: Hospitality businesses typically prioritise payroll and rent over suppliers, increasing late payment risk.
Manufacturers face new export hurdles
UK exporters face significant new paperwork under EU carbon border rules from January, with SMEs hit hardest.
Why it matters: Compliance delays can slow invoicing and extend payment cycles for exporters selling on credit.
Housebuilding continues to undershoot targets
Only around 208,000 homes are expected to be built this year, well below government targets, with planning permissions at their lowest since 2013.
Why it matters: Lower build volumes ripple through the supply chain, increasing payment delays for construction suppliers.
Market snapshot
- The FTSE 100 drifted lower, underperforming other major markets.
- Gold and other metals hit record highs, driven by geopolitical tensions and expectations of future rate cuts.
- Oil prices remain weak, pressuring energy firms.
- The pound strengthened slightly against the dollar but eased against the euro.
- Currency markets are unusually quiet, reflecting low confidence and thin holiday trading.
Insolvency activity highlights
Insolvency volumes remain elevated, with a large number of liquidations, administrations and winding-up petitions recorded in recent days across:
- Property and real estate
- Professional and consultancy services
- Technology and engineering
- Healthcare and legal services
- Hospitality and retail
Why it matters:
The breadth of insolvencies shows stress is widespread, not sector-specific. For SMEs, this reinforces the need to monitor customers closely, reduce exposure early and act quickly on overdue accounts.
Appointments of Administrators
- INNOVATION CONTROL (PROPERTY) LIMITED
- LIFECYCLE OILS LTD
- LEASECO 23 LIMITED
- MANUS NEURODYNAMICA LTD
Appointments of Liquidators
- A DE BEER CONTRACTS LIMITED
- AB INBEV HOLDINGS SH LIMITED
- ACUITY GROWTH CONSULTANCY LTD
- ALIZENT UK LIMITED
- ALSAR LIMITED
- AMG DEVELOPMENTS (MARFORD) LTD
- ANAEKO LIMITED
- APEX CONSERVATORIES UK LIMITED
- ARG TALENT LTD
- BAD WOLF (IHS2) LTD
- BARFORD IMPORTS LIMITED
- BLUE FIN INVESTOR (UK) LLP
- BRIGGENS ESTATE 1 LIMITED
- C CONSULT LIMITED
- CARLTON HOUSE EXMOUTH LIMITED
- CNH INDUSTRIAL OLDCO CAPITAL LIMITED
- CROFT MEDICOLEGAL REPORTING LIMITED
- CROWLINK HOLDINGS LIMITED
- EDWARD CLARK ESTATES LIMITED
- ENDEAVOUR CAPITAL MANAGEMENT LIMITED
- ESSENTIAL HEALTH PRODUCTS LIMITED
- EXPLEO TECHNOLOGY UK LIMITED
- FB BRINJAL LIMITED
- FILO HEART BEAT INTERNATIONAL LTD
- GFK LTD
- HAMINADOS LTD
- HAYNES PHYSIOTHERAPY LIMITED
- HHW CONSULTING LTD
- ITOMICA LIMITED
- JOHN FIELD LIMITED
- JWK LEGAL GROUP LIMITED
- KAIZEN SOLUTIONS ENTERPRISE LTD
- KCA DEUTAG INTERNATIONAL 2 LIMITED
- LAPAROSCOPIC SURGERY LONDON LIMITED
- LONGHOST LIMITED
- LOTHAY LIMITED
- LUXURY BRITISH DESIGN FINANCE LIMITED
- MAAF LTD
- MB VACANT PROPERTY SOLUTIONS LIMITED
- MOVE 2 LETTINGS AND SALES LIMITED
- MRL PROJECT MANAGEMENT LIMITED
- N FAIRBANK BARRISTER LTD
- NL CONSULTANTS LIMITED
- P7S1 BROADCASTING (UK) LTD
- PMCD VALIDATION CONSULTANCY LIMITED
- PPNL SPV B79 LIMITED
- PPNL SPV B79 – 1 LIMITED
- QUAY CUTTING LTD
- REYNELLA ASSOCIATES LIMITED
- THE ASSET MANAGEMENT EXCHANGE (IP CO.) LIMITED
- WESTGATE CONSULTANCY SERVICES LIMITED
- WESSAN ESTATES LIMITED
Petitions to Wind Up (Companies)
- DONER BOX EDGWARE ROAD LTD
- DURBAR LTD
- MKC GLASGOW LTD
- M SQUARED TECHNOLOGIES GROUP LIMITED
- SEAN JOHNSTON JOINERS LIMITED
- VERSILIA SOLUTIONS LIMITED
Winding-Up Order
CPA credit insight
As the year closes, the message for businesses selling on credit is clear:
- Growth is weak
- Consumers have less financial resilience
- Businesses are prioritising survival over prompt payment
Strong credit control, regular risk reviews and early intervention on late payments are no longer optional — they are essential.
Join today
If you are worried about late payments, customer risk or growing exposure going into the new year, CPA can help with credit checking, monitoring and overdue account recovery — before problems turn into bad debt.
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, Economic