UK Business News Today: 26 June 2026 | Economy, Markets & Insolvencies

Friday’s business news brings a mixed picture for UK SMEs. Lower oil prices and falling inflation expectations offer some relief, while stronger SME profit growth suggests parts of the economy are still moving forward. However, extreme heat is disrupting work, travel and energy use, proposed tax changes are creating uncertainty, household energy debt remains at record levels, and a large number of winding-up petitions underlines continuing credit risk. For businesses that sell on credit, the central issue remains the same: profit only protects a business when cash is collected quickly and reliably.

James Salmon, Operations Director.

Key Developments

• UK SME profit growth reached 7.4%, its strongest level since Q1 2022, but 49% of SME invoices remain overdue.
• The UK and Europe continue to face severe heat, with pressure growing for stronger workplace and public infrastructure protections.
• Oil prices below $75 per barrel have improved the inflation outlook, but UK growth and public finances remain fragile.
• Ofgem data shows UK energy debt has reached a record £4.79bn, increasing pressure on household and customer payment behaviour.
• Global markets turned more cautious after a technology selloff linked to Apple price rises, chip costs and AI-driven demand.

SME & Business Environment

SME profit growth hits four-year high, but late payment remains the catch

UK small business profit growth reached 7.4% in the year to the first quarter of 2026, according to Sage’s latest SME Pulse report. The figure was up from 5.5% in the previous quarter and marks the strongest pace since Q1 2022. Real revenue growth also rose by 3.2%, while the Midlands performed especially strongly, with profitability growth of 20.2% in the East Midlands and 16.3% in the West Midlands.

The difficulty is that stronger profits are still not always turning into available cash. Sage found that around 49% of SME invoices are overdue, with firms waiting an average of 27 days after issuing an invoice before payment arrives. SMEs are also taking longer to pay suppliers, averaging 37.1 days, up from 31.9 days a year earlier.

Why it matters: Stronger sales and profit figures are encouraging, but overdue invoices can still leave businesses short of working capital, delaying supplier payments and increasing pressure across the supply chain.

CAA warns passengers over lithium battery fire risks

Passengers are being warned not to pack power banks or vapes in hold luggage ahead of the summer holiday period. The Civil Aviation Authority says lithium batteries are now the number one safety risk to aircraft, with devices found in hold bags nearly doubling in a year. Reported incidents rose from 316 in 2024 to 643 in 2025, while overheating or malfunction reports rose from 123 to 206.

The CAA says around two lithium battery incidents are now occurring each week. Passengers are being reminded to keep phones, vapes and power banks in the cabin, with only two power banks allowed per person and no charging onboard.

Economy & Policy

UK outlook improves as oil prices fall, but fiscal risks remain

The UK economic outlook has improved as oil prices slide below $75 per barrel, easing inflation concerns. Household inflation expectations fell to 3.8% in June, while Bloomberg Economics expects inflation could peak below 3% in the fourth quarter. This gives businesses some hope that cost pressures may ease, particularly where fuel and transport costs are important.

However, the wider picture remains difficult. The growth outlook facing Keir Starmer’s successor is still lacklustre, gilt yields remain high and the public finances are under pressure. Public debt is expected to worsen, limiting the room for tax cuts or direct business support.

Why it matters: Lower inflation expectations may help confidence and borrowing conditions, but weak growth and tight public finances mean SMEs should not assume a rapid return to easier trading.

MPs press government on extreme heat adaptation

MPs on the Environmental Audit Committee have written to Environment Secretary Emma Reynolds asking how the government plans to protect people and public services from worsening heat. The committee raised concerns about overheating in hospitals, care homes, schools and prisons, and asked about possible maximum workplace temperatures, active cooling and changes to school timetables.

The letter noted that there were more than 3,000 excess deaths due to heat in summer 2022, and warned that this could rise to 10,000 by mid-century without stronger adaptation measures. The UK recorded its hottest June day on Wednesday, with 36.1°C in Gosport, while schools, rail services and water supplies have already been disrupted.

Why it matters: Heat disruption affects productivity, staffing, transport and customer footfall, especially for SMEs with outdoor workers, delivery teams, workshops, hospitality venues or vulnerable staff.

Europe’s heatwave becomes most severe on record

The heatwave across Europe has been described as the most severe ever recorded in the region, with temperatures between 5°C and 12°C above seasonal averages across several countries. Researchers say climate change has made the event far more intense, noting that a June heatwave of this scale would have been virtually impossible 50 years ago.

High night-time temperatures and humidity are making the heat particularly dangerous. Around 45% of 854 cities across 30 European countries have broken, or are expected to break, wet-bulb globe temperature records.

Met Office outlook keeps heat in focus for the weekend

The Met Office outlook keeps heat at the centre of the UK picture today and into the weekend. Red extreme heat warnings have been reported for London, the South East and East of England, with amber warnings across much of England and yellow warnings more widely. London is expected to remain very hot today, before easing somewhat by Sunday.

