Business news 26 November 2025

A turbulent run-up to tomorrow’s Budget is driving anxiety across UK business, with tax rises, policy reversals and market volatility weighing on confidence. New reports point to weakening retail sentiment, fragile investment appetite, and growing pressure on households. For SMEs trading on credit, the combination of higher operating costs and slower customer demand increases the risk of late payment, bad debt and tightened cash flow. Below is your full update.

James Salmon, Operations Director.

The Budget day headlines!

1. Chaotic Budget signals major tax rises

Multiple reports describe the run-up to the Budget as chaotic, with the government floating and then abandoning several proposals. Rachel Reeves faces a £30bn fiscal gap and is expected to implement targeted tax rises on property, pensions, and EVs, while avoiding a headline income tax rise.
Why it matters: Unpredictable tax policy creates uncertainty for SMEs and may reduce customer spending and investment confidence.

2. Budget uncertainty may delay interest rate cuts

Analysts warn that fiscal instability could push the Bank of England to delay expected rate cuts. Higher borrowing costs signal continued pressure for SMEs reliant on loans and credit lines.
Why it matters: Higher-for-longer borrowing costs make cash flow harder to manage and increase the cost of financing.

3. Retail confidence slumps to a 17-year low

The CBI reports a sharp fall in retail sentiment ahead of December, driven by weak demand, rising National Insurance costs and the end of business rates relief.
Why it matters: Weaker retail demand increases credit risk for suppliers relying on timely payments from retailers.

4. Over 1 million homes see price cuts

38.7% of UK properties had price reductions this year, with average discounts of 5.2%.
Why it matters: A cooling housing market often dampens consumer spending, affecting SMEs serving households and property trades.

5. Sugar tax to hit milkshakes and lattes

Pre-packaged milk-based drinks will now fall under the sugar tax, potentially raising prices or forcing reformulation.
Why it matters: Hospitality and FMCG SMEs may face cost changes or reduced customer demand for higher-priced drinks.

6. Retail tax hike concerns

Westfield warns that proposed tax increases could trigger inflation and reduce retail investment unless relief is extended to larger properties.
Why it matters: Retail tenants may reduce orders or negotiate longer payment terms, affecting supplier cash flow.

7. Motability tax relief cuts

Tax reliefs for the Motability scheme will be reduced, though less severely than originally planned.
Why it matters: Suppliers to the automotive mobility sector could see decreased demand or slower purchasing cycles.

8. Minimum wage rise in April

Wages will increase for all age groups, with the main rate reaching £12.71.
Why it matters: SMEs face higher staffing costs, which may reduce margins or lead to hiring freezes.

9. Centrica calls for energy policy reform

CEO Chris O’Shea urges shifting levies from bills to general taxation to cut £200 from household energy bills.
Why it matters: If adopted, reduced energy bills could support household spending and SME cost structures.

10. Stamp duty holiday planned for IPO shares

The Chancellor plans a three-year stamp duty exemption for new UK listings to attract more IPOs.
Why it matters: Could stimulate capital markets, but limited direct impact on most SMEs.

11. WH Smith faces scrutiny over accounting error

A £30m income overstatement in its US arm is under FCA review.
Why it matters: Another reminder for SMEs of the importance of accurate revenue recognition, especially for credit sales.

12. Tax take from big firms falls

PwC finds UK’s largest companies paid slightly less tax last year due to a 12% profit decline.
Why it matters: Signals wider economic softening that may trickle down to SME suppliers.

13. Tesla sales fall 48.5% in Europe

EV market share rises, but Tesla unit sales fall sharply year-on-year.
Why it matters: Automotive suppliers may see shifting demand patterns.

14. Nvidia under pressure as Alphabet advances

Meta is reportedly considering switching from Nvidia chips to Google’s AI hardware; Nvidia stock dips.
Why it matters: Signals evolving tech supply-chain dynamics; limited SME relevance unless in tech/AI supply.

15. Weak US economic data adds global concerns

US retail sales and consumer confidence slip, raising recession worries.
Why it matters: A weaker US economy could impact UK exports and global demand.

Market Snapshot

Global markets rallied on rising expectations of a US interest rate cut in December. US equities continued higher, with the S&P 500 up nearly 1% and strong gains in the Dow and small caps. Technology stocks were mixed as Nvidia lost ground but healthcare led the market upward.

In Europe, markets opened higher following the US rally, and Asian markets also climbed.

Sterling strengthened to a one-week high, boosted by pre-Budget positioning. This helped push UK gilt yields slightly lower, with both the 5- and 10-year yields falling by around 5 basis points to 3.92% and 4.48%.

