UK Business News Today – 13 March 2026 | Economy, Markets & Insolvencies

The UK economy showed signs of stalling at the start of the year as fresh geopolitical tensions threaten to push energy prices sharply higher. Oil has surged above $100 per barrel amid disruption to shipping through the Strait of Hormuz, raising fears of another inflation shock for businesses and households. With UK growth already flat in January, rising fuel costs and global market volatility are increasing the risk of a wider economic slowdown.

James Salmon, Operations Director.

Key developments

• Oil prices surge above $100 as the Strait of Hormuz disruption intensifies
• UK GDP unexpectedly stalls at the start of 2026
• Businesses warned energy bills may rise sharply
• Exporters say they lack government support navigating trade changes
• Tube strikes threaten London’s hospitality sector
• More than 70 new insolvency petitions published

UK faces recession risk as oil prices surge

Economists warn the UK could face recession if oil prices continue rising sharply due to the Middle East conflict. Analysis suggests that if Brent crude rises toward $140 per barrel for several months, global GDP could fall while inflation surges.

The International Energy Agency has released a record 400 million barrels of emergency reserves in an attempt to stabilise markets, but analysts say the move signals serious concern about global supply disruptions.

Why it matters: Higher energy costs quickly feed into transport, manufacturing and supply chains, increasing business costs and slowing customer spending.

Energy bills set to soar for businesses

Businesses are being warned that energy prices may rise sharply as the Middle East conflict drives oil and gas prices higher. Many companies will renew energy contracts in April, raising fears of a significant jump in costs.

Natural gas prices have already risen around 60% since the conflict began, while oil prices have surged above $100 per barrel.

Why it matters: Rising energy contracts can significantly increase operating costs and strain cashflow for SMEs.

UK economy stalls at the start of the year

The UK economy unexpectedly recorded zero growth in January, missing economists’ expectations of a 0.2% expansion. Services output stagnated, manufacturing grew only slightly, and construction posted modest gains.

Economists warn the weak start to the year leaves the economy vulnerable to external shocks such as rising energy prices.

Why it matters: Slower economic growth often leads to weaker demand and longer payment cycles for businesses trading on credit.

Global Market Summary

Global markets remain under pressure as the Iran conflict enters its third week with no signs of resolution. The effective closure of the Strait of Hormuz has pushed oil prices above $100 for the first time since 2022, raising fears of a renewed inflation shock and potential stagflation.

Equity markets across Europe and the United States fell sharply as investors reacted to rising energy prices and concerns about financial-sector exposure to private credit markets. The S&P 500 dropped 1.5% to 6,673, its lowest level since November, while the Dow Jones fell 739 points. In Europe, the Stoxx 600 declined 0.6%, with banking stocks particularly weak following concerns over exposure to private credit markets.

Asian markets followed the global downturn overnight. The Hang Seng dropped 1%, the Shanghai Composite fell 0.8%, and Japan’s Nikkei 225 lost more than 600 points.

Oil markets remain the primary driver of volatility. Brent crude surged more than 9% on Thursday and is trading around $102 this morning. WTI crude is near $97. The rally reflects severe supply disruption linked to attacks on shipping and the effective blockade of the Strait of Hormuz.

Currency markets are also reacting to the geopolitical shock. The US dollar has strengthened as investors seek safe-haven assets, while sterling weakened to around $1.326 after disappointing UK economic data. The euro has also fallen as Europe faces higher import costs for energy.

Commodity markets are mixed. Gold is trading near $5,070 per ounce after a recent pullback, while copper remains steady near $13,000 per tonne as long-term demand for electrification and infrastructure remains strong.

The key concern for investors is the risk of stagflation. Rising energy costs could push inflation higher while slowing economic growth, forcing central banks to reconsider plans for interest-rate cuts.

Government considers tax relief for Britons fleeing war

HMRC is considering tax exemptions for more than 160,000 British nationals returning to the UK from the Gulf region due to the conflict with Iran. Under current rules, individuals who spend more than 183 days in the UK may become tax residents.

Officials are exploring whether emergency circumstances should allow affected individuals to avoid unintended tax liabilities.

John Lewis calls for urgent business rates reform

John Lewis has urged the Government to honour its pledge to reform the business rates system, arguing that high property taxes continue to disadvantage physical retailers compared with online competitors.

The company’s CEO said business rates remain one of the largest costs for retailers after staffing.

Why it matters: High fixed property costs continue to squeeze margins for bricks-and-mortar businesses.

Exporters say they feel abandoned by government

British exporters say they lack adequate support navigating new global trade rules. A survey by the British Chambers of Commerce found that none of the nearly 1,000 firms surveyed believed they were receiving sufficient assistance.

Business groups warn the UK risks falling behind competitors in global trade.

Why it matters: Poor export support can limit growth opportunities for UK businesses selling overseas.

FCA warns over second charge mortgages

The Financial Conduct Authority has warned lenders about poor practices in the second charge mortgage market. These loans allow homeowners to borrow against property equity but often carry higher interest rates.

The regulator found some lenders failing to conduct adequate affordability checks.

Why it matters: Rising household debt can reduce consumer spending and increase the risk of payment problems for businesses.

Pension transfer system criticised as outdated

Major digital pension providers say the UK pension transfer system remains inefficient and overly reliant on paper processes. Transfers can take up to six months, delaying access to funds.

