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

Wipers working overtime, a slow journey to the first job and another wet coat hanging behind the counter: it is a familiar Friday morning for many businesses across England. With more unsettled weather approaching this weekend, business owners are also trying to see through the uncertainty surrounding next week’s Budget. Today’s news brings concerns over tax, weaker retail sales and rising energy costs, alongside brighter business activity figures. For firms selling on credit, the practical priority is keeping work moving, understanding customers’ financial pressures and making sure completed jobs turn into payments.

James Salmon, Operations Director.

Key Developments

• Tax uncertainty leads the agenda: a Money.co.uk poll reports widespread concern about business viability, pricing and hiring ahead of the Budget.
• Consumers pull back: September retail sales fell 0.4%, while October consumer confidence weakened sharply.
• Business activity offers encouragement: the UK’s preliminary composite PMI rose to 53.1, beating expectations.
• Energy and markets remain unsettled: Brent crude approached $114 a barrel as shipping disruption added to inflation concerns.
• Weekend weather could disrupt trading: further rain and strong winds warrant attention to deliveries, outdoor work and customer appointments.

SME & Business Environment

Tax uncertainty leaves small businesses struggling to plan

More than three-quarters of small business leaders are delaying significant personal decisions because of tax uncertainty, according to a Money.co.uk survey. The poll found that 65% feared a tax rise could lead to closure within a year, while 57% planned to raise prices if taxes increased. Others would pause growth or hiring; business rates reform was a priority for 17%, corporation tax relief for 14% and lower employer National Insurance for 13%. These are respondents’ concerns and intentions, rather than a forecast of business closures.

Why it matters: Customers postponing investment or facing higher costs may place smaller orders, request longer terms or take longer to pay.

£70m fund targets London’s growth finance gap

The Future London Growth Fund has launched with £70m of backing from the Mayor of London and the British Business Bank. Managed by FSE Group, it will offer loans of £1m–£3m to businesses with strong growth prospects, including some that are not yet profitable. It aims to bridge the gap between conventional lending and larger venture debt deals; accompanying research found 71% of London business owners reported a profit, compared with 84% nationally.

Why it matters: Access to growth finance can support orders and investment, but suppliers should still assess a customer’s ability to meet payment commitments.

Economy & Policy

Stronger business activity contrasts with falling consumer confidence

The preliminary UK composite purchasing managers’ index rose to 53.1 in October, above September’s 52.0 and the forecast 51.7. Manufacturing recorded 52.8 and services 53.1, with readings above 50 indicating expansion. However, GfK consumer confidence fell to −24 from −13, substantially weaker than the expected −14.

Budget reports point to targeted support and difficult trade-offs

Chancellor John Healey is reportedly preparing a Budget intended to sustain confidence without major broad-based tax or spending changes. Higher bank taxes could fund short-term help with rising energy costs, alongside measures to reduce business regulation. More difficult decisions, including welfare reform, are expected to be deferred; these remain reported plans ahead of the announcement.

Tax & Government

Business disposal relief faces a further shake-up

Business Asset Disposal Relief, described in the reports as a £1bn tax break, could be significantly scaled back next week. Savings may support entrepreneurs who reinvest, create jobs and generate economic value in Britain, potentially through different capital gains tax rates or reliefs. Small business groups warn that further restrictions could disrupt retirement plans for owners who have spent years building their companies.

Competing calls for tax reform ahead of the Budget

Centre for Policy Studies economist Daniel Herring argues that the Government’s wider tax policies are harming growth and competitiveness, criticising bank taxes and higher employer National Insurance. Separately, former Bank of England chief economist Andy Haldane has called for higher taxes on online sales and a business rates review to rebalance incentives towards physical high streets. Labour MPs are also pressing for Fairer Share’s proposed annual property-value tax of 0.48%, which would increase bills for some households, particularly in London and the South East. These are policy arguments and proposals, rather than announced Budget measures.

HMRC’s debt problem illustrates the cost of waiting

HMRC faces difficulty collecting nearly £20bn in unpaid tax, according to the supplied National Audit Office report. At the end of 2025/26, 8.2m taxpayers owed £43.8bn, equivalent to 4.7% of tax receipts, with 51% of debt more than a year old. HMRC’s debt-management improvements have generated £10.7bn in additional revenue since 2021, but the ageing balance remains a challenge.

