Business news 28 January 2026

UK businesses are facing a familiar squeeze: costs remain high, demand is uneven, and insolvencies continue to stack up. While pubs have secured a modest business rates discount, wider hospitality and retail pressures remain unresolved. At the same time, profit warnings, site closures and rescue deals underline fragile cash flow conditions.

Globally, markets are being pulled in opposite directions. AI-driven tech optimism has pushed US equities to record highs, while a sharp slide in the US dollar, falling consumer confidence and political noise are injecting volatility into currencies, commodities and bond markets. For UK SMEs selling on credit, the message is clear: risk is rising, payment behaviour is likely to deteriorate, and visibility matters more than ever.

James Salmon, Operations Director.

Business News

Starmer seeks closer trade ties with China

Prime Minister Keir Starmer has arrived in Beijing with a delegation of senior banking, manufacturing and cultural figures to explore deeper trade and investment ties with China. The visit is carefully framed to avoid inflaming relations with the US, as the government seeks to balance domestic priorities around growth, free trade and sustainability with the need to protect the US–UK trade relationship.

Why it matters: Expanding trade with China may open opportunities for UK exporters, but also raises geopolitical and payment-risk considerations for businesses trading internationally.

Pubs to receive 15% business rates discount

Pubs and music venues in England will receive a 15% discount on business rates from April and will be protected from further increases for two years. The move follows strong backlash after November’s Budget, which combined higher rates with increases to the minimum wage and employer national insurance contributions. The government has also pledged to review how pubs are valued by the Valuation Office Agency ahead of the next revaluation in 2029, although industry groups argue the relief does not go far enough.

Why it matters: Limited relief eases pressure at the margins but does not remove the underlying risk of late payment and insolvency across hospitality supply chains.

Revolution rescue deal leads to site closures

Revel Collective, owner of Revolution Bars and Revolution de Cuba, will close 21 sites after a rescue deal, resulting in 591 job losses. Administrators confirmed that while more than 1,500 jobs and 41 venues have been saved, several locations will shut immediately. The group reported revenues falling nearly 8% as fragile consumer sentiment and rising costs continued to weigh on trading.

Why it matters: Rescue deals often leave suppliers exposed, with unsecured creditors facing delayed, reduced or renegotiated payments.

Quiz seeks emergency funding after weak Christmas trading

Fast fashion retailer Quiz is seeking rescue financing following disappointing Christmas sales. The business is exploring new funding options and potential store closures as it grapples with rising operating costs and intense competition from online rivals such as Shein and Temu.

Why it matters: Retail distress increases the risk of payment delays and bad debt for wholesalers, landlords and service providers.

William Hill owner accelerates shop closures

Evoke, the owner of William Hill, is closing high street betting shops to offset the impact of higher gambling taxes introduced in last year’s Budget. The company had previously warned that up to 200 stores could close as part of its mitigation strategy.

Why it matters: Sudden site closures can disrupt payment cycles and leave trade creditors and landlords exposed.

London’s last independent gun shop forced to close

William Evans, London’s last independent gun shop, is closing after business rates rose by nearly 150%, with further increases expected later this year. The closure follows the end of Covid-era retail tax relief, highlighting ongoing pressure on niche independent retailers.

Why it matters: Rising fixed costs remain a key trigger for SME failure and unpaid supplier invoices.

Employment & workforce

Young Britons fear bleak job prospects

More than 70% of UK teenagers and young adults say they are anxious about their career prospects, according to new research from the King’s Trust. Nearly three-quarters are worried about job availability, while many also fear the impact of artificial intelligence on future employment. The findings point to a generation entering the workforce amid economic uncertainty and weak confidence.

Why it matters: Hiring hesitancy and workforce anxiety often feed into weaker consumer spending and slower customer payments.

Industry-specific stories

Brompton pauses £100m factory investment

Brompton Bicycles has indefinitely paused plans for a £100m factory in Ashford, Kent, citing a challenging economic climate. The facility was expected to create 2,500 jobs, but sales fell to their lowest level since 2021. While revenues dipped only slightly, the decision reflects caution over committing capital amid global uncertainty and rising costs.

Why it matters: Paused investment is a classic confidence signal and often precedes tighter credit terms and slower payments to suppliers.

Brewdog halts spirits production

Brewdog has stopped production of its spirits brands at its Aberdeenshire distillery, following earlier job cuts and bar closures after reporting a £37m loss. The site will now be reviewed for future use, though cocktail products will continue.

Why it matters: Cost-cutting measures increase the risk of disrupted supply contracts and delayed settlement of outstanding invoices.

Tax & government

HMRC ramps up scrutiny of property transactions

HMRC investigations into property deals rose 88% last year, with additional tax recovered jumping to £200m. Increased complexity around stamp duty rules, particularly for second homes, has driven more errors and follow-up enquiries.

Why it matters: Unexpected tax liabilities can rapidly destabilise cash flow and payment capacity for SMEs and landlords.

