UK Business News Today: 14 July 2026 | Economy, Markets & Insolvencies

UK businesses are balancing short-term signs of stronger consumer spending against deeper concerns over costs, tax reform, insolvency risk and political uncertainty. England’s World Cup run and the summer heatwave are supporting pubs, retailers and hospitality businesses, but higher energy prices, rising oil costs and weak underlying growth continue to squeeze margins. Proposed monthly tax payments for the self-employed, renewed debate over business rates and further financial-sector failures all reinforce the need for businesses that sell on credit to monitor customer risk closely and protect cashflow.

James Salmon, Operations Director.

Key Developments

• HMRC is considering monthly tax payments for self-employed workers and landlords from April 2030, raising concerns about cashflow during quieter trading periods.
• UK industrial electricity prices remain 45% above the G7 median, with four in 10 businesses reportedly cutting investment because of energy costs.
• The collapse of Market Financial Solutions has contributed to a 63% rise in financial-services administrations.
• England’s World Cup run and June’s heatwave helped card spending rise at its fastest pace in 11 months.
• Renewed disruption around the Strait of Hormuz has pushed Brent crude above $85 a barrel and revived expectations of higher interest rates.

SME & Business Environment

Mid-market growth struggles to stay ahead of inflation

The Price Bailey Mid-Market Index 2026 found average revenue growth of 12% among 12,625 UK businesses, but median growth was only 6%. With inflation reported at 5.3%, the typical mid-sized company is achieving little real-terms expansion. Many businesses are also struggling to convert higher sales into stronger profits, suggesting that rising turnover is being absorbed by wages, energy, materials and financing costs.

Why it matters: Customers may appear to be growing while their margins and available cash remain under pressure, increasing the importance of checking payment performance rather than relying on turnover alone.

PageGroup sees pockets of optimism in a difficult jobs market

PageGroup reported a 5.3% fall in UK gross profit during the second quarter, an improvement on the 11.4% decline recorded in the previous quarter. The recruiter described the market as tough but stable and said some pockets of optimism were emerging. It expects annual earnings of about £28m, compared with £20.9m in 2025, although management continues to warn of considerable uncertainty.

Volkswagen considers up to 100,000 job cuts

Volkswagen Group is assessing job reductions of up to 100,000 worldwide, twice the number previously indicated. Chief executive Oliver Blume told staff that the group’s costs were around 20% higher than those of its competitors and said the business needed to become simpler, more efficient and more robust.

Profits have fallen from €22.6bn in 2023 to €8.9bn last year, while first-half sales in China dropped 26% and US sales fell by more than 7%. Four German plants remain under threat, although some analysts believe the scale of the proposed cuts may partly be intended to strengthen Volkswagen’s negotiating position.

Tax & Government

HMRC considers monthly tax payments for the self-employed

HMRC is examining a system under which self-employed workers and landlords would make monthly tax payments based on the previous year’s tax return. The proposed regime could begin in April 2030 and would forecast an individual’s liability for the year ahead.

Critics warn that monthly payments based on historic earnings may not reflect the uneven and unpredictable nature of self-employed income. A contractor, landlord or seasonal business could therefore face significant tax deductions during a low-income month.

Why it matters: Monthly tax liabilities could reduce the cash available to pay suppliers and employees, particularly for businesses with seasonal or irregular income.

HMRC expands its tax evasion crackdown

HMRC is increasing its use of artificial intelligence, data analytics and its Connect system to detect potential tax evasion. Around 540,000 investigations were initiated through Connect in the last financial year, while HMRC says it secured or protected approximately £10bn.

The authority is also expanding its informant network through a revised rewards scheme for whistleblowers. Advisers say HMRC’s algorithms can identify inconsistencies and anomalies that might previously have gone unnoticed.

Businesses should ensure that tax returns, payroll records, director transactions and accounting data are complete and internally consistent.

Calls grow for major changes to inheritance and personal taxation

Dave Fishwick, founder of Burnley Savings and Loans, has argued that wealthy individuals and large corporations should make a greater contribution through inheritance tax. He said Middle England should not be disproportionately targeted when some very wealthy people and businesses pay comparatively little.

Former Chancellor Sir Sajid Javid has taken the opposite position, supporting a Policy Exchange proposal to abolish inheritance tax, National Insurance and the 45% additional income-tax rate. The competing proposals underline how unsettled the wider tax debate remains as political leadership changes.

TUC renews call for a bank windfall tax

The Trades Union Congress is continuing to press for a 35% tax on bank profits. It argues that the measure could raise £60bn over four years and points to £25bn in bonuses paid to 1.1 million finance workers in the year to March.

