UK Business News Today: 15 September 2026 | Economy, Markets & Insolvencies

UK businesses face an increasingly uncomfortable combination of weakening employment and renewed inflation pressure. Employers are cutting payrolls, vacancies have fallen to a five-year low and investment remains subdued, yet disruption to Middle Eastern energy supplies is pushing oil prices above $100 a barrel and increasing the risk of higher household bills, business costs and interest rates. For SMEs selling on credit, that combination matters: customers may face weaker demand and higher overheads at exactly the point when financing remains expensive, increasing the importance of monitoring customer risk, controlling credit exposure and acting promptly when invoices become overdue.

James Salmon, Operations Director.

Key Developments

• UK payrolls fell by 26,000 in August, the fastest pace of job shedding in nine months, while vacancies dropped to 702,000.
• Oil prices have climbed above $100 a barrel following disruption to Saudi Arabia’s East-West pipeline, adding to inflation and energy-cost concerns.
• Goldman Sachs expects the Bank of England to raise Bank Rate from 3.75% to 4% in November, although no change is expected this Thursday.
• Only 17% of firms increased investment in Q2, according to the British Chambers of Commerce, as taxation, regulation and labour costs weigh on confidence.
• Mortgage and household energy costs are rising, increasing pressure on disposable incomes and potentially weakening payment performance across consumer-facing sectors.

Economy & Policy

UK employers cut jobs at fastest rate in nine months

The number of employees on company payrolls fell by 26,000 in August, following a revised 19,000 decline in July and considerably worse than economists had expected. Vacancies fell by another 8,000 to 702,000, their lowest level in five years, while unemployment remained at 4.9% in the three months to July.

The redundancy rate rose to 3.9 per 1,000 employees, while youth unemployment climbed to 16.4%, its highest level since 2014. Retail, hospitality, manufacturing, IT and construction have all experienced pressure, although education and administrative services recorded payroll growth.

Average total earnings growth slowed to 3.9%, while regular pay growth held at 3.5% and private-sector wage growth remained considerably weaker at 2.9%.

Business investment remains weak as costs and regulation mount

The British Chambers of Commerce says just 17% of firms increased investment during Q2 2026, the weakest reading since the pandemic.

Labour costs, taxation and regulation remain major concerns. Some 82% of firms surveyed expect the increase in employer National Insurance introduced in 2024 to have a negative effect, while the BCC’s Cost Stack Calculator suggests annual business costs have risen 71.5% over the past decade.

The organisation argues that unless policymakers exercise greater discipline around new costs and regulation, business sentiment and investment are likely to remain subdued.

Bank of England expected to change gilt-sales strategy

The Bank of England is reportedly preparing to stop actively selling long-dated government bonds as rising borrowing costs increase the financial impact of quantitative tightening.

Active gilt sales would continue but could exclude longer-term debt, while some bond disposals may instead be channelled through the Treasury’s Debt Management Office.

An announcement could accompany Thursday’s interest-rate decision.

Goldman Sachs expects Bank Rate to reach 4%

Goldman Sachs expects the Bank of England to keep Bank Rate unchanged at 3.75% on Thursday, but now forecasts a rise to 4% in November.

The bank has increased its forecast for inflation in early 2027 to 3.9% from 3.3%, largely reflecting stronger price pressures.

The outlook highlights the difficult position facing the Bank: employment is weakening, but energy prices threaten to push inflation higher again.

Tax & Government

Chancellor urged to reverse inheritance-tax changes for family businesses

Chancellor John Healey is facing calls from family-business organisations to reverse reforms to Business Property Relief introduced under his predecessor.

An open letter representing more than 200,000 businesses argues that limiting full relief to £1m and reducing relief above that level could discourage investment, complicate succession planning and encourage business owners to relocate or sell assets.

The campaign has support from organisations representing hospitality, independent retailers, construction and rural businesses.

Jigsaw owner warns against further tax rises

Jigsaw owner David Ross has urged the Government to stop increasing the tax burden on businesses and middle-income consumers.

He argued that frozen personal tax thresholds and rising household costs are eroding customers’ disposable income and called for planned increases in business rates to be reconsidered.

Retailers remain particularly sensitive to the combination of employment costs, business rates and weaker discretionary spending.

Employment & Labour

Pension contributions rank below flexibility for many workers

Research from Which? found that only 31% of working adults regard employer pension contributions as a leading consideration when evaluating a job offer.

Paid sick leave and flexible working ranked more highly, although 55% still consider pension contributions to some extent.

Age makes a significant difference: 49% of workers aged 55–64 place high importance on pensions compared with only 11% of Gen Z workers.

For employers competing for staff, the findings suggest benefits packages may increasingly need to balance long-term financial provision with flexibility and immediate quality-of-life benefits.

