UK Business News Today: 22 June 2026 | Economy, Markets & Insolvencies

Today’s UK business news is dominated by rising personal insolvencies, political uncertainty after Keir Starmer’s resignation, and fresh pressure on the public finances. For SMEs that sell on credit, the key message is that confidence remains fragile. Retail sales improved in May, but household budgets are still under pressure, pubs and hospitality businesses are calling for tax relief, and exporters continue to face difficult trading conditions. Company insolvencies may have fallen month-on-month, but the wider credit environment remains uncomfortable, with late payment risk still closely linked to customer finances, business costs and confidence.

James Salmon, Operations Director.

Key Developments

• Personal insolvencies rose 10% year-on-year in May, while company insolvencies fell but remain high.
• Keir Starmer’s resignation pushed sterling near 2026 lows and opened the door to a Labour leadership contest.
• UK borrowing reached £23.3bn in May, well above forecasts, adding pressure to future tax and spending decisions.
• Retail sales rebounded in warm weather, but food store sales fell as household budgets remained stretched.
• Hospitality, pubs and entrepreneurs are pressing for lower taxes, business rates reform and greater policy stability.

The Insolvency Service reported 11,223 personal insolvencies in England and Wales in May, up 10% on the same month last year and 2% higher than April. Registered company insolvencies moved in the opposite direction, falling to 1,868 in May, down 10% from April and 16% lower than May 2025. Robert Young at Azets warned that, despite the fall in company insolvencies, numbers remain high and many businesses still face an uncertain future. This is the day’s most important credit risk story because it shows that pressure is still building in household finances even as business insolvency figures ease.

Why it matters: Rising personal insolvencies can weaken customer payment behaviour, reduce consumer spending and increase the risk that small firms face slower payments or unpaid invoices.

UK government borrowing reached £23.3bn in May, according to the Office for Budget Responsibility, exceeding forecasts by £5.6bn. It was the highest May borrowing figure since 2020, driven by higher spending on debt interest, public services and benefits. Borrowing for the financial year now stands at £46.3bn, which is £7.7bn above OBR forecasts, while national debt is 95.1% of GDP, a level not seen since the early 1960s. This raises the pressure on whoever leads the Government to explain how future spending, taxation and growth will be balanced.

UK retail sales rose by 1.2% in May after falling 1% in April, according to the Office for National Statistics. Warm weather helped non-food stores, where sales rose by 6.1%. Food store sales fell by 0.4%, suggesting that households remain cautious with regular spending even when discretionary shopping improves. The figures are encouraging for retailers, but they do not remove the pressure from higher costs, fragile confidence and tight household budgets.

A Sutton Trust report says white working-class women are Britain’s lowest earners, with average annual earnings of £13,300. That is 41% below the national average. The group also has the largest gender pay gap of any ethnic group, while white working-class men earn 15% less than average. The report links the problem to weaker school outcomes and a lack of regional opportunity, which can trap people in persistent low earnings.

Keir Starmer has said he will step down as Britain’s Prime Minister, two years after leading Labour back to power with a landslide majority. His departure opens the way for Andy Burnham to attempt to take over, after the long-time mayor of Manchester won a parliamentary seat last week. Nominations for the Labour leadership contest are due to open on 9 July and the process is expected to conclude by 1 September, with Starmer remaining in post to allow an orderly handover. The winner of the Labour leadership contest would become Prime Minister without the need for a fresh general election, potentially making them Britain’s fifth premier since 2022.

Andy Burnham is likely to face much greater scrutiny if he moves closer to becoming Prime Minister. Investors will focus on whether he has a credible plan for managing the public finances while delivering promises on pensions, utilities, tax and public ownership. He has criticised the rise in employer National Insurance contributions, pledged to maintain the pensions triple lock and ruled out rises in income tax or employee National Insurance. Possible revenue options being discussed include higher capital gains tax, a bank levy, changes to taxes on expensive homes and a wealth tax.

Andy Burnham has committed to Rachel Reeves’ fiscal rules, which require day-to-day spending to be covered by tax receipts and debt to fall as a share of the economy. Some economists and advisers linked to Burnham, including Andy Haldane and Jim O’Neill, have argued that the rules are too short-term and risk choking off investment that could improve growth. Market reaction to any future change would depend on timing, presentation and who Burnham appoints as Chancellor. Names discussed include figures from Labour’s soft left, such as Ed Miliband or Shabana Mahmood.

