Business news 8 December 2025

A packed news cycle today shows rising pressure on businesses and households as new tax measures, frozen thresholds and regulatory changes reshape the economic landscape. Hiring remains subdued, property markets are shifting, and sectors from hospitality to energy are warning of instability. For SMEs trading on credit, today’s stories highlight greater payment risk, more fragile consumers and increasingly strained supply chains.

James Salmon, Operations Director.

SME-FOCUSED NEWS

Salary sacrifice cap to hit 3.3m pension savers

The Chancellor’s Budget will cap tax-free salary sacrifice pension contributions at £2,000 per year from 2029, meaning 3.3m workers will begin paying National Insurance on contributions above that level. HMRC expects the change to raise £4.8bn in its first year, prompting warnings from pensions experts that it could worsen the UK’s long-standing undersaving problem. Women, who already accumulate smaller pension pots on average, are expected to be disproportionately affected.

Success is now a liability in Britain

PKF Littlejohn partner Stephen Kenny argues that the UK’s economic environment has become so unpredictable that many entrepreneurs are considering relocating. Despite talk of a fairer tax system, the recent Budget delivered only narrow tweaks to EMI and EIS rules, failing to provide broader stability. Kenny warns that inconsistent policymaking is turning business success into a liability and undermining investment confidence.

Britain cannot afford to keep shrinking the tax base

A Telegraph analysis argues that Britain’s overall tax burden is hitting an all-time high while basic-rate taxpayers face some of the lowest burdens in the developed world. Economist Gavin Rice says the freeze on thresholds is pushing too many middle earners into higher rates, putting excessive pressure on high earners who may choose to leave or reduce work. He argues the system needs rebalancing to keep the UK’s most productive workers contributing.

Labour voters prefer customs union over tax hikes

A Savanta poll for the Liberal Democrats found that 67% of likely Labour voters—and 52% of all UK adults—prefer rejoining a customs union over facing further tax increases. Despite this, the Prime Minister has rejected calls to reconsider the customs union, instead opting for £26bn of tax rises in the Budget. Critics argue that reconnecting with the EU would boost growth, while the Liberal Democrats have tabled a bill seeking a parliamentary vote on the issue.

Festive side hustles: Know your tax

With the festive season approaching, HMRC has reminded people earning extra income that the first £1,000 is tax-free under the trading allowance, but anything above must be declared. Workers who exceed that amount must register for self-assessment and file by January 31st next year. HMRC emphasised that selling old possessions is not the same as trading and that individuals must keep accurate records.

House prices hit record high in November

Halifax reports that the average UK home has reached a record price of £299,892, although growth has flattened month-on-month. Affordability is at its best level since 2015 because mortgage costs have eased as lenders cut rates. However, there is a strong regional divide, with Northern Ireland seeing nearly 9% annual growth while southern regions continue to stagnate.

PM criticised over North Sea windfall tax

Industry leaders say the Prime Minister was wrong to claim that the windfall tax only applies to excess profits, noting that the levy now applies even when profits are normal. Labour has raised the overall tax burden on the industry to 78% and extended the measure to 2030. Analysts warn this sends the wrong signal to energy investors and misrepresents how the levy operates.

Westminster’s lack of credibility raising borrowing costs

Peel Hunt’s chief economist, Kallum Pickering, argues that investors are losing faith in UK policymaking, resulting in a “moron premium” on government borrowing—now the highest in the G7. He says markets are more concerned about policy unpredictability than the UK’s growth prospects. Poorly designed fiscal choices risk further entrenching economic hardship in regions already struggling.

Reeves escapes ethics probe

Chancellor Rachel Reeves will not face investigation by the Prime Minister’s ethics adviser over claims she misled Parliament about the public finances. Nigel Farage had accused her of breaching the ministerial code, but the adviser said such matters fall outside his remit when they involve collective government decisions. Reeves insists she has been transparent about the state of the economy.

