UK Business News Today: 13 July 2026 | Economy, Markets & Insolvencies

UK SMEs begin the week facing an unsettled combination of domestic policy change, weakening confidence and renewed global market volatility. Rachel Reeves is preparing measures intended to support small business growth and retrain financial services workers in artificial intelligence, while Andy Burnham and his allies are considering wider reforms to taxation, devolution, public ownership and departmental spending. At the same time, renewed US–Iran fighting has pushed oil prices higher, increasing the risk of further cost and interest-rate pressure. For businesses selling goods or services on credit, this environment makes disciplined credit checking, customer monitoring and early action on overdue invoices increasingly important.

James Salmon, Operations Director.

Key Developments

• Government plans are expected to place greater emphasis on small business growth, financial-sector skills and artificial intelligence.
• Possible reforms to business rates, stamp duty and land taxation could significantly alter costs for SMEs and property-owning businesses.
• UK economic confidence is weakening, while concerns are growing about another downturn and reduced pension saving by workers.
• Renewed US–Iran tensions have lifted oil prices and bond yields, raising the risk of higher transport, energy and borrowing costs.
• The latest insolvency notices include 2 administrations, 13 liquidations, 38 winding-up petitions and 4 winding-up orders.

SME & Business Environment

Reeves unveils plans for small business growth

Rachel Reeves is preparing measures intended to improve the conditions facing small businesses, with access to growth, investment and economic opportunity expected to feature prominently. The announcement comes as many SMEs continue to manage higher employment costs, cautious customers and pressure on working capital. Any practical support that improves access to finance, encourages investment or reduces barriers to expansion would be welcomed, although businesses will want detail on how quickly the measures will take effect.

Why it matters: Businesses selling on credit need growth policies to translate into stronger customer demand and more reliable payment performance, rather than additional complexity or delayed support.

Business confidence slips

Business confidence has weakened, reflecting concern about costs, taxation, demand and the wider economic outlook. Lower confidence often leads firms to delay recruitment, investment and purchasing decisions. It can also encourage larger customers to conserve cash by extending payment times or reducing orders.

Why it matters: Falling confidence can be an early warning that customers may begin paying more slowly, making regular account reviews and debtor monitoring essential.

UK economy faces another downturn

Warnings that the UK economy may be heading towards another downturn add to concerns about fragile business demand. A weaker economy could affect sectors already operating on narrow margins, particularly retail, hospitality, construction and smaller suppliers. Even technically solvent businesses can encounter cashflow difficulties if sales fall while fixed costs remain high.

Why it matters: During a downturn, credit risk can rise before formal insolvency becomes visible, so suppliers should monitor changes in ordering patterns and payment behaviour.

Economy scores World Cup boost

The World Cup is providing a temporary lift for parts of the economy, including hospitality, food, drink, retail, broadcasting and leisure. England’s progress is likely to support additional consumer spending around matches, particularly for pubs, restaurants and retailers. However, businesses should distinguish between a short-term sales uplift and sustainable improvement in underlying finances.

Why it matters: Strong match-day trading does not always produce immediate cashflow, especially where customers, event organisers or hospitality groups buy supplies on credit.

Disciplinary investigations cost UK £28.5bn

Workplace disciplinary investigations are estimated to cost the UK economy £28.5bn through management time, lost productivity, absence and disruption. Smaller businesses can be particularly exposed because they have fewer employees available to absorb additional work. Poorly managed investigations can also damage morale and increase staff turnover.

Workers halt pension payments

Some workers are stopping or reducing pension contributions as household budgets come under pressure. The trend indicates that many consumers remain financially stretched despite changes in wages and inflation. Lower long-term saving may temporarily support disposable income, but it also shows the continuing pressure being felt across the workforce.

Tax & Government

Burnham considers expanded autumn Budget

Andy Burnham, who is expected to take over as prime minister on 20 July, is considering an expanded fiscal event later this year. One option under discussion would combine the annual Budget with decisions normally made through the departmental spending review. Supporters argue that this could allow the new government to establish its priorities quickly, including regional growth, defence spending and public-service investment.

