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

UK businesses face another reminder today that financial pressure rarely stays in one place. Government borrowing has exceeded forecasts, energy costs have forced Ineos to halt production at three major UK chemical plants and growing businesses say employment costs are restricting recruitment. At the same time, uncertainty over tax policy and continued insolvency activity reinforce the need for SMEs selling on credit to understand customer exposure, monitor changing payment behaviour and act quickly when invoices become overdue.

James Salmon, Operations Director.

Key Developments

• UK borrowing reached £18.3bn in August, £3.5bn above the OBR forecast, increasing pressure ahead of the October Budget. Official ONS data also puts year-to-date borrowing £8.1bn above forecast.
• Ineos is idling three Hull chemical plants, blaming UK gas prices which it says are around 12 times US levels.
• Hiring costs remain a constraint, despite strong recruitment intentions among fast-growing UK companies.
• Tax uncertainty continues, with proposals covering income tax, capital gains, business rates and high-value properties attracting attention.
• 28 insolvency notices have been recorded today: four administrations, 20 liquidations and four winding-up petitions.

Economy & Policy

UK borrowing reaches £18.3bn

Public sector borrowing reached £18.3bn in August, £2.9bn higher than a year earlier and £3.5bn above the Office for Budget Responsibility’s forecast. Borrowing during the financial year to August stood at £77.3bn, £8.1bn above the OBR forecast, according to the Office for National Statistics.

The figures increase fiscal pressure ahead of the 28 October Budget, particularly while debt-interest and public-service costs remain sensitive to inflation and borrowing costs.

Why it matters: Greater pressure on the public finances increases uncertainty around tax and spending decisions, making forward planning harder for SMEs already managing tight margins and slower customer payments.

OECD calls for stronger UK action on debt

The OECD has urged the UK to make stronger efforts to restrain spending and reduce debt, while forecasting economic growth of 1.1% in 2026 and 1.0% in 2027. Inflation is expected to remain above the 2% target.

For businesses, weak growth combined with persistent inflation creates an uncomfortable combination: customers remain cost-conscious while financing, wages and operating expenses stay elevated.

Energy & Costs

Ineos suspends production at three Hull plants

Ineos is temporarily halting production at three chemical plants in Hull, saying extraordinarily high UK energy costs have made production uneconomic. The company says European gas prices are around 12 times US levels and eight times the cost of Chinese coal-based production.

The sites manufacture acetic acid, acetic anhydride and ethyl acetate, materials used across pharmaceuticals, clothing, cosmetics, detergents and construction. Ineos describes the facilities as Europe’s last world-scale acetyls units.

The disruption demonstrates how energy costs can quickly move beyond utility bills and into supply availability, employment, pricing and customer viability.

Why it matters: Suppliers to energy-intensive businesses should watch customer exposure carefully because sustained cost pressure can reduce margins, disrupt orders and ultimately affect payment performance.

Net zero costs remain under scrutiny

The Institute for Fiscal Studies has warned that the Government’s target to decarbonise the electricity grid by 2030 could increase pressure on energy bills if implementation costs rise too quickly.

The report follows concerns highlighted by the National Audit Office over the cost of achieving the 2030 target.

For businesses, the central issue is less the political debate around the target than whether energy costs remain competitive and predictable.

Employment & Labour

Hiring costs constrain fast-growing businesses

A survey by Enterprise Britain suggests that three-quarters of UK “super scalers” could create at least 10% more jobs if barriers to recruitment were reduced.

Some 93% of surveyed leaders said they expect to increase headcount, but companies identified employment costs and difficulties finding suitable talent as major constraints.

Enterprise Britain is calling for measures including shorter notice periods and changes to non-compete arrangements.

Why it matters: Higher employment costs reduce working-capital flexibility, particularly for rapidly expanding companies that may simultaneously need more staff, inventory and supplier credit.

Tax & Government

CenTax highlights differences in tax rates among highest earners

Research from the Centre for Analysis of Taxation says only around 10% of the wealthiest 0.01% pay an effective tax rate equivalent to the 47% top income-tax rate, largely because some income is received as capital gains.

CenTax has proposed bringing capital gains and income-tax rates closer together, estimating this could raise £19.7bn by 2030. It has also proposed applying employer National Insurance contributions to partnership profits at LLPs.

Any such changes would ultimately depend on government decisions at the Budget.

