UK Business News Today: 23 June 2026 | Economy, Markets & Insolvencies

UK businesses are facing another period of political uncertainty after Sir Keir Starmer announced he will step down as Labour leader and Prime Minister. Business groups have urged the next Prime Minister to avoid further tax rises and focus instead on stability, confidence and growth. For SMEs that sell goods or services on credit, the issue is practical: when policy is uncertain, costs are volatile and customers become cautious, payment behaviour can weaken quickly. Today’s briefing brings together political change, tax risk, a global technology-led market selloff, skills shortages, housing pressures and fresh insolvency notices.

James Salmon, Operations Director.

Key Developments

• Business groups urged the next Prime Minister to back growth and avoid further tax hikes.
• Sir Keir Starmer’s resignation has triggered a Labour leadership contest and renewed policy uncertainty.
• Global markets turned lower after a sharp AI and semiconductor selloff hit Asia.
• The Government is projected to miss its housing target by 662,500 homes.
• Today’s insolvency notices include 7 administrations, 8 liquidations and 3 winding-up petitions.

News Sections

SME & Business Environment

Next PM urged to back business and avoid tax hikes

Following Sir Keir Starmer’s resignation, business leaders and economists have urged the next Prime Minister to avoid further tax increases and focus instead on restoring confidence. Mohit Kumar, an economist at Jefferies, warned that any further tax rises would be counterproductive. Rain Newton-Smith, chief executive of the Confederation of British Industry, said businesses need stability, confidence and a clear path to growth.

Neil Carberry, chief executive of the Recruitment and Employment Confederation, urged the next Prime Minister to back business rather than imposing policies shaped mainly by Westminster think-tanks and more radical union leaders. Tina McKenzie, policy chairwoman of the Federation of Small Businesses, called for a bold and clear vision to overcome the obstacles facing the UK’s 5.7m small businesses and self-employed.

Why it matters: Tax uncertainty can delay investment, weaken business confidence and make customers more cautious about spending and paying on time.

London firms see AI skills gap widening

Half of London’s businesses say their workforce lacks the skills needed for the age of AI, according to a Survation survey for BusinessLDN. The survey of 2,043 business leaders found that 50% believe their teams have the necessary capabilities, down from 63% last year. The proportion of firms reporting significant skills and capacity gaps has risen to 15%, up from 4% in 2025.

However, 81% of firms plan to increase investment in training over the coming year, showing that employers recognise the need to adapt. For smaller firms, the challenge is not just adopting AI tools but doing so without disrupting day-to-day operations or adding unnecessary cost.

Social media is shaping career aspirations

Research suggests social media is having a major influence on children’s career ambitions. A US study found that more than 60% of middle and high school students either aspire to become social media influencers or have chosen future career ideas based on what they have seen online. This points to a changing labour market where young people may view self-employment, digital work and online income very differently from previous generations.

For employers, this may influence recruitment, training and retention, particularly in practical, technical and customer-facing roles. SMEs may need to work harder to show young workers that careers in traditional sectors can still offer progression, stability and purpose.

Economy & Policy

Starmer resignation triggers Labour leadership contest

Sir Keir Starmer has announced that he will step down as Labour leader and Prime Minister, bringing months of political uncertainty to a head. The decision follows significant local election losses in May and growing criticism from within Labour’s parliamentary ranks. The UK is now set for another change of Prime Minister, potentially within weeks and before the Labour Party Conference in September.

Markets will be watching closely for signs of the next Government’s tax, spending and business policy direction. For business owners, the immediate issue is whether the leadership contest produces clearer support for growth or further uncertainty around costs, regulation and taxation.

Burnham allies call for tax pledge rethink

Andy Burnham is widely seen as the frontrunner to become Prime Minister and is already facing pressure over Labour’s tax pledges. During a recent by-election campaign, Mr Burnham said he would honour manifesto promises not to raise income tax, National Insurance or VAT. However, allies have warned that sticking to those commitments could limit his ability to fund spending plans.

