Business news 30 September 2025

UK business confidence has dipped sharply amid concerns over taxes, costs, and debt risks. Chancellor Rachel Reeves pledged stability and ruled out a wealth tax at the Labour conference, reassuring bond markets, while GDP data confirmed slowing growth. Meanwhile, insolvencies continue to rise across multiple sectors — underlining the pressures small businesses face.

James Salmon, Operations Director.

Top stories for SMEs

Business confidence tumbles

Lloyds Bank reported a 12-point drop in corporate confidence, with optimism about the economy falling to 33%. Hiring plans also softened, with fewer firms expecting to expand their workforce. Pay settlements are expected to be less generous. Some reassurance comes from expectations that the Bank of England may cut rates again within six months, but SMEs remain wary.

Reeves pledges stability, rules out wealth tax

At today’s Labour Party Conference, Chancellor Rachel Reeves ruled out a wealth tax and promised stability in the November Budget. She stressed that Labour’s manifesto pledges not to raise income tax, NI, or VAT still stand. Gilt yields fell in response — 10-year yields eased to 4.14% and 30-year to 5.51%, as markets welcomed clarity. However, the BRC and BCC warned that further tax increases elsewhere could hit firms and keep shop prices higher for longer.

️ UK debt crisis risk

A Deutsche Bank poll of financial professionals put the UK as the second most at risk of a debt crisis among major economies (behind France) in the next two years. With a £30bn shortfall in public finances, investors are alert to the risk of bond market instability.

GDP slows but stays positive

ONS confirmed that GDP grew 0.3% in Q2 2025, in line with earlier estimates. Growth slowed from 0.7% in Q1, with services up 0.4% and construction up 1.0%, offset by a 0.8% fall in production. The figures show resilience but also highlight the fragility of the recovery.

Immigration changes raise hurdles

Home Secretary Shabana Mahmood announced tougher residency rules: migrants must wait 10 years to apply for indefinite leave to remain and pass stricter tests, including advanced English and consistent NI contributions. The changes may affect sectors reliant on overseas workers, particularly in hospitality and care.

FCA de-authorises thousands of firms

Nearly 8,000 firms lost FCA authorisation in the past eight months, mostly in credit broking. While some consolidation is expected, smaller advisory and brokerage businesses face higher regulatory hurdles.

Housing market cools

Mortgage approvals slipped to 64,680 in August (from 65,161 in July), with remortgaging also lower. Analysts warn the housing market may be stuttering as higher costs bite and buyers push for lower prices.

Claire’s UK part-rescued

Modella Capital has stepped in to rescue parts of Claire’s UK, safeguarding around 1,000 jobs and 156 stores. But 145 outlets remain outside the deal, leaving uncertainty for staff and suppliers.

Market snapshot

  • FTSE 100: Opened down 0.1% at 9,289.74 after Monday’s near-record close.
  • Stoxx Europe 600: Down 0.3% despite strong September performance.
  • US stocks: Monday saw S&P 500 (+0.26%) and Nasdaq (+0.48%) hit near-record closes, but futures point lower on Tuesday amid shutdown worries.
  • Commodities:
    • Gold hit a fresh record above $3,850/oz, best monthly run since 2011.
    • Brent crude slid to $67/barrel, down over 3% on Monday.
    • Copper rose nearly 5% in September, its best monthly performance in a year.
  • Currencies:
    • GBP/USD steady at 1.3420.
    • EUR/GBP firmed to 0.8742 on UK fiscal concerns.
    • USD weaker amid government shutdown risk.
  • Gilts: 10-year at 4.14%, 30-year at 5.51%, both lower after Reeves’ Budget remarks.

Insolvencies

Administrations

  • C. Brown & Sons (Steel) Limited
  • C Brown Services Limited
  • Crownhill Topsoil & Aggregates Limited
  • RC Legacy Limited
  • Regalpoint (Byfleet) Limited
  • We Are Electric Limited

Liquidations

  • Abrdn Oldco Limited
  • ASG2022 Limited
  • Bedworth Glebe Estate Company Limited
  • BP Remit Limited
  • Carroll Marketing Services Ltd
  • Chemial UK Limited
  • Dargin Limited
  • Great White North Resources Limited
  • Griggs Services Limited
  • Investment Trustee and Adviser Ltd
  • ISS UK Trustee Limited
  • Jawwad Software Solutions Limited
  • Kin and Carta Scotland Limited
  • Mabble Limited
  • Mel Guard Ltd
  • Solarex Limited
  • Szyw Ltd
  • Timeline Construction Planning Limited
  • Tom Archer Consulting Services Ltd
  • Watts 2020 Limited
  • West Country Self Drive Limited

Winding-up Petitions

  • AC Plumbing & Heating Specialists Ltd
  • Alphaswap Ltd
  • Girotim Ltd
  • Lambrienos Florists Limited
  • Mabble Limited
  • New Home Pizza Limited
  • Oakwood Home Projects Ltd
  • Pauls Butcher and Bakery Limited
  • PNL Accounting Ltd
  • Ridgesteel Fabrications Limited
  • Rose Peri Peri Grill Ltd
  • Sizzler Maidenhead Limited
  • Tulse Hill Eye Wear Limited

Winding-up Orders

  • Millennia (UK) Limited

Today’s CPA takeaway

With confidence slipping, tax uncertainty lingering, and insolvencies mounting, SMEs need to keep a close eye on cash flow and customer payments. If your business trades on credit, don’t leave collections until it’s too late — CPA can help you stay ahead of risk.

Just call️ Peter Uwins, CPA’s National Sales Manager, on 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.