Business news 6 February 2026
UK businesses are digesting a finely balanced shift in economic conditions. Interest rates remain on hold, but the Bank of England is clearly edging closer to cuts as inflation cools and unemployment rises. Markets have turned volatile, sterling has weakened, and global investors are reassessing technology and AI valuations. At the same time, SMEs face mounting compliance pressure from digital tax reforms and a fresh wave of insolvency activity highlights ongoing cashflow stress across multiple sectors.
James Salmon, Operations Director.
SME-focused & economic stories
Bank of England holds rates as jobs outlook weakens
The Bank of England voted 5–4 to hold the base rate at 3.75%, the lowest level since early 2023. Governor Andrew Bailey suggested inflation, currently at 3.4%, is likely to fall back towards the 2% target by April, opening the door to rate cuts later this year. However, the Bank’s latest forecasts show unemployment rising to 5.3%, with almost 110,000 more people expected to be out of work than previously projected.
Why it matters: Borrowing costs may ease later this year, but weaker hiring and rising unemployment could weigh on customer demand and payment reliability for SMEs.
Pound slides as markets price in earlier rate cuts
Sterling fell sharply following the BoE decision, with investors reacting to the unexpectedly close vote split and political uncertainty. Options markets point to the most bearish sentiment on the pound in two months, with some strategists targeting a move towards 90 pence per euro. Gilt yields also fell, reflecting expectations of looser monetary policy ahead.
Why it matters: A weaker pound raises import costs and squeezes margins, while currency volatility can complicate pricing and cashflow planning for SMEs trading internationally.
UK house prices rebound more strongly than expected
House prices rose 0.7% in January, according to Halifax, pushing the average UK home price above £300,000 for the first time. Annual growth accelerated to 1.0%, far exceeding expectations after December’s decline.
Why it matters: Higher house prices can support consumer confidence, but rising living costs may limit discretionary spending and increase financial pressure on customers.
Construction shows early signs of stabilisation
The construction PMI rose to 46.4 in January from 40.1, indicating a slower pace of contraction. While housebuilding remains the weakest area and job losses continue, more than a third of firms expect output to rise this year as investment sentiment improves.
Why it matters: A stabilising construction sector may reduce knock-on insolvency risk, but delayed payments and tight margins remain a concern for suppliers.
Tax, regulation & policy
SMEs slow to adopt digital tax tools
Despite HMRC’s push to expand Making Tax Digital, many SMEs remain cautious over cost and complexity. Research suggests SMEs already spend around £63,000 a year on financial administration, and nearly half do not plan to increase digital tool usage, even though digital invoicing can cut admin time by 41%.
Sole traders warned ahead of MTD income tax rollout
HMRC has reminded more than 860,000 sole traders and landlords that Making Tax Digital for Income Tax begins in April. Those earning over £50,000 from self-employment or property will need to keep digital records and submit quarterly updates, though penalties will be relaxed in the first year.
More workers may be hit by salary sacrifice cap
The Office for Budget Responsibility estimates up to 4.3 million more workers could be affected by the government’s £2,000 salary sacrifice cap than initially expected. Employers may respond by altering pension schemes or wages, creating uncertainty around take-home pay.
Debate grows over potential UK wealth tax
Economists and politicians are increasingly discussing the possibility of a UK wealth tax, although the Chancellor has pushed back on the idea. Proposals range from modest levies on assets above £10 million to higher rates on ultra-high net worth individuals.
Why it matters: While unlikely in the near term, tax uncertainty adds to long-term planning challenges for business owners and investors.
Industry & corporate news
Big tech ramps up AI spending to unprecedented levels
Alphabet, Amazon, Meta and Microsoft have forecast combined capital expenditure of around $650bn in 2026, largely driven by data centre and AI infrastructure investment. Amazon alone expects to spend $200bn this year, far exceeding market expectations.
Why it matters: Massive AI investment may reshape productivity and competition, but energy costs and economic distortion risks could spill over into wider markets and pricing.
OpenAI launches ‘Frontier’ platform
OpenAI has unveiled Frontier, a new platform designed to simplify deployment of AI agents for businesses, including integration with rival systems such as Anthropic.
