UK Business News Today: 27 August 2026 | Economy, Markets & Insolvencies

UK businesses are balancing a widening range of financial pressures today, from industrial energy costs and uncertainty over future taxation to high borrowing costs and increasingly disruptive weather. There are some more positive signals: the strong summer has supported the domestic tourism economy, business rates reform could ultimately ease pressure on the high street, and technology investment remains robust. For SMEs selling on credit, however, the common thread is the need to watch customers’ costs, liquidity and payment behaviour closely as margins remain vulnerable.

James Salmon, Operations Director.

Key Developments

• UK manufacturers reportedly paid an average £238 per MWh for electricity, around four times the price faced by some international competitors.
• Business rates reform is back in focus after Andy Burnham’s new adviser previously advocated tax cuts worth up to £9bn a year for high street businesses.
• Barclays says 60% of businesses are investing in, or planning investment in, technology to help cope with extreme heat.
• Nvidia’s forecast for roughly 70% revenue growth in fiscal 2028 strengthened global technology markets and confidence in continued AI investment.
• Today’s Insolvency Watch contains 100 notices, including 85 winding-up petitions.

Economy & Policy

Bank of England faces pressure to reconsider active bond sales

Investors and analysts are calling on the Bank of England to reconsider the active sale of government bonds as it unwinds quantitative easing. Critics argue that selling gilts into the market is adding upward pressure to government borrowing costs while crystallising substantial losses for taxpayers, estimated at around £125bn. The yield on 30-year UK government bonds has risen to its highest level since 1998.

Some market participants argue that the Bank’s balance sheet could continue shrinking naturally as bonds mature, without additional active sales.

Why it matters: Persistently high government bond yields can feed through into commercial borrowing costs, refinancing conditions and wider pressure on business investment.

Government asks Bank of England to support digital payments innovation

The Treasury is giving the Bank of England a secondary legal objective to support innovation in digital money and payments. Financial stability will remain the Bank’s primary responsibility, but ministers want regulation to support the UK’s competitiveness in areas including stablecoins and new payment technologies.

The move reflects the Government’s ambition to maintain London’s position as a global financial centre as digital payment systems evolve.

Tax & Government

Business rates adviser previously backed £9bn of high street tax cuts

Jerry Schurder, Andy Burnham’s newly appointed business rates adviser, previously argued for a substantial reduction in the tax burden facing high street businesses. In 2019 he proposed cutting the business rates multiplier by around one-third, at an estimated Treasury cost of £8bn to £9bn annually.

Schurder described business rates as an increasingly excessive burden and suggested replacing some of the lost revenue through alternative taxes, including a levy on agricultural land. He is due to present recommendations to the Prime Minister in March 2027 ahead of the next business rates revaluation in 2029.

Why it matters: Business rates are a fixed cost that must be met regardless of sales performance, making reform particularly important to retailers, hospitality operators and other property-intensive SMEs.

IPPR proposes shifting more of the tax burden towards wealth and pensioners

The Institute for Public Policy Research has proposed substantial changes to the way the UK raises tax as the cost of an ageing population increases.

The report recommends a 2% National Insurance surcharge on pensioners with annual earnings above £12,750, potentially affecting 9.6 million people and raising around £2bn. It also advocates replacing council tax and stamp duty with a proportional property tax and bringing capital gains tax rates closer to income tax rates.

Supporters argue that the existing system places too much pressure on working-age taxpayers, while critics warn that higher taxes on investment, property and retirement income could create new economic distortions.

Banks emphasise community investment amid tax uncertainty

Lloyds and NatWest are increasing the visibility of their community investment programmes as debate continues over whether banks could face higher taxation.

NatWest has announced additional support for farmers affected by drought, while Lloyds is committing £100m to helping young people gain employment skills. Analysts have suggested banks are increasingly highlighting their contribution to the wider economy as policymakers consider future tax measures.

Energy & Costs

UK manufacturers face some of the world’s highest industrial electricity prices

A Civitas report says Britain’s push towards net zero has yet to translate into lower electricity costs for manufacturers. UK manufacturers reportedly paid an average £238 per megawatt-hour for electricity last year, around four times the amount paid by some international competitors.

Researchers estimate British manufacturers spent approximately £16.6bn on energy in 2024. At equivalent US energy prices, that bill could have been around £5.2bn lower.

High industrial electricity costs affect competitiveness as well as margins, particularly in energy-intensive manufacturing, engineering and processing industries.

Extreme heat is becoming a direct operational cost for SMEs

Research from Barclays suggests this summer’s repeated heatwaves have changed both business investment plans and consumer behaviour. Some 60% of businesses are investing in, or considering investment in, technologies designed to help them adapt to extreme heat.

