A seaside attraction which owes £51 million to a council that helped set it up faces “real risk of closure” as it files for insolvency, the Irish News reported. Bosses of Brighton seafront’s observation tower, Brighton i360, have announced the notification of administrators, blaming escalating costs, bad summer weather and the cost-of-living crisis as the reasons behind the decision. But Brighton and Hove City Council chiefs have said the “extremely disappointing” move will hit the council’s budget after it loaned millions to the project in 2014 and remains the biggest creditor.

Annual U.K. shop-price deflation lost steam in November, driven by higher fresh-food prices on increased winter-related costs, while retailers’ additional costs next year suggest the end of falling inflation, a report said, the Wall Street Journal reported. Prices at U.K. stores decreased 0.6% on year in November, up from deflation of 0.8% recorded in the previous month, the report by NielsenIQ and the British Retail Consortium showed Tuesday. This is the first time in 17 consecutive months that inflation was higher than the previous month.

Fitch Ratings sees an increasing risk to creditors from Southern Water Ltd’s outsize swap portfolio, which is creating liabilities that outrank the claims of even senior bondholders, Bloomberg News reported. The ratings agency downgraded the UK utility to one step above junk status with a negative outlook on Tuesday, citing “challenging funding conditions” and the risk of default should it fail to maintain two investment-grade ratings.

For some in the investment banking industry, the UK’s latest proposals to deregulate its capital markets may be a step too far, Bloomberg News reported. In what would be one of its boldest moves to attract listings, Britain’s Financial Conduct Authority has proposed lifting the threshold at which London-listed firms raising additional funds must produce a prospectus — a lengthy document detailing financial performance and potential business risks — from 20% of their share capital to 75%.

In October 2024, there were 116 company insolvencies registered in Scotland. At the same time, the total number of company insolvencies was comprised of 50 CVLs, 60 compulsory liquidations, five administrations and one receivership appointment. There were no CVAs, the Scottish Financial News reported. However, it must be noted that the total insolvency rate in Scotland in the 12 months to October 2024 was 53.1 per 10,000 companies on the effective register, marking a 1.5% decrease from the preceding 12 months ending October 2023.

Thames Water extended the deadline in its search for billions of pounds in new equity, as it demands more from potential investors on how they plan to help turn around the beleaguered utility, Bloomberg News reported. Investors originally had to submit indicative, non-binding bids on Nov. 28, but that has now been extended by a week to Dec. 5. The utility last week demanded further details on how any investor plans to improve performance, one of the people said.

Insolvency specialist Begbies Traynor has warned that higher wage bills and prospects for fewer interest rate cuts will keep U.K. company failures at high levels, as it revealed its own cost hit from the recent Budget, the Independent reported. The group said that it is set to face an extra £1.25 million a year from next April after the Chancellor last month announced moves to hike employers’ national insurance contributions. Begbies said it was “reviewing options to mitigate the impact where possible”.