Business news 26 February 2026

UK equity markets are at record highs — yet beneath the surface, the pressures on SMEs are intensifying. Almost £8.75bn of invoices were paid late by large UK companies in just six months, service sector profits have fallen for a seventeenth consecutive quarter, and sole traders are preparing for £2.18bn in new tax compliance costs. While government funding initiatives and falling household energy bills offer partial relief, margin compression, fiscal uncertainty and persistent late payment culture remain the dominant themes.

James Salmon, Operations Director.

SME & Cashflow Pressures

£8.75bn of Invoices Paid Late by Large UK Companies

New analysis from Good Business Pays shows £8.75bn of supplier invoices were paid late by large UK companies in the six months to December 2025, with more than £5bn undisputed. Twenty-nine companies now average payment times of more than 100 days, while 83 take over 80 days on average. Although the number of companies meeting “late and slow payer” definitions has fallen year-on-year, 122 firms still pay at least 70% of invoices late.

Figures from the Small Business Commissioner show 14,000 firms close annually due to late payments — around 38 per day.

Why it matters: Persistent late payment directly weakens SME liquidity and increases insolvency risk, forcing suppliers to fund large corporates’ working capital while absorbing rising compliance and operating costs.

See our full blog:

£8.75 Billion Paid Late — Why the Late Payment Crisis Is Still Systemic

Self-Employed Face £2.18bn Making Tax Digital Compliance Bill

Sole traders earning over £50,000 will be required to submit five tax returns annually from April under HMRC’s MTD regime, with thresholds falling to £30,000 in 2027 and £20,000 in 2028. Research suggests average compliance costs of £753 per trader and an additional 114 hours per year.

Service Sector Profits Fall for 17th Consecutive Quarter

CBI data shows a weighted balance of -28% of business and professional services firms reporting falling profits, with consumer-facing services worse at -49%. Forty-three percent reported rising costs per employee.

Why it matters: Margin compression reduces financial buffers, increasing the risk of delayed payments to suppliers and tightening credit conditions across SME networks.

Economic & Fiscal Signals

Migration Decline Could Hit Growth and Tax Receipts

The IFS warns that falling net migration — currently tracking below OBR forecasts — could weaken tax receipts and bring fiscal rules back into focus ahead of the Budget.

Former OBR Heads Criticise Fiscal Discipline

Two former OBR leaders criticised governments for repeatedly abandoning fiscal plans and failing to address structural weaknesses in public finances.

Energy Bills to Fall in April

Ofgem confirmed the household price cap will fall to £1,641 from £1,758, a reduction of at least 7%. Lower wholesale costs are offset partly by higher network charges.

Credit & Access to Finance

Government Launches £1bn SME Funding Taskforce

A new initiative aims to unlock £1bn in additional SME lending over five years, working with banks and Community Development Finance Institutions.

Why it matters: Targeted funding may support growth for some firms, but broader liquidity pressures mean careful credit assessment remains essential.

FCA Plans Enhanced Credit Data Sharing

The FCA proposes mandatory wider sharing of credit data across designated credit reference agencies to reduce gaps and improve affordability assessments.

Why it matters: Better credit data could improve risk decisions for lenders and suppliers, reducing bad debt exposure over time.

Corporate & Operational Developments

Royal Mail to Face MPs Over Letter Delivery Failures

Royal Mail executives will appear before Parliament following concerns that parcels are being prioritised over letters, leading to delays in time-sensitive post.

Why it matters: Debt recovery processes relying solely on postal communication risk delay; suppliers should ensure debtor email details are verified to protect escalation timelines.

See our full blog here:-

Royal Mail Delays: Why Email Addresses and Early Referral Now Matter More Than Ever

Aston Martin to Cut 20% of Workforce

The carmaker reported a £259m operating loss and plans £40m in annual savings, citing tariffs and weaker Chinese demand.

Immedia Broadcast Enters Administration

The UK media firm has appointed administrators amid digital competition pressures.

Sheffield Wednesday Takeover Collapses

A £40m takeover bid fell apart after due diligence concerns.

Housing & Property

London Homes Cheaper to Buy Than Rent

Zoopla reports 34% of London homes are now cheaper to buy than rent, though prices are down 0.2% year-on-year.

Global Markets – Detailed Snapshot

Equities

FTSE 100: Closed at a record 10,806.41 (+1.18%), currently 10,826.80. HSBC surged 7.9% after strong earnings, lifting the banking sector.

STOXX 600: 633.47 (+0.7%), record high, driven by banks and miners on improved earnings and tariff optimism.

DAX: 25,175.94 (+0.76%), supported by confirmation Germany grew 0.3% in Q4 2025.

S&P 500: 6,946.13 (+0.81%).

Dow Jones: 49,482.15 (+0.6%).

Nasdaq 100: 25,329.04 (+1.3%), tech rebound ahead of Nvidia earnings.

Drivers:

  • Strong European bank earnings
  • Nvidia sales guidance beat expectations, though enthusiasm faded
  • Investor sentiment improved to neutral (AAII bears still outnumber bulls)
  • Ongoing AI sustainability debate

Asia

Nikkei 225: 58,753.39 (+0.3%).
Topix: 3,880.34 (+1%).
Kospi: Record highs, +3.8% at peak on chip strength.
Hang Seng: 26,381.02 (-1.4%).
Shanghai Composite: 4,146.63 (slightly lower).

