Business news 3 March 2026

Global markets are in full risk-off mode as the Middle East conflict intensifies, sending oil and gas prices sharply higher and forcing investors to reassess interest-rate expectations. At home, the Chancellor is attempting to project fiscal stability while growth forecasts are downgraded and private sector activity weakens. Retail restructurings and a heavy insolvency list underline the pressure building across UK supply chains.

For SMEs that sell on credit, the combination of rising energy costs, weaker growth and tightening financial conditions increases the importance of monitoring debtor health and acting early on overdue accounts.

James Salmon, Operations Director.

Energy shock sends gas up 50% as Strait of Hormuz closes

European gas prices surged nearly 50% after QatarEnergy halted LNG production following Iranian drone strikes. Oil also spiked, with Brent trading above $80 per barrel as Iran threatened shipping in the Strait of Hormuz, which carries roughly a third of global seaborne oil.

If Qatari supply remains disrupted, analysts warn gas prices could move towards €80–100/MWh. This represents a significant cost shock for manufacturers, hospitality operators and logistics firms.

Why it matters: Higher energy and transport costs will squeeze margins and can quickly translate into slower supplier payments and increased debtor stress.

Spring Statement: Growth downgraded to 0.9%

The Chancellor used her economic statement to emphasise “stability” amid global turmoil, focusing on fiscal discipline, infrastructure investment and reform. However, the Office for Budget Responsibility is expected to downgrade 2026 growth forecasts to 0.9%.

Markets have sharply reduced expectations of interest-rate cuts as rising energy prices increase inflation risks. Fiscal headroom is expected to remain around £21.7bn, leaving limited room for stimulus.

Why it matters: Slower growth combined with limited fiscal support increases the risk of delayed payments and insolvencies among already stretched SMEs.

CBI warns private sector activity set to fall

The Confederation of British Industry forecasts a decline in private sector activity over the next three months, with weakness in distribution and manufacturing. Business and professional services show relative resilience but remain below long-term averages.

Energy costs and employment regulation changes were cited as ongoing pressures.

Why it matters: Sector divergence means some debtors may weaken faster than others, making proactive credit monitoring essential.

Grocery inflation rises to 4.3%

Food price inflation increased to 4.3% in February. Retailers warn that Middle East instability and higher oil prices could drive further increases. Valentine’s week spending on premium dine-in meals hit £39m, seven times higher than the prior week, suggesting pockets of consumer resilience.

Why it matters: Rising household costs can reduce disposable income and increase the likelihood of slower payment behaviour across retail supply chains.

Businesses limiting growth to avoid VAT threshold

HMRC data shows 683,700 firms earned under £90,000 last year, a 1.9% rise, while the number earning £90,000–£150,000 fell 8.5%. Accountants argue the £90,000 VAT threshold is distorting behaviour and suppressing growth.

Why it matters: Artificial turnover caps distort cashflow planning and can lead to fragmented trading structures, increasing credit complexity and risk.

Youth minimum wage rise to be slowed

The Chancellor is reportedly reconsidering plans to equalise the minimum wage for all workers over 18, citing youth unemployment of 16.1%.

Why it matters: Short-term payroll cost relief may help margins, but weaker youth employment signals broader demand softness.

Industry-Specific Stories

BrewDog rescue deal closes 38 venues

BrewDog has been sold to Tilray in a £33m rescue deal. Thirty-eight venues will close and 484 jobs will be lost. The company posted a £37m loss last year.

Up to 80 former WHSmith stores at risk

Modella Capital is reviewing the future of high street stores rebranded as TG Jones, with up to 80 closures under consideration.

Fentimans may cut 37 jobs

Following its £38m acquisition by AG Barr, Fentimans may reduce headcount in Hexham.

Economic & Financial Stability

Blankfein warns of hidden leverage risks

Former Goldman Sachs CEO Lloyd Blankfein warned that rapid growth in private credit markets may mask systemic risk. The UK private credit market has grown 56% since 2015.

Why it matters: If financial conditions tighten suddenly, leveraged borrowers may struggle to meet trade obligations.

Manufacturing exports hit 4½-year high

Manufacturing PMI rose to 51.7, with export orders at their strongest in four and a half years.

Why it matters: Export strength supports cashflow, but global uncertainty could lengthen international payment cycles.

Market Snapshot

Global markets are experiencing severe risk-off sentiment as the Middle East conflict enters its fourth day, with equity indices tumbling, energy prices surging, and investors reassessing central bank policy expectations amid rising inflation fears.

Equities

• FTSE 100: 10,562
• DAX: 23,962
• CAC 40: 8,219
• S&P 500: 6,881
• Dow Jones: 48,904
• Nasdaq Composite: 22,748
• Nikkei 225: 56,279 (-3.1%)
• Hang Seng: 25,768
• Shanghai Composite: 4,122

Currencies

• GBP/USD: 1.3295
• EUR/GBP: 0.8736
  Sterling has weakened as investors favour the US dollar amid energy-linked inflation risks.

