Business news 4 November 2025

Business confidence wavered on Tuesday as speculation intensified over Labour’s upcoming Budget. Chancellor Rachel Reeves faces pressure to plug a £35bn fiscal hole amid warnings of tax rises, weak manufacturing growth, and rising insolvency risk. From pub closures to energy costs and recruitment pressures, SMEs are bracing for a tough winter as markets turn cautious and sterling softens ahead of the Bank of England’s rate decision.

James Salmon, Operations Director.

SME-Focused & Economic Stories

💷 Chancellor prepares to break tax promises

Rachel Reeves may renege on Labour’s pledge not to raise income tax as she prepares to “stabilise public finances.” Analysts expect a possible 2p rise across bands.
Why it matters: Higher income tax reduces consumer spending and could tighten cashflow for SMEs dependent on domestic demand.

⚖️ Resolution Foundation says budget hole smaller than feared

The think tank expects a smaller deficit thanks to strong wage growth and urged Reeves to move energy levies into general taxation.
Why it matters: Policy shifts could change business costs and household disposable income, directly affecting payment reliability.

💬 Starmer warns of “tough but fair” tax-raising budget

The PM said Labour’s first Budget will “reduce debt and improve living costs” through “fair” tax increases.
Why it matters: SMEs face renewed uncertainty on margins and payroll costs ahead of the November 26 Budget.

📉 Public sector productivity hits new low

ONS data show output per pound spent fell 0.7% year-on-year, led by a 1.5% drop in health productivity.
Why it matters: Lower productivity pressures the Treasury to raise taxes or reduce spending, both of which impact SME demand.

🏭 Manufacturing recovery fears loom large

The UK manufacturing PMI rose to 49.7 but remains in contraction. Employment continues to fall.
Why it matters: Weak output and job losses threaten B2B orders and cashflow across supply chains.

🏗️ Make UK warns of de-industrialisation threat

Manufacturers say high energy costs and potential tax hikes pose an “existential threat.”
Why it matters: Reduced industrial output hits local economies and service providers reliant on manufacturing clients.

🍻 Pubs face insolvency crisis amid tax hikes

Nearly 5,000 pubs are now at maximum insolvency risk — a 14% rise year-on-year.
Why it matters: Late payments and closures are likely to rise among hospitality suppliers.

📊 ONS faces shake-up and possible relocation

The government is reviewing the ONS’s location after data credibility issues.
Why it matters: Unreliable statistics make business forecasting harder, raising credit-risk uncertainty.

👔 Minimum wage rise threatens recruitment

Experts warn that a higher minimum wage could compress starting salaries and hit recruitment in mid-tier firms.
Why it matters: Rising wage bills can strain SMEs’ margins and delay payments.

🏦 FCA faces backlash over car-loan compensation scheme

MPs claim the FCA’s car-loan redress plan underestimates payouts by up to £7bn.
Why it matters: Lender liabilities may tighten credit conditions for small car dealers and garages.

🏢 AstraZeneca shareholders back NY listing

99% of shareholders approved a New York listing, potentially costing the Treasury £200m a year in stamp duty.
Why it matters: A shrinking London market could raise financing costs for UK SMEs seeking equity capital.

🛫 O’Leary: UK economy doomed without tax cuts

Ryanair’s CEO says “insane” taxes must be cut, warning regional airports are at risk.
Why it matters: Travel-sector weakness can cascade to regional supply chains and contractors.

💰 Farage predicts economic collapse in 2027

The Reform UK leader scrapped his £90bn tax-cut plan, warning of debt-driven “economic collapse.”
Why it matters: Political uncertainty adds risk for SMEs reliant on government contracts or investment confidence.

🪙 UK must step up in crypto race

Lord Ranger urges stronger leadership to keep Britain competitive in digital assets.
Why it matters: Missed fintech opportunities could limit future access to digital-finance innovation for SMEs.

🏢 Associated British Foods reviews Primark separation

ABF and Wittington are considering splitting Primark from its food division after profits fell year-on-year.
Why it matters: Corporate restructuring may reshape supplier relationships and credit exposure.

☁️ Orsted sells half of Hornsea 3 to Apollo

Orsted sells 50% of the world’s largest offshore wind project for $6.5bn.
Why it matters: Foreign investment supports UK renewables supply chains and construction SMEs.

☁️ OpenAI signs $38bn cloud deal with Amazon

OpenAI commits to $38bn in AWS spending, moving beyond Microsoft exclusivity.
Why it matters: Rising AI investment could open data-service opportunities but raise competition for tech SMEs.

📈 Wall Street CEOs warn of 10% correction

Leaders including David Solomon and Ted Pick predict an equity pullback of over 10%.
Why it matters: A market correction could tighten global credit and investor sentiment toward UK firms.

Market Snapshot

Global equities fell as valuation worries hit tech and mining shares. The FTSE 100 dropped 0.8%, while S&P 500 futures slid 1.1% after Monday’s modest gains. Oil eased (Brent near $65; WTI below $61) amid an OPEC+ pause, gold dipped below $3,985/oz, and copper weakened on easing supply fears. Sterling slipped 0.4% to $1.3087 ahead of Thursday’s BoE decision; most economists expect a hold, with a minority seeing a quarter-point cut. Sentiment remains cautious.

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⚖️ Insolvency Data

Appointments of Administrators

  • CRAFT METAL SPINNING (WARRINGTON) LIMITED
  • FREP 3 (ABBEY ROAD) LIMITED
  • FREP 3 (KENSINGTON SQUARE) LIMITED
  • GEM DISPLAY MEDIA LIMITED
  • INNOVATIVE AGED CARE LIMITED
  • SILKFRED LIMITED

Appointments of Liquidators

  • APPLE CAR CENTRE LIMITED
  • BOATSTEM LIMITED
  • CHRALIVI LIMITED
  • CHURCH FARM (HERSTMONCEUX) LIMITED
  • COTTER ENGINEERING LIMITED
  • CREASY PENSION TRUSTEES LIMITED
  • CROFT ENGINEERING COMPANY LIMITED
  • CYMBA LTD
  • DOLOMITE SOLUTIONS LIMITED
  • FUNTIME EVENTS LIMITED
  • GMS 275 LIMITED
  • H B RAYLOR & COMPANY LIMITED
  • INVERGORDON TYRE SERVICES LIMITED
  • J D PARTIES LTD
  • KAT INFORMATION LTD
  • LE GAVROCHE LIMITED
  • MENTAL WELLBEING LIMITED
  • MRW PROGRAMME CONSULTING LIMITED
  • MSZ PROPERTY LTD
  • NEIL DICKSON CONSULTING LTD
  • PILOT CREATIVE LIMITED
  • PWTM TESTING LIMITED
  • RDIOHED LTD
  • VIKING VEHICLE FINANCE LTD
  • VL MIDCO 2 LIMITED

Petitions to Wind Up (Companies)

  • BAMFORD BROTHERS LTD
  • DNZ CONSTRUCTION & DEVELOPMENT LTD
  • MAID TO MOP LIMITED
  • REBUILDABLE LTD
  • SEAL TECHNOLOGY (UK) LIMITED
  • SWANS SHOES LTD