UK Business News Today – 20 March 2026 | Economy, Markets & Insolvencies

Happy Friday!

Global markets and UK businesses head into the weekend under growing pressure. The escalation in the Middle East is driving energy costs higher, reshaping interest rate expectations, and adding fresh strain to already fragile business confidence.

At the same time, hiring is weakening, insolvencies remain elevated, and SME builders and entrepreneurs are pulling back. It’s a clear picture: costs are rising, confidence is falling, and cashflow risk is building.

James Salmon, Operations Director.

Key Developments

• Oil surges above $100 as conflict disrupts supply
• Rate cuts off the table as BOE signals hikes instead
• Payrolls fall 49K as UK labour market weakens
• SME builders and entrepreneurs pull back sharply
• Insolvency pressure continues across construction, retail and services

SME & ECONOMIC STORIES

Energy shock drives volatility as oil swings above $100

Brent crude briefly surged above $119 per barrel before easing back toward $107–109 as geopolitical tensions escalated across the Middle East. Attacks on energy infrastructure and threats to the Strait of Hormuz — a key global supply route — continue to drive volatility, with some forecasts warning oil could spike as high as $180 if disruption persists.

Why it matters: Rising fuel and energy costs feed directly into SME overheads and reduce customers’ ability to pay on time.

Bank of England shifts stance as rate hike expectations return

The Bank of England held rates at 3.75% but warned inflation could rise to 3.5% in the near term, with some economists suggesting it could reach 5% if energy prices remain elevated. Markets are now pricing in up to three rate hikes this year, with expectations for the base rate to reach 4.5% by year-end. Mortgage rates have already jumped, with two-year fixes rising from 4.83% to 5.32% in March.

Why it matters: Higher borrowing costs increase pressure on both SMEs and their customers, raising the risk of delayed payments.

UK borrowing rises as debt interest hits record £13bn

Government borrowing came in at £14.3 billion in February, driven by debt interest payments of £13 billion — the highest ever for the month. With energy costs rising further, there are growing concerns that the government’s fiscal targets could be derailed.

Why it matters: Higher public borrowing increases the likelihood of future tax rises or reduced spending, both of which impact SME demand.

UK raises steel tariffs to 50% to protect industry

The Government has doubled tariffs on imported steel from 25% to 50% and cut import quotas by 60% to shield domestic producers from low-cost competition. The move follows last year’s intervention to prevent the collapse of British Steel.

Why it matters: Protection measures may increase material costs for SMEs, squeezing margins in construction and manufacturing.

Payrolls fall 49K as labour market weakens

Payrolls fell by 49,000 in February while vacancies dropped to 721,000, with unemployment expected to rise to 5.3% this year and potentially 5.5% by the summer. Wage growth has slowed to 3.8%, down from expectations of 4%, signalling a cooling labour market.

Why it matters: Slowing employment and wage growth reduce customer spending power and increase the likelihood of late payments.

Retail employment drops to record low of 2.81 million

Retail jobs fell by 68,000 year-on-year to 2.81 million, the lowest level on record. Youth employment is declining even faster, with warnings that automation and AI could accelerate job losses further.

Why it matters: Job losses in consumer-facing sectors reduce demand and increase financial stress across the customer base.

SME builders pull back as 70% halt new projects

Around 70% of SME housebuilders say they are delaying new developments, while 25% are cutting land purchases. London housebuilding is forecast to fall to just 4,550 homes by 2028, highlighting a sharp slowdown in activity.

Why it matters: Reduced construction activity signals wider economic slowdown and fewer opportunities across SME supply chains.

Entrepreneurs lose confidence as 20% consider leaving UK

A survey found 20% of UK entrepreneurs are considering relocating abroad, with 86% saying government policy does not support their needs. Around 75% report difficulty raising investment, while two-thirds face hiring challenges.

Why it matters: Falling confidence reduces business formation, investment and overall economic momentum.

Unilever plans strategic shift with potential food division sale

Unilever is in talks to sell its food division to US spice manufacturer McCormick, potentially worth tens of billions, as it pivots toward higher-margin beauty and personal care brands. The move could see two-thirds of revenue generated from these segments in future.

