Business news 31 October 2025

It’s a week of big numbers and bigger worries. As OpenAI eyes a $1 trillion IPO and Amazon smashes forecasts, UK businesses remain under strain from inflation, regulation, and tax uncertainty. The latest Red Flag Alert shows a 78% surge in firms facing critical distress, while ministers prepare tax reforms and offer limited relief to energy-intensive industries.

James Salmon, Operations Director.

🏢 SME & Economic News

More firms face ‘critical’ distress
The number of UK businesses in “critical” financial distress rose 78% year-on-year to 55,530 in Q3, according to Begbies Traynor. Inflation, taxes, and high borrowing costs are putting severe strain on cashflow.
Why it matters: Rising distress signals tougher credit conditions and late payments ahead for SMEs.

Tesco Meal Deal highlights inflation risk
Economists warn that firms’ ability to raise prices, like Tesco’s £4.25 Meal Deal, shows pricing power remains strong and inflation pressures may persist despite softer data.
Why it matters: Persistent inflation keeps wage and cost pressures high for smaller suppliers.

Government to cut £420m from energy bills for heavy industry
Around 500 energy-intensive firms will receive a 90% discount on electricity network charges, up from 60%. Unions welcome support but call the savings “small” beside “obscene” energy profits.
Why it matters: Offers relief to major manufacturers but highlights uneven support for smaller firms.

Rate reforms could hit small firms
Proposed business rates changes could remove Small Business Rates Relief from flexible workspaces, raising occupancy costs.
Why it matters: Could increase costs for SMEs using co-working or serviced offices.

⚖️ Tax & Government

Reeves considers income tax increase
Facing a £22bn fiscal gap, the Chancellor may raise income tax by 1–2%, offset by a cut in National Insurance. Business groups say it’s the least harmful option for growth.
Why it matters: Higher income tax could squeeze household demand but stabilise public finances.

Mansion tax could harm property market
A proposed 1% levy on homes worth over £2m could distort pricing and drive sales, especially in London.
Why it matters: Risk of reduced confidence and liquidity in the high-end housing market.

London’s listing rules drive firms away
Ex-minister Paul Scully warns that FCA rules are pushing firms to list abroad, threatening billions in tax revenue.
Why it matters: Red tape and regulation risk draining investment from the UK market.

Ofgem to cancel £500m energy debt
Up to £500m in unpaid energy bills may be wiped to relieve 195,000 customers, though MPs say suppliers’ profits should fund it.
Why it matters: Sets a precedent for state-backed debt relief but could raise future costs for businesses.

Firms count the cost of regulation
The Times’ Emma Duncan argues that layers of new regulation add costs and stifle productivity.
Why it matters: Compliance overheads are eating into SMEs’ margins and growth potential.

Government looks to boost cyber resilience
A new Cyber Security and Resilience Bill will require companies to report attacks and secure their supply chains after 204 serious incidents were recorded this year.
Why it matters: Cyber compliance will become a major operational cost for UK firms.

👷‍♂️ Employment & Business Impact

Businesses could cut jobs over tax raid
Nearly half of firms plan job cuts after the £25bn National Insurance rise. Economists say it’s pushing inflation higher.
Why it matters: Rising payroll costs mean delayed recruitment and weaker growth.

Staff warn of ‘toxic’ workplaces
Only 25% of global workers are happy, with 80% of UK staff calling their workplace “toxic,” per Monster’s 2025 poll.
Why it matters: Poor morale could worsen retention and productivity problems across UK firms.

💼 Industry & Market News

OpenAI prepares for $1 trillion IPO
Following a corporate restructuring with Microsoft, OpenAI could list next year at a $1 trillion valuation.
Why it matters: Signals investor confidence in AI, influencing tech valuations and UK adoption trends.

Amazon smashes Q3 forecasts
EPS of $1.95 beat forecasts on $180.2bn revenue; AI chip sales up 150%. Shares rose 12% after hours.
Why it matters: Suggests continued AI-driven demand despite consumer spending uncertainty.

Apple Q4 results beat expectations
Revenue up 8% to $102.5bn; EPS $1.85 (+13%); $0.26 dividend declared.
Why it matters: Indicates resilient consumer tech demand and potential supply chain stability.

Netflix eyes Warner Bros Discovery
Netflix has hired advisers to explore acquiring Warner Bros’ streaming and studio divisions.
Why it matters: Could reshape global media competition, affecting UK content creators.

Samsung in talks with Nvidia
Samsung plans to supply next-gen high-bandwidth memory chips from 2026.
Why it matters: Highlights rapid semiconductor expansion critical to AI growth.

AI frustration could be costing UK retailers billions
CEBR says 40% of UK shoppers have negative chatbot experiences, reducing sales and loyalty.
Why it matters: Poor AI integration risks lost revenue for online-selling SMEs.

UK house prices increase again in October
Nationwide reports a 0.3% rise to £272,226, up 2.4% YoY, supported by real wage growth and lower borrowing costs.
Why it matters: Strength in housing suggests consumer resilience but complicates inflation control.

