UK Business News Today – 23 March 2026 | Economy, Markets & Insolvencies
UK businesses are facing a sharp escalation in economic pressure as the Middle East conflict drives energy prices higher, pushes up borrowing costs, and unsettles global markets. From rising business rates and tax changes to weakening growth forecasts and mounting insolvencies, the environment for SMEs is becoming increasingly difficult. The human impact is also becoming clear, with business owners reporting rising stress and uncertainty as they try to navigate a rapidly changing landscape.
James Salmon, Operations Director.
Key Developments
• SME owners report rising stress as economic pressures intensify
• Energy prices surge, driving inflation and higher borrowing costs
• Interest rate expectations shift towards further increases
• Business costs rise across rates, wages, tax and energy
• Insolvency activity continues to build across sectors
SME & Business Environment
SME owners losing sleep as pressures mount
Research shows that 78% of UK small business owners are losing sleep due to economic volatility, with concerns around tax, interest rates and regulation rising sharply. Businesses expecting growth are particularly affected, highlighting the pressure of managing expansion in uncertain conditions.
Why it matters: Rising stress signals growing financial strain, which can lead to slower payments, tighter cashflow and increased credit risk.
SME builders delay investment
Housebuilders are pulling back on new projects, with 70% deterred by current market conditions and many reducing land purchases. A slowdown in development activity points to weakening confidence across the sector.
Why it matters: Reduced investment slows economic activity and can delay payments across supply chains.
Pubs and bars face closure crisis
Closures in the hospitality sector have doubled over five years as operators face rising wages, energy bills and business rates. Industry leaders warn that cost pressures are becoming unsustainable.
Why it matters: Sector stress increases insolvency risk and disrupts supplier payment cycles.
High street shops face rate increases
Convenience stores are expected to see business rates rise by £1,600 on average, with some facing significantly higher increases in the coming years. Retailers warn this will push up prices for consumers.
Why it matters: Higher fixed costs reduce margins and increase the risk of delayed supplier payments.
Retailers push to close import tax loophole
UK retailers are calling for an end to a tax exemption allowing low-value imports to avoid customs duty. They argue it creates unfair competition with overseas sellers.
Why it matters: Competitive pressure can squeeze margins and increase financial strain on domestic businesses.
Economy & Policy
UK growth forecasts downgraded
Economic growth forecasts have been sharply reduced as rising energy prices weigh on business investment and consumer spending. Analysts expect weaker growth into 2026.
Why it matters: Slower growth often leads to longer payment terms and higher default risk.
Inflation set to rise again
Economists warn that energy-driven inflation could push price growth higher than expected this year, delaying any easing in financial conditions.
Why it matters: Inflation increases costs and reduces customers’ ability to pay on time.
Bank of England expected to raise rates
Markets now expect multiple interest rate increases this year as inflation pressures build. Borrowing costs for businesses and households are likely to rise further.
Why it matters: Higher interest rates increase financing costs and tighten cashflow.
UK borrowing rises above expectations
Government borrowing has exceeded forecasts, with higher debt interest costs adding to fiscal pressure. Rising gilt yields are reducing fiscal headroom.
Why it matters: Public finance strain increases the likelihood of future tax rises or spending cuts affecting SMEs.
Chancellor faces fiscal and tax pressures
Rising inflation and energy costs could leave a £20bn gap in government finances, forcing difficult decisions on tax and spending.
Why it matters: Tax changes and fiscal tightening directly impact business profitability and liquidity.
Tax changes hit company directors
Dividend tax increases coming into force in April will reduce take-home income for business owners and may change how they extract profits.
Why it matters: Reduced income flexibility can strain owner-managed businesses’ cashflow.
HMRC expands compliance activity
HMRC has identified nearly 4m online sellers under new reporting rules and plans to resume fraud crackdowns despite previous errors.
Why it matters: Increased compliance scrutiny raises administrative burden and financial risk for SMEs.
