Business news 26 December 2025
With markets quiet and policymakers largely off-duty, today’s business news is lighter than usual due to the Christmas holiday period. Even so, there are still important signals for small businesses — particularly around cash flow risk, regulation, and insolvency activity, which continues despite the seasonal slowdown.
James Salmon, Operations Director.
SME & Economic Stories
UK economy forecast to rise in global rankings
The UK is forecast to overtake Japan to become the world’s fifth-largest economy by the mid-2030s, according to the Centre for Economics and Business Research. While the US and China are expected to remain dominant for the next two decades, India is projected to become the third-largest economy by 2040 and potentially the largest by the end of the century.
Why it matters:
Long-term growth forecasts do not ease short-term payment risk — SMEs should remain cautious about extending credit based on optimism alone.
Wood-burning stoves face tighter regulation as use rises
The number of wood-burning stoves in UK single-family homes has risen by more than 25% since 2009, driven by efficiency claims and aesthetic appeal. However, the government is considering stricter standards on new stoves amid concerns over air pollution and health impacts, particularly in urban areas.
Research shows wood burners can release fine particulate matter linked to respiratory illness, and campaigners argue many are used for ambience rather than necessity.
Why it matters:
Retailers, installers and fuel suppliers could face regulatory change, compliance costs or demand softening, increasing credit risk on discretionary spending.
Cold and wind warnings raise short-term disruption risk
Although the UK avoided a white Christmas, the Met Office has issued cold and high-wind warnings covering parts of south-west England, Wales and exposed coastal areas. Gusts of up to 65mph are possible, alongside overnight freezing conditions in rural areas.
Health authorities warned that cold weather typically increases pressure on health and social care services.
Why it matters:
Weather disruption can delay deliveries, staffing and payments, increasing short-term cash-flow strain during an already slow trading period.
Global Snapshot (Quiet holiday edition)
Japan approves record budget amid debt concerns
Japan has approved a record ¥122 trillion budget, with rising tax revenues but growing concern over debt, inflation and a weak yen. Investors are increasingly uneasy about fiscal sustainability under the new prime minister.
US restricts Venezuelan oil exports
The US has reportedly ordered its armed forces to quarantine Venezuelan oil for at least two months, applying economic pressure rather than military force. Any sustained disruption could add volatility to energy markets.
Why it matters:
Energy price instability raises operating costs and can worsen payment delays across transport, logistics and manufacturing.
Insolvency Notices
Activity continues despite the holiday period
Appointments of Liquidators
- Digital SEO Ltd
- Health Marketing Ltd
- Healthcare SEO Ltd
- S & S Griggs Limited
Appointment of Administrator
- Paracas Independent Films Ltd
Winding Up Order
Why this matters:
Multiple liquidations in service-based sectors underline that financial distress does not pause for Christmas, and late action by creditors can mean reduced recoveries.
CPA note to members
The final week of the year often brings a false sense of calm. In reality, this is when missed payments, silent customers and unresolved debts can quietly worsen. Early January is one of the busiest periods for chasing overdue accounts — preparation now makes all the difference.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economic collections