Business news 24 February 2026

After a long weekend break, CPA news summary is back and today’s picture is clear: smaller firms are absorbing the sharp end of a “two-speed” UK economy just as cost pressures build into April. The labour market is weakening (vacancies falling, unemployment risks rising), trade uncertainty is growing (US tariffs and possible EU procurement barriers), and higher taxes plus tighter enforcement risk draining liquidity from the real economy. For any business that sells on credit, this is a day to tighten terms, shorten follow-up cycles, and stress-test your exposure to customers whose cash buffers are thinning.

James Salmon, Operations Director.

SME-focused stories

Small businesses brace for April cost crunch, with £112bn owed in unpaid invoices

The Federation of Small Businesses warned of an “unprecedented cost crunch” as April approaches, with over a third of small firms considering cutting output or shutting down. Rising energy costs, business rates, and employment expenses are being flagged as the immediate pinch points. Separately, a House of Commons Business and Trade Committee report said SMEs are owed £112bn in unpaid invoices, underlining how late payment compounds the cost shock.
Why it matters: When costs jump and late payment persists, SMEs often see slower customer payments and higher disputes—so tighter credit control becomes the difference between trading through and writing off.

Smaller firms are markedly more pessimistic than larger employers, with overdraft use rising

Barclays described a “two-speed” economy: only 12% of businesses with fewer than 10 staff think conditions support long-term growth, versus around two-thirds of larger employers. Small firms are leaning more on short-term borrowing, with overdraft usage up 2.5% year-on-year. Even where confidence remains, the report suggests caution is driving decisions on hiring, investment and working capital.
Why it matters: Overdraft reliance is a red flag for cashflow strain—customers under pressure are more likely to stretch terms, making fast, consistent chasing essential.

Wage growth dips for SMEs as unemployment rises

Employment Hero reported SME wage growth fell 1% in January (the first decline in a year), while year-on-year wage growth remains 5.6%. The same update pointed to unemployment rising to 5.2%, the highest in five years, with SMEs responding to rising costs and taxes by tightening finances. This aligns with broader signals of a cooling jobs market and more cautious hiring.
Why it matters: A weakening jobs backdrop can slow consumer demand and increase payment slippage—raising both sales risk and debtor risk for SMEs trading on credit.

High-growth business owners leaving the UK

Research cited by Rathbones suggests close to 6,000 owners of high-growth businesses left the UK over the last two years, with the UAE, Spain and the US cited as top destinations; 3,182 came to the UK over the same period. Regardless of the drivers, it’s a sentiment signal about the perceived attractiveness of the UK for scaling businesses.
Why it matters: Shifts in ownership and relocation can change who controls payment decisions, where cash sits, and how disputes are handled—raising the need for up-to-date checks on counterparties.

Economic stories

Unemployment forecast to rise to 5.5% (and potentially 6%)

JPMorgan forecasts UK unemployment could rise to 5.5% within months and warns it could reach 6% by year-end without a recovery. The bank links the weakness partly to the impact of a £25bn increase in National Insurance contributions, and suggests rising joblessness could increase pressure for Bank of England rate cuts.
Why it matters: Rising unemployment tends to weaken demand and worsen payment behaviour—SMEs should expect longer debtor days and increase monitoring on “previously reliable” accounts.

Job vacancies fall to the lowest level since January 2021; youth unemployment hits 16.1%

Adzuna data shows job adverts down 16% year-on-year to January, with total advertised roles at 694,940 and falling below 700,000 for the first time since January 2021. Graduate roles reportedly dropped below 10,000, while youth unemployment rose to 16.1% (highest since 2014). Advertised salaries were still up 6% year-on-year, suggesting firms will pay for scarce skills even as hiring slows.
Why it matters: A softer jobs market can translate into weaker household spending and more missed payments—especially for SMEs exposed to consumer-facing sectors.