Costs & Inflation Pressures
Energy bills set to rise sharply
Household energy bills are forecast to rise by £332, reflecting higher wholesale prices driven by the Middle East conflict.
Why it matters: Rising household costs reduce disposable income and can delay customer payments.
Energy prices seen as unavoidable
Industry leaders warn that higher energy costs are likely to persist if oil prices remain elevated.
Why it matters: Sustained energy inflation increases operating costs and squeezes margins.
Mortgage costs surge
Mortgage rates have risen sharply, adding up to £1,500 a year for borrowers. Higher swap rates are feeding through into lending costs.
Why it matters: Financial pressure on customers can lead to slower payments and increased bad debt risk.
Food prices expected to rise
The NFU warns that higher fuel and fertiliser costs will push food prices higher in the coming months.
Why it matters: Rising living costs reduce customers’ ability to pay invoices promptly.
Employment & Labour
Jobless crisis debate intensifies
The UK faces ongoing debate over rising welfare claims and economic inactivity, with concerns about lost productivity and workforce participation.
Why it matters: Labour market weakness can reduce demand and increase payment delays.
Retailers warn on employment reforms
Businesses warn that new employment rules could discourage hiring, particularly for younger workers.
Why it matters: Hiring constraints can limit business growth and reduce overall economic activity.
Industry & Investment
Wetherspoon profits fall sharply
The pub chain reported a 32% drop in profits as rising wages, energy costs and taxes hit performance.
Why it matters: Profit pressure across large firms often reflects wider cost challenges affecting SMEs.
Energy & Geopolitics
Iran conflict escalates global risk
The threat to close the Strait of Hormuz and continued regional attacks have heightened global tensions and disrupted energy markets.
Why it matters: Energy shocks feed directly into costs, inflation and payment risk.
Government prepares emergency response
The UK government is holding emergency COBRA meetings to address rising costs, with potential intervention measures under consideration.
Why it matters: Policy responses may provide support but also signal the severity of economic risks.
IEA outlines oil demand reduction plan
A 10-point plan has been proposed to reduce oil demand through transport changes, remote working and energy efficiency measures.
- Reduce speed limits on highways
- Implementing car-free Sundays or other days
- Promote remote working
- Shift freight from road to rail
- Encourage public transport and active mobility
- Accelerate electric vehicle adoption
- Replace oil boilers with heat pumps
- Ban new oil boiler installations
- Reduce single-use plastics
- Encourage behavioral changes – Policies and campaigns to reduce unnecessary travel, optimize logistics, and improve energy efficiency in daily life contribute to immediate oil savings
- Why it matters: Structural changes could reshape costs and supply chains for businesses.
Global Market Summary
Global markets opened the week under heavy pressure as the Iran conflict intensified, triggering a sharp rise in oil prices and a shift in expectations around interest rates.
Equities
The FTSE 100 fell 2.0% to 9,722.97 on Monday morning after closing Friday at 9,918.33. European markets followed a similar pattern, with the DAX down 2.0% to 21,922.67 and the CAC 40 falling 1.9% to 7,516.44.
In the US, the S&P 500 closed at 6,506.48, the Dow Jones at 45,577.47 and the Nasdaq at 21,647.61, all under pressure from rising energy costs and rate concerns.
Asian markets extended losses overnight, with the Nikkei 225 down 3.5% to 51,515.49 and the Hang Seng also falling 3.5% to 24,382.47.
Market Drivers
The dominant driver is the escalation in the Middle East, particularly the threat to oil supply through the Strait of Hormuz. Markets are also reacting to a major shift in central bank expectations, with investors now pricing in potential rate hikes instead of cuts.
Currencies
Sterling weakened against both major currencies.
GBP/USD is around 1.327, while GBP/EUR stands near 1.155.
The US dollar has strengthened on safe-haven demand, while the pound remains under pressure from rising UK rate expectations and weaker growth outlook.