HMRC urges workers to check State Pension forecasts

HMRC says 12.5% of UK adults have never checked their State Pension forecast, with people aged 45–54 among those least likely to do so.

The campaign coincides with Pension Awareness Week and highlights the ability to check forecasts and potential voluntary contributions through HMRC’s app.

Energy & Costs

Oil surges after Saudi pipeline disruption

Oil prices have risen sharply after Saudi Arabia shut its East-West crude pipeline following attacks, removing an important route that can bypass the Strait of Hormuz.

Diplomatic discussions over establishing a temporary shipping route through Hormuz have also been postponed, while Oman has called for alternative LNG routes through the Gulf.

The disruption has intensified concerns about global energy availability and inflation.

Burnham considers UK support for Saudi Arabia

Prime Minister Andy Burnham is considering requests from Saudi Arabia for British diplomatic and military assistance against Houthi attacks.

The requests reportedly include support defending Saudi territory and oil infrastructure as well as assistance countering advances along Yemen’s Red Sea coast.

The Government is reluctant to become directly involved in another Middle Eastern conflict, but ministers are increasingly concerned about the economic consequences of continued disruption ahead of the Budget on 28 October.

Household energy bills could rise around 25% in January

The household energy price cap is forecast to increase by around £427 to approximately £2,150 a year for an average household in January if current wholesale-market conditions persist.

The Government is considering additional assistance, potentially including wider eligibility for the £150 Warm Home Discount.

Higher energy bills would reduce disposable income just as mortgage and rental costs remain elevated.

UK could produce more of its own oil and gas, industry says

Offshore Energies UK argues that changes to the windfall tax and approval of projects including Rosebank and Jackdaw could unlock 111 projects and approximately £50bn of investment.

The organisation says increased North Sea development could allow the UK to meet around half its oil and gas needs domestically.

Environmental campaign group Uplift disputes the conclusions, arguing that declining North Sea reserves limit the potential contribution.

Property & Consumer

Mortgage rates climb ahead of Bank decision

Average UK mortgage rates have risen to their highest level in almost five months.

The average two-year fixed mortgage now stands at 5.67%, while the average five-year fix is 5.72%.

Markets are increasingly considering the possibility of further Bank of England tightening if energy-driven inflation proves persistent.

Rent growth accelerates

UK annual rent growth reached 2.6% in July, up from 1.6% in February, according to Zoopla.

The average rent has reached around £1,340 a month, with higher mortgage rates keeping more would-be first-time buyers in rented accommodation for longer.

Restricted housing supply is adding further upward pressure.

SME & Business Environment

Cash handling costs small firms 178 hours a year

A study of 500 small business owners, sole traders and side hustlers found that cash-related administration consumes more than 178 hours annually.

Businesses spend almost three-and-a-half hours each week counting cash, travelling to make deposits and completing related administration.

Despite that burden, 71% of respondents said cash remains essential to their business.

Cyberattacks cost small UK businesses around £27,000

Almost 40% of UK small businesses experienced a successful cyberattack during the past year, according to Hiscox.

The average financial impact was reported at around £27,000, compared with a global attack rate of 29% among small firms.

Cyber resilience therefore remains both an operational and cashflow issue for smaller companies.

UK fintech confidence remains high – but competition is increasing

Some 94% of fintech leaders still regard the UK as a good place to start and grow a business.

However, industry figures warn that Singapore, Dubai and other financial centres are competing aggressively for founders, investment and talent.

Calls for reform include more competitive regulation, improved access to growth capital and faster policy responses to AI and digital assets.

International & Trade

AI safety argument rattles global technology markets

Debate over the pace of artificial-intelligence development has intensified after leaders including Anthropic’s Dario Amodei, OpenAI’s Sam Altman, Elon Musk and Google DeepMind’s Demis Hassabis called for stronger safeguards or slower development.

President Donald Trump has rejected concerns that advanced AI could pose existential risks, while lawmakers from both US parties are pursuing legislation requiring leading developers to mitigate potentially catastrophic risks.

The political divide has produced unusual alliances. Senator Bernie Sanders and former Trump strategist Steve Bannon are both supporting calls for stronger AI safeguards through a “Pro-Human Assembly” in Washington.

China has meanwhile criticised what it describes as AI “fearmongering”.

Technology shares have come under pressure globally as investors reassess the speed, cost and regulatory risks associated with the AI investment boom.

US EPA proposes removing power-plant emissions rules

America’s Environmental Protection Agency has proposed repealing regulations requiring coal- and gas-fired power stations to reduce greenhouse-gas emissions.