Interest rate cut hangs in the balance

Markets expect the Bank of England to cut rates by 25 basis points next month, but economists now warn the decision could be much closer than assumed. Recent surveys show inflation expectations rising, which may make some MPC members reluctant to ease policy. Analysts say Governor Andrew Bailey’s stance will be decisive, with upcoming inflation data likely to tip the balance.

Threshold freeze pushes workers into higher tax

More middle-income earners—including teachers, police officers and skilled tradespeople—are expected to be dragged into the 40% tax band as wage growth meets inflation while thresholds remain frozen until 2031. Critics say this stealth tax disproportionately affects ordinary workers, with unions preparing new strike ballots over pay and funding pressures. Supporters argue freezes help raise revenue without headline tax increases.

Hospitality sector struggles with tax burden

Hospitality leaders say the Budget has failed to deliver real business rates reform, leaving pubs and hotels facing steep increases in their rateable values—some of which could rise fivefold by 2029. They warn this will accelerate closures and push more venues into distress, undermining communities and local economies. The Sunday Times notes that as legitimate venues close, criminal groups are increasingly filling the vacuum with illicit businesses.

Concerns over HMRC tax-dodger reward scheme

HMRC’s new whistleblower reward programme will offer up to 30% of recovered tax where reports lead to at least £1.5m being collected. Small businesses fear it could encourage false or malicious reports, triggering unnecessary investigations. Critics say the scheme must include safeguards to prevent abuse and avoid overwhelming honest firms.

300,000 Brits to lose work-from-home tax relief

The Government will abolish the work-from-home tax relief in 2026, meaning 300,000 people will see higher annual tax bills. Basic-rate taxpayers will pay an extra £62 a year, while higher earners will pay up to £140. Critics say the removal adds further strain at a time of rising living costs and wage stagnation.

Businesses hit by package tax payment blunder

Nearly 500 businesses were incorrectly charged multiple times under the Government’s Extended Producer Responsibility scheme, with some seeing withdrawals in the hundreds of thousands. Benchmark Drinks had three identical payments taken totalling £700,000, and refunds had still not been received after the promised date. Firms say the error has caused major cash-flow disruption at a critical trading time.

FCA set to boost UK investment culture

The FCA plans to shift from generic warnings to more tailored investment guidance to encourage more consumers to invest rather than rely on cash savings. It will allow firms to make personalised recommendations based on consumer characteristics and will soon update the definition of professional investors. The regulator wants to help close the UK’s investment gap and deepen participation in capital markets.

Retail crisis hits charity shops

Charity retailer Scope has already closed 56 shops this year and expects 21 more closures in 2026 as rising costs and falling footfall squeeze margins. The Charity Retail Association says many other charities are considering similar measures, and Cancer Research UK plans to close almost 200 stores. Sector leaders warn that even charity operators, once seen as relatively stable tenants, are now in distress.

Training boost for young job seekers

The Government has announced an £820m programme to support nearly one million young people on universal credit with training and work placements. Around 350,000 will receive sector-specific training, and 55,000 guaranteed jobs will be created by spring 2026. Ministers say the plan aims to reverse the rising number of young people not in employment, education or training.

OBR warns of alarming borrowing path

OBR officials told MPs that government debt is on a concerning upward trajectory, rising from £2.8trn today to a forecast £3.5trn by 2031. The interest bill alone will hit £750bn over that period. Critics say the Chancellor has misrepresented debt trends and must be clearer about her fiscal plans after a series of Budget leaks.

Venues face higher tax bills

Concert arenas such as the O2 face rateable value increases of up to 300%, a move that industry analysts say could more than double ticket prices within three years. Several major venues—including those in Manchester and Wembley—are projecting multi-million-pound increases. Sector leaders warn that some sites will not survive, risking job losses and reduced cultural activity.

