Business

Rising costs are pushing UK manufacturers dangerously close to an investment tipping point, with businesses warning that planned spending could be cancelled or moved overseas unless pressures ease.

A new survey by Make UK, the manufacturing trade body, found that almost nine in ten industry leaders expect employment costs to rise this year, while two thirds anticipate higher energy bills. The findings underline mounting concern that the cost base for British manufacturing is becoming unsustainable.

The survey of 174 senior manufacturing executives revealed that 65 per cent see rising business costs as one of the biggest risks facing the sector in 2026. Make UK warned these pressures are now “threatening to reach a tipping point”, beyond which firms may be forced to scale back investment or relocate activity abroad.

Confidence in the UK as a place to invest remains fragile. Just over four in ten manufacturers believe Britain is an attractive destination for investment, a view shared by a similar proportion of overseas-owned firms operating in the UK. Against this backdrop, Make UK forecasts the manufacturing sector will shrink by 0.5 per cent this year.

Despite these concerns, the survey also revealed pockets of cautious optimism. Nearly two thirds of respondents said they believe opportunities will outweigh risks over the year ahead, while 57 per cent still regard the UK as a competitive place to manufacture.

Business leaders pointed to the government’s industrial strategy as a positive influence, with 63 per cent saying it had improved confidence about future investment prospects. However, enthusiasm is being tempered by fiscal uncertainty.

The most recent autumn budget drew particular criticism, with more than half of manufacturers saying they would have reduced planned investment had additional business tax rises been announced. Executives warned that further increases in taxation or employment costs could quickly undermine confidence.

Stephen Phipson, chief executive of Make UK, said the sector was sending a clear warning to government.

“Despite the commitment to an industrial strategy, growth remains anaemic and the warning lights are now flashing red on the UK as a competitive place to manufacture and invest,” he said. “The government promised significant change – now is the time to deliver it.”

The concerns come as broader business sentiment across the UK economy weakens. A separate survey from accountancy firm BDO found that overall optimism among businesses fell to its lowest level in almost five years at the end of 2025.

BDO’s sentiment index dropped from 93.45 to 90.01 in December, the weakest reading since January 2021, reflecting fears of a slowing jobs market, weak demand and persistent cost pressures. Confidence declined across both manufacturing and services firms.

“Business costs are rising and turnover expectations are falling,” said Scott Knight, head of growth at BDO. “Decisive action, such as further interest rate cuts and a clear roadmap of what lies ahead, is critical if firms are to grow and invest.”

While BDO’s output index edged higher, indicating modest growth, this was driven entirely by the services sector. Manufacturing activity continued to lag, with employment prospects also softening slightly.

Together, the surveys paint a picture of an industry under strain: hopeful that policy direction is improving, but increasingly concerned that rising costs and uncertainty could choke off investment just as manufacturers are being asked to drive economic growth.

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Business costs near tipping point as manufacturers warn investment is at risk

Former chancellor Nadhim Zahawi has defected to Reform UK, becoming the most senior ex-Conservative figure to join Nigel Farage’s party.

Zahawi, 58, was unveiled alongside Farage at a press conference in London, where he warned that Britain was “drinking in the last chance saloon” and said the country “really does need Nigel Farage as prime minister”.

In a video message announcing his move, the former vaccines minister and chancellor said: “Nothing works, there is no growth, there is crime on our streets and there is an avalanche of illegal migration that anywhere else in the world would be a national emergency. I’ve made my mind up that the team which will deliver for this nation is the team that Nigel will put together.”

The defection marks a dramatic political reversal for Zahawi, who once insisted there was “no chance” he would ever join Farage. Writing in 2014, he said he had “been a Conservative all my life and will die a Conservative”. A year later, he warned that Farage’s policies could discriminate against British citizens born overseas.

Zahawi’s political career spanned more than a decade at Westminster. Elected as Conservative MP for Stratford-on-Avon in 2010, he held a series of senior cabinet roles under four prime ministers, rising to chancellor in 2022. He stepped down as an MP at the last general election after being forced out of government over a dispute surrounding his tax affairs.

Born in Iraq, Zahawi arrived in Britain as a child refugee in the 1970s after fleeing Saddam Hussein’s regime. He has previously spoken about sitting at the back of a classroom aged 11, unable to speak English. He later co-founded polling company YouGov and built a substantial personal fortune, including a large property portfolio.

His move adds further momentum to Reform UK’s efforts to present itself as a credible national political force rather than a single-person movement. Farage said Zahawi’s defection helped dispel claims that Reform was a “one-man band”.

Zahawi follows a growing list of former Conservative MPs who have joined Reform, including Nadine Dorries, Andrea Jenkyns and Lee Anderson, reflecting deepening fractures on the right of British politics.

