UK Business News Today – 19 March 2026 | Economy, Markets & Insolvencies

Rising energy prices, geopolitical tension and tightening financial conditions are reshaping the outlook for UK businesses. Oil and gas prices have surged following attacks on key infrastructure in the Middle East, pushing inflation risks higher and reducing the likelihood of interest rate cuts. At the same time, wage growth is slowing, access to finance remains constrained for SMEs, and insolvency pressures continue to build—particularly in the hospitality sector. Together, these trends point to increasing strain on cashflow and payment behaviour across the SME economy.

James Salmon, Operations Director.

Key Developments

• Energy prices surge as Middle East conflict disrupts global supply
• Interest rate cuts now unlikely as inflation risks rise again
• SME access to finance under regulatory review
• Wage growth slows while labour market remains weak
• Hospitality sector continues to lead UK insolvencies

SME & Business Environment

FCA reviews SME access to finance

The Financial Conduct Authority has launched a review into whether regulation is restricting access to finance for SMEs and start-ups. The review will examine borrowing costs, lending risks and availability across debt, equity and alternative finance markets, following concerns that UK businesses rely less on external funding than those in comparable economies.

Why it matters: Limited access to funding increases reliance on supplier credit, raising late payment risk and pressure on SME cashflow.

Brewer cuts hours and raises prices amid rising costs

Shepherd Neame has reduced pub opening hours and increased prices as it faces rising labour costs and higher taxes. The hospitality sector continues to report significant cost pressures, particularly ahead of further increases in employment-related expenses.

Why it matters: Cost pressures reduce margins and can lead to delayed supplier payments and tighter cashflow management.

EU parcel tax unlikely to stem cheap imports

An EU proposal to tax small parcels is unlikely to significantly reduce the influx of low-cost goods from China, according to customs officials, due to enforcement challenges.

Why it matters: Increased competition from low-cost imports can squeeze margins and impact the ability of SMEs to maintain stable payment cycles.

Economy & Policy

Energy prices surge after Middle East strikes

Oil and gas prices have jumped sharply after attacks on major energy infrastructure in Iran and Qatar. Brent crude has surged above $115 per barrel, while European gas prices rose by as much as 35%, raising fears of prolonged supply disruption.

Why it matters: Higher energy costs increase operating expenses for SMEs and can trigger widespread payment delays across supply chains.

Bank of England expected to hold rates

The Bank of England is now widely expected to keep interest rates at 3.75% as rising energy costs push inflation risks higher. Earlier expectations of rate cuts have been largely abandoned, with some economists warning rates could remain higher for longer.

Why it matters: Higher borrowing costs reduce liquidity for businesses and customers, increasing credit risk and slowing payments.

UK wage growth slows as labour market weakens

Wage growth has slowed to 3.8%, its lowest rate in over five years, while unemployment remains at 5.2%. Although employment has risen slightly, the labour market is showing signs of weakening.

Why it matters: Slower wage growth can reduce consumer spending, impacting SME revenues and increasing payment delays.

UK unemployment steady but pressures remain

Employment rose by 84,000 while inactivity declined, but the claimant count increased and wage growth slowed. The labour market remains fragile despite some positive signals.

Why it matters: A soft labour market can weaken demand and increase financial strain on SME customers.

US Federal Reserve holds interest rates

The Federal Reserve kept its benchmark rate unchanged, citing inflation concerns and geopolitical risks. Policymakers signalled caution, reducing expectations of near-term rate cuts.

Wealth tax proposals re-emerge

Green Party leader Zack Polanski has proposed a wealth tax and changes to capital gains tax to raise additional revenue. While not government policy, the proposals add to the broader debate on taxation.

Expats warned over tax liabilities

UK expats returning from overseas are being warned about unexpected capital gains tax bills, with some facing liabilities of up to £5m depending on timing.

HMRC urges National Insurance awareness

HMRC has encouraged individuals to use its app to access National Insurance details more easily, highlighting the importance of accurate records.

Industry & Investment

UK doubles tariffs to protect steel industry

The Government has doubled tariffs on imported steel as part of a £2.5bn strategy to boost domestic production and reduce reliance on foreign supply.