Commodities
Brent crude rose to $113.66 per barrel, continuing a sharp upward trend driven by supply concerns. WTI crude is trading near $99.30 after briefly exceeding $100.
Gold has fallen sharply to around $4,251, entering a bear market as rising interest rate expectations reduce demand for non-yielding assets.
Outlook
Markets are entering the week with elevated volatility and a strong risk-off tone. The key focus will be whether geopolitical tensions escalate further and how central banks respond to rising inflation pressures.
Insolvency Watch
Administrations (94)
85 LEXHAM GARDENS LIMITED
ALBERT COURT PROPERTY LIMITED
ALTAYYAR HOUSE (FLAT 13) LIMITED
ALTAYYAR HOUSE (FLAT 14) LIMITED
ASHBURN PLACE (WG) LIMITED
BARKSTON GARDENS (EC) LIMITED
BASILDON VIEW COTTAGE (RR) LIMITED
BAY HOMES (STRACHUR) LTD
BELGRAVIA COURT (ES) LIMITED
BICKENHALL MANSIONS PROPERTY LIMITED
BICKENHALL STREET (BM) LIMITED
BIRD GATE PROPERTY LIMITED
BOND STREET (CS) LIMITED
BRUTON PLACE (BC) LIMITED
BRYANSTON GEORGE STREET LIMITED
BRYANSTON SQUARE PROPERTY LIMITED
BUCKINGHAM GATE (APARTMENT 4) LIMITED
BURLINGTON GATE (FLAT 301) LIMITED
BURLINGTON GATE (FLAT 407) LIMITED
BURLINGTON GATE (FLAT 408) LIMITED
CANARY WHARF (NPW) LIMITED
CANARY WHARF (SDS) LIMITED
CASSON SQUARE PROPERTY LIMITED
CATHERINE PLACE PROPERTY 5 LIMITED
CAVERSWALL ENGLISH CHINA COMPANY LIMITED
CHELWOOD HOUSE (GS) LIMITED
CHILTERN COURT (BS) LIMITED
CLARGES STREET MAYFAIR LIMITED
CLEARSONS LIMITED
COLINDALE PROPERTY LIMITED
CRANLEY GARDENS PROPERTY LIMITED
CROPTHORNE COURT PROPERTY LIMITED
DILKE STREET PROPERTY LIMITED
DUNCAN HOUSE (PP) LIMITED
EATON TERRACE PROPERTY LIMITED
FAREHAM STREET PROPERTIES LIMITED
FREESIA PLACE PROPERTY LIMITED
GEORGE STREET (BC) LIMITED
GLENTWORTH STREET (DH) LIMITED
GLOUCESTER ROAD (CR) LIMITED
GREYCOAT HOUSE (GS) LIMITED
GROSVENOR SQUARE (DS) LIMITED
HALKIN STREET PROPERTY LIMITED
HARROWBY STREET PROPERTY LIMITED
HOLLEN STREET (FLAT 8) LIMITED
HOLBORN (WS) LIMITED
HORSE GATE PROPERTY LIMITED
KENSINGTON GARDENS SQUARE PROPERTY LIMITED
KNIGHTSBRIDGE (BP) LIMITED
LAMONT ROAD (HS) LIMITED
LANCASTER GATE (LC) LIMITED
LEOPARD GATE PROPERTY LIMITED
LION GATE PROPERTY LIMITED
LONDON PENTHOUSE (BG) LIMITED
MERSEY VIEW PLEASURE GROUNDS LIMITED
MONTAGU STREET PROPERTY LIMITED
MONTAGUE MANSIONS (DS) LIMITED
MONTPELIER STREET (MW) LIMITED
MUNIHIRE LCL LIMITED