Industry groups are calling for a 30-day transfer deadline.

DIY investment market continues to grow

The UK’s DIY investment market grew 19% last year to reach £772bn in assets under administration. Around 18.4 million people now manage their own investments through digital platforms.

Low fees and online tools are attracting younger investors entering the market.

Tube strikes threaten London hospitality sector

London’s hospitality industry is bracing for disruption from planned Tube strikes scheduled across 12 days between March and May. Previous strike action caused a steep drop in bookings and walk-in customers.

Industry groups warn the strikes could cost the sector millions in lost revenue.

Why it matters: Transport disruption can sharply reduce customer footfall for restaurants, bars and entertainment venues.

Home Office tightens migrant worker licence enforcement

More than 1,500 employers lost their licences to sponsor migrant workers in the last quarter as the Home Office increased immigration enforcement checks.

Businesses found breaching visa rules risk losing their ability to recruit overseas staff.

Rental market loses £79bn as landlords exit

The UK private rental sector has lost £79bn in value over the past three years. Rising taxes, higher mortgage costs and new tenancy regulations have prompted many smaller landlords to leave the market.

The sector is increasingly dominated by larger professional landlords.

Holiday bookings fall amid Middle East tensions

Online travel company On the Beach has suspended its full-year profit guidance after bookings slowed sharply following the outbreak of conflict in the Middle East.

Demand has fallen for popular destinations including Turkey, Greece, Cyprus and Egypt.

Insolvency Watch

Administrations (4)

• M8 Trading Ltd
• Serotonin Digital Ltd
• Twinwin Limited
• We Are Fulfilment Ltd

Liquidations (20)

• Babtrea Limited
• Benzitec Limited
• Cannan Consultancy Services Ltd
• Flexible Storage Holdings Limited
• Flexible Storage Solutions Ltd
• Hegemon Components Limited
• Huddersfield Engineering Limited
• Kpetech Solutions Ltd
• Rebl Data Limited
• Secotech Limited
• Sister London Limited
• Southam Country Stores Limited
• S T Limited
• Suchworks Ltd
• Tondina & Son Limited
• Wired Technologies Limited

Winding-up petitions (72)

• 2 By 2 Developments Ltd
• 59 Charlotte Street Limited
• Adolphus Care Ltd
• Aerial Drone Surveys Ltd
• Anderson & Co Financial Services Limited
• Avoterg Limited
• Beaufort Construction Limited
• Belfast Repair Centre Limited
• BMA Specialist Coatings Limited
• Cadais Ltd
• Canvins Group Limited
• Care at Home (Wearside) Limited
• Chandan Mehta Ltd
• Chef Food Limited
• Classic Carpets & Flooring (Belper) Limited
• Cott’s Care Limited
• Deutsche Tech Limited
• East Anglian Fine Weld Limited
• Emperor Security Services Limited
• Ethos Matrix Ltd
• Express Data Limited
• Fairgrove Investments Limited
• Febo Enterprises Limited
• Francis Consultancy Limited
• Fusion Chef Limited
• Gold Recruitment Ltd
• GKS Logistics Limited
• Gryphon Leisure Limited
• HDM Services (London) Ltd
• Hobby Caravans and Motorhomes Great Britain and Ireland Limited
• Houseofarran Ltd
• Hugo Palmer Limited
• Ideal Warren UK Ltd
• Industrial Compressors Limited
• Jadee’s Nursing Agency Limited
• JR Education and Recruitment Solution Ltd
• L D Sound Limited
• Leading Dental Implants Limited
• Loft Crag (N.I.) Limited
• London Upper Limb Unit Limited
• Lorac Healthcare Limited
• Mardie Holdings Limited
• Media Networks Ltd
• Meliorate Institute Education and Training Ltd
• Mentivity C.I.C.
• Mist Productions Ltd
• MJS Construction Group Ltd
• Montpellier Coaching Limited
• New Bangor Ltd
• Noble Esq Ltd
• Nu You (N. Ireland) Ltd
• Oven Support England Ltd
• Pendulum Marketing Ltd
• Point Zenith Ltd
• Prime Transport & Mechanics Limited
• Radish Food Services Group Limited
• Refinedbuild Ltd
• Regent Garage (NFK) Ltd
• Sellweb Limited
• Sovo Site Ltd
• Staines Services Ltd
• Suretrax Limited
• Tannen (Marshall) Limited
• The Crowd Agency Ltd
• The Dev Lab Ltd
• The Gateway Hotel Dunstable Limited
• The London City Care and Support Services Limited
• TileswoodfloornI Ltd
• TownGate Pizza Ltd
• Trust Inventory Ltd
• V Group Services Ltd
• Watercarbonstone (UK) Ltd
• Wharf Plumbing and Heating Supplies Limited
• WSB Coatings Limited
• WSMUK Ltd
• Zebra Restaurants Limited
• Zeno Fine Art Ltd

How CPA membership could help

Late payments and insolvencies often rise during periods of economic uncertainty. With energy prices rising and growth slowing, businesses trading on credit face greater financial risk.

CPA members gain access to CreditCare reports, monitoring tools and professional debt recovery services that help protect cashflow and identify risk before it becomes a problem.

Find out how CPA can help 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.