Rachel Reeves has advised that any incoming administration should have a fully developed plan and remain focused on achievable objectives. Treasury officials are reported to have held preliminary discussions, although detailed proposals have not yet been developed.

Why it matters: A larger Budget could bring rapid changes to business taxation, public spending and investment, giving SMEs less time to prepare for new costs or opportunities.

Burnham weighs tax, utility and devolution reforms

Burnham and his allies are considering a wider package of reforms involving devolution, public control of utilities and regional investment. Proposals include giving local authorities more power and resources, establishing a northern Number 10 operation and creating a prime minister-led Regional Growth Delivery Unit.

His allies have also argued for reforms aimed at reducing the cost of housing, energy, water and transport. A stronger regional growth strategy could improve infrastructure and demand outside London, although businesses will want clarity on funding and delivery.

Burnham could raise the top rate of tax

Burnham is reported to be considering changes to taxation, including the possibility of increasing the highest rate paid by top earners. He has also indicated that there may be room for some tax changes while maintaining Labour’s commitments on income tax, National Insurance and VAT. Any increase affecting business owners, directors or investors could influence remuneration, investment and succession planning.

Land value tax proposal gains support

Tax expert Dan Neidle has backed the idea of replacing council tax, business rates and stamp duty with a land value tax. A rate of around 1.3% of land value has been suggested, potentially raising approximately £100bn while consolidating several existing taxes. However, the system would require a complex valuation process and safeguards to prevent sudden, unaffordable bills.

Burnham considers stamp duty rethink

A review of stamp duty could form part of the incoming administration’s wider consideration of property and land taxation. Critics argue that stamp duty discourages transactions, mobility and investment. Reform could support the property market, although the government would need to replace a significant source of revenue.

Lower mansion tax threshold could affect 271,000 homes

A proposal to lower the threshold for an additional property tax could bring around 271,000 homes within scope. The measure could have a particularly significant effect in London and parts of the South East, where property values are high even for relatively ordinary family homes. Business owners who hold valuable residential property could also be affected.

Shopkeepers call for business rates overhaul

Retailers are calling for a fundamental review of business rates, arguing that the current system places disproportionate pressure on physical shops. High-street businesses face property-based taxes regardless of trading conditions, while online competitors often operate from lower-cost premises. Rising wage, energy and supplier costs have intensified calls for reform.

IoD calls for rates reform

The Institute of Directors has also called for reform of the business rates system. Directors want a system that supports investment and does not penalise businesses for improving their premises. The growing pressure from both retailers and business groups suggests that rates will remain a major issue for the next government.

Warehouses could fund hospitality tax cuts

Burnham has suggested that higher business rates on warehouses could potentially fund reductions for small hospitality businesses. The proposal appears designed to rebalance the burden between large distribution operations and customer-facing local businesses. However, higher warehouse costs could be passed through supply chains through increased storage and delivery charges.

UK digital tax raises record £1bn

The UK’s digital services tax has generated a record £1bn from large technology companies. The levy was designed to ensure that major digital businesses pay tax on revenues generated from UK users. Its growing yield may encourage the government to retain or expand digital taxation, despite international pressure for coordinated reform.

HMRC pays £1.4m to tax informants

HMRC has paid £1.4m to individuals providing information about suspected tax evasion and non-compliance. The figure shows the value the department places on intelligence gathered from whistleblowers. It also underlines HMRC’s increased focus on enforcement and the use of third-party information.

HMRC targets cryptocurrency

HMRC is increasing its focus on cryptocurrency holdings and transactions. Individuals and businesses may face scrutiny where digital asset gains, income or transfers have not been correctly reported. The growing use of data-sharing agreements means undeclared activity is becoming more difficult to conceal.

State pension tax changes spark concern

Changes affecting the taxation of state pension income have raised concern among older people and advisers. As pension values rise, more recipients may be brought into the tax system even where the state pension is their main source of income. This could create administrative complexity and reduce household spending power.