📊 Market Snapshot

• FTSE 100: Record close at 9,760.06 (nine consecutive gains), down 0.2% Friday morning as banks and energy stocks weighed.
• S&P 500 / Nasdaq 100: Down 1% and 1.5% respectively after tech spending worries; futures rebounding Friday.
• Stoxx Europe 600: Down 0.1%, on course for a fourth straight monthly gain.
• Oil: Brent near $64, WTI $60 — heading for a third monthly decline amid OPEC+ supply concerns.
• Gold: Steady near $4,000 as trade optimism grows; record fund outflows of $7.5bn.
• GBP/USD: Fell 0.33% to $1.3151 — ninth decline in ten sessions.
• Key themes include FTSE 100 hitting ninth consecutive record close, US tech stocks pulling back after strong earnings, oil heading for third monthly decline, pound weakness intensifying with nine declines in ten sessions, and record gold outflows amid trade optimism.
  Why it matters: Persistent sterling weakness and softening commodities underline pressure on import costs and inflation outlook.

💬 CPA Insight

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⚖️ Insolvency Data

Petitions to wind up (Companies)

• 786 TWENTY 4/7 SERVICES LTD
• A1 GRAB HIRE LIMITED
• AA RR LIMITED
• ABS LAWYERS LIMITED
• AEGIS SOUTH COAST LTD
• ALL GROUND CONSTRUCTION LTD
• ALL STAR ENTERTAINMENT (LONDON) LTD
• ANYWAY HOLDINGS LIMITED
• ARCH UK PROPERTY LTD
• ASHDUST UK LIMITED
• BELVEDERE CARE HOMES LTD
• BLUEFISHSHOP LIMITED
• BLOSSOM HCG LTD
• BRITANNIA CONTRACTORS LTD
• BRRGRR WALSALL LTD
• BRUNEL CONSTRUCTION LIMITED
• C J SWEEPERS LTD
• CENTRE FOR HEALTH RESEARCH AND EDUCATION LIMITED
• CHAPEL CURVE LTD
• CHR RECRUITMENT LTD
• CLOUD KITCHEN LONDON LTD
• CODZILLA LTD
• CONSERVATORY SHOW SITES LIMITED
• CONSTRUCTION AGENCY LIMITED
• CRAMPSIE COURIERS LIMITED
• CTR SITE SERVICES LIMITED
• DAVIS CONSTRUCTION GROUP LIMITED
• DRNK COFFEE HOUSE LTD
• DUNDRUM RESTAURANTS LTD
• ELECTRO BUSINESS TRADING COMPANY LIMITED
• EMERGENCY FIRE & SAFETY LTD
• ENHANCE WELLBEING HEALTHCARE LTD.
• ES RECRUITMENT UK LIMITED
• FAGAN STORES LTD
• FLORENCE BRENNAN RESTAURANTS LTD
• FOOD HALL WOOD STREET LTD
• FOY WEALTH LTD
• FREDERIC CHEESE & WINE LIMITED
• FS PROGRAMME SOLUTIONS LIMITED
• FTP GROUP LTD
• GBR DELIVERY LTD
• GOZONE CARE LIMITED
• GOLDEN POND (ROCKBEARE) LTD
• HASAN BIRKENHEAD LTD
• HAJWAIRY FOODS LTD
• HENRY SPEIGHT LIMITED
• HERITAGE CARE PLACE LIMITED
• HERMAN CLAUDE LTD
• HOLEE LEASE HOLDINGS LIMITED
• I&S INTERNATIONAL LTD
• ICE SERVICES GROUP LTD
• J IMMACULATE CARE LIMITED
• JASMINE CAFE LIMITED
• JEFFREY LIMITED
• KL SERVICES SOUTHERN LIMITED
• KRO HOTELS MANCHESTER M1 LTD
• LAGMORE SERVICES LIMITED
• LOCUM PLACEMENT GROUP LIMITED
• LUXE BRICKWORK LIMITED
• MA CHELTENHAM LTD.
• MAC BRICKWORX LTD
• MAROUSH FOOD PRODUCTION LTD
• MASTERSON LEISURE HOLDINGS (MLH) LTD
• MAYFAIR ESTATE PLANNING LIMITED
• MDMKJB LIMITED
• MGL FACILITIES LTD
• MN GROUNDWORKS LTD
• MONDAY HOSPITALITY GROUP LIMITED
• MOTAXROSS LTD
• MR FONES LTD
• NDM DRYWALL LTD
• NEXUS SURVEYORS LIMITED
• NEW MILL RESOURCING LTD
• NVA SPORTS & ENTERTAINMENT GROUP LIMITED
• OAKLAND GOLF AND LEISURE (UK) LIMITED
• OCEAN RECOVERY AND WELLNESS CENTRE LTD
• OFFSHORE SHIPBROKERS LIMITED
• OILY’S (WORKINGTON) LIMITED
• ONE LUXURY LIMITED
• P.GORTON LTD
• PARITAS RECRUITMENT LIMITED
• PEELED BUSINESS SOLUTIONS LIMITED
• PLETT TRADING LIMITED
• PRINCIPAL ESTATES (SOUTHERN) LTD
• RESILIENCE FM SERVICES LIMITED
• RISK CAPITAL ADVISORS LIMITED
• SEASCAPE CONSTRUCTION LTD
• SFM TECHNOLOGY LIMITED
• SHU WEN LTD
• SIMPLECLOUD CONSULTING LTD
• SOURCE 247 LTD
• SPIN RESTAURANTS LIMITED
• SSMRT LTD
• TAYLOR GREEN HOMES LIMITED
• THEN ESTATES LTD
• TRIX SOLUTIONS LTD
• TTS PHARMA LIMITED
• WESTSTONE LIMITED
• WORKS HOLDING LIMITED
• YUCCA RECRUITMENT AGENCY LTD