Business news 4 December 2025
UK markets lag global peers as rate-cut optimism lifts equities worldwide. Political fallout continues around the Budget and the OBR, while rising costs put pressure on hospitality, property, retail and major infrastructure sectors. Copper hits a record high, Ofgem’s investment decisions shake energy markets, and SME-relevant insolvencies continue to rise.
James Salmon, Operations Director.
Economic Stories
Treasury launches inquiry into pre-Budget leaks
The Treasury is investigating leaks of Budget policies to the press, which moved markets and influenced investor behaviour ahead of the official announcement. Political tensions continue as accusations fly about interference with the OBR.
Why it matters: Policy uncertainty affects confidence and increases caution in spending and payment behaviour.
UK services growth hits a snag
The services PMI slipped to 51.3 in November, signalling slower expansion. Demand weakened across domestic and export markets, with job cuts and reduced investment appetite.
Why it matters: Slowing demand raises cash-flow risks for service-sector clients.
UK services sector growth slows in November
A separate PMI measure confirms a renewed decline in new orders, though the final reading was slightly stronger than the flash estimate.
Why it matters: Falling new orders often precede rising late-payment risk.
Reeves lights fuse on £1.3tn debt bomb
Sir John Redwood claims the Budget masks a future £1.3 trillion refinancing and spending burden by 2030–31.
Why it matters: Rising national debt increases the likelihood of higher interest rates and squeezed public spending.
Tax freeze threatens UK economic growth
OBR economist David Miles warns the frozen tax thresholds will push more workers into higher tax bands, dampening incentives to work and invest.
Why it matters: Lower consumer spending power can weaken SME revenues and payment reliability.
Tax & Government
Whistleblowers could earn big from HMRC
A new HMRC scheme will pay informants 15–30% of tax recovered in major tax avoidance cases, with possible rewards up to £450,000.
Why it matters: Tougher enforcement may expose financially unstable firms you trade with.
Suella Braverman: Scrap the OBR
Braverman accuses the OBR of poor forecasting, undue influence and political distortion, calling for fiscal responsibility to return to ministers.
Why it matters: Governance disputes increase policy uncertainty, complicating SME planning.
OBR left without a chair after Richard Hughes resigns
The OBR is currently leaderless after Hughes quit amid political fallout over early Budget analysis leaks. A new chair must be appointed quickly.
Why it matters: Reduced stability in fiscal oversight creates uncertainty for markets and small businesses.
Industry-Specific Stories
Hospitality
Hotels face profit squeeze amid rising costs
Despite rising room rates, profit margins stagnated in October. Higher NI contributions and the upcoming minimum wage rise will add further pressure.
Why it matters: Weaker margins increase late-payment risks from hospitality customers.
Leon faces closures and job cuts
Fast-food chain Leon warns of potential job cuts and site closures after reporting continued losses.
Why it matters: Suppliers may face reduced orders or delayed payments.
Pubs face financial crisis after tax hike
Pubs warn pint prices could exceed £18 amid rising business rates, energy bills and wage costs.
Why it matters: Sector strain increases insolvency risk across supply chains.
Property & Infrastructure
Big Yellow faces £1.8m tax hike
Self-storage operator Big Yellow will see its annual rates bill rise by £1.8 million under new tax rules.
Why it matters: Higher costs may limit cash availability for payment of suppliers.
Energy & Utilities
Ofgem approves major grid investment
Ofgem has set out £28 billion in funding for gas and electricity networks, potentially rising to £90 billion by 2031.
Why it matters: Funding uncertainty may slow contract payments among major utilities and contractors.
Ofgem investment to add £108 to annual energy bills
Network charges will rise by £108 for small firms and households as infrastructure upgrades begin.
Why it matters: Higher bills directly pressure SME cash flow.
Norway set to become net power importer
Norway’s domestic demand surge will reduce energy exported to the UK and Europe.
Why it matters: Lower imports could increase UK wholesale price volatility.
Technology & Financial Services
LSEG partners with OpenAI
The London Stock Exchange Group will make its financial data accessible to ChatGPT and enterprise users via a new partnership with OpenAI.
Why it matters: Easier access to market data helps SMEs assess credit risk more effectively.
