Business news 28 November 2025
A wave of Budget analysis, market warnings and political reaction paints a challenging picture for small businesses. Tax rises, employment-law changes and a gloomy consumer outlook are tightening pressure on households and employers alike. For SMEs trading on credit, that means one thing: late-payment risk is rising sharply.
James Salmon, Operations Director.
SME-focused and Employment News
Workers’ rights U-turn: unfair dismissal protection after six months, not day one
The Government has backed away from its manifesto pledge to give workers protection from unfair dismissal from the first day of employment. After strong pushback from business groups and repeated amendments in the House of Lords, ministers now plan to introduce unfair dismissal rights only after six months.
Day-one rights to sick pay and paternity leave will still go ahead from April 2026. The proposed nine-month legal probation period has been dropped, and a new Fair Work Agency will launch in 2026.
Business groups welcomed the move as pragmatic. Some unions and Labour MPs, however, described it as a retreat from a central election promise.
Why it matters for SMEs: It reduces immediate tribunal exposure for employers, but a shorter six-month qualifying period still increases HR complexity and potential legal costs — which ultimately affect cash flow.
Budget squeeze on Britain’s professional middle classes
New analysis shows the Budget hits upwardly mobile professionals particularly hard.
• The top 20% of households will lose more than £1,000 a year by the end of the decade.
• The top 5% will lose over £2,000.
• Almost one million more people will be pulled into the 40% or 45% tax bands because thresholds remain frozen.
This group spans finance, law, tech, healthcare and other high-value service sectors — often the core customers for SMEs selling specialist goods or services.
Why it matters for SMEs: Higher-earning customers tightening their personal budgets will cut discretionary spending and negotiate harder on price and payment terms.
Public reaction: most voters say the Budget is unfair
A YouGov survey shows a sharply negative public response:
• Voters saw the Budget as unfair rather than fair by 48% to 21%.
• Half believe they and their families will be worse off.
• Two-thirds expect the economy to worsen in the next 12 months.
• Tax rises on workers and expanded family benefits were seen by most as the wrong move in the current climate.
Why it matters for SMEs: When consumers expect the economy to decline, they delay purchases, shop more cautiously and pay invoices more slowly. A pessimistic public is a slow-paying public.
Tax and Government
Income tax threshold freeze hits workers and pensioners
Two leading think tanks say the freeze on tax thresholds until 2031 is a major stealth tax on working households. The Resolution Foundation estimates 1.7 million people will be pulled into paying tax or into higher bands. The OBR forecasts higher-rate taxpayers rising from 7.2 million to 8.9 million, and additional-rate taxpayers from 1.2 million to 1.6 million.
Pensioners also face the same squeeze. The State Pension will rise to £12,548 in 2026, placing millions just a fraction below the frozen tax threshold.
Why it matters for SMEs: As more customers lose disposable income to tax drag, the likelihood of delayed or missed customer payments rises.
Inheritance tax: farmers get a major boost
From April 2026, farming families will be able to pass on up to £3 million tax-free, thanks to expanded agricultural property relief and transferable allowances between spouses. The Treasury says the change simplifies and modernises agricultural estate planning.
Why it matters for SMEs: Stronger succession planning stabilises rural businesses, making them more reliable credit customers.
Cap on IHT for former non-doms
A new £5 million inheritance tax cap applies to offshore trusts established before the end of non-dom status. Some economists warn it is an expensive giveaway; government sources say it keeps wealthy individuals in the UK.
Why it matters for SMEs: Minimal direct impact, but highlights the shift in tax burden onto mainstream earners and businesses.
Digital Services Tax to continue and expand
The Government will retain the 2% Digital Services Tax on multinational tech giants. Revenue is expected to double by 2030. Officials acknowledge some of the cost may have been passed on to consumers and business customers.
Why it matters for SMEs: Higher platform fees for advertising, marketplaces or cloud services ultimately squeeze SME margins.
Economy and Living Standards
IFS warns of “truly dismal” living standards outlook
The Institute for Fiscal Studies expects average household disposable incomes to grow just 0.5% per year over the next five years — far below historical norms. Analysts say the Budget’s tax measures will not meaningfully shift growth prospects.
Why it matters for SMEs: Weak income growth means weak demand. Customers will trade down, delay purchases and stretch invoice payments.
Economists unconvinced UK is on a sustainable fiscal path
Experts warn the UK remains fiscally fragile despite Budget measures. Former Bank of England adviser Michael Saunders highlights low potential growth and long-term tax pressures.
Why it matters for SMEs: Uncertainty leads to more cautious spending and longer payment cycles across the supply chain.
Hedge fund warning: rising UK taxes could weaken the pound
Hedge fund manager Stephen Jen expects sterling to depreciate against the euro, yen and Swiss franc. He argues the UK is nearing a tipping point where tax hikes no longer raise revenue, referencing the Laffer Curve. He warns repeated tax-heavy budgets could trigger a non-linear market reaction if high earners and businesses relocate.