NORLAND PLACE (FLAT 2) LIMITED
ONSLOW GARDENS (SK) LIMITED
ONSLOW SQUARE (SP) LIMITED
ORWELL STUDIOS (MP) LIMITED
PANTHER GATE PROPERTY LIMITED
PARK LANE PLACE PROPERTY LIMITED
PARK STREET (FLAT 6) LIMITED
PETER STREET PROPERTY LIMITED
RANELAGH GROVE PROPERTY LIMITED
REDCLIFFE SQUARE PROPERTY LIMITED
RIDGMOUNT GARDENS PROPERTY LIMITED
ROSAMOND HOUSE (EC) LIMITED
ROSARY GARDENS PROPERTY LIMITED
SPARROW GATE PROPERTY LIMITED
SPRING GARDENS PROPERTY LIMITED
STANHOPE GARDENS (F6) LIMITED
SUSSEX GARDENS (FLAT 6) LIMITED
SUSSEX GARDENS (FLAT 7) LIMITED
SWAN WALK (CE) LIMITED
TIGER GATE PROPERTY LIMITED
TREBOVIR ROAD (KM) LIMITED
TURTLE GATE PROPERTY LIMITED
WHEATLEY STREET PROPERTY LIMITED
ZENITH BUILDING (FLAT 13) LIMITED
Liquidations (121)
57MG LIMITED
A M GILHOME JOINERY AND BUILDING LIMITED
AE SOLUTIONS AND SERVICES LIMITED
AGILEFINANCEUK LTD
ALLCUT MACHINE TOOLS LIMITED
AMIGO CHEM LIMITED
ARIS GP LIMITED
ARTO CHEMICALS LIMITED
ASPIRO CONSULTANCY LIMITED
ATHOL STREET HOLDINGS LIMITED
AUNT MINNIE COURSES LIMITED
AWN DEVELOPMENTS LTD
B.I.R.(PROPERTIES)LIMITED
BARNET EVOLUTION LTD
BBB TECH LIMITED
BLACKBIRD CAPITAL PARTNERS LIMITED
BLUE SEAS (CONSULTING) LIMITED
BOLD FACE MARKETING LTD
BOOSTED NETWORKS LTD
BRINKLEYS RESTAURANT SERVICES LIMITED
BROWN & GUION LIMITED
CFX ANALYSIS LIMITED
CHARLES GIBBONS LTD
CHERUB HEALTH LIMITED
CLARA PLACE INVESTMENTS LIMITED
COLERIDGE FINANCIAL LIMITED
COMM DYNAMIX LIMITED
CONSCIOUS PROPERTIES LIMITED
CORIANDER COWS LIMITED
DAVID PARKER ENT CONSULTANT LIMITED
DHARSHIVI LIMITED
DHILLON SCIENTIFIC LTD
DIGITALDREAMMEDIA.COM. LTD.
EASTERN BOWLING LIMITED
EDGBASTON ENT (EENT) LIMITED
ELIACTION HOLDINGS LTD
ELLIS MINTY LIMITED
ENVIRONMENTAL DRAIN SERVICES LIMITED
EXCEL PANDA CONSULTING LIMITED
FEMIX LIMITED
FIONA AYERS LTD
FIP CONSULTING LIMITED
FOLDRIGHT CONSULTING LIMITED
FRONT FOOT CONSULTANCY LIMITED
FWF WELDING LTD
G & D LINCOLN LTD
HB SPORTS SURFACES LIMITED
HARDACRE CONSTRUCTION SERVICES LIMITED
HEDGES IP LIMITED
HENRY THACKER LIMITED
HKD LAW LIMITED
HUGH GRIFFITHS ASSOCIATES LTD
HYAMS HOLDINGS LIMITED
I.T. SOFTWARE LIMITED
IAN WREGLESWORTH ASSOCIATES LIMITED
INDIGO SEVENTEEN LTD
INDUSTRIAL NOISE REDUCTION LIMITED
JKF ALLIANCE LTD
JTD ACCOUNTANTS LIMITED
JSK ACTUARIAL LTD
KHL CONSULTANCY LIMITED
LEMON LABS LIMITED
LIZ MCQUE LIMITED
LOZE IT SERVICES LTD
LONDON RESPIRATORY CONSULTANTS LIMITED
MARECON LTD.
