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

UK businesses end the week facing a familiar combination of rising costs and uncertain demand. Higher energy prices are increasing inflation and interest-rate concerns, retailers are warning about business rates and employment costs, and households appear increasingly cautious despite an improvement in headline consumer confidence. For SMEs selling on credit, the message is clear: margins remain under pressure at the same time as customers face their own financing and cost challenges, making payment behaviour, credit exposure and early action on overdue invoices increasingly important.

James Salmon, Operations Director.

Key Developments

• Bank of England deputy governor Clare Lombardelli says interest rates may need to rise if elevated energy prices persist.
• GfK consumer confidence improved to -13, but households are becoming more cautious about major purchases.
• Retailers warn that business rates, employment costs and energy bills are putting further pressure on prices and margins.
• Markets stabilised as hopes of a US-Iran agreement over the Strait of Hormuz pushed oil prices lower.
• Today’s insolvency notices include 5 administrations, 28 liquidations and 64 winding-up petitions.

Economy & Policy

Interest rate hike risk rises with energy prices

Bank of England deputy governor Clare Lombardelli has warned that monetary policy is increasingly likely to need tightening if elevated energy prices persist. The Monetary Policy Committee voted 6-3 to keep Bank Rate at 3.75%, while UK inflation reached 3.1% in August.

Energy costs are particularly important because they feed through into transport, manufacturing, utilities and household spending. Persistently higher inflation could keep borrowing costs elevated or lead to another rate increase.

Why it matters: Higher borrowing costs affect SMEs directly while also increasing financial pressure on customers, potentially slowing payment and increasing credit risk.

Consumer confidence improves, but caution is returning

GfK’s consumer confidence index increased to -13 in September, its third consecutive monthly improvement and its strongest reading since 2024. However, September delivered only a one-point improvement after a nine-point rise across the previous two months.

Consumers also became less willing to make major purchases and increased their savings intentions. Concern about future energy bills appears to be weighing on confidence, with household energy costs potentially rising further when the price cap resets in January.

Why it matters: Cautious household spending can quickly affect retailers, hospitality businesses and their suppliers, increasing pressure throughout the credit chain.

Chancellor considers smaller fiscal buffer

Chancellor John Healey is reportedly considering reducing the Government’s fiscal headroom rather than relying entirely on further tax increases in the forthcoming Budget. The fiscal cushion is currently reported at £8.6bn, down from £24bn.

OBR member David Miles has also warned that there are limits to how far taxes can rise before affecting incentives to work.

For businesses, the Budget remains an important source of uncertainty around taxation, employment costs and investment decisions.

Heathrow third runway faces renewed uncertainty

Prime Minister Andy Burnham has reportedly told MPs privately that he has long opposed the construction of a third runway at Heathrow.

Any change in policy could have implications for aviation, construction, logistics and businesses dependent on Heathrow-related investment and supply chains.

SME & Business Environment

Retailers urge Government to reduce the cost of doing business

The British Retail Consortium has called on the Chancellor to tackle what it describes as a triple pressure from business rates, employment costs and energy bills.

Retailers argue that reducing these costs would give businesses more scope to keep prices down rather than passing increases through to customers.

Why it matters: When businesses cannot fully absorb higher costs, pressure moves through supply chains, squeezing margins and increasing the risk of slower payments to suppliers.

Warehouse tax could feed through into prices

Retailers and wholesalers have warned that higher property taxes on warehouses could ultimately increase consumer prices.

The Government has indicated that additional revenue from larger properties could help fund lower business rates for pubs, bars and smaller high-street businesses.

Food and Drink Wholesale UK chief executive James Bielby said additional warehouse costs were likely to be passed on.

Vocational qualifications meet the reality of higher hiring costs

Commentary in the Telegraph welcomed plans for new vocational GCSEs but argued that improving qualifications alone will not resolve youth unemployment if businesses remain reluctant to hire.

Matthew Elliott of the Jobs Foundation says the statutory cost of employing an 18-year-old has risen by around 40% since 2015.

Defence industry employment scheme targets 40,000 young people

The Government and UK defence industry have agreed a programme intended to provide employment and work-experience opportunities for 40,000 people aged 18 to 24 by 2030, rising to 50,000 by 2035.

The programme could create opportunities across manufacturing, engineering, technology and their wider supply chains.

Ill health keeps more than 585,000 over-50s from work

More than 585,000 people aged 50 to 64 would like to work but are unable to because of ill health or disability, according to Department for Work and Pensions figures.

The figure is up 2% year on year, while the overall employment rate for people over 50 has increased to 72.2%.

Labour availability remains an important constraint for many businesses, particularly where experienced or specialist workers are difficult to replace.

