Business news 9 January 2026

UK businesses are heading into 2026 facing a difficult mix of weaker demand, rising job losses and ongoing policy uncertainty. While global markets have been buoyed by mining consolidation and defence spending, conditions on the ground for UK SMEs remain fragile. Redundancies are rising, consumer spending is narrowing to essentials, and insolvency warnings continue to mount across construction, care, retail and logistics. For businesses selling on credit, the risk of delayed payment and bad debt remains elevated.

James Salmon, Operations Director.

SME-focused & economic stories

Rising redundancies signal labour market stress

Potential redundancies have climbed to their highest level in almost three years, with more than 33,000 roles at risk in the latest four-week period. Unusually, redundancies worsened in December, a month when job losses typically ease.
Why it matters: Rising job losses weaken consumer spending and increase late payment risk across supply chains.

Businesses expect slower pay growth and price rises

The Bank of England’s Decision Maker Panel shows firms now expect smaller wage increases and lower price rises over the next 12 months, while also predicting further job losses.
Why it matters: Reduced pricing power makes it harder to absorb late payments or bad debts.

Labour set to U-turn on pubs business rates – but not all hospitality

The Chancellor is expected to reverse a business rates hike for pubs after strong backlash, though relief may not extend to the wider hospitality sector. Industry bodies warn the system remains fundamentally broken.
Why it matters: Selective relief leaves many hospitality suppliers exposed to financially stretched customers.

Making Tax Digital deadline catches many unprepared

More than 800,000 landlords and self-employed individuals remain unaware of new Making Tax Digital obligations coming into force this April. Advisors warn many will scramble to comply.
Why it matters: Compliance costs and disruption can divert cash away from supplier payments.

Redundancy pressure adds to rate-cut expectations

Rising job losses and slowing growth strengthen the case for further Bank of England rate cuts in 2026, though policymakers remain cautious.
Why it matters: Lower rates may help borrowers eventually, but near-term cash flow stress remains.

Sainsbury’s shows split consumer spending

Sainsbury’s reported stronger grocery sales over Christmas, but weaker clothing, general merchandise and Argos sales. The retailer upgraded its full-year cash flow outlook to over £550m.
Why it matters: Spending is concentrating on essentials, increasing risk for discretionary suppliers.

UK house prices fall to six-month low

House prices dipped 0.6% in December, with annual growth slowing sharply. Halifax expects only modest growth in 2026.
Why it matters: Slower housing activity can impact construction, trades and related suppliers.

Proposed rent controls could hit property values

Plans to restrict upward-only commercial rent reviews could wipe £11bn off property values, raising concerns over refinancing and investor confidence.
Why it matters: Property-linked businesses may face tighter funding and payment delays.

Treasury warned over shadow banking risks

A Lords committee has criticised the Treasury’s limited understanding of risks in the growing shadow banking sector, now valued at $16tn globally.
Why it matters: Financial shocks outside regulated banking can quickly ripple into SME credit exposure.

UK fintech investment remains resilient

UK fintech attracted £2.7bn in investment last year, maintaining its position as Europe’s second-largest market, though leaders warn regulatory reform is essential.
Why it matters: Continued innovation supports payments infrastructure, but funding conditions remain selective.

Market snapshot

Financial markets are being driven less by confidence in economic growth and more by big structural themes: consolidation, government spending, geopolitics and expectations of lower interest rates.

UK markets

The FTSE 100 remains close to the 10,000 level, but recent gains have been narrow rather than broad-based. Mining stocks have been the standout performers following confirmation that Rio Tinto and Glencore are back in talks over a potential megamerger that could reshape the global mining sector. That has lifted sentiment across materials stocks, even as domestically focused names continue to struggle.

Banks and defence companies have also offered support to the index, helped by expectations of lower interest rates and increased global military spending. However, weakness in energy and consumer-facing stocks highlights the underlying fragility of the UK economy.

It’s worth noting that the FTSE 100’s strength does not reflect the experience of most UK SMEs, as the index is dominated by large multinational firms earning much of their revenue overseas.

European markets

European equities have moved higher in tandem with London, again led by mining and heavy industry. Investors are responding to signs of consolidation and tighter supply in key commodities such as copper and aluminium. That said, economic data across the eurozone remains soft, with weak manufacturing output and subdued consumer demand limiting broader optimism.

US markets

US equity markets are mixed. Technology shares have lost some momentum after a strong 2025, while defence stocks have surged following President Trump’s proposal for a $1.5 trillion military budget, significantly higher than current spending levels. This has driven sharp gains in major defence contractors and is expected to underpin the sector throughout 2026.

Despite strong headline indices, investors are increasingly cautious. Valuations remain high, and many analysts expect choppy conditions ahead, particularly if economic growth slows further.

Commodities

• Oil prices have risen for a third consecutive week, driven by geopolitical uncertainty in the Middle East and concerns over supply disruptions involving Iran and Venezuela. Higher oil prices feed directly into transport, manufacturing and energy costs for UK businesses.
• Industrial metals, particularly copper, aluminium and nickel, continue to rally on fears of tightening supply and long-term demand from electrification and infrastructure projects. Higher input costs remain a concern for manufacturers and construction firms.
• Gold has climbed steadily, reflecting investor demand for safe-haven assets amid economic uncertainty and expectations of lower interest rates. Some banks now forecast further gains into 2026.

