UK Business News Today: 24 July 2026 | Economy, Markets & Insolvencies

UK businesses end the week with a mixed economic picture. Hospitality venues have been promised a 20% business-rates reduction, retail sales and consumer confidence have improved, and the Chancellor says companies need breathing space from rising costs. However, Brent crude’s move above $100 a barrel has revived inflation and interest-rate concerns, pushed mortgage pricing higher and increased the risk that already-stretched customers will take longer to pay. For SMEs selling on credit, the central message is clear: stronger sales are welcome, but cashflow discipline remains essential while borrowing, energy and household costs are moving upwards.

James Salmon, Operations Director.

Key Developments

• Nearly 32,000 hospitality venues in England are set to receive a 20% business-rates reduction from April.
• Brent crude moved above $100 a barrel as conflict spread to the Red Sea, increasing inflation and interest-rate concerns.
• UK mortgage rates have risen as lenders respond to higher funding costs and reduced expectations of central-bank cuts.
• Retail sales volumes and consumer confidence improved, helped by hot weather, the World Cup and promises of help with living costs.
• Today’s insolvency notices include 6 administrations, 12 liquidations and 82 winding-up petitions after deduplication.

Tax & Government

Hospitality venues to benefit from 20% rates cut

The Government has announced a 20% reduction in business rates for nearly 32,000 hospitality venues across England, including pubs, clubs and live music venues, from April 2027. Downing Street estimates that a typical pub will save around £1,100 a year. Funding is expected to come partly from reviewing reliefs available to businesses considered not to contribute positively to local communities and from stronger tax-compliance enforcement involving online marketplaces. Further reform of the business-rates system is expected to be considered at the next Budget.

Lord Blunkett warns over land value tax

Lord Blunkett has warned that replacing council tax and stamp duty with a land value tax could take years to implement and create substantial political difficulties. The tax would be calculated on the undeveloped value of land rather than the value of buildings on it. Modelling cited from Tax Policy Associates suggests that some homeowners, particularly in London and the South East, could face annual charges exceeding £50,000. Prime Minister Andy Burnham has previously said he is persuaded by arguments in favour of the policy.

Badenoch challenges Prime Minister over tax rises

Conservative leader Kemi Badenoch has urged Andy Burnham not to raise taxes to fund his policy programme. She argued that unfunded commitments would ultimately place additional pressure on families, entrepreneurs and employers. Badenoch warned that taxes presented as targeting the wealthy could also deter investment in factories, jobs and productive capacity.

“No10 North” opens in Manchester

A new government base in Manchester, described as “No10 North”, opens today. Andy Burnham says the office will accelerate devolution and reduce the concentration of political and economic decision-making in London. The Prime Minister will chair the first meeting of a revived National Economic Council there, with a focus on improving growth.

Burnham seeks a counterweight to the Treasury

The Prime Minister is reportedly bringing in advisers with economic expertise to strengthen Downing Street’s influence over tax and spending decisions. The move reflects Burnham’s desire to shift control away from traditional Westminster structures and reduce the Treasury’s dominance over economic policy. His challenge will be to create a more devolved approach while retaining clear fiscal responsibility and consistent decision-making.

Economy, Interest Rates & Household Finances

Bank of England could consider a rate rise

City economists have warned that the Bank of England may become more cautious as higher oil prices threaten to push inflation upwards. The Monetary Policy Committee is widely expected to leave the base rate at 3.75% at its next meeting, although some analysts believe a later 0.25 percentage-point increase is possible. ING economist James Smith suggested that a rise would become more likely if inflation reached 4%, twice the Bank’s target. UBS said that any increase could be reversed relatively quickly if the weak economy subsequently required rate cuts.

UK mortgage rates rise again

Average UK mortgage rates have returned to the levels seen a month ago as renewed Middle East tensions raise lenders’ funding costs. The five largest high-street banks are among those increasing rates on new fixed-rate deals. Bank of England projections suggest that more than five million homeowners could face higher monthly repayments by the end of 2028. Oil prices around $100 a barrel have reduced expectations of near-term interest-rate cuts and revived concerns about inflation.

Why it matters: Higher mortgage payments reduce household disposable income and can weaken demand for non-essential goods and services, while owner-managed businesses may also face greater personal financial pressure.

Chancellor says businesses need breathing space

Chancellor John Healey has acknowledged the effect of rising energy, labour and supply-chain costs on UK businesses. Addressing City of London leaders, he said companies need breathing space and promised a closer relationship between business and government. His five priorities include fiscal discipline and supporting growth across all UK regions. Healey also said the Government intends to place the City at the heart of the economy.

Consumer confidence improves in July

GfK’s consumer-confidence indicator rose to minus 17, returning to levels last seen in January. All measures tracked by the survey improved, including expectations for the general economy and intentions to make major purchases. The World Cup and the Prime Minister’s promises of help with living costs appear to have improved the national mood. However, renewed increases in oil, mortgage and energy costs mean the recovery in confidence may be fragile.

