Business news 23 October 2025

UK markets steadied on Tuesday, with the FTSE 100 pushing back above 9,500 as investors responded to steady inflation and hopes of a December rate cut. However, business confidence remains fragile amid rising costs and political uncertainty. Small firms are warning of tightening cash flow while debate intensifies over the Chancellor’s plans to reform partnership taxation.

James Salmon, Operations Director.

1️ Reeves warned against tax raid on partnerships

Lawyers, accountants, and doctors have criticised Rachel Reeves’ proposal to remove the National Insurance exemption for partnerships, saying it would push marginal tax rates from 47% to 54%. The Law Society warned it could force many firms to incorporate, while the BMA said it would add strain on NHS doctors in LLPs.
Why it matters: Many SMEs and professional practices operate as LLPs — higher tax burdens could hit cash flow and lead to structural changes.

2️ SME optimism falters amid rising costs

The NFIB’s small business optimism index fell two points to 98.8, with the uncertainty index at a 50-year high. Inflation of 3.8% and stubborn borrowing costs continue to squeeze cash flow.
Why it matters: Credit-reliant firms face greater repayment stress as consumer demand softens.

3️ UK inflation holds steady, sending borrowing costs down

Inflation stayed at 3.8% in September, easing market pressure on the Bank of England. Traders now see a possible rate cut in December, with gilt yields falling accordingly.
Why it matters: Lower borrowing costs could offer relief to SMEs financing growth or managing debt.

4️ Reeves urged to reconsider tax commitments

Senior Labour figures are pressing the Chancellor to rethink her promise not to raise income tax, arguing that a single increase would be less damaging than multiple smaller tax hikes.
Why it matters: Future fiscal tightening could reshape SME tax planning and personal income strategies.

5️ Real living wage rises to £13.45

The Living Wage Foundation confirmed a 6.7% increase, meaning full-time workers will earn £2,418 more per year.
Why it matters: SMEs face higher wage bills but could see improved retention as pay competitiveness rises.

6️ Immigration, not Brexit, blamed for productivity woes

Economist Adam Smith argues that immigration, not Brexit, lies behind the UK’s weak productivity, as high migration reduced incentives to invest in training.
Why it matters: Labour cost and skills policies remain central to SME productivity.

7️ Chancellor faces £115bn spending cuts dilemma

A Policy Exchange report urges Reeves to freeze pensions and raise the retirement age to 70, saving £115bn annually.
Why it matters: Such cuts could reduce consumer demand and public sector contracts, both vital to SMEs.

8️ CBI to name Hogg as next president

Cressida Hogg, chair of BAE Systems, will succeed Rupert Soames at the CBI in early 2026.
Why it matters: A leadership shift at the UK’s main business lobby could influence how SMEs’ interests are represented in future policy talks.

9️ Treasury expected to close tax loophole used by Shein

The Government plans to end the small-package import exemption below £135, which allows overseas sellers to avoid import duties.
Why it matters: A level playing field for UK e-commerce retailers — but higher compliance costs for importers.

Market snapshot

Equities:
The FTSE 100 climbed above 9,500 on Tuesday and opened 0.1% higher Thursday, supported by Rentokil and LSEG. European stocks edged up 0.2% as energy shares rose over 2%. US indices fell overnight amid fresh US-China trade tension — S&P 500 down 0.5%, Nasdaq off 1%, Dow -330 pts.

Commodities:
Oil prices surged nearly 4% after the US sanctioned Russia’s Rosneft and Lukoil, with Brent nearing $65. Gold fell for a third session as traders rotated into the dollar. Copper ticked higher on bullish demand forecasts.

Currencies:
Sterling weakened slightly to $1.3356, its fourth consecutive daily decline. The euro hovered below 1.1600 as the US dollar extended its longest rally since February.

Corporate focus – Tesla:
Tesla posted record quarterly revenue of $28bn, up 12% year-on-year, but profits fell 37% to $1.4bn amid rising R&D costs in robotics and AI and $400m in tariff impacts.

Geopolitics:
The US sanctioned Russia’s major oil producers as part of a new sanctions package. The EU followed by announcing a ban on Russian LNG imports from 2027.

Market Drivers
Fresh US-China trade tensions are supporting the safe-haven US Dollar . Markets are showing subdued volatility as traders await US Consumer Price Index data due Friday .

Key themes include energy markets surging on new Russia sanctions, continued sterling weakness following soft UK inflation data, US-China trade tensions weighing on tech stocks, and dollar strength extending for the longest stretch since February.

Insolvency updates

Appointments of Administrators

  • FAST FINANCE LTD
  • OAKESUK LIMITED

Appointments of Liquidators

  • AAJ SANKEY SET CONSTRUCTION LIMITED
  • AEV PROCESS TECHNOLOGY LIMITED
  • BRANDON SERVICE STATION LIMITED
  • BROMSGROVE LEGAL LTD
  • CHESTERS BAR LTD
  • COG AND WIRE LIMITED
  • CODE LEAF LIMITED
  • DGS HYDRAULICS LIMITED
  • DR C. ALLEN PATHOLOGY LTD.
  • FIRST HYDRO FINANCE PLC
  • HENRY SPACE DEVELOPMENT LIMITED
  • KEN BROGDEN LTD
  • N D SERVICES GROUNDS MAINTENANCE LIMITED
  • NV TECHNOLOGY AND SERVICES LIMITED
  • OHC ADVISORY LTD
  • OLIVER U.TALLETT LIMITED
  • OXSYST IT CONSULTANCY LIMITED
  • PE LONGITUDE HOLDING III LIMITED
  • REDVERS DEVELOPMENT LIMITED
  • RKVST LIMITED
  • ROGER HELM MEDICOLEGAL LIMITED
  • SEBCO HOMES LIMITED
  • SPACE.FLO LIMITED
  • SPOTLIGHT HUMAN RESOURCES LIMITED
  • SUNNYFIELD VEG LIMITED

Petitions to Wind Up (Companies)

  • ACADEMY OF CLINICAL RESEARCH LTD
  • DR SIMI LIMITED
  • JORJA HEALTHCARE LTD

CPA insight

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