The Sunday Times reports that Labour MPs, unions and business leaders have warned Andy Burnham’s team against appointing Ed Miliband as Chancellor. Critics argue that Miliband’s Net Zero policies would worry business and signal the wrong direction on economic policy. Rachel Reeves would have to be removed from the Treasury to satisfy those seeking a new economic approach. The debate reflects wider concern about whether a future Burnham administration would prioritise investment, fiscal caution or intervention.

The Government is being urged to reduce VAT from 20% to 10% for hospitality firms. The campaign is led by Tom Kerridge and UK Hospitality, who say the sector is overtaxed, facing rising costs and competing with supermarkets. A petition has gathered more than 220,000 signatures and support from over 50 MPs, while Andy Burnham has also backed a VAT cut. Dan Neidle of Tax Policy Associates has warned that such a cut could cost £12bn and may disproportionately benefit larger firms, suggesting that reversing the employer NICs rise or reforming business rates could be better targeted.

The British Beer and Pub Association says 2,300 pubs could close unless Labour reforms business rates. The warning comes despite a 15% rates cut this year and a freeze planned for 2027. Since January 2026, two pubs have reportedly been closing every day. The Treasury is reviewing how pub business rates are calculated, but major action may not arrive until 2029.

Jeff Prestridge writes in the Mail on Sunday that the tax burden on UK families is increasing, especially where one person is the main earner. He cites Tax Policy Associates research showing that a family of four with one annual salary of £110,000 now pays £60,117 in taxes, up from £51,133 five years ago. His argument is that the current tax direction risks weakening aspiration and economic growth. The wider question for business is whether high personal taxes reduce consumer confidence and enterprise.

A Fair Tax Foundation survey says 67% of UK taxpayers support increasing digital services taxes on major technology companies such as Meta, Google and Amazon. The current digital services tax was introduced in 2020 and applies a 2% levy to revenues from firms with UK sales above £25m. It raised £800m in 2024/25. The survey also found that three-quarters of taxpayers would prefer to work for and shop with a business they believe pays its fair share of tax.

HMRC has warned businesses not to rely blindly on AI-generated tax guidance. Some AI platforms have incorrectly suggested that VAT deadlines falling on a weekend can be met on the following working day. HMRC has reiterated that VAT deadlines remain one month and seven days after the firm’s VAT period. This is a practical reminder that AI can help with administration, but it cannot replace checking official rules.

The Government has postponed its international summit on illicit finance from this week to early December. Officially, the delay is to improve participation and secure stronger commitments, but Matthew Bishop in the Observer suggests other factors may include the recent Makerfield by-election and a lack of confirmed attendees. Margaret Hodge, the Prime Minister’s anti-corruption champion, remains frustrated by slow progress on beneficial ownership rules and weak enforcement. Professional services enablers are also expected to face tighter rules through a new single anti-money-laundering supervisor, although this may take several years to become operational.

Hannah Prevett in the Sunday Times reports that entrepreneurs want a future Labour Government under Andy Burnham to provide confidence, stability and better incentives to grow. One hospitality founder said the economy needs an injection of confidence, while another business leader questioned whether Burnham’s Manchester success can translate into a national economic strategy. A key concern is the lack of incentives for entrepreneurs to scale, exit and recycle wealth into new ventures. Prevett concludes that Burnham’s challenge will be persuading entrepreneurs that the Government sees them as partners in building Britain’s future, not merely as a source of revenue.

Writing in the Times, Harry Wallop argues that councils should take a proportionate approach to regulating the growing number of “cake shed” micro-businesses operating from homes and gardens. He recognises that councils have responsibilities around food safety, planning and enforcement. But he warns that licensing fees and red tape could create barriers for small entrepreneurs, especially those testing a business idea for the first time. Local authorities face a difficult balance between oversight and supporting enterprise.

Labour is considering reforms to England’s home-buying system to reduce the number of property transactions that collapse before completion. Around one in four sales currently falls through. Proposals include financial penalties if buyers or sellers withdraw after an agreed stage, legally binding conditional contracts soon after an offer is accepted, digital property logbooks, electronic signatures, digital identity checks and AI-assisted conveyancing. The aim is to create more certainty for both sides of a transaction.

Stamp Duty

Hamptons data shows average stamp duty in England has risen by 194% since 2015, from £1,557 to £4,572. That far exceeds the 44% rise in house prices over the same period. Analysts warn that the rising tax burden is discouraging people from moving and reducing economic mobility. Richard Donnell of Zoopla said that, after mortgage affordability, stamp duty probably has the biggest impact on how many people move home.