Why it matters: Easier AI adoption could benefit SMEs over time, but cost control and data security will be key considerations.
Rio Tinto and Glencore abandon merger talks
The two mining giants walked away from discussions over valuation disagreements, triggering sharp falls in both share prices and weighing on the wider mining sector.
Quiz enters administration again
Fashion retailer Quiz has entered administration for the third time in six years, with 109 job losses. Stores remain open but are holding clearance sales and refusing refunds after weak Christmas trading.
Why it matters: Repeat retail failures underline the risks of extending credit in consumer-facing sectors where cashflow remains fragile.
Financial services & employment
FOS complaints fall after fee overhaul
Complaints to the Financial Ombudsman Service fell to a two-year low after new rules introduced fees for professional representatives. Regulators report better-evidenced cases and fewer abandoned complaints.
Why it matters: Stronger complaint discipline may reduce regulatory friction and uncertainty for businesses operating in regulated sectors.
Degree apprenticeships gain momentum
Demand for degree apprenticeships has surged as graduate job vacancies fall. Employers are increasing apprentice hiring while cutting back on traditional graduate roles.
Why it matters: Apprenticeships may offer SMEs a more cost-effective route to skills while managing long-term wage pressure.
Market snapshot
Market snapshot – volatility rises as tech selloff deepens
Global markets have gone through a sharp repricing over the past 24 hours, driven by a combination of weak US jobs data, heavy selling in technology stocks and growing unease over the scale and cost of AI investment.
UK & Europe
European equities sold off on Thursday, with the Stoxx Europe 600 down 0.9%, led by sharp losses in mining, banking and auto stocks. Mining shares were hit particularly hard after silver suffered its biggest one-day fall of the year, dragging broader metals prices lower. The weakness came despite some strong individual earnings, including ArcelorMittal, which hit its highest share price since 2011.
In the UK, the FTSE 100 slipped to 10,308, as heavyweight miners and financials weighed on the index. Gilt yields fell following the Bank of England’s closely split 5–4 vote to hold rates, reflecting growing expectations that rate cuts are approaching as inflation cools and growth weakens.
United States
US markets extended their decline, with technology stocks firmly at the centre of the selloff. The Nasdaq 100 fell 1.4%, marking its worst three-day run since April, while the S&P 500 closed 1.2% lower. Volatility picked up, with the VIX hovering around 22, a level that signals rising investor anxiety.
Private US jobs data disappointed, reviving fears of an economic slowdown at a time when valuations—particularly in AI-linked stocks—remain stretched. Heavy selling hit software, crypto-exposed names and large tech firms, with Amazon sliding sharply in late trading following its results and massive new capex guidance.
Asia-Pacific
Asian markets were volatile overnight, reflecting the global tech rout. South Korea’s Kospi index plunged more than 5% at one point before clawing back losses to close around 2% lower. Foreign investors recorded their largest ever one-day sell-off of Korean equities, highlighting the scale of risk aversion.
Hong Kong markets weakened further, with the Hang Seng Tech Index now down 20% from its October peak, officially entering bear market territory. Mainland Chinese stocks were more subdued, while Japan’s Nikkei remained elevated but sensitive to global tech sentiment.
Currencies
Sterling was one of the weakest major currencies following the Bank of England decision. The pound fell sharply against the dollar on Thursday, marking its biggest single-day drop since September, as markets repriced the path of UK interest rates.
- GBP/USD: 1.358
- EUR/GBP: 0.869
Currency markets remain volatile as traders balance softer inflation against rising unemployment risks in the UK.
Commodities
Oil prices fell after easing geopolitical tensions, with the US and Iran agreeing to talks in Oman and Saudi Arabia cutting oil prices for Asian buyers.
- Brent crude: $68.33 per barrel
- WTI crude: $64.08 per barrel
Precious metals saw extreme moves. Silver recorded its largest one-day fall of the year as investors rushed to lock in profits, dragging gold lower as well. The sharp selloff fed directly into mining stocks globally.
