UK Business News Today: 18 June 2026 | Economy, Markets & Insolvencies
Sorry if I’m not my sharpest today but that game was great wasn’t it?! UK businesses still face a mixed picture. Inflation has held lower than expected, helping the Bank of England avoid immediate pressure to raise rates, while unemployment has edged down. However, the deeper labour market signals are weaker: vacancies are at a five-year low, new hires have slowed sharply and employers are becoming more cautious. For SMEs that sell on credit, the message is clear: confidence may have improved after England’s World Cup win last night and with lower oil prices, but credit risk remains elevated where customers face cost pressure, weaker demand or tighter cashflow.
James Salmon, Operations Director.
Key Developments
• UK vacancies fell to 707,000, the lowest level since February to April 2021.
• The Bank of England is expected to hold interest rates at 3.75% after CPI stayed at 2.8%.
• HMRC won its VAT dispute against Bolt, with wider implications for platform businesses.
• AO World said higher employment costs contributed to its decision to move jobs offshore.
• Brent crude fell below $80 as markets priced in relief from a potential US-Iran deal.
SME & Business Environment
UK vacancies fall to a five-year low
The UK labour market remained broadly stable on the surface, with unemployment falling to 4.9% in the three months to April from 5.0%. However, the underlying picture is weaker. Vacancies fell to 707,000 in the March to May period, the lowest level since February to April 2021, while HMRC data showed new hires dropped to just under 540,000 in April, also the lowest since March 2021. The ONS said firms are becoming more cautious about taking on staff, with professional services seeing the largest fall in vacancies and retail and hospitality also showing significant declines. Regular pay rose by 3.4%, but private sector wage growth is now at its weakest in five and a half years.
Why it matters: Slower hiring can reduce household confidence and customer spending, increasing payment risk for SMEs that rely on steady consumer or business demand.
AO World moves jobs offshore after higher employment costs
AO World has said it has moved 150 sales and call-centre roles to South Africa, with another 50 expected to follow. Founder John Roberts said higher National Insurance contributions and minimum wage increases had added £8.5m to the company’s costs, prompting the move. The retailer said the shift had already generated annual savings of £2m, expected to rise to £4m. Despite the criticism of policy costs, AO reported strong results, with profits rising 16.1% to a record £50.5m and revenues up 11.4% to £1.27bn.
Parents expect to support children until age 26
Parents in the UK expect to provide financial support to their children until the age of 26, according to a survey by M&G. Only 9% believe their children will be financially self-sufficient by 21, while 18% expect to support them into their thirties. The survey also found that 24% of parents plan to help with home deposits, forcing many to adjust their own spending and lifestyle decisions. This points to continued pressure on household finances, even among families not usually seen as financially vulnerable.
Economy & Policy
Bank of England expected to hold rates as inflation stays below forecasts
The Bank of England is widely expected to keep interest rates at 3.75% for a fourth consecutive meeting. CPI inflation remained at 2.8% in May, below the 3% that many economists had expected. Food price rises slowed to a 17-month low, although transport costs rose at the fastest rate. The Iran conflict remains a concern because energy shocks can quickly feed into wider costs, but the prospect of a US-Iran peace deal has eased some immediate fears.
Why it matters: Stable interest rates give SMEs more certainty over borrowing and finance costs, but inflation above target still keeps pressure on margins and payment behaviour.
House prices show resilience in April
UK house prices rose by 0.7% in April, taking the average price to £270,000, according to government figures. The increase should be read with caution because last year’s figures were affected by the end of the stamp duty holiday. Sarah Coles of AJ Bell said the property market showed resilience in April, although many of the sales reflected in the data would have been agreed before the Iran war had a major impact on sentiment. Rate-sensitive sectors remain exposed if borrowing costs stay higher for longer.
Why it matters: A resilient housing market can support confidence, but higher mortgage and borrowing costs still leave many households and property-linked businesses under pressure.
Brexit linked to lower UK exports to the EU
Brexit has reduced UK exports to the EU by 12%, according to research from the Centre for European Reform. The research estimates that goods exports are 16% lower and services exports 7% lower than they would have been had the UK remained in the EU. Much of the decline is attributed to leaving the single market, with regulatory costs weighing on trade. For SMEs, the impact is likely to be felt most sharply where paperwork, customs costs or compliance barriers reduce competitiveness.
Why it matters: Export friction can weaken margins, delay cash collection and increase the risk of late payment for SMEs trading across borders.
