UK Business News Today: 12 November 2026 | Economy, Markets & Insolvencies

The UK economy is growing faster than many expected, but that doesn’t necessarily mean life is getting easier for businesses. AI investment and resilient consumer spending are supporting growth, while the prospect of further interest rate rises, changing tax rules and fragile customer finances could leave SMEs facing a familiar problem: sales on paper don’t always translate into money in the bank.

Today’s news also brings a warning from the collapse of a major food supplier, pressure on retailers and house sales, and renewed uncertainty around energy and international trade.

James Salmon, Operations Director.

Key Developments

• UK GDP rose 0.7% in Q3, with AI-related investment and services driving growth, but stronger activity may keep borrowing costs higher.
• The Bank of England faces pressure to raise interest rates again, while energy bills and financing costs continue to squeeze customers and suppliers.
• HMRC’s proposed new powers are drawing scrutiny, including historical tax corrections and access to digital information used in tax calculations.
• Kanes Food entered administration with 600 jobs lost, while Poundland seeks more time to pursue a sale and support suppliers.
• Global markets are divided: European industrial shares have strengthened, but Nvidia-related uncertainty and disruption in the Strait of Hormuz are unsettling technology and energy markets.

Economy & Policy

UK economy grows 0.7% as AI investment helps offset energy pressures

Office for National Statistics figures show GDP increased 0.7% in the third quarter of 2026, up from 0.5% in the second quarter and in line with economists’ forecasts. Growth reached 1.9% year-on-year, while September output rose 0.2%, beating expectations of no monthly growth.

Services expanded 0.9% over the quarter, including a 2.1% rise in information and communication and 1.6% growth in professional, scientific and technical activities. Manufacturing also grew 0.9%; consumer and government spending each increased 0.6%, while business investment stood 3% above a year earlier.

Why it matters: Stronger demand is welcome, but suppliers selling on credit should assess whether individual customers are benefiting from growth or merely absorbing higher costs.

Stronger growth increases pressure on interest rates

The latest GDP figures reinforce expectations that the Bank of England may raise interest rates further as it seeks to control inflation.

Deputy Governor Clare Lombardelli has signalled that another increase could be needed, with market pricing in the supplied reports indicating close to an 80% chance of a move in December.

The Bank expects growth to slow to around 0.3% in the final quarter and 0.2% per quarter during 2027, while inflation could approach 5% next year. Higher energy costs remain a concern, with household gas and electricity bills reportedly expected to rise by around a quarter in January.

Why it matters: Higher interest rates increase financing costs and can delay customer payments, making credit limits and prompt invoice follow-up more important.

Chancellor leaves open prospect of further tax rises

Chancellor John Healey has declined to rule out additional tax changes ahead of the next Spending Review, saying decisions will be taken during 2027.

Government departments have also been asked to identify savings. The National Institute of Economic and Social Research has warned of a potential £30 billion fiscal gap if defence and social care commitments are maintained.

Former Bank of England chief economist Andy Haldane has separately criticised the Government’s fiscal strategy, warning in an opinion article that borrowing costs and spending pressures create substantial risks.

Tax & Government

HMRC’s proposed Duty to Correct raises questions over old tax mistakes

A proposed Duty to Correct, due from April 2028 according to the supplied report, would require taxpayers to address errors in historic returns and could expose some cases to scrutiny reaching back up to 20 years.

Tax specialists, including Fiona Fernie of Blick Rothenberg, have questioned whether penalties could distinguish sufficiently between innocent errors and deliberate non-compliance.

They also point to the tension between lengthy review periods and shorter statutory record-keeping requirements for many self-employed taxpayers. The report states that no minimum amount would apply to correction notices.

HMRC seeks wider access to digital tax records, including AI conversations

Separate proposals would broaden HMRC’s ability to request digital material relevant to tax inquiries, potentially including records of calculations carried out through AI chatbots.

The supplied report says failures to comply could attract penalties starting at £300.

Qdos chief executive Seb Maley said the intention is to understand how AI-generated tax figures are produced, while the Taxpayers’ Alliance raised privacy concerns. HMRC says its powers need to reflect increasingly digital record-keeping.

Digital Services Tax faces criticism over its economic cost

The US-based Tax Foundation estimates that Britain’s Digital Services Tax reduces annual GDP by around £903 million, broadly comparable with the £900 million it says the levy raised last year.

It argues that taxes on large digital platforms can discourage investment and be passed on to customers, though this remains the think tank’s assessment rather than an established economic outcome.

The Office for Budget Responsibility forecasts Digital Services Tax receipts above £1 billion this year and £1.6 billion by 2031–32.

Landlord database raises tax and data-sharing questions

The Government’s proposed private rented sector database is expected to begin in the West Midlands in December, with a reported £65 annual registration fee before wider rollout in England.

