Business news 24 December 2025

UK businesses head into Christmas with mixed signals. Insolvency numbers have eased slightly, global markets remain strong, and interest rates have begun to edge lower. However, rising household costs, elevated commodity prices and persistent pressure on margins mean cashflow risk has not disappeared — particularly for SMEs that trade on credit and face a testing New Year period.

James Salmon, Operations Director.

Key Stories for SMEs and Credit Managers

Corporate insolvencies fall in November, but pressure remains

Corporate insolvencies fell by 8% in November to 1,866 cases, according to new figures, offering a modest improvement compared with both last year and 2023. Lower inflation and the recent interest rate cut have helped ease some pressure on businesses in the run-up to Christmas.

However, insolvency levels remain well above those seen five years ago, and unemployment has risen to a near six-year high as firms delay hiring and investment. Insolvency professionals warn that hospitality businesses, in particular, face a difficult January as post-Christmas trading slows while rent, VAT and payroll bills fall due.

Why it matters: A seasonal dip in failures does not remove early-2026 payment risk, especially for suppliers exposed to hospitality and consumer-facing sectors.

HMRC cuts late payment interest, but penalties still bite

HMRC has reduced the late payment interest rate on self-assessment tax bills from 8% to 7.75%, reflecting the current base rate plus 4%. While the cut offers slight relief, the wider penalty regime remains unchanged and costly for those who miss deadlines.

Taxpayers still face an immediate £100 fine for missing 31 January, daily penalties after three months, and further percentage-based penalties at 30 days, six months and 12 months overdue. HMRC says the system is designed to encourage prompt payment and fairness.

Why it matters: Tax arrears often signal underlying cashflow stress that can quickly spill over into unpaid supplier invoices.

Households face higher energy bills over the long term

Ofgem has approved a £90bn investment programme for electricity grids and gas pipelines, with £28bn to be spent over the next five years. The regulator says the upgrades are essential to improve capacity and reduce long-term costs linked to renewable energy constraints.

Despite this, households are expected to pay around £116 more per year by 2030 as infrastructure costs are passed through to bills. While the long-term case is lower system costs, the near-term impact is higher pressure on household budgets.

Why it matters: Higher household bills reduce disposable income, increasing late payment risk for SMEs dependent on consumer spending.

Farmers gain clarity after inheritance tax rethink

The Government has raised the inheritance tax relief threshold for agricultural assets from £1m to £2.5m following strong opposition from the farming community. The original proposal had raised fears that family farms would face a 20% tax charge from April 2026.

Industry groups say the change restores confidence and should support long-term investment decisions, although concerns remain for larger estates and diversified rural businesses above the new cap.

Why it matters: Improved tax certainty strengthens balance sheets and payment reliability across farming and rural supply chains.

HMRC unlikely to target casual online sellers

Tax advisers have confirmed that HMRC is not targeting people selling unwanted gifts on platforms such as eBay or Vinted, focusing instead on those deliberately trading in the hidden economy. Most personal sales remain outside income tax and capital gains tax thresholds.

The clarification comes amid wider scrutiny of online marketplaces and digital income reporting.

Why it matters: Clear guidance helps sole traders and microbusinesses avoid unexpected tax bills that could disrupt cashflow.

Wealthy individuals continue to leave the UK

Several high-profile entrepreneurs and investors have relocated abroad amid unease over higher taxes under the Labour government. Recent departures include business founders and private equity figures establishing residency in Switzerland and Monaco.

The trend has raised concerns about reduced domestic investment and the long-term attractiveness of the UK as a base for wealth creation.

Why it matters: Less domestic capital can tighten funding conditions for SMEs, increasing reliance on trade credit and supplier finance.

Bet365 founder paid £287m as profits remain strong

Bet365 founder Denise Coates received around £287m in salary and dividends during 2025, according to company filings. Over the past decade, her total pay has exceeded £2.3bn, underlining the group’s sustained profitability.

The figures highlight the contrast between highly cash-generative private firms and the broader SME sector still grappling with cost pressures.

Why it matters: Strong headline profits in some firms should not obscure uneven payment risk across supply chains.

Market Summary

Markets were subdued but steady on Christmas Eve, with low trading volumes ahead of holiday closures. Global equities remain near record levels after data showed the US economy growing at its fastest pace in two years, supporting expectations of resilient corporate earnings into 2026.

In the UK, the FTSE 100 edged lower to around 9,877, held back by a stronger pound, which tends to weigh on internationally focused companies. European markets were largely flat, while US indices paused after reaching all-time highs earlier in the week.

Commodity markets remain a key concern for businesses. Gold surged above $4,500 per ounce for the first time, with silver and platinum also hitting record levels. The rally reflects geopolitical tensions, expectations of US rate cuts and a weakening dollar. Elevated metals prices often signal broader economic uncertainty rather than purely industrial demand.

Copper prices have climbed above $12,000 a tonne for the first time, extending a strong bull run driven by supply concerns. Mine outages have tightened global availability, while the threat of new US import tariffs has added further upward pressure this year.

Oil prices were comparatively calm, with Brent crude trading around $62 a barrel and WTI near $58, helping to limit fuel-driven inflation in the near term.