Tax & Government
HMRC wins VAT dispute against Bolt
HMRC has won its appeal against Bolt over the company’s use of the tour operators’ margin scheme for VAT calculations. The Court of Appeal ruled that Bolt does not qualify for the scheme, which would have allowed VAT to be paid only on profit margin rather than on the whole fare. The decision affects an estimated £190m in unpaid VAT and means Bolt may need to charge VAT on the full fare. The ruling may also have implications for Uber, which is facing a similar VAT dispute estimated at around £1bn.
Why it matters: VAT rulings can quickly reshape pricing, margins and cashflow, especially for platform businesses and SMEs operating in sectors with complex tax treatment.
Kemi Badenoch sets out “investable Britain” plan
Conservative leader Kemi Badenoch is expected to set out plans to make the UK more “investable” in a City of London speech. The proposals include changes to bank capital requirements, replacing the Financial Ombudsman Service with a new complaints system, and repealing ring-fencing rules introduced after the financial crisis. She is also expected to focus on lower energy costs, less regulation, more flexible labour markets, lower taxes and support for the City. The speech comes as the Conservatives try to regain business support and win back right-leaning voters from Reform UK.
Why it matters: Changes to banking regulation and business policy could affect credit availability, lending appetite and the cost of finance for SMEs.
Employment & Labour
Union warns over Labour migration crackdown
Union leaders have urged Labour to rethink Home Secretary Shabana Mahmood’s migration plans. The proposals include extending the wait for indefinite leave to remain from five years to ten years and imposing stricter conditions on applicants. Andrea Egan, general secretary of Unison, described the move as a direct attack on union members and warned it could increase the exploitation of migrant workers. The warning comes amid claims that as many as 45,000 nurses could leave the UK as a result.
Angela Rayner urges Labour to keep young workers’ wage pledge
Angela Rayner has called on Labour to uphold its commitment to equal pay for all adults, including 18 to 20-year-olds. She argued that cutting wages for young people would not solve the NEETs crisis and said secure work was essential for helping young people build stable lives. The comments come as employers face wider debate over wage costs, employment taxes and the challenge of bringing young people into work. The issue is likely to remain politically sensitive as businesses balance affordability with recruitment
Politics & Business Confidence
Makerfield by-election carries wider Labour leadership implications
Voters in Makerfield are choosing a new MP in a by-election with national political significance. Andy Burnham, Labour’s candidate and mayor of Greater Manchester, has said he would challenge Sir Keir Starmer for the Labour leadership if he wins. His route may be helped by a split on the right, with Reform UK facing competition from Restore Britain. Polling among Labour members suggests Burnham could beat Starmer in a direct leadership contest, though Wes Streeting is also expected to stand.
Why it matters: Political instability can delay business decisions, especially where firms are waiting for clarity on tax, regulation, employment law and public spending.
England win gives the country a confidence lift
England opened their World Cup campaign with a 4-2 win over Croatia in Dallas. Harry Kane scored twice in the first half, taking his World Cup tally to 10 and equalling Gary Lineker’s England record. Croatia came back to level the match, but Jude Bellingham put England ahead again early in the second half before Marcus Rashford added a fourth late on. England next play Ghana in Foxborough, Massachusetts, on Tuesday, while Croatia play Panama in Toronto on the same day.
Why it matters: Major sporting wins can lift consumer mood and support hospitality, retail and leisure spending, although SMEs still need to watch costs and payment discipline.
Industry & Investment
Oil relief arrives, but supply pressure may not disappear quickly
America and Iran are close to a deal that could allow the Strait of Hormuz to reopen within 30 days. Markets have already priced in relief, with Brent crude falling below $80 a barrel from more than $110 in May. However, the oil market may remain tight because it could take weeks to make the strait safe for tankers and months for vessels in other oceans to return to normal routes. Morgan Stanley expects dated Brent to average $90 between July and September, suggesting the pre-war period of abundant supply may not return quickly.
Global Market Summary
Markets were pulled in two directions. A hawkish Federal Reserve unsettled US equities and strengthened the dollar, while the US-Iran peace deal reduced oil prices and improved risk appetite in parts of Asia. The result was a mixed global session, with energy importers benefiting from cheaper oil while rate-sensitive sectors came under pressure.
In the UK, the FTSE 100 was broadly flat in Wednesday’s cash session and was called lower at the open on Thursday, down around 0.7%, as oil majors and housebuilders weighed on the index. The FTSE 250 gained 0.2% intraday. UK inflation holding at 2.8% gave some relief ahead of the Bank of England decision, but global rate worries continued to weigh on interest-rate sensitive stocks.
