UK Business News Today: 17 August 2026 | Economy, Markets & Insolvencies

UK businesses are entering the week with several financial pressures moving in the wrong direction. Inflation is expected to rise again as energy and food costs increase, housebuilders remain cautious despite government ambitions to accelerate construction, and employers are warning that proposed labour reforms could add further costs. At the same time, global equity markets remain relatively resilient, helped by another surge of enthusiasm around artificial intelligence, while Middle East tensions continue to create uncertainty around energy prices, supply chains and future borrowing costs..

James Salmon, Operations Director.

Key Developments

• UK inflation is expected to rise from 2.6% to 2.9% in July as higher energy costs begin feeding through to households and businesses.
• Profits at the UK’s eight largest listed housebuilders are forecast to fall 12% this year despite government pressure for substantially more homes.
• Two-thirds of employers surveyed by the CIPD expect proposed zero-hours contract reforms to increase costs and administration.
• Nearly half of medium-sized businesses surveyed by BDO identify rising costs and supply-chain disruption as their biggest near-term concern.
• Global equities opened the week firmer, but Middle East tensions, weak Chinese economic data and energy prices remain important risks.

Economy & Policy

Inflation expected to rise as energy costs return to the foreground

UK inflation is expected to increase to 2.9% in July from 2.6% in June, according to economists ahead of Wednesday’s Office for National Statistics release. Higher energy prices linked to the Iran conflict and the latest Ofgem price-cap reset are expected to be important contributors.

Investec economist Ellie Henderson estimates the energy-price change could add around 0.5 percentage points to inflation. Food prices are another concern, with heatwave-related crop shortages potentially pushing grocery costs higher.

A separate Bloomberg assessment highlights another emerging source of inflation: shortages of memory chips associated with rapid global expansion of AI infrastructure. Higher component costs are already beginning to affect some electronics prices.

Why it matters: Renewed inflation can increase operating costs, squeeze customer margins and delay interest-rate relief, all of which can weaken payment performance and put additional pressure on SME cashflow.

UK businesses brace for tougher trading conditions

Nearly half of medium-sized UK businesses surveyed by BDO expect rising costs and supply-chain disruption to be their main concerns in the coming months.

The continuing Middle East conflict is adding uncertainty around oil, gas and transport costs, forcing some businesses to reconsider investment and pricing decisions. BDO has warned that UK inflation could potentially reach 4% if oil prices rise substantially further.

Why it matters: Businesses selling on credit need to watch customers whose margins are being squeezed, because higher input costs can quickly turn into slower invoice payments and greater credit risk.

October Budget creates fresh tax uncertainty

Businesses and households are already looking ahead to Chancellor John Healey’s 28 October Budget.

AJ Bell estimates that around 1.3 million people will pay the 45% additional rate of income tax this year, more than double the number in 2021/22, while speculation continues around possible changes affecting investments, property, savings and estates.

Tax & Government

Jamie Dimon warns against higher UK bank taxes

JPMorgan Chase chief executive Jamie Dimon has warned Chancellor John Healey against raising taxes on banks as the government prepares its autumn Budget.

Dimon argued that an uncompetitive tax regime could push capital and financial-sector jobs out of the UK. The warning comes as trade unions call for banks, which have benefited from strong profits, to make a larger contribution through taxation.

Other senior banking executives are expected to discuss the issue with the Chancellor.

HMRC steps up action against high street fraud

HMRC has updated its fraud-reporting service as the Government increases efforts to tackle illegal activity on Britain’s high streets.

Chancellor John Healey said dishonest operators can damage communities while undercutting businesses that comply with tax and employment rules. HMRC plans more than 30,000 interventions this year targeting tax fraud and associated illegal activity.

Why it matters: Stronger enforcement can help legitimate SMEs compete on a more level playing field, particularly in sectors where businesses operating outside the rules can undercut responsible employers.

Start-ups lose faith in the “Buy British” procurement pledge

The Startup Coalition says UK start-ups remain frustrated by their ability to win government work and has called for Andy Burnham’s “Buy British” initiative to result in meaningful procurement reform.

A target introduced in 2015 aimed to direct one-third of government procurement towards smaller companies, but only 21% was achieved last year. The group also says much government technology spending continues to flow to overseas suppliers.

Prime Minister urged to reverse inheritance tax changes for farms

Andy Burnham is facing pressure to reverse inheritance tax measures affecting family farms.

Burnham has acknowledged that Labour has significant work to do to rebuild trust with farming communities. Shadow Chancellor Sir Mel Stride has argued that reversing the changes would be an important step, while the Government recently announced a £65 million support package for farms affected by drought.

Employment & Labour

Employers warn zero-hours reforms could lead to redundancies

Two-thirds of employers surveyed by the Chartered Institute of Personnel and Development expect proposed reforms to zero-hours contracts to increase their costs and administrative burden.

Some respondents believe redundancies could follow if the changes are implemented. A government-commissioned study found that 72% of workers on zero-hours contracts prefer the flexibility provided by the arrangement.

The CIPD has also called on ministers to reconsider the reduction in the employer National Insurance threshold, arguing that it has made entry-level recruitment more difficult.