Defence funding gap prompts private sector plans

The Ministry of Defence is exploring public-private partnerships to help bridge a £28bn funding shortfall in its long-term investment plans. Officials are assessing how private capital could be used alongside government spending to keep projects affordable and deliverable.

Why it matters: PPP contracts can offer opportunities but often involve long payment cycles and heightened credit exposure.

Global & economic stories

Profit warnings hit record levels

UK-listed companies issued a record 240 profit warnings last year, with policy and geopolitical uncertainty cited in 42% of cases. Retail and technology firms were among the most affected, reflecting soft demand and rising costs.

Why it matters: Profit warnings are an early indicator of deteriorating payment behaviour and rising bad debt risk.

US consumer confidence slumps to 12-year low

US consumer confidence fell sharply in January to its lowest level since 2014, driven by concerns over inflation, the labour market and economic direction. The reading fell short of all economist forecasts.

Why it matters: Weaker US demand can ripple through to UK exporters and suppliers, extending payment times.

Dollar slides as Trump downplays currency weakness

The US dollar has fallen to a four-year low, with President Trump insisting it is “doing great” despite investor concerns over US policy direction. Investors have been offloading American assets amid geopolitical uncertainty, adding to currency volatility.

Why it matters: Currency swings can disrupt pricing, margins and payment certainty for SMEs trading internationally.

Market snapshot – what’s really going on

Global markets are being driven by two conflicting forces: optimism around artificial intelligence and growing unease about economic direction.

In the US, equities remain buoyant. The S&P 500 is hovering just below 7,000, supported by strong technology stocks ahead of major earnings. ASML’s record orders have reinforced confidence in AI-related investment, while shares such as Corning surged on data-centre demand. However, not all sectors are participating — healthcare stocks slumped sharply after proposals to limit Medicare Advantage payments.

Bond markets are sending a more cautious signal. The US 10-year Treasury yield has edged up to around 4.25%, reflecting lingering inflation concerns and uncertainty ahead of the Federal Reserve’s decision.

Currencies have seen some of the most dramatic moves. The US dollar has suffered its steepest decline in years, pushing the pound and euro to multi-year highs. Investors are increasingly nervous about US policy risks, while stronger currencies elsewhere are benefiting from capital flows.

Commodities have responded to the weaker dollar and geopolitical tension. Gold and silver have surged as investors seek safety, while oil remains volatile amid Middle East risks.

What it means for SMEs: Market volatility, currency swings and uneven sector performance all increase uncertainty around customer behaviour and payment reliability.

Equities

• S&P 500: 6,978.6 (record high)
• Nasdaq 100: +0.9% (AI and tech-led gains)
• Dow Jones: 49,003 (flat)
• FTSE 100: 10,175 (-0.3%)
• Hang Seng: +2.6%

Currencies (GBP)

• £ / $: 1.379
• £ / €: 1.15
• £ / ¥: 210

Commodities

• Brent crude: $67.24
• Gold: $5,282/oz
• Silver: $112.96/oz

Insolvency notices

Administrations

• ALLROUNDER CRICKET LTD
• CAUKI LIMITED
• E.J. TAYLOR & SONS LIMITED
• ROADFORM CIVIL ENGINEERING COMPANY LIMITED
• STUDY ACTIVE LEARNING LIMITED

Liquidations

• ACADEMIC CONFERENCES INTERNATIONAL LIMITED
• ARIAN FINANCE LIMITED
• ATH ONLINE LEARNING LTD
• BARRY-WALSH ASSOCIATES LTD
• BLACKJET SOFTWARE LTD
• CARGOMATE TECHNOLOGIES LIMITED
• CAYLUS FINE ART LIMITED
• CORBY TYRES LIMITED
• DAVENPORT STRATEGY LTD
• GEEVEE ENTERPRISES LIMITED
• IDF ADVISORY LTD
• INSPIRED EMPLOYER SOLUTIONS LIMITED
• MAAR TECHNOLOGIES LTD
• MEANDER LIMITED
• MIRRHA LIMITED
• ROWAN VEHICLE LOGISTICS LIMITED
• SILENT MEDIA LIMITED
• TOP MARKS BIDDING LTD
• TYNE & WEAR LGV DRIVER TRAINING CENTRE LIMITED
• VANADIUM CONSULTING LIMITED
• W.G. PARR (INVESTMENTS) LIMITED
• WEBSPHERE SOLUTIONS LIMITED
• YODESKA LIMITED
• Z1NC LTD
• ZEDRIXO CONSULTING LTD

Winding-up petitions

• BLACKAPPLE SOLUTIONS LTD
• CENTRAL MEP LTD
• LANDLORDS RIGHTS LTD
• ORGANIC RESTAURANT MANAGEMENT LTD
• UK KOI SUPPLIES LIMITED

What CPA can do for you

With insolvencies rising and payment behaviour under pressure, early action matters. CPA helps members identify risk sooner, monitor customers, and recover overdue invoices ethically and efficiently, protecting both cash flow and customer relationships.

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.