Heatwave costs economy £1.15bn

Research from the London School of Economics’ Grantham Research Institute estimates that June’s record-breaking heatwave cost the UK economy £1.15bn and resulted in 24 million lost working hours. Workers lost an average of 0.47 hours during the final week of June. The findings demonstrate that extreme weather can create meaningful productivity losses even when some consumer-facing sectors benefit from higher demand.

Retail, Hospitality & Consumer Spending

UK retail sales strengthen in June

UK retail sales volumes rose by 4.2% in June, compared with 3.5% in May. Hot weather and spending associated with the FIFA World Cup supported demand. The figures indicate that consumers remained willing to spend in selected categories despite pressure from household bills and borrowing costs.

Pub shares fall despite World Cup boost

Shares in Marston’s, J D Wetherspoon and Mitchells & Butlers fell after trading updates showed that World Cup demand had not fully offset the effects of severe heat and higher costs. Rising oil prices are a further concern because they may increase operating expenses and reduce customers’ disposable income. The market reaction highlights how a temporary sales boost can be overwhelmed by persistent cost inflation.

Energy, Costs & International Risk

Brent crude rises above $100

Brent crude moved above $100 a barrel for the first time since May as geopolitical tensions intensified. President Trump said he was considering a major attack on Iran, while Houthi forces struck two Saudi Arabian oil tankers in the Red Sea. The US President said Iran would be held responsible for further attacks. The developments have increased concerns about the security of global oil and shipping routes.

ECB holds rates but discusses a possible increase

The European Central Bank left its key interest rate unchanged at 2.40%. Christine Lagarde said some members had asked whether a rate increase should be considered and warned that higher energy prices could create renewed inflation pressure. Markets are therefore becoming more alert to the possibility of a September increase.

BAE Systems warns over UK defence readiness

BAE Systems chief executive Dr Charles Woodburn has said that the risk of foreign attack is the highest he has seen in his lifetime. He welcomed recent increases in defence spending but said considerably more would be required to meet the commitment to spend 3.5% of GDP on defence by 2035. He also warned that autonomous lethal weapons may soon be used by countries that do not share the UK’s policy of retaining human control. Woodburn highlighted the rapid development of drones, counter-drone systems and autonomous warfare in Russia and Ukraine.

Weekend weather outlook

The Met Office says the UK can expect some rain this weekend, although conditions will vary considerably by region. Saturday should remain warm and largely dry across London and parts of southern England, with London forecast to reach around 29°C. Sunday is expected to be cooler, with a greater chance of showers in some areas; London is forecast to reach around 25°C.

International Trade & Corporate News

US imposes tariffs on the UK and 59 other countries

The Trump administration has imposed tariffs of between 10% and 12.5% on goods from 60 countries, including Britain, Japan and Mexico. The US says the affected countries have not done enough to enforce bans on goods made using forced labour. The measures took effect as a separate 10% global levy expired. The policy follows repeated changes to US tariffs since the Supreme Court struck down their principal legal justification in February.

US jobless claims fall to 187,000

Initial claims for unemployment benefit in the US fell to 187,000, their lowest level since 1969. The unemployment rate stood at 4.2% in June. However, some economists have suggested that the rate partly reflects a reduction in the size of the labour force rather than a substantial increase in employment.

EU fines Google €890m

The European Union has fined Google €890m for allegedly displaying its own services more prominently in search results and restricting access to alternative apps through Google Play. The penalty follows the European Court of Justice’s decision earlier this month to uphold a separate €4.1bn fine imposed in 2018 over restrictions affecting Android competitors.

Intel reports fastest growth in 15 years

Intel reported quarterly revenue of $16.1bn, an increase of 25% from a year earlier and its fastest growth in 15 years. Data-centre and AI-related sales rose by 59% to $6.3bn. The company expects third-quarter revenue of between $15.8bn and $16.8bn and has increased its planned annual expenditure from $18bn to $20bn.

Musk predicts rapid AI and robotics disruption

Elon Musk has predicted that artificial intelligence will surpass human intelligence within five years and that workplace robotics could make money effectively meaningless within a decade. He also predicted serious civil conflict in Britain within 20 years. The claims underline Musk’s belief that AI will eventually control a large proportion of economic and social activity, although such long-range forecasts remain highly speculative.

EasyJet says booking confidence is returning

EasyJet says customers are becoming more comfortable booking further in advance, improving operational and revenue predictability. Pre-tax profit for the quarter ending in June was £85m, ahead of analyst estimates of about £80m but 70% below the £286m reported a year earlier. The airline is also subject to competing takeover interest from Castlelake and Apollo Global Management, with Apollo’s 715p-a-share proposal currently supported by EasyJet.