AI-assisted legal claims add another potential business cost

Employment tribunal claims are reportedly rising by almost 40% annually, with easier access to generative AI tools cited as one factor making claims simpler and cheaper to prepare.

The lettings sector is seeing similar concerns about AI-assisted claims against landlords. Greater access to legitimate legal recourse can benefit individuals, but businesses may also face higher legal, insurance and administrative costs as the technology becomes more widely used.

Housing, Construction & Planning

Housebuilders remain cautious despite government’s construction ambitions

Prime Minister Andy Burnham is pushing for substantially more homes to be built, but the financial position of Britain’s largest housebuilders provides little evidence that a construction boom is imminent.

The sector continues to face higher construction costs, planning constraints and affordability pressures. The inflation shock following Russia’s invasion of Ukraine and more recent disruption linked to the Iran conflict have added further cost pressure.

RBC Capital Markets expects the eight largest listed UK housebuilders to generate combined adjusted operating profits of around £2.3 billion in 2026, down from £2.6 billion in 2025, a decline of approximately 12%.

Rightmove cuts outlook after asking prices fall 2%

Rightmove has downgraded its 2026 UK house-price outlook after sellers reduced asking prices more aggressively during August.

The average asking price for a newly listed home fell 2.0% month-on-month, or £7,360, to £364,999. That compares with an average August decline of 1.3% over the past ten years and represents the largest August fall since 2018.

Buyer demand has nevertheless reportedly risen 5% since Andy Burnham became Prime Minister on 20 July. Regional conditions remain uneven, with stronger pricing in northern England and weaker conditions across parts of the south.

New planning rules give pubs stronger protection from conversion

Changes to England’s National Planning Policy Framework will make it harder for pubs to be converted into homes or offices.

Developers seeking a change of use will have to demonstrate that there is no reasonable prospect of the premises remaining viable as a pub, including evidence that the property has been marketed for at least 12 months.

Hospitality groups argue, however, that taxation, business rates and employment costs remain the more fundamental threat to pub viability.

The planning changes also encourage housing development around railway stations as the Government pursues its target of 1.5 million new homes by 2029.

SME & Business Environment

School plans miniature business economy for pupils

Kensington’s new Inspired Edge Academy plans to introduce a school-based digital currency called “edge coins” from September 2027.

Pupils will be able to earn the currency through work and behaviour and use it to create or invest in businesses within the school. Profits will then be taxed to contribute towards shared facilities including books and class trips.

Although small in economic significance, the project offers an unusual introduction to entrepreneurship, investment and taxation at school age.

Industry & Investment

Bezos-backed investors take stake in Liverpool FC

A group of investors including Amazon founder Jeff Bezos has agreed to acquire a minority interest in Liverpool Football Club from majority owner Fenway Sports Group.

Reports suggest the investment could amount to roughly one-third of the club and could value Liverpool at around $7.5 billion, putting it among the world’s most valuable football clubs.

Weather Today

Morning rain affected southwest England, with drizzle in the northwest and lighter cloud further east. London was forecast to reach 26°C, with a low of 16°C.

Light rain was expected in Belfast from lunchtime and in Edinburgh from late afternoon.

For businesses in construction, hospitality, retail and logistics, relatively mild conditions across much of the UK should limit serious operational disruption today.

Global Market Summary

Global markets started Monday with a broadly positive tone, driven primarily by renewed enthusiasm for artificial intelligence investment. Anthropic’s reported Q2 revenue of more than $11.5 billion, up more than fourteen-fold year-on-year, encouraged further buying of technology and semiconductor shares. At the same time, weaker US economic data pushed the dollar lower and reduced expectations for additional Federal Reserve tightening.

UK and Europe

The FTSE 100 traded around 10,764.53, up 0.13% from Friday’s close.

The STOXX Europe 600 stood at 658.88, up 0.16%.

The Euro STOXX 50 reached 6,559.20, up 0.30%.

Germany’s DAX was slightly weaker at 26,429.89, down 0.04%, while France’s CAC 40 traded at 8,629.58, down 0.08%.

Mining and technology shares provided much of the support, although disappointing Chinese economic data limited enthusiasm among companies heavily exposed to global industrial demand.

United States

The S&P 500 finished Friday at 7,785.76, after touching 7,800 earlier in the week. Monday S&P futures indicated approximately 7,817, around 0.4% above Friday’s cash close.

The Nasdaq 100 closed Friday at 30,046.14, with Monday futures around 30,319, roughly 0.9% above the cash close, as technology shares responded positively to the latest AI investment news.

The Dow Jones Industrial Average finished Friday at 53,732.41. A comparable Monday percentage indication was not included in the supplied market data, so no percentage move has been assumed.

US sentiment has also been helped by softer inflation and retail-sales readings, which have reduced expectations that the Federal Reserve will need to raise rates aggressively.

Asia

Japan’s Nikkei 225 closed at 69,220.25, up 0.74%.

Hong Kong’s Hang Seng gained 1.44% to 25,479.77, while the Shanghai Composite advanced 1.41% despite disappointing Chinese economic figures.