What markets are telling us
Markets are increasingly uneasy about three things:
- The sustainability of AI-driven valuations, given the sheer scale of capital spending now planned
- Economic momentum, particularly in the US, as labour market cracks begin to show
- Central bank timing, with rate cuts getting closer but growth risks rising faster
For businesses, this environment points to continued volatility, tighter financial conditions beneath the surface, and a greater risk of sudden shifts in confidence—particularly in sectors exposed to discretionary spending, construction, technology supply chains and commodities
Insolvency notices
Below is a consolidated list of recent insolvency activity, alphabetised and grouped.
Petitions to wind up
- ABERCARN STORE LTD
- A E M DEMOLITION LIMITED
- ADRIEL CARE LIMITED
- AHHCH LIMITED
- AIRLET LIMITED
- ARJ INVESTMENTS LIMITED
- CAIRD PECKFIELD LIMITED
- CENTRE FOR INTEGRATED AND FUNCTIONAL MEDICINE LIMITED
- CHARON CONSTRUCTION LTD
- D.E.P. CONSTRUCTION SERVICES LTD
- DERBYOAKES (WEST LONDON) LIMITED
- DOMESTEC HOME APPLIANCE LTD
- EPRCO CAPITAL LIMITED
- ETHICAL POWER GROUP HOLDINGS LTD
- ETHICAL POWER INTERNATIONAL LIMITED
- ETHICAL POWER INVESTCO. LIMITED
- ETHICAL POWER SECURITY LIMITED
- EURO PRIME LUX BUILDING LTD
- FENTON LANE ENERGY LIMITED
- GEN CONSULTING SOLUTION LTD
- GRED GLOBAL LTD
- IGR-R LTD
- INTSOL PAYROLL LTD
- JETKING LIMITED
- LONG ASHTON PUB DINING LIMITED
- MAXTRANS LIMITED
- MITHRA STORES LTD
- NK FIRE & SECURITY LTD
- PAYLOC LIMITED
- PICROSS ENGINEERING LIMITED
- RAPHA CARE & SUPPORT SOLUTIONS LIMITED
- SAMES GROUP LTD
- SQUARE ROOT SOFTWARE LIMITED
- SUSTAINABLE ETHICAL HOLDINGS LIMITED
- T&C TRAVEL LIMITED
- TASTRO LTD
- VEGASSA UK LIMITED
- VERTEX FINANCIAL SOLUTIONS UK LIMITED
Appointments of administrators
- M.P.M. CONSUMER PRODUCTS LIMITED
- SG UK INTERNATIONAL LIMITED
Appointments of liquidators
- A D P INNOVATIONS LIMITED
- ANDREWSOFT LIMITED
- BENJAMINSPENCER LTD
- BOULTBEE & CO LIMITED
- CHRIS EAST TRADING LIMITED
- CONTENT & CREATIVE LTD
- DAFFODIL DEVELOPMENTS LTD
- ENERGISEHR LTD
- HYDROPHALT (UK) LIMITED
- ISZ CONSULTING LIMITED
- ITG CONSULTING LIMITED
- JAAR INFO LTD
- LAXTON PROPERTIES (NEW HOMES) LTD
- LUCY & MARTIN (RECYCLING) LIMITED
- MDO PROPERTY DEVELOPMENT LIMITED
- MELLUISH BROS. LIMITED
- MOONDANCE CONSULTANTS LTD
- NORTH EASTERN ROOFING LIMITED
- NONLINEAR THINKING LIMITED
- PARAMOON SOLUTIONS LIMITED
- POINT PRODUCTIONS LIMITED
- POTTER GROUP LTD
- QUALSERV CONSULTING LIMITED
- SATIZONE LIMITED
- SOBA FUTURES LTD
- SOUTH BUCKS HOSPICE
- TRANSMISSION INVESTMENT LLP
- TWL CONSULTING LIMITED
- UBERIOR (GLASGOW) LIMITED
- UBERIOR (WEST) LIMITED
Winding-up orders
- PREMVIEW PROPERTIES LIMITED
How CPA membership could help
With insolvencies rising, payment behaviour tightening and compliance demands increasing, strong credit control is no longer optional. CPA members benefit from early warning tools, professional overdue account recovery and ongoing monitoring that helps protect cashflow before problems escalate.
Just call Peter Uwins, CPA’s National Sales Manager, on️ 020 8846 0000 (business hours) 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