UK Business News Today: 16 June 2026 | Economy, Markets & Insolvencies

Late payment is the lead issue for UK businesses today, with new research from Sage estimating that overdue invoices cost the economy £11bn each year. SMEs are still showing resilience, with profits rising in the year to Q1 2026, but the pressure on cashflow remains clear: almost half of SME invoices are paid late and businesses are waiting an average of 27 days for payment. At the same time, high energy costs are threatening manufacturers, HMRC complaints are rising, proposed tax reporting rules are drawing criticism and markets are adjusting to a tentative US-Iran agreement that could reopen the Strait of Hormuz and ease oil-driven inflation risks.

James Salmon, Operations Director.

Key Developments

• Late payments are estimated to cost the UK economy £11bn a year, with 49% of SME invoices paid late.
• Manufacturers warn that high energy prices could force relocation or insolvency for some firms.
• PwC says high electricity costs could cost the UK £250bn in economic value over the next decade.
• Global markets rallied after the US-Iran deal, although doubts remain over how quickly the Strait of Hormuz can reopen.
• Insolvency notices include 5 administrations, 13 liquidations and 11 winding-up petitions.

SME & Business Environment

Late payments

Late payments are costing the UK economy an estimated £11bn every year, according to research from Sage. The figures suggest SMEs are waiting an average of 27 days for payment, while 49% of SME invoices are paid late. Despite those pressures, SMEs showed resilience, with profits growing by 7.4% in the year to Q1 2026. Sage said the introduction of e-invoicing from 2029 could speed up payments by 5 to 7 days.

Why it matters: Late payment directly weakens SME cashflow, increases the risk of supplier delays and makes strong credit control essential.

The British Chambers of Commerce is urging the Government to introduce a Growth Delivery Test to ensure policy decisions support economic expansion. Its report argues that the UK has growth potential but often struggles to turn that potential into action. BCC president Andy Haldane said years of rising costs, skills shortages, regulatory pressure and uncertainty have left too many firms believing the risks of growth outweigh the rewards. The report found that 73% of firms cite labour costs as a major pressure, while more than two-thirds say better access to skills is crucial.

Nearly half of Gen Z, those aged 14 to 29, have not saved any money in the past year, according to a report by Young Enterprise and HSBC UK. The report points to rising living costs, social pressure and a lack of financial education as key causes. Young Enterprise chief executive Sarah Porretta said the idea that young people are reckless with money is not supported by the evidence, describing a generation under real pressure.

Economy, Inflation & Interest Rates

The US Federal Reserve is expected to hold its benchmark interest rate at 3.5% to 3.75% at its upcoming meeting, Kevin Warsh’s first as chair. Analysts say the recent Middle East peace deal could ease inflationary pressure if oil flows resume through the Strait of Hormuz. UK inflation has surged to a three-year high of 4.2%, but ING economist James Smith said that if oil starts flowing again, the rise in UK inflation is likely to be halted, reducing the need for a summer rate hike. The Bank of England is expected to hold rates at 3.75% on Thursday, although Julian Jessop has argued that a quarter-point rise would show the Bank is serious about second-round inflation risks.

Asking prices for newly listed UK homes fell by £2,113, or 0.6%, between 10 May and 6 June, according to Rightmove. The average asking price now stands at £376,191, down from £379,517 last May. Rightmove’s Colleen Babcock said it was unusual to see a June fall of this size. The market is favouring buyers, with high levels of available stock and buyer enquiries down 10% year-on-year.

Tax & Government

Complaints against HMRC rose sharply in the 2024-25 financial year, with 12,670 grievances reported, a 66% increase on the previous year. The figures were obtained by UHY Hacker Young, whose partner Neela Chauhan said that when people cannot get through on HMRC phone lines, small problems quickly escalate. HMRC said the rise was linked to child benefit payment issues and argued that current wait times are around ten minutes, with customer satisfaction at 80%. Critics say a greater focus on enforcement over customer service risks leaving taxpayers without timely help.

The Institute of Chartered Accountants in England and Wales has warned that proposed UK reporting requirements for close companies could unfairly burden small businesses. Close companies are typically controlled by five or fewer individuals, meaning many owner-managed SMEs could be affected. ICAEW urged HMRC to focus on high-risk behaviours rather than volume-based data collection when trying to reduce the small business tax gap.

Reform UK plans to tax companies more for hiring foreign workers, using the proceeds to fund a reduction in National Insurance contributions for British employees. Robert Jenrick said the policy would prioritise British workers and end what he described as the cheap migrant labour racket. He argued that the £11.2bn cost to the Treasury would be offset by a levy on foreign employees and by lower benefit payments to British workers. The Telegraph notes that any legal challenge would be affected by Reform’s proposal to abolish the Equality Act.

Industry, Energy & Infrastructure

Britain’s manufacturing sector is facing severe pressure from high energy prices, according to Make UK. A survey by the trade body suggests many manufacturers are struggling with energy costs significantly higher than those faced by competitors in Europe and the US. A quarter of companies said they plan to relocate production, while 10% expect insolvency within a year. Make UK chief executive Stephen Phipson warned that Britain faces deindustrialisation unless manufacturers receive relief from high energy prices.