Information could include rents, payment frequency, licences and safety certificates, and may be shared with HMRC and local authorities.

Chris Norris of the National Residential Landlords Association has asked for greater clarity on data-sharing arrangements, particularly alongside proposed increases in tax on property income.

Financial Services Bill prompts debate over consumer redress

Chancellor John Healey has backed legislation that would introduce a 10-year limit on complaints to the Financial Ombudsman Service and alter the burden of proof in some cases.

Consumer groups Fairer Finance and Which? argue that the proposals could make independent redress harder to obtain, and Treasury Committee chair Meg Hillier has questioned the balance of protection.

Healey rejected the suggestion that the proposals simply assume financial firms are right.

SME & Business Environment

Kanes Food enters administration, with 600 jobs lost

Kanes Food Limited, a food supplier with a 36-year history, has entered administration and ceased trading, with approximately 600 jobs lost.

Administrators from PwC cited ongoing losses and negative cashflow as serious pressures on the business.

The closure affects staff and potentially businesses in its supply chain. Local MP Nigel Huddleston described the news as devastating for families in the area.

Poundland seeks creditor protection extension while buyers consider offers

Poundland’s owner Gordon Brothers reportedly supports extending creditor protection by 10 days while it considers three offers for the entire chain.

The business has around 600 shops and employs approximately 11,000 people. Gordon Brothers has released £11 million for suppliers and pledged further support during the sale process.

Commons Business and Trade Committee chair Liam Byrne has criticised the owner and alleged that directors extracted £18.3 million in fees, a claim attributed to him rather than independently established here.

Metro Bank opens formal sale process

Metro Bank has launched a strategic review and formal sale process, inviting interest in a potential takeover of the entire lender.

It says it has received no approaches and is not currently holding discussions with potential bidders.

The bank has reiterated its standalone return on tangible equity targets of more than 13% in Q4 2026 and more than 15% in 2027.

Retail, Hospitality & Property

Dr Martens reports smaller statutory loss but cautious outlook

Dr Martens reported a first-half pretax loss of £8.5 million, compared with £11.0 million a year earlier, although its adjusted pretax loss widened to £13.7 million.

Direct-to-consumer trading remains difficult, with some improvement in October after a particularly weak September.

The retailer said a wide range of full-year results remains possible.

Fuller’s raises profit expectations after strong first half

Pub and hotel operator Fuller, Smith & Turner expects full-year adjusted pretax profit to exceed market expectations.

First-half pretax profit increased to £28.5 million, from £21.1 million a year earlier, for the 26 weeks to 26 September.

Executive chair Simon Emeny pointed to continued positive trading momentum. Its performance offers a more encouraging picture of parts of the hospitality sector.

Glass packaging levy to be removed for pubs and restaurants

Environment Secretary Dame Angela Eagle has announced that the Extended Producer Responsibility levy will no longer apply to relevant glass packaging sold through pubs and restaurants from April 2027.

The Government’s change follows criticism that hospitality glass was being treated in the same way as household waste.

The British Beer and Pub Association welcomed the move after a period of rising employment and operating costs.

Housing demand weakens, with prime London particularly affected

The Royal Institution of Chartered Surveyors reports a net balance of 17% of respondents expecting sales to decline, while a net 24% reported falling new buyer inquiries.

Agreed sales reached their weakest reading in three months as higher mortgage rates deterred buyers.

Separately, LonRes reported a 17.5% year-on-year fall in sales in prime London postcodes and a 21.3% decline in homes under offer. Price reductions were 25.7% higher than pre-pandemic levels, with tax changes and uncertainty cited among the headwinds.

Industry, Investment & Technology

BAE Systems boosts cashflow expectations on strong orders

BAE Systems raised its 2026 free cashflow guidance to approximately £3 billion, from more than £2 billion previously.

The defence contractor has secured £33 billion in orders so far this year while leaving full-year sales and earnings guidance unchanged.

It also expects to return around £1.6 billion through dividends and share buybacks.

Rolls-Royce announces £1.5 billion buyback

Rolls-Royce launched an interim £1.5 billion share buyback and maintained its full-year adjusted operating profit outlook of £4.7 billion to £4.9 billion and free cashflow guidance of £3.8 billion to £4.0 billion.

Siemens orders hit record levels on demand for automation and AI

Siemens reported full-year orders of approximately €108 billion, up 25%, helped by data centres, industrial AI and factory automation.

It increased its medium-term comparable revenue growth ambition to as much as 11%, from 9%.

Its shares rose strongly in Frankfurt, supporting Germany’s DAX index.

UK backs Heathrow expansion and sets conditions for data centres

Chancellor John Healey has confirmed Government support for a third runway at Heathrow, although consultation responses and planning requirements still need to be addressed.