For Friday businesses, the heat brings an immediate operational issue: outdoor working, deliveries, staffing levels, customer behaviour and the safe use of workplaces all need close attention. The weekend may bring some easing, but conditions remain uncomfortable and disruptive for many sectors.

Why it matters: SMEs may need to adjust shift patterns, protect staff, manage deliveries differently and watch for customer payment delays if heat disrupts normal trading.

World Cup overnight update adds a Friday note

Overnight at the World Cup, the final group games in Groups D, E and F produced several notable results. Turkey beat the USA 3-2, Ecuador surprised Germany 2-1, Ivory Coast defeated Curacao 2-0, and the Netherlands beat Tunisia 3-1.

Despite defeat, the USA still progressed to the knockout stage, while Germany, Ivory Coast and Ecuador also moved through from Group E. For many hospitality and retail businesses, the tournament remains a useful source of footfall and consumer spending, although heat and household budget pressure may shape how much people spend.

Why it matters: Major sporting events can lift hospitality, food, drink and retail demand, but businesses still need to watch staffing, stock, cashflow and short-term credit exposure.

Tax & Government

King reveals £12.9m tax bill

King Charles has disclosed a tax payment of £12.9m for 2024/25, the first time a British monarch has revealed their tax bill. The Prince of Wales reported a tax payment of £7.76m for the same period. Buckingham Palace said the disclosure was intended to improve transparency and accountability.

However, Dan Neidle of Tax Policy Associates criticised the report, saying it included figures without enough explanation of how they were calculated. The Sovereign Grant is set to rise to nearly £100m by 2027/28, funding royal duties and maintenance of historic buildings.

Haldane calls for tax relief reforms

Andy Haldane, president of the British Chambers of Commerce and former Bank of England chief economist, has warned that foreign investors are acquiring promising UK start-ups. He has called for tax relief reforms to encourage more domestic investment into British companies, describing such changes as “an absolute no-brainer”.

Haldane argues that current tax reliefs often support foreign investments without enough return for the UK economy. He wants ministers to tilt the playing field before more local businesses are lost to overseas buyers.

Campaigners urge property tax reform

Campaigners are calling for council tax and stamp duty to be replaced with a single annual property tax. The Fairer Share campaign, backed by Labour leadership frontrunner Andy Burnham, proposes a proportional property tax of 0.48% of property value, rising to 0.96% for second homes, empty properties and properties owned by foreign nationals.

The campaign says the reform could benefit 18m households, with average savings of £556, while raising £7.5bn. Owners of higher-value properties may face larger bills.

Burnham warned over wealth tax backlash

Andy Burnham is facing pressure not to introduce wealth taxes if he becomes Prime Minister. Lord O’Neill of Gatley, tipped as a possible senior economic adviser, warned that wealth taxes can be easily avoided and may raise less revenue than expected.

Burnham’s team is reportedly exploring higher capital gains tax to fund a cost-of-living package. Senior officials have warned that such changes could deter investment and potentially reduce revenue.

Entrepreneurs seek exit tax clarity

Entrepreneurs are urging Andy Burnham to rule out a possible exit tax that would impose capital gains tax on individuals leaving the UK. Andreas Adamides of Helm warned that adding further burdens to founders could encourage more people to leave. Dan Neidle said earlier speculation over an exit levy had already caused some entrepreneurs to leave the UK.

The concern is that tax uncertainty could reduce the UK’s attractiveness as a place to build and scale a business. For founders, clarity can be almost as important as the rate itself.

Business leaders urge PM to ditch tourist tax

Business leaders are urging Andy Burnham to abandon a proposed tourist tax. UKHospitality chief Allen Simpson warned that the tax would disproportionately affect lower-income families and could lead to the loss of 33,000 jobs.

Hospitality and tourism businesses are already facing pressure from wage costs, energy bills, food prices and uncertain consumer spending. Any added cost for visitors could affect demand in areas reliant on domestic and international tourism.

Magpies face £3.2m tax bill

Newcastle United owe £3.2m to HMRC over a “deliberate” tax failure linked to player transfers under former owner Mike Ashley. The bill includes £1.9m in unpaid tax and a £1.25m penalty. The case follows HMRC’s Operation Loom investigation, including a raid on St James’ Park in 2017.

HMRC alleges Newcastle used “sham” contracts to avoid tax obligations. The case is high profile, but the lesson applies well beyond football: tax compliance failures can create long-running financial and reputational exposure.

Industry & Investment

Steel tariffs softened after manufacturer warnings

The Government has revised its steel tariff plans after manufacturers warned the original measures could cause “immediate hardship”. Trade Minister Chris Bryant announced that the tariff-free steel import quota will be reduced from 60% to 51%, while the overall 50% import duty will remain in place.

