Business news 24 October 2025

The UK economy delivered a mixed picture for small and medium-sized enterprises this week. Ministers are weighing tax rises while pushing to cut red tape; manufacturing and investment remain weak, and wage pressures continue to squeeze cash flow. Yet retail sales surprised on the upside and bank profits improved. Globally, oil prices jumped on new Russia sanctions, raising inflation risks, while Apple and China both faced legal and political headwinds in Britain. For SMEs selling on credit, the climate remains challenging — margins are narrow, borrowing costs high, and prompt-payment discipline more important than ever.

James Salmon, Operations Director.

DOMESTIC NEWS

1. Reeves launches £6 billion red-tape reform drive

Chancellor Rachel Reeves unveiled a plan to streamline business regulation, aiming to save companies up to £6 billion a year. The reforms include faster competition-authority decisions and the removal of repetitive filings and outdated reporting obligations. The Treasury hopes the changes will encourage investment and lift productivity, particularly among small firms burdened by compliance costs.
Impact for SMEs: Lower administrative overhead could ease cash-flow strain and free resources for credit control and growth investment, though changes will take time to filter through.

2. Income-tax rise under consideration

Facing a £30 billion budget shortfall, the Chancellor is reportedly weighing a 1 p rise in the basic rate of income tax, potentially raising £8 billion but breaking a key manifesto pledge. Higher or additional-rate increases are also being discussed. Economists warn that such a move would reduce disposable income at a time when households already face elevated prices.
Impact for SMEs: Lower household spending would reduce turnover for consumer-facing businesses and could lengthen payment cycles for firms offering trade credit.

3. JP Morgan calls for welfare restraint

Karen Ward, JP Morgan’s chief market strategist, urged the government to tackle long-term welfare spending instead of raising taxes. She said persistent structural overspending undermines fiscal credibility and pushes up borrowing costs for both the state and private sector. Investors, she added, are charging Britain more to borrow because of its reluctance to address these pressures.
Impact for SMEs: Fiscal credibility influences gilt yields and, by extension, lending rates — tighter budgets could support long-term stability but may curb near-term consumer demand.

4. Retail and hospitality pay squeezed

New ONS data show wages in retail and hospitality grew more slowly than in other sectors this year as employers cut hours and staff to offset higher payroll taxes and minimum-wage costs. Many smaller operators are balancing staffing needs against weak demand. Analysts warn that rising costs are eroding profit margins despite steady sales volumes.
Impact for SMEs: Expect continued margin pressure and possible requests from trade customers for extended credit terms.

5. Gender-pay gap narrows

The ONS reported the UK gender pay gap for full-time workers fell to 6.9 percent, more than 25 percent lower than a decade ago. The share of workers in low-paid jobs dropped to a record 2.5 percent. Officials said the figures reflect a stronger labour market and improved equality in professional roles.
Impact for SMEs: A narrower pay gap supports household resilience and demand but keeps payroll costs high; equal-pay compliance remains an administrative priority.

6. UK dividends fall amid economic uncertainty

Computershare’s Dividend Monitor showed UK dividends totalled £24.6 billion in the third quarter, down 1.4 percent year-on-year. Companies are holding cash amid weak business confidence and stubborn inflation. The report predicts a second consecutive annual decline in total dividends — a rarity for the UK market.
Impact for SMEs: Large corporates hoarding cash can slow payment flows to smaller suppliers; watch for delayed settlements or contract deferrals through year-end.

7. NatWest reports 30 percent profit surge

NatWest posted pre-tax operating profit of £2.18 billion for Q3, up from £1.67 billion a year earlier, helped by higher income and improved net-interest margins. Total income rose 15 percent to £4.33 billion, beating forecasts, with a margin of 2.37 percent. The bank said strong results reflect disciplined cost control and solid demand for loans.
Impact for SMEs: Healthy bank earnings suggest stability, but high margins indicate borrowing remains expensive and selective, reinforcing the case for tight cash-flow planning.

8. Manufacturing activity slumps in October

The CBI’s industrial trends survey recorded a sharp fall in UK manufacturing orders, the total balance dropping to –38 from –28 in September. Confidence also weakened, with sentiment down to –19 from –6 in July. Analysts cited rising costs, sluggish demand, and disruption from the recent Jaguar Land Rover cyber-attack.
Impact for SMEs: Smaller suppliers may face postponed orders and slower payments; firms in engineering and transport should monitor credit exposure closely.

