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

UK businesses face a more difficult combination of slower growth and rising costs as September’s PMI data showed private-sector activity losing momentum while energy, fuel and raw-material inflation accelerated. Oil above $100 a barrel, higher global borrowing costs, weaker consumer confidence and continuing uncertainty ahead of the October Budget all increase the importance of protecting working capital, monitoring customer risk and responding quickly when invoices become overdue.

James Salmon, Operations Director.

Key Developments

• UK composite PMI slowed to 51.7, with input-cost inflation reaching its highest level since June.
• The OECD upgraded its 2026 UK growth forecast to 1.1% but cut its 2027 forecast to 1%.
• Brent crude moved above $105, increasing pressure on transport, energy and supply-chain costs.
• Consumer confidence fell sharply to -34, suggesting households are becoming more cautious about spending.
• Global borrowing costs remain elevated, with the US 10-year Treasury yield around 5.14%.

Economy & Policy

UK private-sector growth slows as costs accelerate

UK private-sector growth slowed to a three-month low in September, with the composite PMI falling to 51.7 from 52.5 in August, below expectations of 52.0.

Services activity eased to 51.7 while manufacturing output fell to 51.4. The headline manufacturing PMI nevertheless increased to 52.0 from 51.7, signalling continuing expansion.

More concerning for businesses was a second consecutive acceleration in input-cost inflation, reaching its highest level since June as firms reported rising energy, fuel and raw-material costs.

Why it matters: Businesses selling on credit may find that customers remain busy but increasingly cash-constrained as higher operating costs absorb working capital and put pressure on payment times.

OECD upgrades 2026 growth but cuts 2027 outlook

The OECD raised its forecast for UK growth in 2026 from 0.9% to 1.1%, citing stronger domestic demand, but cut its 2027 forecast from 1.1% to 1%.

Higher oil and gas prices resulting from continuing Middle East tensions were cited as an important drag on the outlook. The organisation also warned that elevated borrowing costs increase the need to improve public-sector efficiency and strengthen the public finances.

The OECD said UK monetary policy is already sufficiently restrictive to control inflation and does not currently require another Bank of England rate rise.

Why it matters: Modest growth combined with persistent cost pressure means businesses should avoid assuming that rising turnover automatically translates into stronger customer cashflow.

Bank of England warns persistent energy costs could change rate outlook

Bank of England Deputy Governor Clare Lombardelli said the case for higher interest rates would increase if elevated energy prices persist, unless economic activity weakens significantly.

That highlights the difficult balance facing policymakers as energy-driven inflation coincides with signs of slowing domestic growth.

Why it matters: Higher rates would increase finance costs for businesses already dealing with expensive energy and materials, potentially weakening the payment capacity of highly leveraged customers.

Bank of England takes MPC decisions to Leeds

The Bank of England will begin holding some Monetary Policy Committee meetings in Leeds from next year. Meetings that do not include a full economic forecast will be held there, with all nine MPC members travelling north.

The Bank also plans to have around one in ten employees based in Leeds, strengthening its presence outside London.

Tax & Government

Budget uncertainty continues as Burnham signals caution on tax rises

Prime Minister Andy Burnham has indicated that he does not want the government to repeat the scale of tax increases seen in recent Budgets as Chancellor John Healey prepares for the 28 October Budget.

However, economists continue to warn that pressure on the public finances may require additional revenue measures, particularly after the rise in government borrowing costs. Recent analysis has highlighted the shrinking fiscal room available to the Chancellor ahead of the Budget.

Property-tax overhaul proposed by Resolution Foundation

The Resolution Foundation has proposed replacing council tax and stamp duty with an annual tax equivalent to 0.7% of property values.

Under its modelling, London households would collectively pay around £3.1bn more, with 80% of London residents facing higher bills and 64% paying at least £250 more.

The proposal remains a think-tank recommendation rather than government policy.

Burnham and Trump discuss UK-US trade and international issues

Andy Burnham held his first face-to-face meeting as Prime Minister with US President Donald Trump at the UN General Assembly.

Downing Street said discussions included UK-US trade, the Strait of Hormuz, Ukraine, Diego Garcia and the Falkland Islands. Trump publicly described Burnham as a “natural businessman”.

For British businesses, the important issue remains the stability of the economic and trading relationship with one of the UK’s largest international markets.

Government considers changes to football alcohol rules

Burnham has also suggested that the longstanding restrictions preventing football supporters from drinking alcohol while directly viewing the pitch should be reconsidered.

