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

UK businesses face a difficult mix today: weaker private sector activity, a widening HMRC tax gap linked heavily to small firms, higher policy and compliance pressure, extreme heat affecting transport, buildings and energy supply, and global markets unsettled by a sharp technology selloff. Not good for business owners waking up tired after staying up to watch England v Ghana. For SMEs selling on credit, the key risk is that customers under cost pressure may delay payments, while rising overheads, tighter margins and weaker confidence make cashflow discipline more important.

James Salmon, Operations Director.

Key Developments

• UK private sector activity contracted again in June, with the S&P Global PMI falling to 49.4.
• HMRC’s tax gap rose to £59.2bn, with small businesses accounting for 62% of the shortfall.
• The mood won’t be helped by Englands drab draw against Ghana in the World Cup last night.
• The Met Office issued red and amber extreme heat warnings, while the grid operator warned of tight electricity margins.
• Foreign investment projects into Britain fell 26% to a record low.
• Global markets were hit by an AI-linked technology selloff, with South Korea’s KOSPI suffering a dramatic 10% fall.

Economy & Business Confidence

UK private sector activity falls to a 14-month low

Britain’s private sector activity fell to its weakest level in 14 months, with the S&P Global flash UK composite PMI dropping to 49.4 in June from 49.7 in May. Any reading below 50 indicates contraction, meaning the economy shrank slightly for a second consecutive month. The services sector had its weakest month in three years, with rising costs and weaker customer confidence weighing on demand. Thomas Pugh, chief economist at RSM UK, said the economy appeared to have stagnated across Q2 and warned that growth may not pick up much through the rest of the year.

Why it matters: Slower activity makes customers more cautious, increases pressure on payment behaviour and leaves SMEs more exposed to late invoices.

Foreign investment projects fall 26%

Department for Business and Trade data shows foreign direct investment into Britain fell to a record low of 1,020 projects last year. That was down 26% from 1,375 projects in 2024/25 and marked the third consecutive annual decline. Jobs linked to inbound investment projects also fell, with 69,166 vacancies created, 20% below 2020/21 levels. The figures point to a weaker investment environment at a time when businesses are already facing higher costs and uncertainty.

Why it matters: Lower investment can reduce local supply chain opportunities, slow job creation and weaken confidence among businesses that depend on larger customers and regional growth.

Businesses urge EU reset to boost competitiveness

The Confederation of British Industry is calling for a reset in EU-UK relations to improve competitiveness and reduce trade barriers. CBI chief executive Rain Newton-Smith said firms do not want to reopen the Brexit referendum or re-enter the customs union or single market, but they do want lower customs delays and costs. She warned that UK firms risk being left behind in European supply chains if trade friction remains high. The message from business is practical rather than political: reduce the cost and complexity of trading.

Why it matters: Trade delays and higher administration costs can squeeze margins, delay deliveries and make it harder for SMEs to keep payment terms under control.

Tax & Government

HMRC tax shortfall rises to £59.2bn

HMRC says the UK tax gap rose to 6.4% in 2024/25, with unpaid taxes reaching £59.2bn. Small businesses accounted for 62% of the gap, underlining how much of the issue relates to everyday compliance, mistakes, disputed interpretation and unpaid bills as well as deliberate avoidance. Emma Rawson of the Association of Tax Technicians said many business owners are trying to comply with an increasingly complex tax system while also running their businesses. Rachael Griffin of Quilter said closing even part of the gap could support the public finances without further headline tax rises.

Treasury outlines ISA reforms

The Government has unveiled ISA reforms that will limit under-65s to £12,000 a year in cash ISA contributions from April 2027. Interest earned on cash held inside stocks and shares ISAs will be taxed at 22%, a move designed to stop savers using investment ISAs as a workaround for cash ISA limits. Transfers from non-cash ISAs into cash ISAs will not be permitted, although cash ISA funds can still move into investment accounts. Shadow Chancellor Sir Mel Stride described the changes as a “double whammy for savers”.

First-time buyer ISA announced

The Treasury has announced a new first-time buyer ISA with no upper age limit, reflecting the rising age of people getting onto the property ladder. The ISA will offer a 25% government bonus on savings, payable when a property is bought. The £450,000 property price cap will remain, but the previous 25% penalty for withdrawals used for another reason will be removed. The policy is aimed at helping more buyers build deposits while giving savers greater flexibility.

Probate fees set to rise 75%

The Government plans to increase probate fees by 75%, taking the cost from £300 to £526. Critics say the rise will add financial strain for bereaved families at an already difficult time. Laura Bywater of law firm JMW said she hoped the higher fee would be matched by a much-improved service. The change adds to a wider pattern of rising administrative and legal costs for households.