AI could deliver £80bn productivity boost

Rigby Group chief executive Steve Rigby argues that wider AI adoption could generate £80bn of UK productivity gains by 2035.

Research from the Learning & Work Institute and Rigby Foundation suggests 85% of businesses use AI, but only 18% deploy it extensively, with larger businesses generally further ahead.

For SMEs, the opportunity lies less in technology for its own sake and more in using automation to reduce administration, improve processes and free employees for higher-value work.

Tax & Government

HMRC warns savers to check tax demands carefully

HMRC is preparing to issue a second round of simple assessment notices that will include tax due on savings interest.

Some taxpayers may already have received an earlier demand excluding savings tax, creating concern that people could mistakenly make duplicate payments.

The number of savers expected to pay tax on interest has risen sharply from 1.22m in 2022-23 to 4.51m by 2026-27.

Debate grows over the personal allowance

A Telegraph commentary argues that the income-tax personal allowance should be lowered rather than increased, on the basis that more adults should contribute directly towards public spending.

This contrasts with proposals from the Liberal Democrats and Reform UK to increase the allowance to £15,000.

The article notes that more than 20m adults currently pay no income tax.

Energy windfall tax replacement debated

Campaigners estimate that replacing the existing energy profits levy with an oil and gas revenue levy could reduce Treasury receipts by £8.6bn by 2030.

Offshore Energies UK argues that earlier implementation of a replacement regime could help unlock 111 North Sea projects, while Global Witness argues that the industry should not receive additional tax relief during a period of high energy costs.

Insolvency & Credit Risk

Purplebricks receives HMRC winding-up petition

Purplebricks has received a winding-up petition from HMRC, although accountants BK Plus say the petition resulted from an administrative issue and is being withdrawn after the relevant tax liabilities were addressed.

The company is also under scrutiny after its accounts for the year ending March 2025 were not filed on time.

International & Trade

US-Iran talks offer hope of reopening the Strait of Hormuz

Iranian Foreign Minister Abbas Araghchi says Tehran has presented the US with a proposal that could reopen the Strait of Hormuz if certain conditions are met, including changes to Washington’s blockade of Iranian ports.

Markets responded positively to reports that negotiations could produce a phased agreement.

The Strait remains one of the most important channels for global energy supplies, meaning any disruption or reopening can quickly affect oil, transport and manufacturing costs around the world.

Why it matters: Energy volatility reaches SMEs through fuel, freight, utilities and supplier prices, often before businesses have an opportunity to adjust their own selling prices.

Global Market Summary

Markets steadied on Friday morning after a difficult two-session sell-off in global bonds. Reports of discussions between the US and Iran over reopening the Strait of Hormuz helped oil prices retreat from Thursday’s highs, easing some immediate inflation concerns.

European markets opened higher:

• FTSE 100: 10,727.07, +0.44%
• STOXX Europe 600: 640.36, +0.62%
• Euro STOXX 50: 6,315.88, +0.69%
• DAX: 25,429.88, +0.65%
• CAC 40: 8,095.43, +0.17%

US markets finished Thursday broadly flat after initially falling sharply:

• S&P 500: 7,704.13, -0.02%
• Dow Jones: 51,349.98, -0.31%
• Nasdaq Composite: 26,939.37, +0.01%

Asian trading was mixed:

• Nikkei 225: 66,364.20, +1.30%
• Hang Seng: 24,510.09, -1.01%

The global bond market remains important for business borrowing costs. The US 10-year Treasury yield reached around 5.19% during the sell-off before easing to approximately 5.17% as oil prices pulled back.

Currencies

• GBP/USD: 1.3232, +0.10%
• GBP/EUR: approximately 1.162
• Sterling recovered modestly against the dollar as US yields stabilised.

Commodities

• Brent crude: $106.12, -0.45%
• WTI crude: $93.54, -1.13%
• Gold: $4,288.68, +0.32%

Oil remains the key business variable. Any lasting reopening of the Strait of Hormuz could reduce some of the geopolitical premium in energy prices, but the situation remains highly uncertain.

For UK SMEs, the important link is between energy prices, inflation and interest rates. Higher energy costs raise operating expenses directly while also increasing the risk that borrowing costs remain high.

