UK Business News Today – 26 March 2026 | Economy, Markets & Insolvencies
UK businesses are facing a sharp deterioration in confidence as inflation fears return, driven by escalating tensions in the Middle East and rising energy costs. At the same time, tax and regulatory changes—from inheritance tax reforms to Making Tax Digital—are increasing financial and administrative pressure on SMEs. Global markets remain volatile, with oil prices rising again and central banks warning of further inflation risks. Against this backdrop, insolvency activity continues across a wide range of sectors, reinforcing the importance of strong credit control and cashflow protection.
James Salmon, Operations Director.
Key Developments
• UK consumer confidence drops to record lows as inflation fears surge
• Inflation expected to rise sharply despite steady February data
• Tax changes and compliance costs increase pressure on SMEs
• Global markets volatile as Iran conflict drives energy prices higher
• Insolvencies continue across multiple sectors
SME & Business Environment
Consumer confidence collapses to record lows
UK consumer confidence has fallen sharply to its lowest level in more than two years, with expectations for the economy dropping to -53. Households are increasingly concerned that the conflict in the Middle East will push inflation higher in the coming months.
Why it matters: Weaker consumer confidence increases the risk of slower payments, reduced spending and rising bad debt exposure for SMEs.
Next reports strong profits but warns on rising costs
Next delivered a 14.5% rise in pre-tax profits to £1.158bn, with sales up 10.8% to £7bn. However, the retailer warned that ongoing conflict in the Middle East could push up costs and dampen growth, with price increases likely if disruption continues.
Air fares surge as global disruption hits travel costs
Air ticket prices between Asia and Europe have surged by up to 560%, with average fares significantly higher than last year. The increase is being driven by airspace closures, higher fuel costs and reduced capacity.
Shift towards electric vehicles accelerates
Fuel price spikes are prompting consumers to shift towards electric vehicles and alternative energy solutions, with increased demand for EVs and clean-tech investments globally.
Economy & Policy
Inflation steady for now, but sharp rise expected
UK inflation held at 3% in February, but economists warn this is outdated data that does not reflect recent energy price increases. Inflation could exceed 5% later this year if current trends continue.
Why it matters: Rising inflation increases costs for businesses and customers alike, often leading to slower payments and increased credit risk.
Bank of England warns of lasting economic damage
Rate-setter Megan Greene warned that the Iran conflict could have long-lasting economic consequences, with sustained pressure on energy prices and inflation. Central banks may respond with further rate increases.
G7 convenes emergency economic and energy talks
Finance ministers, energy ministers and central bankers from the G7 will meet to address the economic and inflationary impact of the Middle East conflict.
Tax & Government
Inheritance Tax changes threaten family businesses
Changes to IHT relief will reduce the rate from 100% to 50% on qualifying assets above £2.5m. Business leaders warn this could force family-owned firms to sell assets or restructure to meet tax liabilities.
Why it matters: Succession planning pressures may lead to asset sales, restructuring or reduced investment, affecting long-term business stability and payment behaviour.
Business leaders warn IHT could force sales
Sir Rocco Forte has warned that inheritance tax changes could force families to sell businesses to meet liabilities, highlighting concerns about the UK’s business environment.
Why it matters: Forced sales or restructuring can disrupt supplier relationships and increase credit risk for SMEs trading with affected firms.
Making Tax Digital raises cost and privacy concerns
The rollout of Making Tax Digital will require hundreds of thousands of self-employed individuals and landlords to adopt new software, with significant upfront and ongoing costs. Critics also warn about data security risks.
Lower-income businesses face higher MTD burden
Lower-income sole traders are expected to face disproportionately high transitional costs when adopting digital tax reporting, with significant upfront expenses.
UK eases rules to attract foreign firms
The government plans to simplify rules allowing foreign companies to relocate to the UK without changing legal identity, aiming to boost competitiveness.
FCA proposes simpler financial advice
The FCA is consulting on new rules to make financial advice more accessible and affordable for consumers, particularly for straightforward investment decisions.
