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

UK businesses begin Tuesday facing a mixed picture. Government borrowing is running ahead of forecast, household confidence and job security have weakened and speculation around tax changes is adding to uncertainty ahead of the October Budget. At the same time, oil prices have fallen sharply as hopes grow of an easing in tensions around the Strait of Hormuz, while enthusiasm over artificial intelligence has powered a strong semiconductor rally. For SMEs selling on credit, the combination reinforces the importance of monitoring customers closely: economic growth can coexist with pressure on household finances, higher operating costs and deterioration in individual businesses’ ability to pay.

James Salmon, Operations Director.

Key Developments

• UK borrowing reached £77.3bn in the first five months of the financial year, £8.1bn above the OBR’s March forecast.
• UK job security has fallen to its weakest level in around three-and-a-half years, while household confidence slipped again.
• Brent crude fell below $100 a barrel, offering some relief from recent energy and transport cost pressures.
• Meta’s Muse AI agent has triggered renewed optimism around AI investment, helping semiconductor stocks rally sharply.
• Businesses continue to face policy uncertainty ahead of the 28 October Budget, including debate around property, capital gains and other potential tax changes.

Economy & Policy

UK borrowing rises above forecast

Britain borrowed £18.3bn in August, taking borrowing between April and August to £77.3bn. That is £8.1bn above the Office for Budget Responsibility’s March forecast. Higher spending on public services, benefits and debt interest outweighed stronger tax receipts, with inflation contributing to the increase in expenditure. Official ONS data confirms that August borrowing was around a fifth higher than a year earlier and that year-to-date borrowing remains above the official forecast.

Why it matters: A weaker fiscal position reduces the Chancellor’s room for manoeuvre ahead of the Budget and increases uncertainty around future taxes and business costs.

Hunt calls for a bolder Budget

Former Chancellor Sir Jeremy Hunt has urged Chancellor John Healey to use October’s Budget for broader economic reform rather than relying on incremental tax rises and spending cuts. KPMG estimates that higher borrowing costs and weaker growth have reduced fiscal headroom by almost £12bn. Hunt has advocated changes including reform of the pensions triple lock, restraint in public-sector pay and higher defence spending, while the Institute for Fiscal Studies has cautioned against assuming individual tax increases such as higher capital gains tax will provide simple solutions.

National Wealth Fund faces calls for expansion

A coalition including the TUC, Greenpeace and WWF is calling for the National Wealth Fund to become a much larger national development bank. The fund currently has investment capacity of around £5.5bn a year, compared with £53.5bn lent by Germany’s KfW in 2025. Proposals include greater spending on home retrofits, infrastructure and green industries, while the Treasury says the fund remains focused on attracting private investment.

Tax & Government

Reported mansion tax rethink could widen London exposure

Reports suggest the Government is considering lowering a possible mansion tax threshold to £1.5m. Tax Policy Associates estimates that this could increase the number of affected properties from 123,000 to 245,000, with more than half in London. Its analysis suggests around 62,000 additional London homeowners could be brought into scope, while Hamptons estimates that one in four detached homes in the capital could face a surcharge.

London tourism tax draws business warning

Former London mayoral adviser James Ford has warned that a proposed London tourism tax could affect hospitality and the wider visitor economy. Estimates cited by opponents suggest it could result in £2.2bn of lost GDP, 3.5m fewer visits and 33,000 jobs at risk.

These figures are forecasts advanced by critics of the proposal rather than established outcomes.

Why it matters: Hospitality and tourism businesses often operate on tight margins, so any weakening in visitor demand could quickly affect supplier payment behaviour and credit risk.

Post Office chief calls for rates relief

Post Office chief executive Neil Brocklehurst has called for government help with rising business rates. Post offices are expected to face a £45m rates bill this year, £29m more than previously, with almost 600 branches paying rates for the first time.

Why it matters: Sudden increases in fixed operating costs can squeeze working capital and may increase payment pressure throughout local supply chains.

Employment & Consumer Confidence

Job security falls to three-and-a-half-year low

S&P Global’s UK consumer survey indicates that perceived job security has fallen to its weakest level in around three-and-a-half years. Retail workers reported particularly high levels of concern, while the headline consumer sentiment index slipped from 42.9 in August to 42.7 in September.

