UK Business News Today: 21 July 2026 | Economy, Markets & Insolvencies

In the first CPA Daily Business News briefing since Wednesday 15 July, the UK business environment is being reshaped by Andy Burnham’s arrival as Prime Minister and uncertainty over his approach to tax, borrowing, public spending and state intervention. Small firms remain under severe pressure from weak growth expectations, employment costs, administrative burdens and deteriorating owner wellbeing, while higher oil and gas prices, restricted credit conditions and the prospect of interest rates staying higher for longer add further cashflow risk. Against this difficult backdrop, stronger job advertising, resilient technology investment and increased British Business Bank support provide some grounds for optimism.

James Salmon, Operations Director.

Key Developments

• Three-quarters of surveyed business leaders fear further tax rises under Prime Minister Andy Burnham.
• Only 16% of small firms expect to grow during the next year, while nearly 30% expect to shrink, sell or close.
• The IMF has warned against higher state spending and premature interest-rate cuts as energy-driven inflation risks persist.
• Small business owners are spending an average of 11 hours each week on administration, while burnout has reached a three-year high.
• Global markets remain caught between an AI-led technology rebound and serious energy and inflation risks linked to the US–Iran conflict.

SME & Business Environment

Small businesses face bleak growth outlook

Growth expectations among Britain’s SMEs have fallen to their lowest level in more than a decade, according to the Federation of Small Businesses. Only 16% of firms expect to grow during the next year, while nearly 30% believe they will shrink, sell or close. Economic weakness, taxation and labour costs were identified as major obstacles by the 1,113 business owners surveyed.

Why it matters: Falling confidence can lead businesses to delay investment, reduce stock orders and take longer to pay suppliers, increasing credit risk throughout supply chains.

Firms fear tax hikes under Burnham

A survey of 200 UK business leaders by advisory firm DJH found that 75% fear further tax rises under the new Prime Minister. Employers also cited higher National Insurance contributions, expensive energy, skills shortages and weak growth as major pressures. Some manufacturers reportedly said they were considering moving operations to the US.

Why it matters: Uncertainty over future taxes can restrict hiring and investment while encouraging firms to retain cash rather than settle supplier accounts promptly.

Tax system accused of stifling entrepreneurship

Praveen Gupta, UK head of tax at Azets, has argued that Britain’s tax structure provides too little incentive to establish, scale and eventually sell a business. His proposals include increasing the employment allowance to £50,000, revising capital gains tax thresholds and introducing a rolling two-year Employment Tax Roadmap. The aim would be to give employers greater certainty before tax changes take effect.

Why it matters: Predictable tax policy helps businesses forecast payroll, investment and working-capital requirements more accurately.

Burnout hits small business owners

Burnout among UK small business owners has reached a three-year high, according to a Virgin StartUp survey of 1,000 founders. Nearly 49% reported increased burnout and one in three said their mental health had worsened. Only 40% now feel secure about their financial future, down from 51% last year.

Why it matters: Owner fatigue can delay invoicing, weaken credit-control routines and make it harder to address late-paying customers early.

Small firms reveal paperwork burden

Small business owners spend an average of 11 hours a week on administration, according to research by Opinium for American Express. That equates to around six working days each month, compared with only three and a half days devoted to sales and development. More than half of firms said paperwork actively hinders their operations.

Why it matters: Time spent on administration reduces the capacity available for invoicing, payment follow-up, customer checks and growth.

Here’s an idea – why not let CPA chase overdue payments for you? It is the job most hate, but at CPA we would love to take that job off your hands and free you up to focus on what you love.

Retailers call for tax cuts and youth jobs support

The British Retail Consortium has urged the Government to lower business costs and provide greater support for youth employment. Its proposals include business-rates reductions, reversing recent employer National Insurance increases and creating a joint taskforce to help more young people into work. The trade body argues that employment costs and taxation are restricting recruitment and high-street investment.

Employers reluctant to raise wages

Only 22% of employers expect to provide above-inflation pay rises this year, according to a Work Foundation poll. Among small firms, the figure falls to 16%. Repeated periods of weak real-wage growth have left many households with limited financial resilience.

Job adverts surge in June

The UK recorded 1.7 million job adverts in June, up 9% from May and 11% from a year earlier, according to the Recruitment and Employment Confederation. Delivery drivers, entertainers and pest-control officers were among the roles showing notable growth. The REC said firms were acting on delayed hiring plans but warned that policy instability could quickly damage confidence.