The Conservatives dismissed the move, with a party spokesman describing Reform as “the party of has-been politicians looking for their next gravy train”. The spokesman added that Zahawi had previously said he would be “frightened” to live in a country run by Farage, questioning the consistency of his views.

Despite that criticism, Zahawi insisted his support for Reform reflected the gravity of the moment. “Even if you don’t yet realise that Britain needs Reform,” he said, “you know in your heart of hearts that our wonderful country is sick.”

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Nadhim Zahawi defects to Reform UK, calling Britain ‘last chance saloon’

Jeremy Clarkson has sparked a fresh debate about the pressures facing British agriculture after delivering a blunt response to a social media user who blamed Brexit for the struggles of UK farmers.

The exchange followed a video Clarkson recorded in support of the farming advocacy campaign No Farmers, No Food, in which he called on the next government to put farming higher up the political agenda.

In the video, filmed on his phone, Clarkson said he wanted to see ministers prioritise agriculture and address what he described as a contradiction in policy. “We’ve been asked to diversify,” he said, “and when we try to do that, the local authorities tell us we can’t – and that needs addressing.”

The comments prompted a flurry of responses on X, formerly Twitter. One user suggested Clarkson should align himself with Reform UK to act as an intermediary between farmers and policymakers. Another took a very different view, arguing that Brexit was at the root of the sector’s problems, claiming that farms had lost EU subsidies and that it had become cheaper for retailers to source food from the continent.

Clarkson responded curtly to that claim, replying: “Oh dear. You don’t seem to have grasp of reality.”

The remark triggered a wider discussion among users about the future of farming, food security and rural policy in Britain. Several commentators urged greater support for domestic producers, with some even calling for Clarkson to take on a formal political role. Messages ranged from appeals to “always buy local” to tongue-in-cheek suggestions that the television presenter should be appointed agriculture minister.

Others echoed Clarkson’s frustration with the planning system, highlighting what they see as a double bind for farmers who are encouraged to diversify their businesses but then blocked by planning rules from doing so. Questions were also raised about land use, with some users asking why farmers face restrictions on what they can grow or build on land they own.

The No Farmers, No Food campaign was founded by James Melville, who grew up on a family farm in Scotland. The account is run collectively by farmers across the UK and regularly features contributions from high-profile figures speaking out on agricultural issues.

Clarkson, who has become a prominent voice on farming through his work on Clarkson’s Farm, has repeatedly argued that the sector is being squeezed by rising costs, restrictive regulation and policy decisions that fail to reflect the realities of running a farm. His latest intervention underlines how emotive – and politically charged – the future of British agriculture has become.

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Jeremy Clarkson dismisses Brexit criticism as farmers’ anger grows

Russell & Bromley, the 150-year-old luxury footwear and accessories brand, could vanish from the UK high street after a proposed takeover by Next that is expected to lead to the closure of all 37 of its stores.

Around 450 jobs are understood to be at risk under a deal that would see Next acquire only the Russell & Bromley brand and intellectual property, while the retailer’s physical estate is wound down.

Next is working alongside stock clearance specialist Retail Realisation, which is expected to oversee store closures and a fire sale of remaining inventory if the deal completes. Retail Realisation is linked to Modella Capital, a fast-growing player in high street restructurings.

Founded in 1880 in Eastbourne, Russell & Bromley was born out of the marriage of Elizabeth Russell and George Bromley, both from shoemaking families. The business has remained family-owned for five generations and is currently run by Andrew Bromley.

The potential break-up marks another chapter in the rapid reshaping of the UK retail landscape, as brands with long trading histories struggle under the combined pressure of weak consumer confidence, rising costs and structural changes to the high street.

Modella Capital, via Retail Realisation, has emerged as a prominent force behind recent retail rescues and collapses. Last year, it acquired WHSmith’s 480 high street stores in a £76 million deal, rebranding the chain as TGJones while being prevented from closing large numbers of shops under the terms of the sale.

The group has also invested in Paperchase and Tie Rack, bought arts and crafts retailer Hobbycraft in 2024, and acquired The Original Factory Shop and accessories chain Claire’s. However, both of those businesses were placed into administration last week, putting around 2,500 jobs at risk.

In announcing those administrations, Modella cited what it described as “highly adverse government fiscal policies”, alongside high inflation and subdued consumer demand.

For Next, the proposed Russell & Bromley deal fits a well-established strategy. Over the past decade, the retailer has snapped up distressed or underperforming brands including Cath Kidston, Joules and Seraphine, often retaining the brand while exiting loss-making physical retail.

Unlike many of its former rivals, Next has avoided major setbacks on the high street. While names such as Debenhams and Topshop collapsed, Next has successfully pivoted towards younger consumers and a stronger digital-led model.

