Business news 9 February 2026
UUK businesses begin the new week facing a familiar but intensifying mix of pressures. Confidence among consumers and company directors has weakened, growth expectations remain subdued, and cost burdens are rising across tax, energy, fuel, property and employment. While global markets staged a strong rebound at the end of last week, underlying volatility and caution remain evident. For small businesses, particularly those selling on credit, the message is clear: headline resilience masks growing strain on cashflow, payment behaviour and risk.
James Salmon, Operations Director.
SME-Focused & Economic Stories
UK consumer gloom hits decade-long low
Consumer confidence has now been negative for ten consecutive years, with the GfK index falling sharply again in January. Analysts describe a mood of resignation rather than panic, as inflation continues to outpace wage growth and households remain cautious. The prolonged pessimism is dampening entrepreneurial risk-taking and discretionary spending.
Why it matters: Persistent low confidence leads customers to delay spending and payments, increasing invoice ageing and bad debt risk for SMEs.
UK business confidence dips at start of 2026
A KPMG survey shows only 30% of company directors are optimistic about the wider economy, down from 42% in late 2024. Concerns over tax policy and rising costs are growing, even though most directors still believe in their own businesses. The picture is one of resilience under pressure rather than renewed optimism.
Why it matters: When confidence weakens, businesses protect cash by slowing payments, even if trading remains steady.
Economists expect muted UK growth in Q4
Economists expect UK GDP to have grown by just 0.1% in the final quarter of 2025, with weak construction output weighing on activity. The Bank of England has already downgraded its growth forecasts for 2026 and 2027, reinforcing expectations of a slow and fragile recovery.
Why it matters: Low growth typically translates into slower sales and longer payment cycles, tightening SME cashflow.
UK labour market continues to lose momentum
The BDO Employment Index has fallen to its lowest level since 2011, with payrolled employment declining and vacancies back to early-2021 levels. Wage growth has slowed to its weakest pace in nearly three years, signalling a low-hire, low-fire jobs market.
Why it matters: Softer employment conditions reduce income certainty, increasing the likelihood of delayed or irregular payments.
Tax, Cost & Policy Pressures
London and South East now generate 45% of UK income tax
Households in London and the South East now contribute almost half of the UK’s total income tax take, with London’s share rising more than 80% over the past decade. Higher earners are shouldering an increasing share of the burden as tax policy continues to lean heavily on income.
Drivers face rising fuel taxes as duty freeze ends
Fuel duty is set to rise later this year as the freeze ends, adding around 5p per litre on top of already high prices. More than 60% of pump prices already go to the Treasury, while electric vehicles will face a new mileage tax from 2028.
Landlords warn tax hikes will push rents higher
Most landlords planning rent increases next year blame upcoming tax changes, according to the NRLA. Private rents are already rising faster than house prices, while new regulation is increasing compliance costs and enforcement uncertainty.
OBR criticised as obstacle to growth
Economists and former policymakers are increasingly questioning whether the Office for Budget Responsibility’s modelling is fit for purpose. Critics argue its short-term focus may be constraining fiscal flexibility, while the search for a new OBR leadership has yet to begin.
Industry-Specific Stories
Hospitality warns of sharp business rates shock
London’s hospitality sector faces steep increases in business rates following the end of reliefs, with hotels and pubs seeing average rises of more than 75%. Industry leaders warn that support focused solely on pubs ignores the wider sector’s importance to jobs and the economy.
Office leasing rebounds in London
Office leasing reached its strongest level since the pandemic in 2025, as firms recommitted to physical space despite productivity concerns. However, a shortage of new developments could undermine competitiveness as large lease expiries approach.
NFU warns Brexit export losses may take years to reverse
UK farm exports remain nearly 40% below pre-Brexit levels, with poultry among the worst affected. The NFU says reducing friction alone will not restore lost EU markets and is calling for transition support.
Employment, Skills & Regulation
Flexible working rules raise productivity concerns
Economists warn that expanded rights to request flexible working could bring unintended costs, particularly where productivity is already weak. Critics argue decisions should remain business-specific rather than mandated centrally.
Unions push for guaranteed hours
Trade unions are urging the government to guarantee hours for all workers, going beyond the ban on zero-hours contracts. Business groups warn this could increase fixed costs and reduce flexibility, especially for part-time roles.
Apprenticeship hiring gathers pace
Mid-sized firms, particularly in Scotland, are increasing apprentice recruitment, while the government plans fast-track schemes linked to infrastructure projects. Wage subsidies will lower hiring costs, but training still requires upfront investment.
One million people providing unpaid care
Around one million people in lower-income households now provide full-time unpaid care, adding pressure to already stretched family finances. Calls are growing for stronger financial support and carers’ rights.
Why it matters: Reduced working capacity and income instability can feed directly into delayed payment behaviour.
Finance, Markets & Technology
Markets rebound but volatility remains
Global markets rebounded strongly on Friday, with US indices posting their best session in months and Asian markets rallying overnight. However, analysts warn volatility across equities, commodities and crypto remains elevated, driven by AI uncertainty and geopolitical risks.