The measures are due to be reviewed in a year. William Bain of the British Chambers of Commerce warned that ministers should act sooner if firms face severe financial distress.

IBM unveils sub-1nm chip design

IBM has unveiled a new chip design that it says could fit 100 billion transistors on a chip the size of a fingernail. The technology is described as equivalent to around 0.7nm, potentially making it the first known chip technology below 1nm.

IBM says prototype tests showed performance 50% better than its own 2nm chip and 70% greater energy efficiency. However, the technology is still several years away from production.

Apple and Xbox raise prices as AI chip demand drives costs higher

Apple is increasing prices for MacBooks and iPads worldwide because of rising memory and storage chip costs. Some laptops and tablets are rising by almost 20%, with Apple citing an extraordinary surge in chip demand linked to AI data centres.

Xbox is also raising console prices for the second time in less than a year, with the basic console rising by $100 to $499 and a higher-memory version rising by $150 to $749 from August. Xbox says storage and memory costs have more than doubled and could double again by 2027.

Energy & Costs

Energy debt hits record high

Ofgem data shows UK energy debt has reached a record £4.79bn, up 5% from the previous quarter. The number of accounts repaying debt rose by 3% for electricity and 4% for gas. Average debt among customers on repayment plans is now £828 for electricity and £679 for gas.

Citizens Advice reports a 70% increase in households seeking support since 2021. Ofgem says the issue requires a coordinated industry-wide response.

Why it matters: Rising household arrears are a warning sign for businesses that sell to consumers or rely on household confidence, as stretched customers may delay spending or payments.

International & Trade

Strait of Hormuz shipping halted after cargo ship attack

Shipping was halted in the Strait of Hormuz after a Singapore-flagged cargo ship came under attack. US officials blamed Iran, describing the incident as a drone strike. Iran had earlier warned ships to use only approved routes.

The incident prompted the UN’s International Maritime Organisation to pause plans to evacuate sailors stranded in the strait. Oil prices jumped in response, although the broader weekly trend in crude remains lower.

Venezuela earthquake death toll reaches 235

The confirmed death toll from Wednesday’s earthquakes in Venezuela has reached 235. Rescuers are continuing to search through collapsed buildings, with the two quakes described as the country’s largest, and possibly deadliest, in more than a century.

Countries around the world have pledged support. The US has sent navy ships and transport planes, while the IMF has committed $200m to rebuild infrastructure, according to acting president Delcy Rodríguez.

Global Market Summary

Today’s market picture is cautious after a stronger European session on Thursday gave way to a sharp technology-led selloff in Asia overnight. The uploaded market briefing shows European equities closed Thursday higher, helped by Bayer’s Supreme Court boost and semiconductor strength, but Friday opened with renewed pressure after Apple’s price rises triggered concerns about memory chip demand, consumer electronics costs and the sustainability of the AI-led hardware rally.

Equity markets

• FTSE 100: 10,489.74, with futures pointing around 0.6% lower early Friday after resilience on Thursday.
• STOXX Europe 600: 637.05, down around 0.5% in early Friday trading after closing Thursday up 0.8%.
• DAX: 24,813.82, down around 0.8% early Friday.
• CAC 40: 8,402.93, down around 0.4% early Friday.
• S&P 500: 7,357.49, with US futures around 0.6% lower.
• Dow Jones: 51,920.62,
• Nasdaq 100: 29,440.32, under pressure from the global tech selloff.
• Nikkei 225: 69,360.88, closed down 4.2%.
• Hang Seng: 22,684.56, closed down 1.8%.

Market drivers

Technology was the dominant driver. Apple’s decision to raise prices across Macs, iPads, home devices and Vision Pro raised fears that rising memory and storage costs are now affecting consumer demand. That pressure spread into Asian chipmakers, with Samsung Electronics and SK Hynix falling heavily and South Korea’s Kospi triggering another trading suspension.

A report that OpenAI may delay its IPO also hit sentiment, particularly in Japan, where SoftBank fell sharply. In Europe, technology stocks weakened and Zalando was hit by a regulatory probe. On the positive side, Bayer surged after a favourable US Supreme Court ruling in Roundup litigation, helping lift Thursday’s European session.

Geopolitics also remained in focus. A ship attack in the Strait of Hormuz briefly pushed oil higher, but crude prices resumed their weekly decline as Persian Gulf exports recovered. Quarter-end rebalancing may add volatility into today’s close.

Currencies

Sterling was modestly firmer against the dollar, helped by falling UK inflation expectations. The market briefing noted GBP/USD up 0.1% on Friday after a 0.3% rise on Thursday. For UK SMEs, a firmer pound can reduce some import cost pressure, although much depends on supplier contracts and hedging.