More than a quarter of small businesses reported that hot weather had negatively affected productivity. Companies are responding through additional employee breaks, flexible working, altered hours and investment in cooling systems. Barclays also found that corporate clients specialising in air conditioning saw cash inflows rise 4.3% year on year during the second quarter.

Consumer behaviour changes as temperatures climb too. Survey respondents indicated that temperatures above 25.1C discouraged shopping, while temperatures above 24.2C reduced willingness to commute.

Retail & Consumer

Hot summer gives UK staycation businesses a lift

Britain’s unusually hot and sunny summer appears to have encouraged more consumers to holiday at home. Sykes Holiday Cottages says summer bookings are 5% higher than a year ago, while its research suggests 38% of Britons plan to take their main holiday domestically, up four percentage points from last year.

Barclays card data points in a similar direction. Overall travel spending fell 0.3% year on year in July and airline spending dropped 6%, while hotels, resorts and accommodation spending increased 2.6% and spending through travel agents rose 2.5%.

The UK tourism industry directly contributed around £70bn to the economy in 2024 and supported approximately 1.4 million jobs.

The pattern could continue into 2027 if international travel remains affected by high energy costs and geopolitical uncertainty.

Industry & Investment

Thames Water creditors seek clarity before committing another £2bn

Thames Water’s creditors are reportedly at an impasse with the Government as lenders seek clarity over the possibility of future renationalisation.

Creditors are being asked to provide a further £2bn, potentially as soon as October, but want Andy Burnham’s Government to clarify its intentions before committing additional capital.

The dispute highlights the continuing financial uncertainty surrounding Britain’s largest water supplier and the difficult balance between private creditor support, public policy and continuity of essential infrastructure.

International & Trade

US proposes treating billion-dollar companies as “small businesses”

The Trump administration is proposing changes to the eligibility rules used by the US Small Business Administration. Under the proposed classification, some companies employing more than 3,000 people and generating revenues above $1bn could potentially qualify as small businesses.

Critics argue that broadening eligibility would make genuinely small companies compete with much larger organisations for federal loans, grants and other support.

Meta agrees settlement worth up to $16.7bn over youth-harm claims

Meta has agreed a proposed settlement worth as much as $16.7bn with 29 US states over allegations that Facebook and Instagram harmed young people and that the company knew about damaging effects associated with its platforms.

The settlement would introduce additional safeguards, including usage restrictions for younger users. Meta would only pay the full amount if TikTok and YouTube also agree comparable settlements and restrictions.

The case underlines the growing regulatory and financial exposure facing large technology platforms.

Nvidia outlook reinforces confidence in AI investment boom

Nvidia expects revenue to grow by approximately 70% in fiscal 2028, according to chief financial officer Colette Kress. Analysts had been forecasting growth of roughly 45%.

The guidance strengthened confidence that demand for AI infrastructure remains exceptionally strong, with Nvidia indicating that supply rather than demand is currently constraining growth.

The announcement lifted Nvidia shares and technology stocks internationally, reinforcing expectations that investment in data centres, semiconductors and AI infrastructure will continue.

Global Market Summary

Global markets are being pulled between strong enthusiasm for artificial intelligence and continued concerns over inflation, interest rates and geopolitical risk.

UK and Europe

The FTSE 100 closed Wednesday at 10,878.12, down 0.02%, ending a six-session winning streak after briefly reaching a record intraday level. Early Thursday trading subsequently saw the index fall around 0.6%.

The STOXX Europe 600 ended at 656.41, effectively flat on the session. Healthcare stocks were among the weaker areas.

The Euro STOXX 50 finished at 6,470.74, up 0.23%.

Germany’s DAX traded at 26,347.65, up 0.23% on Thursday morning, while France’s CAC 40 stood at 8,411.15, down 0.61%.

Lower oil prices have supported travel-related shares while putting pressure on energy companies.

United States

US markets finished little changed on Wednesday before Nvidia released its results.

• S&P 500: 7,675.70, down 0.02%
• Dow Jones: 53,463.88, down 0.21%
• Nasdaq Composite: 26,130.20, down 0.08%

The picture strengthened considerably after the close. S&P 500 futures were subsequently around 0.7% higher, while Nasdaq 100 futures gained approximately 1% following Nvidia’s outlook.

Core US PCE inflation stood at 3.3% year on year, keeping expectations of further Federal Reserve tightening alive.

Investors are now focused on Fed chair Kevin Warsh’s Jackson Hole speech for indications about how the central bank will balance inflation, employment, bond yields and financial stability.

Asia

Asian markets were mixed, although semiconductor-heavy markets benefited from Nvidia’s results.

The Nikkei 225 fell 0.20% to 66,131.98, while the Hang Seng declined 0.34% to 25,565.74.

South Korea was considerably stronger, with the Kospi rising 1.53% as AI-linked memory chip companies rallied.