Low-productivity firms are a growing drag on the economy

Boston Consulting Group (BCG) said firms in the bottom 25% of productivity nearly doubled from 444,500 (1997) to 873,000 (2023), and warned the UK economy could be £557bn larger if pre-financial-crisis productivity trends had continued. The report highlights a “diffusion problem” where top firms improve strongly, but a long tail lags and survives longer due to weak “business dynamism”.
Why it matters: A larger tail of low-productivity firms typically means tighter margins and weaker cash buffers—so suppliers selling on credit face higher late-payment and insolvency risk.

Young people’s disposable income falls while the wealthiest gain

A CEBR/Asda report said under-30s’ weekly disposable income fell to £175 (from £195 in March 2021), with nearly 70% going on essentials. The report also noted the wealthiest saw disposable income rise to £925. With youth unemployment already high, this points to a demand squeeze among younger consumers.
Why it matters: When consumers have less headroom, payment stress shows up first in missed instalments and delayed settlement—raising collections workload for SMEs and increasing bad-debt risk.

Tax & Government

Treasury records a £109.7bn January tax haul (fiscal drag in focus)

The Treasury reported record January receipts of £109.7bn, up £13.3bn year-on-year, driven by income tax rising £12.3bn to £70.2bn, and NIC receipts up £2.9bn to £17.7bn. Inheritance tax was also reported at a record £7.1bn, with commentary pointing to frozen thresholds and changes drawing more estates into the net, alongside tougher enforcement.
Why it matters: Fiscal drag and enforcement can pull liquidity out of households and owner-managed businesses—often increasing pressure to delay supplier payments and tighten procurement.

Ultra high earners rise, including more young million-pound earners

Tax data analysis suggested 31,000 taxpayers earned £1m+ in 2024/25 (up from 29,600), with combined income of £89.1bn and a record 1,000 millionaires aged 30 or under. Commentary noted many young high earners are in volatile sectors such as sport and social media, where income can be uneven.
Why it matters: Volatile income streams can create sudden payment risk for suppliers of premium services—so credit decisions should be based on verified financial resilience, not perceived status.

Trade & supply chain

UK “hardest hit” by Trump’s new 15% baseline tariffs

Reports said the UK faces the largest increase from new US tariffs, with an effective rise of 2.1 percentage points under a 15% global baseline. The British Chambers of Commerce estimated this could add £2bn–£3bn in costs for UK exports, affecting sectors including food, drink and textiles. Officials indicated high-level discussions are ongoing while global trade rules remain unsettled.
Why it matters: Tariff-driven cost inflation can trigger delayed payments and disputes (pricing, delivery terms, returns)—so exporters and their suppliers should tighten documentation and reduce credit exposure where margins are thin.

UK warns EU over “Buy European” preferences and supply-chain disruption

The UK minister for EU relations, Nick Thomas-Symonds, warned that strict preferences for European-made products could disrupt deeply integrated UK-EU supply chains and raise costs. The EU’s “Buy European” direction is framed as a response to geopolitical uncertainty, but the UK is pushing for cooperation to avoid unnecessary barriers.
Why it matters: Procurement barriers can squeeze volumes and cashflow for UK suppliers—raising the chance customers stretch terms or renegotiate payment conditions mid-contract.

Industry-specific stories

Energy costs threaten manufacturing investment and jobs

A CBI and Energy UK report said 40% of firms have reduced investment due to high energy costs, which remain around 70% above pre-Ukraine invasion levels. Chemicals were cited as an early warning area with closures, and the report calls for a comprehensive review of energy regulation to unlock investment and growth.
Why it matters: Energy-heavy sectors may ration cash and delay supplier payments to fund bills—so manufacturers’ supply chains should monitor exposure and move quickly on overdue balances.

Innovation & technology

UK well set for long-term AI benefits, but job displacement fears persist

Capital Economics’ Roger Bootle argued AI will cause job displacement but won’t make humans redundant, pointing to the enduring value of judgement and “being human.” An AI Economic Impact Index reportedly ranks the UK third for long-term benefit potential due to strong digital infrastructure, STEM capability, relatively flexible labour markets and a comparatively liberal regulatory approach.
Why it matters: Transition periods create uneven winners and losers—SMEs should watch for customers using “AI change” as a reason to delay payments, while also adopting automation to reduce internal credit-control cost.