Industry & Investment
Arm unveils new AI chip with major revenue ambitions
Arm has launched its first in-house AI chip, targeting $15bn in revenue by 2031 as demand for data centre processing power grows.
Why it matters: Strong tech investment signals long-term growth opportunities, but near-term benefits for SMEs depend on broader economic stability.
AI expected to reshape labour markets
BlackRock CEO Larry Fink highlighted the growing importance of skilled trades as AI reduces demand for some office roles.
Why it matters: Labour market shifts may affect hiring costs, availability of skills and wage pressures for SMEs.
BBC appoints new director-general
Matt Brittin will take over leadership of the BBC amid legal challenges and increasing competition from streaming services.
Why it matters: Limited direct impact, but reflects broader structural changes in media and consumer behaviour.
US court ruling raises risks for tech firms
Google and Meta have been found liable in a US case over addictive platform design, with thousands of similar lawsuits pending.
Why it matters: Increased regulatory and legal risk for major firms can ripple through supply chains and investor confidence.
Property & Housing
London house prices continue to fall
London property prices have declined for six consecutive months, with growth slowing across the UK housing market. Mortgage deals are being pulled as inflation expectations rise.
Why it matters: A weaker housing market can reduce consumer spending and increase financial stress, affecting SME customers’ ability to pay on time.
Global Market Summary
Global markets remain highly sensitive to developments in the Middle East, with investor sentiment shifting rapidly between optimism and caution.
Equities:
The FTSE 100 rose 1.6% to close the previous session before easing back to 10,011. European markets also gained, with the STOXX Europe 600 up 1.4%, the DAX at 22,622 and the CAC 40 at 7,783. In the US, the S&P 500 rose 0.5% to 6,591, the Dow Jones reached 46,429 and the Nasdaq climbed to 21,929.
However, futures are now pointing lower, indicating renewed caution. Asian markets declined overnight, with the Nikkei 225 at 53,603 and the Hang Seng down to 24,856 as uncertainty around ceasefire talks weighed on sentiment.
Market Drivers:
The dominant driver remains the Iran conflict. Initial optimism around a proposed ceasefire triggered gains earlier in the week, but renewed tensions have pushed markets back into risk-off mode. Central banks are also signalling potential rate hikes as energy-driven inflation pressures build.
Currencies:
Sterling weakened slightly, with GBP/USD at 1.3351 and GBP/EUR around 1.155 (EUR/GBP 0.8655). The pound’s weakness reflects inflation concerns and reduced expectations of rate cuts.
Commodities:
Oil prices have rebounded sharply. Brent crude is around $106 per barrel and WTI near $93, reflecting ongoing supply concerns. Gold has risen to $4,428 per ounce as investors seek safe havens.
Overall, markets are balancing hopes of diplomatic progress against the reality of sustained geopolitical risk and rising inflation.
