Business news 29 January 2026
UK and global markets may look resilient on the surface, but beneath the headlines cash flow pressure remains intense. Insolvencies are still running well above pre-pandemic levels, retail failures continue to mount, borrowing costs remain restrictive, and even where AI and markets are booming, confidence in returns is far from universal. For SMEs selling on credit, today’s news reinforces one message: risk hasn’t gone away — it’s just become more uneven and harder to spot.
James Salmon, Operations Director.
Business News
CFOs don’t fully trust AI with the numbers
A new Wakefield Research study shows only 14% of CFOs fully trust AI to deliver accurate accounting data. While 88% of finance leaders now use at least one AI tool, just 40% have fully integrated AI into finance functions, and 97% insist on human oversight.
Why it matters: Poor data leads to poor credit decisions — and when cash is tight, SMEs can’t afford errors in ledgers, invoicing or customer risk assessments.
C-suite leaders cool on AI as cash flow takes priority
The Managing Partners Forum’s Winter 2025 survey shows cash flow is now the top concern for 64% of professional services leaders, while confidence that AI will boost market share has fallen sharply. Disappointment with Labour’s Budget and rising taxes is also denting morale and growth plans.
Why it matters: AI ambition is being trumped by liquidity reality — delayed ROI often translates into tighter spending and slower supplier payments.
Youth unemployment in London hits nine-year high
Unemployment among Londoners aged 16 to 24 has risen to 18.6%, the highest level in nine years. The number of unemployed young people increased by 11,000 over the past year, while employment in this age group fell by more than 4%. Overall unemployment in London has now reached 7.2%, the highest rate in the UK. The data points to a weakening labour market in the capital, particularly for entry-level and service-sector roles. Political leaders have warned that young people are increasingly locked out of stable employment as costs rise and opportunities shrink.
Why it matters: Weaker income among younger consumers feeds directly into slower demand and higher payment risk in retail, hospitality and services.
Insolvency & distress watch
UK insolvencies remain alarmingly high
New figures from R3 show 28,616 insolvencies in 2024, only marginally lower than 2023 and still far above pre-pandemic levels. Construction remains the hardest-hit sector, followed by wholesale, retail, food services and accommodation. Although the pace of increase has slowed, R3 warns that financial pressure across the economy remains intense, with many businesses surviving only by deferring problems rather than resolving them.
Why it matters: Elevated insolvency levels mean supplier losses are becoming a feature of trading, not an exception.
Retail pressure intensifies
- GAME has filed a notice of intention to appoint administrators — its second administration.
- The Original Factory Shop has called in administrators, putting 1,200 jobs at risk.
- LK Bennett has been rescued from administration for the second time in six years.
Why it matters: Brand recognition does not equal payment safety — retail suppliers should assume higher credit risk by default.
Corporate failures spread beyond retail
- Tribe Technology Group, a mining equipment firm backed by public funding, has entered administration after heavy losses.
- Coface warns global corporate insolvencies will rise again in 2026, even if rates ease.
Why it matters: Even modest interest-rate disappointment could reignite insolvency growth, increasing claims and write-offs for suppliers.
Tax, government & regulation
Travelodge warns rising costs are undermining hospitality
Business rates for Travelodge are set to rise from £38m to £50m by 2026, with UK Hospitality warning hotel rates could increase 115% by 2029.
Why it matters: Higher fixed costs often result in renegotiated terms, delayed payments and supplier pressure.
Ground rent cap sparks investor backlash
Labour’s plan to cap leasehold ground rents has prompted warnings from pension funds and insurers, including a potential £230m hit for M&G.
Why it matters: Policy uncertainty can restrict investment, tighten credit conditions and raise funding costs across the economy.
Football watchdog targets debt-fuelled takeovers
The Independent Football Regulator plans to clamp down on leveraged club buyouts.
Why it matters: A broader signal that regulators are becoming more wary of debt-heavy business models — often the first to collapse when cash dries up.
Industry & employment
UK car production slumps to a 70-year low
UK car manufacturing fell to its lowest level since the mid-1950s in 2025, with output down 8% after a cyberattack hit Jaguar Land Rover and US tariffs weighed on exports. Total vehicle production, including commercial vehicles, dropped even further.
Industry body SMMT expects a recovery this year driven by new electric models, but the sector remains exposed to disruption, trade friction and high costs.
Why it matters: Manufacturing supply chains remain exposed to disruption, delayed payments and sudden order cancellations.
AI job losses acknowledged by government
Technology Secretary Liz Kendall has acknowledged that AI adoption will lead to job losses, even as the government plans to retrain up to 10 million people by 2030. Ministers argue new roles will emerge, but accept the transition will be disruptive. The scale of the retraining effort underlines how quickly technology is reshaping the labour market.
Why it matters: Labour disruption and retraining costs add another layer of uncertainty to SME cash flow planning.
Manchester shows what long-term growth looks like
Manchester’s economic revival is being credited to decades of incremental change, including pro-business planning policies, cooperation between local authorities and sustained investment in culture and talent. Flexible planning rules have enabled a major construction boom in the city centre. The city’s success stands in contrast to more fragile regions struggling with stagnation.