MPs call for benefits boost for older workers

MPs have called for improved benefits or support to help older people remain in or return to work. The proposal reflects concern about economic inactivity and skills shortages. Better support could expand the available workforce and improve household income, although implementation will determine whether smaller employers benefit.

New prime minister could deliver tax rethink

The expected change of prime minister has increased speculation about a wider reset of tax and economic policy. Business groups are likely to seek stability, clearer incentives and relief from rising fixed costs. Sudden changes, however, could create further uncertainty if introduced without sufficient notice.

Khan backs Miliband for Chancellor

London mayor Sadiq Khan has backed Ed Miliband as a possible future Chancellor. The discussion adds to uncertainty about the composition and policy direction of a new government. A change in Chancellor could influence tax, energy and business policy.

Economy, Property & Infrastructure

New-build homes fall to a record low

The supply of new-build homes has fallen to a record low, adding to concern about the capacity of the construction and development sectors. Lower building levels affect contractors, material suppliers, tradespeople and professional services. Planning delays, financing costs and weak buyer confidence may all be contributing.

Housebuilders hold land for 869,000 homes

Housebuilders are reported to control enough land for approximately 869,000 homes. The figure has intensified debate about planning, land banking and the pace of development. Builders may argue that not all sites are immediately viable or ready for construction, but the scale of the pipeline is likely to increase political pressure.

Whistleblowers raise blackout concerns

Whistleblowers have raised concerns about the resilience of the UK’s electricity system and the possibility of supply disruption. Businesses are increasingly dependent on reliable power for payments, communications, stock control, manufacturing and digital systems. Even short interruptions can cause lost sales and operational delays.

London’s low-income families face £600 burden

Low-income families in London could face an additional annual burden of around £600. Higher household costs are likely to affect discretionary spending and increase pressure on businesses serving local consumers. The impact may be particularly acute in hospitality, retail and personal services.

Employment, Technology & Skills

Reeves expected to announce AI retraining for financial services

Rachel Reeves is expected to use her Mansion House speech to announce plans requiring financial institutions to retrain workers in artificial intelligence. The initiative reflects concern that AI will reshape many roles across banking, insurance and professional services. Retraining could improve productivity and help employees adapt, but it may create additional short-term costs for employers.

Bank of England to regulate key technology firms

The Bank of England is preparing to oversee technology businesses considered critical to the financial system. Banks and payment providers rely heavily on cloud computing, data services and other external technology. Greater regulation is intended to reduce the risk that a failure at one provider disrupts a large part of the economy.

Apple sues OpenAI over alleged trade-secret theft

Apple is suing OpenAI over allegations that former Apple employees disclosed confidential technologies, products and processes relating to consumer hardware. OpenAI denies the claims. The case highlights growing competition for artificial-intelligence expertise and proprietary technology.

SpaceX valuation claim

Elon Musk has claimed that SpaceX could become more valuable than the rest of Earth if it achieves its long-term goals. The statement reflects the exceptionally ambitious expectations surrounding space infrastructure, communications and future off-world activity.

Energy, Climate & Costs

Summer heatwaves linked to more than 2,700 deaths

Researchers estimate that this summer’s heatwaves may already have contributed to more than 2,700 deaths in England and Wales. Climate change is estimated to have increased temperatures by between 3°C and 4°C and may be responsible for more than 40% of the recorded deaths. The World Health Organization has described Europe’s extreme heat as a warning of conditions likely to become more common.

Renewed Middle East conflict lifts oil prices

Fighting between the United States and Iran, alongside conflicting claims about whether the Strait of Hormuz remains open, has unsettled markets. Brent crude rose from around $75 to approximately $79 a barrel. The Strait is one of the world’s most important energy routes, and uncertainty about shipping has increased fears of further supply disruption.

Retail, Consumer & Sport

England reaches the World Cup semi-finals

England defeated Norway 2–1 in the World Cup quarter-final and will face Argentina in the semi-final on Wednesday. France will play Spain in the other semi-final on Tuesday. England’s continued progress is expected to produce another boost for pubs, hospitality venues, food retailers and businesses connected with live sport.

