UK Business News Today: 19 June 2026 | Economy, Markets & Insolvencies

Rising costs are back at the centre of the UK business story. Small firms are being pushed to raise prices again as supplier bills, energy costs and wider operating expenses continue to climb. That matters for any business selling on credit because pressure on margins often turns into pressure on payment behaviour. At the same time, the Bank of England has held interest rates at 3.75%, retail sales have rebounded, public borrowing has overshot forecasts, and political uncertainty has increased after Andy Burnham’s return to Parliament.

James Salmon, Operations Director.

Key Developments

• Small businesses report a near 17% rise in outgoings over the past year.
• The Bank of England held interest rates at 3.75%, but two policymakers voted for a rise.
• UK retail sales rose 1.2% in May, helped by promotions and hot weather.
• Government borrowing reached £23.3 billion in May, above forecasts.
• Late payment reform remains under scrutiny as SMEs continue to wait too long to be paid.

SME & Business Environment

Small businesses face rising costs and repeated price rises

Small businesses are still battling rising costs, with research from Smart Energy GB showing that two in three small business owners have increased prices three times or more in the past five years. A quarter are planning another rise before the end of summer. Supplier costs and energy bills are the main reasons, while average small business outgoings have risen by nearly 17% over the past year.

For many SMEs, this is not just a pricing issue. Higher costs reduce the room for error if customers pay late, challenge cash reserves and make credit control more important. Businesses may be selling more, but if costs are rising faster than cash is coming in, the pressure can quickly show up in overdue accounts.

Why it matters: When costs rise, late payment becomes more damaging because every delayed invoice leaves less room to cover wages, suppliers, tax and energy bills.

Late payment reform is welcome, but SMEs cannot wait

A recent Macalvins article highlighted Sage research (we covered it on the 16 June 2026) showing that late payments drain £11 billion a year from the UK economy. It said 49% of SME invoices miss their due date, with firms waiting an average of 27 days beyond invoice date. Proposed reforms include a 60-day payment limit, compulsory interest on overdue payments and stronger powers for the Small Business Commissioner.

The direction of travel is positive, but reform will not solve today’s cashflow problem overnight. SMEs still need clear payment terms, early follow-up, credit checks and a consistent escalation process. Waiting for legislation while unpaid invoices age can make recovery harder.

Why it matters: Late payment reform may help in future, but SMEs need practical credit control now to protect working capital.

UK retail sales rebound strongly in May

UK retail sales volumes rose 1.2% in May after a revised 1% fall in April, beating economists’ expectations of a 0.5% increase. Promotions and hot weather helped department stores and household goods retailers, suggesting that consumers may be more resilient than feared. Falling oil prices could also ease some pressure on household budgets if lower crude prices feed into petrol costs.

However, there are still reasons for caution. Consumer confidence remains fragile, and households face a 13% increase in the UK energy price cap in July. For retailers and suppliers selling on credit, stronger sales are welcome, but they do not remove the need to watch customer payment behaviour closely.

Why it matters: Better retail sales can support turnover, but squeezed households and rising bills may still affect how quickly customers pay.

Economy & Policy

Bank of England holds rates at 3.75%

The Bank of England held interest rates at 3.75% after lower oil prices reduced some inflation risk following the US-Iran deal. The Monetary Policy Committee voted seven to two to hold rates, with Chief Economist Huw Pill and external member Megan Greene voting for an immediate quarter-point increase to 4%. The Bank said falling oil prices were encouraging but warned that energy prices and inflation pressures remain unpredictable.

The decision reflects a difficult balance. Inflation remains above the 2% target, but the economy is facing weak growth, a softer labour market and cost pressure on businesses. For SMEs, borrowing costs remain high even without another increase, and the risk of future rate rises has not disappeared.

Why it matters: Stable rates help planning, but the cost of finance remains high and businesses should not assume cheaper borrowing is imminent.