The euro remained under pressure, with EUR/USD around 1.1371 and near a one-year low. Against sterling, euro weakness may help UK importers buying from the eurozone, but it can make UK exports less competitive into European markets.

The dollar stayed firm, supported by Fed rate expectations and safe-haven demand. The yen remained near long-term lows against the dollar, with intervention concerns limiting further moves.

Commodities

Brent crude was around $73.76 per barrel on Friday morning, while WTI crude was around $71 per barrel. Oil briefly rose after the Hormuz ship attack but remained lower over the week as supply flows recovered.

For SMEs, lower oil is one of the more helpful developments in today’s briefing. It can ease fuel, freight and inflation pressure, although the Hormuz incident shows how quickly geopolitical risk can return.

Gold was around $4,026.73 per ounce, with ETF outflows continuing for a third consecutive day. A stronger dollar and expectations of higher-for-longer US rates weighed on precious metals.

Insolvency Watch

Winding-up Petitions (66)

• A TO Z COMMERCIAL PROPERTY SERVICES LIMITED
• ADRIATIC IMPORTS LIMITED
• ASHTON DIRECT LTD
• BFKP LIMITED
• CDB AUTOS LTD
• CROSSWAYS ENGINEERING LIMITED
• DAVID TANNEN SERVICES LIMITED
• ELFINIX LIMITED
• FL TRADING LIMITED
• FM CORNERSTONE LIMITED
• FODBURY PROPERTIES LIMITED
• FUSILIER DESIGN LTD
• GREENSAVE PROPERTIES LIMITED
• HAFTON PROPERTIES LIMITED
• HATTAM CONSTRUCTION LIMITED
• HAVENRIDGE (BRITANNIA) LIMITED
• HAVENRIDGE (STEVENAGE) LIMITED
• HAVENRIDGE LIMITED
• HIGHEST VALUE HOLDINGS LTD
• HINDHEAD DEVELOPMENT MANAGEMENT LIMITED
• I WOOD RENEWABLES LIMITED
• INVERWORTH LIMITED
• JBSI LIMITED
• JOHN COLLINGE (CIVIL ENGINEERING) LIMITED
• JUBILEE INN LTD
• KINGWARD INVESTMENTS LIMITED
• LAMUK LTD
• LATIS GROUP LIMITED
• LD ELECTRICAL SERVICES LIMITED
• LUKASZ LABOUR LIMITED
• M4-ANG LTD
• MAPLE TREE CARE (MIDLANDS) LIMITED
• MARDAN (BEXHILL) LIMITED
• MARDAN (BRISTOL) LIMITED
• MARDAN (COVENTRY) LIMITED
• MARDAN (NORWICH) LIMITED
• MARDAN (STEVENAGE) LIMITED
• MARDAN DEVELOPMENTS LIMITED
• MARDAN ESTATES LIMITED
• MARDAN PROJECTS CONSTRUCTION LIMITED
• MARDAN PROPERTIES NO.1 LIMITED
• MARDAN SECURITIES LIMITED
• NTONYA INTERNATIONAL INDUSTRIES LTD
• OKOLIEBOXING LTD
• PALLANCE LIMITED
• PASSION CARS LTD
• PAYMÁN HOLDINGS 5 LTD
• PIZZA FIREZZA LIMITED
• PROFORM CLADDING SERVICES LIMITED
• ROPETUNE LIMITED
• ROPETUNE (BRISTOL) LIMITED
• SANDHU COURIER LIMITED
• SHAKAN FOODS LIMITED
• SIMUTEC INTERNATIONAL LIMITED
• SKY FUTURES PARTNERS LIMITED
• SMARTPAY LIMITED
• SYNERGY CARERS LIMITED
• SYNWIN SOLUTIONS LTD
• T-THIRTEEN LTD
• TANNEN GROSVENOR LIMITED
• TENBY (LONDON) LIMITED
• THE INTERNET AGENCY GROUP LTD
• THE JAM SHACK CORNWALL LTD
• THE TANNEN GROUP LIMITED
• WATKINS CONSULTANCY LIMITED
• YEABU (LONDON) LIMITED

Keeping cash moving through heat, cost pressure and late payment risk

Today’s news shows why cashflow protection needs to be active, not occasional. SME profits are improving, but late payment is still trapping cash outside the businesses that earned it. At the same time, heat disruption, energy debt, tax uncertainty, technology costs and insolvency notices all point to a trading environment where payment behaviour can change quickly.

CPA helps businesses protect cashflow through ethical, professional and consistent credit control support. CreditCare reports can help assess customer risk before credit is extended, debtor monitoring can flag changes before problems become serious, and overdue account recovery can help bring money back into the business while preserving customer relationships. Stronger payment performance is not just about chasing debt; it is about giving your business the confidence to trade, invest and grow without quietly funding customers who pay late.

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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