The legislation dates from 1985, although policing representatives have warned that relaxing the rules could increase the risk of disorder.

For pubs, stadium operators, hospitality suppliers and drinks businesses, any eventual change could have commercial implications, although no legislative change has yet been made.

Retail & Consumer

Consumer confidence drops sharply ahead of Budget

The British Retail Consortium’s consumer-confidence index fell to -34 in September from -28 in August, reversing four months of improvement.

Households reported greater concern about their financial position and appeared increasingly reluctant to increase spending as speculation over Budget tax changes intensified.

Why it matters: Weak consumer confidence can quickly filter through to retailers, hospitality businesses and their suppliers, increasing the risk of slower orders and stretched payment terms throughout the supply chain.

European electric-car registrations jump 52%

Registrations of fully electric vehicles across Europe rose 52% year on year in August, according to the European Automobile Manufacturers’ Association.

Higher fuel costs appear to be accelerating the transition, with German petrol prices reaching a reported record €2.31 per litre.

Through August, more than one in three vehicles sold in Europe had a plug, compared with just over one in four previously.

Energy & Costs

Oil above $105 increases pressure on business costs

Energy markets remain one of the most important risks facing UK businesses.

Brent crude was trading around $105.95, up 2.8%, while WTI stood near $94.42, up 2.5%. Middle East tensions and uncertainty surrounding shipping through the Strait of Hormuz continue to influence prices.

Higher oil prices ultimately feed through to freight, deliveries, manufacturing, aviation and supplier prices.

Potential US diesel export restrictions raise UK supply concerns

The Trump administration is reportedly considering restrictions on US diesel exports lasting up to 90 days.

The UK receives a significant share of its imported diesel from the United States, leading analysts to warn that restrictions could increase European diesel prices substantially. Market data already showed European diesel refining margins reaching exceptional levels.

Industry & Investment

Vistry reports £661m pre-tax loss

Housebuilder Vistry Group reported a first-half pre-tax loss of £661m, including a £475m goodwill impairment, and announced a strategic review.

Elsewhere, Asos said adjusted EBITDA should reach the top end of its guidance range, while Raspberry Pi reported first-half revenue up 90% to $256.9m.

These contrasting results underline the uneven conditions facing different sectors of the economy.

Investment fraud losses approach £1bn

Reports of investment fraud rose 37% between 2024-25 and 2025-26, according to National Crime Agency figures supplied today.

Total losses reached £991m in 2025, with average losses exceeding £25,000 per case.

The NCA and Financial Conduct Authority are encouraging consumers to check firms carefully and warning online platforms of their responsibilities in tackling fraudulent promotions.

Technology & AI

AI safety concerns reach the UN

Anthropic chief Dario Amodei has called for narrowly focused international agreements on artificial-intelligence safety that UN Security Council members could support.

OpenAI chief Sam Altman separately argued that even a very small risk of catastrophic AI outcomes requires serious attention.

The debate coincided with reports that an OpenAI agent accessed non-sensitive information from an Australian government health service in June. Australia’s Prime Minister Anthony Albanese criticised both the incident and the way it was reported.

Meta introduces Muse Charm AI device

Meta has revealed Muse Charm, a small wearable device designed to provide access to its AI assistant.

The launch formed part of a wider product update that included new smart glasses. Markets also reacted to the potential competitive effect of Meta’s AI technology, with online travel and classified-advertising shares among those affected.

Revolut pilots facial-recognition payments

Revolut is piloting a UK checkout system allowing customers to make in-store payments using facial recognition linked to biometric information already held on their Revolut accounts.

The initial trial is with coffee chain Kiss the Hippo, with a broader launch expected later this year. Revolut says merchants will not pay processing fees and will not receive or store customers’ biometric information.

The development follows a recently disclosed data breach involving an unauthorised third party.

International & Trade

US and China extend trade truce

Chinese President Xi Jinping arrived in Washington for talks with Donald Trump as the two governments agreed to extend their existing trade truce by two months.

Markets are watching the summit for further developments covering tariffs, rare-earth supplies, agriculture and AI governance.

France considers further taxation of wealth

France’s Cour des Comptes has proposed measures including a new levy on accumulated wealth, changes to the Dutreil inheritance-tax relief and an extension of taxation affecting holding companies.

The recommendations form part of a wider debate over France’s public finances and the distribution of the tax burden.

