Business news 6 November 2025
UK business confidence strengthens despite looming tax changes, as think tanks, the CBI and former chancellors urge Rachel Reeves to balance reform with growth.
James Salmon, Operations Director.
📈 Business confidence rebounds as tax reform debate heats up
UK businesses brushed off fears of tax rises in October, with S&P Global’s PMI rising to 52.2, signalling renewed growth in the private sector.
Despite uncertainty ahead of the Chancellor’s Budget, firms reported strong demand and lower input costs — the best combination in nearly a year.
Economists said businesses are showing “real resilience” amid fiscal headwinds.
Why it matters: Rising activity suggests firms are still spending and extending credit, even as tax pressures loom — a positive sign for SME cashflow.
🧾️ Think tanks unite for tax reform
Nine major think tanks — from the LSE’s CenTax to the Tony Blair Institute — have called for sweeping tax reform to improve fairness and productivity.
Proposals include abolishing stamp duty, linking council tax to property values, and simplifying HMRC rules.
Why it matters: A simpler, fairer system could reduce compliance costs and improve payment efficiency for SMEs.
🚗 Electric vehicle drivers face new pay-per-mile levy
From 2028, EV drivers will pay 3p per mile under a new Treasury plan to replace falling fuel duty revenues.
Hybrid drivers will pay slightly less, but the policy marks the start of a long-term shift to road pricing.
Why it matters: SMEs using EV fleets will need to review cost forecasts and credit terms for delivery contracts.
🚧 Treasury faces £500m risk over vehicle ownership tax
The SMMT warned that taxing employee car ownership schemes could cost the Treasury £500m in lost receipts and hit carmakers’ sales.
Why it matters: Automotive suppliers and finance firms could face slower B2B payments if the policy suppresses sales.
🧑⚖️ Osborne: ‘Big’ tax rise easier than many small ones
Ex-Chancellor George Osborne told MPs that using one of the “big three” taxes — income tax, VAT or NI — would be the cleanest way to raise revenue, warning against “death by a thousand taxes.”
Why it matters: Policy clarity helps firms plan pricing and credit strategies with fewer sudden fiscal shocks.
🧹 PPE Medpro owes £39m in unpaid taxes
Michelle Mone-linked PPE Medpro, now in administration, owes £39m in unpaid tax — part of £148m owed to government after a failed PPE contract.
Why it matters: Another high-profile insolvency highlights how public contracts can carry major credit risks.
🤖 MP calls for AI tax to protect jobs
Labour MP Neil Duncan-Jordan proposed taxing firms that use AI to replace human jobs, arguing it could recover lost income tax and NI revenue.
Why it matters: Employers using automation may face higher costs, which could ripple through supply chains.
🏛 BOE to hold interest rates at 4%
The Bank of England will likely keep interest rates unchanged at 4% on Thursday in a closely contested decision as it worries about the inflationary risk of tax rises in the coming budget.
Why it matters: High interest rates continue to pressure small business cashflow costs.
💸️ FCA extends motor finance consultation
The FCA has extended its motor finance redress consultation to 12 December, after heavy backlash from lenders. The scheme could cost up to £15bn.
Why it matters: Lenders under pressure may tighten credit to consumers and small dealerships.
🌍 Energy prices threaten UK’s competitiveness
US ambassador Warren Stephens warned that Britain’s high energy prices threaten its global standing, deterring investment and raising risks of US firms quitting the UK.
Why it matters: Persistent high energy costs can squeeze profit margins and delay supplier payments.
🔌 Ofgem steps in as Tomato Energy collapses
Ofgem is assigning a new supplier for 8,400 business customers after Tomato Energy’s collapse. Credit balances are protected under the supplier of last resort scheme.
Why it matters: SMEs should double-check contract clauses for supply continuity and credit exposure.
💱 FCA moves to regulate crypto sector
The FCA’s new consultation will bring crypto firms under the Financial Services and Markets Act, tightening audit and governance standards.
Why it matters: Compliance costs may rise, but stronger regulation could attract more stable investors.
🧪 Lords warn of UK ‘brain drain’ in science
Peers say Britain’s science sector is losing top talent overseas, urging visa reform and better research funding.
Why it matters: A shrinking innovation base could slow UK tech-sector growth and investment appetite.
📊 Labour’s deregulation plan ‘will take years’
NIESR’s Stephen Millard says Labour’s deregulation agenda won’t lift growth before 2029. UK GDP growth is forecast to drop from 1.5% to 1.2%.
Why it matters: Slower growth means slower payment cycles and rising credit risk in late 2026–27.
🌏 Supreme Court questions Trump tariffs
The US Supreme Court appeared skeptical of Trump’s tariffs, though other routes remain open — leaving trade partners uneasy.
Why it matters: Global trade volatility can impact exporters and UK firms with US exposure.
📊 Market snapshot
Global equity markets rebounded overnight:
- FTSE 100 hit a record 9,777.08, supported by strong UK PMI data.
- US stocks advanced after the Supreme Court tariff hearing eased tension.
- Asian markets gained 1.1% as buyers returned after tech-led declines.
Commodities saw mild stabilisation:
- Brent crude hovered around $64, with Saudi Arabia cutting prices.
- Gold stayed firm above $3,980, while aluminium hit a 12-month high.
- European gas prices eased thanks to increased supply.
Currencies were mixed:
- Pound traded near $1.31, showing technical signs of rebound.
- Dollar slipped slightly after a five-day rally.
Summary: Markets welcomed signs of growth and steadier inflation, while energy and regulatory issues continue to dominate UK business sentiment.
🏷️ Have CPA in your corner
With tax reform on the horizon, small businesses need a partner who understands how policy shifts affect payment behaviour. CPA membership helps you safeguard your cashflow, stay informed, and act early when credit risks rise. Call us to discuss how we can protect your receivables — before higher taxes tighten liquidity
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.
⚖️ Insolvency round-up
Appointments of Administrators:
- I-Creation 2020 Limited
- Moss Civil Engineering Limited
- Peart Performance Marque Limited
- Pro Grab Hire Ltd
- Thames River Investments Limited
- Thames River Moorings Limited
- TRM Marine Ltd
- UK Pro Group Ltd
- Shuttlewood Marine Limited
Appointments of Liquidators:
- Andrew Dey Limited
- Arch Communications (UK) Ltd
- Assetfinance December (R) Limited
- Asterie Limited
- Brackenbury Engineering Limited
- Caroe Consulting Ltd
- Cerium Consulting Limited
- Cort Engineering Limited
- Danamere Employee Benefits Limited
- Elco Heating Solutions Limited
- Endcroft Limited
- HPC Blue Limited
- Huw David Orthopaedics Ltd
- Madalex Limited
- MWSR Consulting Limited
- Onboard Projects Limited
- Pen Hill Chantry Limited
- Pine River Capital Management (UK) Limited
- Red UK Holdco Ltd
- Red UK Midco Ltd
- Sales Connection (UK) Limited
- SF Renewables (Solar) Limited
- Sovereign Carpets (Burnham) Limited
- Temple Manor Homes Limited
- Traverse Advisory Limited
- Whatboy Games Ltd
- Wingplay Limited
Petitions to Wind Up:
- FAA Properties Ltd
- Harbourside Products Limited
- J. & S. Franklin Limited
- Primefit Windows & Doors Ltd
- Properties Northwest Ltd
- Rulecare Properties Ltd
- Stareton Ltd
- ZGLUK Limited