9. FCA reports surge in customer complaints

Financial firms paid £283 million in redress in the first half of 2025, up 20 percent from late 2024, as total complaints reached 1.85 million. Cases about banking and credit cards rose 7 percent, while pension complaints climbed 5 percent. The upheld rate remained around 57 percent.
Impact for SMEs: Banks dealing with heavier regulatory costs may tighten lending standards, indirectly affecting access to working capital for small businesses.

10. Fraud losses climb as scams evolve

UK Finance said authorised push-payment fraud losses grew 12 percent in the first half of 2025 to £257 million. Investment scams rose 55 percent to nearly £98 million, with criminals using artificial intelligence to enhance phishing and impersonation tactics. Although 62 percent of funds were reimbursed, average losses per case remain high.
Impact for SMEs: Invoice-redirection and impersonation scams are increasing; SMEs should verify payee details and update fraud-prevention training immediately.

INTERNATIONAL AND TECH NEWS

11. Oil prices jump on Russia sanctions

Oil rose more than 5 percent after the United States sanctioned Rosneft and Lukoil, followed by EU measures targeting Russia’s energy sector. Moscow condemned the move as an “unfriendly act.” Analysts warn the disruption could push Brent crude toward $85 a barrel if supply tightens further.
Impact for SMEs: Higher fuel and transport costs will feed through supply chains; businesses should factor energy surcharges into Q4 budgeting.

12. China warns UK over Scottish wind-factory block

Beijing threatened to reconsider investment in the UK if the government halts Ming Yang Smart Energy’s £1.5 billion turbine project in Scotland. Security agencies have raised espionage concerns, delaying approval. The project was expected to create thousands of jobs in renewable manufacturing.
Impact for SMEs: Smaller contractors in engineering and logistics could lose prospective work; uncertainty may delay renewable-sector payments and orders.

13. Apple found to have abused market dominance

A British court ruled that Apple charged excessive commissions to developers on its App Store, breaching competition law. The class-action case, first filed in 2021, could see Apple liable for up to £1.5 billion in damages to UK consumers. Apple plans to appeal, calling the judgment “flawed.”
Impact for SMEs: The decision increases pressure on large digital platforms to reduce transaction fees, potentially improving margins for smaller online merchants.

14. LinkedIn claims £500 billion AI productivity boost

LinkedIn’s report estimates UK companies could unlock £532 billion in productivity gains through AI-assisted recruitment. However, 71 percent of recruiters using AI say it reduces personalisation. Most AI job postings are in London, highlighting a regional skills gap.
Impact for SMEs: Regional firms may struggle to access AI-literate talent; automation can cut admin time but should complement, not replace, human client contact.

15. Brexit’s lasting drag on investment

Bank of England economist Swati Dhingra said Brexit has reduced UK GDP per capita by 6–8 percent, with investment down 12–18 percent and productivity 4 percent lower. These estimates exceed the OBR’s earlier 4 percent forecast, underlining long-term damage to growth capacity.
Impact for SMEs: Persistent low investment and weaker productivity limit domestic demand and make late-payment cycles harder to shorten.

MARKETS SUMMARY (last 24 hours)

  • Equities: FTSE 100 hit a record 9,578 (+0.7 percent), led by Rentokil and LSEG. European indices extended gains as energy stocks rallied. US benchmarks approached all-time highs on tech strength.
  • Commodities: Oil spiked 5 percent after Russia sanctions; copper gained 1 percent toward $10,970, while iron ore slipped 1.4 percent on Chinese steel weakness. Gas prices stayed range-bound.
  • Currencies: EUR/USD ≈ 1.1627; EUR/GBP 0.8726; sterling supported by stronger retail data.
  • Key themes include FTSE 100 hitting new record highs, oil market disruptions from Russia sanctions driving energy stock rallies, copper approaching record levels, positive UK retail sales data, and markets positioning ahead of US inflation data with Trump-Xi meeting providing trade optimism.
  • In Plain English: Equities are buoyant, commodities volatile, and sterling stable. The oil shock renews inflation concerns that could keep interest rates elevated into winter.

