Business News Round Up (05/05/2026)
Small UK businesses being pushed out of EU markets due to red tape and rising costs, research finds
Small businesses are being driven out of EU markets by red tape, rising costs and complex trading rules, according to new research from the Federation of Small Businesses (FSB). Its report found that 34% of SME exporters expect to reduce or stop EU trade altogether if current arrangements remain in place, while just 6% see opportunities to grow. Nearly half (45%) expect to maintain existing levels. Firms point to mounting administrative burdens, with one business reporting it spends more than half its time on trade paperwork. More than a third (34%) face compliance costs exceeding £5,000 a year. Barriers are widespread, with 63% of small firms reporting significant challenges. Among importers and exporters, 85% have encountered issues, most commonly with customs documentation, inspections and product labelling. VAT rules are also a major hurdle, with 75% reporting difficulties.
Four in ten UK businesses hit by cyber incidents last year
More than four in ten (43%) UK businesses have been hit by a cyber breach or attack in the past 12 months, according to the latest data from the UK government. The Department for Science, Innovation and Technology released their 2025/26 Cyber Security Breaches Survey, which showed that 69% of large firms suffered a cyber breach or attack in the past 12 months, with 29% of firms experiencing a breach or attack at least once a week. The astounding figures show that the cyber threats in the UK are paramount and myriad; the high-profile attacks against UK retail giants last Spring and the Jaguar Land Rover attack – one of the most costly ever in the UK – are just the ones that hit the headlines as cyber incidents permeate across UK enterprise, becoming commonplace. According to the survey, about 612,000 UK businesses reported a cyber incident in the past 12 months.
https://www.digit.fyi/four-in-ten-uk-businesses-hit-by-cyber-incidents-last-year
Number of businesses in ‘critical distress’ increases by a third
UK businesses facing ‘critical financial distress’ have surged by 36.9% to 62,193 in Q1, according to BTG, while those in ‘significant distress’ rose 9.6% to 634,867. Rising labour costs, higher NI contributions and sustained energy price pressures are hitting margins, particularly in hospitality and leisure. Industry experts warn that many “zombie” businesses are now at risk of tipping into insolvency as conditions worsen. All 22 industries monitored by Red Flag Alert experienced a double-digit percentage increase in ‘critical’ financial distress versus the same period last year. Consumer facing industries remain under severe pressure with Hotels and Accommodation (+69.3%), Leisure and Cultural Activities (+65.9%) and Sports and Health Clubs (+51%) seeing some of the highest annual increases in ‘critical’ distress Construction (+10.5%, Q1-26 – 95,355), Support Services (+7.2%, Q1-26 – 92,983) and Real Estate and Property Services (+15.1%, Q1-26 – 79,118) experienced the highest rate of year-on-year growth for companies in ‘significant’ financial distress.
SME lender Praetura secures £150m NatWest facility
Specialist SME lender Praetura has secured a £150 million back-to-back asset-based lending facility with NatWest. The facility empowers Praetura to increase the funding capacity of its sales finance division, which backs businesses with a range of products including invoice discounting, asset-based lending and cash flow loans. Praetura’s latest announcement builds on an existing relationship with NatWest, which was the inaugural funder in Praetura’s sales finance division – first launched as Praetura Commercial Finance in 2016. The business has trebled its loan book to £600m in the past five years, including support for more than 1,500 UK SMEs in 2025, with £328m worth of funding. Its 150-strong team has offices across the North West, with additional presence in London, the Midlands, the South and the North East.
https://businesscloud.co.uk/news/sme-lender-praetura-secures-150m-natwest-facility