Consumers also reported cutting back on major purchases as concerns grow about borrowing costs, employment and essential household expenses.

Household confidence weakens

S&P Global’s wider household confidence data also showed sentiment falling to a three-month low. Concerns centre on employment security, energy prices, inflation and interest rates, despite signs of economic growth.

Property & Consumer

More homes for sale as buyer demand falls

Rightmove reports that the stock of homes available for sale has reached a 12-year high, while buyer enquiries and agreed sales are both around 9% lower than a year ago. Around four in ten homes are failing to find a buyer, compared with approximately one in four in 2021.

Flats are proving particularly difficult to sell, with around half finding buyers compared with roughly 65% of houses.

Vet prescription fees capped under new CMA rules

Written veterinary prescription fees will be capped at £21 under legally binding Competition and Markets Authority reforms. Practices must also publish prices for standard services, tell customers when cheaper medicines may be available online and provide written estimates for treatment expected to cost £500 or more.

Vet businesses will also have to disclose whether they are independent or part of a larger group. Some independent practices have warned that reduced margins on medicines could lead to higher prices elsewhere.

Technology & AI

Meta’s Muse becomes America’s leading free app

Meta’s new AI agent Muse reached No. 1 on both Apple’s US App Store and Google Play after recording more than 902,000 downloads in its first six days. Muse allows users to create personalised AI agents capable of carrying out digital tasks on their behalf.

The early adoption helped restore investor confidence in AI-related technology following concerns about high valuations earlier in the summer.

AI enthusiasm drives semiconductor rally

The Philadelphia Semiconductor Index jumped 4.3%, while AMD rose strongly enough to reach a market capitalisation above $1tn for the first time. Intel and Arm also recorded substantial gains.

The enthusiasm was not universal across US shares, however. Despite the headline rally, more S&P 500 constituents reportedly hit one-year lows than one-year highs, highlighting the concentrated nature of some of the market strength.

Bank of England examines safeguards against AI market disruption

Bank of England Deputy Governor Sarah Breeden has warned that autonomous AI agents could create destabilising feedback loops in financial markets if multiple systems react to the same signals simultaneously. The Bank is considering possible mechanisms to limit or stop AI-driven trading during periods of serious market stress.

UK seeks balance between AI growth and safety

Prime Minister Andy Burnham is using meetings around the UN General Assembly to promote international cooperation on AI and has said the UK should seek a balance between encouraging innovation and managing risk. The Government says the UK’s AI Security Institute could contribute to future international cooperation on AI safety. The Government has also announced further UK-US collaboration around defence AI and autonomous technology.

Alibaba unveils powerful domestic AI chip

Alibaba has unveiled its Zhenwu V900 chip, which it claims is China’s most powerful, as US restrictions accelerate Chinese investment in domestic semiconductor capability. Alibaba hopes the chip will ultimately support 20GW of data-centre capacity by 2032 and has also announced a substantially larger AI model.

International & Corporate

Paramount Skydance reaches settlement over Warner Bros Discovery deal

Paramount Skydance has reached a settlement with California and 11 other US states over its acquisition of Warner Bros Discovery. The agreement is expected to end legal challenges to the combination, with independent editorial boards to be established for CNN and CBS.

Bitcoin eases after four-day rally

Bitcoin slipped below $86,000 after briefly trading above $87,000 on Monday and reaching its highest level since January. The move followed a strong four-day rally despite higher US interest rates and continuing uncertainty around crypto regulation.

Employment Research

Study links fatherhood with changes in workplace gender outcomes

Research tracking Danish workers over 25 years found that when a male boss had a first-born daughter, the proportion of women employed by the firm and women’s earnings relative to men increased. Researchers had insufficient numbers of female managers to establish whether motherhood produced a comparable effect.

Global Market Summary

Global markets are being driven by two contrasting forces: easing energy fears and renewed enthusiasm for artificial intelligence.

European equities extended Monday’s gains on Tuesday morning as reports of possible movement toward reopening the Strait of Hormuz pushed oil prices lower. The FTSE 100 stood at 10,756.06, up 0.16%, while the STOXX Europe 600 gained 0.36% to 644.25. The Euro STOXX 50 rose 0.29% to 6,336.72, Germany’s DAX gained 0.32% to 25,658.10, and France’s CAC 40 rose 0.32% to 8,165.13.