McCormick chooses London for secondary listing

McCormick & Co has selected London as the location for a secondary listing after agreeing to combine with Unilever’s food business. The decision strengthens London in its long-running competition with Amsterdam for major international listings. McCormick will establish an international headquarters in the Netherlands, while Unilever’s food operations will remain firmly rooted there.

Global Market Summary

Global markets were dominated by two developments: the rise in oil prices above $100 a barrel and a sharp reassessment of the amount being spent on artificial intelligence infrastructure. European markets showed modest resilience, while Wall Street and Asian technology shares came under substantial pressure.

UK and European markets

The FTSE 100 opened 0.24% higher at 10,664.28. The STOXX Europe 600 rose 0.34% to 641.43, the Euro STOXX 50 gained 0.56% to 6,244.81, Germany’s DAX rose 0.64% to 24,921.85 and France’s CAC 40 increased 0.24% to 8,319.40.

European markets were supported by tentative bargain-hunting despite higher oil prices and bond yields. STMicroelectronics fell after issuing weaker-than-expected third-quarter revenue guidance, while Nestlé suffered its steepest decline since March 2020 after results failed to meet elevated investor expectations.

The ECB held its main refinancing rate at 2.40%, but indications that policymakers may consider a September increase kept attention firmly on energy-driven inflation.

United States

The S&P 500 fell 1.2% to 7,408.30 and the Nasdaq 100 dropped 1.9% to 28,454.81. The Dow Jones closed at 51,711.65.

Alphabet fell 6.4%, erasing around $265bn in market value, after raising its annual capital-expenditure forecast to as much as $205bn. Investors are increasingly questioning when enormous spending on AI infrastructure will produce adequate returns. Tesla’s results added to the pressure on major technology shares.

Higher oil prices also pushed US government bond yields upwards and increased expectations that the Federal Reserve may raise rates rather than cut them.

Asian markets

Asian markets followed Wall Street lower. Japan’s Nikkei 225 fell 2.73% to 64,611.15 and Hong Kong’s Hang Seng declined 1.12% to 24,929.06. The Shanghai Composite fell 1.61% to 3,814.20, while Australia’s ASX 200 lost 0.75% to 8,772.31.

South Korea suffered the sharpest falls, with the Kospi dropping by as much as 6.1%. Samsung and SK Hynix each fell by more than 7%, prompting the Korea Exchange temporarily to halt programme selling.

Market drivers

The dominant influence was the widening Middle East conflict. Houthi attacks on Saudi oil tankers, threats of further US military action against Iran and disruption to regional exports pushed Brent above $100. Investors also reacted to new US tariffs on China and growing doubts about returns from AI spending.

Higher energy prices are increasing inflation expectations across the US, UK and eurozone. This has driven government bond yields higher and reduced expectations of near-term rate cuts.

Currencies

The US dollar strengthened as investors sought safer assets and anticipated higher US interest rates. Sterling remained relatively resilient, although analysts warned that its summer strength may owe more to investment flows and market positioning than to a significant improvement in UK economic fundamentals.

GBP/USD was under modest pressure as the dollar strengthened. EUR/GBP remained near recent lows, although some analysts expect the euro to recover if the ECB moves towards higher rates.

Commodities

Brent crude traded around $98.81 on Friday morning after rising above $100 and gaining roughly 12% over the week. WTI crude traded below $91 after closing around $92.19 on Thursday, a daily rise of 6.2%.

European natural-gas prices were heading for a fourth consecutive weekly increase and had risen by more than 40% during July.

Gold fell to around $4,020 an ounce after declining 2% on Thursday. Expectations of higher interest rates reduced the attraction of the non-yielding metal, although continued inflows into gold-backed funds suggested some investors were buying after the decline.

What this means for SMEs: Oil and borrowing costs are now moving in the wrong direction at the same time. Businesses should review fuel surcharges, energy exposure, customer credit limits and whether existing payment terms still reflect the risk and cost of supplying on credit.

Insolvency Watch

Administrations (6)

• ABBEYGLEN (CANNING ROAD) LIMITED
• ABBEYGLEN PROPERTIES (CASTLEMAINE) LIMITED
• ADMIN BUSINESS SOLUTIONS LIMITED
• DACC EUROPE LIMITED
• MEASURABLE LTD
• SMARTER RECRUITMENT CONSULTANCY LTD

Liquidations (12)

• 99W LIMITED
• AGMAN SENIOR FINCO LIMITED
• BC INVESTCO 1 LIMITED
• BRADFORD DANIELS LIMITED
• EXCELLENTIA69 SPECIAL SERVICES LIMITED
• HEATHERSOFT LTD
• PARKCLASS LIMITED
• RYANS CONSTRUCTION DEVELOPMENT & MAINTENANCE LIMITED
• SHREWD UNISONS LIMITED
• SKINNER ASSOCIATES LIMITED
• SNP SOLUTIONS LTD
• TOGETHER ASSET BACKED SECURITISATION 2021-CRE2 PLC

