Business news 30 December 2025
The UK ends 2025 on a fragile footing, with consumer spending falling, business investment at a G7 low, and household confidence weakening after repeated tax rises. While markets remain resilient and investors are positioning for further gains in 2026, insolvency risk across the real economy remains elevated, particularly for businesses exposed to discretionary spending and delayed payments. For SMEs trading on credit, the message remains mixed: optimism in markets, caution on the ground.
James Salmon, Operations Director.
SME & Economy-Focused Stories
Household spending slumps after repeated tax rises
Household spending fell by 0.2% in 2025, the first annual decline since the pandemic, according to Barclays data. Families are cutting back even on essentials such as groceries as higher National Insurance contributions and other tax rises squeeze disposable incomes. Growth slowed sharply from last year’s 1.6% increase, although pharmacy, health and beauty spending rose 9.5%, highlighting a “lipstick effect” where consumers prioritise small indulgences over big-ticket items. A separate KPMG survey found two-thirds of Britons believe the economy is worsening, reinforcing a defensive mindset among consumers despite Treasury claims that real wages are rising.
Why it matters: Weaker household spending increases late payments and bad debt risk for SMEs reliant on consumer demand.
UK investment slumps to lowest in the G7
Business investment fell to just 18.6% of GDP in the three months to September, the lowest level among G7 nations. Economists cite prolonged policy uncertainty and a complex planning system as major deterrents to long-term investment, with Germany now investing at a higher rate than the UK.
Why it matters: Low investment weakens growth prospects and increases insolvency risk across supply chains.
Corporate insolvencies ease ahead of Christmas — but remain high
Official figures show UK corporate insolvencies fell 8% in November to 1,866 cases. While easing inflation and lower interest rates may offer some short-term relief, insolvency levels remain well above pre-pandemic norms, and unemployment has risen to 5.1%.
Why it matters: A modest dip in insolvencies does not remove the need for strong credit control as business failures remain historically elevated.
Leon fast food chain shuts sites after entering administration
Leon has closed around 20 restaurants after entering administration earlier this month, citing annual losses of roughly £10m and a heavy tax burden. The company is working with Quantuma to restructure and hopes to redeploy staff where possible as it exits unprofitable locations.
Why it matters: Even well-known brands can fail quickly, leaving unsecured suppliers exposed to losses.
Tax, HMRC & Compliance
HMRC clarifies online selling tax rules
HMRC has confirmed that losses from selling personal belongings online cannot be offset against income tax. Capital gains tax applies only to items worth over £6,000, with losses offsetting gains rather than income, clarifying confusion among casual sellers.
Why it matters: Misunderstanding tax rules can create unexpected liabilities that disrupt cashflow for small traders.
Over 4,600 file tax returns on Christmas Day
More than 37,000 people filed self-assessment returns between Christmas Eve and Boxing Day, with HMRC urging others not to leave filing until the 31 January deadline. The department also warned of a rise in phishing scams targeting taxpayers.
Why it matters: Late or incorrect filings can quickly turn into enforcement action and payment pressure.
Rob Cross banned as director over unpaid tax
Former darts world champion Rob Cross has been disqualified as a director for five years after his company failed with over £450,000 owed to HMRC. Investigators found funds intended for creditors had been withdrawn before liquidation.
Why it matters: Director misconduct increases scrutiny on small companies and reinforces the need for transparent financial controls.
Employment, Pensions & Regulation
ACCA scraps remote exams amid cheating concerns
The ACCA will require exams to be sat in person from March, citing increasingly sophisticated cheating methods. Regulators say exam fraud has been widespread across professional services firms, prompting a shift away from remote invigilation.
Why it matters: Higher compliance and training standards raise costs for firms already under financial pressure.
Pension salary sacrifice cap sparks concern
A new £2,000 annual cap on tax-free salary sacrifice pension contributions will affect over 3.3m workers from 2029. Critics warn it could discourage saving and increase payroll complexity for employers.
Why it matters: Changes to pension rules can increase employment costs and administrative burdens for SMEs.
Markets, Investment & Confidence
Investors plan to boost portfolios in 2026
A Scottish Widows survey found 62% of UK investors with assets above £100,000 plan to increase investments next year, despite geopolitical and economic concerns. Regulators hope targeted support will encourage better long-term decision-making.
Why it matters: Investor optimism contrasts with weaker trading conditions faced by many SMEs.
US markets tipped for fourth straight year of gains
Despite concerns over inflation, unemployment and geopolitics, Wall Street strategists expect US equities to rise again in 2026. The S&P 500 has gained roughly 90% since late 2022, fuelling confidence among investors.
Why it matters: Strong equity markets do not always translate into better payment behaviour in the real economy.
Technology & AI
Meta buys AI startup as spending accelerates
Meta has acquired AI startup Manus as part of its aggressive push toward “personal superintelligence”. The technology will be commercialised across Meta’s platforms, reinforcing its growing investment in AI infrastructure.
Why it matters: Rapid AI adoption may widen the gap between well-funded firms and smaller suppliers.
Microsoft warns AI risks could spiral
Microsoft AI chief Mustafa Suleyman warned that AI could become uncontrollable without regulation, predicting exponential advances over the next five years. Bill Gates also called for higher taxation of those controlling powerful AI systems.
Why it matters: Regulatory uncertainty around AI could reshape costs, compliance and competitive dynamics for SMEs.