Commodity markets saw oil stabilise near one-month lows amid hopes of progress toward a Ukraine peace deal. Gold advanced on dollar weakness, while copper rose on stronger pricing signals from major producers. European natural gas prices fell again due to mild weather expectations.

Summary: Markets are optimistic about US rate cuts but cautious ahead of the UK Budget. Stronger sterling and lower gilt yields suggest some confidence returning to UK assets.

Tax & Government

  • Extensive pre-Budget briefings highlight likely tax rises on property, pensions, EVs, and business schemes.
  • Income tax rates appear to be staying unchanged, but thresholds may remain frozen, increasing effective tax burdens.
  • The government is examining changes to energy VAT, landlord NI rules, EV road pricing and the Cycle to Work scheme.
    Why it matters: Policy uncertainty makes it harder for SMEs to plan ahead, particularly those offering credit terms.

Industry-Specific Stories

Retail

  • Long-term demand weakness and rising operating costs continue to pressure the sector.
  • Potential retail tax rises could further reduce investment.
    Why it matters: Suppliers may experience slower payments and higher credit risk.

Property & Construction

  • Falling house prices and price reductions indicate cooling demand.
    Why it matters: Contractors and suppliers may face delayed payments.

Energy

  • Calls for structural reform to energy levies could impact long-term SME energy costs.
    Why it matters: Rising input costs remain a major issue for SMEs.

Employment

  • Minimum wage increases confirmed for April, adding costs for SMEs in hospitality, retail, and care.
    Why it matters: Businesses may respond with reduced hours, slower hiring, or price increases.

General Market News

  • Global optimism on US rate cuts continues to support equities.
  • Currency markets saw the dollar weaken and sterling strengthen.
  • Commodities mixed, with gold rising and oil stabilising.

Insolvency Appointments

Administrators

  • Kingsrock Joinery Products Ltd
  • Persona Media Ltd

Liquidators

  • Alepuz Legal Consulting Limited
  • Anchortoken (1985) Limited
  • Antique Wooden Floors Limited
  • Armley Ltd
  • Artizian Group Limited
  • Aviation Way Properties Limited
  • Basti Dublin Limited
  • Bankside Law Limited
  • Broadheath Property Holdings Limited
  • Brogster Ltd
  • Burns Management Ltd
  • Catertek Limited
  • Chancellor Holdings (2018) Limited
  • Charterhouse Medical UK Limited
  • D Cahill Inspection Limited
  • Denver Properties Limited
  • Dizzy Heights Ltd
  • Dora Designs Limited
  • East Sussex Maxillofacial Limited
  • Ellis Salsby Limited
  • Elizabeth Rose Fashions Limited
  • Estover Land Limited
  • Flybondi Holdings plc
  • Glasspool Services Ltd
  • GM Thomas Limited
  • GoogIeberry Limited
  • H&P Associates Limited
  • Hekla Limited
  • Jurchen Consulting Ltd
  • Kenzie’s Coaches Limited
  • Lee Developments (UK) Limited
  • Liger Resay Limited
  • Location London Property Limited
  • Mabl Consulting Ltd
  • Mahal Land Investments Limited
  • M E Rail Engineering Limited
  • Merriment Ltd
  • Melville Investments Edinburgh Limited
  • MMSJ Holdings Limited
  • Montview Guest Houses Limited
  • Morrey Limited
  • Music Plus Sport Ltd
  • Nessa Investments Limited
  • Nigel Stratton Limited
  • Oakridge Finance Ltd
  • Orsorg Ltd
  • Persona Media Ltd
  • Pliva Pharma Limited
  • Premier Gas Services (East Midland) Limited
  • PTL Rail Solutions Limited
  • RD Childcare Limited
  • Scamp Factory Limited
  • SCP Medical Ltd
  • Sempra Consultancy Ltd
  • SG Berkshire Ltd
  • SGDN Limited
  • Springburn Limited
  • Steadroof Limited
  • Sublipress Ltd
  • Ted Leonard Limited
  • The Only Constant Limited
  • Tony Heywood Landscapes Limited
  • Vinpenta Finance Company Limited
  • Youngmight Limited

Winding-up Petitions

  • Adecyn Children’s Home Ltd
  • APL Logistics Ltd
  • Aztec Tooling & Moulding Co. Limited
  • Concept Capital Group Ltd
  • Consolidated Nickel Mines Limited
  • Hearing Diagnostics Limited
  • Rayyan 1 Enterprises Ltd

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