AI threatens professional services jobs in the near term

Warnings from an AI consultant and the Resolution Foundation highlighted potential net job losses in professional services (finance, legal, accounting), particularly where tasks are routine. The UK may be more exposed than economies weighted to tourism or mining, with calls for political leadership to manage the transition.
Why it matters: If white-collar employment weakens, service-sector payment patterns can deteriorate—SMEs should tighten onboarding checks and avoid letting aged debt build.

Market Snapshot

Equity markets

• FTSE 100: 10,656.28 (Monday close)
• STOXX 600: 627.15; DAX: 24,963.99; CAC 40: 8,497.52
  Europe ended mixed as tariff uncertainty and AI-related risk repricing stayed in focus.

In the US, equities fell sharply on tariff volatility and concerns about AI disruption:

• Dow: 48,804.06 (-1.7%)
• S&P 500: 6,837.75 (-1.0%)
• Nasdaq Composite: 22,627.27 (-1.1%)
  IBM was singled out as a notable laggard, dropping more than 11% on the session.

Overnight in Asia, moves were mixed:

• Nikkei 225: 57,321.09 (+0.9%) helped by a softer yen and tech strength
• Hang Seng: 26,590.32 (-1.8%) amid ongoing AI jitters
• Shanghai Composite: 4,117.41 (+0.9%) after the break, led by energy names
  Semiconductor optimism supported record highs in South Korea and Taiwan.

Key market drivers

• Tariff volatility: the US baseline tariff reportedly lifted to 15%, keeping risk appetite fragile.
• AI repricing: markets continue to pressure software and “AI-loser” narratives, while chipmakers hold up better.
• Geopolitical risk: attention remains on US-Iran tensions ahead of planned talks.

Currencies

• GBP/USD: £1 = $1.35 (GBP strengthened)
• GBP/EUR: £1 = €1.14
  Sterling’s strength helps importers on dollar-priced inputs but can squeeze exporters’ competitiveness—especially when tariffs are rising.

Commodities

• Brent crude: $71.33 (near seven-month highs, slightly lower on the day)
• WTI crude: $66.27
• Gold: ~$5,172.88 (pulled back after a sharp safe-haven rally)
  Oil remains a cost pressure for energy-intensive sectors, while gold’s move highlights ongoing demand for hedges against volatility.

Morning Wrap

Global markets remain on edge as multiple sources of uncertainty converge. Yesterday’s European session saw modest moves as investors digested the Supreme Court’s tariff ruling, while US markets sold off sharply overnight on the combination of Trump’s escalated 15% global tariff and renewed AI disruption fears that hammered software stocks.

Asian markets overnight showed resilience in chipmaker-heavy indices, with South Korea and Taiwan hitting record highs on semiconductor optimism, while broader markets struggled with the AI narrative. Chinese markets returned from holiday with modest gains, supported by tariff relief hopes and homegrown technology optimism.

The key themes driving markets are tariff policy volatility, with Trump’s 15% global levy now in effect; AI disruption anxiety, particularly impacting software and services companies; and geopolitical risk from US-Iran tensions and China-Japan trade restrictions. Safe-haven flows have boosted gold, the yen, and government bonds, while risk appetite remains fragile heading into President Trump’s State of the Union address later today.

What CPA membership could help with today

When costs are rising, trade rules are shifting, and customers are leaning harder on supplier credit, the winners are usually the businesses that tighten process early.

CPA can help you:

• Run faster, consistent follow-up so invoices don’t age into disputes.
• Use CreditCare reports and monitoring to spot weakening counterparties before limits are breached.
• Escalate overdue accounts in a way that protects relationships, while driving payment to you directly.
• Reduce internal admin drag so your team stays focused on sales, service and cashflow.