Gen Z workers

Resolution Foundation analysis shows that today’s 24-year-olds earn more than any previous cohort since the 1950s. Their average weekly pay is 12% higher than peers born in the late 1980s. That is positive for many young workers, despite concerns about student debt and job opportunities. Charlie McCurdy from the foundation warned, however, that tackling Britain’s NEETs crisis remains essential to helping more Gen Z workers get started.

Returnship programmes, designed to help professionals re-enter the workforce after career breaks, are being scaled back after a post-pandemic surge. Firms are becoming more risk-averse as economic uncertainty rises. That may make it harder for experienced workers to restart careers after caring responsibilities, health breaks or time away from formal employment. It also risks reducing the talent pool at a time when many employers still struggle to find experienced staff.

AI and jobs

Citing PwC’s 2026 Global AI Jobs Barometer, the FT reports that AI is reshaping graduate and entry-level white-collar roles. As AI takes on more routine tasks, graduates are increasingly expected to bring stronger interpersonal skills, judgement and communication from the start. That can make junior roles feel more senior, with less time spent on basic process work. Employers may need to rethink training so younger workers still learn the foundations.

Exports

The Resolution Foundation says the UK has lost £74bn in goods exports since Brexit, representing a 20% fall between 2019 and 2024. It describes this as the sharpest goods export decline among G7 nations. A British Chambers of Commerce survey found that 54% of UK exporters believe the post-Brexit trade agreement has hindered sales to the EU, while 16% said it helped them increase exports. Separately, the Centre for Policy Studies says the UK economy has grown by 12.1% since the 2016 referendum and by 5.3% since leaving the EU, outpacing France, Germany and Italy.

EU reset

The House of Commons Business and Trade Committee has warned that Labour’s reset of UK-EU relations may add only 0.5% to economic growth by 2040. Committee chairman Liam Byrne said there is a “yawning gap” between government claims and actual progress. The warning suggests that while improved UK-EU relations may help some sectors, businesses should not expect a rapid economic lift. For exporters, practical changes to paperwork, standards and border processes will matter more than broad political language.

EasyJet

easyJet has rejected a third non-binding takeover proposal from US private equity firm Castlelake. The latest offer was 625p per share, following earlier rejected approaches at 560p and 600p. Castlelake has indicated that it may appeal directly to shareholders ahead of a takeover deadline. The story highlights continued consolidation interest in aviation and travel as investors look for value in listed UK companies.

Market news

The dominant global market theme this morning is US-Iran peace diplomacy. Weekend talks in Switzerland reportedly produced a roadmap towards a permanent deal within 60 days, pushing oil lower, lifting Asian equities and strengthening the dollar. The second major theme is UK political uncertainty after Keir Starmer said he would step down as Prime Minister. Sterling weakened toward its 2026 lows as traders assessed what a potential Burnham-led Government could mean for UK borrowing, tax policy and fiscal credibility.

The FTSE 100 closed at 10,348 on Friday and was trading cautiously on Monday morning. The FTSE 250 faced extra pressure from homebuilder weakness linked to concerns about a potential Burnham premiership and intervention in housing policy. The STOXX Europe 600 reached a record high during the previous week and finished the week up 0.4%, helped by the US-Iran interim deal, although it was little changed on Monday morning. The broader European tone was steady, with technology outperforming and retail and consumer shares lagging.

The DAX last printed at 24,937 and the CAC 40 at 8,382. Goldman Sachs, Barclays and Société Générale all raised their STOXX 600 year-end targets following the Iran developments. In the US, cash markets were closed on Friday for Juneteenth, so the last cash close was Thursday 18 June. S&P 500 futures were around 7,541 on Monday morning, down approximately 0.2%, while Dow and Nasdaq cash levels were not supplied in the uploaded wrap.

Asian markets were stronger, led by AI and semiconductor shares. The Nikkei 225 was at 72,890 and higher, supported by technology optimism and reassurance after Japan’s Prime Minister accepted the Bank of Japan’s recent rate rise. The Shanghai Composite rose 1.8% to 4,163 after the PBOC held lending rates unchanged. The Hang Seng fell 0.7% to 23,769, marking a fourth consecutive decline as Alibaba led losses and mainland investors sold through Stock Connect.

Lower oil prices supported sentiment, but not enough to remove caution entirely. Investors are still watching the durability of the US-Iran process, the reopening of supply routes through the Strait of Hormuz and the possibility of renewed disruption. UK assets also face a domestic political risk premium as investors assess whether a new Labour leader could loosen fiscal rules or increase borrowing. In the background, central bank signals remain important, with US Treasury yields rising as cash trading resumed after Friday’s holiday and the Bank of Japan’s recent rate rise keeping the yen under pressure.

