UK Business News Today – 12 March 2026 | Economy, Markets & Insolvencies

UK businesses are facing another challenging day as global tensions drive oil prices higher, mortgage lenders pull products from the market and hiring slows. Geopolitical risks linked to the Middle East conflict are pushing energy costs up and increasing fears that inflation and interest rates may remain elevated for longer. At the same time, businesses are becoming more cautious about recruitment and investment, while insolvency notices continue to appear across a wide range of sectors.

James Salmon, Operations Director.

Key Developments

• Oil prices surge above $100 as Middle East conflict escalates
• Mortgage lenders withdraw hundreds of deals as rates climb above 5%
• Businesses cut hiring as employment costs rise
• Housing market confidence weakens amid geopolitical uncertainty
• Insolvency notices continue across multiple sectors

SME & Business Environment

Mortgage lenders retreat as rates soar

Mortgage lenders withdrew nearly 500 mortgage deals within 48 hours as funding costs surged and lenders rushed to reprice risk. The average two-year fixed mortgage rate has now climbed above 5%, with the five-year rate reaching 5.09%. Brokers say lenders are reacting quickly to rising market expectations that interest rates may remain higher for longer due to energy-driven inflation pressures.

Why it matters: Higher borrowing costs reduce spending power and investment, increasing the risk of slower payments and tighter cashflow for SMEs.

Young workers face hiring crisis

Businesses are increasingly reluctant to hire young workers as labour costs rise following increases in the minimum wage and national insurance contributions. The British Chambers of Commerce expects unemployment to rise to 5.5%, with younger workers likely to be hardest hit. A Federation of Small Businesses survey found 26% of firms are employing fewer staff than before — the worst level in more than a decade.

Why it matters: Reduced hiring signals business caution and weaker growth expectations, often leading to tighter payment behaviour across supply chains.

Economy & Policy

Chancellor warns war could hit UK economy

Chancellor Rachel Reeves has warned MPs that the escalating Middle East conflict could significantly impact the UK economy. Oil prices have already climbed above $90 a barrel and energy costs are rising again, threatening to push inflation higher. The government is reviewing policies such as fuel duty as it assesses the potential economic fallout.

Why it matters: Rising energy costs and inflation can squeeze both businesses and consumers, increasing the risk of delayed payments and financial stress.

UK economic rebound may be short-lived

Economists expect the UK economy to show modest growth of around 0.2% for January, supported by retail spending and services activity. However, analysts warn that geopolitical tensions and surging energy prices could quickly undermine the recovery. Markets are increasingly concerned that the oil shock may delay interest-rate cuts.

Why it matters: Even modest economic slowdowns can quickly affect SME cashflow, especially for businesses already dealing with higher costs.

One million taxpayers missing refunds

HMRC says up to one million taxpayers could be missing tax refunds worth an average of £453. Many overpayments occur due to incorrect tax codes or job changes, but refunds are not issued automatically. Individuals must check their personal tax accounts online to claim money owed.

Why it matters: When personal finances tighten, consumers often delay payments to businesses, which can ripple through SME cashflow.

Industry & Investment

Heating oil prices investigated

The Competition and Markets Authority has launched a review into sudden price increases in the heating oil market. Customers have reported cancelled orders and significantly higher replacement quotes. Around 1.5 million UK households rely on heating oil, particularly in Northern Ireland.

Freight firm rescued in administration deal

Freight Movement Limited has been saved through a pre-pack administration sale to Monex Distribution Ltd. The deal secures 61 jobs at the Newport-based transport company after the business struggled with rising costs, bad debt and falling revenues.

Business Failures

IT firm Ethos enters administration

Technology company Ethos has entered administration after 30 years in business. FRP Advisory has been appointed as joint administrators and the firm continues trading while its future is assessed.

Automotive prototype firm collapses

Coventry-based HPL Prototypes has entered administration and ceased trading, resulting in the loss of 65 jobs. The company had previously worked with major automotive brands including Bentley and Rolls-Royce.

Global Market Summary

Global financial markets remain volatile as the Middle East conflict intensifies and oil supply disruptions spread.

Equities

European markets fell again on Wednesday as investors worried about higher inflation and interest rates.

  • FTSE 100: 10,304.02
  • STOXX Europe 600: 599.93
  • DAX: 23,560.51
  • CAC 40: 7,999.60

The FTSE 100 has now fallen five times in six sessions, with energy-driven inflation fears weighing on sentiment.

US markets were mixed:

  • S&P 500: 6,775.80
  • Dow Jones: 47,417.27 (lowest close of the year)
  • Nasdaq: 22,716.13

Asian markets declined overnight amid escalating energy supply risks:

  • Nikkei 225: 54,452.96
  • Hang Seng: 25,716.76
  • Shanghai Composite: 4,129.10

Market Drivers

The Middle East conflict continues to dominate global markets. Shipping traffic through the Strait of Hormuz has slowed dramatically after attacks on tankers, while Oman evacuated ships from a key export terminal.