Separately, the Government has introduced a data centre covenant intended to ensure host communities benefit from investment.

Its ambition is to treble UK computing capacity to 6 gigawatts by 2030, with Healey saying developments that fail to deliver local benefits could be rejected.

AI platforms face new limits on automated purchasing

United Airlines says it will block third-party personal AI agents from booking flights or checking in passengers through its platforms, citing privacy risks.

Amazon has also restricted automated agents from transacting on its website, while leaving open the possibility of changing its approach later.

The decisions highlight unsettled rules around AI-assisted buying and access to customer information.

International & Trade

Cameron and Burnham differ over the UK’s future relationship with the EU

Former Prime Minister David Cameron has urged Prime Minister Andy Burnham to focus on a closer UK-EU partnership rather than reopening the argument about membership.

Burnham has said options for a deeper relationship remain under consideration, including arrangements involving the single market or customs union.

The Government is preparing for a summit covering agrifood trade, youth mobility and emissions trading, and has suggested a potential agreement could add 0.4% to GDP.

Labour minister Torsten Bell challenged Cameron’s assessment of Brexit’s effects on business, while Cameron warned that renewed membership debate might complicate negotiations.

Spain experiences major general strike amid housing tensions

Spanish unions say around 4 million workers participated in the country’s first general strike in 14 years, with demonstrations focused on the housing crisis.

Some protests reportedly involved clashes.

Prime Minister Pedro Sánchez has called snap elections later in November after failing to pass housing reforms.

Nvidia leadership allegations unsettle the AI sector

Reports that Nvidia’s board is discussing chief executive Jensen Huang’s future, following allegations about his personal relationships and possible security concerns, unsettled technology stocks after the US close.

These are reported allegations, not established findings.

Nvidia fell sharply in after-hours trading, while rivals including AMD, Broadcom and China’s SMIC attracted investor attention.

CoreWeave separately reported stronger-than-expected results, highlighting continuing demand for AI computing capacity despite the volatility.

Strait of Hormuz disruption keeps energy and shipping risks in focus

Reports of explosions disabling two oil tankers in the Strait of Hormuz have renewed concern over shipping through a critical energy route.

Meanwhile, there are reports of possible US-Iran diplomatic discussions and increased Saudi crude production.

Shipping group Hapag-Lloyd has also flagged continuing operational pressures from Middle East disruption and congestion, even as freight rates benefit its earnings.

easyJet shareholders approve proposed £5.7 billion takeover

Shareholders in easyJet have approved the proposed £5.7 billion acquisition by Apollo Management X, with more than 97% of scheme shares and more than 83% of voting shareholders supporting the deal.

The transaction, agreed in August, is expected to complete before the end of the first quarter of 2027, subject to outstanding conditions.

Allianz and Foxconn report stronger earnings while 3i falls short

Allianz reported quarterly operating profit of €4.71 billion, above expectations of €4.2 billion, with Pimco attracting €41 billion of net inflows.

Taiwanese manufacturer Foxconn reported net income of NT$77.5 billion, up 34% year-on-year, helped by demand for AI servers.

UK investment group 3i reported a first-half total return of £1.62 billion, below market estimates of £2.25 billion.

Research highlights the cost of delaying financial decisions

Research from St. James’s Place suggests more than 13 million UK adults experience stress associated with delayed financial decisions; 41% of respondents reported emotional strain linked to procrastination.

Separate illustrative calculations from Interactive Investor suggest starting pension contributions at 36 rather than 22 could produce a much smaller retirement fund, with a gap above £500,000 under its assumptions.

Why it matters: The wider lesson for businesses is the value of prompt financial decisions, especially when overdue balances and cashflow pressures can compound over time.

Global Market Summary

Major global equity indices

European markets: Strong earnings support shares

European equities extended their gains after Wednesday’s rally, with the STOXX Europe 600 reaching a fresh record high during the previous session.

Germany’s DAX led Thursday morning’s advances, climbing 1.19%, supported by strong Siemens results. The industrial group reported record orders and increased its medium-term growth ambitions as demand for automation, AI infrastructure and data centres accelerated.

The FTSE 100 gained 0.33%, supported by Britain’s stronger economic performance, while the CAC 40 advanced 0.80%.

The wider European technology sector has also benefited from renewed interest in semiconductor companies, although developments surrounding Nvidia have introduced uncertainty.

US markets: AI enthusiasm meets leadership uncertainty

Wall Street closed higher on Wednesday, with the S&P 500 up 1.31%, the Dow Jones gaining 0.49% and the Nasdaq Composite rising 1.60%.

Strong results from AI infrastructure provider CoreWeave helped restore investor confidence, with semiconductor and technology shares among the strongest performers.

