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

UK businesses are facing a more volatile economic backdrop as rising borrowing costs, inflation concerns and geopolitical tensions continue to unsettle markets. Investors reacted sharply to hotter-than-expected US inflation data, while UK gilt yields climbed amid uncertainty surrounding the Government and fears of looser fiscal policy. Businesses are also navigating growing operational pressures from cyber threats, supply chain inefficiencies and weak consumer purchasing power.

At the same time, artificial intelligence investment continues at extraordinary pace, with Anthropic reportedly seeking a funding round valuing the company at more than $900bn. Energy markets remain under pressure from Middle East tensions, while Europe’s renewable energy infrastructure is struggling to cope with record solar output. Insolvency activity also remains elevated across a broad range of sectors.

James Salmon, Operations Director.

Key Developments

• UK borrowing costs rise sharply amid political and inflation concerns
• Global markets volatile after stronger US inflation data
• Europe wasting record amounts of solar energy due to grid constraints
• AI investment boom continues as Anthropic seeks huge funding round
• Insolvency notices continue across logistics, retail, engineering and property sectors

SME & Business Environment

Government borrowing costs surge amid uncertainty

Government borrowing costs rose sharply as investors reacted to political uncertainty and inflation concerns linked to Middle East tensions. The effective interest rate on 10-year borrowing climbed to 5.13%, near levels last seen during the financial crisis. Analysts warned that speculation over leadership changes and possible fiscal loosening is unsettling bond markets.

Why it matters: Higher government borrowing costs can feed through into business lending, overdrafts and commercial finance costs for SMEs.

ICAEW calls for major tax simplification

ICAEW chief executive Alan Vallance warned that the UK tax system has become one of the world’s most complex, creating uncertainty and increasing costs for businesses. He argued that simplifying VAT and broader tax rules could improve competitiveness, reduce disputes and encourage investment.

Inflation continues to erode savings

Moneyfacts warned that inflation has significantly reduced the real value of savings since 2020, with some savers losing up to 19p in every pound in purchasing power. Even competitive savings accounts have failed to fully keep pace with inflation.

Retailers struggling with supply chain decisions

A survey by Kallikor found that outdated decision-making systems are hurting retail supply chains, with fewer than 20% of strategic decisions meeting targets. Many supply chain leaders cited poor visibility and operational complexity as key challenges.

Economy & Policy

Markets rattled by inflation shock and political turmoil

UK and European markets fell after stronger-than-expected US inflation data increased fears of further interest rate rises. Investors were also unsettled by growing political pressure on Prime Minister Keir Starmer and rising Middle East tensions pushing oil prices higher.

The FTSE 100 initially fell around 1% before recovering to close only slightly lower, while the FTSE 250 suffered steeper losses. Gilt yields rose sharply as markets priced in additional Bank of England rate increases.

Why it matters: Rising rates and weaker market confidence increase borrowing costs and pressure cashflow for businesses operating on credit.

Three-quarters of millionaires support higher taxes

Research from Patriotic Millionaires UK found that 75% of surveyed UK millionaires would support paying higher taxes to fund public services. Many also supported higher taxes on wealth and assets to reduce pressure on ordinary taxpayers.

Industry & Investment

Anthropic seeks massive AI funding round

Anthropic is reportedly in talks to raise at least $30bn in fresh funding at a valuation exceeding $900bn. The company is seeking additional capital to fund the computing infrastructure needed to support booming demand for AI products.

Generative AI increasingly influencing financial reporting

A study from the University of Washington and Stanford University found growing use of generative AI in corporate financial reporting. Researchers said AI could improve efficiency but warned regulators and auditors would need to strengthen oversight.

Europe wasting record amounts of solar power

Europe is expected to waste around 40 terawatt-hours of electricity in coming months as power grids struggle to cope with surging solar output. Negative electricity prices are also damaging returns for

Intertek leaning toward EQT takeover bid

Intertek is reportedly leaning toward recommending EQT’s £9.2bn takeover proposal. The offer highlights continuing private equity interest in UK-listed firms.

eBay rejects GameStop takeover proposal

eBay rejected GameStop’s unsolicited $56bn takeover proposal, calling the offer “neither credible nor attractive.” The attempted deal drew attention due to the significant size difference between the companies.

Babcock reports revenue growth despite one-off hit

Babcock International reported revenue growth of more than 9%, driven by its nuclear and aviation divisions. However, profits were impacted by a £140m one-off charge linked to its Type 31 frigate contract.