If you want to review your highest-risk customers or tighten your collections workflow for April, 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

Insolvency notices

Appointments of Administrators

• ANDRA JEWELS LIMITED
• ARTEMIS INTERIOR SERVICES LTD.
• DCC CONCEPTS LIMITED
• EUROVIEW ARCHITECTURAL GLASS LTD
• FK CONSTRUCTION LIMITED
• FK FACADES LIMITED
• FK GROUP LIMITED
• GB LABS LIMITED
• HAWKMOOR GROUP INTERNATIONAL LIMITED
• HOME COUNTIES POOLS HOLDINGS LTD
• IMPERIAL CABINET NE LIMITED
• JERRAM FALKUS CONSTRUCTION LIMITED
• JRM ADVANCED ENGINEERING LIMITED
• JULES B LIMITED
• MAJESTIC WINDOWS HOLDINGS LTD
• NEWCELLS BIOTECH LIMITED
• SPON GLOBAL MIDCO LIMITED
• STARGLADE SUFFOLK LIMITED
• STEPHEN FRIEDMAN FINE ART LIMITED
• STRUCTURAL PLANT SERVICES LIMITED
• TARN (MORNINGS MILL) LIMITED
• W H DARBY LIMITED
• WELL WOMEN CENTRE
• ZETTA GENOMICS LIMITED

