Business news 28 October 2025

The Chancellor signalled tougher fiscal choices ahead as markets rallied and retail sales faltered. With income-tax fears rising, business-rate hikes looming, and household budgets stretched by record rents, confidence among SMEs remains fragile. Meanwhile, easing shop prices and falling food costs offered some relief, but the surge in insolvencies underlines growing strain on firms trading on credit.

James Salmon, Operations Director.

📰 UK Business News

1. Reeves ‘looking at tax and spending’ ahead of Budget

Chancellor Rachel Reeves says tax rises and spending cuts are being considered to build fiscal headroom and maintain stability, despite previous pledges not to raise income tax, VAT, or NI.
Why it matters: Fiscal tightening could slow spending and make customers slower to pay SMEs.

2. Brits fear income tax hike as Budget nears

A Hargreaves Lansdown survey shows income tax rises are the public’s biggest Budget concern, especially among higher-rate taxpayers.
Why it matters: Reduced disposable income could delay payments to SMEs selling on credit.

3. Chancellor warned over mansion tax

Former IFS director Paul Johnson warns a 1% mansion tax would barely dent the deficit and urges council tax reform instead.
Why it matters: Property tax shifts can affect demand and delay client payments in housing-linked sectors.

4. Business rates raid threatens 120,000 jobs

The BRC and UK Hospitality warn a £1.7bn rise in business rates could cost 120,000 jobs and force closures.
Why it matters: Big retail clients under pressure may extend payment terms to smaller suppliers.

5. HMRC demands may prompt overpayments

Duplicate “simple assessment” tax demands have left thousands at risk of overpaying, amid rising confusion at HMRC.
Why it matters: HMRC errors can disrupt client cash flow, affecting SME payments.

6. FCA plans to speed up IPOs

The FCA aims to cut IPO timelines by up to a week to revive London’s listing market.
Why it matters: A livelier IPO market can improve investor confidence and SME funding access.

7. Creative industries face rent crisis

Design District warns creative firms face rents up 33% since 2019, pricing many out of London.
Why it matters: Rising workspace costs tighten margins and increase credit risk.

8. House sales stall

Zoopla reports property sales down 3% year-on-year, the first fall in two years.
Why it matters: A cooling housing market slows cash flow for SMEs in property services.

9. Rents soar to record highs

Rightmove says average UK rents hit record levels, with London at £2,736 a month.
Why it matters: High rents squeeze household budgets, risking late SME payments.

Female high-earner numbers jump 12% to 284k

Female top-rate taxpayers rose 12% to 284,000, now 26% of high earners, per Bowmore Wealth Group.
Why it matters: Higher female earnings boost consumer spending and credit stability.

10. Think-tank urges worker rights rethink

The Resolution Foundation warns Labour’s day-one dismissal rights plan could deter hiring.
Why it matters: Hiring caution and wage hikes may slow supplier payments.

11.Petrofac files for administration

Oil contractor Petrofac enters administration, putting 2,000 jobs at risk after a key contract loss.
Why it matters: Major insolvencies increase credit exposure across supply chains.

12. Wednesday could score new owners by year-end

Sheffield Wednesday administrators say four or five credible bidders could buy the club by year-end.
Why it matters: A sale could free up payments to local suppliers and contractors.

13. Retail sales face steep decline

The CBI expects retail sales to plunge from -29% to -39% before November’s Budget.
Why it matters: Slower sales mean later payments to SMEs supplying retailers.

14. MPs warn National Wealth Fund too small to boost growth

MPs say Rachel Reeves’ National Wealth Fund is too small to match European rivals and spur growth.
Why it matters: Limited investment support may restrict SME funding options.

📊 15. Market Snapshot

Equities:
The FTSE 100 hit a record close of 9,653.82, up 0.1%. US markets surged, with the S&P 500 up 1.2% and the Nasdaq 1.8% on optimism around US-China trade talks. In Europe, the Stoxx 600 slipped from record highs as basic resources declined but utilities outperformed.

Commodities:
Brent crude fell for a third day below $65 a barrel on oversupply concerns. Gold rebounded above $4,000 after ETF outflows eased, while copper retreated as traders awaited US-China trade updates.

Currencies:
The dollar weakened ahead of the Fed’s expected rate cut. Sterling rose 0.17% to $1.3335, snapping a six-day losing streak, and the euro gained for a fifth straight session.

Overall:
Markets are buoyed by record equity gains and weaker dollar sentiment, while oil and metals drift lower on trade uncertainty.

📦 Sector Highlights

16. Shop price inflation goes into reverse

The BRC-NIQ index shows retail prices fell 1.0% in October, reversing September’s rise.
Why it matters: Softer prices support demand and improve payment flows to SMEs.

17. Food bills fall at fastest pace in five years

UK food prices dropped 0.4% month-on-month, led by cheaper sugar and confectionery.
Why it matters: Lower food costs ease consumer pressure, helping on-time payments.

18. European car sales rise for third month

EU new car sales jumped 11% in September, with UK up 14%.
Why it matters: Stronger auto demand signals improving confidence in manufacturing.

📦 CPA Insight

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⚖️ Insolvencies Update

Petitions to Wind Up (Companies)

  • ACACIA TRAINING AND DEVELOPMENT LTD
  • COOEE LTD
  • G.O.N CLEANING SERVICES LIMITED
  • HIGHAM’S PLUMBING & ELECTRICAL LTD
  • JOHN HAGAN LTD
  • SOUNDS TRAVEL LTD

Appointments of Administrators

  • BISTRO L!VE LIMITED
  • CHAFER MACHINERY LIMITED
  • GLACIER ENERGY MANUFACTURING LIMITED
  • JJU SOLUTIONS LIMITED
  • VENATOR MATERIALS UK LIMITED

Appointments of Liquidators

  • A1 PRESS LTD
  • BLU-J LTD
  • BOAR SLAYER ENTERPRIZES LIMITED
  • BROADWOOD ANALYTICS LTD
  • BROOKSON (5784K) LIMITED
  • CASTLEBANK FINANCIAL PLANNING LTD
  • CHASE PARTNERS LIMITED
  • COLVIN ASSURED LEASING LIMITED
  • COLVIN ASSURED LIMITED
  • DUEDIL LIMITED
  • GI DEVELOPMENT CONSULTING LTD
  • GREY WOLF GROUP LTD
  • GRESHAM (SMS) LTD
  • HIGHSTYLE DESIGN UPHOLSTERY LIMITED
  • HOLLINS PROPERTY (CHESHIRE) LIMITED
  • HOTEL DYNAMICS LTD
  • KIRKBY HYDROPONICS LTD
  • PROMONTORIA (VANTAGE) LIMITED
  • ROBERT ROCK GOLF PROFESSIONAL LIMITED
  • SAFESTORE TRADING LIMITED
  • SDT CONSULTING SERVICES LTD
  • SMART COMMUNICATIONS TECHNOLOGIES LTD
  • SOPHOS HEALTHCARE CONSULTING LTD
  • SPEAR IT CONSULTANTS LTD
  • SAKAI KUWAHARA MOVING SERVICE UK LTD.
  • THE CORNISH CORNISH PASTY COMPANY LTD
  • THE DAVID HUNT FOUNDATION
  • XT DATA SYSTEMS LIMITED