Why it matters: Major corporate restructures can disrupt supply chains and payment cycles for SME suppliers.

Shell LNG fire highlights ongoing supply risk

A fire at Shell’s Pearl GTL facility in Qatar, following regional attacks, underlines continued vulnerability in global energy infrastructure. The site is one of the world’s largest gas-to-liquids plants.

Why it matters: Ongoing supply risks keep energy prices elevated, feeding into business costs.

US banks to see capital requirements cut by up to 7.8%

The Federal Reserve plans to reduce capital requirements by 4.8% for major banks and up to 7.8% for smaller institutions. The move marks a shift away from post-2008 regulatory tightening.

Why it matters: Easier lending conditions may support credit availability but increase longer-term financial risk.

Luxury London property sales fall 31% as supply rises

Prime London property sales dropped 31% year-on-year in February, with prices down 10%. At the same time, listings above £5 million have risen by 10%, adding further downward pressure.

Why it matters: Weakness in high-value property markets can signal broader economic slowdown and reduced liquidity.

BOE maintains slow pace on private credit risk review

The Bank of England confirmed it will not accelerate its private credit stress testing, with results not expected until early 2027 despite concerns over systemic risk.

Why it matters: Limited visibility on financial risks adds uncertainty for businesses reliant on credit markets.

Market Snapshot

Global markets remain highly sensitive to the energy shock and shifting central bank outlook.

In the UK, the FTSE 100 fell 2.35% to 10,063.50, briefly dropping below 10,000 during trading — its sharpest fall in over two weeks. European markets followed, with the STOXX 600 down 2.1%, while the CAC 40 lost 1.7% and Germany’s DAX also declined heavily.

In the US, markets were more resilient but still weaker. The S&P 500 closed down 0.3% at 6,606.49, the Nasdaq 100 fell 0.3% to 22,090.69, and the Dow Jones declined 0.4% to 46,021.43.

Asian markets extended losses overnight. The Hang Seng fell 0.9% to 25,277.32, while the Shanghai Composite dropped 1.2% to 3,957.05, its lowest level since December.

This morning, markets are attempting a modest rebound, with European equities up around 0.9% and US futures pointing 0.1–0.2% higher.

Oil remains the dominant driver. Brent crude is trading around $107–109 per barrel, up more than 5% this week after briefly spiking above $119. Some forecasts suggest prices could rise to $180 if disruption continues into April.

Gold has moved in the opposite direction, falling around 7% this week — its worst performance in six years — as expectations for interest rate cuts fade.

Currency markets reflect the shift in policy expectations. Sterling has strengthened to around 1.34 against the US dollar and 1.16 against the euro, while the yen has firmed to around 159 per dollar.

Overall sentiment remains fragile, with markets balancing geopolitical risk, inflation pressures and a clear pivot toward higher interest rates.

Insolvencies

Appointments of Administrators

• EMBANKMENT (TS) LIMITED

Appointments of Liquidators

• 3ICE LTD
• BANKES CONTRACTS LIMITED
• BENRIDGE DEVELOPMENTS LIMITED
• BOS EYECARE LIMITED
• CASTLE JEWELLERS LTD.
• CASTLEPARK CONSULTING LIMITED
• CARGO CONFERENCE (ICIC) LIMITED
• CLKB INTERIM MANAGEMENT LIMITED
• HAMLIN ESTATES LIMITED
• J.D. MAWBY & SONS LIMITED
• KCI ENERGY SERVICES LIMITED
• MICROSTAR CONTROL SYSTEMS LIMITED
• OIL AND GAS MANAGEMENT CONSULTING LIMITED
• P.E. BINNS LIMITED
• PAULA HEANEY IMPROVEMENT SERVICES LTD
• QTX CONSULTANTS LTD
• QWERTY CAT LTD
• RAMCRETE LIMITED
• ROBERT MACKENZIE LIMITED
• SILVER FERN LIMITED