US shares recorded a stronger session on Monday. The S&P 500 rose 1.49% to 7,764.70, the Dow Jones gained 0.71% to 52,048.83, and the Nasdaq 100 climbed 2.83% to 30,482.35. Meta’s Muse agent helped fuel renewed enthusiasm for AI infrastructure and semiconductors.

Asian markets were steadier. The Nikkei 225 was flat at 65,018.95, while the Hang Seng gained 0.18% to 25,087.75. Semiconductor strength supported South Korean and Taiwanese shares, while investors remained cautious ahead of US-China talks.

Market drivers

The largest macroeconomic influence is energy. Reports that Iran may be willing to reopen the Strait of Hormuz under certain conditions have reduced immediate concerns about global oil supply. AI remains the dominant equity theme, while markets are also watching US-China talks, the UK’s deteriorating fiscal position and central-bank warnings that energy shocks could keep inflation higher for longer.

Currencies

GBP/USD stood at 1.3371, broadly unchanged on the day, while GBP/EUR was approximately 1.1658. Sterling was caught between a slightly weaker US dollar and concerns about the UK fiscal outlook.

Commodities

Brent crude fell 1.67% to $98.66 a barrel, extending its recent decline as fears of prolonged disruption around Hormuz eased. WTI crude fell 2.69% to $93.20, while gold slipped 0.21% to $4,334 an ounce.

For UK SMEs, falling crude prices would be welcome if sustained because lower wholesale energy and transport costs can eventually feed through into supply chains. However, energy markets remain volatile and businesses should be cautious about assuming that recent falls will immediately reverse previous cost increases.

Insolvency Watch

Administrations (6)

• BARKER HOMES MAIDENHEAD LTD
• BRAIER GROUP LTD
• HELIX CONSTRUCT LIMITED
• HELIX PARENT HOLDINGS LIMITED
• MJM CONTRACT SERVICES LTD
• MJM ENERGY AND SAFETY SERVICES LIMITED

Liquidations (17)

• ABACUS HOTELS LIMITED
• FOXTROT SYSTEMS LIMITED
• GLENAVON FINANCE LIMITED
• GUISELEY CONSULTING LIMITED
• IRONBRIDGE GORGE TRADING COMPANY LIMITED
• JUICY SOFTWARE LIMITED
• KMTX LTD
• MARATHON PARAMOUNT LIMITED
• MOVES RECORDINGS LTD
• MUTINEER MUSIC GROUP LTD
• NAHOR LIMITED
• OLIVER WYMAN ENERGY CONSULTING LIMITED
• PT STAT CONSULTING LTD
• S R FORSYTH (BRISTOL NORTH) LTD
• SOUHAK LIMITED
• THE PASSIVE HOUSE BUILDER LIMITED
• X EST CATERING LIMITED

Winding-up Petitions (8)

• BLOUDAN LTD
• COV19 CARE LTD
• DEEPLAND TRADING LTD
• FITZ 07 LTD
• HOUSE OF KAGU LTD
• RELAXED DINING (WEST MIDLANDS) LTD
• SHELLARD LOGISTICS LIMITED
• SOMOT CONSULT LIMITED

Protecting cashflow when confidence is fragile

Today’s news shows why businesses cannot rely on the wider economy alone when deciding whether a customer remains a safe credit risk. Public borrowing is above forecast, household confidence is weakening and higher costs continue to affect individual sectors even as parts of the financial markets perform strongly.

Regular credit checking and disciplined follow-up therefore matter.

CPA can help businesses use CreditCare credit reports and debtor monitoring to identify changing customer risk, strengthen credit-control processes and improve payment performance.

Where invoices become overdue, CPA can support recovery through the professional and considerate approach of its Overdue Account Recovery Service designed to secure payment while preserving valuable customer relationships.

Early action is important. The longer an invoice remains unpaid, the more difficult recovery can become, particularly if a customer is already experiencing deteriorating cashflow.

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/

CPA’s approach reflects its long-standing focus on improving cashflow while protecting the commercial relationships businesses depend upon.

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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