Business news 3 December 2025

A busy day of economic and political movement: inflation pressures persist, business confidence has wobbled after the Budget, and several major policy shifts are causing concern for SMEs. Markets remain steady, supported by miners and US tech strength, while insolvency activity continues to rise across sectors.

James Salmon, Operations Director.

SME-Focused Stories

1. Public sector pension bill hits £5.8tn

Britain’s unfunded public sector pension bill is projected to reach £5.8tn this year — equal to £203,000 per household. Critics warn the system is distorting the labour market and loading costs onto future taxpayers.
Why it matters: Higher long-term tax pressures may squeeze consumer spending and increase employment costs for SMEs.

2. OECD: UK inflation set to be second highest in the G7

The OECD expects UK inflation to remain above target for two years, easing only to 2.5% in 2026. It says rising employment taxes and the higher national living wage are slowing cost disinflation.
Why it matters: Persistently high inflation keeps wage bills elevated and tightens cash flow for firms trading on credit.

3. Trust in Labour plummets after Budget chaos

Only 10% of voters trust Labour to manage the economy — the lowest rating since 2019. The Budget’s tax rises have fuelled concerns over broken promises and weakened confidence in leadership.
Why it matters: Reduced confidence can delay investment and unsettle markets, impacting SME cash flow.

4. Bosses prepare to scale back hiring after the Budget

A CBI survey shows companies expect to freeze recruitment and step up job cuts following Labour’s £26bn package of tax rises and spending cuts.
Why it matters: Hiring freezes and job losses signal softer demand and greater credit risk for SMEs.

5. Eurozone inflation edges up to 2.2%

Eurozone inflation ticked up to 2.2% in November, slightly above expectations. Core inflation remains steady at 2.4%.
Why it matters: Eurozone price trends feed into import costs and influence payment behaviour among European-exposed customers.

6. Shop price inflation eases to 0.6%

UK shop price inflation slowed thanks to discounting, though retailers warn rising wage bills may push prices higher next year.
Why it matters: A brief boost for demand may be followed by renewed price pressure affecting SME margins.

7. Families may face year-long waits for inherited pensions

New rules mean pension providers can retain up to 50% of funds while HMRC checks inheritance tax liabilities. Around 10,500 more households a year could be affected from 2027.
Why it matters: Delays to payouts create uncertainty for business-owning families and could restrict available capital.

8. Rayner pushes for faster rollout of employment rights changes

Angela Rayner wants quicker implementation of new unfair dismissal rules after Labour agreed to a six-month qualifying period instead of day-one rights.
Why it matters: Shorter qualifying periods increase HR risk and potential legal exposure for small employers.

9. Housing market remains resilient despite mansion tax

House prices rose 0.3% in November. Nationwide says fewer than 1% of properties will be affected by the mansion tax.
Why it matters: A stable housing market supports consumer confidence and spending — vital for SMEs offering credit.

10. Cyber-attacks now seen as top threat to UK financial stability

The Bank of England says cyber risk has risen faster than any other threat since the financial crisis, driven by geopolitical tensions and AI advances.
Why it matters: SMEs are frequent cyber-targets and disruptions can delay payments or lock up financial systems.

11. FCA launches tool to counter hype-driven investing

The FCA’s new “hype type revealer” helps investors understand how hype influences decisions.
Why it matters: More informed investing supports market stability, benefitting SMEs reliant on predictable credit conditions.

12. OpenAI declares “code red” as rivals advance

Sam Altman has paused other initiatives to improve ChatGPT urgently after Google’s Gemini 3 surpassed OpenAI on key benchmarks.
Why it matters: Faster AI innovation could lead to cheaper and better tools for SME credit control and automation.

13. Amazon launches Trainium3 to challenge Nvidia and Google

AWS claims its new AI chip can run large models more cheaply than Nvidia GPUs, though software support still lags.
Why it matters: More AI hardware competition may cut costs and improve access for SMEs using AI to manage cash flow and credit risk.

Market Snapshot

Global equity markets were broadly firm, with investors balancing hopes of interest rate cuts against caution over valuations. In the US, the S&P 500 rose for the sixth time in seven sessions and is now within 1% of its October record high. The Nasdaq gained 0.6%, lifted by strength in semiconductor stocks such as Intel, while the Dow also advanced. Boeing surged 10% after signalling a return to positive cash generation, adding momentum to the industrials sector.

