UK Business News Today: 25 June 2026 | Economy, Markets & Insolvencies

UK business news today is shaped by uncertainty over a potential Andy Burnham premiership, with investors, entrepreneurs and business groups watching closely for signs of tax changes, Treasury reform and a new economic growth agenda. At the same time, the heatwave is disrupting working patterns and productivity, household arrears are rising, oil prices are easing as Middle East supply recovers, and global markets are being driven by renewed AI optimism. For SMEs that sell on credit, the day’s developments point to a familiar challenge: keeping cash moving while customers, suppliers and the wider economy adjust to higher tax risk, fragile confidence and operational disruption.

James Salmon, Operations Director.

Key Developments

• Investors and business groups are warning that tax uncertainty could damage confidence, investment and entrepreneurial decision-making.
• Andy Burnham’s allies are reportedly considering major economic reforms, including a possible Treasury split and greater focus on growth.
• Britain recorded its hottest June temperature, with City firms sending staff home and analysts warning of a productivity hit.
• Council tax arrears have reached £9.3bn, underlining the pressure on household finances and wider payment behaviour.
• Global markets were lifted by renewed AI optimism after Micron’s results, while lower Brent crude eased inflation and fuel-cost concerns.

News Sections

Economy & Policy

Business leaders warn against further tax rises

Shevaun Haviland, director general of the British Chambers of Commerce, has urged ministers to prioritise economic growth and avoid further tax rises on businesses. She warned that taxing businesses more “would be a road to ruin” and said it would destroy what remains of fragile confidence. Her argument is that weak confidence reduces appetite for risk, which then reduces investment, holds back growth and further damages confidence.

Why it matters: SMEs selling on credit need confidence from customers as well as policy stability, because weaker investment and cautious spending can quickly translate into slower payments and tighter cashflow.

Burnham allies push Treasury break-up to refocus on growth

Influential figures around Andy Burnham are reportedly urging him to break up the Treasury and create a separate economic ministry focused on growth. Supporters of the idea include Andy Haldane, the former Bank of England chief economist, and Louise Haigh, a former transport secretary who is now influential in Burnham’s team. The proposal reflects concerns that combining fiscal control and growth responsibilities in one department leads to overly cautious policy decisions. Some advisers also want the Bank of England’s remit reconsidered, although critics warn that changing the Bank’s focus could unsettle financial markets.

Rachel Reeves backs Andy Burnham as next prime minister

Chancellor Rachel Reeves has told the BBC she is backing Andy Burnham to become the next prime minister. She said any future prime minister and chancellor would inherit a stronger economy than the one she inherited two years ago. Asked about reports that Burnham could offer her a more junior ministerial role, Reeves said those decisions would be for the new prime minister.

Trump signals difficult relationship with Burnham over North Sea policy

President Donald Trump said he was unfamiliar with Andy Burnham but had heard he was “extremely liberal.” His comments suggest a potentially difficult relationship if Burnham becomes prime minister, particularly over North Sea oil and gas development. Trump had initially maintained positive relations with Keir Starmer, but ties cooled amid disagreements over energy policy and wider criticism.

Tax & Government

Investors fear tax raid under new PM

Investors are concerned about potential tax changes under a future Andy Burnham-led Government. One area of concern is the possible introduction of an exit tax, which could impose upfront capital gains tax on entrepreneurs leaving the UK. Louise Haigh has argued that capital gains tax should move closer to income tax rates, while MP Noah Law has suggested an exit tax could recover some of the estimated £500m in capital gains tax lost each year when shareholders leave the UK. Tax experts warn that even discussing such measures may be enough to deter entrepreneurs and encourage speculation about relocation plans.

Burnham team considers tax-funded bill relief

Andy Burnham’s team is reportedly exploring a plan to reduce household bills by removing green levies from energy bills, with possible extensions to water and transport costs. The relief would be funded through changes to capital gains tax on share sales, second homes and other assets. Supporters argue the approach could reduce inflation and improve competitiveness, while Labour group Mainstream has suggested that capital gains tax reform could raise £14bn.

Retail sector criticises import tax loophole timeline

The Government plans to close the import duty loophole on small packages under £135 by October 2028, six months earlier than previously planned. Overseas businesses can currently send small parcels to the UK without import duties, which UK retailers argue creates an uneven playing field. Helen Dickinson, chief executive of the British Retail Consortium, said the revised timetable still does not address the competitive disadvantage faced by domestic retailers.

Reed calls for tax on AI

James Reed, chairman and chief executive of recruiter Reed, has criticised the Government for increasing taxes on jobs, including the £25bn rise in employers’ National Insurance. He argues that higher employment taxes will harm the labour market and suggests that taxing AI could help reduce the tax burden on work. His comments reflect wider concern about how the tax system should adapt as automation and artificial intelligence reshape business activity.