Supporters say the tax could help fund public spending during a period of pressure on household finances. Critics are likely to argue that additional taxation could affect lending, investment and the UK’s competitiveness as a financial centre.

Online sales tax proposed to fund business rates reform

The Real Rates Reform Alliance has proposed a 2% tax on online sales to finance a 37% reduction in business rates for companies operating from physical premises. The coalition includes UKHospitality and the Institute of Directors and represents more than 28,000 firms.

It says the current system is unsustainable, with 55% of businesses identifying business rates as a significant cost. The proposal would shift part of the burden away from shops, pubs, restaurants and other premises-based companies towards online commerce.

Andy Burnham confirmed as Labour leader

Andy Burnham has been confirmed as the new leader of the Labour Party after securing the backing of 349 of its 403 MPs. He is due to become party leader on Friday and is expected to be appointed prime minister next week after Sir Keir Starmer formally resigns.

Burnham is expected to emphasise economic growth, devolution, the cost of living and stronger communication between government and MPs. His policy platform remains only partly defined, particularly in relation to tax, fiscal rules, public ownership and business rates.

Burnham signals a broad-church cabinet

Burnham is expected to tell Labour MPs that his senior appointments will reflect experience, commitment and a broad range of ideas. Ed Miliband, Wes Streeting, Louise Haigh and Lucy Powell are among those being discussed for significant roles.

Markets reportedly view Miliband as a less reassuring choice for Chancellor, while Streeting is considered more centrist. Investors have expressed concern that a Burnham government could lead to higher gilt yields and a weaker pound, although some support his proposals on growth and regional devolution.

Bank of England faces internal divisions

Critics within the Bank of England, including some Monetary Policy Committee members, are concerned that a stronger emphasis on individual policy views could weaken the institution’s collective message. A lack of clarity over the Bank’s direction may make it harder for businesses and financial markets to interpret future interest-rate decisions.

For SMEs, uncertainty over borrowing costs can delay investment and complicate cashflow forecasting.

Energy & Costs

Business groups call for green levies to be moved off electricity bills

The Confederation of British Industry and Energy UK say industrial electricity prices are 45% above the G7 median. They are urging the next government to move the cost of legacy renewable subsidy schemes from electricity bills into general taxation.

The groups estimate that shifting the Renewables Obligation and Feed-in Tariff costs could reduce some business electricity bills by as much as 20%. Four in 10 companies surveyed said high power prices had already forced them to reduce capital spending.

Make UK is also calling for the British Industrial Competitiveness Scheme to be brought forward and expanded from 10,000 eligible firms to around 130,000.

Why it matters: Money used to cover electricity bills cannot be invested in machinery, recruitment, stock or growth, and energy-intensive customers may take longer to pay suppliers.

Miliband considers approving North Sea drilling

Energy Secretary Ed Miliband is reportedly considering granting consent for drilling at the Jackdaw gas field. The move is seen as an attempt to demonstrate a more pragmatic approach to economic growth and reassure markets amid speculation that he could become Chancellor.

Separately, energy producers, trade unions and industry bodies have urged Labour MPs to support continued North Sea oil and gas production. They argue that domestic production remains important for manufacturing, energy security and the transition to a lower-carbon economy.

Insolvency & Credit Risk

MFS collapse drives rise in financial-services insolvencies

Kroll says 49 finance firms entered administration during the first half of 2026, a 63% increase on the previous year. Nearly half of the failures were linked to the collapse of Market Financial Solutions.

MFS entered administration amid allegations that £1.3bn had been misappropriated. Many of the affected businesses were intermediaries whose operations or funding depended on the group.

Why it matters: A major failure can quickly spread through connected lenders, brokers, advisers and suppliers, highlighting the need to monitor both customers and the businesses they depend on.

Retail & Consumer

Heatwave and World Cup lift consumer spending

Barclays reported that card spending rose 1.9% year on year in June, the fastest increase in 11 months. Pubs benefited from England matches, while households purchased fans, cold drinks, clothing and electronics during the unusually hot weather.

The British Retail Consortium also reported a second consecutive monthly rise in retail sales. However, overall confidence remains fragile, with high interest rates, rising energy bills and growing arrears on credit cards and other unsecured borrowing continuing to strain household finances.

Why it matters: Stronger sales can support customer cashflow in consumer-facing sectors, but businesses should be careful not to confuse a temporary football or weather boost with a lasting improvement in financial strength.

World Cup semi-finals create a short-term business boost

England face Argentina in the World Cup semi-final tomorrow, Wednesday 15 July, after overcoming Norway in the quarter-final. Anticipation is building across the country, with pubs, restaurants, supermarkets, takeaway businesses, retailers and transport operators likely to experience increased demand.