Perhaps even the taxman would appreciate a conversation about the CPA Overdue Account Recovery Service and its 84% resolve rate. The serious lesson for SMEs is familiar: allowing overdue accounts to age makes recovery harder.

Questions raised over professional services spending

Government spending on professional services rose by £600m in 2024/25. Critics question whether some consultancy work is being reclassified following a pledge to cut consultancy costs by 2025/26. The concern centres on spending transparency, rather than an established finding that contracts have been improperly classified.

Retail & Consumer

Retail sales fall more sharply than expected

UK retail sales volumes fell 0.4% in September, against expectations of a 0.1% decline, following a revised 0.7% August increase in the supplied ONS report. Food sales fell 0.4%, clothing and footwear 0.9%, household goods 0.5% and non-store retailing 2.2%; fuel sales rose 2.2%. Warm weather weakened demand for autumn clothing, although sales across the third quarter rose 0.7%, contributing 0.03 percentage points to economic growth.

Employment & Industry

Barclays links 5,000 job cuts to AI

Barclays says AI will enable it to remove 5,000 jobs this year, around 5% of its workforce. About 1,000 roles have already gone, with the remainder expected by year-end. Its disappointing third-quarter results included a 19% year-on-year fall in fixed-income and currency trading revenue.

Company results reveal an uneven trading picture

Volvo Car reported a SEK5.6bn quarterly operating loss and plans for around 2,500 job cuts, while Volvo AB’s truck orders increased 26%. L’Oréal beat sales expectations, Holcim raised earnings guidance, and Fanuc and Honeywell Technologies increased their outlooks. Eni also announced an extraordinary dividend and a larger share buyback, illustrating the contrast between energy producers and businesses absorbing higher fuel costs.

International & Trade

UK challenges proposed EU technology restrictions

Britain has raised concerns that proposed EU cloud and AI rules could exclude UK digital companies from contracts. The debate includes requirements covering providers’ physical establishment, ownership and control under the Cloud and AI Development Act. The UK argues that excluding British suppliers would conflict with the post-Brexit trade agreement; the rules remain under discussion.

Energy disruption adds to supply-chain pressure

Reports of further tanker attacks in the Strait of Hormuz have increased concern over oil and LNG supplies. Asian LNG prices reached $30.7 per million British thermal units, while European gas prices were around €90–€92/MWh in the supplied reports. Claims that vessel traffic had halted should be treated as attributed Iranian statements, rather than confirmation that every transit had stopped.

Weather & Business Resilience

Weekend outlook: another unsettled spell

The Met Office forecasts widespread rain on Saturday, 24 October, as Storm Boelo moves into the northwest, with the heaviest rain in the west and strengthening winds, especially in northern and western areas. Sunday, 25 October, brings sunny spells and showers, with heavier showers and very strong winds in the north. Businesses should check local forecasts and warnings before travelling or scheduling outdoor work. Met Office

Europe’s summer heat carries a substantial human and economic cost

Research led by Imperial College London estimates around 50,000 heat-related deaths across European cities this summer, including 4,354 in the UK. Almost two-thirds of the overall estimated toll was attributed to climate change; these are modelled estimates, rather than final official death registrations. Separately, Bloomberg Economics estimated that heat reduced EU GDP by around 0.17%, or nearly €17bn, between April and September, with disruption affecting transport, infrastructure and productivity.

CPA Member Notice

PHP disruption: an apology to CPA members

Following yesterday’s PHP-related disruption, we apologise to members who experienced difficulty accessing CPA’s main website. Everything should be up and running now.

Our members’ area remained operational and was unaffected. Please bookmark members.cpa.co.uk so you can access it directly, independently of our main public facing website.

Thank you for your patience and understanding.

Global Market Summary

Equity markets

UK and Europe: Shares remained under pressure following Thursday’s losses. Concerns over AI investment, energy costs and France’s political and fiscal position outweighed support from stronger UK business activity. Eurozone composite PMI slowed to 51.9, while French activity contracted.

