Business news 5 December 2025

UK business confidence remains under strain as construction output collapses, job losses accelerate, and post-Budget uncertainty weighs heavily on sectors from hospitality to retail. Markets were steadier, with European equities outperforming the US, and commodities moving on geopolitical tensions. A large energy-grid investment, regulatory probes, corporate restructurings, and shifting consumer sentiment all add to a challenging environment for SMEs selling on credit. Insolvency activity remains elevated, with a high volume of new winding-up petitions and liquidations across multiple sectors.

James Salmon, Operations Director.

SME-FOCUSED STORIES

UK Construction Suffers Deepest Decline in Over Five Years

The construction PMI fell sharply to 39.4 — the lowest since the pandemic — with housing particularly weak at 35.4. Uncertainty ahead of the Budget led investors to delay projects and reduce risk exposure.
Why it matters: Construction is one of the most volatile sectors for payment behaviour; downturns increase late payment risk and supplier exposure.

Businesses Cut Jobs at Fastest Pace Since the Pandemic

Employment fell 1.8% in November, with a further decline expected next year. Unemployment has hit 5%, driven partly by collapsing business confidence.
Why it matters: Weaker employment reduces demand and increases the likelihood of slower payments, especially in consumer-facing sectors.

Hospitality Sector Warns of Further 100,000 Job Losses

UKHospitality says rising minimum wage and higher business rates could cost another 100,000 jobs, after the sector already lost the same number since October 2024.
Why it matters: Hospitality is highly reliant on trade credit; closures and job cuts directly raise credit default risks for suppliers.

Consumers Increasingly Concerned About the Survival of Small Businesses

NFU Mutual reports more than three-quarters of adults are worried about the future of small firms, despite 90% shopping with them recently.
Why it matters: Consumer anxiety translates into reduced discretionary spending, impacting SME cash flow and payment reliability.

Youth Entrepreneurship Rising but Finance Remains a Barrier

67% of young adults are interested in starting a business, yet traditional lenders reject 50,000 SME loans a year.
Why it matters: New businesses are higher-risk credit customers; suppliers should apply strict onboarding checks.

ECONOMIC & POLICY STORIES

Miliband and Reeves Clash Over Plans to Cut Green Taxes

Internal Government tensions arose over proposals to scrap the Energy Company Obligation levy.
Why it matters: Policy uncertainty makes it harder for SMEs to forecast energy costs, affecting cash-flow planning.

Accountants Expect Budget to Hurt Their Own Businesses

Over 70% of ICAEW members expect a negative impact, with calls for a single VAT rate to simplify the tax system.
Why it matters: Accountants guide SME strategy; low confidence suggests tighter credit management across UK firms.

Unfair Dismissal Compensation Cap to Be Removed

The Government plans to scrap the £118,000 cap, prompting concerns about rising litigation risk.
Why it matters: Higher employment liabilities may lead SMEs to slow hiring and preserve cash, potentially delaying payments to suppliers.

Savers Withdraw £600m from Pensions Over Tax Fears

Speculation about lump-sum changes prompted withdrawals ahead of the Budget; new ISA restrictions for under-65s were confirmed.
Why it matters: Reduced consumer confidence weakens spending in credit-dependent retail sectors.

INDUSTRY STORIES

Balfour Beatty Forecasts Strong Growth from UK Energy Projects

The company expects its order book to grow 20% next year, driven by major infrastructure and grid-upgrade activity.
Why it matters: More subcontracting opportunities for SMEs, but also exposure to long payment terms from prime contractors.

Unilever Completes Demerger of Ice Cream Division

Magnum Ice Cream Co begins trading Monday; Unilever will then consolidate its own shares.
Why it matters: Restructures often lead to contract reviews and revised payment terms.

University of Greater Manchester Investigated for Governance Failures

Senior staff have been suspended amid allegations of misconduct and fraud.
Why it matters: Suppliers may experience payment delays or procurement freezes during investigations.

Meta Cuts Metaverse Spending by Up to 30%

Layoffs are expected as Meta scales back its VR ambitions following investor pressure.
Why it matters: SMEs in digital, creative and tech supply chains may see reduced contract volumes.

EU Opens Antitrust Probe into Meta AI Integration on WhatsApp

Concerns focus on whether rival chatbots are unfairly excluded.
Why it matters: SMEs using WhatsApp for customer communication could face changes to features or integration rules.

HOUSING & CONSTRUCTION SPOTLIGHT

House Prices Flat as Annual Growth Slows Sharply

Halifax reports prices rose only marginally in November, with annual growth at 0.7%, the weakest since March 2024.
Why it matters: Slower housing activity suppresses demand for trades, furnishings, and home-improvement suppliers.

ENERGY & INFRASTRUCTURE

Ofgem Approves £28bn Grid Upgrade, Adding £108 to Household Bills

New investments include subsea electrical superhighways and modernised substations.
Why it matters: Higher energy bills reduce consumer spending and increase SME operating costs.

MARKET SNAPSHOT (24-hour view)

Equities

  • FTSE 100: up 0.18% to 9,728.36
  • Euro Stoxx 50: up 0.32% to 5,742.00
  • NASDAQ: flat at 23,505.14
  • S&P 500: flat at 6,857.12

European markets outperformed the US. Analysts note bull markets reaching their third year have historically gained an average of 15% in year four.

Notable corporate moves:

  • Deutsche Bank received a positive outlook upgrade from S&P.
  • Sanofi completed acquisition of Vicebio.
  • JPMorgan remains positive on key European food retailers.