Businesses may need additional stock, longer opening hours and extra staff, while employers in other sectors could face reduced productivity, late arrivals or increased holiday requests around the match. Suppliers serving hospitality and retail customers should also be prepared for urgent orders and temporary changes in payment or delivery patterns.

France face Spain in tonight’s first semi-final, which should provide a further trading opportunity for venues showing the match and businesses serving football audiences.

Why it matters: Major sporting events can deliver valuable sales, but the resulting spike in stock purchases and staffing costs still needs to be converted into prompt customer payments.

Industry, Technology & Investment

UK urged to accelerate financial-market digitisation

A study led by the Treasury’s wholesale digital markets champion, Chris Woolard, estimates that faster financial-market digitisation could add £33bn to UK economic output and generate £14bn in additional tax revenue.

A paper supported by 54 financial institutions, including Barclays, JP Morgan and Lloyds Banking Group, sets out a 12-month plan across nine priority areas. Supporters say greater adoption of tokenisation and other digital infrastructure could strengthen the UK’s position in global financial services.

Samsung considers US depositary receipt offering

Samsung Electronics has held preliminary discussions with banks about a possible offering of American depositary receipts. No final decision has been made, and the company is expected to monitor volatility in memory-chip shares before proceeding.

The discussions follow major swings in the valuations of semiconductor manufacturers and increased investor scrutiny of artificial intelligence-related spending.

TSMC reports strong sales amid chip sell-off

TSMC reported June sales of NT$443bn, equivalent to approximately $13.8bn, up 68% year on year. Despite the strong figures, its share price fell as part of a wider global retreat in semiconductor stocks.

SK Hynix suffered a record fall of more than 15% on Monday and declined by over 8% today before recovering part of the loss. The contrast between strong revenue growth and falling valuations suggests investors are becoming more cautious about the price paid for expected AI growth.

US states challenge Paramount–Warner Bros Discovery merger

Twelve Democrat-led US states have launched an antitrust lawsuit seeking to block the proposed $110bn merger between Paramount and Warner Bros Discovery. The states argue that the transaction could harm cinemas, cable distributors and consumers.

The legal challenge could prevent the deal closing by its 30 September deadline. Paramount may be required to pay Warner Bros Discovery shareholders an additional fee for each quarter in which completion is delayed.

International & Trade

UK–Switzerland trade deal eases work and travel rules

The UK and Switzerland have announced a trade agreement allowing professionals to work visa-free for up to 90 days each year. British travellers will also be able to use automated passport gates and avoid roaming charges in Switzerland.

Business and Trade Secretary Peter Kyle said the agreement could unlock an additional £5.2bn a year in UK services exports. The deal also includes measures covering professional services and intellectual-property protection.

China records strongest export rise since 2021

China’s exports increased by 27% year on year in June to $412bn, almost ten percentage points above economists’ forecasts. Imports rose by 36% to $287bn, also significantly exceeding expectations.

The strong trade data will support China’s headline growth figures, but weak consumer sentiment and domestic economic problems remain unresolved. Export strength does not necessarily mean Chinese customers or suppliers are free from financial pressure in their home market.

European countries agree shared missile-defence capability

Ukraine and nine European countries, including Britain, France and Germany, have agreed to develop a shared ballistic-missile defence capability. The countries intend to draw on Ukraine’s experience of defending against Russian attacks.

French President Emmanuel Macron also warned against fragmentation within Europe’s defence industry. A more coordinated defence strategy could generate long-term opportunities for engineering, technology and manufacturing suppliers.

US judge overturns Trump tax agreement

A federal judge ruled that President Donald Trump’s lawsuit against his own administration had been brought for an improper purpose. The case followed the leaking of his tax returns and resulted in a settlement that would have created a $1.8bn fund for alleged victims of government “lawfare”.

The agreement has now been voided, while Trump’s lawyer has been referred to the Florida Bar over possible ethical breaches. The judge concluded that the case was not a genuine legal dispute and had been used to secure improper protections.

Global Market Summary

Global markets were dominated by the renewed escalation between the United States and Iran, the resulting surge in oil prices and growing expectations that central banks may need to raise interest rates again.

UK and European Markets

The FTSE 100 proved more resilient than continental European indices because of its large weighting in energy and commodity companies. BP and Shell benefited as oil prices rose sharply, partially insulating the index from falls in technology and rate-sensitive shares.

The STOXX Europe 600 stood at 636.48, while the Euro STOXX 50 was at 6,226.25. The DAX was recorded at 24,963.93 and the CAC 40 at 8,294.64. European shares were pressured by concerns that higher oil and gas prices would lift inflation, reduce consumer spending and force central banks to maintain tighter monetary policy.

