Business news 27 January 2026
UK businesses are facing a familiar but intensifying mix of rising costs, fragile demand and growing insolvency risk. Inflation in shops is picking up again, hospitality and retail remain under strain, and insolvency notices continue to spread across construction, property, education and professional services. At the same time, global markets are pushing towards record highs, fuelled by strong earnings and surging commodity prices — a reminder that financial conditions and day-to-day trading realities for SMEs remain sharply disconnected. For businesses selling on credit, cash flow discipline has rarely mattered more.
James Salmon, Operations Director.
SME-Focused & Credit Risk Stories
Government prepares £100m support package for pubs
The Treasury is preparing to unveil a targeted support package worth around £100m per year for pubs, following heavy criticism that recent business rates changes have driven up costs. The relief is expected to be narrowly focused on pubs rather than the wider hospitality sector and will not include a VAT cut on alcohol.
Why it matters: Pubs remain under severe cash pressure, and targeted relief may slow closures — but suppliers should remain cautious as many operators continue to trade on extended credit.
Four hospitality businesses closing every day
New data shows Britain’s hospitality sector is shrinking fast, with a net loss of 382 venues between October and December. Industry bodies warn that without broader support, hundreds of restaurants, hotels and pubs could close in 2026, despite pubs being exempt from upcoming business rates increases.
Why it matters: Persistent closures raise late-payment and bad-debt risk for suppliers, particularly those exposed to food, drink, utilities and services.
Revolution Bars owner nears administration
Revel Collective, owner of more than 60 venues including Revolution Bars and Peach pubs, is set to appoint administrators unless a last-minute sale is secured. The company cited rising National Insurance, higher minimum wages and increased duties, adding £4m a year in costs.
Why it matters: Large hospitality collapses often leave unsecured suppliers exposed — early credit checks and prompt action on overdue accounts are critical.
A third of retailers issue profit warnings
One-third of UK-listed retailers issued profit warnings last year, marking the fourth consecutive year at this elevated level. While the pace has slowed slightly, EY warns the environment remains “uneasy” amid weak consumer demand and geopolitical uncertainty.
Why it matters: Profit warnings often precede payment delays — suppliers should monitor retail customers closely and tighten terms where possible.
Economic & Policy Developments
Shop price inflation hits highest level in nearly two years
Inflation in British shops rose to 1.5% in January, with food inflation climbing to 3.9%, its highest since September. Rising costs are again filtering through supply chains, raising concerns for policymakers and businesses alike.
Why it matters: Higher input costs squeeze margins and cash flow, increasing reliance on credit and raising the risk of slower payments.
HMRC closes phone lines on self-assessment deadline day
HMRC will not provide phone support on the self-assessment deadline day (Saturday 31st Jan), despite around 3.3 million returns still outstanding. The closure has sparked criticism from advisers and small business groups.
Why it matters: Missed deadlines can quickly turn into penalties and cash flow shocks for SMEs already under strain.
BCG urges focus on energy and digital infrastructure
Boston Consulting Group says boosting investment in energy and digital infrastructure would deliver the biggest long-term economic growth gains. The UK’s capital stock has steadily declined over recent decades, holding back productivity.
Why it matters: Infrastructure investment supports long-term stability, but short-term funding gaps mean many SMEs must rely on tighter cash management now.
Employment, Technology & Skills
AI costing more UK jobs than it creates
New research suggests AI adoption has led to an 8% net reduction in roles in the UK over the past year, with mid-career professionals hardest hit. Productivity gains have been significant, but job vacancies have fallen sharply.
Why it matters: Restructuring and automation can disrupt payment behaviour, especially where businesses are cutting costs or reshaping operations.
Industry & Sector Stories
Sage reports strong first quarter
Accounting and payroll software group Sage reported a 10% rise in revenue to £674m, with strong growth across the UK, Europe and North America, driven by cloud adoption.
Why it matters: Investment in financial systems reflects rising demand for better credit control, forecasting and cash visibility.
Rental home construction in London collapses
New build-to-rent construction in London fell by 80% last year, with industry bodies blaming rising costs and regulatory delays, particularly around building safety approvals.
Why it matters: Construction slowdowns increase insolvency risk across contractors, suppliers and professional services firms.
European car sales rise for third year
European car sales grew again in 2025, driven by electric and hybrid vehicles, with Chinese brands gaining market share. Further growth is expected this year amid subsidies and new models.
Why it matters: Supply chains may lengthen and pricing pressures may increase, affecting payment cycles for automotive suppliers.