Britain could lose £250bn in economic value over the next decade because of high energy costs, according to a report by PwC. The UK has the highest electricity prices in the G7, driven by reliance on imports and a marginal-pricing system. Rising wholesale gas prices have made the problem worse. PwC’s Simon Oates said tackling energy costs could unlock significant economic potential.

Andy Burnham’s proposal to reverse deindustrialisation has drawn scepticism, with one professor describing it as “pie in the sky” and a romanticisation of what is possible. The UK has the smallest industrial base and some of the highest energy costs among wealthy-nation peers, making reindustrialisation difficult. High energy costs have been blamed for a 14% drop in output in energy-intensive parts of manufacturing. Even where factories do expand, automation means any revival may not create large numbers of lower-skilled jobs.

Thames Water has reportedly moved closer to formal administration after Environment Secretary Emma Reynolds raised concerns over a £10bn lender package. The proposal would have written off £9.4bn of the company’s £20bn debt pile. However, the minister is understood to be concerned that the deal offered insufficient protection for consumers. The situation remains a major test of how essential infrastructure can be financed without placing too much burden on households and businesses.

Politics & Regulation

Prime Minister Sir Keir Starmer has urged Andy Burnham not to “throw the country into chaos” with a leadership challenge if Burnham wins the Makerfield by-election next week. Burnham has said the UK is becoming more divided and warned that he does not want the country to end up like the United States, where people struggle to talk to each other if they vote different ways. The comments add political uncertainty at a time when businesses are already dealing with rising costs, tax pressures and fragile confidence.

Keir Starmer has announced a “full ban” on children under 16 using major social media platforms. The plans include measures to prevent children from speaking to strangers on gaming services and live-streaming platforms without supervision. The Government says the restrictions will be tougher than Australia’s and enforced using age verification technology. Exemptions are expected for some services, including YouTube Kids and Google Classroom.

Global & Geopolitical Developments – US & Iran sign deal

Donald Trump has said a memorandum of understanding with Iran is “all signed” and that the Strait of Hormuz will be “completely open” by Friday, when a deal to end the war is due to be formalised. The proposed deal includes a 60-day ceasefire framework, the lifting of the US naval blockade and the reopening of a waterway through which roughly one-fifth of global oil and LNG normally flows. However, details remain unclear and European allies do not share Trump’s confidence that trade can resume so quickly. Shipowners are waiting for operational detail, while European governments want a final agreement and a cessation of hostilities before committing mine-clearing support.

Although the proposed deal has improved market sentiment, many aspects remain contentious. Negotiations over Iran’s nuclear programme are expected to continue, and sanctions relief may depend on progress in those talks. America, Iran and Israel also appear to disagree about what the pact means for Israel’s current occupation of southern Lebanon. That uncertainty explains why markets have welcomed the deal but not treated the geopolitical risk as fully removed.

Russian Sanctions

The UK has announced new sanctions against a Russian intelligence network accused of acquiring Western technology for military use in Ukraine. The sanctions target three companies, 10 GRU officers and suppliers of critical military equipment to Russia in China, Thailand and Türkiye. The UK also announced £210m of export finance support to help power Ukraine’s nuclear plants for two years. The measures underline the continuing link between security policy, trade restrictions and global supply chains.

Industry & Investment

Fox buys Roku

Fox has struck a $22bn cash-and-stock deal to buy Roku, the streaming service with more than 100m users. The cable-TV group wants to create a next-generation media and technology company for its news and sports content as viewers continue moving online. The deal is Fox’s first major acquisition since Lachlan Murdoch took over from his father, Rupert Murdoch, last year. It reflects the continuing shift of advertising and audience attention away from traditional television and towards streaming platforms.

Global Market Summary

Markets were dominated by the proposed US-Iran interim peace deal and the prospect of the Strait of Hormuz reopening. The agreement triggered a broad risk-on move across asset classes: equities rose, oil prices fell sharply, defence stocks weakened and cyclical sectors such as travel, construction and autos performed better. The rally was not uniform, however, as investors remained cautious about whether the waterway can reopen by Friday and whether the agreement can survive unresolved questions over sanctions, Iran’s nuclear programme and regional security.

In the UK, the FTSE 100 closed down 0.39% at 10,430.62 on Monday, despite strength elsewhere. The index briefly traded as high as 10,570 but gave back gains as its heavy exposure to oil and defence worked against it. Shell fell 4.4% after Brent crude dropped, while BAE Systems fell 4.7% as investors reduced the geopolitical risk premium in defence stocks. The FTSE 250 outperformed, rising 0.2% to 23,362, while AIM gained 2.3%.

