Business news 30 January 2026

UK businesses head into 2026 under mounting strain, with tens of thousands now classed as being in critical financial distress just as HMRC prepares to call in billions of pounds in unpaid tax. At the same time, global markets are wrestling with shifting US interest‑rate expectations, while UK firms are being pulled between China trade opportunities and rising geopolitical risk. For SMEs selling on credit, the message is clear: conditions are becoming less forgiving, cash buffers thinner, and payment risk more concentrated.

James Salmon, Operations Director.

SME‑focused stories

Zombie businesses face imminent collapse

Tens of thousands of UK companies are nearing collapse after years of surviving on thin margins and deferred liabilities, according to Begbies Traynor. The number of firms in ‘critical financial distress’ reached 67,369 in late 2025, driven by high taxes, rising employment costs and weak demand. Begbies warns that 2026 could be the tipping point as HMRC begins pursuing an estimated £27bn in overdue corporation tax, PAYE and VAT built up since the pandemic.

Why it matters: Businesses that have limped along for years are the most dangerous customers — once HMRC moves in, trade creditors are rarely paid first.

Construction halted as developers crumble

Construction at the Cliff Edge 2 development in Newquay has stopped after Cliffedge 10 Newquay Limited entered administration, the fourth Stephens & Stephens Group company to do so in a year. Administrators from Quantuma were appointed by United Bank Trust, with site access locked and equipment removed. The group’s holding company is also under pressure after HMRC filed a winding‑up petition.

Why it matters: When construction sites shut abruptly, contractors and suppliers are often left unpaid with little warning and limited recovery options.

EJ Taylor and Sons enters administration

Chelmsford‑based construction firm EJ Taylor and Sons has entered administration following a pre‑tax loss of £2.8m and an 89% collapse in cash reserves. The firm had filed a notice of intention to appoint administrators in December while pursuing a pre‑pack sale.

Why it matters: Notices of intention signal a sharp rise in credit risk — once filed, suppliers can quickly find themselves frozen out of decisions and payments.

Tax & Government

HMRC opens Saturday helplines for tax returns

HMRC will open its helplines on Saturday ahead of the self‑assessment deadline, after criticism that support would be unavailable on deadline day. More than 3.3m people have yet to file returns, with a £100 fine looming after midnight.

Why it matters: January tax deadlines divert cash away from suppliers, often triggering short‑term payment delays immediately after month‑end.

Hidden properties worth £190bn exposed

An investigation by Tax Policy Associates has found nearly 45,000 UK properties worth £190bn remain effectively hidden from public scrutiny, breaching anti‑money‑laundering rules. Almost half lack identifiable beneficial owners, while only 3% of penalties for non‑compliance were collected last year.

Why it matters: Opaque ownership makes credit checks, enforcement and debt recovery far harder — especially for property‑linked suppliers.

Trade, China & geopolitics

Trump warns UK over China deals

Donald Trump has warned the UK and Canada against deepening business ties with China, calling it “very dangerous”, following Sir Keir Starmer’s visit to Beijing. The trip delivered agreements on visa‑free travel and reduced whisky tariffs, as the UK seeks better access to Chinese markets.

Why it matters: Expanding into China can boost sales, but jurisdictional risk and enforcement challenges can leave UK suppliers exposed if deals sour.

AstraZeneca commits $15bn to China

AstraZeneca will invest $15bn in China by 2030, expanding manufacturing and R&D while building a $2.5bn Beijing research hub. The deal includes collaboration with CSPC Pharmaceutical Group and access to new drug candidates.

Why it matters: Large corporates doubling down on China sets the tone for supply chains — but SMEs further down the chain may carry disproportionate credit risk.

PM’s Beijing visit yields several agreements

Sir Keir Starmer’s China visit produced visa‑free travel for short stays and discussions on a potential services trade deal worth £13bn in exports. Agreements also covered cooperation on standards and intelligence sharing.