SME & Business Environment

Council tax arrears hit record high

Council tax arrears in Britain have reached £9.3bn after rising by £1bn over the past year, a 12% increase. The Ministry of Housing, Communities and Local Government reported that England accounts for £7.4bn of the total, with Scotland at £1.6bn and Wales at £320m. The figures underline the pressure on household finances at a time when many consumers are already managing higher bills, higher borrowing costs and weaker disposable income.

Heatwave sends City staff home

City firms including JPMorgan Chase, ING and Deutsche have advised employees to work from home during the heatwave. M&G, Nomura and Hiscox have also relaxed office attendance rules, while firms such as KPMG and Deloitte already have flexible working policies that allow staff to avoid commuting during extreme temperatures. Analysts at Oxford Economics predict the heatwave could cause a 1.5% drop in UK labour productivity.

Britain records hottest June temperature

Britain recorded its hottest ever June temperature, reaching 36.1°C in southern England as Europe faced record-breaking heat. France suffered its hottest day on record for a second consecutive day, while schools across Europe closed and travel was severely disrupted. France also recorded 48 drowning deaths over the past week as people sought refuge from the heat.

Housing & Construction

Berkeley boss calls for stamp duty rethink

Rob Perrins, executive chairman of Berkeley Group, says housebuilding is in crisis and has called for decisive Government intervention. He warned that London is producing less than 10% of the homes it needs, with only 5,547 new homes started last year, an 84% drop from a decade ago. Perrins described stamp duty as excessive and called for it to be cut to 3% on all new homes. He also said stamp duty surcharges deter vital investment in newbuild homes.

Employment & Labour

Gen Z earnings outpace millennials at same age

Young Britons in Generation Z are earning more in the early stages of their careers than millennials did at the same age. Resolution Foundation research suggests their incomes are 15% higher before housing costs, helped by steep increases in the minimum wage and the fact that many millennials entered work after the financial crisis. The figures suggest some younger workers are starting from a stronger earnings position, although wider cost pressures remain significant.

IFS warns degree returns are weaker for many graduates

Institute for Fiscal Studies analysis shows the financial return from university is around a third lower than estimated in 2020. Many graduates now face higher taxes and student loan repayments, while a separate finding suggests a quarter of graduates may be worse off over their lifetime from going to university. The findings add to debate over skills, wages and the value of higher education.

Retail & Consumer

Consumer pressure shows through arrears and bill concerns

Today’s mix of council tax arrears, tax-funded bill relief proposals and heat-related disruption points to continuing pressure on households. Even where wages have improved for some younger workers, higher costs and repayment obligations remain a drag. For retailers and service businesses, this creates a more

Industry & Investment

easyJet rejects fourth Castlelake takeover proposal

easyJet has rejected a fourth takeover proposal from US private equity firm Castlelake. The revised offer valued the airline at 650p per share, up from a previous 625p-per-share proposal, but easyJet said it continued to undervalue the company and raised concerns over transaction certainty. The airline has agreed to provide limited commercial information after deciding that further due diligence could potentially lead to a higher offer.

Brent oil erases wartime gains as Hormuz flows recover

Brent oil erased all of its wartime gains after flows through the Strait of Hormuz increased following progress on a US-Iran peace deal. Key parts of the market are now awash with supply, with buyers receiving increased offers from the Middle East. The latest decline should ease inflation fears and help bring down prices at the pump, as more traders expect supply to exceed demand in the near and medium term.

Technology & AI

SK Hynix plans major Nasdaq listing

SK Hynix, the world’s second-largest memory-chip maker, said it is looking to raise up to $29.4bn on America’s Nasdaq exchange. The proposed listing could exceed the $25.6bn raised by Saudi Aramco in 2019, which stood as a record until SpaceX’s $75bn IPO. SK Hynix briefly overtook Samsung as South Korea’s most valuable company, and its shares rose by as much as 12% after the announcement.

Micron revenue and profits surge on AI demand

Micron, the US memory-chip maker, reported third-quarter revenue of $41.5bn, up sharply from $9.3bn a year earlier. Profits rose nearly 15-fold to $28.2bn, and the company’s share price has risen by more than 700% over the past year. The results came during a volatile week for markets, as investors questioned whether AI-related stocks had become overvalued.

Anthropic accuses Alibaba of extracting Claude capabilities

Anthropic told America’s Congress that Alibaba was responsible for what it described as the largest campaign to illicitly extract Claude’s capabilities. The company accused the Chinese e-commerce giant of generating almost 29m exchanges with its AI model to copy its technology for the benefit of China’s armed forces. Alibaba is suing the US government after being blacklisted and prevented from supplying products to the armed forces.

Global Market Summary

Global markets were shaped by two major forces: renewed AI optimism after Micron’s results and falling oil prices as flows through the Strait of Hormuz recovered. The market tone improved after Micron’s stronger-than-expected outlook helped revive confidence in chip and AI-related stocks, particularly in Asia and US futures. At the same time, lower oil prices reduced inflation concerns and supported sectors that benefit from cheaper fuel, although European gas prices remain elevated because of heatwave-related demand and lingering supply concerns.