Analysts believe there could be changes to inheritance tax and stamp duty, while the personal allowance could also come under review. Economists at Pantheon Macroeconomics suggest Mr Burnham could appeal to Labour MPs with more spending funded by higher taxes and moderately looser fiscal rules.

Bank of England eases stablecoin rules

The Bank of England has revised its proposed stablecoin regulations after industry concerns that the UK risked becoming less competitive. The new framework removes a proposed limit on customer deposits and introduces a temporary £40bn cap on total sterling-denominated stablecoins. The Bank has also reduced the share of deposits that issuers must hold in central bank reserves from 40% to 30%.

Sarah Breeden, the Bank’s deputy governor, described the changes as a major milestone for UK payments. However, Janine Hirt, chief executive of Innovate Finance, warned that the regime could still be one of the most conservative and cautious in the world.

Property, Construction & Investment

Government projected to miss housing target by 662,500 homes

The Government is projected to fall short of its housebuilding promise by 662,500 homes, according to Savills. The firm estimates that England will complete an average of 167,500 new-build homes each year from 2024/25 to 2029/30, far below the Government’s target of 300,000. Planning consents for new developments have fallen by 39% in three years.

Kelly Boorman at RSM UK warned that potential policy changes following Sir Keir Starmer’s resignation could add further uncertainty for the industry. This matters well beyond housebuilders, because construction delays affect suppliers, trades, transport, professional services and local businesses linked to development activity.

Markets & Political Reaction

UK blue chips rise after Starmer resignation

UK blue-chip shares closed higher after Sir Keir Starmer’s resignation and Wes Streeting’s decision not to launch a leadership campaign. The FTSE 100 rose 0.72% on Monday to close at 10,437.85, helped by lower oil prices and optimism around US-Iran peace talks. The resignation initially caused a dip in the FTSE 250 and a brief slide in sterling towards its 2026 low of $1.3181.

Markets later recovered as Andy Burnham emerged as the clear frontrunner to succeed Starmer and investors assessed the likely policy direction of the next Government. Gilts also rallied, with 10-year yields falling four basis points to 4.80%.

Consumer, Work & Culture

Messi becomes World Cup’s highest-ever goal scorer

Lionel Messi became the World Cup’s highest-ever goal scorer after scoring twice for Argentina against Austria. Playing in his sixth consecutive World Cup, Messi now has 18 goals and counting. Kylian Mbappé also scored twice for France against Iraq and is now two goals behind Messi’s total.

Tonight, England play their second game against Ghana in Boston at 9.00 UK time.

Although not a business policy story, major sporting events can influence consumer behaviour, hospitality footfall and workplace mood. For pubs, restaurants, retailers and leisure businesses, short bursts of demand can be useful but still need careful staffing, stock and cashflow planning.

Global Market Summary

Equities

UK and European markets closed higher on Monday as optimism over US-Iran peace talks and falling oil prices lifted sentiment. The FTSE 100 rose 0.72% to close at 10,437.85, its largest single-day gain since 12 June. The STOXX Europe 600 gained 0.6% to 639.27, also its best session since 12 June.

The uploaded market briefing did not provide full Monday close levels for the STOXX Europe 50, DAX or CAC 40. It did, however, show that Euro STOXX 50 futures were down around 1.0% to 1.4% on Tuesday morning as the overnight technology selloff spread into Europe. The same briefing noted that specific DAX and CAC 40 Monday close data were not available in the data received that morning.

In the US, markets were mixed on Monday. The S&P 500 fell 0.4% to 7,472.79, the Nasdaq Composite dropped 1.3%, and the Nasdaq 100 declined 0.2%. The Dow Jones Industrial Average bucked the trend, rising 0.3%, helped by strength outside the technology sector.