Jonathan Haskel selected as OBR chair

Jonathan Haskel, a former Bank of England rate-setter, is set to become chair of the Office for Budget Responsibility, subject to Treasury Committee approval. He is known for taking a hawkish stance on interest rates during his time on the Monetary Policy Committee. He will succeed Richard Hughes, who resigned in 2025 after the Budget was leaked. The appointment matters because the OBR’s forecasts shape government fiscal decisions and market confidence.

Business Costs, Rates & Infrastructure

Scotland reviews business rates hikes

The Scottish Government has launched an independent review into business rates increases after some bills reportedly rose by almost 500%. Deputy First Minister Jenny Gilruth said the review would examine allegedly anomalous valuations following the 2026 revaluation. The panel will also assess the role of assessors and the appeals process, with a report due within three months. For affected businesses, the review may offer some hope of clarity, but the immediate cashflow pressure remains.

Red and amber heat warnings issued across the UK

The Met Office has issued a red warning for extreme heat in parts of the UK, covering areas including the East Midlands, East of England, London and South East England, South West England, the West Midlands and Wales. An amber warning has also been issued for North West England and Yorkshire and Humber. The warnings come as businesses face disruption risks from heat stress, transport problems, reduced productivity and pressure on buildings not designed for extreme temperatures. For small firms, even short periods of disruption can affect staffing, deliveries and customer service.

UK grid operator issues rare summer power supply warning

The UK’s National Energy System Operator issued a rare summer electricity margin notice for Wednesday evening, in effect from 7pm to 10pm. The grid operator expected a margin shortfall of 1.9 gigawatts and asked power plant operators to make extra capacity available. NESO said the warning reflected tight margins caused by extreme temperatures across Britain and the continent, alongside low wind, but stressed that it did not mean a blackout was imminent. European grids have also been affected by the heatwave, with peak-time prices rising and France curtailing some nuclear output.

Why it matters: Energy system strain can increase costs and operational risk for SMEs, particularly those relying on refrigeration, manufacturing equipment, logistics or evening trading.

London apartment design linked to severe indoor overheating

An architectural trend in London, sometimes referred to as New London Vernacular, is being linked to severe indoor overheating. Box-style apartment buildings with large windows can become extremely hot during high temperatures, with some residents finding that even air conditioning is not enough. Policymakers and academics are increasingly focused on how buildings must adapt to climate change, and the Mayor of London’s office is due to publish a report on urban heat. The issue highlights the wider cost of designing homes and workplaces for a cooler climate that no longer exists.

Interest Rates & Financial Conditions

MPC’s Alan Taylor calls for extended hold on rates

Alan Taylor, a member of the Bank of England’s Monetary Policy Committee, has called for interest rates to remain at 3.75% until economic uncertainties become clearer. He said an “extended hold” was appropriate given geopolitical risks, particularly the Middle East conflict. Taylor was part of the seven-to-two majority that voted to keep rates unchanged last month, while two members voted to raise the base rate to 4%. His comments suggest policymakers remain cautious despite weak UK activity.

Industry, Property & Technology

Prologis makes £12.6bn bid for Segro

Prologis has made a £12.6bn bid to acquire London-based warehouse landlord Segro, although Segro has rebuffed the approach. The offer valued Segro at 925p per share, a 24.6% premium to its undisturbed price, using 0.084 new Prologis shares for each Segro share. Prologis has until 22 July to make a formal offer or walk away. The approach comes as industrial landlords explore converting warehouses into data centres to capture demand from the artificial intelligence boom.

Global tech stocks fall on AI spending concerns

Global technology stocks fell sharply amid renewed concerns about the scale of AI-related capital spending. South Korea’s stock exchange suspended trading for 20 minutes, and the KOSPI closed down 10% as chip-linked stocks came under pressure. The selloff spread across global markets, affecting semiconductor and AI infrastructure names in Europe and the US. Investors are questioning whether AI demand can justify the spending now being priced into technology shares.

Chinese supercomputer tops global rankings

A Chinese supercomputer called LineShine has been named the world’s most powerful computing system, marking the first Chinese top ranking since 2017. LineShine displaced America’s El Capitan and impressed researchers with its speed. Unlike many supercomputers that rely heavily on graphics-processing units, LineShine is powered entirely by central-processing units. These systems are used in medical research, advanced modelling and scientific development.

England held by Ghana as World Cup mood turns flat

England’s 0-0 draw with Ghana has left many supporters frustrated after Ghana’s disciplined low block denied England space. Many viewers also felt Ghana had a strong penalty claim, adding to the sense that England were fortunate not to lose. While not strictly business story, results like this can affect national mood (it certainly has in our offices), hospitality trade and consumer spending patterns. After the optimism of England’s earlier win over Croatia, the mood today is likely more subdued.