Why it matters for SMEs: A weaker pound increases import costs and squeezes margins — and nervous markets slow customer spending and payment reliability.
Sector and Market News
Retail: delay to ending low-value import loophole
The Government will not scrap the £135 de minimis import threshold until 2029. UK retailers say this continues to give overseas platforms like Temu and Shein an unfair advantage.
Why it matters for SMEs: Margins in retail supply chains remain under intense pressure, raising credit risk for suppliers.
Black Friday spending set to reach £3.4 billion
Despite softer enthusiasm, spending is forecast to rise 1.5% across the period, with average spend per person rising 13%.
Why it matters for SMEs: Short-term retail uplift may be financed with consumer credit — often leading to weaker payments in January and February.
Travelodge warns of rising wage and NI costs
Travelodge expects an £11 million rise in staff costs by 2026, driven by the minimum wage rise, National Insurance changes and potential visitor levies.
Why it matters for SMEs: Smaller hospitality operators will experience even more acute margin pressure, often resulting in late supplier payments.
Housing: southern prices dip while UK edges up
Zoopla shows prices fell slightly year-on-year across London, the South East and South West, though the UK overall saw a 1.3% rise. Buyer demand is down 12%.
Why it matters for SMEs: Construction, trades and property-linked firms may see patchier workloads and greater demand for extended credit.
Mansion tax to hit prime London homes
One in four affected properties are in Kensington & Chelsea, Westminster and Camden. Analysts expect property values to adjust downward to reflect the tax.
Why it matters for SMEs: High-end refurbishment, consultancy and contracting work may soften — with more pressure on payment terms.
Market Snapshot – Last 24 Hours
Global markets were steady to positive over the past day, with UK equities holding firm, Europe inching higher, and US futures stabilising after the Thanksgiving break. Commodity prices moved in mixed fashion, and the pound slipped slightly following Budget-related volatility.
UK Equity Markets
The FTSE 100 opened 0.2% higher on Friday after finishing Thursday essentially flat. Even so, the index has risen for three consecutive sessions and is up 1.67% over the past three days. Gains in energy and mining stocks continue to support the market as investors digest Wednesday’s Budget.
Notable stock moves:
• Whitbread dropped 5.4% after a double-downgrade at Bernstein.
• Lloyds Banking Group rose 3% on Thursday, contributing most to FTSE gains.
• Persimmon led major gainers with a 3.1% rise.
• Close Brothers surged 6%, its best performance in over four months.
European Equity Markets
European shares were steady in early Friday trading as the Stoxx Europe 600 hovered around flat, heading for a fifth straight monthly gain. Energy stocks outperformed while banks lagged.
Big movers included Puma, which jumped 19% on Thursday on takeover interest reports, and Allfunds, up 22% after attracting interest from Deutsche Boerse. Delivery Hero gained nearly 7% on Friday morning.
North American Equity Markets
US markets were closed on Thursday for Thanksgiving and will reopen for a shorter session today. On Wednesday, all major indices moved higher:
• Dow Jones up 0.65%
• S&P 500 up 0.7%
• Nasdaq up 0.8%
Trading mid-week was disrupted by a CME technical outage that halted futures and options activity globally for several hours.
In Asia, markets were stronger, led by Japan where SoftBank rebounded sharply. Chipmakers Advantest and Tokyo Electron both rose more than 3%–4%.
Commodities
Oil: Prices were slightly higher. WTI traded at $59.08 and Brent at $62.72. Despite the bounce, oil remains on track for its longest streak of monthly losses in over two years.
Gold: Gold continues to climb, with futures at $4,187 and spot prices above $4,150. Banks expect fresh all-time highs next year, with some forecasting levels above $4,900 in 2026.
Copper: Copper futures eased to $5.06 per pound. Prices remain supported by expectations of a December Fed rate cut and tight supply conditions.
Currencies
Sterling: The pound slipped to $1.3219 but remains comfortably above 1.32, supported by stabilisation after Budget-driven volatility. It also held firm against the euro.
Dollar: The dollar strengthened slightly after month-end flows, with the Bloomberg Dollar Spot Index up 0.1%. USD/JPY traded around 156.31.
Yen: The yen firmed modestly against most G-10 currencies after Tokyo inflation data strengthened expectations of a Bank of Japan rate rise.
Key Market Themes
• Markets remain driven by rising confidence in a Federal Reserve rate cut in December.
• Investors continue assessing the UK Budget, with broad sentiment that the measures steadied rather than spooked markets.
• Trading volumes are light due to the US Thanksgiving holiday, tempering volatility across asset classes.