China reported retail-sales growth of only 0.6%, industrial production growth of 4.5%, and a 19.2% year-to-date decline in property investment, increasing pressure on Beijing to support growth.

Japan also produced softer-than-expected GDP data, with annualised second-quarter growth of 1.1%, below the 2.0% forecast.

Currencies

Sterling strengthened modestly against a generally weaker dollar.

GBP/USD: approximately 1.3566, up 0.21% from Friday.

GBP/EUR: approximately 1.1686, down 0.11%.

The broader US dollar index fell around 0.31%, extending a three-session decline as investors reduced expectations for Federal Reserve rate increases.

Commodities

Energy markets remain heavily influenced by events in the Middle East.

Brent crude: approximately $88.76 a barrel, up 0.27%.

WTI crude: approximately $82.17, down 0.28%.

Israeli strikes in Lebanon and attacks on vessels in the Strait of Hormuz have kept a geopolitical risk premium in oil, although continuing supply flows have so far prevented a much larger price spike.

Gold: approximately $4,401.25 an ounce, up 0.57%, supported by dollar weakness and demand for defensive assets.

Copper also strengthened as competition for immediately available supplies intensified.

What is moving markets?

Three themes dominate.

First, investors remain willing to back technology and AI infrastructure despite increasingly large investment commitments.

Second, softer US economic data have lowered expectations for higher interest rates and weakened the dollar.

Third, the Middle East remains the principal risk to energy prices. Further disruption around the Strait of Hormuz could quickly affect oil, transport, manufacturing and logistics costs.

For UK businesses, the apparent calm in equity markets should therefore not obscure the underlying cost risks from energy, inflation and supply-chain disruption.

Insolvency Watch

Administrations (5)

• BLENCOWE SCAFFOLDING LIMITED
• CSKN MEDICAL LIMITED
• FULCRUM HOSPITALITY LIMITED
• STRATHMORE HOTELS LIMITED
• WEYBRIDGE SKIP HIRE LIMITED

Winding-up Petitions (52)

• 2LMP LTD
• ADVANCE RENEWABLE ENERGY LIMITED
• ALFRESCO KITCHENS LTD
• ANJALJUN HOLDINGS LTD
• ARMAS GROUP LTD
• AVENTADOR HOUSING LTD
• CAFE UTOPIA LTD
• CLARMANS HOLDINGS LIMITED
• COMSERV CONTRACTING & COMMERCIAL LIMITED
• CONSTRUCTION CONSULTANCY SERVICES (UK) LIMITED
• CROSS LOGISTICS SOLUTION LTD
• CUCKOO HILL LIMITED
• D.H.F. CONSULTANCY AND WHOLESALE TRADING LTD
• DUCKER & YOUNG SCAFFOLDING LIMITED
• ESCO CONSULTANCY LIMITED
• EXCEL HEATING LIMITED
• FORDS INTERNATIONAL LIMITED
• GLASS EXPRESS MIDLANDS LTD
• GLOBAL MERCANTILE LTD
• GOTHAM GROUNDWORKS LIMITED
• GRACECHURCH FAMILY OFFICE LTD
• H J C PROPERTY SERVICES LIMITED
• HENKA TRADING LTD
• IN FACILITIES ENGAGEMENT LTD
• KS CONCRETE PUMPING LTD
• LEXCONS CONSTRUCTION LTD
• LLOYD ELECTRICAL BRIGHTON LIMITED
• LONDON SCRAP TERMINAL LIMITED
• MATRAS EXPORTERS LTD
• MEDSTAAR LIMITED
• MULBERRY DESPATCH LTD
• NOTE ASSIST LIMITED
• NURTURE THEM NATURALLY LTD
• OMNITRADE HOLDINGS LIMITED
• ORIGIN DIGITAL (N.I.) LTD.
• PAUL BYLES WEALTH MANAGEMENT LIMITED
• PENNY LAND LTD
• PHC HOME CARE LIMITED
• QUAYSTAR LIMITED
• QUICK CAB SERVICES LTD
• R.A. BERRY & SON LIMITED
• SER BENEFITS LTD
• SHAPE HOUSE LTD
• SPICE GARDEN INDIAN CUISINE LTD
• THE BOXSASH WINDOW COMPANY LTD
• THREE CRANES PUB LTD
• TK FOOD LTD
• TOTOGI LTD
• TYP INTERNATIONAL LIMITED
• UNIPRO21 LIMITED
• WESLEYCARE LIMITED
• WS WIND SERVICES LTD

Protecting cashflow as costs begin rising again

Today’s news is a reminder that financial pressure rarely arrives from a single direction. Energy costs are rising, inflation could move higher, employment rules may increase overheads and several sectors are already seeing weaker margins.

That makes early credit-control action particularly important.

CPA’s CreditCare reports and debtor monitoring services can help Members identify changing customer risk before an overdue balance becomes a serious problem. Where invoices do become overdue, CPA can support Members with professional recovery and structured credit control designed to improve payment performance while preserving valuable customer relationships.

Early action matters. An apparently profitable customer can still experience a cashflow problem, and the longer an overdue invoice remains unresolved, the greater the risk of eventual loss.

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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