Insolvency Watch

Administrations (5)

• BHGS LIMITED
• LACED EUROPE LTD
• NOMAD HEALTH TECHNOLOGIES LTD
• SHAMIRAJ (CHEMISTS) LIMITED
• SMAWTHORNE LANE WORKING MEN’S CLUB LIMITED

Liquidations (28)

• ABERDONA FARMING CO LTD
• AUTOMATION TALENT RECRUITMENT LTD
• BOWMORE INVESTMENTS LIMITED
• CHARLES CREHAN LTD
• CHELSEA SECURITIES “B” LIMITED
• CLEAN CIRCLE LIMITED
• ECLECTIC SYSTEMS PROFESSIONALS LIMITED
• ELITECH SOLUTIONS LTD
• G & J INVESTMENTS (ABERDEEN) LIMITED
• GILL FORD SOCIAL CARE LTD
• GLOBAL MEDIA RESEARCH LTD
• GLOBAL RE BROKING SOLUTIONS LIMITED
• HARVIESTOUN FARMING COMPANY LIMITED
• HC2 INVESTMENTS LIMITED
• HEAL CONSULTANCY LTD
• J & A SUTHERLAND LIMITED
• JUDITH MILTON PROPERTY CONSULTANCY LTD
• LUX PAPILLON LIMITED
• NINA ST. CHARLES LIMITED
• PLACETEAM (EU) LIMITED
• POLYTECH FOOD SYSTEMS LIMITED
• PPNL SPV B88 LIMITED
• SAFC BIOSCIENCES LIMITED
• ST & B TRADING LTD
• SUGAR HILL INVESTMENT LTD
• SYMINGTON INTELLIGENCE LTD
• VENTA PROPCO 2 LIMITED
• VENTA PROPCO 3 LIMITED

Winding-up Petitions (64)

• A-TEAM CARE LTD
• ADEPT UNLIMITED LTD
• ANGLESIDE FACILITIES LIMITED
• ASC SCAFFOLDING CONTRACTORS (SOUTH) LTD
• AXIOM MANUFACTURING LTD
• BANCARD GROUP LIMITED
• BARRINGTON’S CLEANING LIMITED
• BIZ AUDIT LTD
• CAFFE BAR LIMITED
• CEGRA IT LIMITED
• CENTRAL CORE MANAGEMENT LIMITED
• CHILLI LONDON LIMITED
• COPPER TECH FM LTD
• COTSWOLD DOORS LTD
• CRISTIAN (LINCS) LTD
• ELDER GLOBAL LIMITED
• ELECTRICAL MECHANICAL & COOLING LTD
• EMLEA PROPERTY SERVICES LTD
• FORTONE CONSTRUCTION LTD
• G & L TRANSPORT SOUTHERN LTD
• G1 PROPCO LTD
• GSE CHERITON PARC LIMITED
• HOTBOX RESTAURANT GROUP LTD
• INTELLIGENT WORKSPACES MANAGEMENT LTD
• JAMES GALE PROPERTY LIMITED
• LINDEN CARE HOME (DERBY) LIMITED
• LONDON GREEN (BEXLEYHEATH) LTD
• LONDON METROPOLITAN COLLEGE LIMITED
• M C S C RESTAURANTS LIMITED
• M&R PROPERTY GROUP LTD
• MAXIMUM CAR CARE LIMITED
• MERIDAN HOLDINGS LIMITED
• MPL GROUNDWORK & BUILDING LIMITED
• MTMAS LIMITED
• NNOJ LIMITED
• NO 9 CONCIERGE LIMITED
• NORTH WALES CRUSADERS LIMITED
• NOTRADING LIMITED
• NPK MEDIA LTD.
• NUSTONE PATIOS LTD
• PAMAZZO CONSULTANCY SERVICES LIMITED
• PETRE&NARCY LIMITED
• PRO ACT HR LTD
• PRO-AC SECURITY SERVICES LTD
• R G SWEET LTD
• RADIANT HEALTHCARE SOLUTIONS LIMITED
• RAZORS EDGE GROUP LIMITED
• RECRUITMENT MERGERS LIMITED
• ROCA PROCESSING LIMITED
• SABO LTD
• SANGHAMITRA LTD
• SAS MCR LTD
• SHEARS & PARTNERS LIMITED
• SHIELDWISE SERVICES LIMITED
• SIGNATURE VANS DIRECT LIMITED
• STREAMLINE TAXIS AYRSHIRE LIMITED
• SUBSEC LIMITED
• SWIFT GO LTD
• THE STAGE AND PRODUCTION HOUSE (UK) LIMITED
• THREE PARKS DEVELOPMENT LIMITED
• TRADEMACK HOLDINGS LTD
• WESTCOMBE CONSTRUCTION LIMITED
• WIMMER SERVICE LIMITED
• ZENYRO LTD

The range of businesses represented in today’s notices is a reminder that financial distress is rarely confined to one sector. For suppliers selling on credit, changes in payment patterns, missed promises, requests for extended terms or sudden silence should always be investigated quickly.

When rising costs put payment performance under pressure

Higher energy costs, borrowing costs and employment expenses do not remain isolated within a business. They move through supply chains and can ultimately show up as slower customer payments.

That makes knowing who you are extending credit to, and acting promptly when agreed payment dates are missed, increasingly important.

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 your money funding somebody else’s business.

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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