Business news 16 February 2026

The UK economy enters the week under visible strain. The Bank of England describes conditions as “sluggish” and “tepid”, employers are pulling back on hiring, and restructuring continues across hospitality, retail and property.

While major banks report strong profits, many customer-facing sectors are grappling with rising costs, tax pressures and weakening consumer confidence. For SMEs selling on credit, the signals are clear: margins are tightening and caution is spreading.

James Salmon, Operations Director.

Economic Outlook

Bank of England: Growth Engines “Not Firing”

Monetary Policy Committee member Catherine Mann warned that productivity, business investment and labour supply are all underperforming. Consumers remain cautious, and repeated above-inflation wage increases are now being linked to rising youth unemployment. The Bank Rate was held at 3.75% in a split 5–4 vote, highlighting deep divisions over the path forward.

Why it matters: Slower growth combined with elevated borrowing costs increases working capital strain and lengthens debtor payment cycles.

Employment & Workforce

Employers Plan to Reduce Hiring

A CIPD survey shows 37% of employers expect to reduce hiring due to new Employment Rights Act obligations, including immediate statutory sick pay and shorter unfair dismissal periods. Hiring intentions are at their lowest level since 2014, with unemployment projected to rise to 5.4% by 2026. Businesses cite higher compliance and employment costs as a growing concern.

Why it matters: Hiring restraint often signals cash preservation — and that caution can translate into delayed supplier payments.

AI Restructuring the Job Market

A third of scale-up founders expect AI-driven job cuts within a year, while early-career job adverts have fallen sharply since 2022. Around 40% of graduates are already underemployed, and retraining into trades is accelerating. Major tech layoffs continue to mount globally.

Why it matters: Labour market restructuring can dampen discretionary demand and create uneven sector payment behaviour.

Gender Pay Gap Remains Persistent

The gender pay gap stands at 12.8%, with parity unlikely before 2056 at current rates. Trade unions argue that zero-hours contracts and caring responsibilities continue to distort income distribution, while critics warn rising living wage requirements may be increasing youth unemployment.

Industry – Hospitality, Retail & Consumer

Pubs at High Credit Risk

Research shows 8,605 pubs now have negative assets, with 4,800 classified as high credit risk. Business rates, energy costs and higher National Insurance contributions are compounding pressure. There were 181 pub insolvencies in Q4 2025 alone.

Leon Administration Deepens

Leon has closed 22 branches and cut 244 jobs after entering administration, citing unsustainable tax burdens. The chain reported losses in both 2023 and 2024 despite earlier restructuring attempts. Sales have not been sufficient to offset rising cost pressures.

BrewDog Exploring Strategic Sale

BrewDog is exploring a potential sale after reporting a £37m loss. The brewer employs 1,400 people and has appointed advisers to consider restructuring options, including a potential break-up.

Morrisons Selling Pharmacies to Cut Costs

Morrisons is selling dozens of in-store pharmacies after reporting a £381m loss. The supermarket, acquired in a leveraged buyout, continues to manage a £3.1bn debt pile. Previous cost-cutting measures included closing cafes and convenience stores.

Retailers Demand End to £135 Duty Loophole

Associated British Foods and other retailers are pressing the government to scrap the rule allowing overseas sellers to ship parcels under £135 without duty. Industry leaders argue the delay creates competitive imbalance for UK-based operators.

Property & Tax

Landlords Restructure Through Incorporation

Buy-to-let company formations hit a 10-year high in 2025 as landlords seek corporation tax advantages. Rising mortgage rates and frozen tax thresholds have pushed many private landlords into unprofitability.

House Prices Stable but Supply Rising

Average asking prices remain near £368,000, broadly unchanged year-on-year. However, supply has reached its highest seasonal level since 2015, increasing buyer negotiating power.

EV Mileage Tax Proposal

A proposed 3p per mile EV tax from 2028 aims to replace declining fuel duty revenue. Rural drivers and service-based SMEs could face rising annual costs.

Why it matters: Transport cost increases feed directly into margin pressure for logistics and trades.

Banking & Financial Services

NatWest Profits Surge 30%

NatWest reported £1.94bn in Q4 pretax profit, beating expectations. The bank is pursuing cost reductions through technology while targeting a return on tangible equity above 17%. It also agreed to acquire wealth manager Evelyn Partners for £2.7bn.

US Takeover of Schroders Signals Ongoing Foreign Appetite

Nuveen’s £9.9bn acquisition of Schroders highlights increasing US interest in UK assets, with cross-border deals rising sharply last year.

Operations & Infrastructure

Royal Mail Letters Delayed

Postal workers report that letters are being deprioritised in favour of parcels, with some deliveries delayed for weeks. Ofcom has previously fined Royal Mail for service failures.

Why it matters: Delayed invoices, debt collection letters and legal notices can directly extend SME payment cycles. If our members give us an email address, all our collection letters get sent by email as well as post.

Market Snapshot – Monday 16 February 2026

Markets begin the week cautiously after US equities posted their worst weekly performance since November, driven largely by AI disruption fears.