MARSHGATE PROPERTIES LIMITED
MASTER YOUR DATA LIMITED
MIDLAND LINEN SERVICES LIMITED
MMC MEDICAL SERVICES LTD
MONETA CONSULTANCY HOLDINGS LIMITED
MORE THAN MOST LTD
MSO GROUP LIMITED
NEXEN PETROLEUM U.K. HOLDINGS LIMITED
NEW IDEAS INFOTECH LTD
NEWCASTLE PROPERTY MAINTENANCE LIMITED
NICA SUBSEA LIMITED
ORAAPPS CONSULTANCY LIMITED
P J PREMIUM FUNDING LIMITED
PARK24 INTERNATIONAL LIMITED
PENTRIDGE CONSULTING LIMITED
PICO CONSULTING LTD
PLAN FOR ECOLOGY LIMITED
PWG POWER SERVICES LTD
RAY ROGERS LIMITED
RESOURCING SOLUTIONS LIMITED
RETREAT RESTAURANTS LIMITED
RIMMERS OF PENNY LANE LIMITED
RUNWAYS LIMITED
SAUSAGE DOG DESIGN LTD
SAZURE INTERNATIONAL LIMITED
SEAVISION (SCOTLAND) LIMITED
SEPHRIN DEVELOPMENTS LIMITED
SIX SIDED DEVELOPMENT LIMITED
SIXTY & SIX LIMITED
SLATE-BLUE CONSULTING LIMITED
SPEEDWELL ACCOUNTING SERVICES LIMITED
SPRINGUP LTD
STARCK COMMUNICATIONS LIMITED
ST LEONARD’S PARTNERS LIMITED
THALES ANALYTICS LTD.
THUMBZUP UK LIMITED
TIM BRANDRETH CONSULTING LIMITED
TOUCHLINE ANALYTICS LTD
TRISTAR CATERING SOLUTIONS LIMITED
TYRA ENTERPRISES LTD
ULTRASNOOZE LTD
V & O RICHMOND LIMITED
VANCO GLOBAL LTD.
VANCO INTERNATIONAL LIMITED
VERNON EYECARE LIMITED
VISION IT CONSULTANCY LIMITED
WEY COMPLIANCE CONSULTING LIMITED
WILD PRODUCTIONS LIMITED
WINCHMORE CONSULTANCY SERVICES LIMITED
XARCA ENDEAVOURS LIMITED
YORKSHIRE PLANTS LIMITED
YSM SERVICES LIMITED
Winding-up Petitions (16)
AE FOOD & DRINKS LIMITED
AUTO BODY CARE LIMITED
CDE WINDOWS AND DOORS LIMITED
CLEVELAND AUTO RECYCLERS LIMITED
DOUGH&CO MILTON KEYNES LIMITED
ECOGENESIS RENEWABLES LTD
FLEMING INSTALLATIONS LTD
HACKNEY SUPERMARKET LTD
HAZEL ARMS LTD
MISTAHOU FINANCIAL GROUP LTD
OCEANA SUBSEA LTD
SEA GLASS INN LIMITED
SOUTH DURHAM GROUP LTD
ST.ANDREWS BREWING COMPANY DUNDEE LIMITED
TUFTING ENGINEERING CONSULTANTS LIMITED
Winding-up Orders (2)
IT HAPPENS LTD
POLISH TRADITIONAL LTD
What CPA can do for you
In a week where costs are rising across energy, borrowing, tax and wages, protecting your cashflow becomes critical.
Late payment risk increases when customers are under pressure. The longer invoices remain unpaid, the harder they are to recover and the greater the impact on your business.
CPA helps you stay ahead by:
• Monitoring customers and identifying early warning signs
• Providing CreditCare reports to support safer trading decisions
• Recovering overdue accounts quickly and professionally
• Protecting both your cashflow and your customer relationships
If your customers are feeling the strain, now is the time to act early.
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.