Commodities

• Brent crude: $81.95
• WTI crude: $75.04
• European natural gas: up over 50%
• Gold: $5,282

Morning Wrap
From yesterday morning through today, global markets have been dominated by the escalating Iran conflict, which has triggered the worst two-day selloff in equities since April and a dramatic repricing of central bank policy expectations. European markets tumbled 1.6% on Monday in their worst day since November, while US markets closed sharply lower overnight with the S&P 500 down 1.5% and Nasdaq futures down 2%. Asian markets extended the rout overnight, led by South Korea’s 7% plunge and Japan’s 3.1% decline.

The key development while markets were closed was the intensification of the Middle East conflict with no signs of de-escalation, driving oil prices up 5% and Brent crude above $80. This energy shock has fundamentally altered the monetary policy outlook, with Fed rate cut odds collapsing from 50% to 20% and ECB markets now pricing potential rate hikes rather than cuts. The dollar surged to one-month highs, gaining 0.7% against all major currencies, while gold hit record closing highs above $5,400 before paring gains.

Current futures levels indicate further losses ahead for European markets at the open, with the conflict showing no signs of resolution and inflation fears mounting as energy prices remain elevated.

Insolvency Notices

Petitions to Wind Up

• BETTER CHOICE ROOFING AND BUILDING LTD
• DURSLEY HOTEL LIMITED
• DYNAMIC ENERGY SAVIOUR LIMITED
• FORMAT CONSTRUCTION LTD
• GALLEN & COMPANY LIMITED
• PREMIER GIFTS LTD
• QUEEQUEG RENEWABLES LTD
• ROOFING SW LIMITED
• SNAI1 PRIMARY PRODUCTS 2024 LIMITED
• STANBURY ESTATES LTD
• SUNRISE ONLINE RETAIL LIMITED
• THE LONDON GIFT SHOP LTD
• THE THEATRE CAFE LTD

Appointment of Administrators

• CREDIT CAPITAL CORPORATION INTERNATIONAL LIMITED
• EARTH (EHL) HOLDINGS LIMITED
• GWENT CABLES LIMITED
• INTERLEND HOLDINGS LIMITED
• JUPITER BRIDGING II LIMITED
• JUPITER BRIDGING III LIMITED
• MARKET FINANCIAL SERVICES LIMITED
• MARKET FINANCIAL SOLUTIONS (CAPITAL) LIMITED
• MARKET FINANCIAL SOLUTIONS (FUNDING) LIMITED
• MARKET FINANCIAL SOLUTIONS (GB) LIMITED
• MARKET FINANCIAL SOLUTIONS (LONDON) LIMITED
• MARKET FINANCIAL SOLUTIONS INTERNATIONAL LIMITED
• MARKET FINANCIAL SOLUTIONS LIMITED
• MARS HOLDINGS LIMITED
• PHOENIX NAYLORS ABRASIVES LTD
• SCALABLE SOFTWARE LTD
• TILIA HOLDINGS LIMITED
• VENUS (VHL) HOLDINGS LIMITED

Appointment of Liquidators

• A.R.B. BUILDERS & JOINERS LIMITED
• ADJW LIMITED
• AISSA LABS LIMITED
• ANDEM PROPERTIES (HOLDINGS) LIMITED
• BLACK GOLD DRILLING CONSULTANCY LTD
• BUBBA HEALTH LTD
• CARBONARO SOLUTIONS LTD
• CAROLINE PILL CONSULTING LIMITED
• CHEM TECH CONSULTING LIMITED
• CHILTERNS ANAESTHETIC SERVICES LTD
• CIME LTD
• DHM (HOLDINGS) LIMITED
• DIGITAL BLOCKCHAIN INNOVATIONS LIMITED
• E-PLUMBING LTD
• EDIC ENERGY SERVICES (UK) LIMITED
• E2E-AGILE LIMITED
• FIVE ROSES LIMITED
• FRACTIONAL FIRST UK LTD
• FRANKLIN GLOBAL TRUST PLC
• GB AND CO CONSULTANCY LTD
• GENERAL TECHNOLOGY LIMITED
• GOLDENBERG PROP LIMITED
• GOURLAY LEASING LIMITED
• HOUNSOM CONSULTING LTD
• J. LOTT LIMITED
• KYSOH LIMITED
• MACH SYSTEMS LIMITED
• NEW-CLAD LIMITED
• OPTIONS KITCHENS LIMITED
• PARANOID PICTURES LIMITED
• PIER INVESTMENT COMPANY LIMITED
• QUARTZ HAIR AND BEAUTY LIMITED
• SA CORPORATE COMMUNICATIONS LIMITED
• SALVATEX COLLECTIONS LIMITED
• SB PROCESS LIMITED
• SHORE MANAGEMENT LTD
• TEMPLEFLOWER ESTATES LIMITED
• THE ROBERTSON PRACTICE LTD
• TS TECHNOLOGY LTD
• VNEXT TECHNOLOGIES LTD
• WHITE ROCK OUTDOOR LIMITED

What CPA Can Do For You

When energy costs spike and growth slows, overdue invoices tend to rise.

Early, professional intervention protects both your cashflow and your customer relationships. CPA acts as a considerate extension of your credit control function, encouraging prompt settlement while maintaining goodwill.

If your margins are tight, your credit control must be tighter.

Protect your cashflow. Protect your business.

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.