United States

The S&P 500 closed at 6,836.17, repeatedly failing to break above the 7,000 level. The Nasdaq 100 ended at 24,732.73, logging a fifth consecutive weekly loss, while the Dow closed at 49,500.93.

Although US inflation slowed to 2.4%, easing rate pressure, technology stocks remain under strain as investors reassess AI’s long-term impact on established industries.

Markets are now pricing in two Federal Reserve rate cuts later this year.

UK & Europe

The FTSE 100 closed near 10,465, supported by financial stocks following strong NatWest results. The DAX ended at 24,918.68 and the CAC 40 at 8,331.62. European sentiment remains cautious amid mixed growth signals.

Asia

Japan’s Nikkei 225 sits at 56,806.41 after weaker-than-expected GDP growth tempered rate hike expectations. The Hang Seng trades at 26,705.94 in thin holiday conditions.

Currencies

£1 = $1.365
£1 = €1.150

Sterling remains stable despite global volatility.

Commodities

Brent crude: ~$67.75
Gold: ~$5,003 per ounce
Copper: ~$12,881 per metric ton

Gold remains elevated as rate-cut expectations build, while oil trades cautiously ahead of geopolitical negotiations.

Insolvency Notices

Appointment of Administrators

  • FULCRUM IT PARTNERS LTD
  • FULCRUM PEGASUS PRODEC EXCHANGE CO LTD
  • FULCRUM PEGASUS PURE EXCHANGE CO LTD
  • THE FRESHERS NETWORK LTD

Appointment of Liquidators

  • 3Y GROUP LIMITED
  • AMBICLOUD LTD
  • AWCE ENTERPRISES LIMITED
  • BAMPTON STORAGE LIMITED
  • BANCHORY INVESTMENTS LIMITED
  • BASAR LIMITED
  • BECARL LIMITED
  • BTA PHARM LIMITED
  • CAMOMILE PROPERTIES LIMITED
  • CHALK MEDIA LIMITED
  • CHIROPRACTIC CARE LIMITED
  • COOLSIDE HOLDINGS LIMITED
  • CULLIFORD DEVELOPMENTS LIMITED
  • D. M. R. RECYCLED AUTOPARTS LIMITED
  • ELAINE PHILLIPSON LTD
  • ENCHANTED BARN LTD
  • ENERFO SUGAR LIMITED
  • EUROPEAN COPPER INSTITUTE
  • GRAY PROPERTY COMPANY LIMITED
  • IAT ARCHITECTURE LTD
  • IMRAY, LAURIE, NORIE & WILSON, LIMITED
  • JUBILO (HOLDINGS) LIMITED
  • KINOULTON PROPERTIES LIMITED
  • LITHEND ESTATES LIMITED
  • MAGHERA JOINERY WORKS LIMITED
  • MKM CONSULTING LTD
  • NOMIC DIGITAL LTD
  • PPNL SPV B1 – 4 LIMITED
  • PPNL SPV B1 – 6 LIMITED
  • PROSPERO MEDIA CONSULTING LIMITED
  • PURE WATER CONSULTING LIMITED
  • QMULUS LIMITED
  • RKF GROUP LIMITED
  • RT CONSULTING SERVICES LIMITED
  • SECURE LOGISTICS SOLUTIONS LTD
  • SOL INTERIORS LIMITED
  • SOL SPECIALIST ASSETS LIMITED
  • SUZUKI EUROPE LIMITED
  • THE BUSINESS COACHING GROUP LIMITED
  • TTL CHILTERN PROPERTY HOLDINGS LIMITED
  • VB NEWCO LIMITED
  • WIRRAL UROLOGY LIMITED
  • WOODSIDE 1 LIMITED
  • WOODSIDE 2 LIMITED

Petitions to Wind Up

  • A&H EXCHANGE LIMITED
  • A&M 1 LIMITED
  • AOE LOGISTICS LIMITED
  • BASE METAL ROOFING LIMITED
  • ELEONORA SPORT LIMITED
  • ELLMAN ENTERPRISE LTD
  • FUTURE CONSTRUCTION LTD
  • HAWORTH EQUITY LIMITED
  • HEVVAN DESIGNS LTD
  • HUA LONG KITCHEN SOLUTION LTD
  • ISLES PROJECT SERVICES LTD
  • LIPPITT FIRE PROTECTION LTD.
  • RESONANCE CAFE (UK) LIMITED
  • SCORPIOUS ECKINGTON SCHOOL LTD

Winding Up Orders

  • BINK NETWORKS LTD
  • S P MART LTD
  • TYG ONCOLOGY LTD.

How CPA Membership Could Help in Tightening Conditions

When margins tighten and hiring slows, payment discipline becomes critical.

Early action on overdue invoices significantly improves recovery rates. The longer an account ages, the harder it becomes to collect in full.

CPA supports Members with:

  • Overdue Invoice Recovery
  • CreditCare company reports
  • Monitoring of insolvencies and director activity
  • Structured escalation paths
  • Protection of goodwill while securing payment

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