Insolvency
Mallows Beauty faces liquidation crisis
Mallows Beauty has entered voluntary liquidation after severe financial pressures. The company, once generating nearly £5 million in annual sales, now owes £1.9 million to 57 creditors, including HMRC and TikTok. Menzies has been appointed as liquidators.
Why it matters: A reminder that early growth can hide cash-flow risk; monitor fast-growing customers closely.
General Market News
Copper price hits record high
Copper surged to a record $11,412 per tonne amid supply disruptions and heavy pre-tariff buying.
Why it matters: Rising raw material prices squeeze margins for manufacturers and builders.
Market Snapshot
Global markets were broadly constructive over the last 24 hours, supported by growing expectations of central bank easing, resilient risk appetite, and strong performance in both commodities and currencies. However, the UK market continues to trail its international peers.
Global Equities
Equity markets in the US and Europe extended their upward momentum as investors positioned for a potential year-end rally.
- The S&P 500 posted its seventh gain in eight sessions, rising 0.30%, buoyed by optimism that the Federal Reserve may cut interest rates next week.
- The Nasdaq Composite edged higher, helped by strength in technology stocks.
- The Euro Stoxx 50 gained 0.28%, reflecting broad European support for risk assets.
In the UK, the FTSE 100 underperformed, gaining just 0.13%. Utilities were the main drag, particularly SSE and National Grid, as investors reacted negatively to Ofgem’s £28 billion funding package for network upgrades. The index briefly opened lower despite stronger sentiment across other major markets.
Key Drivers
The dominant force in markets remains the soft US labour data. A disappointing ADP employment report — showing the largest job cuts since early 2023 — strengthened expectations of Federal Reserve rate cuts. The data was interpreted as a sign that inflationary pressures may be easing, giving policymakers room to act.
Energy stocks outperformed globally as US natural gas prices surged to $5 for the first time in three years. Mining stocks were also strong, supported by copper setting fresh record highs.
Commodities
Energy:
- US natural gas rose sharply on forecasts for extreme cold weather.
- European gas prices slipped as oversupply concerns eased and Asian demand remained muted.
- Oil prices were mixed: Canadian crude weakened relative to US benchmarks, while broader oil markets firmed slightly after US-Russia talks failed to advance peace efforts in Ukraine.
Metals:
- Copper hit a record above $11,500 per tonne due to supply disruptions at major mines and heavy pre-tariff stockpiling.
- Gold continued climbing, with December futures reaching $4,187.10.
- Silver traded near record highs around $58.55 an ounce.
These moves underline an ongoing theme: industrial metals driven by structural demand (EVs, AI, electrification) and precious metals supported by expectations of lower US rates.
Currencies
The British pound was the strongest major currency of the day.
- Sterling rose 1% against the US dollar — its best daily performance since April.
- It also strengthened against the euro, with EUR/GBP falling 0.5%.
Every G-10 currency advanced against the dollar as traders priced in rate-cut expectations, and the Bloomberg Dollar Spot Index fell for a second straight session.
The pound is now approaching a key technical level at the 200-day moving average of 1.3322. A close above this could open the door to further gains.
Broader Themes
- Monetary easing expectations remain the central narrative driving risk assets higher.
- Supply chain pressures are back in focus, with global shipping costs reported to be up more than fourfold due to geopolitical disruptions and sanctions.
- UK fiscal concerns continue despite sterling’s strength, with analysts warning of potential upward pressure on long-dated gilt yields as the government seeks to fund its spending plans.
- Commodity inflation may re-emerge if copper, energy and precious metals continue their upward trajectory.
Insolvency Notices
Appointments of Administrators
- US Capital Global Investment Management Manifesto Loan Ltd
Appointments of Liquidators
- ACI UK Learning Limited
- Brite Services Limited
- Dendale Limited
- Doran Contractors Limited
- HR Solutions (Hospitality) Ltd
- Joseph Invest Ltd
- NGB Invest Ltd
- North Staffordshire Landlords Association Limited
- Titan Logistics Limited
- Tracy Fletcher Limited
Winding-Up Petitions
- AAAG Investments Ltd
- Dalston Property Ltd
- Endeavour Land and New Homes Ltd
- Prime Property Maintenance London Ltd
- Union Street Trading Ltd
- Yukon Consultants Ltd
Winding-Up Orders
- A Class Plumbing & Electrical Limited
- Prax Downstream UK Limited
- Unimetals Recycling (UK) Limited
CPA Membership
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