UK government borrowing exceeds forecasts

Public sector net borrowing reached £23.3 billion in May, up from £17.9 billion a year earlier and £5.6 billion above the Office for Budget Responsibility’s forecast. Borrowing for the first two months of the 2026-27 financial year reached £46.3 billion, exceeding official projections by £7.7 billion. Debt interest costs rose 54% year-on-year to a record £11.7 billion for May.

This adds pressure on the public finances and limits room for tax cuts or business support. It also matters to markets because high borrowing and high debt costs can put pressure on gilts, sterling and future fiscal policy. For SMEs, the risk is that tighter public finances lead to higher taxes, reduced support or delayed investment.

Andy Burnham’s Makerfield win increases political uncertainty

Greater Manchester Mayor Andy Burnham won the Makerfield by-election for Labour with 54.8% of the vote, defeating Reform UK on 34.5%. The result gives Burnham a route back into Parliament and potentially a platform to challenge Keir Starmer for the Labour leadership. The scale of the win may strengthen his argument that he can counter Reform UK’s rise.

Markets are watching because political uncertainty can affect sterling, gilts and business confidence. Burnham has said he would not change the government’s borrowing rules, but investors will still look closely at his tax, spending and infrastructure plans if a leadership contest develops.

Tax & Government

Labour criticised after tax receipts rise

Tax revenue rose by £29.6 billion in Labour’s first year in power, reaching £863.6 billion for 2024-25. Income tax receipts increased by £23.2 billion, helped by frozen thresholds, while stamp duty rose 23.6% and VAT increased by £13 billion. Critics, including Conservative party chairman Kevin Hollinrake and the TaxPayers’ Alliance, accused Labour of increasing the burden on households through stealth taxes.

For SMEs, the wider tax picture matters because household tax pressure affects consumer spending. It also affects wage expectations and business confidence. If customers feel poorer, they may spend less, delay discretionary purchases or take longer to settle bills.

HMRC alerts taxpayers over Making Tax Digital

HMRC is notifying self-employed people and property income earners about Making Tax Digital. The new rules require quarterly reporting instead of one annual return, and taxpayers will need MTD-compatible software. HMRC is hosting webinars to help businesses and landlords prepare.

The change adds another layer of compliance for smaller businesses and sole traders. While digital records may improve visibility over income and expenses, the transition could create extra admin, software costs and pressure for those not yet prepared.

Asset levy debate continues

Tim Sarson, head of tax at KPMG, argued that the wealth tax debate is too ideological and should be approached more technically. He suggested rethinking property taxation and considering a net asset tax model similar to the funds industry’s “two and 20” fee structure. His view is that such a model could provide a stable revenue source without distorting the economy, provided it is not framed as a traditional wealth tax.

The debate matters because the government’s fiscal position is tight. If borrowing remains high, the search for new revenue could intensify. Property owners, investors and business owners will watch closely for any signs of a shift in how assets are taxed.

Wealthy families rethink UK residency

Henley & Partners’ Millionaires on the Move report suggests the UK is losing appeal among wealthy families following tax reforms, including the abolition of non-domiciled tax status and inheritance tax changes. Competition from Portugal, the UAE and the Isle of Man is increasing. Property experts report rising interest from wealthy UK buyers looking at the Isle of Man, where income tax rates are significantly lower than in the UK.

A loss of wealthy residents can affect property markets, investment flows and high-end spending. It also reflects a broader concern about the UK’s tax competitiveness. However, the impact on SMEs will depend on sector, location and customer base.

Landlords banned from holding deposits in their own accounts

Landlords in England and Wales will no longer be allowed to hold tenants’ deposits in their own bank accounts under rental sector reforms. Housing Minister Matthew Pennycook said landlords must use custodial schemes managed by third-party deposit holders. The government says this will improve tenant protection and address the imbalance between landlords and renters.

For landlords, agents and property service firms, the change means a practical adjustment to how deposits are handled. It may reduce disputes and improve transparency, but it also removes some flexibility from landlords who previously used insured schemes.