The group raised its profit forecast again last week after a stronger-than-expected Christmas trading period, its fifth upgrade in the past year. Sales in the nine weeks to 27 December rose 10.6 per cent year on year, with UK sales up 5.9 per cent — ahead of expectations.

In a trading update, Next said performance benefited from improved stock availability compared with last year, when global freight disruption and supply issues in Bangladesh weighed on sales.

Russell & Bromley, Next, Retail Realisation and Modella Capital have been approached for comment.

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Russell & Bromley faces high street exit as Next takeover puts 450 jobs at risk

The UK jobs market ended 2025 on a weak footing, with both permanent and temporary hiring falling in December and unemployment already sitting at a four-year high.

A closely watched labour market survey by KPMG and the Recruitment and Employment Confederation (REC) shows that permanent staff placements dropped to a four-month low at the end of the year, while temporary roles also declined. Vacancies continued to fall and the availability of workers rose sharply, underlining a market that is loosening rather than rebounding.

The figures suggest that the uncertainty created by November’s Budget is still weighing heavily on employers. Confidence among businesses and households fell in the run-up to the fiscal event as firms braced for higher taxes and rising employment costs.

Separate data published by the REC last week showed that most employers do not expect a meaningful increase in hiring during 2026. Businesses remain constrained by higher payroll costs, including increases to the national living wage and the impact of lower National Insurance thresholds.

Neil Carberry, chief executive of the REC, said December’s survey pointed to a further deterioration compared with November, when the Budget was announced late in the month. While the overall pace of decline in placements was slightly less severe than earlier in the winter, permanent hiring fell at its fastest rate since August.

“Making this a better year for hiring will require a focus on rebuilding business confidence,” Carberry said. “With the Budget now behind us, firms need a clear and credible direction from government — from the industrial strategy to a more pragmatic approach to the Employment Rights Act, which is worrying many employers.”

The slowdown comes as unemployment has already reached 5.1 per cent in the final quarter of last year, the highest level in four years. Economists surveyed by The Times believe the jobless rate could rise further, potentially reaching 5.5 per cent in 2026 — a level not seen for more than a decade.

Despite the softening labour market and sluggish economic growth, most economists and traders expect the Bank of England to cut interest rates no more than twice this year. Lower borrowing costs would help ease the cost of hiring and investment, but policymakers remain cautious amid persistent inflationary pressures.

The Bank of England’s latest survey of decision-makers shows that businesses expect to reduce headcount in 2026, while wage settlements are forecast to edge down only marginally, from 3.8 per cent to 3.7 per cent.

That tension is reflected in the REC data, which showed pay for permanent staff rising at the fastest pace since May, suggesting inflationary pressure has not fully disappeared. Temporary pay also increased in December after stagnating in the previous two months, although overall wage growth remains below its long-term average.

Regionally, the Midlands was the strongest performer and the only part of England to record growth in temporary placements. Hiring continued to fall in London and across much of the north and south of England.

Meanwhile, recruitment firm Morgan McKinley reported that vacancies in London’s financial services sector fell 16 per cent in the final quarter of 2025, although overall job numbers in the sector were still up 16 per cent year on year — highlighting how uneven the labour market has become.

Read more:
Jobs market stalls as permanent and temporary hiring both fall

High-value clients are vital for long-term business success. These clients typically generate consistent revenue, become dedicated brand advocates, and have a high lifetime value.

Businesses that are able to attract and retain high-value clients are often able to generate higher revenue and attract new consumers, giving them an obvious advantage in busy markets and sectors.

However, attracting high-value clients can be difficult, and retaining them can be even harder. Because of this, businesses that understand the worth of high-value clients employ various tactics to reach new high-value clients and retain their current high-value clients.

Defining High-Value Clients

While high-value clients often spend more than average or new clients, their spending habits do not solely define them. Beyond their spending, high-value clients typically engage regularly, remain loyal over time, and align with the company’s core offerings. For example, a high-value client that engages regularly could be a regular shopper who purchases often but also always likes and comments on the business’s social media posts. These comments and likes on social media can have a positive impact on the business, showing other potential consumers that the business is reputable and valued by others. This same high-value customer may even leave a positive review, further adding value. A positive review can encourage others to make a purchase and can lead to increased revenue for a business in the long run.

While each high-value client may interact with a business differently, companies that understand who qualifies as a high-value client can focus their efforts strategically to ensure they retain these individuals to boost future growth.

Building Trust From the First Interaction

Attracting high-value clients begins with trust. From the very first interaction, businesses need to show clients that they are credible and reliable. If a business communicates clearly, offers honest pricing and provides quality customer support, it can begin to build trust with its clients and consumers. However, a business that lacks quality customer care, has inconsistent pricing, or a hard-to-navigate website may feel untrustworthy to clients. This may turn some people away before the business even has the chance to try to build trust.