Why it matters: Protectionist measures may increase input costs for SMEs reliant on imported materials.

Energy firm warns of investment slowdown

Ithaca Energy reported losses and warned that extended windfall taxes and regulatory uncertainty are discouraging investment in the North Sea, with no new wells drilled last year.

Unilever and Kraft Heinz explored merger

Talks between Unilever and Kraft Heinz over combining food businesses have ended without a deal, but highlight ongoing consolidation pressures in the sector.

Why it matters: Industry consolidation can shift supply chains and alter payment terms for SME suppliers.

Employment & Labour

Firms fined for underpaying workers

Nearly 400 firms have been named for underpaying staff, with £7.3m repaid and £12.6m in fines issued. The enforcement highlights continued scrutiny of wage compliance.

Why it matters: Compliance failures can lead to sudden financial liabilities, affecting business stability and payment reliability.

SME & Insolvency Trends

Hospitality sector leads insolvency rates

Restaurants remain the most affected sector for liquidations, followed by consultancy and construction. Rising costs, tax changes and wage increases are driving closures across the sector.

Why it matters: Rising insolvencies increase the risk of bad debt and unpaid invoices across supply chains.

Global Market Summary

Global markets sold off sharply as escalating tensions in the Middle East triggered a surge in oil and gas prices, raising inflation concerns and dampening expectations of interest rate cuts.

In the UK, the FTSE 100 closed down 0.9% at 10,305.29 and is now trading around 10,131.15. European markets followed suit, with the STOXX Europe 600 down 0.8% at 587.52, the DAX falling 1.0% to 23,008.55, and the CAC 40 down 0.2% to 7,840.90. Losses were driven by energy price shocks and declining mining and consumer stocks.

US markets also weakened, with the S&P 500 falling 1.4% to 6,624.70, the Dow Jones down 1.6% to 46,225.15 and the Nasdaq 100 down 1.4% to 24,425.09. Markets reacted to stronger-than-expected inflation data and the Federal Reserve holding interest rates steady while warning of an “energy shock”.

Asian markets extended the downturn overnight. Japan’s Nikkei 225 dropped 3.4% to 52,990, while Hong Kong’s Hang Seng fell 2.0% to 25,500.58. Chinese and Korean indices also declined as investors reacted to rising oil prices and geopolitical risk.

Currency markets saw sterling weaken, with GBP/USD at 1.3264 and GBP/EUR at 1.1570, reflecting a stronger dollar amid global uncertainty.

In commodities, Brent crude surged to $115.38 per barrel and WTI crude reached $97.18, driven by supply disruption fears. European gas prices also spiked sharply. Gold fell to $4,710.20 as rising yields and reduced expectations of rate cuts weakened demand for safe-haven assets.

Overall, markets are being driven by geopolitical risk, energy price volatility and shifting expectations around central bank policy.

Insolvency Watch

Administrations (39)

3 CRANWOOD STREET PROPERTY LIMITED
60 ENNISMORE GARDENS LIMITED
76 FAIRHAZEL GARDENS LIMITED
8 ALBERT CT LIMITED
ABBOTS TERRACE PROPERTY LIMITED
AFERIAN PLC
C CODA RESIDENCES LIMITED
CLOCK BIO LIMITED
COMPACT ORBITAL GEARS LIMITED
D CODA RESIDENCES LIMITED
DRAYTON GARDENS (FLAT 4) LIMITED
E CODA RESIDENCES LIMITED
EAGLE SPECIALIST VEHICLES LIMITED
ELVASTON PLACE PROPERTY LIMITED
FALCON GATE PROPERTY LIMITED
FOR AISHA LIMITED
GOODGE STREET (WS) LIMITED
GRAYS TRANSPORT (DERBYSHIRE) LIMITED
GREEN PARK (GARAGES) LIMITED
HH NO. 1 LIMITED
HH NO. 1 NEW HOLDINGS LIMITED
HH NO.1 HOLDINGS LIMITED
HH NO. 5 LIMITED
HIVE ENERGY LIMITED
HOLBORN STUDIOS LIMITED
HSG FACILITIES MANAGEMENT LIMITED
IVERNA COURT PROPERTY LIMITED
MADDOX STREET (PS) LIMITED
MASSEY’S FOLLY DEVELOPMENT LIMITED
MAUNSEL STREET PROPERTY LIMITED
MAYFAIR (GS) LIMITED
MEIF II CP HOLDINGS 3 LIMITED
MOUNT STREET MAYFAIR LIMITED
NATIONAL CAR PARKS LIMITED
NCP EMPIRE NO. 2 LIMITED
PORTMAN MANSIONS (CS) LIMITED
QG PLACE (FLAT A) LIMITED
SIMPLY MARVELLOUS PROPERTIES MANAGEMENT LIMITED
ST LAWRENCE TERRACE PROPERTY LIMITED
THE LUMINARIES NINE ELMS LIMITED
THE WATER GARDENS (HP) LIMITED

