🎇 Business news 5 November 2025
“Remember, remember… the fifth of November — when Britain’s finances caught fire.” As fireworks light up the skies, the sparks are also flying in Westminster. Chancellor Rachel Reeves faces mounting pressure to plug a widening fiscal hole, with warnings that Britain’s debt trajectory is becoming “unsustainable.” The pound has already fallen as fears grow over imminent tax hikes. Meanwhile, small business confidence wavers amid rising costs, shaky markets and talk of higher income tax — all of which could ignite fresh late-payment risks..
James Salmon, Operations Director.
🔥 Tax & Government
Reeves lays ground for income tax rises
Chancellor Rachel Reeves has hinted at raising income tax by 1p–2p to fill a £30bn hole, breaking Labour’s manifesto pledge. Critics warn this could damage public trust and slow growth.
Why it matters: Higher taxes reduce disposable income and may slow invoice payments as cashflow tightens for SMEs.
OBR lowers productivity forecast, deepening fiscal hole
The Office for Budget Responsibility is set to downgrade UK productivity by 0.3 percentage points — a hit of up to £20bn. Reeves could now face a total shortfall of £35–£50bn.
Why it matters: Lower productivity means less output per worker — and weaker demand for SME goods and services.
NIESR warns UK debt “unsustainable”
The National Institute of Economic and Social Research says Britain’s debt is on course to exceed 100% of GDP unless urgent action is taken, urging at least £50bn in measures to restore fiscal stability.
Why it matters: Debt fears can rattle investor confidence and increase business borrowing costs.
Wealthy parents accelerate gifting ahead of IHT raid
Advisers report a rush of asset transfers to children before expected Budget changes to inheritance tax rules, with families using large Potentially Exempt Transfers while they still can.
Why it matters: Uncertainty around wealth taxes can delay investment decisions and reduce spending in high-end SME sectors.
Lawyers warn against LLP tax hikes
Legal leaders say planned changes to LLP taxation could undermine competitiveness. The Law Society warns it would “undermine the growth agenda” and burden an already stretched profession.
Why it matters: Professional services firms often pay suppliers promptly; tax pressure could slow that cycle.
Young entrepreneurs warn of tax hike
A youth business group said a 2p income tax rise could drive talent abroad and stifle start-ups. A recent poll shows 40% of small business owners are already making strategic changes ahead of the Budget.
Why it matters: Confidence among young founders is vital for the UK’s innovation pipeline — and SME supply chains.
💼 SME & Industry
British Business Bank: £150m in loans for aspiring entrepreneurs
The British Business Bank has funded nearly £150m in loans to unemployed individuals since 2012 (22% of Start-Up Loans). A new Fresh Start Guide with DWP and HMRC will be available in 600+ job centres.
Why it matters: New start-ups boost local supply networks and create new clients for small business service providers.
Marks & Spencer profit slump after cyber incident
M&S reported a 99% drop in profit after a major cyber incident disrupted online operations, booking £101.6m in related costs.
Why it matters: Disruption at major clients can cascade through SME suppliers dependent on retail contracts.
JD Wetherspoon sales rise 4.2% in Q1
The pub chain extended its streak of outperforming peers; like-for-like sales rose 3.7%.
Why it matters: Hospitality spending trends help gauge cashflow conditions for food and logistics SMEs.
Barratt Redrow steady on completions outlook
The housebuilder kept guidance unchanged at 17,200–17,800 completions this year.
Why it matters: Stable construction output sustains demand for trades, materials and property service SMEs.
Ferrari revs up profit beat
Ferrari posted €382m quarterly profit (beat), with revenues up 7%.
Why it matters: High-end demand staying strong hints at resilience in luxury and engineering supply chains.
Ryanair lifts passenger numbers by 4.9%
The airline flew 19.2m passengers in October, maintaining a 93% load factor; 12-month total 204.8m (+5.1%).
Why it matters: Travel growth benefits hospitality and small exporters reliant on mobility and tourism.
Novo Nordisk trims growth outlook
The drugmaker lowered expectations amid competition and pricing pressure in obesity treatments, despite strong Wegovy and Ozempic demand.