Bailey warns of AI bubble risks
The Bank of England governor has cautioned that markets may be overestimating AI productivity gains, echoing concerns from European regulators. He also highlighted job market disruption, geopolitical tensions and rising global debt.
Sage dismisses AI threat to accountants
Sage’s CEO has played down fears that general AI models could replace accounting software, arguing specialist systems remain essential. The episode highlights how market hype can overshoot practical reality.
Market Snapshot
Global markets start the week on firmer footing after a sharp rebound in US equities on Friday, though volatility remains a key theme beneath the surface.
US markets enjoyed their best session since May on Friday, led by a strong recovery in technology stocks after a bruising sell-off earlier in the week. The S&P 500 rose 2.0% to 6,932, while the Dow Jones surged past 50,000 for the first time, closing at 50,115. Chipmakers and software stocks led the gains, suggesting investors are stepping back into risk after fears of an AI valuation bubble triggered heavy selling. Not all tech names benefited, however, with Amazon sliding on concerns over the scale and cost of its AI investment plans.
European markets closed higher on Friday despite weak economic data. Germany’s industrial production fell sharply in December, underlining the pressure still facing manufacturing across the eurozone. Even so, the DAX ended the week up, while the FTSE 100 closed at 14,121 and edged slightly higher in early Monday trading. The CAC 40 also moved higher, reflecting steadier sentiment rather than improving fundamentals.
Asian markets were the standout overnight. Japan’s Nikkei surged more than 4% after a decisive election victory brought political clarity, easing concerns about instability. Chinese and Hong Kong markets also advanced, signalling that last week’s heavy selling pressure may be easing for now.
In currency markets, sterling was little changed against the dollar but weakened slightly against the euro. The pound is trading around $1.36, while EUR/GBP has moved higher, which may add modest cost pressure for UK importers buying from Europe.
Commodities were mixed. Oil prices drifted lower, offering some relief on input costs, while gold and silver rebounded sharply after extreme volatility late last week. The swings in precious metals and crypto markets highlight how fragile sentiment remains, despite Friday’s equity rally.
The bigger picture:
Markets are feeling more confident after Friday’s rebound, but investors remain wary. AI spending, stretched valuations, political risk and patchy economic data continue to drive sharp moves across assets. For UK businesses, this is a reminder that calmer headlines do not necessarily mean calmer trading conditions.
Insolvencies
Winding-Up Petitions
- EVERETT PROPERTY CONSULTANTS LTD
- HEALEY DEVELOPMENT SOLUTIONS (BROADWAY) LIMITED
- KG HAULAGE LTD
- IONIC GROUNDWORKS LTD
- JWL PRIVATE LIMITED
- KINGDOM TECHNOLOGIES LTD
- LONDON SCHOOL OF EXECUTIVE EDUCATION LIMITED
- MEDRECRUITER LIMITED
- OENOFUTURE LIMITED
- ROB N ROLL RESTAURANTS LTD
- THREE LITTLE PIGS CATERING LTD
- TRACKSIDE SOLUTIONS LTD
Winding-Up Orders
- WIGHT BUSINESS SERVICES LIMITED
Administrations
Liquidations
- ARE CONSULTING SERVICES LTD
- BKS SOLUTIONS LIMITED
- BOUCHER PROPERTIES LIMITED
- C.D.M. PROJECT SERVICES LIMITED
- CAS ADVISORY LTD
- CASSON BECKMAN TRUSTEE COMPANY LIMITED
- COMYOUCOM LTD
- ELECIUM LTD
- FIANDER TOVELL (CR) LIMITED
- GF BEERS LIMITED
- HAMILTON HOUSE (SOUTHAMPTON ROW) MANAGEMENT LIMITED
- HAMILTON HOUSE PROPERTY LIMITED
- ITALIA CONTI HOLDINGS LIMITED
- ITENERGY LIMITED
- JUST THE LETTER B LIMITED
- LARCH ESTATES LIMITED
- LONG & MARSHALL LIMITED
- MIRAA SERVICES LIMITED
- MSW CAMPBELL LIMITED
- PARENTING FOCUS LIMITED
- PINLEY GREEN LTD
- PUI LTD
- PURPLE LEOPARD CONSULTING LTD
- QA INVESTMENTS LTD
- RANTAR CONSULTING LTD
- RIVER DEAN CONSULTING LIMITED
- SAFFRON CADOGAN LIMITED
- SILVA GREEN LIMITED
- SITHNEY GREEN CONSULTING LIMITED
- STAMFORD DRAKE CONSULTANTS LTD
- TALARY.CO.UK LIMITED
- TRYDEAL 2002 LIMITED
- VIHAAN LIMITED
- WOODSIDE ENERGY (TRINIDAD BLOCK 7) LIMITED
What CPA can do for you
With confidence weakening, costs rising and insolvencies continuing to mount, protecting cashflow has never been more important. CPA helps businesses identify risk early, monitor customers and recover overdue accounts professionally — before slow payments turn into bad debt.
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.