Pubs face £160m tax increase

More than 80 pub executives have written to the Chancellor accusing her of misleading the industry about the impact of business rates changes. They say community pubs could see rates rise by more than 60%, while other sectors receive far smaller increases. The industry argues the adjustments will accelerate closures unless a more generous discount is introduced.

Ministers urged to close £2bn motor-finance loophole

MPs want ministers to address a loophole that lets non-bank lenders offset compensation payouts against taxable profits in the upcoming motor finance redress scheme. Banks lost this right in 2015, meaning specialist lenders could save as much as £2bn in tax over two years if the rule remains. Critics say this creates an uneven playing field and deprives the Treasury of essential revenue.

Windfall tax costing jobs, says Ineos

Ineos Energy chairman Brian Gilvary says the 78% tax rate on North Sea profits is driving investment out of the UK and threatening thousands of skilled jobs. He argues the levy, extended to 2030, is rooted in ideology rather than economic reality and is accelerating the decline of the basin. UK tax receipts from the North Sea have already halved since 2022.

Hiring subdued amid Budget uncertainty

Recruitment slowed again last month as firms delayed hiring decisions ahead of the Budget, according to KPMG and REC. Vacancies fell for the second year running while jobseeker numbers rose at one of the fastest rates since 2020. Although wages increased for permanent roles, analysts warn the labour market remains stuck in contraction.

Firms take “low hire, low fire” approach

BDO reports that businesses are freezing recruitment and avoiding layoffs as they wait for clarity on economic direction. The firm’s employment index has dropped to its lowest level since 2011, while output in the services sector has seen its sharpest monthly fall since 2022. Analysts warn that the usually strong Christmas period has failed to materialise.

Housing survey highlights rise of the “forever renter”

First-time buyers are now older, more indebted and more likely to take 30-year mortgages, according to the English Housing Survey. Only 42% of renters believe they will ever own a home, down from 45% before the pandemic. Analysts warn that rising deposits and stretched borrowing are leaving younger buyers more vulnerable to shocks.

London homeowners see record losses

Fourteen percent of London sellers made a loss in 2024, up from 6% in 2016, reflecting a sharp correction in parts of the capital’s market. First-time buyers now make up half of all purchases, often due to discounted prices in weaker segments. Analysts expect further stagnation because of new tax measures, including higher council tax for £2m-plus homes.

Capital faces office space crisis

London has lost 14m sq ft of office space since 2018, and more than half of what remains could be obsolete by 2030. Knight Frank projects an 11m sq ft shortfall in prime space by 2028, far exceeding what is currently in development. The firm says without faster refurbishment incentives, London risks losing investment and business activity.

Energy bill warning over Sizewell C

Green entrepreneur Dale Vince says the Government’s promised £150 bill reduction will be wiped out by the upfront costs of building the Sizewell C nuclear plant. He claims the project’s levies will more than negate the savings, although ministers insist the impact will be just £1 per month during construction. The dispute underscores uncertainty around future household energy costs.

Lammy announces corruption crackdown

Justice Secretary David Lammy will unveil a new anti-corruption strategy including £15m of extra funding for the City of London Police and a summit on illicit finance. The plan aims to curb bribery, improve transparency in political donations and tighten oversight of professional enablers. Lammy says those who help criminals hide dirty money must be rooted out.

MARKET SNAPSHOT

US Markets

The S&P 500 rose 0.2% to around 6,875, supported by expectations of a Federal Reserve rate cut next week. The index remains just below its late-October record. Tech stocks rose 0.4%, although still off recent highs. The NASDAQ also benefited from this sector-wide lift. Ulta Beauty outperformed after strong quarterly results.

Netflix shares fell following news of its $83bn acquisition of Warner Bros Discovery.

Europe

Ferrari slipped after a Morgan Stanley downgrade citing limits on volume growth.
Bayer rose following a new overweight rating from JPMorgan.
Sanofi fell after being cut to neutral.

Saint-Gobain cancelled 4.2m shares.
TotalEnergies began trading ordinary shares directly on the NYSE under its TTE ticker.

