Business news 25 February 2026
Confidence across multiple parts of the UK economy is being tested. Youth unemployment has climbed to 16.1%, high-net-worth individuals report falling confidence amid tax concerns, and entrepreneurs are calling for a “radical reset” to improve competitiveness. Meanwhile, the Bank of England is preparing markets for further rate cuts, energy bills are set to fall in April, and the housing market is showing signs of life.
James Salmon, Operations Director.
SME-Focused Stories
Youth Unemployment Climbs to 16.1%
Bank of England Chief Economist Huw Pill linked recent increases in employer National Insurance and minimum wage rises to a sharp rise in youth unemployment, now at an 11-year high of 16.1% compared with 5.2% for the wider workforce. He warned of long-term scarring effects on job prospects and mental health.
Why it matters: Higher hiring costs may suppress entry-level recruitment and squeeze margins in labour-intensive sectors, increasing payment pressure across retail, hospitality and service supply chains.
Making Tax Digital Transition ‘Likely to Be Difficult’
Nearly 3 million self-employed individuals and landlords earning over £50,000 will soon be required to submit quarterly digital income reports under Making Tax Digital for Income Tax. Tax experts warn many remain unaware and could face confusion or penalties.
Why it matters: Compliance costs and administrative disruption may tighten cashflow among sole traders and landlords, increasing late payment risk during transition.
Housing Listings Jump 6% as Mortgage Rates Ease
Zoopla reports the highest February property listings in a decade, up 6% in four weeks. House prices rose 1.3% year-on-year, with Northern Ireland up 8%. Improved mortgage affordability is supporting activity.
Why it matters: Rising transaction volumes support trades, legal services and home improvement firms, strengthening order books and improving payment reliability in property-linked sectors.
Energy Price Cap to Fall 7% in April
The household energy price cap will fall to £1,641 from April 1, the lowest level in almost two years. Costs are being partially shifted from bills to general taxation.
Why it matters: Lower household bills support consumer cashflow and reduce inflation pressure, but fiscal implications may influence future tax policy affecting businesses.
Economic & Policy Developments
Bank of England Signals Further Rate Cuts
Governor Andrew Bailey said there is scope for further monetary easing as inflation returns to target, though timing remains data-dependent. Internal MPC voices remain cautious about moving too quickly.
Why it matters: Gradual rate cuts should ease borrowing costs and improve debtor liquidity, but uneven demand means credit discipline remains essential.
Productivity “Revival” Driven by Labour Dishoarding
The Bank sees signs productivity is improving as firms reduce excess post-pandemic staffing. While mechanically boosting output per worker, it may also lift unemployment in the short term.
Why it matters: Transitional restructuring phases often coincide with elevated insolvency risk among weaker operators.
Entrepreneurs Call for “Radical Reset”
Business leaders behind the Enterprise Britain campaign warn the UK has a narrow window to restore competitiveness. Proposals include easing hiring processes and encouraging pension fund investment in UK firms.
Why it matters: Investment confidence directly influences expansion, hiring and payment behaviour across SME supply chains.
HNWI Confidence Falls on Tax Concerns
Saltus reports confidence among wealthy individuals has fallen from 66% to 59% in six months. A quarter are considering leaving the UK for tax reasons.
Why it matters: Reduced domestic investment appetite may dampen funding availability for scale-ups and property markets.
Calls to Cut Bank Taxes
UK banks paid £35.2bn in tax last year, with an effective rate of 46.4%. Industry groups argue high sector-specific taxes reduce competitiveness and ultimately increase borrowing costs.
Why it matters: Bank profitability pressures can translate into tighter lending standards and higher financing costs for SMEs.
UK AI Sector Raises £20bn in Private Capital
British AI firms raised over £20bn in private capital in the past year, reaching a combined valuation above £45bn. However, 39% of workers view AI as an economic risk.
Why it matters: AI-driven productivity gains may widen the gap between efficient firms and weaker operators, accelerating sector divergence.
Market Snapshot
Global markets remain resilient, but leadership is narrow and volatility remains close to the surface.
UK & Europe
The FTSE 100 is holding near record territory at 10,774, supported by energy stocks as oil trades near seven-month highs. However, European bank shares came under pressure after JPMorgan’s Jamie Dimon warned about parallels with pre-2008 credit behaviour. The STOXX 600 edged higher to 632, masking clear sector divergence.
The German DAX remains near 25,000 but struggled for direction, reflecting uncertainty over global trade tensions and industrial demand.
The tone across Europe is constructive but cautious — strength in defensive and energy names is offsetting softness in financials.
United States
US markets recovered from earlier AI-related selling pressure.
- S&P 500: 6,890
- Dow Jones: 49,174
- Nasdaq 100: 24,977
Technology stocks stabilised after fresh AI optimism helped calm fears about displacement risk. However, Federal Reserve officials struck a more hawkish tone, reinforcing that inflation control remains the priority.