Appointments of Liquidators

• 12:51 CONSULTING LTD
• 2B-CONSULTING LIMITED
• A WHITNEY CONSULTING LTD
• A.K.H DEVELOPMENTS LTD
• ACCPOL LIMITED
• ACS (UK) CONSULTING LIMITED
• AFFILIATE WIZARD LIMITED
• AFFIRMED OUTCOMES LIMITED
• AJ NETWORK CONSULTING LIMITED
• AN OPEN UNDERSTANDING LTD
• ANSELL PROPERTIES LIMITED
• APSLEY CONTROLS LIMITED
• ARWEL DOUGLAS LEADERSHIP LIMITED
• AVABIT LTD
• AVIGO LIMITED
• AVIVA INVESTORS PENSIONS LIMITED
• B A PERRY LEASING LIMITED
• B2B CONSULTANCY AND MARKETING LIMITED
• BEETECH POWER SUPPORT LTD
• BELMONT MARKETING SERVICES LIMITED
• BLUESPEAR SOLUTIONS LTD
• BREMSKERL (UK) LIMITED
• BROOMVALE DEVELOPMENTS LIMITED
• BSL SCAFFOLDING ERECTORS LIMITED
• CAIBORG SERVICES LIMITED
• CAPITAL TRADERS LIMITED
• CARA HOTEL MARKETING LIMITED
• CARL GROSE SOLUTIONS LIMITED
• CATALYST BUSINESS DEVELOPMENT LIMITED
• CEN FABRICATIONS LTD
• CHARLES BUTCHER AND COMPANY LIMITED
• CLEMERSON AND SONS LIMITED
• COMMERCIAL HR LTD
• DAVID LEACH ECOLOGY LIMITED
• DAVID MOSS COMMERCIAL MANAGEMENT LIMITED
• D E FENTON LIMITED
• DENVER TECHNOLOGY SERVICES LTD
• DERBY UROLOGY & CONTINENCE SERVICES LIMITED
• DEVOPS TRANSFORMATIONS LIMITED
• DI ROLLO ICE CREAM (UK) LIMITED
• DIRECT FERRIES (HOLDINGS) LTD
• DMGB LIMITED
• DURRANT DESIGN CONSULTANTS LIMITED
• EASTERFIELD INVESTMENTS LTD
• ELOHIM HEALTHCARE SERVICES LIMITED
• EUROPEAN BROADCASTER EXCHANGE (EBX) LIMITED
• FIN RADIOLOGY REPORTING LIMITED
• FOCUS FIREPLACES (HOLDINGS) LIMITED
• GEORGE WHITMORE LTD
• GRASMERE MOTORS LIMITED
• GS ARCHITECTURAL SERVICES LTD
• H2GO POWER LTD
• HAYDOCK FINANCE NO.2 LIMITED
• HEATH STUDIOS LIMITED
• HFSAPIENT ADVISORY LIMITED
• HOCAPS LIMITED
• HORIZON SOFTWARE LIMITED
• HUNTER HEALEY HOLDINGS LTD
• HYPEREPM CONSULTING LIMITED
• I&M GROUP LIMITED
• IKIES STONE LIMITED
• ILKLEY SOLUTIONS LIMITED
• INTEGRIA SOLUTIONS LIMITED
• JENBUL LIMITED
• JUNIOR DOCTORS SOC LIMITED
• KARTECH CONSULTANCY LTD
• KENT & MEDWAY SURGICAL LIMITED
• KEEDWELL CONSTRUCTION LIMITED
• KITSCAR CONSULTING LIMITED
• K.T. DIXON LIMITED
• LABEL TRADERS LIMITED
• LEE AND TURNER LIMITED
• LOTHBURY PROPERTY TRUST COMPANY LIMITED
• LYNNWOOD INTERPRETATION LIMITED
• MASLOW 1 LIMITED
• METALEX METALWORKS LTD
• METACLOUD CONSULTANCY LTD
• METRODENT LIMITED
• MCRW GATWICK (UK) LLP
• MCRW SERVICE LLP
• NOCTE STUDIO LIMITED
• ON THE EBB LIMITED
• ORPWOOD LIMITED
• OWNWAYS LIMITED
• P. & F. MCDONNELL, LIMITED
• PEAR TREE POTATOES LIMITED
• PICTLAND PROPERTIES LIMITED
• PM TECHNOLOGY LTD
• RANGERS FC POOLS LTD
• REDTUSK LIMITED
• RESILINET LIMITED
• RESOLUTION ANALYTICAL CONSULTANCY LIMITED
• RLMP LIMITED
• ROSEMOUNT LEGAL SERVICES LTD
• SAFETY & ASSESSMENT SERVICES LIMITED
• SCOPE INSTALLATIONS LIMITED
• SCOTT INVESTMENT PARTNERS LLP
• SEDIMENTOLOGY AND RESERVOIR DEVELOPMENT LIMITED
• SIRIMANI DIGITAL SOLUTIONS LIMITED
• SKY RIVER RECRUITMENT LIMITED
• SLG CONSULTING LIMITED
• SOFTWARE FOCUS LIMITED
• SOUTH LEEDS INVESTMENTS LIMITED
• SOURCING SUSTAINABLY LIMITED
• SUMMIT PROPERTY CLAIMS SERVICES LTD
• SWISS COMPUTING LIMITED
• THE BLINDS COMPANY LIMITED
• THE COMPANY 345 LIMITED
• TIM HIGGS-BAYLISS LTD
• TRANSFORM WITH PACE LIMITED
• TSC & D LIMITED
• T S P ALUMINIUM LIMITED
• TUNISSY LTD
• TYRONE DAVIES LIMITED
• URBAN NATURE LIMITED
• VAWDA ASSOCIATES LIMITED
• VICENTE IMAGING LTD
• VICTENTE IMAGING LTD (possible duplicate spelling—please ignore if this is the same as VICENTE IMAGING LTD)
• WEBN GROUP (UK) LIMITED
• WHAT GOOD LEADERSHIP LOOKS LIKE LTD
• WHITTLE FFC
• WINDERMORE LIMITED
• WOODSTOCK (SOUTH WEST) LIMITED
• ZUKE COMMUNICATIONS LTD

Petitions to wind up (Companies)