The EPA estimates repeal could save $310bn and is seeking measures designed to make it more difficult for future administrations to restore similar requirements.

The move represents a significant shift in US energy and environmental policy.

Global Market Summary

Financial markets are being driven primarily by three issues: the Middle East energy shock, rising bond yields and the escalating debate over AI investment and safety.

The supplied market briefing shows Brent crude approaching $107 a barrel, almost 20% higher during September, while the US 10-year Treasury yield has crossed 5%, its highest level since 2007.

• FTSE 100: 10,697.57, +0.44%
• STOXX Europe 600: 635.98 at its latest complete reading; the previous session was -0.49%, while European equities were down as much as 1% during Tuesday trading.
• Euro STOXX 50: 6,275.25, -0.79%
• DAX: 25,440.81, -0.50%
• CAC 40: 8,117.78, -0.76%
• S&P 500: 7,619.98, -0.48% at Monday’s close
• Dow Jones: 52,421.20, -0.29%
• Nasdaq Composite: 26,186.41, around -0.6%
• Nikkei 225: around 63,873, +0.6%
• Hang Seng: around 24,934, broadly flat to slightly higher

US futures remained weaker ahead of Tuesday’s session, with S&P 500 futures around 0.5% lower and Dow and Nasdaq futures also pointing down.

Market drivers

Oil remains the dominant macroeconomic concern. Saudi pipeline disruption has reduced flexibility in global crude supply while shipping through Hormuz remains vulnerable. Rising oil prices raise the prospect of another inflation impulse at a time when central banks had hoped price pressures were becoming more manageable.

Bond markets have reacted accordingly. The US 10-year Treasury yield has moved above 5%, and European borrowing costs remain elevated. Investors are preparing for the Federal Reserve decision on Wednesday and the Bank of England decision on Thursday.

Technology stocks are also under pressure as the debate about AI safety raises questions about the pace of investment and future regulation.

Currencies

Sterling weakened following the UK jobs figures, with GBP/USD around $1.348, down roughly 0.1%–0.2% during the session. GBP/EUR was around €1.169, comparatively steadier.

For UK SMEs, a weaker pound can increase the sterling cost of imported goods, components, fuel and raw materials.

Commodities

Brent crude traded around $107 a barrel, with Tuesday gains around 1%–2% depending on the trading point, while WTI crude remained above $102–$103. Gold traded around $4,300–$4,330 an ounce, with higher expected interest rates limiting demand for the non-yielding asset.

For business owners, oil is the most important figure to watch. Sustained prices above $100 can rapidly feed into transport, electricity, manufacturing, packaging and supplier costs.

Insolvency Watch

Administrations (9)

• MSLNA HEALTHCARE LIMITED
• OMC GLOBAL LIMITED
• PAPYRUS PREVENTION OF YOUNG SUICIDE
• SCOTPHARM (MNA) LIMITED
• SWIMBY CARROLL ANDERSON LTD
• THAI EXPRESS FRANCHISING LIMITED
• THAI EXPRESS LAKESIDE LIMITED
• THAI EXPRESS UK LIMITED
• TX EH1 LTD

Liquidations (16)

• C C A CONSULTANTS LIMITED
• CAESARIS DENARII LIMITED
• CAVERN FUNDING 2020 PLC
• DEVONSHIRE FINANCIAL SERVICES LIMITED
• FAINTREE INVESTMENTS LTD
• FANGLED TECH LTD
• GE UK GROUP
• HOLROW LIMITED
• INTELLIGENT HUMAN CAPITAL MANAGEMENT LIMITED
• LONDON CARDS NO.1 PLC
• PJ BASHFORD LIMITED
• QUORSUS LTD
• SEIMAF UK LTD
• TLC ADVISORY LTD
• VEE SOLUTIONS LIMITED
• WATERLOO 55 LIMITED

Winding-up Petitions (3)

• AIDSUN HOLDINGS LIMITED
• CROSS HARE INVESTMENTS LIMITED
• M.J.M. FRAMES LIMITED

Protecting cashflow when customers are under pressure

Today’s news illustrates why strong credit management matters even when a customer has historically paid reliably. Businesses are being hit simultaneously by higher energy and borrowing costs, softer consumer demand, employment uncertainty and increasing operating costs. A previously sound customer can therefore become a payment risk surprisingly quickly.

CPA can help businesses use CreditCare credit reports and monitoring to identify changing customer risk, strengthen credit-control processes and improve payment performance.

Where invoices become overdue, CPA can support recovery through the professional and considerate approach of its Overdue Account Recovery Service, designed to secure payment while preserving valuable customer relationships.

Early intervention matters. The longer an invoice remains unpaid, the greater the risk that it becomes caught up in a wider deterioration in the customer’s financial position.

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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