Commodities

Oil: Brent above $63; WTI near $60 as geopolitical tensions offset oversupply concerns.
Gold: Around $4,200/oz, supported by central bank buying.
Copper: Record highs, with forecasts of $13,000/ton by Q2 2026.

Currencies

  • GBP/USD: 1.3343
  • GBP/EUR: 1.1453

Sterling’s current strength reflects short-covering post-Budget; analysts expect some underperformance versus the euro.

Key Themes

  • Geopolitical risks continue to influence oil markets.
  • Markets expect a US rate cut next week.
  • Fiscal policy positioning drives sterling flows.
  • Supply-chain concerns persist due to Ukraine conflict.

️ Insolvency Notices

Appointments of Administrators

  • AEROPAIR LTD
  • ASP WOLVERHAMPTON LTD
  • BOEM LEISURE LIMITED
  • GH PROPERTY II LIMITED
  • OUTERSPACE BUILDINGS LTD
  • VITRIFI LIMITED

Appointments of Liquidators

  • AZU DESIGN LIMITED
  • BINARYBODS LTD
  • BURGESS HODGSON SERVICES LIMITED
  • CASE & SONS LIMITED
  • CIRCUSSTAR LIMITED
  • CULTS CONSULTANCY LTD
  • CULHAM ELECTROMAGNETICS LIMITED
  • ENERGY STRATEGY AND POLICY CONSULTING LIMITED
  • FIDELITY JAPAN TRUST PLC
  • G E ADVISORY SERVICES LIMITED
  • GOGO BA UK LTD
  • GORDON COUTTS LIMITED
  • HEATSELECT LIMITED
  • JAMES MERCER HOLDINGS LIMITED
  • KMJ HOLDINGS LIMITED
  • LITTLE LONDON CONSULTANTS LIMITED
  • MIF I CIP (GP) LIMITED
  • MIF I GP LTD
  • MIF I INVESTORS (GP) LIMITED
  • MIF I NOMINEE LTD
  • PROJECT LISBON LIMITED
  • RIVAH DIGITAL LTD
  • ROBERT FRITH OPTICIANS (WESSEX) LIMITED
  • SPRINGVALE INVESTMENTS LIMITED
  • TELESISEAGLE LIMITED
  • THE HANDYMAN CAN (ABERDEEN) LTD
  • XANADU PROPERTIES LTD

Winding-up Orders

  • NATIONWIDE PPI ADVICE LTD

Petitions to Wind Up (Companies)

  • 1ST CHOICE ANIMALS LIMITED
  • 13109114 LTD
  • AAGRAH FOODS LIMITED
  • ADELINERECRUITS LTD
  • AIFILIA LTD
  • ALBURY HILLS LTD
  • ALFRESCO KITCHENS LTD
  • ALPHA HOTEL MANAGEMENT LTD
  • ARDENT STAFFING PAYROLL LTD
  • AVA DRYLINERS LTD
  • BANKSIDE COMMERCIAL LIMITED
  • BNW TECHNOLOGY LTD
  • BOND LAND CONSULTANTS LIMITED
  • BUSY SECRETARY SERVICE LIMITED
  • CJ&M MAINTENANCE SOLUTIONS LTD
  • CLINICO CLEANING SERVICES LTD
  • CONSTRUCTION BY HAND LIMITED
  • DOWLETT CONSTRUCTION LIMITED
  • DSG EUROPE LTD
  • EL SPARKLE LIMITED
  • FH CAPITAL LIMITED
  • FPD LOGISTICS LTD
  • G05 LIMITED
  • GIVETREE LTD
  • H & S CAR & COMMERCIALS LIMITED
  • HJ JOINERY LTD
  • HYDRATE DRINKS GROUP LIMITED
  • J&C BUSINESS (UK) CO., LIMITED
  • J2 ELECTRICAL LIMITED
  • JLE MARKETING LTD
  • LAFFEY’S LIMITED
  • LAKE HOUSE CONSTRUCTION SERVICES LIMITED
  • L.A.R MANAGEMENT LTD
  • LIAKADA IMPORTS EXPORTS LTD
  • LOCATION SUPPORT SERVICES LTD
  • LONDON RED AND BLUE LTD
  • LONGWOOD LTD
  • MAIN-TEL (NE) LIMITED
  • MARMION MEADOWS LTD
  • MARIA TRADERS LTD
  • MARPLE HOUSE PROJECT MANAGEMENT LIMITED
  • MIDLANDS CIS LTD
  • MIDWEST COMMODITIES LIMITED
  • MIDS SERVICES LTD
  • MMF CAR REPAIRS LIMITED
  • MONEYMOVR LIMITED
  • MUSIC MANAGEMENT LTD
  • NATIONAL ADVERTISING LIMITED
  • NEWLIFE BUILDING LIMITED
  • NLD (OPERATIONS) LTD
  • PUBOLA LIMITED
  • RESTEEMED LTD
  • RSM SECURUS LTD
  • SAAM CONSULTANCY LIMITED
  • SPS PAYROLL UK LTD
  • STAR KEY STAFFING LTD
  • STYG RAIL LTD
  • THE GOURMET SANDWICH AND COFFEE COMPANY (W.G.C.) LIMITED
  • THERGI LTD
  • THORPE SPRING LTD
  • UDO LINK LIMITED
  • VISION VALUES COMMUNITY HOLDINGS LTD
  • W&S SERVICES SUPPORT LTD
  • ZTT DRYWALL LTD

Worried about late-paying customers?

With confidence falling, insolvencies rising and cash-flow pressure increasing across every major UK sector, now is the time to protect your business. CPA’s CreditCare service monitors your customers, flags risk early, and supports fast recovery of overdue accounts. To strengthen your credit control, call us on 020 8846 0000 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.