In the UK, the FTSE 100 climbed 0.4% to 9,741.14 by midday. Banks helped support the index, while London-listed miners were among the biggest early risers on Wednesday, buoyed by firmer gold prices and expectations of a potential US interest rate cut in coming months. Fresnillo and Endeavour Mining both advanced around 1.6%. Smiths Group led gains on the index after announcing plans to sell its airport security sensors unit, with shares rising nearly 5%.

European markets were mildly constructive, with Asian trading overnight staying range-bound and European futures pointing to a slightly positive open. Sentiment was underpinned by stabilising inflation trends in the Eurozone and expectations that central banks globally are nearing the end of their tightening cycles.

Currency markets continued to show pressure on the pound. Sterling has been under strain for four straight sessions, staying below its 200-day moving average. GBP/USD briefly reclaimed the 1.32 level as expectations of US rate cuts weakened the dollar, but technical indicators such as a recent death-cross signal suggest potential for further downward movement. Against the euro, sterling weakened after stronger-than-expected Eurozone inflation data supported the single currency while rate-cut expectations weighed on the pound.

Commodities were mixed. Oil prices edged higher after early volatility, with Brent crude up 0.5% at $62.74 per barrel and WTI up 0.6% at $58.97. Traders continue to monitor developments in Russia–Ukraine peace discussions and broader geopolitical risk. Gold futures rose 0.35% to $4,235.60 a troy ounce, extending support to mining stocks. Copper prices resumed gains and remain close to record highs amid global supply constraints and rising demand linked to the green transition. Aluminium markets saw renewed attention after BNP Paribas forecast prices could rise to $4,000 per tonne by 2027 due to potential smelter closures and capped Chinese output.

Investor sentiment remains cautious ahead of a series of US economic releases later this week. While rich equity valuations and interest rate uncertainties continue to weigh on some sectors, overall market resilience remains notable. Bitcoin also bounced back from Monday’s sell-off, adding to the broader risk-on tone.

Insolvency Notices

Winding-Up Petitions (Companies)

  • DUA LDN LTD
  • MILLROYD ISLAND MANAGEMENT COMPANY LIMITED
  • NORTHERN RESIN DRIVEWAYS LTD
  • RIPPON HOMES LTD
  • SPECIALIST HAULAGE HIRE LTD
  • TAZA BAKE LTD

Appointments of Administrators

  • ANGOLO A SUD (UK) LIMITED
  • ARINIUM LIMITED
  • F4CONTROL LIMITED
  • GLOW INSULATION & SITE SUPPLIES LIMITED
  • KANABO GROUP PLC
  • NATIONAL TIMBER GROUP ENGLAND LIMITED
  • NATIONAL TIMBER GROUP MIDCO LIMITED
  • NATIONAL TIMBER GROUP SCOTLAND LIMITED
  • NORTHROW LIMITED
  • SARDINA SYSTEMS LTD
  • SCOTIA ROOFING & BUILDING SUPPLIES LTD.
  • STONEGATE HOMES (HOVE 2) LIMITED
  • STONEGATE HOMES (HOVE) LIMITED
  • VIROCELL BIOLOGICS LTD

Appointments of Liquidators

  • ALTATERRA GROUP LIMITED
  • BAMBOO FUNDING LIMITED
  • BAXTER SOLUTIONS LTD
  • BIOTECH BUSINESS LIMITED
  • BLACKWELL SYSTEMS LIMITED
  • BORRELLI CAPITAL LIMITED
  • CITYCHANCE LIMITED
  • CONKAT PROPERTIES LIMITED
  • DE TURNHAM & MAYO INVESTMENTS LIMITED
  • DIVERGENCE TECH LTD
  • EMBRYONICS LTD
  • HAGEMANN LIMITED
  • INTERNATIONAL POWER LUXEMBOURG FINANCE LIMITED
  • INTERNATIONAL POWER LUXEMBOURG HOLDINGS LIMITED
  • J5C MANAGEMENT LIMITED
  • L.R. STACEY & CO. LIMITED
  • MS MODERNISATION SERVICES UK, LTD.
  • MY ADVISORY LIMITED
  • OLIVER U. TALLETT (HOLDINGS) LIMITED
  • PSP48 LTD
  • REDHOUSE PROJECTS LIMITED
  • RMOR ADVISORY LTD.
  • ROUND SIX LTD
  • SB ACTUARIAL SERVICES LIMITED
  • SERVICE REACH LIMITED
  • SKYFARM LEEDS LIMITED
  • SOLEIL PROPERTY DEVELOPMENTS LTD
  • STACE IT LTD
  • T SHAWAF LIMITED
  • TANNENBAY PEMBROOKE INVESTMENTS LTD
  • TRURO FARM MACHINERY LIMITED
  • WPSL 2009 LIMITED

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