Asian markets then suffered a severe technology-led selloff overnight. South Korea’s Kospi fell around 10%, triggering a temporary circuit breaker, as SK Hynix and Samsung Electronics both dropped more than 10%. Japan’s Nikkei 225 fell around 1.5% to 2%, while Hong Kong’s Hang Seng Index fell 1.8% to 23,336.28, its fifth consecutive decline. The CSI 300 fell 2.8% to 4,919.4 and the Shanghai Composite dropped 1.4% to 4,106.25.

Market drivers

The main driver was a sharp rotation out of AI and technology stocks. In the US, Alphabet fell about 5%, Amazon dropped 4.8%, and SpaceX fell 16% after beginning to sell investment-grade bonds. The weakness then intensified in Asia, where South Korea’s market is heavily exposed to semiconductor stocks.

Geopolitics also remained important. US-Iran peace talks appeared to make progress, with the US issuing a 60-day sanctions waiver allowing Iran to sell oil internationally. That raised hopes of improved oil supply and helped push crude prices lower, although uncertainty remains around nuclear inspections and the durability of any agreement.

UK politics added another layer of uncertainty. Sir Keir Starmer’s resignation caused an initial wobble in sterling and mid-cap shares, but markets later stabilised as investors focused on the likely leadership timetable and possible policy direction under Andy Burnham.

Currencies

Sterling traded around $1.3244 against the dollar after briefly falling to about $1.3181 following Sir Keir Starmer’s resignation. Against the euro, the pound was around €1.16, with EUR/GBP implied at about £0.86.

The dollar strengthened more broadly as the risk-off mood increased demand for safe-haven assets. The euro traded near $1.140 and was testing a support level that has held for much of the past year. The yen remained weak, with USD/JPY around 161.60 to 161.74.

Commodities

Oil prices fell sharply as progress in US-Iran talks raised hopes of increased supply. Brent crude traded around $77 per barrel after falling 3.3% on Monday, while WTI crude was around $73 per barrel after settling at $75.19 on Monday.

Gold also weakened, trading around $4,105 to $4,140 per ounce, down around 1.5% to 2.0% on Tuesday. Silver dropped around 5% to about $62.51 per ounce, while copper fell 1.3% to $13,469 per metric tonne as the selloff spread into industrial metals.

What this means for SMEs

For small businesses, the market message is mixed. Lower oil prices may eventually ease some fuel and transport cost pressure, but the broader risk-off mood can affect confidence, investment and customer demand. Political uncertainty may also make businesses and consumers more cautious. For firms selling on credit, this is a time to watch customer payment behaviour closely and keep credit control disciplined.

Insolvency Watch

Administrations (7)

• ADCO PRODUCTS LIMITED
• GROUPIA LTD
• MEDIA BASED ATTRACTIONS LIMITED
• PREMIER ACCOUNTANCY (UK) LIMITED
• ROBOCOASTER LIMITED
• RODLIFFE ACCOUNTING LIMITED
• X1 MEDIA CITY LIMITED

Liquidations (8)

• BLACKTHORN ENERGY LIMITED
• HORIZON HOUSE INVESTMENTS LTD
• KINGSLAND DEVELOPMENTS LIMITED
• PORTSUN LIMITED
• REDBARN PROPERTIES LIMITED
• SOUTHSTREAM SERVICES LIMITED
• SUTHOLD1 LIMITED
• TOW BRIDGE UNLIMITED

Winding-up Petitions (3)

• ELDENS FINANCE LIMITED
• LITUS PROPERTY LTD
• V I ESTATE MANAGEMENT LTD

Keeping cash moving when uncertainty affects confidence

Political uncertainty, tax concerns and market volatility all have one thing in common: they can make businesses more cautious with cash. Customers may delay orders, slow payments or become harder to read. For SMEs that sell on credit, that can quickly turn into pressure on working capital.

CPA helps businesses protect cashflow through CreditCare credit reports, debtor monitoring, credit control support and overdue account recovery. Our approach is firm, ethical and designed to preserve customer relationships wherever possible. When the wider business environment becomes less predictable, early visibility of customer risk and prompt action on overdue accounts can make a material difference.

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.

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