Ericsson fell by as much as 10% after warning about second-half pressure on margins in its Networks division. European companies are nevertheless entering the second-quarter earnings season with expectations of the strongest aggregate profit growth in three years.

US Markets

US shares fell on Monday following the reintroduction of restrictions on Iranian shipping through the Strait of Hormuz and the announcement of a 20% charge on other cargo.

• S&P 500: approximately 5,584, down around 0.9%.
• Dow Jones: 52,498.64, down around 0.3%.
• Nasdaq Composite: 25,873, down 1.6%.
• Nasdaq 100: 29,264.10.

Technology and semiconductor stocks led the decline. US stocks later steadied as investors waited for June inflation data, major bank earnings and testimony from Federal Reserve Chair Kevin Warsh.

Swap markets indicated a meaningful possibility of a July rate increase, particularly if inflation data proved stronger than expected.

Asian Markets

Asian markets initially extended the global technology sell-off before recovering.

• Nikkei 225: 67,743.50.
• Hang Seng: 24,340.73, up 0.5%.
• Shanghai Composite: 3,967.13, up 1.4%.
• Kospi: 6,856.83, up 0.7%.
• ASX 200: 8,808.49.

Chinese shares were supported by a new five-year consumption plan, while Samsung Electronics and SK Hynix helped South Korean stocks recover. However, foreign investors sold a record net $32.37bn of South Korean equities in June, reflecting concern about the scale and returns of AI investment.

Market Drivers

The primary driver was the renewed US blockade of Iranian shipping and a proposed 20% charge on other cargo passing through the Strait of Hormuz. Two UAE oil tankers were reportedly struck by Iranian missiles, increasing concern about physical disruption to energy supplies.

The escalation pushed government bond yields in the US, UK and eurozone to eight-week highs. Markets moved to fully price a quarter-point Bank of England rate increase by September, with another rise expected before the end of the year. Similar expectations developed for the European Central Bank.

Currencies

Sterling was broadly range-bound against the US dollar. Expectations of higher UK interest rates offered some support to the pound, but the dollar continued to benefit from safe-haven demand and expectations of tighter Federal Reserve policy.

GBP/USD therefore lacked a clear direction, while the euro remained under pressure against the dollar. The Japanese yen stayed close to multi-decade lows as the gap between Japanese and US interest rates remained wide.

Oil-sensitive currencies were generally weaker because of the effect of higher crude prices on trade balances and inflation.

Commodities

• Brent crude: above $86 a barrel, up roughly 13% over two sessions.
• WTI crude: around $80.65 a barrel.
• Gold: approximately $4,020 an ounce after falling 2.9% on Monday.

Oil prices were driven by the Hormuz blockade, attacks on commercial shipping and fears of supply disruption. DP World is reportedly planning an oil-export facility on the UAE’s east coast that could allow some shipments to bypass the strait.

European natural gas reached a three-month high, while Asian LNG prices rose sharply. European gas storage was reported at 52% full, compared with a five-year seasonal average of 68%.

Gold fell despite geopolitical tension because investors judged the increased likelihood of higher interest rates to be a stronger influence than demand for safe-haven assets.

Why markets matter to SMEs: Higher oil, gas and borrowing costs can quickly feed through into transport, packaging, materials and finance costs, while customers facing the same pressures may delay payments or reduce orders.

Insolvency Watch

Winding-up Petitions (8)

• DGI FOODS LIMITED
• HARLINGTON LAW LTD
• KEY COIN ASSETS LTD
• MEHAK GRILL HOUSE LTD
• MLB HOSPITALITY LTD
• SBR FOXHILLS LIMITED
• WMEP LTD
• ZORVEX LIMITED

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Protecting cashflow when costs and uncertainty are rising

Today’s news shows how quickly pressure can move through the economy. Higher energy prices affect manufacturers and transport businesses. Tax changes can reduce the cash held by the self-employed. A major financial failure can affect dozens of connected firms, while even businesses reporting higher sales may be achieving little real growth after inflation.

Businesses that sell on credit should monitor customers continuously rather than relying only on the information available when an account was first opened. CreditCare reports and debtor monitoring can help identify changes in company status, financial strength and payment risk before an overdue balance becomes a serious loss.

CPA can also support businesses with credit control and overdue account recovery. Our approach is professional, ethical and designed to improve payment performance while preserving valuable customer relationships.

Call CPA on 020 8846 0000 during business hours, Monday to Friday, 9am to 5pm.
Email PaidQuick@cpa.co.uk
Visit https://cpa.co.uk/contact-us/

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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