Winding-up Petitions (82)

• 2LMP LTD
• A&M ALL REPAIRS LTD
• AA XPRESS LTD
• AB RAVENSCROFT GROUP LIMITED
• AMECO LEISURE GROUP LIMITED
• AMECO PROPERTIES LIMITED
• ANNETTE LIMITED
• AVONDALE METALS LTD
• BARRIE DESIGNS LTD
• BASICFRAME INC LTD
• BRADCOT UK LTD
• BROOMFIELD JUNC LIMITED
• BSC PATHWAYS LTD
• CARBON DESIGN AND BUILD LIMITED
• CHARM BARS LTD
• CHATHA KENT LIMITED
• CHRISTOPHER MCDONAGH LTD
• CHURCHIL MANAGEDSERVICES AND BUSINESS DEVELOPMENT LIMITED
• COULTER ELITE RESOURCING LIMITED
• CROSS LOGISTICS SOLUTION LTD
• CSS FACILITIES SERVICES LTD
• DAVMAY 5 LIMITED
• DEE&TEE CARE AGENCY LTD
• DIP (BATLEY) LTD
• DPK RENOVATIONS & POLISHING LIMITED
• DRIVE PERSONNEL LIMITED
• EASTERN TECHNOLOGY SOLUTIONS LIMITED
• ELLIOT CHARLES HOLDINGS LIMITED
• EQUINOX GROUP LIMITED
• EVO NUTRITION & HEALTH LTD
• F15549974 LTD
• FG CONNECT LIMITED
• FIRST STEP SOLUTIONS LTD
• GRAND OPENINGS LIMITED
• GREENFIELDS FUNERAL SERVICES LIMITED
• HILLMEAD JOINERY (SWINDON) LIMITED
• HOTEL LUTON LTD
• ICONIC FACILITIES MANAGEMENT LTD.
• ISTANBUL KEBAB HOUSE SAVURMA LTD
• JJXG LOGISTIC LTD
• KWIL LEGAL SERVICES LTD
• LONDON SMILING LIMITED
• LRG CORPORATION LTD
• LYSIS GAMING COMPLIANCE LTD
• MARIUSC LTD
• MC CONSTRUCTION INTERIORS LTD
• MIDAS CARE SOLUTIONS LTD
• MILES MANAGEMENT LIMITED
• MILESTONE786 LTD
• MULBERRY DESPATCH LTD
• MWC WINDOWS LIMITED
• MY SOLUTION GROUP LTD
• NEAR AND FAR LONDON LTD
• NET LETTINGS LTD
• NEW HORIZON FILMS LTD
• OPAL CONTRACTING LTD
• P&S PROPERTIES (SOUTH EAST) LTD
• P15543007 LTD
• PAISLEY SITE SERVICES LTD
• PART AND COMPANY LIMITED
• PBK BOXING LIMITED
• PLASTERLINK LTD
• QUICK CAB SERVICES LTD
• REALSERVERS LIMITED
• RENEW CONSTRUCTION SERVICES LIMITED
• SALLY FAIRALL & ASSOCIATES LIMITED
• SH13 LTD
• SPAGHETTI TREE RESTAURANTS LIMITED
• STAM (LONDON) LIMITED
• SUPA CONTRACTORS LIMITED
• SV SALES & SERVICE LIMITED
• THE BUILDERS HUB LIMITED
• THE WEDDING HIRE COMPANY LTD
• UNIVERSAL CONSULTANCY GLOBAL LIMITED
• URBANARC PROJECTS LTD
• VALENS EMERGING MARKETS LIMITED
• VERAAGE ANALYTICS LTD
• VINTAGE SOLUTIONS LTD
• VULCANIC ART LIMITED
• W2 CONSTRUCTION LIMITED
• WESLEYCARE LIMITED
• WHITEROOM CONSULTING EUROPE LIMITED

Protecting cashflow as costs rise again

The improvement in retail sales and consumer confidence is encouraging, but the renewed rise in oil, mortgage and borrowing costs shows how quickly financial conditions can change. Customers that appeared secure a few weeks ago may now be facing higher transport bills, energy costs, finance charges or household commitments.

Businesses selling on credit should review customer limits, monitor changes in payment behaviour and act promptly when invoices become overdue. CreditCare credit reports and debtor monitoring can help identify changes before they become serious losses. CPA can also support your internal credit control and recover overdue accounts through a professional, ethical process designed to improve payment performance while preserving valuable 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/

Just call 020 8846 0000 (Monday to Friday, 9am to 5pm) 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.

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