Petitions to Wind Up

• 1ST CARS LIMITED
• 1ST PAY LIMITED
• A.M. ENFORCEMENT LTD
• ADVANCED WASTEWATER & DRAINAGE LIMITED
• AIT UMBRELLA LIMITED
• ALPHACARE NW DSS LTD
• AM INDUSTRIAL LIMITED
• AMPHION CONSULTING LIMITED
• ARTIFICIAL GRASS NE LIMITED
• BEAUTY HOUR LTD
• BELLJAR BARS LTD
• BREAKTHROUGH MH LIMITED
• CENTRAL FORTITUDO LIMITED
• CHOICE SHENFIELD LTD
• CHURCH SUPERSTORE LIMITED
• COMPACTGTL LIMITED
• CURZON CLAIMS LIMITED
• DIVISION PUBS LTD
• DOVELEYS GARDEN CENTRE LIMITED
• DUTTOFORD BUSINESS SOLUTIONS LTD
• EAST COAST EXTERIORS LTD.
• ENDEAVOUR WHITBY LIMITED
• E&Z SERVICES LTD
• EXMOOR SKIP HIRE LIMITED
• FUTURE PAYROLL LTD
• GAS PRODUCTION HIRE LIMITED
• G D WINDOWS LIMITED
• GGSD LTD
• GO2GAS SOLUTIONS LIMITED
• GRANTHAM PROJECTS LIMITED
• HBELL SOLUTIONS LIMITED
• HEXKEY LIMITED
• HUGHES HAULAGE LIMITED
• INTENSE FIRE PROTECTION LTD
• JACKSON B LTD
• JARCON CONCRETE FLOORING LTD
• JD DELIVERY NOTTS LTD
• JPT CARPENTRY & BUILDERS LTD
• K & D MINI MARKET LIMITED
• KEY ESG LIMITED
• KNIGHTLOW INVESTMENTS LTD
• LESSORE SOLUTIONS LIMITED
• LEXAN DEVELOPMENT FOR CONSTRUCTION LTD
• LIGHT CORPORATION ARCHITECTURAL LTD
• LINK MEDICAL STAFFING SOLUTIONS LTD
• LONDON WINGS CORPORATE LTD
• LUXURY FOR LIVING LTD
• MAPS BRICKWORK LTD
• MCDONALDANDSONSLANDSCAPE LTD
• MEC FIRE SERVICES LTD
• M J BARRETT GROUP LIMITED
• M.J. BARRETT CONSTRUCTIONS (STAFFS.) LIMITED
• M.J. BARRETT (DEVELOPMENTS) LIMITED
• NEG THE TREATY SUB 3 LIMITED
• O AND S CATERING LTD
• ONPOINT TRAC LTD
• PARKER BEAUMONT LTD
• PLANVAL LIMITED
• PNEUMOWAVE LIMITED
• PREMIUM CBD LIMITED
• PURE SKIN INTERNATIONAL LIMITED
• QUANTUMFLEX LIMITED
• REDWOOD TRUSTEES LTD
• RIVER INNS LIMITED
• R P COMMERCIALS LIMITED
• S. F. COLLICOTT CONSULTING LIMITED
• SARAC HOTELS LIMITED
• SITE SPECIALIST SERVICES DESIGN AND BUILD LIMITED
• SRH ALLEN LTD
• STEELCAST LTD
• ST MARKS CARE HOME LIMITED
• SYSTEMSHARE LIMITED
• THE EAST INDIA COMPANY COLLECTIONS LIMITED
• THE HUMAN CATALYSTS LTD
• UK TRUCK BODIES LTD
• VGM CONSTRUCTION LTD
• VICEROY (BOLLINGTON) RESTAURANT LTD
• WCM GROUP LIMITED
• WHITE ROSE GARAGES ONE LIMITED

What CPA can do for you

With rising costs, weaker demand and increasing insolvency risk, protecting your cashflow has never been more important.

CPA members benefit from:

• Credit checking and monitoring to spot risk early
• Debt recovery support to keep cash moving
• Practical tools to improve payment behaviour

In uncertain times, the businesses that stay on top of credit risk are the ones that stay in control.

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.