Because of this, first impressions are key. Consumers in today’s marketplace have various options and can easily choose a competitor. In order to attract high-value clients, businesses must ensure that any client’s first interaction with the company is smooth and hassle-free. This will encourage repeat business and can potentially turn a one-time shopper into a regular buyer or a high-value client over time.

Personalisation as a Core Strategy

One key way that businesses attract and retain high-value clients is through personalisation. In today’s busy marketplace, consumers increasingly want to receive tailored content that is relevant to them. Companies often achieve this by using data insights, direct feedback, and analyses to customise products, tailor communications, and support services. This means that when a client connects with a business, they receive information that directly relates to them, whether it’s an email that starts with their first name, a sale on a product they’ve purchased before, or a personal recommendation based on past purchases.

Many sectors have already embraced personalisation in order to engage with consumers and build high-value clients. For example, many online shopping sites use personalisation to send tailored messages to shoppers with special offers that relate directly to their past purchases. This can show consumers that the business remembers what they’ve purchased before and encourages clients to buy again. Many online casinos also offer personalised experiences.

For example, some sites customise what games are suggested to players online, ensuring that bettors see titles that they’ve either played before or similar offerings that align with their preferences. Within the online casino sector, high rollers are often the most valuable clients as these players typically spend big and return time after time. When betting online, high rollers from the UK not only often look for sites that accept high deposits and offer secure banking options, but also tend to opt for platforms that offer customisation to ensure a smooth and personal experience. Beyond online casinos and shopping, other sectors have also embraced personalisation. In the travel industry, many hotels use personalisation to connect with past guests and encourage repeat business. For example, a traveller who stays for their birthday one year may receive a special birthday email the following year with a discount code to encourage another visit.

Regardless of the sector, personalisation plays a vital role in attracting and retaining high-value clients. When consumers feel that they are understood and valued, they are far more likely to remain loyal and engaged in the long run.

Delivering Consistent Value Over Time

Once a high-value client is attracted to a business, it’s important that the products or services provided are consistent in value in order to retain the client. For example, if a client purchases a t-shirt from a clothing company and the first shirt they buy is great quality and very comfortable, they will likely return to purchase another t-shirt. If the second shirt they buy is uncomfortable, fits poorly, and is of a lower quality, they likely will never return again. But if their second purchase was another top-quality product, they could become a high-value client and return time after time.

In order to retain high-value clients, businesses must ensure that their products or services are consistently top quality. Additionally, companies that are constantly innovating and improving their products can stay one step ahead and are even more likely to retain clients.

Effective Communication

Another key step to retaining high-value clients is offering quality communication. Companies that communicate regularly, openly, and clearly can set themselves apart from others. These companies are often better suited to clearly address any concerns and share company updates, which can build trust over time.

For example, if a company sells a good product but its customer service team is hard to get in touch with, high-value clients may opt to shop with another business that is easier to connect with. High-value clients want to feel connected to a business, and companies that communicate openly are more likely to attract high-value clients who want to engage via social media or share positive reviews as they feel their values align with those of the company.

Recognising and Rewarding Loyalty

While there are a variety of ways to boost customer loyalty, one key tactic that businesses often employ to retain high-value clients is using rewards. Rewards can come in the form of discount codes, free products, free shipping, exclusive access or even perks like birthday rewards. These special offers make shoppers feel special and offer rewards for repeat business, encouraging growth over time.

Businesses that acknowledge loyalty and reward it are often able to retain high-value clients who value feeling appreciated.

Conclusion

While it can be difficult to attract and retain high-value clients, businesses that are able to do this often see higher revenue and increased levels of engagement. High-value clients not only often spend more, but they also typically engage with companies on social media, leave reviews, and suggest products and services to friends and family. Because of this, companies work hard to attract these clients and keep them.

Read more:
How Businesses Build and Retain High-Value Clients

As we move further into 2026, the “cloud-first” approach has become the global standard. However, this shift has also introduced a paradox: while the cloud makes scaling easier, it makes security more complex.

For modern enterprises, staying ahead of sophisticated, AI-driven threats requires a dual-layered strategy.

The most successful organizations today are winning by combining the operational excellence of cloud managed IT services with the proactive precision of a high-performance Vulnerability Scanner.

Layer 1: Operational Agility with Cloud Managed IT Services

Managing a multi-cloud environment (AWS, Azure, GCP) internally is increasingly resource-intensive. Cloud managed IT services act as an extension of your team, handling the heavy lifting of infrastructure optimization.