This leaves markets in a balancing act: enthusiasm about AI growth versus the risk of rates staying higher for longer.
Asia
Asia was the standout region overnight.
Japan’s Nikkei hit another all-time high at 58,583 after reflation-friendly nominations to the Bank of Japan board weakened the yen and boosted exporters.
South Korea’s KOSPI surged above 6,000 for the first time, now up over 40% this year, driven by AI-linked tech stocks. Taiwan also saw heavy foreign buying.
This confirms that AI remains the dominant global equity theme — capital is flowing aggressively into technology-heavy markets.
Currencies
- GBP/USD: 1.3512
- EUR/GBP: 0.8725
- GBP/JPY: 211.60
The pound is steady against the dollar and euro, providing relative stability for importers and exporters. The yen weakened sharply after dovish signals from Japan’s central bank.
Sterling stability is helpful for UK businesses managing overseas invoices.
Commodities
Oil prices remain elevated:
Markets are pricing in geopolitical risk around Iran, even as US inventories rose sharply. Energy strength is supporting oil majors but keeps inflation risks alive.
Gold eased back to $5,186 as risk appetite improved, though it remains historically elevated — a sign that investors are not fully relaxed.
Copper at $13,166 reflects strong expectations for industrial demand and AI infrastructure build-out.
Overall Market Tone
Markets are optimistic but selective.
- AI enthusiasm is driving equity gains.
- Banking sector warnings are reintroducing credit concerns.
- Oil prices reflect geopolitical tension.
- Central banks remain cautious.
The environment is resilient — but not relaxed.
Insolvency Notices
Appointment of Administrators
AMBER BRIDGING LIMITED
C. FULLARD (METALS) LIMITED
IMMEDIA BROADCAST LIMITED
NIDHOGGR MEAD CO. LIMITED
OPTIMUM CONSULTING GLOBAL LTD
PIGLET’S PANTRY LIMITED
TEWITFIELD LEISURE LTD
W J BENNETT & SON LTD
ZIRCON BRIDGING LIMITED
Appointment of Liquidators
ALEX AYRES ASSOCIATES LIMITED
AMALGAMATED STEEL AND FASTENERS LTD
APRICOT STUDIOS LIMITED
BURRINGTON ESTATES (BERE ALSTON) LIMITED
CAXTON PRINTING CO. (ACCRINGTON) LIMITED
CLEMEBIL LIMITED
COLIN HARRIS HOLDINGS LIMITED
CONFIDENT CONSULTING LTD
CPY CONSULTING LTD
D-FOUR TECHNICAL SERVICES LTD
DYNAMICACTION LIMITED
ECOMIZE LTD
GEE AGGAR & CO LIMITED
HGH REALISATIONS LTD
J E OUSTON CONSULTANTS LIMITED
JAMES ROOKE CREATIVE LIMITED
JOHN EVANS TECHNICAL SERVICES LIMITED
KINGS CAPITAL LIMITED
KITSUNE CONSULTING LIMITED
L DRAKE LIMITED
PAQM AERO LTD
PERI INFORMATION TECHNOLOGIES AND CONSULTANCY LTD
R EASTMENT CONSULTING LIMITED
RINMORE INTELLIGENT DATA LTD
S.E. DEBOO INVESTMENTS (HASTINGS) LIMITED
SELECT CARAVANS LIMITED
SOLUTIONWRIGHT LTD
UNICRAFT SOFTWARE SOLUTIONS LIMITED
VITAL HEALTHCARE TECHNOLOGIES LIMITED
WADDINGTON TECHNOLOGY LTD
WESTON FACILITIES LIMITED
Petitions to Wind Up (Companies)
AUTUMNBROOKE GARAGE (BRISTOL) LTD
BASHFORD & CO CORPORATION LIMITED
BD COMPLETE BUILDING SERVICES LIMITED
DRM ENVIRONMENTAL LTD
EDUCATION DIVERSE LTD
FAIR LINKS ESTATES LTD
J.M. DANSLOW LIMITED
K WALSH ROOFING & ROUGHCASTING LTD
NOVAGLASS (INSTALLATIONS) LIMITED
RBT RECRUITMENT LTD
SC BUSINESS GATEWAY LTD
SINERGY GROUP LTD
STATHIS PROPERTY LIMITED
ZEBRA TEXTILE LTD
What CPA Can Do for You
When economic confidence wavers and insolvency numbers rise, disciplined credit control becomes critical.
CPA helps Members:
- Identify risky customers before supply
- Monitor trading behaviour changes
- Escalate overdue accounts early
- Recover debts while preserving relationships
Protecting cashflow is not about reacting late — it is about acting early.
Call 020 8846 0000 to discuss how CPA can strengthen your credit control process.
Or email PaidQuick@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