In Europe, the STOXX 600 rose 0.2% after briefly touching an all-time high, while the Euro STOXX 50 gained 0.7%. The DAX outperformed among major European indices as investors favoured cyclical names, while the CAC 40 also gained, although luxury shares remained sensitive to weaker Chinese data. The Euro STOXX 50 volatility index fell 12% to 16.55, showing a sharp reduction in perceived market risk.

In the US, the S&P 500 rose 1.7% to 7,554.29, its highest close since 4 June and its third consecutive daily gain. The Nasdaq 100 rose 3.1%, led by technology and growth stocks, while the Dow Jones Industrial Average reached an all-time high. Semiconductor shares were especially strong, with the Philadelphia Semiconductor Index rising 5.4% to a record high. Nvidia gained 3.5%, Western Digital rose 16.1%, and SpaceX added another 20% after its debut.

Asian markets were more mixed overnight. Japan’s Nikkei 225 rose 0.5% to around 69,644 after the Bank of Japan raised rates in line with expectations, while the Topix slipped 0.2% to 3,991.14. Hong Kong’s Hang Seng fell 1.4% to 24,493.95 after disappointing Chinese consumer data, and the Shanghai Composite slipped 0.1% to 4,091.89. South Korea’s Kospi rose 2.1% to 8,726.60, helped by semiconductor strength, while Taiwan’s Taiex gained 0.9% to 45,809.19. Australia’s S&P/ASX 200 was broadly flat at 8,917.70 after the Reserve Bank of Australia kept rates on hold.

The main market drivers were the US-Iran deal, central bank decisions and weak Chinese data. The Bank of Japan raised its benchmark rate by 25 basis points to 1%, the highest since 1995, but the yen gave back gains after Deputy Governor Uchida’s comments were read as dovish. The Reserve Bank of Australia held rates steady and warned that inflation remains too high. Investors are now focused on Kevin Warsh’s first Federal Reserve meeting as chair and the Bank of England’s decision on Thursday, where markets expect rates to remain at 3.75%.

Currency markets were steadier than equities and commodities. GBP/USD was little changed at $1.3415, with sterling steady ahead of the Bank of England decision. EUR/GBP was also little changed at 0.8645, implying EUR/USD around $1.155. USD/JPY traded near 160.35 after the yen reversed its initial gain following the Bank of Japan’s rate rise.

Commodity markets moved sharply on the Iran news. Brent crude traded around $83 a barrel after falling 4.8% on Monday and extending losses on Tuesday. WTI crude settled below $81 a barrel, marking its longest losing streak of 2026. European natural gas fell 9% on Monday. Oil is now more than 30% below its wartime peak, with investment banks cutting forecasts as Persian Gulf exports are expected to recover faster than previously feared.

Gold moved in the opposite direction, rising 2.2% on Monday to around $4,315 an ounce and holding those gains. Silver rose 4.9%. Gold’s strength suggests that some investors are still seeking protection despite the reduced immediate geopolitical risk, helped by ongoing central bank demand.

Insolvency Watch

Administrations (5)

• DIRECT COMM LTD
• FAYERS PLUMBING & BUILDING SUPPLIES LIMITED
• SIFI NETWORKS AMERICA LIMITED
• STELEX ENGINEERING LIMITED
• WELINK ENERGY PORTUGAL 2 (UK) LIMITED

Liquidations (13)

• ANTONINE INVESTMENT MANAGERS LIMITED
• BROADWAY TYRE COMPANY LIMITED
• CANADA SQUARE FUNDING 2021-2 PLC
• DIXON AUTOMOTIVE LIMITED
• ESA PARTNERS LTD
• GREENCOURT MANAGEMENT LIMITED
• HARRISONS DAIRIES LIMITED
• KESTIM MANAGEMENT LIMITED
• MALLABAR LIMITED
• MISSON PALLETS SERVICES LIMITED
• OASIS ENVIRONMENTAL LTD.
• QUARTERDECK SANDGATE LIMITED
• STARBREEZE STUDIOS UK LIMITED

Winding-up petitions (11)

• AVANTIS LIVING TRADE LIMITED
• BRITANNIA K9 SECURITY LIMITED
• COLIBRI GLOBAL TRADING LTD
• D&G RO DRY LINING LTD
• DDR PAPER PRODUCTS LIMITED
• FUZE AGENCY LTD
• ICARE SOLUTIONS GLOBAL LIMITED
• ORTON & WENLOCK LIMITED
• STEFAN FLOREA LIMITED
• SWIFT CARPETS AND FLOORING LTD
• WILLOW COURT SERVICES LIMITED

How CPA can help you

Today’s lead story shows the scale of the problem clearly: late payments are costing the UK economy an estimated £11bn a year, and nearly half of SME invoices are paid late. For businesses that sell on credit, every overdue invoice reduces available cash, increases admin time and weakens the ability to pay suppliers, wages and tax on time.

CPA helps businesses take a more structured approach to credit control. Through CreditCare reports, debtor monitoring and overdue account recovery, CPA supports members in identifying risk earlier, following up professionally and recovering overdue invoices while protecting customer relationships.

To strengthen your credit control and protect cashflow, 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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