Global Market Summary

Markets were dominated by a global technology selloff triggered by renewed concern over AI-related spending and chip demand. The pressure began in South Korea, where the KOSPI fell 10% on Tuesday, before spreading into European semiconductor names and US technology stocks. Investors were also watching UK political uncertainty, weak UK PMI data, progress in US-Iran peace talks, lower oil prices, a stronger dollar and falling gold.

The FTSE 100 stood at 10,429.23 around 09:23 BST and was relatively resilient compared with continental European markets because of its heavier weighting toward banks, healthcare and consumer staples rather than technology. The STOXX Europe 600 was at 634.55 after falling 0.7% on Tuesday, with AI-exposed names, semiconductor firms, autos and miners under pressure. A STOXX Europe 50 level was not supplied in the uploaded market briefing, so no figure has been included. Germany’s DAX was at 24,720.30 and France’s CAC 40 at 8,349.42, with both affected by losses in semiconductor and AI infrastructure stocks.

In the US, the S&P 500 closed at 7,365.46, the Dow Jones at 51,666.84 and the Nasdaq 100 at 29,347.27. The Nasdaq 100 fell more than 3%, while the Philadelphia Semiconductor Index dropped 7.9%, showing how heavily the AI and chip trade was hit. Marvell Technology, Qualcomm and Intel were among the names under pressure, while Micron earnings were being watched as the next major test of AI demand.

Asian markets were volatile overnight. Japan’s Nikkei 225 fell 0.9% to 69,174.97, with Tokyo Electron among the main drags. South Korea’s KOSPI rebounded around 3.3% after Tuesday’s 10% fall, although the session remained unstable. Hong Kong’s Hang Seng rose 0.3% to 23,412.18, supported by gains in Chinese chip stocks and Tencent. The Shanghai Composite rose 0.1% to 4,110.81.

Currency markets were led by a stronger US dollar, with the Bloomberg Dollar Spot Index rising to a seven-month high. GBP/USD was around the 1.2700 area, with the dollar broadly stronger but sterling relatively steady. GBP/EUR was supported by weakness in the euro, with EUR/GBP around 0.8610, a 10-month low for the euro against sterling. The euro was under pressure from weak German and French PMI data and dovish comments from ECB President Christine Lagarde.

Commodities were also shaped by geopolitics and the stronger dollar. Brent crude was sliding toward $76 a barrel, while WTI was below $73, as progress in US-Iran peace talks and improving tanker movement through the Strait of Hormuz reduced some of the risk premium in oil. Gold fell sharply, with spot gold dropping toward $4,050 an ounce after a stronger dollar, reduced geopolitical risk and the tech-led market selloff encouraged investors to reduce positions. European gas prices also edged lower as Hormuz traffic improved and Qatar signalled a return toward normal LNG output.

For business owners, the market message is mixed. Lower oil can help ease fuel and energy cost pressure, but weak UK data, the stronger dollar, fragile equity sentiment and uncertainty around AI investment all point to a cautious environment. SMEs should watch customer payment behaviour closely, especially where customers are exposed to imported goods, energy costs, technology investment or weakening demand.

Insolvency Watch

Administrations (7)

• 9 PRINCEDALE FREEHOLD LIMITED
• COOPS EMBS LIMITED
• CURO CONSTRUCTION LIMITED
• CURO GROUP HOLDINGS LTD
• CURO INTERIORS LTD
• DEVONSHIRE HOMES (MABE) LIMITED
• HINTERVIEW LIMITED

Liquidations (10)

• BARNSTORMER PROPERTIES LIMITED
• BILSHAM STORES LIMITED
• BK RISK CONSULTING LIMITED
• BLACKSTONE DESIGN LIMITED
• CVIEW CONSULTING LIMITED
• FRASCO ENGINEERING INTERNATIONAL LTD
• GEORGE EWEN LIMITED
• LONDON & MELDGAARD LTD
• MERSA LIMITED
• WELCOME HOMES (SCOTLAND) LIMITED

Keeping cash moving when conditions tighten

Today’s news points to a trading environment where pressure is building from several directions at once: weaker activity, higher compliance scrutiny, extreme heat disruption, energy system strain and a more cautious investment mood. For SMEs that sell goods or services on credit, the danger is not just lower demand. It is the delay between doing the work, issuing the invoice and actually receiving payment.

This is where stronger credit control becomes a practical resilience tool. CPA can help businesses review risk through CreditCare credit reports, monitor debtors, support internal credit control and recover overdue accounts in a way that remains professional and relationship-focused. Early action matters because overdue invoices become harder to collect the longer they are left unresolved.

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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