United States: The Nasdaq suffered its sharpest fall since June as investors questioned the scale and financing of AI spending. Meta and semiconductor shares were prominent casualties, while the marginally higher Dow showed that losses were concentrated rather than universal. Friday morning futures suggested a tentative recovery, with Nasdaq futures up 0.44% and S&P futures up 0.07%.

Asia: Early falls were partly reversed: the Nikkei ended down 0.34%, the Hang Seng gained 0.69% and South Korea’s Kospi recovered to finish 0.30% higher. Reported Chinese state-linked ETF buying supported sentiment.

Currencies

Sterling traded at $1.3383 against the dollar. Against the euro, the supplied EUR/GBP rate of £0.8363 implies approximately €1.1957 per £1. Sterling outperformed the euro as stronger UK PMI figures contrasted with softer eurozone data and French uncertainty, although weak retail sales and Budget risk remained concerns.

For SMEs: Dollar-priced imports remain sensitive to sterling weakness, while a firmer pound against the euro can help purchasing costs but reduce the sterling value of euro receipts.

Commodities and borrowing conditions

Oil rose as tanker attacks increased supply concerns. Gold recovered after briefly falling below $4,000, while wider credit spreads indicated greater caution among lenders and investors.

Central banks continue to balance growth against energy-driven inflation. The supplied economist survey points to an ECB pause followed by a possible December increase, while US business surveys, consumer inflation expectations and France’s expected Moody’s decision remain events to watch.

Why it matters: Higher energy costs and cautious lending can put pressure on working capital even where order books remain healthy.

Insolvency Watch

Winding-up Petitions (50)

• AMBER ESTATE MANAGEMENT LIMITED
• BATTYE’S (CASTLEFORD) LIMITED
• BIG MAN REMOVALS LTD
• BLUE BELL ACCIDENT MANAGEMENT (SOUTH) LTD
• CLAXON LIMITED
• COMMON BOND LTD
• CONNAUGHT COFFEE LIMITED
• CONVEXON LIMITED
• DEVRAN N16 RESTAURANT LTD
• DYER & CO HOLDINGS LTD
• EXPERT DIGITAL SERVICES LTD
• FACADE GROUP LTD
• HBK CONSULTANTS LIMITED
• HICKENS UTILITY SERVICES LTD
• HOCKLEY DEVELOPMENTS (DUPONT GARDENS) LIMITED
• I CAN PARK AND RIDE LTD
• IBB TRADERS LTD
• IISAA LIMITED
• IKON RESIDENCE LTD
• IN ENGAGEMENT LTD
• JOHN DAVIES AGRICULTURAL AND PLANT CONTRACTOR LIMITED
• KH FELTHAM 1 LTD
• KPT HATTON GARDENS LTD
• LNP GROUP LTD
• LO – MAX ENTERTAINMENT LIMITED
• M GROUP BUILD LIMITED
• MASTER PLASTICS (SW) LIMITED
• MERCURY CAPITAL GROUP LTD
• MYPAY LIMITED
• P & J TRANSPORT LIMITED
• PARAMA E LTD
• PARTNERSHIP EXPO LIMITED
• PENISTONE SCAFFOLDING LIMITED
• PENNYWISE PAYROLL LTD
• PINCER MOVEMENT LIMITED
• PROGRESS SALES LIMITED
• QMA ANALYTICS LTD
• RAMLA INVESTMENTS LIMITED
• RTL SOLUTIONS LTD
• SABA SECURITY & CLEANING LTD
• SAGIENT LTD
• SMILESTONES LTD
• SPECIAL INTEGRATED DESIGN LIMITED
• SPORT SHARES LIMITED
• STEEL CITY FLOORING LTD
• THE WHITE BAY GROUP LTD
• TRIPLICAR HOLDINGS LIMITED
• VASAVE BUSINESS SOLUTIONS LTD
• YYUAN TRADING LIMITED
• YYX CONSULTING LTD

Keeping cash moving when the road ahead is unclear

You cannot control the weather or next week’s Budget, but you can improve visibility over the money your business is owed. Review overdue accounts, confirm payment dates and check whether customers’ circumstances have changed before extending further credit.

CPA’s CreditCare credit reports, debtor monitoring and credit control support help members make informed decisions. Where invoices remain unpaid, the CPA Overdue Account Recovery Service helps businesses pursue payment while preserving customer relationships.

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

.