Liberal Democrats propose £17bn income-tax reduction

Liberal Democrat leader Sir Ed Davey has proposed raising the personal allowance to £15,000 and the higher-rate income-tax threshold to £56,000, with the party putting the cost at around £17bn.

The Liberal Democrats say the measures could be funded from economic growth associated with their proposal for the UK to rejoin the EU single market and customs union. The party envisages implementing the changes by 2034 if elected.

Mansion tax already influencing property pricing

Tax Policy Associates says there is evidence of property sales clustering immediately below the forthcoming £2m high-value council tax surcharge threshold.

Its analysis found a significant increase in transactions immediately below £2m and fewer sales at exactly £2m. The tax is scheduled to begin in April 2028, with annual charges beginning at £2,500.

Reports that the threshold could eventually be reduced to £1.5m have also attracted attention. Tax Policy Associates estimates that such a change could bring around 160,000 additional properties into scope.

Business rates relief offers limited help in central London

Proposals to increase the small business rates relief threshold from £12,000 to £17,096 could provide support to many smaller high-street businesses.

However, analysis cited today suggests only around 3.8% of premises in Westminster would qualify, highlighting the particular pressure faced by businesses operating in high-rental-value locations such as Soho and the West End.

Why it matters: Rates, rents, wages and energy costs all compete for the same cash available to pay suppliers, meaning creditors should remain alert to sectors and locations experiencing several cost pressures simultaneously.

International & Trade

UK warns proposed EU industry rules could affect British suppliers

Prime Minister Andy Burnham has raised concerns about proposed EU measures that would give European manufacturers greater preference in public procurement and subsidy programmes.

The UK is concerned that such measures could disadvantage British manufacturers and businesses operating within European supply chains.

Burnham discussed competition and industrial policy with European Commission President Ursula von der Leyen while attending the UN General Assembly. An official Downing Street account said both sides discussed unfair competition and global industrial overcapacity.

Why it matters: Changes to procurement and sourcing rules can alter order volumes quickly, particularly for smaller manufacturers dependent on a limited number of major European customers.

Trump praises Burnham but criticises Chagos agreement

Donald Trump and Andy Burnham held their first face-to-face meeting in New York, with Trump describing the UK prime minister as a “natural business person” whom he believed he could work with.

The meeting was cordial overall, although Trump reiterated opposition to the UK’s proposed Chagos Islands agreement and described it as a “terrible deal”. Burnham said the two leaders had established a good connection and discussions also covered trade, Ukraine and the Falkland Islands.

For UK businesses, the commercial significance lies primarily in the wider US-UK economic relationship and the ability of the two governments to manage disagreements without disrupting trade.

UK announces new centre to counter hostile disinformation

Burnham used his first UN General Assembly address as prime minister to announce a new National Center for Information Defense intended to identify and counter hostile state information campaigns.

He also called for greater international cooperation over AI transparency and safety. Downing Street separately confirmed that Burnham and Ursula von der Leyen discussed AI safety, Russian hybrid activity and disinformation.

EU links further Ukraine funding to reforms

The European Union has told Ukraine that further disbursements from a €90bn support package will depend on progress with institutional and economic reforms, including tax collection and tackling the shadow economy.

Ukraine has sought accelerated funding to maintain financial stability as the war continues.

Industry & Investment

AI model prices fall as competition intensifies

Anthropic and OpenAI have released lower-cost versions of their frontier AI models, increasing competition in a rapidly developing market.

According to today’s report, Claude Opus 5.5 is priced around 40% below Opus 5, while GPT-6 Sol and GPT-6 Luna are approximately half the price of their predecessors.

Lower AI costs could make automation and advanced analytical tools accessible to a wider range of SMEs rather than remaining concentrated among large companies.

Wealthy individuals reassess UK private-club memberships

Some internationally mobile wealthy individuals are reportedly cancelling memberships of UK private clubs amid concern that attendance records could become relevant when HMRC assesses UK tax residence.

The development follows changes to the former non-dom regime, which reduced the period of preferential treatment for qualifying foreign income and gains.

The immediate implications for most SMEs are limited, although businesses serving high-net-worth international customers may see changing spending patterns.

Global Market Summary

Markets are being driven by an unusual combination of falling oil prices, stronger European economic data, AI enthusiasm and continuing geopolitical uncertainty.