Currencies

Sentiment across G7 markets leaned risk-positive due to anticipated rate cuts. This typically supports sterling modestly, though full confirmation requires live market data.

Commodities

No major movements reported across gold or oil. Bloomberg Intelligence noted asset sales in the US shale sector, including Comstock Resources’ $430m divestment, aimed at deleveraging.

Crypto

Bitcoin has fallen 3% year-to-date while the S&P 500 is up over 16%. ETF inflows have slowed and sentiment indicators show weakness, reversing the earlier surge above $126,000.

INSOLVENCIES

Winding Up Orders

• ASSENT BUILDING COMPLIANCE LIMITED
• LB BUILDING CONTROL LIMITED
• OCULUS BUILDING CONSULTANCY LIMITED
• R. ROBERTS & SONS LIMITED

Winding Up Petitions

• AR WATSON LTD
• BESPOKE BOILER INSTALLATIONS LTD
• BLUE CORE LIMITED
• GOGO VISION LTD
• HEATSAFE 247 LTD
• KIKKAR ADVISORY LTD
• M.H STAR BUILDERS LIMITED
• M&B ART AND TRADE LTD
• MEPFIX LTD
• MIDNIGHT’S CHILDREN LIMITED
• ORDE CAFES LIMITED
• ROCKETSHIP911 LTD
• ROSEDENE FARM LTD
• SMART QUEST 84 LTD
• STEPHEN GROUNDWORK’S LIMITED
• TQ PARK LIMITED
• VERTIGO TQ HOLDINGS LIMITED
• YAAR BAR LIMITED

Appointments of Administrators

• HETTON SOCIAL CLUB LIMITED
• JL20 RESTAURANTS LTD
• WARWICK WARD (MACHINERY) LIMITED

Appointments of Liquidators

A & A PLASTICS LIMITED
ACG BROKING SERVICES LIMITED
ARA-RANALDI CONSULTANCY LTD
BAMMAS LLP
BILLOWES CONSULTANCY LTD
BONUMCORPUS (NO. 52) LIMITED
CAMPBELLS DISPENSARY LIMITED
CARN DEVELOPMENTS LTD
CARROLL & TAYLOR LIMITED
CARUS TRAVEL LIMITED
CLOVERDALE MERCHANTS LIMITED
C.O.B.ENGINEERING LIMITED
DI INTERNATIONAL LTD
ENSCO 898 LIMITED
ENSCO 1478 LIMITED
FARFELU LIMITED
GOUGH MEADOWS INTERIORS LIMITED
HOAREHOUSE LIMITED
ILIOSS HOLDINGS LIMITED
IN PLACE (COOMBE) LIMITED
INSIGHT PICTURES LIMITED
JDOT LIMITED
JEAN-PIERRE NOEL LIMITED
K & E WHITSON LTD
LIONTRUST INVESTMENT MANAGEMENT LIMITED
LIONTRUST PORTFOLIO MANAGEMENT LIMITED
MAGIR LIMITED
METCALFE KIME & COMPANY LIMITED
M DODKIN CONSULTANCY LIMITED
MODD CONSULTING LIMITED
N G PROPERTIES LTD
OTR HOLDINGS LIMITED
PAVAN PATEL CONSULTING LIMITED
PEGASUS EXTERNALS LIMITED
PRO-WILD PRODUCTIONS LTD
SANDAFAYRE GROUP LIMITED
S. & J. GRAVESON LIMITED
SHORTLANDS (PLASTERING & DRY LINING) LIMITED
SPEEDWAY LIMITED
SZP COMMS LTD
WADSWICK MANAGEMENT & CONSULTING LTD

CPA MEMBERSHIP

If late payments are starting to build up, you do not have to face them alone. CPA members receive CreditCare monitoring, access to debtor-risk information and fast recovery support when customers stall or go silent. To discuss how we can strengthen your cash flow, call 020 8846 0000.

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,