Why it matters: Local policy can still unlock demand — but growth is uneven and highly regional.
Markets & global snapshot
- Equities: US markets are flat near record highs, with the S&P 500 briefly topping 7,000. UK and European markets are mixed, reflecting stronger energy and tech but weak consumer and luxury demand.
- Rates: The US Federal Reserve has held rates at 3.5%–3.75%. Cuts may come, but there’s no timetable — borrowing costs remain restrictive.
- Currencies: The dollar is volatile, the euro has surged past $1.20, and sterling remains relatively firm. Currency swings complicate pricing and margins for importers and exporters.
- Commodities: Oil, metals and precious metals have surged. Gold has hit record highs, copper has spiked on speculative demand, and oil prices are climbing on geopolitical tensions.
Equity Markets
United States:
S&P 500: 6,978.03 (flat)
Dow Jones Industrial Average: 49,015.60 (flat)
Nasdaq Composite: 23,857.45 (flat)
Europe:
FTSE 100 (UK): 10,204.60 (+0.49%)
Euro Stoxx 50: 5,958.18 (+0.42%)
CAC 40 (France): 8,117.60 (+0.63%)
DAX (Germany): 24,591.58 (-0.93%)
Asia:
Nikkei 225 (Japan): 53,375.60 (+0.03%)
Hang Seng (Hong Kong): 27,968.09 (+0.51%)
Shanghai Composite (China): 4,157.98 (+0.16%)
ASX 200 (Australia): 8,927.53 (-0.07%)
Major Currency Pairs (24-hour change):
- EUR/USD: 1.1965 (+0.09%)
- GBP/USD: 1.3818 (+0.07%)
- USD/JPY: 153.21 (+0.13%)
- AUD/USD: 0.7065 (+0.34%)
- USD/CAD: 1.353 (+0.20%)
Current Rates vs GBP:
- USD/GBP: 0.7237
- EUR/GBP: 0.8659
- JPY/GBP: 0.4724 (per 100 yen)
- CHF/GBP: 0.9435
- AUD/GBP: 0.5113
- CAD/GBP: 0.5350
Commodities
Energy:
WTI Crude Oil: $64.89/barrel (+2.66%)
Brent Crude Oil: $70.11/barrel (+2.50%)
Natural Gas: $3.793/MMBtu (+1.63%)
Precious Metals:
Gold: $5,526.18/oz (+2.01%)
Silver: $117.55/oz (+3.53%)
Base Metals:
Copper: $13,086.50/ton (+0.62%)
Aluminum: $3,257.00/ton (+1.56%)
Why it matters: Rising input costs and currency volatility are likely to squeeze margins and push more businesses toward delayed payments.
Insolvency notices
Appointments of Administrators
- CLIFFEDGE 10 NEWQUAY LTD
- DENTOGENICS LIMITED
- NAVIGATE PEOPLE LIMITED
Appointments of Liquidators
- 10 FITZROY LIMITED
- AFONDALE LIMITED
- ASHDOWN HURREY (HOLDINGS) LIMITED
- AUS10 DEVELOPMENT LTD
- BLOCKOPS ADVISORY LTD
- CENTUM ENGINEERING CONSULTANTS LIMITED
- COLOURWAYS BY FIONA HEINSON LTD
- CTD PROJECTS LIMITED
- EMJS CONSULTING LTD
- EMPRESS ASSOCIATES LTD
- ENTERPRISE RISK PROFESSIONALS LTD
- FELSTEAD BUSINESS CONSULTING LIMITED
- FEWINGS FARMING LTD
- FIT DIGITAL LIMITED
- HURSTRIDGE CONSULTING LIMITED
- INDALO STRATEGY LIMITED
- KW IT SOLUTIONS LTD
- NEO-SOFT SOLUTIONS LIMITED
- POPELIER CONSULTANCY LTD
- PRIMA PLANNING SOLUTIONS LIMITED
- SANGOSAL LTD
- SIMONS HUTZ LIMITED
- SISKIN CONSULTING LIMITED
- SKANDA ADVISORY LTD
- STEF FUTURES LIMITED
- THE 5TH DIMENSION LTD
- TMDEAN LIMITED
Petitions to Wind Up
- A.L.N. CARPENTRY & JOINERY LTD
- BS INVESTMENTSCO LTD
- DRINKSWORLD LIMITED
- JM BUILDERS (UK) LTD
- LEISURE CLEAN & SUPPORT LTD
- PROWELD FABRICATION (WALES) LIMITED
- S & P STRATEGIES LTD
- SOLID SHEDS NORTH EAST LTD
- SOUTH EAST FENCING SUPPLIERS LIMITED
- SPARKLING WINDOWS LTD
- UK MARQUEE HIRE LIMITED
What CPA can do for you right now
With insolvencies still high, costs rising and payment behaviour becoming more unpredictable, visibility and early action matter more than ever. CPA members use credit intelligence, monitoring and ethical recovery to spot problems early and protect cash flow before debts spiral.
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.