• AGM CONSTRUCTION ABERDEEN LTD
• AIM NE LTD
• BALCOV LIMITED
• BEACON SERVICES+ LIMITED
• BEST GLOBAL SECURITY SERVICES LIMITED
• BIRCH HEALTHCARE SERVICES LTD
• BLINDFOLD LIMITED
• BLUEDAY LIMITED
• BOSS LIFE LTD
• BRENTWOOD CONTRACTING GROUP LTD
• BRITANNIC GROUP LIMITED
• CARE COMM 2011 LIMITED
• C&L TRANSPORT SERVICES LTD
• CARSICKO LIMITED
• DANESFIELD HOTELS AND RESORTS LIMITED
• DEIGHTON CONSULTANTS LIMITED
• DRR CONSTRUCTION LIMITED
• EARLWOOD FERNDALE LTD
• EVANCAST (KENT) LIMITED
• FAIRFAX RESURFACING LIMITED
• FLEX BUSINESS GROUP LTD
• FLYPOP LTD
• FORE STREET CONSORTIUM LTD
• FRESH AGRO LIMITED
• GEEK RETREAT UK LTD
• GLASGOW FOOD MARKET LTD
• GREENWICH CENTRAL COLLEGE LTD
• GROUP ENTERTAINER LTD
• HAMER ENTERPRISES (PTY) LIMITED
• HOLLERN LIMITED
• HOLISTIC HERB LIMITED
• IMORPH LIMITED
• INCREDIBLE BAKERY COMPANY LIMITED
• INNOVARO TECHNOLOGY LTD
• INVERNESS IV35 LIMITED
• IUNCTIO LTD
• ITALIAVERDE LIMITED
• J A CONROY LTD
• JORDAN XAVIER LTD
• K&H GROUP LTD
• KINGSWAY SLG LIMITED
• LAUNCH FOODS C.I.C.
• LAUNDRY SOLUTIONS LTD
• LANGS BAR LTD
• LEL NUCLEAR LTD
• LJA (BIRMINGHAM) MANAGEMENT LTD
• LLUNA FORMWORK LTD
• LOKI ENTERPRISES LIMITED
• LOUISE DANIELS LIMITED
• LUYIYA GLOBAL (UK) CO. LTD
• LP SD EIGHTY SEVEN LIMITED
• MASALA BOWL LIMITED
• ME19 INTERIOR CONSTRUCTION LTD
• MODERN STAFF RECRUITMENT LIMITED
• N & R BUILDERS LTD
• NEW VIEW BUILDING LIMITED
• NIKAU DEVELOPMENTS LIMITED
• NJL PROPERTY SOLUTIONS LIMITED
• OCR MOTIVATIONAL LTD
• OLD FASKALLY CONTRACTING COMPANY LIMITED
• OCEAN STARS FOOTBALL MANAGEMENT LTD
• ONEIX LTD
• ONLINE CYBER LTD
• OVERHIRST LIMITED
• PHINESSE LIMITED
• PJW MANAGEMENT LIMITED
• PLONK GOLF LTD.
• POMEGRANATE CONSULTING LIMITED
• PRONORM KITCHEN DESIGN LTD
• PURE CLEANING (SCOTLAND) LIMITED
• QUICKS ARCHERY LTD
• QUICKS QAL LIMITED
• RDT KENT LIMITED
• REJOICE GROUP LIMITED
• RFGC GROUP LTD
• ROAD TO SEA LTD.
• RS BROTHERS LTD
• SHAKUNTLA DEVI PRITHI CHAND LIMITED
• SILVER CITY LAUNDERERS LIMITED
• SIMPLE LED SOLUTIONS LTD
• STARS MCR STRETFORD RD BRANCH LTD
• SYSTRUM LIMITED
• THE ARTISAN PASTA MAKER LTD
• THE FLOOR STUDIO (SCOTLAND) LTD
• THE WHITE HORSE INN HURST LTD
• TIREe HOLDINGS LTD.
• TREVOR KIDD CONSULTANTS LIMITED
• TSIMAVOR GLOBAL VENTURES LTD
• ULSTER INVESTMENTS LTD
• VAPOUROUND GROUP HOLDINGS LIMITED
• VAPOUROUND INTERNATIONAL LIMITED
• WE RANK DIGITAL LTD
• WEXHAM SERVICES LTD
• WIKIFLOW LTD
• WILLIAM MILNE TARPAULINS SCOTLAND LIMITED
• WONG 88 LIMITED
• WOODBOIS SERVICES LIMITED
• WORKFORCE RECRUIT LTD

Winding up Orders (Companies)

• 111 INVEST LIMITED
• ROHT INVEST LTD
• UNIVERSAL CONTRACT SUPPLY LIMITED