Employment & Labour

Cyber security pushed higher up business agendas

The Government urged firms to strengthen cyber defences amid rising AI-driven cyber threats. Ministers said cyber security should become a board-level priority, while new legislation is progressing to improve resilience across critical sectors.

Why it matters: Cyber attacks can disrupt operations, delay payments and create significant financial and reputational damage for SMEs.

Retail & Consumer

Greggs delivers resilient sales growth

Greggs reported like-for-like sales growth of 2.5%, improving to 3.3% in recent weeks. Total sales rose to £800m, although the company warned that prolonged Middle East tensions could increase cost inflation.

On The Beach shares slump after weak guidance

On The Beach shares fell sharply after the company reinstated full-year guidance well below market expectations. The travel firm forecast profits significantly below analyst forecasts.

Vodafone shares fall despite stronger results

Vodafone reported higher revenue and improving operating performance, helped by growth in Africa and the Three UK consolidation. Despite this, shares fell amid wider market weakness.

Global Market Summary

Global markets experienced a volatile session after hotter-than-expected US inflation data increased fears of further interest rate rises. Technology shares led declines on Wall Street, while European markets weakened amid political uncertainty, rising oil prices and bond market volatility.

However, Asian markets stabilised overnight and European indices opened firmer on Wednesday morning as mining stocks rallied on record copper prices.

Equities

• FTSE 100: 10,265.32 (-0.04%)
• STOXX Europe 600: 606.63 (-1.0%)
• DAX: 23,954.93 (-1.6%)
• CAC 40: 7,979.92 (-0.9%)
• S&P 500: 7,400.96 (-0.2%)
• Dow Jones: 49,760.56 (+0.1%)
• Nasdaq Composite: 26,088.2 (-0.7%)
• Nikkei 225: 63,272.11 (+0.8%)
• Hang Seng: 26,349.72 (+0.01%)

Currencies

• GBP/USD: 1.3521
• GBP/EUR: 1.1549
• GBP/JPY: 213.41

The dollar strengthened after inflation data increased expectations of further Federal Reserve tightening.

Commodities

• Brent Crude: $106.68
• WTI Crude: $101.09
• Gold: $4,709.50
• Copper: Record highs

Oil prices surged on Middle East tensions before easing overnight. Copper prices hit record levels as AI infrastructure demand and supply concerns boosted industrial metals.

Insolvency Watch

Administrations (6)

• CRG MEDICAL SERVICES LTD
• DENBY USA LIMITED
• GA&A DESIGN LIMITED
• HCRG MEDICAL SERVICES LIMITED
• HOLMESTERNE FARM CO. LIMITED
• INSTANT DESPATCH SERVICES LIMITED

Liquidations (15)

• CHEMIFLOC (UK) LIMITED
• COWLING BUSINESS PARK LTD.
• CS IT CONSULTING LTD
• DALEHOUSE FARM LIMITED
• ELSTREE FUNDING NO.3 PLC
• FIRST MOVE EUROPE LIMITED
• HARVEY SCOTT CHESHIRE LIMITED
• LANGRIDGE CONSULTING SERVICES LIMITED
• LIDDLE LABS LIMITED
• MICHAEL BATT HOLDINGS LIMITED
• MJ CROFTS LIMITED
• PISA RESEARCH LIMITED
• POLLENUP LIMITED
• REN LTD
• ROSEMILE PROPERTIES LIMITED
• VERNON ENTERPRISES UK LIMITED
• WORDS OF SKILL LIMITED

Winding-up Petitions (9)

• AEQUITAS LEGAL (RECOVERY) LIMITED
• ALL ELECTRICAL & TESTING LTD
• CANDY EXPRESS LTD
• CT08761185 LIMITED
• ECS EDINBURGH LTD
• NORTHANTS CHASSIS LIMITED
• RSK HGV SALES LTD
• TORUS ENGINEERING LTD
• VMGS INSTALLATIONS LTD
• WILSONSBUILDINGPROJECTS LTD

What CPA can do for you

Economic uncertainty, rising borrowing costs and growing insolvency activity all increase the importance of strong credit management. Businesses that act early to monitor customer risk and recover overdue accounts are often best placed to protect cashflow during volatile trading conditions.

CPA helps businesses improve payment performance through CreditCare reporting, debtor monitoring and ethical overdue account recovery services designed to preserve customer relationships while protecting revenue.

Contact us to find out how CPA can help support your business cashflow.

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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