Industry & Investment

City of London holds its ground after Brexit

The City of London has avoided the mass jobs exodus some feared after Brexit. Finance and insurance jobs in London are up 18.7% in the decade to March, and the UK remains Europe’s top destination for foreign direct investment in financial services. That resilience is significant given the disruption caused by Brexit and the rise of competing European financial centres.

Even so, concerns remain that the UK has missed opportunities. The EU is advancing reforms to strengthen its own financial industry, and UK political leaders may be distracted by domestic pressures. The City has held its ground, but the next challenge is staying competitive.

UK competitiveness ranking falls

The UK has fallen to 24th in IMD Business School’s latest World Competitiveness Ranking, down from the top 20 before Brexit. Professor Arturo Bris said Brexit had led to reduced market exposure and foreign investment. The report also highlighted a current account deficit of -3.13% of GDP and low inward investment flows, with the UK ranked 66th on that measure.

For SMEs, competitiveness is not an abstract issue. Lower investment can mean weaker productivity, fewer opportunities and slower economic growth. It may also affect export prospects and confidence among international customers and suppliers.

Sterling faces pressure, says Goldman Sachs

Goldman Sachs warned that sterling is now the most overvalued G10 currency. Its analysts said Brexit may have reduced the pound’s fair value by around 6%, and that the currency has recovered strongly in real terms. Sterling remains about 10% below its pre-Brexit referendum level, but Goldman argues much of the discount has now been erased.

The currency faces several headwinds: a relatively dovish Bank of England, a stronger dollar, political uncertainty and concerns over the UK’s fiscal position. A weaker pound can raise import costs, but it may help exporters. For many SMEs, the main concern is volatility.

Employment & Labour

Private sector wage growth slows as vacancies fall

Private sector regular wage growth, excluding bonuses, slowed to 2.9% in the three months to April, down from 3.1% in the three months to March. Overall regular pay growth across the economy held at 3.4%, stronger than the 3.2% expected. Vacancies fell by 19,000 to 707,000 in the three months to May, while unemployment edged down to 4.9%.

Businesses remain cautious because employment costs have risen. Many are freezing hiring, and some are planning redundancies this year. For SMEs, slower wage growth may ease some pressure, but lower vacancies and hiring caution point to weaker confidence.

Young adults become more pessimistic

Consumer confidence among 16 to 29-year-olds has fallen to its lowest level in two years, according to GfK. The survey showed an 11-point drop among young adults, taking the measure to -2. This sits awkwardly alongside stronger retail sales, suggesting that short-term spending and longer-term confidence may be moving in different directions.

Younger consumers are often sensitive to job insecurity, housing costs and debt pressures. If confidence remains weak, spending may become more cautious in the months ahead.

Global Market Summary

Markets ended the week in a more cautious mood after a strong run. The main drivers were the US-Iran peace deal, the reopening of the Strait of Hormuz, a hawkish shift from the Federal Reserve, a stronger dollar, renewed Middle East concerns and a sharp selloff in IT services after Accenture’s profit warning.

European equities pulled back after five days of gains. The STOXX Europe 600 fell 0.3% to 637.51, with miners, energy and technology under pressure. Accenture’s guidance cut hit confidence in IT services and software, dragging down names including Capgemini, SAP, Sage and Wolters Kluwer. Airlines performed better as lower oil prices helped sentiment.

The FTSE 100 was under pressure, with the cash index shown at 10,431.5 in the morning briefing after opening marginally lower. The FTSE 250 had fallen 0.7% intraday. The DAX futures level was 25,089.0 and CAC 40 futures were at 8,478.2, while Euro Stoxx futures were indicated around 0.3% to 0.5% lower in pre-market trading.