Sterling weakened after Starmer’s resignation. GBP/USD traded around $1.3181 to $1.304, down roughly 0.2% to 0.4% and close to the 2026 low of $1.3159. GBP/EUR also softened slightly, with the pound around 0.1% weaker against the euro. The Bloomberg Dollar Spot Index was up 0.2% on the day and 0.8% over the previous week, helped by dollar strength, resilient US data and geopolitical caution. USD/JPY rose to 161.67, close to levels that would mark the yen’s weakest point since 1986.

Brent crude traded around $79 a barrel, down about 1.7% to 2% as US-Iran talks progressed and supply fears eased. WTI was also below $79 and lower. Brent had briefly opened more than 2% higher above $80 after renewed concern around the Strait of Hormuz, but then reversed sharply as Qatar and Pakistan issued more reassuring comments on the talks. This four-percentage-point intraday swing shows how sensitive energy markets remain to headlines.

Gold rose to around $4,155 to $4,191 an ounce, up about 0.8% early in the session, as investors kept a safe-haven bid despite weaker oil. Gold ETF demand also picked up, with the largest one-day addition since mid-April. Silver, platinum and palladium saw ETF outflows. For SMEs, lower oil can ease some cost pressure, but volatile energy and currency markets still make pricing and cashflow planning difficult.

Insolvencies

Administrations

• HEREFORD GLASS FIBRE LIMITED
• JRL BRICKWORK LTD
• PRECISION FACADES LTD
• PROJECT Q SENIOR LTD

Liquidations

• BROOKSTOW PROPERTIES 1 LIMITED
• CHARLES A. PILGRIM LIMITED
• CLAYMORE TECHNOLOGY SOLUTIONS LIMITED
• DAVID CLARKE & ASSOCIATES BUILDING DESIGN CONSULTANTS LIMITED
• DOUGLAS PROJECT SOLUTIONS LTD
• DYNASTIC DEVELOPMENTS LIMITED
• FAIRLINE SALES & MARKETING LIMITED
• GLOBAL KARTING SERVICES LIMITED
• T C W REDGATE LIMITED
• THE HOUSE & LAND DEVELOPMENT CORPORATION LIMITED
• TITANS HOMES LTD
• WEANSWER GROUP LIMITED
• WWW.TOADFOOTWEAR.CO.UK LIMITED

• A&J RESTAURANT VENTURES LTD
• ACE OF TECH LTD
• ALEXANDRA BEDS LTD
• ARTISAN (UK) PLC
• B G A QUALITY BUTCHERS LTD
• B9 PROPERTY MANAGEMENT LIMITED
• BOX LEISURE RECRUITMENT LTD
• BURAK TRANSPORT & SOLUTIONS LTD
• CENTRAL ECO SOLUTIONS LTD
• CHAMBERS LEGAL LTD
• CJ PROPERTIES (NW) LIMITED
• CORPORATION PUB CARDIFF LIMITED
• CROWN BUILDERS UK LTD
• DONER SHACK HOLDINGS LTD
• EASTSIDE COLLECTIVE LTD
• GILL EXEC LIMITED
• GLOBAL AIRLINES LTD
• GORBALS RETAIL LIMITED
• HAMPTON ESTATES INVESTMENTS LIMITED
• IBL75 LIMITED
• INSULATION GREEN TEAM LIMITED
• KUREJ LTD.
• LAFIO24 LTD
• MARKET EUE LTD
• MRAYA FOOD LTD
• RENA LEISURE SERVICES LIMITED
• SIRIUS OPEN SOURCE LTD
• TAB24 LTD
• T.U PAY LIMITED
• T.U PAYE LIMITED
• TOPHAT INDUSTRIES LIMITED
• VENTURE PARTNERSHIP LTD
• WARWICK HEATING & BATHROOM SUPPLIES LIMITED
• ZEE AND DEE LTD

Winding up Orders

• APPETITE WARRIORS LTD
• CHARGE CARS LTD

How CPA can help

When personal insolvencies rise, political uncertainty grows and costs remain unpredictable, late payment risk can move quickly. A customer who looked reliable six months ago may now be under pressure from higher borrowing costs, weaker demand, tax bills or their own unpaid invoices.

CPA helps businesses protect cashflow with CreditCare credit reports, debtor monitoring and overdue account recovery. The aim is not to damage customer relationships, but to keep payment discipline clear, professional and timely.

If you are worried about overdue invoices or want to strengthen your credit checks before extending further credit, contact CPA on 020 8846 0000 during business hours, Monday to Friday, 9am to 5pm. You can also 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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