INSOLVENCIES — 24 October 2025

Petitions to Wind Up (Companies)

  • 3 CHEFS DERBY LIMITED
  • 4 ATL 404 LTD
  • ALR TRADING LIMITED
  • ARIS FLOORING LTD
  • ASHBROOK FACILITY MANAGEMENT LIMITED
  • ASTON CROSS ACCIDENT REPAIR CENTRE LTD
  • AUTHORING HOUSE LIMITED
  • AUTO NATION LTD
  • B T TRIMMINGS & PACKAGING LIMITED
  • BELLAMORE TRADING LIMITED
  • BEYOND CLINICS LTD
  • BIODRIVE LTD
  • BRADBURY CATERING LTD
  • BRIXHAM MORTAR LIMITED
  • CLAVELSHAY CONSTRUCTION LTD
  • COLOURCRAFT AUTOS LTD
  • COMBAT LEAGUE LIMITED
  • CT METAL RECYCLING LIMITED
  • DAISY HOME DESIGNS LTD
  • DCD ALL BUILD LIMITED
  • D & R CONSTRUCTION LIMITED
  • DEFINITELY MAYBE BAR LIMITED
  • DKUNA LTD
  • DMK TRANSPORT LTD
  • DOT2DOT BRANDING LTD
  • EIREANN RECRUITMENT SERVICES LTD
  • ELM HOUSE (UK) LTD
  • ESSEX LEISURE (GANTS HILL) LIMITED
  • EVENOAK SERVICES (WORCESTER) LIMITED
  • GL FOODS LTD
  • G.O.N CLEANING SERVICES LIMITED
  • GREENHILL CARE HOMES LIMITED
  • GROUND FLOOR KITCHEN LIMITED
  • HILAHI INTERNATIONAL LTD
  • IRIS GALERIE LONDON LTD
  • JILL EDWARDS LTD
  • JJUSTT LTD
  • JOHN HAGAN LTD
  • K & E TRADING LIMITED
  • KLOSEN UK LTD
  • LITTLE ANGEL PUB COMPANY LTD
  • MANJLAI LTD
  • N & S MECHANICAL LTD
  • NATALIE REYNOLDS LIMITED
  • NUMBER 1 COURIERS UK LTD
  • O’BOYLE ROOFING LIMITED
  • OLIVEIRA IMPORTS LIMITED
  • OMA CONSULTING LTD
  • ONE STOP STAFFING LIMITED
  • P & F EXPRESS FREIGHT LIMITED
  • RELIACARE LIMITED
  • REACT DIGITAL LIMITED
  • RETRO STARS LTD
  • ROGUE SUN LTD
  • SABER TYRES LIMITED
  • SALON APP GLOBAL LTD
  • SEED MENTORS ENTREPRENEURS LIMITED
  • SES CLEANING LTD
  • SOLUTIONS RECRUITMENT LIMITED
  • SOPHIA TECH LTD
  • STAFFORDSHIRE LOFTS LTD
  • STRABANE GARDEN DEPOT LTD
  • TAGGART ELECTRICAL IRELAND LIMITED
  • THE ALCHEMY WORKSHOP LIMITED
  • THE HERITAGE CONTENT COMPANY LIMITED
  • THE OAK NETWORK UK LTD
  • TJ PROJECTS LTD
  • TKSD CARE HOMES & TRAINING LTD
  • TRANSCO WASTE LIMITED
  • TTT BUILDER LTD
  • V & S PREMIUM CONSTRUCTION LTD
  • VAPES WORLD UK LTD
  • VENDOR SERVICES LIMITED
  • WEE WHEELS RIDE ON CARS LTD
  • WISE UNITTED LTD
  • WOKORLEY IT SOLUTIONS LIMITED
  • WOODMANS CONSTRUCTION (BRIGHTON) LIMITED
  • YELLOWBOX BRITAIN LTD

Appointment of Administrators

  • ALLEN GLENOLD LIMITED
  • JAMES BURROWS LIMITED
  • PLAY VIRTUOSO GROUP LIMITED

Appointment of Liquidators

  • ALLEY HOLDINGS LTD
  • APPLE POLYURETHANE LIMITED
  • COUSINS PROPERTIES LIMITED
  • EMCOV LIMITED
  • FLOW LEARN LTD
  • GOYT INVESTMENTS LIMITED
  • HARMONIE MAKERS OF FINE JEWELLERY LIMITED
  • HEBEMO LIMITED
  • MERLETT PLASTICS (U.K.) LIMITED
  • MORTLAND LIMITED
  • SSH REFERRALS LTD
  • STRAWBERRY PERCY LLP
  • TARGET BUILDING AND CONSTRUCTION LIMITED
  • TELESYSCO LIMITED

Additional Petitions (23 October 2025)

  • RULECROWN PROPERTIES LTD
  • SPICE TRADING LTD
  • TORRETTA ROSSA LTD

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