In currency markets, sterling strengthened to roughly $1.35 against the dollar and held steady near €1.15 against the euro. The dollar continued to weaken, on track for its worst annual performance in more than two decades as investors price in diverging interest rate paths.

What this means for SMEs: Strong markets support confidence, but a firm pound, high commodity prices and thin holiday liquidity can still translate into uneven cashflow and slower customer payments.

Insolvency Notices – Latest

Appointments of Administrators

COUNTESSWELLS DEVELOPMENT LIMITED
JAMBO SRC LIMITED
PODZE LOGISTICS LTD
PURE HAUS LTD
PW GREENHALGH FINISHING LIMITED
VISAGE TEXTILES LIMITED
WAAGNER BIRO STEEL AND GLASS LIMITED

Appointments of Liquidators

2 & 3 TRITON LIMITED
A BEER CONSULTING LTD
A.C. HOPKINS (TAUNTON) LIMITED
ABBEY NATIONAL BUSINESS OFFICE EQUIPMENT LEASING LIMITED
ABBEY NATIONAL PLP (UK) LIMITED
ALLIANCE & LEICESTER INVESTMENTS (NO.2) LIMITED
AQUIS HAIRCARE UK LTD
AURELIA SERVICES LIMITED
B.I. CROSS SOLUTIONS LTD.
BCJ COURIERS LIMITED
BERE SERVICES LTD
BIRKETT ELECTRIC LIMITED
CDARMS LTD
CI V DRAGON HOLDCO LTD
COMMODITY FLOW LIMITED
DE ROUGEMONT MANOR LTD
DESEO LOCKING SYSTEMS LIMITED
DV4 BECKENHAM TRUSTEE NO. 1 UK LIMITED
DV4 BECKENHAM TRUSTEE NO. 2 UK LIMITED
DV4 ESTATES UK LIMITED
DV4 TRUSTEE NO.1 UK LIMITED
DV4 TRUSTEE NO.2 UK LIMITED
ENDORSE MEDIA LTD
EPIK CONSULTING LTD
GAC CONSULTING LTD
GODSELL ASTLEY & PEARCE (HOLDINGS) LIMITED
HBOS SOCIAL HOUSING COVERED BONDS LLP
HEALTH SOLUTIONS TEAM LIMITED
INTEGRAL SCAFFOLDING LIMITED
IRVINE GROUP LIMITED
KERAI CONSULTING LIMITED
KURODA JENA TEC HOLDINGS LTD.
LA MARINA LIMITED
LIEBMANN LTD
LIFETIME VALUE CONSULTANCY SERVICES LIMITED
LM WIND POWER UK LIMITED
LOWELL RECEIVABLES FINANCING 1 LIMITED
LUCINDA BARBER LTD
M L MCCROHON ASSOCIATES LTD
MANNVIT UK LTD
MAX SPENCER LIMITED
MCA UK LIMITED
METRIXQUANTS LIMITED
MIMMA’S LIMITED
MNC HOLDINGS LIMITED
MSC ACTUARIAL LIMITED
N D L ELECTRICAL SERVICES LIMITED
NETPAY FINANCE LIMITED
NETPAY MERCHANT SERVICES LIMITED
NETPAY SOLUTIONS GROUP LIMITED
NINE-W RACE ENGINEERING LTD
PB ROOFING (NW) LTD
PHI HOLDINGS LTD
PIBBI LIMITED
PIXEL BUMP DESIGN LIMITED
QQ CONSULTANCY LIMITED
RCL AIR CONDITIONING LIMITED
SALAMANDER ENERGY (BUALUANG HOLDINGS) LIMITED
SANTANDER FINANCIAL EXCHANGES LIMITED
SANTANDER GUARANTEE COMPANY
SCHOOL OF CODE LIMITED
SEATRONICS LIMITED
SOF-10 STUDENT OPCO LIMITED
SOH INFORMATION SECURITY LTD
SOMA HEALTH LIMITED
ST ANDREW’S GROUP LIMITED
STING FUNDING LIMITED
T.B. GRAHAM LIMITED
TECHNOLOGI WORLDWIDE LIMITED
THE SPROUT GROUP LIMITED
TRIMTWELVE LIMITED
TRUST NURSE SERVICES LTD
VSM (WEST RUILSIP 4) LIMITED
WAYNFLETE ADVISORY LIMITED
WILLIS OVERSEAS INVESTMENTS LIMITED
WYNNE MARKETING LTD
ZEPPELIN MIDCO 1 LIMITED

Petitions to Wind Up

ADH PORSCHE LTD
CABBI SALES LTD
CLOCKTOWER LEISURE LTD
ELECTRIGASFIX LTD
FIRTHPORT MANAGEMENT LIMITED
GRANITE SUPPLIES & TRANSPORT LTD
H & V DESIGN SOLUTIONS LTD
IMAGE CARS LIMITED
JMC CRANES & RIGGING LTD
JRMCC LTD
THE RECOVERY EXPERTS LTD

CPA membership

The period between Christmas and the end of January is when payment problems often surface. If you’re unsure about a customer’s financial position, a CPA CreditCare report or monitoring check now can prevent costly surprises later.

Not a member yet, CPA are closed until 5th January, but in the new year 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