Sinner retains Wimbledon men’s title

Jannik Sinner retained his Wimbledon title by defeating Germany’s Alexander Zverev in the men’s final. The 24-year-old Italian secured his fifth Grand Slam title. Linda Noskova of the Czech Republic won the women’s title on Saturday.

Global Market Summary

Global markets opened the week under pressure after a sharp escalation in fighting between the United States and Iran. Conflicting statements over whether the Strait of Hormuz was open drove oil prices higher and encouraged investors to reduce exposure to riskier assets.

UK and European markets

The FTSE 100 stood at 10,498.94 on Monday morning, while the STOXX Europe 600 was at 640.45. The EURO STOXX 50 was at 6,268.99, Germany’s DAX at 25,096.30 and France’s CAC 40 at 8,342.43.

European markets had already recorded their worst week since April, with the STOXX Europe 600 falling 1.8% over the week and ending a four-week winning run. On Monday, construction, travel and semiconductor companies were among the weakest sectors. ASML fell 1.6%, while ASM International dropped 2%.

Energy companies performed more strongly as oil prices rose. BP gained approximately 2.4%, while Shell rose around 1.4%.

Citi strategists have downgraded UK equities from overweight to underweight despite the FTSE 100 being up 5.7% year to date. Citi argued that the UK market’s defensive and commodity-heavy structure may be less attractive if earnings growth and market leadership broaden internationally. The bank upgraded Japanese equities and European financial companies.

United States

US equities closed higher on Friday. The S&P 500 ended at 7,575.39, the Nasdaq 100 at 29,825.11 and the Dow Jones at 52,637.01. The Dow gained around 150 points during Friday’s session but still recorded a weekly loss.

By Monday morning, US futures had turned lower. S&P 500 futures were approximately 0.4% to 0.5% below Friday’s close, while Nasdaq 100 futures were around 1% to 1.2% lower.

US Treasury prices also fell, pushing the yield on the two-year government bond to 4.23%, its highest level since February 2025. Higher yields reflect concern that rising oil costs could keep inflation elevated and limit the Federal Reserve’s ability to reduce interest rates.

Asia

Asian equities experienced the strongest selling. The MSCI Asia Pacific Index fell by as much as 2.2%, reaching its lowest level in a month.

South Korea’s Kospi dropped approximately 8.9%, triggering a market-wide trading suspension. SK Hynix fell by more than 12%, with the market wrap recording a decline of as much as 15% during the session. The fall followed the strong Nasdaq debut of the company’s American depositary receipts, which raised approximately $26.5bn and closed more than 13% higher on Friday. Profit-taking by investors holding the cheaper Seoul-listed shares may have contributed to the reversal.

Japan’s Nikkei 225 fell 1.9% to 67,242.73, while the Shanghai Composite dropped 2.1% to 3,913.79. Hong Kong’s Hang Seng was more resilient, gaining 0.2% to 24,213.72.

Market drivers

The central market concern is the status of the Strait of Hormuz. Iran declared the waterway closed, while the United States rejected that claim and said it remained open. Despite this, visible shipping movements were reported to have largely stopped over the weekend.

Markets are also watching US inflation data, central-bank commentary and the effect of higher energy prices on future interest-rate decisions. Technology shares remain volatile following the SK Hynix reversal, although strong revenue figures from TSMC continue to indicate robust demand for AI-related hardware.

Currencies

Sterling remained broadly stable against the US dollar at approximately $1.339. The euro strengthened slightly against the pound, with EUR/GBP around 0.854, equivalent to GBP/EUR of approximately €1.171.

The US dollar strengthened against several currencies as higher oil prices increased expectations that US interest rates may remain elevated. The Japanese yen weakened towards ¥162 to the dollar.

Commodities

Brent crude rose sharply to between approximately $77.45 and $78.76 a barrel, having briefly approached $80. West Texas Intermediate rose to around $72.73 to $74 a barrel. European natural gas increased by approximately 3.7% to around €50 per megawatt hour.