Economy & Policy

Burnham looks to “build a new economy”

In his inaugural speech, Andy Burnham promised a new economic and political model, stronger public control of essential services and greater decision-making power for regions. He described the leadership change as a potential “circuit breaker for Britain” and pledged to revitalise industrial communities. He also said he wanted to end rough sleeping, address cost-of-living pressures and restore stability after the UK’s rapid turnover of prime ministers.

Burnham will not rule out raising taxes

The Prime Minister has said he cannot rule out tax increases despite previously backing Labour’s commitment not to raise VAT, income tax or National Insurance. Equalising capital gains tax more closely with income tax has been identified as one possible revenue measure. The OECD has warned that Britain’s tax burden is already too high after tax increases worth almost £70 billion.

The OECD cautioned that another rise in employer National Insurance would damage employment and suggested that VAT reform might cause less economic harm. It also described the Government’s reliance on higher public spending to generate growth as risky.

Burnham hints at 50p tax revival

Andy Burnham has said there is “definitely a case” for reinstating the 50p top rate of income tax. He also highlighted the impact of frozen thresholds, particularly on pensioners being brought into the tax system. Burnham said any cost-of-living measures would be fully funded and indicated that he could use borrowing flexibility while remaining prudent.

A fifth of taxpayers now pay higher rates

HMRC figures show that 22.1% of taxpayers are now subject to higher income-tax rates. Around 7.7 million people pay 40% tax on earnings above £50,270, an increase of one million in two years, while 1.3 million pay the 45% additional rate. Frozen thresholds mean many people have entered higher bands without a comparable improvement in real living standards.

PM could introduce social care tax

Andy Burnham has indicated that he may pursue a dedicated tax to fund adult social care. He has previously proposed a national care service funded partly through a 10% tax on estates, although current estimates suggest a comprehensive service could cost substantially more. Burnham said reform was necessary because families are often forced to sell homes to meet care costs.

IMF warns against any increase in state spending

The IMF has urged the Government to take a cautious approach to Britain’s fiscal position. It recommended reallocating existing resources rather than increasing total spending and warned that heavier taxes on higher earners could weaken incentives and reduce receipts. VAT and property-tax reform were suggested as possible alternatives for addressing short-term gaps.

John Healey appointment signals defence spending focus

Andy Burnham appointed former Defence Secretary John Healey as Chancellor of the Exchequer. The appointment has increased expectations that defence spending will become a larger fiscal priority. Healey has emphasised fiscal control and credibility while supporting plans to increase defence expenditure to 2.68% of GDP by 2030.

Burnham makes cabinet appointments

The Prime Minister’s first cabinet includes John Healey as Chancellor, Ed Miliband as Foreign Secretary, Yvette Cooper as Health Secretary and Lucy Powell as Education Secretary. Wes Streeting becomes Defence Secretary, Angela Rayner returns as Housing Secretary and Jonathan Reynolds remains responsible for business. Shabana Mahmood stays at the Home Office, while Pat McFadden continues at Work and Pensions.

Andy Burnham to scrap digital ID cards

The Government plans to abandon Sir Keir Starmer’s digital ID card proposal while continuing with digital driving licences, OneLogin, Government Wallet and a central government app. Critics argue that the schemes being retained account for much of the expenditure, raising questions over the financial savings. Mandatory digital ID for right-to-work checks had already been dropped.

Growth, Investment & Finance

UK achieves slight GDP growth in May

The economy grew by 0.1% in May after shrinking by 0.1% in April, according to the Office for National Statistics. Services expanded by 0.3%, helped by warmer weather and consumer spending, while construction fell by 0.8%. Economists warned that strength in consumer-facing services may not offset weakness elsewhere.

UK technology investment surge continues

Venture-capital investment remains strong, with artificial-intelligence start-ups driving much of the activity. KPMG has warned that the UK must maintain its appeal to innovators and international investors rather than becoming complacent. Continued momentum could help Britain establish itself as a long-term global technology centre.

British Business Bank profits hit £426 million

The British Business Bank reported pre-tax profit of £426 million for the year to March, up from £144 million. The improvement was attributed to recovering venture valuations and better liquidity across its investments. Its financial capacity has risen to £25.6 billion, allowing annual investment to increase to £2.5 billion, while £9.4 billion of finance was supported for smaller businesses.