Currencies

The pound has weakened against both the US dollar and the euro. Sterling is under pressure from:

• Rising redundancies and weaker UK economic data
• Expectations that the Bank of England will cut interest rates further
• A stronger US dollar, supported by resilient US employment data

A weaker pound increases the cost of imports and can squeeze margins for UK firms reliant on overseas suppliers.

Bonds and interest rates

UK government bonds (gilts) have rallied strongly, with yields falling across the curve. Investors are increasingly betting that the Bank of England will need to cut rates further in 2026 as the labour market weakens and growth slows. While lower rates may ease borrowing costs over time, they are also a signal of economic stress rather than strength.

Bottom line for businesses

Markets may look stable on the surface, but they are being propped up by mergers, government spending and rate-cut expectations, not by improving economic fundamentals. For UK businesses trading on credit, this environment typically brings:

• Tighter cash flow
• Longer payment times
• Higher counterparty risk

Staying close to your sales ledger and spotting problems early is essential.

Insolvency notices

The following winding-up petitions and appointments have been published. This list highlights the breadth of sectors currently under pressure.

Appointment of administrator

• SW Drainage Solutions Ltd

Petitions to wind up (companies)

• 3 D I (Midlands) Limited
• A H Rentals Ltd
• ABL Care Ltd
• Aberdeen Spill Products Limited
• AIB Security Ltd
• Automotive-Electrical (Mirfield) Limited
• Axley Limited
• Austin Achres Ltd
• BH Studio Ltd
• Blanche London Ltd
• Britannia Medicare Limited
• Broadsword Screeding Limited
• Cardon Property & Construction Limited
• Care Signature Christian Homecare Services Limited
• Ceased Trading 13133114 Limited
• China-Europe Networks of Technology and Innovation Limited
• City Pads London Ltd
• City View House Ltd
• Clayton Finance Limited
• Construction & Consultancy Ltd
• Corinth Management Services Limited
• Dani Iusco Limited
• Derand Limited
• Design & Build Services UK Ltd
• DPV Logistics Group Limited
• EE Administration Ltd
• Efficient Concepts Limited
• Elsewhere (UK) Limited
• Energy Tubes Limited
• Enlightenment Care Services Ltd
• Epic Envision Limited
• ERP IT Solutions Ltd
• Erose Media Limited
• Excel TM Group Ltd
• F.W. House & Sons Limited
• First Vision Solutions Limited
• G&M Group Ltd
• Gate of India (Market Rasen) Limited
• Gravesend Hotel Rooms Limited
• Hartley White Ltd
• Hawk Classics Limited
• Hawthorns Engineering Limited
• Hermod Retail Limited
• Hertfordshire Real Estate Limited
• Hit or Miss Pub Ltd
• Homecraft LLP
• Homeslice T&B Limited
• Hoda Builders Ltd
• Hughes Holiday Homes Limited
• IAK Construction Ltd
• ICars (Swadlincote) Ltd
• Ilesbus UK Limited
• JLO Consultancy Ltd
• Joseph Daniel Solicitors Ltd
• Kensington Spice Ltd
• Land Pensions Company Limited
• Laverlathe Limited
• Lid Project Ltd
• Linden Fashions Ltd
• London Ceilings & Partitions Ltd
• Manor Farm Cars Ltd
• M.J. Male Transport Limited
• Molior Consultancy Ltd
• Monster Bid Limited
• NDK Logistics Limited
• Network Associates Limited
• Newmill Trading Ltd
• NVK Drylining Ltd
• OJ Civils Ltd
• Omega Business Academy Ltd
• On Time Care Ltd
• Optimum Data Cooling Limited
• P&B Metal Components Limited
• Pro-Tech Building Solutions Ltd
• Quantum Pay Ltd
• RJBCO Ltd
• RPJ Developments Limited
• RS Traders LDN Ltd
• Sapphia Trading Ltd
• SD Cunstruction Ltd
• Snowdon Timber Ltd
• Sonograto Limited
• Sound Approach Limited
• South Coast Building Group Ltd
• Spring Corner Business Ltd
• Stainless Wire Supplies Ltd
• Stonegate Construction Limited
• Stonnall Care Limited
• Symmetry Project Solutions Ltd
• The Gate of India (Market Rasen) Limited
• Train Effective Ltd
• UBHI Projects Ltd
• UK Mapping & EPOS Solutions Ltd
• Ultimate Construction Logistics Ltd
• Unified Communications Associates Ltd
• Valleystar Limited
• WCML Limited
• Weji Ltd
• Wickersley Homes Limited
• Yoo Build Ltd

CPA perspective

Across today’s data, the message is consistent: demand is narrowing, employment is weakening and insolvency risk is spreading across multiple sectors. For businesses that sell on credit, protecting cash flow has never been more important. Late payment is often the first visible sign of distress.

CPA supports businesses to identify risk early, strengthen credit control and resolve overdue accounts professionally, helping members get paid while protecting customer relationships.

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.