Global Market Summary

Financial markets are being driven by two linked concerns: rising oil prices and sharply higher government bond yields.

UK and Europe

At the latest London-morning readings:

• FTSE 100: 10,690.14, -0.14%
• STOXX Europe 600: 636.75, -0.50%
• EURO STOXX 50: 6,262.62, -0.59%
• DAX: 25,221.04, -0.75%
• CAC 40: 8,067.04, -0.69%

The previous session had already seen European equities retreat as the rise in oil and bond yields overwhelmed earlier optimism.

United States

Wednesday’s US session closed weaker:

• S&P 500: 7,706.03, -0.75%
• Dow Jones: 51,511.59, -0.68%
• Nasdaq Composite: 26,936.04, -1.13%

Stronger US business activity, higher oil prices and a weak Treasury auction pushed bond yields sharply higher and reduced expectations for easier monetary policy.
The US 10-year Treasury yield moved to around 5.14%, while the 30-year reached roughly 5.44%, increasing borrowing-cost pressure globally.

Asia

• Nikkei 225: 65,513.99, approximately +0.8%
• Hang Seng: 24,761.13, approximately -0.3%

Japanese equities initially benefited from renewed AI optimism and a weaker yen, although bond yields also rose sharply. Chinese markets were more cautious ahead of holidays and the Trump-Xi negotiations.

Market drivers

The principal drivers are:

• Brent crude above $105 and continued Middle East uncertainty.
• Rising US Treasury and global sovereign-bond yields.
• Stronger US business activity increasing concern over inflation.
• The Trump-Xi summit and extension of the US-China trade truce.
• Continuing uncertainty over monetary policy as energy prices rise.

Currencies

Sterling was trading around:

• GBP/USD: $1.3241, broadly unchanged on the morning.
• GBP/EUR: €1.1626, with only modest movement.

The larger recent move has been a strengthening US dollar as investors react to stronger US economic data and rising Treasury yields.

Commodities

• Brent crude: $105.95, +2.8%
• WTI crude: $94.42, +2.5%
• Gold: $4,265.83, -0.5%

Gold weakened despite broader market uncertainty because higher real interest rates increase the opportunity cost of holding a non-yielding asset.

For UK SMEs, the combination of expensive energy and expensive finance is particularly important. It puts simultaneous pressure on operating margins, working capital and the financial resilience of customers.

Insolvency Watch

Administrations (5)

• FLAG CLOTHING LIMITED
• HARRISON GARDNER DYERS & WINDERS LIMITED
• J T LEYLAND LIMITED
• NW EVENT & HOSPITALITY MANAGEMENT LTD
• RESTORE CASTLE HILL FARM LTD

Liquidations (22)

• AGECROFT PROPERTIES (NO.2) LIMITED
• ALFS LONDON LIMITED
• API HOLDCO LIMITED
• AUTOHORN INVESTMENTS LTD
• BARTLETT MITCHELL SERVICES LIMITED
• BROAD REACH VENTURES LIMITED
• CRUNCH MODE COMPUTER CONSULTANTS LIMITED
• FOOTPRINT2 LIMITED
• HARINGEY SCHOOLS SERVICES LIMITED
• HARROW HARPENDEN LIMITED
• HAVISHAM HOMES LIMITED
• INN OR OUT EVENTS LIMITED
• KABUTO FOODS LIMITED
• MBH PROPERTIES LIMITED
• SATURN LONDON HOLDINGS LIMITED
• STARVIEW HOMES LIMITED
• VITRIFIED SOFTWARE LTD
• WILKINSON SIMONS DEVELOPMENT LIMITED
• WSH AND SE LIMITED
• WSH AND SOMERSET LARDER LIMITED
• WSH AND ST LIMITED
• YOURS SINCERELY AESTHETICS LIMITED

Winding-up Petitions (1)

• BEAVERWOOD LIMITED

Protecting cashflow as costs rise again

Today’s figures illustrate why a customer that appears healthy on the surface can still experience rapid changes in cashflow.

Higher fuel, energy, materials and finance costs can absorb working capital quickly. At the same time, weaker consumer confidence and slower economic activity can delay sales and increase pressure on payment behaviour.

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. The longer an overdue account remains unresolved, the greater the risk that changing circumstances turn a late payment into a more serious loss.

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/

CPA’s approach reflects its longstanding focus on improving cashflow while protecting the commercial relationships businesses depend upon.

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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