In Europe, the STOXX Europe 600 rose 0.5% to a fresh record high on Wednesday, supported by strength in banks, which gained for a fifth consecutive session. However, the auto sector was hit hard by BMW’s profit warning. BMW cut its EBIT margin guidance to as low as 1%, citing a sharper deterioration in China’s automotive market, and its shares fell around 8.3% by the close. The warning also dragged down Infineon and STMicro. Euro STOXX 50 futures were down 0.5% on Thursday morning, while CAC 40 was broadly flat at the open. The DAX and CAC 40 remained sensitive to the mix of lower oil, weaker autos and global rate expectations.
In the US, the S&P 500 fell 1.2% to 7,420.10, the Dow Jones Industrial Average dropped 1.0% to 51,492.55 and the Nasdaq Composite declined 1.3% to 26,021.66 after the Federal Reserve kept rates unchanged but removed its easing bias. The two-year Treasury yield rose 16 basis points and markets moved to price in a rate increase by October. S&P 500 futures later rebounded 0.9% and Nasdaq 100 futures rose 1.4% as the Iran deal helped offset some of the Fed-driven weakness.
Asian markets were split. Japan’s Nikkei 225 rose 1.6% to 71,053.49, its sixth consecutive gain, helped by lower oil prices, bank strength and technology buying. The Hang Seng fell 1.6% to 23,924.81, its third consecutive decline, as Chinese technology and commerce stocks came under pressure. Mainland Chinese markets were mixed, with the Shanghai Composite down 0.4% at 4,090.48 and the CSI 300 up 0.2% at 4,941.6.
Currency markets were dominated by the dollar. The Bloomberg Dollar Spot Index posted its biggest one-day gain since 2 March after the Fed’s hawkish shift, before easing slightly on Thursday as risk sentiment improved. GBP/USD traded around 1.3278 after reversing earlier gains, while sterling had fallen 0.2% against the dollar in Wednesday’s session. GBP/EUR was broadly steady, with the euro also pressured by the stronger dollar and the prospect of tighter US policy.
In commodities, Brent crude fell 2.4% to $77.68 a barrel and WTI dropped 2.6% to $74.02 as markets priced in the US-Iran peace deal and the possible return of Persian Gulf supply. However, the oil market remains vulnerable because tanker movement may take time to normalise and stocks are low. Gold rose as much as 1.7% to $4,328 an ounce, supported by geopolitical relief despite the headwind from a stronger dollar and higher US rate expectations. Copper fell more than 1% as tighter monetary expectations weighed on industrial metals.
For SMEs, the market message is mixed. Lower oil prices could ease transport and energy costs, but higher global rate expectations, political uncertainty and softening labour demand all point to the need for careful credit control.
Insolvency Watch
Administrations (16)
• ARDMORE CONSTRUCTION GROUP LTD
• ARDMORE FITOUT LTD
• ARDMORE HOTELS & COMMERCIAL LTD
• ARDMORE MAJOR PROJECTS LTD
• ARDMORE REGENERATION LTD
• CROCKERSFOLLY LIMITED
• DILMOOR ESTATES LIMITED
• LANDMARK FACADES LTD
• LEBANESE FOOD MARKET LTD
• MALLOCK LIMITED
• MAROUSH GROUP LIMITED
• MAROUSH II COMPANY LIMITED
• RANOUSH COMPANY LIMITED
• SUCKERS LIMITED
• SUPERFLOW MANAGEMENT LIMITED
• ZAKARY LIMITED
Liquidations (6)
• ANSBACHER & CO LIMITED
• ANSBACHER UK GROUP LIMITED
• BAKO (WESTERN) LIMITED
• ELISKA ADVISORY LIMITED
• STRACHAN TRAVEL LIMITED
• SUMAC COMMERCIAL LIMITED
Winding-up petitions (3)
• CAFE AYLANTO LIMITED
• DOUGHBOYS LIMITED
• SHILOH HOUSE HOLDINGS LTD
Winding-up orders (1)
• LUMINE PARTNERS LIMITED
Keep confidence high, but protect the cash behind it
England’s World Cup win may have lifted the national mood, and lower oil prices may ease some pressure on business costs. But today’s wider picture still points to caution. Vacancies are falling, employers are cutting back on recruitment and insolvency notices continue across construction, hospitality, food and professional services.
CPA helps businesses stay confident without becoming exposed. CreditCare reports, debtor monitoring and overdue account recovery give you a clearer view of who you are trading with and when to act. The earlier overdue invoices are addressed, the better the chance of recovery while preserving the customer relationship.
For support with overdue accounts or credit risk, call CPA on 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.
Open this guide in a new tab
.