London sees takeover activity surge

Overseas buyers, particularly from the US, are increasingly targeting undervalued UK-listed companies. Average takeover premiums have reached 45%, while 154 companies worth £165 billion have received bids since 2023. The volume of takeovers has significantly exceeded new London listings, raising concerns that the market is being hollowed out.

Howden seeks multibillion-pound capital raise

Howden Group is reportedly working with Morgan Stanley to raise several billion pounds in private capital. The proceeds would reduce debt, finance expansion and allow employees to trade shares. Founder David Howden is targeting a valuation of around £50 billion and a possible stock-market listing by 2030.

Energy, Infrastructure & Costs

Burnham plans to fast-track North Sea projects

The Prime Minister is expected to accelerate existing North Sea oil and gas projects without issuing new exploration licences. Higher domestic production could generate additional tax revenue, although legal challenges involving Rosebank and Jackdaw remain unresolved. The identity and policy stance of the new Energy Secretary will influence which projects advance.

Thames Water set for public intervention

Andy Burnham is preparing to place heavily indebted Thames Water into a special administration regime, although mutualisation or another temporary public-control structure may also be considered. Rescue discussions between Ofwat and creditors paused during the transfer of political power. The decision will be closely watched by infrastructure investors and suppliers.

China fumes over British Steel nationalisation

China has criticised the UK’s nationalisation of British Steel, warning that the decision could weaken Chinese companies’ confidence in investing in Britain. Business and Trade Secretary Peter Kyle said intervention was necessary to preserve domestic steelmaking. The UK–China investment treaty permits nationalisation if fair compensation is paid, creating potential for disagreement over valuation.

Employment, Pensions & Living Standards

State pension age could rise to 68 by 2037

The Government plans to bring forward the increase in the state pension age to 68 by 2037, affecting around five million workers currently aged between 49 and 55. Those affected could lose approximately £12,500 in pension income by waiting an additional year. The change is linked to an earlier review but still requires legislation.

Workers under 40 may eventually work until 70

Former pensions minister Steve Webb has warned that younger workers could eventually face a state pension age of 70, even if the triple lock is abolished. The Office for Budget Responsibility already expects the age to reach 69 in the 2070s. Webb acknowledged that a move to 70 would likely be decades away and politically difficult.

International & Trade

Trump and Burnham discuss trade, oil and Hormuz

US President Donald Trump said he had a “very good conversation” with Andy Burnham and expected to meet him in the near future. Their discussion covered UK–US relations, North Sea oil, trade and efforts to remove mines from the Strait of Hormuz. Burnham invited Trump to Manchester and congratulated him on the World Cup tournament.

Sport, Business & Consumer Activity

World Cup delivers commercial success amid controversy

FIFA increased its four-year revenue expectations by around $2 billion after more than 15 million people attended stadiums and fan-festival areas. However, the tournament was also marked by criticism over political intervention, governance and FIFA’s emphasis on revenue and power. Debate has already begun over whether a future tournament could expand to 64 teams.

England finish third as Spain win the World Cup

England ended their tournament with a dramatic 6–4 victory over France in the third-place play-off after losing 2–1 to Argentina in the semi-final. Spain then defeated Argentina 1–0 in the final to become world champions. England therefore did not face Spain during the closing stages, but finished the competition on a positive note.

Global Market Summary

Global markets reopened after the weekend facing two opposing forces: a strong rebound in Asian and technology shares, and a serious escalation in geopolitical and energy risk.

UK and Europe

European markets began Monday on a firmer footing as technology and basic-resources stocks recovered. The STOXX Europe 600’s resources segment rose by as much as 1.5%, with Glencore, Antofagasta and KGHM Polska among the strongest performers.

UK government bonds came under pressure after Andy Burnham signalled flexibility over fiscal rules. Borrowing costs reportedly rose faster than in any other G7 economy as investors assessed the possibility of increased spending and borrowing.

United States

US equities closed lower on Friday as the release of Moonshot’s Kimi K3 artificial-intelligence model triggered renewed concern over the value of heavy AI investment.

• S&P 500: 7,457.69, down around 1%
• Nasdaq 100: 28,592.66, down around 1%
• Dow Jones: 52,146.42
• PHLX Semiconductor Index: down 10% over the week
• VIX volatility index: 18.77, up 25% over the week

By Monday morning, S&P 500 futures had recovered by approximately 0.2%–0.4%, while Nasdaq 100 futures were around 1.2% higher. Investors are now looking to results from Alphabet, Tesla, AMD and Intel for evidence that AI-related expenditure can deliver sustainable returns.