Liquidations (54)

A & R ASSOCIATES LIMITED
AARYAN ENTERPRISE LTD
ABODE UK (NATIONWIDE) LIMITED
APOGEE IDEAS LTD
BCUK NORTHERN LIMITED
BEAM UK BEDFORD PLOT 4 GP LLP
BEAM UK BEDFORD PLOT 4 NOMINEE LTD
BLAZEBY MARITIME CONSULTANTS LTD
BRIERLEY IP LIMITED
CELESTIAL LABS LTD
CORPORATE REAL ESTATE FINANCE LTD
CPI1 LTD
DR SAURABH ADLAKHA LTD
FACIT UK LIMITED
FENN HOLIDAYS LIMITED
FIELDWORKS MARKETING LIMITED
FIR TREE LODGE LIMITED
G.O. FAIRBAIRN LIMITED
GET HANDSON LIMITED
GH NEWMARCH LIMITED
GOLDSEAL CARS LIMITED
GREENSLADE CONSULTING LTD
HARBURN HOBBIES LIMITED
HIGGINS FAIRBAIRN ADVISORY LLP
ILLYRIA CONSULTING LIMITED
INSPiRE CREDIT MANAGEMENT LIMITED
INTEC RECRUITMENT SERVICES LIMITED
IPW54 LIMITED
JJW TRADING LIMITED
L&P PROPERTY & INVESTMENTS LTD
LARMAC (PROJECTS) ME LIMITED
LEE PER DEVELOPMENTS LIMITED
LILY HOLDINGS LIMITED
LUMB FARM LIMITED
MANU PATEL LIMITED
MAYTECH HOLDINGS LIMITED
MEDED UK LIMITED
MEGAN APPLIANCES LIMITED
MEDICAL CARE LIMITED
MORLEY ANAESTHESIA AND RESEARCH LIMITED
NDW LIMITED
OPEN CONSULTANTS LTD
OXFORD FISSION COMMUNITY INTEREST COMPANY
PORT MERIDIAN ENERGY LIMITED
QS MANAGEMENT LIMITED
SURRENDELL SURGERY LIMITED
SYLVAN (FREEHOLD) LIMITED
TAPAS CENTRO LIMITED
TFC CONSULTING LIMITED
THE SEYMOUR HOME LIMITED
VECTIS FINANCIAL SERVICES LIMITED
WE & CP PEARSON UNLIMITED
WOOD STREET MLC LIMITED

Winding-up Petitions (6)

AIRE PARTNERS LLP
ALEXANDER JAMES DEVELOPMENTS LIMITED
FAIRMILE ALINGTON ROAD LIMITED
G & G WORLDWIDE LTD
HSP BUILDER LIMITED
PREMIER DEVELOPMENT SERVICES LIMITED

What this means for your business

Rising energy costs, higher borrowing rates and increasing insolvencies all point to a more challenging trading environment ahead. Businesses selling on credit are likely to see increased delays in payments as customers face growing financial pressure.

CPA can help you stay protected with:

• CreditCare reports to assess customer risk
• Ongoing debtor monitoring for early warning signs
• Fast, professional recovery of overdue invoices

Call 020 8846 0000 to find out how we can support your cashflow.

Just call 020 8846 0000 (business hours) 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.