According to the latest industry insights on cloud managed IT services, the primary value drivers in 2026 include:

AI-Centric Optimization: Managing the high costs and GPU demands of AI workloads.
Predictable Cost Models: Moving away from unpredictable “cloud sprawl” to a structured Opex model.
Zero-Trust Governance: Implementing strict access controls and identity management across all cloud assets.

By outsourcing these functions, businesses free up their internal talent to focus on product innovation rather than server maintenance.

Layer 2: Proactive Defense with a Vulnerability Scanner

Even the best-managed infrastructure can have “cracks.” A single misconfigured storage bucket or an unpatched legacy API can lead to a catastrophic breach. This is where a dedicated Vulnerability Scanner becomes indispensable.

A modern Vulnerability Scanner provides:

Continuous Asset Discovery: In the age of ephemeral cloud resources, you cannot secure what you can’t see. Scanners provide a real-time inventory of every active endpoint.
Risk-Based Prioritization: Instead of a “noisy” list of 1,000 bugs, advanced tools like SeqOps use behavioral telemetry to tell you which 10 vulnerabilities pose the highest actual risk to your specific business.
Compliance Assurance: Automated reports from a vulnerability scanner provide the documented proof required for SOC 2, HIPAA, and GDPR audits.

The Synergy: How They Work Together

When you integrate cloud managed IT services with an automated Vulnerability Scanner, you create a “closed-loop” security system:

The Scanner Finds the Gap: It identifies an outdated library or an open port.
The Managed Service Fixes It: Your MSP receives the alert and applies the patch or reconfigures the firewall instantly.
Verification: The scanner re-runs to confirm the “hole” is closed, providing a complete audit trail.

Final Thoughts

In 2026, security is no longer a “periodic checkup”—it is a continuous workflow. By leveraging the expertise of cloud managed IT services and the automated vigilance of a Vulnerability Scanner, businesses can navigate the complexities of the digital age with both speed and safety.

Read more:
The Power Couple of 2026: Why Modern Businesses Pair Managed IT with Automated Scanning

The government has issued a stark warning to Elon Musk’s artificial intelligence company xAI, signalling it is prepared to block access to its Grok chatbot in the UK if it fails to comply with British law on online safety.

Technology Secretary Liz Kendall said on Friday that ministers are moving swiftly to criminalise the creation of intimate images without consent, as concerns mount over the misuse of AI tools to generate sexualised images of women and children.

Her comments follow reports that Grok, xAI’s chatbot integrated into the social media platform X, has continued to allow users to generate sexually manipulated images if they are willing to pay for premium access, despite public assurances that safeguards had been tightened.

Kendall described the practice as “despicable and abhorrent”, adding that it was “totally unacceptable” for any platform to profit from such content.

She said the government expects the media regulator Ofcom to act decisively and without delay. “I, and more importantly the public, would expect to see Ofcom update on next steps in days, not weeks,” she said, urging the regulator to use the full range of powers granted by Parliament under the Online Safety Act.

The Technology Secretary explicitly reminded xAI that UK law allows regulators to block services from being accessed domestically if they refuse to comply. She said that any decision by Ofcom to use those powers would have the government’s “full support”.

Kendall confirmed that ministers are also legislating to ban so-called “nudification” apps, which use AI to digitally undress individuals without consent. The measure is included in the Crime and Policing Bill currently before Parliament.

In addition, she said new legal powers will come into force within weeks to make the creation of non-consensual intimate images a criminal offence, closing a loophole that has allowed AI-generated abuse to spread faster than enforcement mechanisms.

She also warned that platforms are expected to comply fully with Ofcom’s new guidance on violence against women and girls (VAWG). “If they do not,” she said, “I am prepared to go further.”

The intervention marks one of the strongest signals yet that the government is willing to escalate its response to AI-driven abuse, particularly where children and women are targeted.

“We are as determined to ensure women and girls are safe online as we are to ensure they are safe in the real world,” Kendall said. “No excuses.”

Read more:
Liz Kendall warns xAI over Grok images as UK moves to criminalise non-consensual AI deepfakes

When businesses face financial turmoil, they often find themselves at a crossroads. The weight of mounting debts, unmanageable cash flow issues, and the pressure from creditors can quickly lead a company to the brink of liquidation.

However, insolvency and business recovery processes, when handled properly, can offer a lifeline to businesses in distress. One such company that specializes in these services is BABR (Bailey Ahmad Business Recovery), which provides essential strategies and expert guidance to help businesses navigate the complex waters of financial recovery and avoid the often devastating consequences of liquidation.

In this article, we will explore how business recovery and insolvency solutions can help companies regain financial stability, reduce the risk of liquidation, and emerge from their difficulties stronger and more resilient.