In the US, cash markets are closed today for the Juneteenth federal holiday. On Thursday, the S&P 500 rose 1.1%, helped by optimism that the US-Iran deal could ease inflation pressure by reopening Hormuz. S&P 500 futures were at 7,557.75 and down around 0.2% this morning. Dow Jones futures stood at 51,991.0, while Nasdaq 100 futures were at 30,625.5. Semiconductors were strong after Intel rallied on news of a partnership with Apple, but IT services were weak after Accenture fell sharply.

Asian markets were more cautious overnight. The Nikkei 225 closed up 0.3% at 71,250 and Nikkei futures were at 71,620.0. The Hang Seng futures level was 23,846.0, although Hong Kong cash markets were closed. The wider MSCI Asia Pacific Index fell as much as 1.3%, with Indian IT stocks joining the global Accenture-led selloff. Australia’s ASX 200 fell 0.9% after BHP flagged a $2.3 billion writedown, while South Korea’s Kospi reversed from a record intraday high to close slightly lower.

Currencies were dominated by dollar strength. The dollar reached a one-year high after the Federal Reserve’s first meeting under Kevin Warsh delivered a hawkish surprise. Nine of 19 Fed officials now expect at least one rate rise by year-end. Sterling fell around 0.5% on Thursday, with GBP/USD trading around the 1.28 to 1.29 area in the market briefing. GBP/EUR was described as relatively stable, with both sterling and the euro under pressure against the dollar.

Oil remained volatile. Brent crude recovered back above $80 a barrel on Friday morning after falling roughly 8% across the week. WTI for August was around $77 a barrel. Prices had dropped as the Strait of Hormuz reopened, but concerns returned after US-Iran nuclear talks in Switzerland were called off and tanker traffic thinned. Goldman Sachs estimated Hormuz flows may recover to only around 70% of pre-war levels.

Gold was under pressure from the stronger dollar and higher US rate expectations. The metal fell around 1.1% in the latest session and was trading around $4,210 an ounce. Goldman Sachs cut its year-end gold target by $500 to $4,900 an ounce, citing the removal of expected Fed rate cuts for 2026. Base metals were also weaker as the hawkish Fed backdrop weighed on miners.

For UK SMEs, the market message is mixed. Lower oil prices may ease fuel and transport costs, but the dollar’s strength can raise import costs. Political uncertainty, higher UK borrowing and a still-cautious Bank of England mean financing and currency risk remain important issues for businesses that buy, sell or borrow on credit.

Insolvency Watch

Administrations (3)

• BMB LOGISTICS LTD
• LX PROPERTY LTD
• VIKING PLYWOOD & TIMBER LTD

Liquidations (7)

• 3 H MOTORS LIMITED
• ATTINGTON LTD
• HERE TOMORROW ADVISORY LTD
• PPNL SPV 7 LIMITED
• PPNL SPV B36 – 1 LIMITED
• PPNL SPV B36 LIMITED
• WILD ABOUT BIRDS LIMITED

Winding-up petitions (90)