Insolvency Round-Up
Petitions to wind up (companies)
- ABBOTT LEGAL LIMITED
- AFENDI WORLD LIMITED
- ALL DAY RECRUITMENT LIMITED
- ARCHVIEW SCAFFOLD SOLUTIONS LTD
- BATH STONEMASONS LIMITED
- BELLS MARKETING LIMITED
- BRACKENHILL DEVELOPMENTS LIMITED
- CAP SOLAR PARTNERS LIMITED
- CLOONEY MEATS LTD
- ELEMENT FLOORING SUPPLIES LTD
- GALI (LONDON) LIMITED
- GERS PAVING UK LIMITED
- GNCARESERVICES LTD
- GO HANDY LIMITED
- GODDARDS BREWERY LIMITED
- GRA (GB) LIMITED
- GRANTROW LIMITED
- GRIFF SERVICES LTD
- GREENMAPLE LTD
- GULF CONFERENCES LTD
- IQ CONTRACTS LTD
- JMC CARE SOLUTIONS LIMITED
- KT RECORDS LIMITED
- LABL LTD
- LEMON TOP HOMES LTD
- LET US PROTECT LIMITED
- MANAGE CONSULT LTD
- MANAWEY DEVELOPMENTS LIMITED
- MET ASSOCIATES LIMITED
- METRO INNS (TEESSIDE) LIMITED
- MK ONLINE COACHING LTD
- MOON DEVELOPMENTS LIMITED
- NH TAKEAWAY LTD
- NOBLERAY LIMITED
- NO. 4 VICTORIA LTD
- NURV GROUP LIMITED
- OK SUPPORT SERVICES LTD
- OSCAR-ONSITE LTD
- PM REWARDS LIMITED
- PUNCH BOWL HULL LTD
- QUIVER DELIVERY LTD
- RANDALLS LIMITED
- RESSI LTD
- RIVERSIDE FAYRE LTD
- ROTAWI LTD
- SARJOEMC LIMITED
- SHOWMED LIMITED
- SMART PAY SERVICES LIMITED
- SMART PAY SOLUTIONS LTD
- STONES GROUP BATH LTD
- STRATACORE INVESTMENTS LIMITED
- TATENDA UZANDE CONSULTING LTD
- TATKO UK LIMITED
- TECHNICAL COLOUR LIMITED
- THE JMB PARTNERSHIP DIGITAL LIMITED
- UK DEMOLITION AND CONSTRUCTION LTD
- UMBRELLA LINK LTD
- UNIQON CONSULTING LIMITED
- VANTUNES LTD
- VIKEL LTD
- W R D (ESSEX) LTD
- WATERMAN FINANCE LIMITED
- WORTON UTILITIES LTD
- YOB CUSTOMS LIMITED
Appointments of administrators
- CLEAN TECH EVENTS LTD
- GLOBAVISTA LTD
- JNFX LIMITED
- PASCOE HOMES (LEEDS) LTD
- RATTAN DIRECT LTD
- ST ANDREWS BREWERS LIMITED
- VISIONS EVENT SOLUTIONS LTD
Appointments of liquidators
- ACOTA LIMITED
- ALLAN MOFFAT FORESTRY LIMITED
- AMANAH EXECUTIVE SERVICES LTD
- BELLMAN ORTHODONTICS LTD
- BENJAMIN SAMUEL TAYLOR LIMITED
- BONNIE 1 LIMITED
- CAMBRIDGE RISK LIMITED
- CORRIE PROPERTIES LIMITED
- CRYSTAL CLEAR FINANCIAL GUIDANCE LIMITED
- DEADLINE PROPERTY HOLDINGS LIMITED
- FERNCROFT LIMITED
- GCF MEDICAL SERVICES LTD
- JHSC CONSULTANCY LIMITED
- LORAP LIMITED
- LVB DENTAL LTD
- MACKAY HALL WEALTH LTD
- MAKOWSKI ASSOCIATES LIMITED
- MCCARTHY (U.K.) LIMITED
- MCR HOLDINGS CONTRACTS LIMITED
- RDP ARCHITECTS LIMITED
- REFRIGERANT SOLUTIONS HOLDINGS LIMITED
- RON CAMPION FURNISHERS LIMITED
- ROTHBURY AND ASSOCIATES LTD
- SCOTT CONSULTING SERVICES LTD
- SEAN DONNELLY LTD
- SILVERFLEET CAPITAL LIMITED
- ST MICHAEL’S VICARAGE LIMITED
- THOMAS R CALLAN LTD
- TICKING SMP LIMITED
Have CPA in your corner
When tax burdens rise, employment rules tighten and consumer confidence drops, the late-payment problem always gets worse. One customer delaying payment can wipe out a month’s margin.
As a CPA member, you gain structured support for chasing overdue accounts and escalating recovery efficiently and professionally.
If any names in today’s insolvency list concern you, or if you’d like to strengthen your credit control before pressures intensify, speak to CPA today. 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.