Global & Market News
City of London warns over economic pessimism
The Lord Mayor of London warned that excessive pessimism is damaging the UK’s global reputation, despite strong rankings for investment attractiveness. She urged greater focus on UK strengths such as fintech, green finance and AI.
Why it matters: Confidence shapes investment flows, but domestic SMEs continue to face day-to-day funding and payment challenges.
Starmer says UK won’t choose between US and China
The Prime Minister said the UK can pursue closer economic ties with China without damaging relations with the US, highlighting “significant opportunities” for British businesses ahead of a major trade visit.
Why it matters: Global trade shifts can open opportunities but also introduce new credit and counterparty risks.
Trump threatens 25% tariffs on South Korean goods
President Trump warned of steep new tariffs on South Korean imports, rattling markets despite earlier gains.
Why it matters: Trade disruption can quickly ripple through supply chains, increasing cost volatility and payment risk.
Market Snapshot
Global equity markets are pushing towards record highs. Asian markets led gains, with the Hang Seng rising 1.35% and Japan’s Nikkei up 0.85%. In Europe, the FTSE 100 edged up to 10,169, while the Euro Stoxx 50 held near 5,965. US markets closed Monday higher, with the S&P 500 ending near 6,950, just shy of the emotionally significant 7,000 mark.
Global stocks are pressing toward fresh record highs, with technology shares leading the advance as the earnings season moves into its busiest phase . Communication services and technology stocks led the S&P 500’s gains . Traders looked beyond fresh trade and policy risks, focusing instead on a strong start to fourth-quarter earnings.
Sterling strengthened modestly against most major currencies, trading around $1.37 against the dollar and €1.15 versus the euro. GBP/USD: 1.3677 (GBP up 0.02%) GBP/EUR: 1.1525 (GBP up 0.09%) with the US dollar at its lowest since 2022.
Commodities dominated headlines. Gold surged above $5,000 an ounce for the first time, while silver remained volatile after a historic rally. Oil prices eased slightly, with Brent near $65 a barrel, and natural gas pulled back after a sharp weather-driven spike.
Why it matters: Strong markets contrast sharply with SME trading conditions — volatility reinforces the need for tight credit control and proactive cash flow management.
Insolvencies & Winding-Up Notices
Appointments of Administrators
- CAV SLEEP LIMITED
- SEEDLINGS PRE-SCHOOL LIMITED
- SERT GROUP LIMITED
- SERT TRAINING LIMITED
- TOYE, KENNING & SPENCER LIMITED
Appointments of Liquidators
- ALPHA TT LIMITED
- AVOCA PROPERTIES LIMITED
- B & T S BUILDERS MERCHANTS LTD
- BODYSCAN LTD
- BODENHAM MEDICAL SERVICES LIMITED
- CAMPUS PROJECTS (DRUMGLASS) LIMITED
- CCM IT LTD
- DRUMGLASS HOLDCO LIMITED
- DRUMGLASS INVESTMENTS LIMITED
- EMMA HOUSE LIMITED
- IPR LICENSE LTD
- LOCKYER TEXTILES LIMITED
- LOGIC LEAP SOLUTIONS LIMITED
- ODYSSIAN LIMITED
- PARKHOUSE CONTENT LTD
- PURPLEWORM IT CONSULTING LIMITED
- ROSEGROVE DEVELOPMENTS LIMITED
- SPORT FASHION DISTRIBUTION U.K. LTD
- STAR NOTES ISSUER 2022-1 LIMITED
- STARLIGHT 3 LTD
- WEB PROPERTIES UK LIMITED
- ZEST-HEALTH FOR LIFE LIMITED
Petitions to Wind Up
- ALL FOOD PRODUCTS LTD
- BLC HAMMERSMITH LIMITED
- BLC ISLINGTON LIMITED
- BRANDING LATIN AMERICA LIMITED
- D & G PROJECT MANAGEMENTS LTD
- EDUCATIONAL TRAINING SUPPORT LTD
- HOCKLEY DEVELOPMENTS LIMITED
- L PETRIELLO DEVELOPMENTS LTD
- ORANGE LANE REAL ESTATE LIMITED
- SPORTS BRANDS LIMITED
What CPA can do for you
When costs rise and insolvencies increase, late payment risk grows quietly but quickly. CPA helps businesses protect cash flow by spotting warning signs early, tightening payment behaviour and resolving overdue accounts professionally — without damaging customer relationships. If you sell on credit, now is the time to stay ahead of the risk.
Just 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.