The Impact of Insolvency on Businesses

Insolvency refers to a situation where a company can no longer meet its financial obligations, such as paying creditors or servicing its debts. While insolvency may seem like the end of the road for many businesses, it is important to recognize that it does not always have to result in liquidation. Liquidation occurs when a company’s assets are sold off to pay its creditors, and the company ceases to operate.

However, insolvency can often be resolved through various recovery processes that allow businesses to regain financial stability without shutting down. If a company can act quickly and seek professional advice, it may be able to avoid liquidation entirely. This is where the expertise of companies like BABR comes into play. Through a range of tailored services, BABR helps struggling businesses understand their options and take proactive steps to regain control of their finances.

Key Approaches to Business Recovery

Business recovery involves identifying the root causes of financial distress and implementing a strategy to resolve them. The approach taken will depend on the unique circumstances of the business, but there are several common strategies that are used in the recovery process:

Restructuring Debt
One of the most common methods of business recovery is debt restructuring. This involves negotiating with creditors to reduce or extend payment terms, or in some cases, reducing the overall amount of debt owed. By working with experts like BABR, businesses can negotiate favorable terms that make it more feasible to pay off outstanding debts over time, avoiding the need for liquidation.
Company Voluntary Arrangement (CVA)
A Company Voluntary Arrangement (CVA) is a formal agreement between a business and its creditors that allows the business to continue operating while paying off its debts over a period, usually three to five years. This process gives businesses breathing room, helping them to avoid liquidation while providing creditors with an opportunity to recover at least a portion of their debts. A CVA is a viable option for businesses that have the potential to turn things around but need time to restructure and stabilize their finances.
Pre-Pack Administration
In some cases, businesses may choose to enter administration with a pre-pack arrangement. This allows a company to be sold quickly to a new owner while retaining its value and avoiding a lengthy liquidation process. Pre-pack administrations are often used when the business has valuable assets or a strong brand but is unable to continue operating in its current form due to financial difficulties. Through a pre-pack arrangement, businesses can avoid the negative consequences of liquidation and continue operations under new ownership.
Business Turnaround Planning
Another critical aspect of business recovery is developing a comprehensive turnaround plan. This plan typically includes restructuring the business, improving operational efficiency, and addressing cash flow issues. A turnaround plan may also involve downsizing or focusing on more profitable areas of the business. With the guidance of experts like BABR, businesses can implement a clear strategy for returning to profitability and avoiding the need for liquidation.

How BABR Can Help in Business Recovery

BABR (Bailey Ahmad Business Recovery) plays a pivotal role in helping businesses navigate the complexities of insolvency and business recovery. With years of expertise in the field, BABR specializes in providing tailored solutions to businesses at risk of liquidation. Their team of experienced professionals understands the nuances of business distress and works with companies to develop customized plans that fit their specific financial needs.

One of the key advantages of working with BABR is their ability to offer a comprehensive approach to business recovery. From the initial assessment of financial health to the execution of recovery strategies, BABR provides guidance every step of the way. They offer solutions that go beyond merely addressing the immediate financial problems and work to establish long-term financial stability for businesses.

Whether through restructuring, CVAs, or other recovery mechanisms, BABR helps businesses regain control of their financial situation and avoid the irreversible step of liquidation. Their focus on understanding the root causes of financial distress and addressing them effectively ensures that businesses can recover and move forward with renewed vigor.

Preventing Liquidation through Early Intervention

One of the most critical factors in avoiding liquidation is early intervention. Many businesses wait too long to address financial issues, and by the time they seek help, it may be too late to save the company from liquidation. This is why it is essential for businesses to monitor their financial health regularly and seek professional advice at the first signs of financial distress.

Professionals like BABR emphasize the importance of acting early to prevent liquidation. By identifying financial issues and implementing recovery strategies promptly, businesses can prevent their problems from escalating to the point where liquidation becomes the only option. Early intervention can also help preserve the value of the business, ensuring that it has a better chance of recovering and succeeding in the future.

The Role of Insolvency Practitioners in Business Recovery

Insolvency practitioners are licensed professionals who specialize in managing the insolvency process and helping businesses recover from financial difficulties. They play a crucial role in guiding businesses through the legal and financial complexities of insolvency, ensuring that the business is treated fairly and in compliance with relevant laws.

In the context of business recovery, insolvency practitioners help businesses explore all available options, including CVAs, debt restructuring, and administration. They work closely with both the business and its creditors to negotiate the best possible outcome, providing valuable insights and advice throughout the process.

BABR employs insolvency practitioners who have extensive experience in helping businesses navigate the recovery process. Their expertise is essential in preventing liquidation and finding solutions that allow businesses to survive and thrive.

The Benefits of Business Recovery Solutions

Choosing business recovery over liquidation offers several benefits for businesses. First and foremost, it allows the company to continue operating, preserving jobs and relationships with clients, suppliers, and employees. A successful recovery can also protect the company’s assets from being sold off during a liquidation process.