Equity markets

The STOXX Europe 600 ended Wednesday broadly flat, up 0.08%, with defensive sectors such as food and healthcare outperforming. The STOXX Europe 50 is currently up 0.73% at 6260.

The FTSE 100 is up about 0.3% this morning at 10,495. The FTSE 250 gained 0.8%, helped by sterling weakness and strength in rate-sensitive areas. UK real estate was a major focus after Segro rejected a £12.6bn all-share approach from Prologis, with Segro rising as much as 20% and the FTSE 350 Real Estate Investment Trusts index up around 6.9%. UK housebuilders also rose after markets pared back expectations of further Bank of England rate increases, with Berkeley Group gaining 7.3%.

In the US, the S&P 500 slipped 0.1% to 7,358.22, testing its 50-day moving average. The Dow Jones Industrial Average rose 0.35% to 51,848.90, while the Nasdaq Composite fell 0.43% to 25,476.6 and the Nasdaq 100 closed down 0.4%. Technology weakness remained a drag, with Microsoft down 2.3%, although Amazon and Alphabet outperformed. Industrials were stronger, helped by airlines such as United Airlines and Delta Air Lines as lower oil prices improved the outlook for fuel costs.

Asian markets rallied sharply overnight. The Nikkei 225 surged 4.61% to 72,366.34, supported by chip stocks including Advantest. The Kospi rose around 5.4%, boosted by SK Hynix and wider AI optimism. The Shanghai Composite rose 0.2% to 4,120.28. The Hang Seng was the main underperformer, falling 1.4% to 23,076.91, led lower by Alibaba and Sunny Optical, with Chinese technology shares failing to share in the broader AI rally.

Market drivers

The strongest overnight driver was Micron Technology’s outlook, which reignited confidence in the AI trade after several sessions of tech-led selling. Micron guided for fourth-quarter revenue of around $50bn, well ahead of the $43.2bn consensus estimate in the supplied briefing. This helped lift US futures, with S&P 500 futures up around 0.6% to 0.8% and Nasdaq 100 futures up around 1.8% to 2.2%.

Oil prices also became a major macro support. Brent erased its wartime gains as more tankers moved through Hormuz and Middle East supply increased. Lower energy costs helped reduce inflation fears and supported bonds, with German and UK government debt rallying as oil prices fell.

The dollar remained an important pressure point. Sterling hit a seven-month low near $1.3156 on Wednesday before the dollar softened slightly this morning. The euro broke below $1.14 against the dollar, while EUR/GBP was around 0.8610, a 10-month low for the euro against sterling. The dollar’s strength reflected a hawkish Federal Reserve tone and expectations around US inflation data.

Currencies

GBP/USD was near the 1.3156 area after sterling hit a seven-month low against the dollar. The move reflected broad dollar strength, hawkish Fed expectations and investor caution around UK political and fiscal policy. GBP/EUR was supported by euro weakness, with EUR/GBP around 0.8610, implying the pound was firmer against the euro even while under pressure against the dollar.

For SMEs, currency moves matter because a weaker pound against the dollar can raise the cost of imported goods, fuel-linked inputs and dollar-priced commodities. A stronger pound against the euro may help firms buying from the eurozone, but the overall picture remains volatile.

Commodities

Brent crude traded around $73.41 a barrel, down 0.6% this morning and having erased its wartime gains. WTI crude was around $69.98 a barrel, close to its lowest level since before the Iran conflict. The fall in oil reflected recovering Hormuz shipping flows, peace-talk progress and signs of greater Middle East supply. This should help ease fuel and inflation pressure for businesses, although gas markets remain more strained.

Gold broke below $4,000 an ounce on Wednesday for the first time since November, while silver fell below $60 an ounce. The move reflected dollar strength, higher real rates and a more hawkish Federal Reserve backdrop. Copper and aluminium also extended losses, with weaker Chinese demand and dollar strength weighing on industrial metals.

For business owners, the market message is mixed but important: lower oil helps costs, AI optimism supports risk appetite, but currency weakness, political uncertainty and high gas prices still require careful cashflow planning.

Keeping cash moving when confidence is fragile

When tax policy, heat disruption, fuel prices and customer finances are all moving at once, businesses that sell on credit need more than optimism. They need visibility, discipline and early action.

Today’s news points to pressure on both sides of the ledger. Customers may be managing higher household bills, arrears or uncertainty about future costs. SMEs may be dealing with staffing disruption, wage costs, supplier delays, tax speculation and changing demand. In that environment, overdue invoices should not be allowed to drift.

CPA helps businesses protect cashflow through practical, ethical credit management support. CreditCare credit reports can help identify risk before credit is extended. Debtor monitoring can help businesses spot changing circumstances earlier. CPA’s overdue account recovery and credit control support are designed to improve payment performance while preserving customer relationships.

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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