Housing & Consumers
Stockbroker belt house prices fall most
House prices in parts of London and the South East fell sharply in 2025, with Crawley and High Wycombe seeing declines of over £35,000. Northern regions and Scotland recorded much stronger growth.
Why it matters: Falling house prices can restrict consumer borrowing and spending, affecting payment reliability.
Politics & Public Spending
Labour faces £800bn defence funding gap
A report warns Labour could fall £800bn short of defence commitments by 2040, raising questions about future tax rises or spending cuts. The Government has yet to outline how it will fund planned defence projects.
Why it matters: Uncertainty over public finances increases the risk of future tax changes impacting SMEs.
Farmers still angry after inheritance tax U-turn
Despite raising the inheritance tax relief threshold for farms, the Government has declined to apologise for months of distress caused by the proposals. Industry groups say prolonged uncertainty has damaged trust.
Why it matters: Policy uncertainty undermines confidence and investment decisions across rural supply chains.
Market Snapshot
Markets were quiet but volatile in holiday-thinned trading on Monday, with equities drifting lower, commodities seeing sharp swings, and sterling holding firm.
In the UK, the FTSE 100 slipped 4.15 points to 9,866.53, with investors largely sitting on their hands ahead of year-end. In the US, technology stocks weighed on sentiment: the S&P 500 fell 0.3% and the Nasdaq dropped 0.5%, dragged lower by declines in Tesla, Nvidia and other large-cap tech names. European markets were little changed, with the Euro Stoxx 50 flat as trading resumed after the Christmas break. Despite the muted session, full-year performance remains strong, with the FTSE 100 up more than 21% in 2025 and the Nasdaq up over 20%.
Commodities were the standout for volatility. Gold briefly touched a fresh record above $4,550 an ounce before plunging as much as 5%, its biggest intraday fall since October, as traders locked in profits. Silver suffered an even sharper drop, falling around 11%, its worst one-day decline since the Covid period. Thin liquidity amplified the moves, while higher margin requirements imposed by CME Group added to the sell-off. By contrast, oil prices rose, with WTI crude settling at $58.08 a barrel and Brent at $61.94, supported by ongoing geopolitical uncertainty after inconclusive talks between Donald Trump and Ukraine’s president.
In industrial metals, copper surged to a record near $13,000 a tonne on the London Metal Exchange, jumping more than 6% at one point as concerns grew over tight global supply.
In currency markets, sterling edged higher against the dollar, rising 0.16% to $1.3514, supported by expectations that UK interest rates may stay higher for longer than in the US. Against the euro, the pound was slightly weaker at 87.31p per euro. The US dollar was broadly flat on the day and is on track to be the weakest major currency of 2025, while the euro is heading for its strongest annual performance since 2017.
Insolvency Notices
Administrations
- CENTREX COMPUTING SERVICES LIMITED
- EML ELECTRICAL CONTRACTORS LIMITED
- FIRST ELEMENT LTD
- LANDSCOVE HOMES LLP
- MOTHERCLUB LIMITED
- PLASTO-SAC UK LIMITED
- SIXES CRICKET LIMITED
Liquidations
- 13 STRIDES LIMITED
- BALLYKELLY COMMERCIAL SERVICES LIMITED
- BARBARA PIERCEY LIMITED
- BNY TY NOMINEES LIMITED
- CHALCRAFT DEVELOPMENTS LIMITED
- CHESHUNT GROUP LIMITED
- CLARKS GARAGE LIMITED
- COMPLETE NETWORK SERVICES LTD
- CRAY FASHIONS
- ELM LODGE CARE HOME LTD
- EPTON SURVEY LTD
- HAPPY HEARTS DAY NURSERY LTD
- KYLES ACTUARIAL CONSULTING LTD
- LANDFORM BERSTED LIMITED
- LANDFORM NORWICH LIMITED
- LIDDELL ENGINEERING LTD
- MACROCOM (1018) LIMITED
- MAGNAPARK PROPERTIES LIMITED
- NEWBATTLE TERRACE LIMITED
- OPTA SPORTS DATA LIMITED
- PACHIRA CAPITAL LTD
- QUINN CORPORATE SERVICES LIMITED
- REDHOUSE HOLDINGS LIMITED
- ROMANES LIMITED
- SIA DEMERGED LTD
- SMBC ASSET MANAGEMENT SERVICES (UK) LIMITED
- STATS SPORTS GROUP LIMITED
- STATS SPORTS LIMITED
- STEMBROOK CONSULTING LIMITED
- UK T-POWER MANAGEMENT LIMITED
- WEST CAMUS DATA SYSTEMS LTD
- WHITE NORTH CONSULTING LTD
- XPE BRIDLESMITH GATE LIMITED
- YHSP LIMITED
Winding-Up Petitions
- VERRAUX PROCTOR JV 2 LTD
- AMAFHHA LIMITED
- APS HEATING LTD
- BUILDSWORTH CONTRACTS LTD
- FIRST ALLIANCE SERVICES LTD
- STOWMARKET B LTD
CPA Membership
Late payments and surprise insolvencies are still a feature of the UK economy, even as markets talk up recovery. CPA members use CreditCare reports and ongoing monitoring to spot warning signs early, tighten credit limits where needed, and act quickly when customers start to wobble. If you sell on credit, having clear visibility of who you’re trading with has never mattered more.
Just call Peter Uwins, CPA’s National Sales Manager, on️ 020 8846 0000 (business hours) when our offices open on Monday 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.