Business news 7 October 2025

A day of mixed fortunes for UK businesses saw the Conservatives promise sweeping tax cuts for high streets, while new data revealed a sharp fall in construction confidence and softening house prices. Markets remain buoyant, with the S&P 500 hitting new highs amid a global AI investment boom, but volatility in Europe and fresh UK insolvency data underline the strain on smaller firms extending trade on credit.

James Salmon, Operations Director.

Top business stories

1. Conservatives pledge to scrap business rates
At their party conference, the Conservatives vowed to abolish business rates for high street shops and pubs if elected, replacing them with a system aimed at supporting 250,000 local firms. Shadow chancellor Sir Mel Stride said the £4bn policy would help “reignite a culture of entrepreneurship,” while pledging £47bn in public spending cuts to fund it.

2. Starmer leads major trade delegation to India
Prime Minister Keir Starmer is leading more than 100 UK business, academic and cultural leaders to India following the signing of a UK–India free trade agreement. The deal removes tariffs on over 90% of UK goods and is expected to raise wages and lower prices for consumers.

3. Labour faces SME confidence crisis
New polling from Conservatives for Business shows 59% of SME leaders lack confidence in the UK economy, and over half say profitability has worsened since the general election. Many cite higher energy costs and taxation as key pressures.

4. Reeves gains Budget breathing room from inflation
According to Bloomberg, sticky inflation could offer Chancellor Rachel Reeves a fiscal boost, increasing tax receipts and helping to narrow the Budget’s £30bn gap.

5. Construction sector outlook deteriorates
The UK construction PMI fell to 46.2 in September, its lowest since 2022, signalling contraction. Weak optimism, rising costs and project delays ahead of the Budget point to further job losses.

6. Jaguar Land Rover bailout highlights cybercrime costs
Following a cyberattack that halted production, Jaguar Land Rover has secured a £1.5bn government-backed emergency loan to pay suppliers. Experts warn that such bailouts could discourage firms from investing in stronger cybersecurity.

7. Renewable energy overtakes coal globally
Climate think-tank Ember reports that renewables generated 34% of global electricity in the first half of 2025, surpassing coal for the first time — a major turning point for global energy markets.

8. Met Police dismantle massive phone-smuggling ring
The Metropolitan Police have shut down a gang accused of exporting 40,000 stolen phones from the UK to China. The group is believed to have handled nearly half of all stolen devices in London last year.

Market snapshot

UK & Europe:
The FTSE 100 closed marginally lower at 9,479.14 after briefly hitting a record 9,516.83. The FTSE 250 slipped 0.4%. French markets fell sharply amid political turmoil following Prime Minister Lecornu’s resignation, while energy stocks supported modest recovery on Tuesday.

US:
The S&P 500 hit a new all-time high, up 0.4%, marking its seventh consecutive gain. The Nasdaq rose 0.7%, driven by surging tech shares after AMD agreed to supply six gigawatts of chips to OpenAI — sending its shares up 34%, their biggest one-day rise in nine years. Nvidia also announced a $100bn investment in OpenAI.

Commodities:
Gold neared $4,000 an ounce as investors sought safe havens amid global uncertainty. Brent crude traded around $66/barrel after OPEC+ approved a modest production increase.

Currencies:
The euro weakened to below $1.17 amid French instability, while sterling held steady at around $1.3440 against the dollar. GBP/EUR climbed to 1.1520.

The overarching theme is French political instability creating ripple effects across European markets, while US equities continue their strong run and commodities like gold benefit from safe-haven demand.

CPA insight

For small firms trading on credit, today’s mix of fiscal promises and political tension underscores the need for vigilance. With insolvencies still high and interest rates sticky, credit control and recovery processes remain crucial to protecting cash flow through winter.

Just call Peter Uwins, CPA’s National Sales Manager, on 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.

Insolvencies – 7 October 2025

Administrations:

Barony Universal Products Limited; Electropaint Limited; Park House Residential Developments Limited; The Energy Experts (NE) Ltd

Liquidations:

A Hamilton Limited; Athonet UK Limited; Ashford Applications Limited; Arrowpoint Services Limited; Bryan Joseph & Co Limited; Buy To Let Direct Limited; Caldero Limited; Canvas Pixels Ltd; ClapRo Holdings Limited; Conqr Limited; Customs Support Ltd; Devingen Ltd; Devon FD Limited; DKRP Consulting Ltd; First Option Safety Group Limited; First Telecommunications Limited; Gardner & Galen Ltd; IEJ Driveline Consulting Ltd; Koris365 Central Limited; Malcolm Clarke (Steel) Hollinwood Limited; M2H IT Limited; MKER Consulting Legal Limited; New Conduit Consultancy Limited; Nors FB Marketing Ltd; Probably A Pub Company Limited; Risk Tailors Limited; Risborough Associates Limited; Rockfen Limited; Roc Properties Limited; Rusak UK Ltd; Salami Studios Ltd; Shore Property Developments Limited; SJZ Holdings Limited; Squirrels London Limited; Stonechair Ltd; The Infatuation Ltd; Thornline Limited

Winding-up petitions:

Ahuru Homes Limited; Ancoats Street Hotel Ltd; Bradstock Limited; Bristol Coalmining Archives Limited; Business Focus Solutions Ltd; Café By The Lane Limited; Henshaw Lane Ltd; Kaimend Developments Limited; Muora Ltd; Paymob Technology Ltd; Roco Property Development Ltd; Thames Construction & Renovations Ltd; TW Outsourcing Ltd; World Media Rights Limited