Another significant advantage of business recovery is the potential to rebuild and improve the company’s financial health. By addressing the root causes of financial distress and implementing effective recovery strategies, businesses can not only avoid liquidation but also emerge from the process in a much stronger financial position.

Moreover, business recovery solutions can help businesses maintain a positive reputation. Companies that are able to overcome financial challenges and recover successfully are often seen as resilient and capable, which can boost customer and investor confidence.

Conclusion

Insolvency and financial distress don’t have to mean the end of a business. Through effective business recovery strategies, companies can avoid liquidation and regain financial stability. The expertise provided by companies like BABR is invaluable in helping businesses understand their options and navigate the recovery process. Whether through debt restructuring, CVAs, or other recovery mechanisms, businesses can find solutions that allow them to continue operations and emerge from financial difficulties stronger and more resilient.

By taking action early, working with experts, and committing to a structured recovery plan, businesses can avoid liquidation and pave the way for long-term success.

Read more:
How Business Recovery and Insolvency Can Help Avoid Liquidation

A good guide on secured loan in the UK helps homeowners take informed decisions about large borrowing. Many UK borrowers underestimate how much structure sits behind these loans.

A secured loan creates access to higher limits and competitive pricing, though it also places your property at risk. You gain clarity once you understand how the charge system operates, how lenders assess equity, and what shapes affordability outcomes. Writers often turn this topic into a maze, so I will keep the explanations tight. To me, it all comes down to understanding the mechanics from start to finish because knowledge in finance tends to cut confusion at the root.

You will also notice that a secured loan behaves like a separate facility alongside your existing mortgage. The two loans do not merge and they do not influence each other directly. Many UK borrowers choose this route when they want to keep a long term fixed-rate mortgage untouched or when they want fast access to funds. As the saying goes, measure twice and cut once, because misunderstandings around secured loans can bring trouble later.

To lighten the mood for a moment, I believe secured loan paperwork exists purely to test whether people actually read their documents. Now let us get into the substance.

What a Secured Loan Is

How security works

A secured loan uses your property as collateral. The lender obtains legal rights over the asset until you repay the balance in full. Understanding how does a secured loan work in the UK requires grasping the role of a legal charge. The legal charge protects the lender’s interest in case of missed repayments. If the loan becomes unsustainable and arrears continue, the lender can pursue a court order to force a sale. Your main mortgage lender receives proceeds first, followed by the secured loan provider.

Relationship to your mortgage

A secured loan sits as a second charge. This placement means your existing mortgage remains unchanged. You avoid the need to refinance and you avoid early repayment penalties on your main mortgage. Many UK borrowers prefer this structure because it preserves favourable deals obtained in previous years.

How the Charge System Operates

Registration and consent

Understanding how does a secured loan work in the UK involves recognising the legal steps. Once you apply, the lender creates a legal charge and registers it with the Land Registry. This record alerts any future lenders or buyers to the existence of secured borrowing. In Scotland and Northern Ireland, equivalent registries handle this process.

Your main mortgage lender must approve the second charge. This requirement exists because the extra borrowing affects the total security position on the property. Mortgage lenders sometimes decline consent if your existing deal restricts additional borrowing or if they assess the risk profile as unsuitable.

Removal of the charge

Once you repay the secured loan, the lender removes the charge. The Land Registry updates its records to reflect that no further rights exist over your property beyond your main mortgage.

Equity and Borrowing Power

Calculating equity

Equity determines how far you can extend your borrowing. When you ask how does a secured loan work in the UK from a practical standpoint, equity sits at the core. Equity equals your property’s market value minus all secured borrowing attached to it. For example, if your home is worth £350,000 and you owe £210,000 on your mortgage, your equity stands at £140,000.

Loan to value limits

Lenders measure your request through loan to value ratios. Most lenders limit total borrowing to somewhere between 75 percent and 85 percent LTV. A few specialist lenders stretch higher in rare circumstances. Lower LTV ranges unlock the best secured loans at stronger rates. Higher LTV ranges carry more risk and therefore cost more.

Real world implications

If a lender allows 80 percent LTV on a £350,000 property, the maximum secured borrowing available becomes £280,000. After subtracting your £210,000 mortgage, you could potentially access £70,000 as a secured loan. KIS Finance secured loan calculator often helps clients calculate realistic limits because many borrowers misjudge their available equity.

Application Journey

Preparation phase

Understanding how does a secured loan work in the UK means tracking the process from enquiry through completion. Most secured loan applications take somewhere between one and four weeks. Straightforward cases complete faster. Lenders begin with a fact-find that collects information about your income, property, and credit background.