Drivers: Divergence between chip optimism in Korea and earnings caution in China; mainland investors sold HK equities heavily.

Currencies

GBP/USD: 1.3523 (sterling eased 0.3% this morning).
EUR/GBP: 0.8726.
USD/GBP: 0.7396.

Sterling gave back gains amid political uncertainty; yen strengthened despite dovish BOJ signals.

Commodities

Brent Crude: $70.69 per barrel.
WTI: $65.23.
Gold: $5,175 per ounce.
Copper: $13,322 per tonne.

Drivers:

  • US-Iran tensions sustaining oil risk premium
  • US crude inventories rose sharply
  • Gold supported by geopolitical and trade uncertainty

Summary

The past 24 hours saw European and US equities rally on strong bank earnings and a tech sector rebound, with the FTSE 100, STOXX 600, and EURO STOXX 50 all hitting record highs. US markets closed higher as investors positioned ahead of Nvidia’s results, which beat expectations but failed to sustain initial enthusiasm. Overnight, Asian markets diverged, with South Korea’s Kospi surging to records on chip stock strength while Chinese markets weakened ahead of earnings season. Geopolitical risks around US-Iran nuclear talks kept oil near seven-month highs and gold above $5,100, while currency markets saw the yen rebound despite BOJ dovish signals and sterling give back Wednesday’s gains on political uncertainty. The key theme remains tension between AI optimism, geopolitical risk premiums, and uncertainty over US trade and foreign policy.

Insolvencies

Administrations

  • DENZEL POWER – CABLING & ENERGY SERVICES LTD
  • FROG BIKES LIMITED
  • JLC LASER AND FORM LTD
  • KIT HOUSE PROPERTIES LIMITED
  • MILES TOOL & MACHINERY CENTRE LIMITED
  • MTE HEAT TREATMENT LIMITED
  • ORBITAL EXPRESS LAUNCH LIMITED
  • RJAY DEVELOPMENTS (LONGCOT) LTD
  • ROAD AND RALLY DISCOUNT ACCESSORIES LIMITED
  • ROUTE2SUSTAINABILITY LIMITED
  • STANDBY HEALTHCARE (NORTH) LTD

Liquidations

  • ALTAMAR INNOVENTURES LIMITED
  • BRIAN SU LIMITED
  • BUCKLEBERRY LIMITED
  • CABLE & WIRE TECHNICAL SERVICES LTD
  • CHORLTON ADVISORY LIMITED
  • CLM HOLDINGS LIMITED
  • DAWSON COMMERCIAL AND ASSET FINANCE LTD
  • DESNOR LIMITED
  • DISSONANCE HOLDINGS LIMITED
  • DLS CONSULT LTD
  • DCTMG IT SOLUTIONS LIMITED
  • ETL CLOUD LIMITED
  • GBESJ CONSULTING LTD
  • HILGOW LIMITED
  • HOLTBY TURNER LIMITED
  • HONESTA PROPERTY LTD
  • IMT CONSULTING LIMITED
  • INSPIRED DESIGNS LTD
  • K W MEDICAL LTD
  • L D ASSOCIATES LIMITED
  • LIGGET SEA LIMITED
  • LIGHTNING PERFORMANCE LIMITED
  • LIZ KAY CONSULTING LIMITED
  • M & L ARNOTT (CONTRACTING) LTD
  • MAXALEXEV LTD
  • MODERN REAL PROPERTY LIMITED
  • MOGEN CONSULTANCY LIMITED
  • MORE THAN ONE LIMITED
  • NAGDA LIMITED
  • NEWNORM EVENTS LTD
  • PEREGRINE NETWORKS LTD
  • RAVENSTHORPE AVIATION SERVICES LTD
  • RAYBOULD BIC LIMITED
  • RD CONSULTANTS LIMITED
  • RENTADD LIMITED
  • RP AND ASSOCIATES PROPERTIES LIMITED
  • S ELLIS CONSULTING LIMITED
  • S.E.S. NUCLEAR LIMITED
  • SANDFIELD YORKSHIRE LTD
  • SEAGLASS CONSULTING LIMITED
  • SWANREY DEVELOPMENTS LTD
  • T E WELLS & SONS LIMITED
  • THE FINANCIAL PARTNERSHIP ESTATE PLANNING LIMITED
  • TREBIFFEN HOLDINGS LIMITED
  • UPLAY SPORTS MANAGEMENT LTD
  • USER EXPERIENCE DESIGN LIMITED
  • WALKER MORRIS RESOURCES LIMITED
  • WEB BUILDER NOW LIMITED

Winding Up Orders

  • 59 EDGWARE ROAD LTD
  • S&S (CORNWALL) LIMITED

Winding Up Petitions

  • AEK RETAIL LTD
  • DRASHTA VENTURES LTD
  • L J ELLIOTT CONSTRUCTION LIMITED
  • MAYO DEVELOPMENTS (WINSFORD) LTD
  • MITCHAM CONSERVATIVE CLUB LIMITED
  • VALARY DTL LIMITED

What CPA Can Do for You

When margins are tightening and £8.75bn is still being withheld from suppliers, early action is critical.

CPA Members benefit from:

  • Structured escalation before debts age
  • CreditCare risk insight before supply
  • Overdue invoice recovery that protects relationships
  • Reduced internal credit control burden

Protect your cashflow before pressure turns into write-off.

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