Gold fell to approximately $4,072 an ounce, having declined by as much as 1.8% during the session. This was an unusual response to geopolitical tension, but investors appeared more concerned that higher oil prices would lead to higher inflation and interest rates. Silver also fell sharply.

What markets mean for SMEs

Higher oil and gas prices could increase fuel, freight, utility and supplier costs. Rising government bond yields may also keep commercial borrowing expensive for longer. Businesses selling on credit should consider whether customers in transport, hospitality, construction, manufacturing and other energy-intensive industries have sufficient margin and working capital to absorb another cost increase.

Insolvency Watch

Administrations (2)

• SKY FUTURES PARTNERS LIMITED
• TRINIT GROUP LIMITED

Liquidations (13)

• ANDKEEL LIMITED
• COURPARK HOLDINGS LIMITED
• GET FRESH (N.I.) LIMITED
• GLADEISLE SERVICES
• IMMACULATE VEGAN LTD
• INDUSCOURT LIMITED
• LONGWEAR PRODUCTS LIMITED
• NAUGHTS LIMITED
• NDC TECHNOLOGIES LIMITED
• SMART AESTHETICS LTD
• SRIJANA CONSULTANCY LTD
• STOCKS LANDCO ONE LTD
• VIMELA THERAPEUTICS LIMITED

Winding-up Petitions (38)

• ALBANN LIMITED
• CAFE UTOPIA LTD
• CHAMPION SPONSORSHIP LTD
• CLEAN GREEN ENERGY LIMITED
• CMAN PROPERTIES INVESTMENT LTD
• COPPERMOON LIMITED
• DGI FOODS LIMITED
• DNP HOSPITALITY LTD
• DRAGONFLY BIOSCIENCES LIMITED
• DY9 LIMITED
• EASTERN EAGLE TRANSPORT LTD
• FST MEDIA RIGHTS LIMITED
• FUNKY MONK HERTS LTD
• FUSION SERVICES LTD
• HAMPSHIRE GARDEN STRUCTURES LTD
• HIGHWAY CIVIL ENGINEERING LTD
• HOCKLEY DEVELOPMENTS RESIDENTIAL LIMITED
• JACK’S KITCHEN LIMITED
• JP.PEERS LTD
• KAREN ANNE JAMIESON LTD
• KIMBLAND DISTILLERY LTD
• LOTHIAN MEATS LTD
• MAS CONSTRUCTION PROJECTS LTD
• MEHAK GRILL HOUSE LTD
• MS FOODS MANCHESTER LIMITED
• OODDLES KITCHEN LTD
• PIVOTAL PLUMBING SUPPLIES LTD
• ROOF CARE COMPANY (INDUSTRIAL) LIMITED
• SBR FOXHILLS LIMITED
• SBS TRANSPORT LTD
• SERE-TECH INNOVATION LIMITED
• STEAMIN MUGG LTD
• THE RZL COMPANY LIMITED
• TK FOOD LTD
• VAPESTOP LIMITED
• WINCHESTER PUB CO LTD
• WMEP LTD
• ZORVEX LIMITED

Winding-up Orders (4)

• FUSION SERVICES LTD
• JP.PEERS LTD
• SERE-TECH INNOVATION LIMITED
• ZORVEX LIMITED

Keeping cash moving as costs and uncertainty rise

Today’s news presents a difficult mixture for SMEs: weaker confidence at home, possible changes to taxation and business rates, higher oil prices and a sizeable number of formal insolvency notices.

Businesses that sell on credit should not wait for a customer to enter formal insolvency before reviewing the risk. Warning signs can include unexplained payment delays, repeated promises that are not kept, sudden disputes, reduced order values, changes in directors or an increasing dependence on extended terms.

CPA can help businesses protect cashflow through CreditCare credit reports, ongoing debtor monitoring, professional credit control support and the recovery of overdue commercial accounts. Early, proportionate action often improves the prospects of payment while helping preserve valuable customer relationships.

Just call 020 8846 0000 (Monday to Friday, 9am to 5pm) or email PaidQuick@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.

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