The FTSE 100 closed Tuesday 0.3% lower at 10,708.33, but had recovered 0.28% to 10,738 this morning. The Euro Stoxx 50 was up 0.19% at 6,337, while the CAC 40 gained 0.24% to 8,175. Germany’s DAX slipped 0.11% to 25,550 despite encouraging German PMI data. The supplied market data describes the STOXX Europe 600 as moving higher this morning, led by banks and consumer shares, but does not provide a precise index level or percentage move.

In the US, technology remained the strongest area. The Nasdaq Composite rose 0.45% to a record 27,244.28, while the S&P 500 was effectively flat at 7,764.64. The Dow Jones fell 0.36% to 51,863.69 as financial stocks came under pressure amid concerns about possible disruption from AI-driven financial services.

Asian markets were mixed. The Hang Seng fell 1.0% to 24,834, while the Nikkei 225 remained at 65,018.95 with Japan closed for a public holiday.

The strongest European economic signal came from flash PMI data. The Eurozone composite index reached 53.1, a 41-month high, while Germany recorded 53.8 and France 51.2. This supported European shares but also reinforced questions over how quickly central banks can loosen policy.

Market drivers

Oil has been particularly important. Hopes of progress in US-Iran discussions and Saudi Arabia restarting its East-West pipeline have reduced immediate concerns about supply disruption. At the same time, markets are awaiting talks between Donald Trump and Xi Jinping, with trade, tariffs, AI technology and rare-earth supplies among the issues in focus.

The OECD has also increased its inflation projections for 2027 and argued that further monetary tightening could be necessary in some economies.

Currencies

Sterling softened against the dollar, with GBP/USD at 1.3308, down 0.28%. Against the euro, sterling was broadly stable at GBP/EUR 1.1651, down 0.03%.

A stronger dollar reflects expectations that US interest rates may need to remain higher for longer.

For UK SMEs importing goods priced in dollars, weaker sterling can increase costs even where underlying commodity prices are falling.

Commodities

WTI crude fell 4.64% to $90.20 per barrel, extending a six-session decline of more than 9%. Brent stood near $99.68, up 0.44% on the session but substantially below recent highs.

Gold fell 0.98% to $4,317.89 an ounce, while silver dropped 2.54%. Copper was broadly unchanged.

For businesses, lower oil and gas prices offer some potential relief on transport and energy costs. However, current prices remain elevated enough that energy-intensive businesses continue to face significant pressure, as the Ineos shutdown illustrates.

Insolvency Watch

Administrations (4)

• CAMBIUM NETWORKS, LTDHAT AND HOME LIMITED
• HOOKSTONE GROUP LTD
• JOSEF GARTNER GMBH

Liquidations (20)

• ASHFIELD ESTATES LIMITED
• CHEMICAL PROCESS SOLUTIONS LIMITED
• DEKKA LIMITED
• FARRAGO STORES LIMITED
• FOLEY TECHNOLOGIES LIMITED
• G.F. HOLDING LIMITED
• G-NEWG LIMITED
• GAT DEVELOPMENTS (MIDLANDS) LIMITED
• HORIZON DEVELOPMENTS HOLDINGS LTD
• I G WINES LTD
• KENSINGTON MORTGAGE SERVICES LIMITED
• MOCKINGBIRD CATERING LIMITED
• P2 BIDCO LTD
• PARTY INGREDIENTS CATERING SERVICES LIMITED
• PREMIER OIL BARAKUDA LIMITED
• S.WARWICK & SON LIMITED
• SEARCYS 1847 CHAMPAGNE BAR LIMITED
• SHIRE HOMES (ANGLIA) LIMITED
• WINE DEVELOPMENT LTD
• XANCAP LIMITED

Winding-up Petitions (4)

• DF TEMPLE LTD
• MJHM ENGINEERING LTD
• QUAYMILE LIMITED
• THE PATTERNED CONCRETE DRIVEWAY CO. LIMITED

When rising costs become payment risk

Today’s news shows why credit control cannot be separated from wider business conditions.

An energy increase, higher wage bill or loss of a major contract may initially look like someone else’s operational problem. But when that business is your customer and you have supplied goods or services on credit, those pressures can ultimately appear in your ledger as slower payments, repeated requests for extensions or an overdue invoice.

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 matters. An unpaid invoice is effectively money your business has already earned but cannot yet use to pay wages, suppliers, tax or fund its next order. CPA’s approach is built around improving cashflow while maintaining the commercial relationships businesses rely on, consistent with CPA’s core principles of ethical and considerate credit management.

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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