• A CARTER AGRICULTURAL SERVICES LIMITED
• AA LIGHTING LIMITED
• AMS FACILITIES (SOUTH WEST) LTD
• APEX TRADING MCR LTD
• ARON PROJECTS LIMITED
• ATOM FACILITIES MANAGEMENT LTD
• ATOM FIT OUT CONSTRUCTION & DESIGN LTD
• ATOM FOOD & DRINK LTD
• BLACKDG LIMITED
• BLATCH & GREEN LIMITED
• BOLTAEV SERVICES LTD
• CASTLE HOMES RUISLIP LIMITED
• CHATHA NORTH LIMITED
• CJ NEW HOMES 2 LIMITED
• CLC FIXING LTD
• CM SECURITY SERVICES LIMITED
• CMAN PROPERTIES INVESTMENT LTD
• COLAS PARTNERS AND SOLUTIONS LTD
• COMBINE HEALTH LTD
• CSKN MEDICAL LIMITED
• CUMBRIA PARK LTD
• DIAMOND CONSTRUCTIONS LTD
• DNP HOSPITALITY LTD
• E.D.W. CONTROLS LTD.
• EDGE CONSTRUCTION GROUP LTD
• EKAS ASSET MANAGEMENT LIMITED
• FISHERS CLEANING SERVICES LIMITED
• FMP ( WEST MIDLANDS ) LIMITED
• FTM BUSINESS LTD
• GLG SOUTHWEST LIMITED
• GLOBAL TICKET EVENTS LTD
• GLOBE SAMPFORD LTD
• GMI SUBCONTRACTORS AND PARTNERS LIMITED
• GTG CIVILS LIMITED
• HALAL KEBABISH LIMITED
• HIGHWAY CIVIL ENGINEERING LTD
• HYLTON BELSAY LTD
• IF MANAGEMENT CO LTD
• INSIGHT CONSTRUCTION CONSULTING LIMITED
• KANGAROO PAYE LTD
• KOPEK SECURITY AND FACILITIES LTD
• LOCOMOTIVATION LTD.
• LOYAL AUTOMOTIVE LIMITED
• MAS CONSTRUCTION PROJECTS LTD
• MILK VISUAL EFFECTS LIMITED
• MODULAR BUILDINGS AND CABINS LIMITED
• MULTILINE PERFUMES & COSMETICS LIMITED
• NISSI N NISSI LIMITED
• OMORFO LIMITED
• OODDLES KITCHEN LTD
• OPTIMUS COLLECTIVE LTD
• PBT SOCIAL CARE LTD
• PENNSTATE PIPELINE SOLUTIONS LTD
• PRIORY CAPITAL INVESTMENT LTD
• PURITY CARE LTD
• RANEES STORE LTD
• READY LAW LTD
• REALLY EPIC DOG LTD
• REFORM PAYWORKS LIMITED
• RIDGE VIEW SUPPORTED LIVING LIMITED
• RIVER ADVENTURES LIMITED
• RLSA LTD
• ROOF CARE COMPANY (INDUSTRIAL) LIMITED
• ROUX CONSULTING LIMITED
• RUNNING HARE RESTAURANTS LIMITED
• S. BAYLISS ROOFING & CLADDING LTD
• SEMPEX INTERNATIONAL LIMITED
• SHAPE HOUSE LTD
• SM VENUES LTD
• SOLID HEALTHCARE LTD
• SOUTH ENGINEERING (WISBECH) LIMITED
• SOVEREIGN STRATEGY LIMITED
• STEVENAGE CONFERENCE CENTRE LIMITED
• STREAMING TANK LIMITED
• SUPPLY CHAIN NETWORK LTD
• THE LIGHT MSP LIMITED
• THE RZL COMPANY LIMITED
• THINK IT SIMPLE LTD
• TRADE RETAIL PARTNERS LIMITED
• TURBOCENTRE CAR SALES LIMITED
• UMBRELLAPHANT LTD
• VALEMEX LIMITED
• VEMI VENTURES LIMITED
• VORTEX AVIATION GROUP LTD
• WALNUT ASSOCIATES LIMITED
• WIGHT PUBS LABOUR LIMITED
• WILKINSON PROFESSIONALS LIMITED
• WTF LIMITED
• YORKSHIRE EXHIBITION SOLUTIONS LTD
• YOUR LEGAL SERVICES GROUP LIMITED

When costs rise, cashflow discipline matters more

This is the sort of trading environment where good sales figures can hide a cashflow problem. A business may be busy, but if supplier bills, wages, tax, rent and energy costs are all rising, every late-paying customer creates extra strain.

CPA helps businesses protect cashflow through CreditCare credit reports, debtor monitoring and overdue account recovery. The aim is to act early, recover payment professionally and preserve the customer relationship wherever possible.

For support, call 020 8846 0000 during business hours, Monday to Friday, 9am to 5pm, email PaidQuick@cpa.co.uk, or 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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