Iran has warned that oil could reach $200 per barrel, highlighting the scale of the supply shock now facing global markets.

The International Energy Agency announced the largest emergency release of oil reserves in history — 400 million barrels — with the United States contributing 172 million barrels from its strategic reserve. Despite this intervention, oil prices remain elevated.

Currencies

Sterling is holding relatively firm as markets reduce expectations of near-term interest-rate cuts.

  • GBP/USD: 1.3378
  • GBP/EUR: 1.1588

The euro has weakened as the conflict exposes Europe’s reliance on imported energy.

Commodities

Energy markets remain the central driver of global financial conditions.

  • Brent crude: $98.09 (after briefly rising above $100)
  • WTI crude: $92.61
  • Gold: $5,176 per ounce
  • Copper: $13,042 per tonne

The oil supply disruption is already approaching levels seen in previous major global energy crises.

Insolvency Watch

Administrations (9)

  • ALBION JONES LIMITED
  • DEMEX LIMITED
  • ETHOS GROUP HOLDINGS LIMITED
  • HELIARA FINANCE LIMITED
  • INNIS & GUNN BREWING COMPANY LIMITED
  • INNIS & GUNN HOLDINGS LIMITED
  • REMEC ENGINEERING SERVICES (BURNLEY) LIMITED
  • THE INNIS AND GUNN HOSPITALITY GROUP (SCO, NI AND IRL) LIMITED
  • TILIA BRIDGING LIMITED

Liquidations (53)

  • A & A GRAPHICS LTD
  • AMBLESIDE CONSULTING LIMITED
  • ARTICSOFT TECHNOLOGIES LIMITED
  • ARTPROJECTS AND SOLUTIONS LIMITED
  • ATELIER CREATIVE PARTNERS LTD
  • BETTS AND FAULKNER LIMITED
  • BMAN CONSULTING LIMITED
  • BROOKLYN & BAY LTD
  • CAAG CONSULTING LIMITED
  • CAMBRIDGE OMFS LIMITED
  • CAMLAY PROPERTY SERVICES LIMITED
  • CODE TANK LIMITED
  • COLLISION FORENSICS LTD
  • COMMERCIAL SERVICES LIMITED
  • DARK PEAK PRODUCTIONS LIMITED
  • DATAQUAL LTD
  • DELWYN GRIFFITHS CYF
  • EARTHWORKS-JOBS.COM LIMITED
  • ECHOWALK LIMITED
  • EDNEY CONSULTING SERVICES LIMITED
  • ENHANCED SPEECH TECHNOLOGY LTD
  • EVERGREEN PHARMA LIMITED
  • FRUTIFERO INVESTMENT II LIMITED
  • FRESHWATER MEDICAL LIMITED
  • FUN FIT ADVENTURE LTD
  • GLENMERE TIMBER PROPERTY HOLDING LIMITED
  • GLENMERE TIMBER PROPERTY LIMITED
  • GREY WOLF SERVICES LTD
  • HALEON UK HOLDING NEW ZEALAND LIMITED
  • HARRAN PENDOYLAN LIMITED
  • ITECH MANAGEMENT (LONDON) LTD
  • IT SYSTEMS PLUS LIMITED
  • J. A. WALKER LTD
  • J.A.F.S. LIMITED
  • KEVIN COTTERELL FINANCIAL SERVICES LTD
  • KEZIA NOBLE LTD
  • LEAN HOLDINGS LIMITED
  • LEGGETT AX LIMITED
  • MICHAEL DRAPERS LIMITED
  • MICHAEL HOUGHTON INSPECTIONS LTD
  • MIND-STAR EXECUTIVE DEVELOPMENT LTD
  • NANOTECH LIMITED
  • OANKAAR LTD
  • ORANGE BAMBOO LIMITED
  • PENNINGTON BUILDING CONTRACTORS LIMITED
  • PIGOTT (PILING EQUIPMENT) LIMITED
  • RETAIL FIXTURE PROCUREMENT (RFP) LIMITED
  • SPEXY LIMITED
  • T.G. O’FEE LIMITED
  • TAYLOR AVIATION SOLUTIONS LTD
  • THE JOURNAL OFFICE LIMITED
  • TOTAL INSULATION SERVICES LIMITED
  • TOWERHOUSE SYSTEMS LIMITED

Winding-up petitions (4)

  • FLO EXPRESS LOGISTICS LIMITED
  • IBALANCE LIMITED
  • MY LONDON SERVICES LTD
  • SAY ESTATES LTD

What CPA can do for you

Economic uncertainty, rising costs and business failures are increasing credit risk across many sectors.

The Credit Protection Association helps businesses protect their cashflow with practical tools designed for real trading conditions.

Members benefit from:

  • CreditCare credit reports on UK companies
  • Debtor monitoring to flag financial warning signs
  • Professional recovery of overdue invoices
  • Ethical credit control that preserves customer relationships

Strong credit management helps businesses stay resilient when economic conditions become unpredictable.

To find out how CPA could support your business call 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.