Documents required

You must provide identification, proof of address, recent bank statements, and income verification. Self-employed applicants must supply tax returns or accountant certificates. Your property must also undergo a valuation. Smaller loans tend to use automated valuation systems. Larger loans often require a physical inspection.

Affordability and underwriting

Lenders run affordability tests to confirm your income can sustain the monthly repayment. They examine declared expenses, credit commitments, and bank activity. Underwriters review your credit file to understand payment reliability. Secured loans offer more flexibility for people with weaker credit histories because collateral lowers lender exposure.

Formal offer and completion

Once the lender approves your application, they issue a binding offer. You sign acceptance documents and funds usually reach your account within twenty four hours after completion. A broker such as KIS Finance can speed up approval by communicating directly with underwriters and helping you avoid common delays.

Costs and Repayment Structure

How interest works

Interest rates on secured loans range widely. Strong credit combined with low LTV levels unlocks competitive pricing. Higher risk profiles push costs upward. Rates can remain fixed for the entire term or they can vary depending on lender policies. When comparing options, you should check the APRC because this measure includes fees and reflects the true long term cost.

Repayment durations

Secured loans offer long repayment periods. Many run between five and twenty years. Some run longer. Longer terms reduce monthly payments but increase the total interest paid over the life of the loan.

Role of brokers and comparison

People looking for the best secured loans often use intermediaries. Brokers have relationships with multiple lenders and understand nuances around affordability rules. KIS Finance advises applicants with non standard income patterns or recent credit issues. I think good guidance saves time because lender criteria remain unpredictable at times.

Advantages and Drawbacks

Benefits

Secured loans offer higher borrowing limits than typical unsecured personal loans. People use them for home renovation, debt consolidation, business expansion, or large purchases. Borrowers with credit challenges gain access to options that do not exist on the unsecured market. Longer repayment terms soften monthly commitments.

Risks

The clearest risk involves potential loss of your property if you cannot sustain repayments. Persistent arrears trigger collection procedures that can escalate into legal action. Missed payments also damage your credit record for six years.

Secured Loans Compared With Remortgaging

Structural differences

A remortgage replaces your entire mortgage commitment. A secured loan sits alongside your mortgage without altering its terms. Many UK borrowers prefer secured loans when they have a long term fixed mortgage rate that they do not want to lose.

Decision factors

Secured loans complete faster than remortgages. Remortgages take four to six weeks or longer. Secured loans accommodate complex profiles, recent credit events, and variable income patterns. Remortgages usually provide lower rates because the lender receives first charge priority.

When a secured loan works better

If you want to keep your current mortgage rate, avoid early repayment charges, or access funds quickly, a secured loan often makes more sense. Understanding how does a secured loan work in the UK helps you weigh these differences against your own circumstances.

Early Repayment and Flexibility

Repayment rules

Most secured loans permit early repayment. Many lenders charge fees for settlements within the initial years. UK regulations cap some of these charges for consumer loans, though secured homeowner loans sometimes operate outside these caps. Some lenders allow partial overpayments free of penalties within specific annual limits.

Practical advice

I believe people should ask direct questions about early settlement policies before signing anything. Small differences in early repayment charges create large cost variations over long terms.

Final Thoughts

Understanding how does a secured loan work in the UK provides clarity around risk, affordability, and long term obligations. A secured loan offers access to large sums through a second charge. It protects the lender through a registered legal interest on your property. It operates on longer terms and delivers competitive pricing when equity sits at comfortable levels. The structure works best when you want to keep your current mortgage untouched or when remortgaging would trigger heavy penalties. Borrow only what you can safely repay. Clear thinking creates better outcomes, and the UK secured loan market rewards borrowers who approach applications with accurate information.

Frequently Asked Questions

How do secured loans differ from mortgages?

A mortgage funds the purchase of your property while a secured loan uses the property to support borrowing for any purpose. Mortgages sit as first charges. Secured loans sit as second charges.

Can I get a secured loan with weaker credit?

Yes. Secured lenders accept broader credit profiles because property collateral reduces exposure. You may face higher rates than applicants with strong credit.

How long does the application process take?

Most secured loan applications complete within one to four weeks. Straightforward cases finish sooner when documents and valuations move quickly.

What happens if I fall behind on repayments?

Arrears trigger formal notices and can escalate into court action. Your property may be sold to clear debts if arrears continue without resolution.

Can a secured loan be repaid early?

Yes. Many lenders allow early repayment, though some apply charges within the early years. Check the schedule before agreeing to any loan terms.

Should I choose a secured loan or remortgage?

The answer depends on your mortgage rate, equity position, repayment goals, and whether you want fast access to funds. Secured loans preserve your current mortgage, which matters when you hold a favourable rate.

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