However, that optimism faded after the regular session ended. Reports concerning Nvidia chief executive Jensen Huang triggered a sharp fall in the company’s shares during after-hours trading, putting pressure on US equity futures.

The contrast illustrates how sensitive technology valuations remain to changing expectations, particularly after substantial investment in artificial intelligence.

Asian markets: Technology shares lead declines

Asian markets weakened overnight, reflecting the uncertainty surrounding Nvidia and the wider semiconductor industry.

Japan’s Nikkei 225 fell 0.70% to 60,819.36, while Hong Kong’s Hang Seng declined 1.26% to 24,008.55.

Taiwan’s benchmark index suffered a larger decline of approximately 2.6%, reflecting its exposure to the global semiconductor supply chain.

Investors also remain alert to trade relations between Washington and Beijing, currency movements and geopolitical developments.

Currency markets: Sterling remains relatively stable

GBP/USD

$1.3269

Earlier daily move: −0.02%

GBP/EUR

€1.1962

Earlier daily move: −0.03%

Sterling was little changed against the dollar and euro despite the UK’s encouraging GDP figures.

The stronger economic data supports expectations of further Bank of England interest rate increases, although a wider-than-expected UK trade deficit has tempered some of that optimism.

For businesses importing goods, even modest exchange rate movements can affect margins when large invoices are denominated in foreign currencies.

Commodities: Oil prices ease despite shipping risks

Brent crude

$92.65

−0.12%

WTI crude

$86.29

−0.28%

Gold per oz

$3,939

−1.22%

Oil prices edged lower despite reports of two tankers being disabled by explosions in the Strait of Hormuz.

Increased Saudi Arabian production and the possibility of renewed diplomatic talks between Washington and Tehran helped offset concerns about shipping disruption.

Gold also declined following the previous day’s stronger appetite for risk. Meanwhile, natural gas rose approximately 3.1% amid supply and weather-related concerns.

For UK businesses, the key concern remains the impact of energy price volatility on transport costs, manufacturing expenses and household spending.

Why it matters for businesses selling on credit: Global markets may seem remote from the day-to-day business of raising and collecting invoices, but changes in interest rates, currencies, fuel costs and investment confidence can quickly affect customers’ ability to pay.

Insolvency Watch

Administrations (6)

• DEEPLY FOODS LIMITED
• FINANCIAL HOLDINGS (MIDLANDS) LIMITED
• KANES FOOD LIMITED (reported administration, not in the formal notice batch)
• LEE LONGLAND & CO. LIMITED
• SIMON AND DEAN LIMITED
• THORPE REA STABILISATION COMPANY LIMITED

Liquidations (19)

• AUB CUSTOMER SERVICES LIMITED
• AUB INVESTMENT HOLDINGS
• AUB PROPERTY INVESTMENT LIMITED
• AUB PROPERTY INVESTMENTS NUMBER 1 LIMITED
• BELL & SONS CONSTRUCTION LIMITED
• BLUEORCHARD SUSTAINABLE ASSETS COMPANY LIMITED
• BURFORD PROPERTY LIMITED
• CLARGES MAYFAIR PROPERTIES LTD
• HAYCH A LTD
• INWEREGBU LIMITED
• KTODD CONSULTING LIMITED
• LANDFORM SMALLFIELD LIMITED
• MENASHE BUSINESS MERCANTILE LIMITED
• MOCSS LTD
• MRY RENEWABLES LIMITED
• OFFICE CHANGES LIMITED
• SJB HOUSES LIMITED
• TANLION LIMITED
• TUNBRIDGE WELLS COLORECTAL SURGERY LIMITED

Winding-up Petitions (1)

– PANINO GIUSTO (UK) LTD

Keeping cash moving as costs and credit risks change

Today’s stronger GDP figures are encouraging, but the stories behind them are uneven. One business is raising its profit forecast; another has stopped trading. Some customers have healthy order books; others are facing higher funding costs, tax uncertainty or weaker demand.

For SMEs that grant credit, the priority is not just making sales, but making sure those sales turn into cash.

CPA helps businesses take a consistent, considerate approach to credit management.

CreditCare credit reports and debtor monitoring can help identify changing customer risks before they become serious problems. Meanwhile, CPA’s credit control support and professional overdue account recovery services help businesses follow up promptly, professionally and without unnecessarily damaging valuable trading relationships.

Earlier action can make the difference between a manageable late invoice and an avoidable bad debt.

Protecting cashflow is not simply about recovering overdue money. It is about giving businesses the confidence to keep trading, investing and growing.

For practical support with credit management and overdue invoices:

020 8846 0000

Monday to Friday, 9am to 5pm

PaidQuick@cpa.co.uk

CPA contact page

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.

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