Why it matters: Pricing pressure may affect UK pharma distributors and contract suppliers.
🌍 Economic & Policy
Pound plunges as tax fears rise
Sterling fell to $1.30 and €1.14 after Reeves signalled tax hikes; the FTSE 100 lost about £25bn in value.
Why it matters: A weaker pound raises import costs and squeezes SME margins.
Bank of England likely to hold rates at 4%
Economists expect a narrow MPC vote to keep rates on hold with inflation at 3.8%.
Why it matters: A hold could stabilise borrowing costs for SMEs already strained by credit rates.
UK state pension least generous in G7
Britain’s state pension replaces just 22% of pre-retirement income (vs. 76% in Italy).
Why it matters: Older customers’ lower spending power affects local businesses reliant on pension income.
London housing crisis: young adults ready to flee
Nearly 50% of Londoners aged 25–45 are considering leaving due to housing costs; two-thirds regularly borrow for housing expenses.
Why it matters: Labour mobility issues make hiring and retention harder for SMEs.
EU enlargement momentum builds
EU foreign-policy chief Kaja Kallas said 2030 expansion is a “realistic goal,” praising reforms in Ukraine, Albania, Moldova and Montenegro; Georgia criticised for democratic backsliding.
Why it matters: A larger EU market could open new trade and supply chain opportunities for UK exporters.
⚙️ Employment
Tories call for Workers’ Rights Bill to be ditched
Conservatives argue Labour’s Employment Rights Bill would hurt output and jobs; the government says it will improve conditions for 15m workers.
Why it matters: Regulatory uncertainty affects hiring decisions and labour costs for small employers.
🧮 Financial Education & Confidence
Regulator backs calls for financial literacy boost
FCA chief Nikhil Rathi supported compulsory financial education from 2028. Barclays research shows two in five adults feel weak in maths, with stronger numeracy linked to better job and financial outcomes.
Why it matters: Better financial literacy can reduce SME client defaults and improve payment discipline.
📈 Market Summary
Technology stocks fell for a second day, dragging major indices. The FTSE 100 slipped 1.26%, the Stoxx 600 lost 0.4%, and Nasdaq futures dipped 0.2%.
Oil steadied with Brent above $64/bbl; copper halted a four-day decline. After Tuesday’s sharp drop, the pound trimmed losses to trade near $1.3044.
Investor sentiment remains cautious amid correction warnings and a jump in the VIX volatility index.
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⚖️ Insolvency Data
Administrations
- M.C.P. Property Services Limited
- TBNG Limited
Liquidations
- Accelerate Agency Ltd
- ATY 007 Ltd
- Barleythorpe Investments Limited
- Bremstone Properties Limited
- DC01 SH Limited
- DRA Services Ltd
- Frostincluded Limited
- JONES AND NPA LTD.
- KADANGA LIMITED
- Kin & Roberts Limited
- Lake House Property Company Limited
- Lidcast Data Limited
- L. and S. Barber (Builders) Limited
- MGV Consulting Limited
- Myriad Medical Limited
- N3TWORK Limited
- Patronus Consulting Limited
- Pentire Property Company Limited (The)
- Pixeltech Ltd
- Purple Hat Consulting Services Limited
- Rebecca Taylor Consultancy Ltd
- Sandmoor Developments Limited
- Siren Property Limited
- Somersal Consulting Limited
- Terada Limited
- Toby’s Sheds Limited
- VHS Plant Hire Limited
Petitions to Wind Up (Companies)
- A F Freeholds Ltd
- AMMCASS Group Limited
- Atlas Health Group Limited
- Childs Electrical Ltd
- First Seller Ltd
- Hardlyever Limited
- IA Play Solution Ltd
- Keith Gunn Electrical Solutions Limited
- Payroll Preah Limited
- S&B Groundwork Ltd
- The Fireplace (Lichfield) Limited
- Tinderbox (Scotland) Limited
- UKC Bodywork Repair Ltd
- Vata Building Contractors Ltd