Why it matters: Services exports often involve longer billing cycles and weaker security, increasing late‑payment risk.

Economy & industry

UK vehicle production hits 73‑year low

UK vehicle production fell 15.5% in 2025 to its lowest level since 1952, with just 764,715 vehicles built. Manufacturers are exploring diversification into defence as export uncertainty grows under new EU rules.

Why it matters: Fewer vehicles mean less work flowing through supply chains, putting pressure on cash flow and payment terms for SME suppliers.

Lloyds boss rejects Farage’s bank tax plan

Lloyds CEO Charlie Nunn has warned that proposals to curb interest paid on bank reserves could restrict lending to households and businesses. Reform UK leader Nigel Farage argues banks receive £20bn a year in ‘free money’ from the Bank of England.

Why it matters: Any squeeze on bank profitability usually feeds through to tighter SME lending, pushing firms to rely more heavily on supplier credit.

Technology, jobs & policy

UK considers universal basic income amid AI disruption

Ministers are discussing a potential universal basic income as AI accelerates job losses, particularly in London. Research suggests the UK is now losing more jobs than it creates due to automation.

Why it matters: Job losses weaken consumer demand, increasing arrears and payment delays for SMEs.

Labour’s AI skills hub criticised

Labour’s £4m AI Skills Hub has been criticised for outdated links and inaccessible content, despite claims it hosts over 600 reviewed courses. PwC was paid £4.1m to build the platform.

Why it matters: Skills gaps persist while disruption accelerates, leaving businesses to absorb productivity and cash‑flow shocks alone.

Market Snapshot

Global markets were volatile as investors digested reports that Donald Trump may nominate Kevin Warsh as the next US Federal Reserve chair. US equity indices finished broadly flat, but futures fell sharply overnight, reflecting reduced expectations for aggressive interest‑rate cuts. European markets, including the FTSE 100, edged higher, although commodity‑heavy stocks later came under pressure.

Sterling weakened against both the dollar and the euro, with the pound falling to around $1.37 as the dollar strengthened on shifting rate expectations. Bond yields rose, precious metals sold off sharply, and oil prices retreated slightly after earlier gains linked to Middle East tensions.

US Markets: The S&P 500 stands at 6,969.01 (down 9.02), the Nasdaq declined 138 pints to 25,884.

European Markets showed positive momentum, with the DAX up 0.83% to 24,512.16, the Euro Stoxx 50 gaining 0.64% to 5,929.46, and the CAC 40 rising 0.48% to 8,110.10.

UK Market: The FTSE 100 advanced 0.26% to 10,197.99, supported by strength in miners and oil majors .

Fed Chair Nomination Drives Volatility: Markets reacted sharply to reports that the Trump administration is preparing to nominate Kevin Warsh as the next Federal Reserve chair Warsh is perceived as more hawkish than other contenders, leading investors to dial back expectations for deep interest-rate cuts.

AI Spending Concerns: Microsoft tumbled about 10% on Thursday after surging AI spending rattled investors, raising concerns about whether unprecedented AI capital expenditure will justify returns. In contrast, Meta Platforms surged 9.8% after providing a much stronger-than-expected revenue outlook.

Currency Markets

Major Currencies vs GBP – Current Levels and 24-Hour Moves

• USD/GBP: 1.3747 (GBP down 0.45% vs USD)
• EUR/GBP: 0.86722 (GBP down 0.05% vs EUR)
• JPY/GBP: 211.887 (GBP down 0.21% vs JPY)
• CHF/GBP: 1.0578 (GBP down 0.22% vs CHF)
• AUD/GBP: 1.9653 (GBP down 0.34% vs AUD)
• CAD/GBP: 1.86 (GBP up 0.15% vs CAD)

Commodities

Energy:

• WTI Crude: $64.92 (down 0.76%)
• Brent Crude: $70.35 (down 0.51%)
• Natural Gas: $3.884 (down 0.87%)

Metals:

• Gold: $5,058.17 (down 5.90%)
• Silver: $101.76 (down 11.07%)
• Copper: $13,618 (up 4.06%)
• Aluminum: $3,218.50 (down 1.18%)

Insolvencies

Petitions to wind up (Companies)

• A Class Ceilings and Partitions Ltd
• Advanced Business Ventures Ltd
• Afro Lanka Ltd
• Administration Gateway Ltd
• A&T Global Consulting Ltd
• ATOZ Serviced Apartments Ltd
• ATWRK Ltd
• ABH Surfacing Ltd
• Ambassador Accommodation Ltd
• Bailey Financial Ltd
• Bartek HGV Ltd
• Caernarfon Properties Ltd
• Capricom IT Engineering Ltd
• Central Employment (UK) Ltd
• Charlie Penny Ltd
• Clickpay Solutions Ltd
• Clipp (South West) Ltd
• Clubbbable Properties Ltd
• Colman Packaging Ltd
• Complete Render South West Ltd
• Consui Ltd
• Corpalco Ltd
• Dawson & Co Accountants Ltd
• Defend-London Ltd
• Destination VIP Ent Ltd
• Deudraa UK Ltd
• Evolve Global Consulting Ltd
• Fima Management Services Ltd
• FKA Property Ltd
• Friar Street Leisure Ltd
• G.T. Shopfitting (UK) Ltd
• Global Security and Risk Services Ltd
• Global TP Ltd
• Gosforth Ventilation Services Ltd
• HREIM Margate Ltd
• Holkar Ltd
• Industrial Pallet Solutions Ltd
• Jervicash Ltd
• Joseph James (IAS) Ltd
• K Carvell Builders Ltd
• Lovett International Ltd
• Magnus Opifex Ltd
• Midland Skip Hire Ltd
• Ninety Four Ltd
• NW Veg Ltd
• Oldham Rugby League Football Club 1876 Ltd
• One Leisure Saltaire Ltd
• PPFBCO Ltd
• Prickly Pear at the Old Brewery Ltd
• Quality Care Services Peterborough Ltd
• Redemption Brewing Company Ltd
• Redholt Ltd
• Resell Gang Ltd
• Round Table Enterprises Ltd
• Samui Pub Co Ltd
• Samas and Co Ltd
• Scoundrel Ltd
• Skillflux Advisory Ltd
• Spaced Digital Ltd
• Stern Group Developments Ltd
• St. George’s Property Development Ltd
• Tim Wells Nurseries Ltd
• Total Conservation Management Ltd
• Willow Home Care & Support Services Ltd
• Ylynca Construction Ltd

Appointments of administrators

• BBL Realisations Ltd
• BBN Realisations Ltd
• BSB Realisations Ltd
• BREAL Capital (B Sheep) Ltd
• PBC Realisations Ltd

Appointments of liquidators

• AAA Holdco Ltd
• Airstream International Group Ltd
• Arimaz Ltd
• Engineering Asset Management Ltd
• Freeman & Hook Scaffolding Contractors Ltd
• Gammies Country Clothing Ltd
• Helana Consulting Co Ltd
• Hislop Locum Ltd
• Infovea Ltd
• Kantar Consulting UK Ltd
• Mark Sheeran Consulting Ltd
• North AVS Ltd
• North Hill Hotel Ltd
• North PRT Group Ltd
• North SP Ltd
• North SV Ltd
• North VS Ltd
• PPNL SPV 4 Ltd
• Plus Point PR Ltd
• RD Wines Ltd
• The Grampian Venture Capital Fund Ltd
• Total Cyber Ltd
• VCS Accountancy Ltd
• Vendere Solutions Ltd
• Verismo Casa Ltd
• WEY Technology Ltd

What CPA can do for you

When insolvencies rise and HMRC tightens enforcement, suppliers need more than luck — they need structure. CPA helps members spot early warning signs, improve payment behaviour, and recover overdue invoices ethically and efficiently, before bad debts turn terminal.

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.