Insolvency Watch
Administrations (10)
17 BERKELEY STREET (FLAT 8) LIMITED
FLOREEDA FABRICATIONS LIMITED
GLOBAL ASSET PORTFOLIO LIMITED
HHA NO 1 LIMITED
JM WHOLESALE LIMITED
OAKWOOD CT PROPERTY LIMITED
ONE HOLDING LIMITED
SHOJIN FINANCIAL SERVICES LIMITED
SHOJIN PROPERTY PARTNERS LIMITED
THE HOUSE NAME PLATE COMPANY LIMITED
TBC RECRUITMENT LIMITED
UK – OPERATIONAL PROJECT SUPPORT LIMITED
Liquidations (70+)
A & J MADEIRA LIMITED
AQAR INVESTMENTS LIMITED
ARANTIS LTD
ASK SOLIHULL CONSULTING LTD
ASIFS AFRO CARIBBEAN GROOVE LTD
BARIC (CONSULTANTS) LIMITED
BELL OSBORNE LIMITED
BITPIPE CONSULTING LTD
BUTT MILLER CONSULTANCY LIMITED
BYRNE’S (CHESTER) LTD
CALIBRE CONSULTANTS LTD
CAPACITY4CARE LIMITED
CBAM INVESTMENTS LIMITED
CDC ASSOCIATES LIMITED
CHEROWBRIER SERVICES LIMITED
CONTENT FLOW LIMITED
COUNTERACT LTD
CRADLEY PLATING CO. LIMITED
CRITERION ANALYTICS LTD
DAP ASSOCIATES LIMITED
DEER DESIGNER LTD
DIGITAL SPARKLE LIMITED
DSKY TECH LTD
EMERALD FOREST LTD
ENUMERATOR LIMITED
FONTALBA LIMITED
FONTIS PROPERTY MANAGEMENT LIMITED
GGJ ENTERPRISES LIMITED
GOODYEAR RESTAURANT LIMITED
GSB CONSULT LTD
HAYAGOTATOURBOI TOURING LLP
HAYWARD MCMULLAN ARCHITECTS LIMITED
HERON MARINE LIMITED
HULME AND POTTS (CONTRACTS) LIMITED
INSPIRIT PADDINGTON TOPCO LIMITED
INSTANT COFFEE SUPPLIES LIMITED
JME CONSULTING LIMITED
JJ CONSULTING LIMITED
KEEN AND CO CONSULTING LTD
KNOVEO SERVICES LIMITED
LANCASHIRE ELECTRICAL SERVICES LTD.
LIL BYTE LTD
LINCS ARCHIVING SOLUTIONS LIMITED
LONG REACH INVESTMENTS LIMITED
MANNING FINANCIAL SERVICES LIMITED
MYLROI RAIL CONSULTING LIMITED
NEWTON FINANCIAL SERVICES LTD.
NIGEL POULTON LTD
OVAGATE LIMITED
P. CHESTER & SON (BEDFORD) LIMITED
PROMATEC SOLUTIONS LIMITED
QS RAIL (UK) LTD
R C KNIGHTLEY LIMITED
RACHEL PITMAN MEDICAL LIMITED
RED MILLIE CONSULTING LTD
ROSSGOLD LIMITED
SJM23 HOLDINGS LIMITED
SC COMPLIANCE LTD
SNEYD CONSULTANCY LTD
SOFT EDGE CONSULTANTS LIMITED
SOLARIS INVESTMENTS LIMITED
SQUARE EYES MANAGEMENT LIMITED
STEPHEN BLYTHE LTD
STEPHEN WELFARE ASSOCIATES LIMITED
STRATEGIC PEOPLE INSIGHTS LIMITED
T FARROW CONSTRUCTION LIMITED
THE QUARRY INN LIMITED
TIGER’S EYE CONSULTING LIMITED
TOURBILLON INVESTMENT MANAGEMENT LTD
TPS LEAN COACHING LTD
TRODDEN EARTH LTD
UBIK DIGITAL LIMITED
VERDE VITA LIMITED
WESTBOURNE LEGAL SERVICES LIMITED
WYNDHAM DENTAL LTD
YEGANE GROUP LIMITED
Winding-up Petitions (6)
HILL IN THE FOLD LIMITED
IBUILD GLOS LTD
NOTTINGHAM STEEL SUPPLIES LIMITED
REAL ENERGY LIMITED
SANDBANKS GROUP HOLDINGS LIMITED
SGC GROUP LTD
STICKBUILD SOUTH EAST LTD
Winding-up Orders (1)
HORATIO RISK CONSULTING LLP
What CPA can do for you
With inflation rising, costs increasing and insolvencies continuing across multiple sectors, maintaining strong cashflow discipline is more important than ever.
CPA helps businesses stay in control by providing:
• CreditCare reports to assess customer risk before you trade
• Ongoing debtor monitoring to spot early warning signs
• Fast, professional recovery of overdue invoices
• A structured escalation process that protects relationships
Early action makes a measurable difference. The longer invoices remain unpaid, the harder they are to recover.
Just call 020 8846 0000 (business hours) 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.