Asia

Asian markets recorded their first broad gain in four sessions as semiconductor shares recovered.

• Nikkei 225: 66,232.19, up 3.3%
• Hang Seng: 25,132.29, broadly unchanged
• Shanghai Composite: 3,864.37, up 1.8%
• CSI 300: 4,739.2, up 3.1%
• Kospi: 6,747.95, up 3.6%

South Korean export growth and extensive Chinese state-backed market support helped improve sentiment. Taiwan’s market also rose sharply, led by major chip manufacturers.

Market drivers

The main forces affecting markets were:

• The continuing US–Iran conflict and severely reduced traffic through the Strait of Hormuz.
• A technology rebound after a heavy AI-related sell-off.
• Chinese state intervention in domestic equity markets.
• Strong South Korean semiconductor exports.
• Concern over the UK Government’s fiscal approach.
• Expectations that the European Central Bank will hold rates while retaining the option of a later increase.
• Tighter lending conditions for euro-area companies, including reduced SME loan availability.

Currencies

Sterling was broadly steady against the dollar at approximately $1.3430, although it dipped to around $1.3427 following Burnham’s fiscal comments. GBP/EUR was approximately €1.176, based on EUR/GBP holding near 0.8500.

Currency volatility remained limited despite geopolitical risk, suggesting that many traders were reluctant to establish large positions before clearer economic and policy signals emerged.

Commodities

Brent crude traded near $88.56 a barrel after briefly rising above $91. WTI crude was approximately $82.72 a barrel. Oil remains significantly exposed to disruption in the Strait of Hormuz, through which a substantial share of global oil and liquefied-natural-gas shipments passes.

Gold rose to approximately $4,060.28 an ounce, up 1.3%, as investors sought defensive assets. Silver increased to around $59.02 an ounce, a rise of 4.6%. European natural-gas prices were close to their highest level since mid-March.

Insolvency Watch

Administrations (15)

• CCOS(UK) LTD
• CENTILI GROUP LTD
• DERWENT PACKAGING LIMITED
• E5 LIVING (GRIMSBY) LIMITED
• EDUTHING LIMITED
• GGS DEVCO LIMITED
• LANFINE LIMITED
• MO-SYS ENGINEERING LIMITED
• NORTHAMPTONSHIRE INDEPENDENT GRAMMAR SCHOOL CHARITY TRUST LIMITED
• OAK ENGINEERING CO. LIMITED
• OCEAN COATINGS LIMITED
• R A W CLARK LLP
• SILICON ASSET MANAGEMENT LIMITED
• TLAM LIMITED
• WOODVILLE CONSULTANTS LIMITED

Liquidations (57)

• A F MACARTHUR CONSULTANCY LTD
• AI PERFORM HOLDINGS LLP
• ALLIUM MONEY LIMITED
• ALPHARISK LTD
• AMRYT PHARMA (UK) LIMITED
• AQUAFIL UK LIMITED
• BAMUIR INVESTMENTS LIMITED
• BELLAS LIMITED
• BEWNAM LIMITED
• C.G.TEMPLER & CO.LIMITED
• CASTELL 2022-1 PLC
• CHAMELEON DYNAMICS LTD
• CODA PLATFORM LIMITED
• COULSON ESTATES LIMITED
• D W PROJECTS LIMITED
• ELLIS & FARAH LIMITED
• ELMAN WALL BENNETT LIMITED
• ETHER SOLUTIONS LTD
• GLENGRANGE LIMITED
• GOLDBLOCK PROPERTIES LIMITED
• HBMM HOLDINGS LTD
• HENZIE LIMITED
• KC HIRE GROUP LTD
• KJ NORFOLK DEVELOPMENTS LIMITED
• LALUNE HOLDINGS LIMITED
• LARTECH LIMITED
• LIGHTHAWK LTD
• LITTLE GREENWOOD LTD
• LLEYN ESTATES LIMITED
• MARGARY WADE LIMITED
• MATHORP INVESTMENTS LIMITED
• MAY EDWARDS LIMITED
• NEWPARK PROPERTIES LIMITED
• OAKWOOD PREMIUM FINANCE LIMITED
• OKDO TECHNOLOGY LIMITED
• OPTYMA (HOLDINGS) LIMITED
• PRO TEETH WHITENING CO LIMITED
• R.A. WALTON LIMITED
• RAIL DEPOT SOLUTIONS LIMITED
• REDINGTON ESTATES HOLDINGS LIMITED
• REDINGTON ESTATES LIMITED
• REGARDCHANGE LIMITED
• REM ASSET MANAGEMENT LIMITED
• ROC SOLID SAFETY LTD
• ROSS MARTIN PROPERTIES LIMITED
• RTI EXTRUSIONS EUROPE (HOLDINGS) LIMITED
• SAGE AR FUNDING NO. 1 PLC
• SEGAT CONSULTING LIMITED
• SILICON STORAGE TECHNOLOGY LTD
• SLALOM PERFORMANCE RACING LIMITED
• SOVEREIGN CHEMICALS LIMITED
• STALIN LTD
• STEP ON SAFETY PROPERTIES LIMITED
• STEPHEN COCKBURN LIMITED
• THE GALLEON 2023 LTD
• WAGESTREAM UK FRONTLINE II LIMITED
• WINCHHAM CONSULTING LIMITED

Winding-up Petitions (54)

• 36 STREETS FOOD LIMITED
• APOLLO 777 LTD
• BSC EDUCATION LTD
• BSC YOUNG LEARNERS LTD.
• C K ELECTRICAL & MECHANICAL (NORTH WEST) LIMITED
• CAIMASON CONSTRUCTION LTD
• DEEPOQ LIMITED
• DUCKER & YOUNG SCAFFOLDING LIMITED
• E&S INVESTMENT DERBY LTD
• ECOLOGY RESOURCES LTD
• ELITE BUILDING AND DEVELOPMENTS LIMITED
• ENERGY-ID LTD
• ESCO CONSULTANCY LIMITED
• FABRIFORM ENGINEERING LIMITED
• FARM & HARPER LTD
• FENMERE REALISATIONS LTD
• FIBRERAY BUILD LTD
• FROST CONSULTING LIMITED
• GBS 25 LTD
• GENERIX NE LIMITED
• GR8CONNECT LTD
• GSM SHOPFITTING LTD
• IN FACILITIES ENGAGEMENT LTD
• INNOVATION CREATIVE LTD
• IOAN GRIGOR LTD
• LITTLEAQUA ACADEMY LIMITED
• MANAJ GROUP LIMITED
• MARCUS MALLUCCI LIMITED
• MEDSTAAR LIMITED
• MISENO LTD
• NMN PROPERTY MANAGEMENT LTD
• NP3 PROJECTS LTD.
• OMNIA SPORTS SERVICES LIMITED
• OMNITRADE HOLDINGS LIMITED
• OPTIQUE 202O2 LIMITED
• PIZZA CASA LTD
• QUAYSTAR LIMITED
• RIDGE HOUSE RESIDENTIAL HOME LIMITED
• S & K FITTED FURNITURE LIMITED
• SABIR5 CONSULTING LIMITED
• SAIJI LIMITED
• SCORPIO SHELF 2020 LIMITED
• SER BENEFITS LTD
• SGU SOLUTIONS LIMITED
• SKYLINE ESTATES MCR LTD
• SM BESPOKE BUILDERS LIMITED
• ST DAVIDS DISTILLERY LIMITED
• THE LAUNDRY TEAM LTD
• THE OWUSU’S PROPERTIES LIMITED
• TMO ACCOUNTING AND PAYROLL SERVICES LTD
• TURNBERRY HOLIDAY PARK (SCOTLAND) LTD
• VAN KRUGER CONSULTING LIMITED
• VOICE FILMS LIMITED
• WENLOCK SQUARE LIMITED

Winding-up Orders (1)

• BRIGHT CAR MOTORS LTD

Keeping cash moving through policy and cost uncertainty

This week’s news shows how quickly business conditions can change. Tax uncertainty, expensive energy, weak SME confidence, rising insolvency notices and the prospect of interest rates remaining high all increase the importance of disciplined credit control.

Businesses cannot control Government policy or global markets, but they can improve how they assess customers, monitor risk and respond to overdue invoices.

CPA can support businesses through:

• CreditCare reports on UK companies.
• Ongoing debtor and insolvency monitoring.
• Structured credit-control support.
• Early intervention on overdue accounts.
• Ethical recovery designed to preserve customer relationships.
• Improved payment performance and reduced internal administration.

Early action matters. The longer an invoice remains unpaid, the greater the risk that it becomes disputed, deprioritised or impossible to recover.

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.

Open this guide in a new tab

.