Market drivers

The most important driver is Nvidia’s forecast for around 70% revenue growth in fiscal 2028, which has renewed confidence that global AI spending remains strong.

Interest-rate expectations remain another major influence. US inflation is still above target, the Bank of Korea has raised rates to 3%, and several other central banks are dealing with renewed inflation pressure.

Energy markets remain highly sensitive to the Middle East. Reports of discussions between Iran and Oman over an interim framework for shipping through the Strait of Hormuz have helped push oil prices lower, although no final agreement has been confirmed.

Currencies

Sterling was relatively stable but marginally softer against both the dollar and euro.

• GBP/USD: approximately 1.3584, down 0.08%
• GBP/EUR: approximately 1.1659, down 0.08%

Currency markets are largely waiting for greater clarity from Jackson Hole before making significant moves.

Commodities

Oil prices continued to retreat as hopes increased that shipping disruption around the Strait of Hormuz could ease.

• Brent crude: approximately $87.33 a barrel, down 0.58%
• WTI crude: approximately $81.56 a barrel, down 0.81%
• Gold: approximately $4,597 an ounce, up 0.14%

Lower oil prices offer some relief after the surge in global energy costs, but geopolitical risk remains high and businesses should not assume that recent falls will be sustained.

For UK SMEs, the broader market message is mixed. Falling oil prices may ease some cost pressure, but borrowing costs remain elevated and central banks are still concerned about inflation. Businesses extending credit should therefore continue to watch both customer liquidity and refinancing exposure.

Insolvency Watch

Administrations (3)

• AVARO DEVELOPMENTS LTD
• EGR WEALTH LIMITED
• TRELLUS HEALTH PLC

Liquidations (12)

• BELLIS BROS. (TYRES) LIMITED
• HAMILTON COOPER INVESTMENTS LIMITED
• JDR PROP CO LTD
• KILROY CONSULTING LTD
• KUDOS INTERNATIONAL LIMITED
• MKM 13 LIMITED
• MOSAIC ROBOTICS LTD
• PEOVER EYE INVESTMENTS LIMITED
• PRO4MA UK LIMITED
• STEVE PAGETT LTD
• SUGAK CONSULTING LTD
• THE NATIONAL ASSOCIATION FOR GIFTED CHILDREN

Winding-up Petitions (85)

• 10 OBS LLP
• 24K JEWELLERS LTD
• A & S RETAINING STRUCTURES LTD
• A J LIFTING LIMITED
• A M PROPERTY SEVICES LTD
• AANVI GROUP LIMITED
• ABSOLUTE DESIGN (CORNWALL) LTD
• ADVANCE ACADEMY UK LIMITED
• AFRO ANGLO OIL AND GAS BLOCK CONSULT AND MACHINERY LTD
• AHMED IBRAHIM MEDICAL LIMITED
• AIM HOSPITALITY LTD
• AM PARTNERS GROUP LIMITED
• ARCHER BUILDING CONSULTANCY LIMITED
• AREAWISE LIMITED
• BBSM LTD
• BEE8 LTD
• BLACK PENNY GROUP SERVICES LIMITED
• BLOOMSBURY LAW TUTORS LTD
• BOURNES PROJECTS LIMITED
• BROADWALK PROPERTY MANAGEMENT LTD
• BUILDKENT (SE) LTD
• CATALYST CARE LIMITED
• CHIC MANUFACTURING LTD
• CHINA EATS LTD
• CITY CARS LIVERPOOL LTD
• CONMISSURA LTD
• CYPRIAN & CO SERVICES LTD
• EBBSFLEET UNITED FOOTBALL CLUB LIMITED
• ELEVARE HOSPITALITY LTD
• ELEVATE BUSINESS SUPPORT LTD
• ELITE MANAGEMENT GROUP LTD
• FEEL WARM GLAZING LTD
• FIXING ELEMENTS LTD
• GLOBAL WATERPROOFING SOLUTIONS LTD
• GR8 WATCHES LTD
• HIVAC ENGINEERING LTD
• HSK CONTRACTORS BUILDING SERVICES LTD
• IGI INEX TRADING (UK) LTD
• IMPACT ENERGY LIMITED
• INFINITE DESIGNS NW LTD
• INNOVATION TECHNOLOGY AND BUSINESS SOLUTIONS LIMITED
• JML ENGINEERING SERVICES LIMITED
• KABAYAN BUILDERS LTD
• KIEGEL LTD
• KNOCKHOLT PROPERTIES LIMITED
• LCI RAIL GROUP LIMITED
• MASTERCOM HOLDING UK LIMITED
• MAVI PROPERTIES (THE THREE EAGLES) LTD
• MC GLASSWORKS LTD
• MODEL ANALYTICS LIMITED
• MODUS OPERATIONS LIMITED
• NK DESIGN & BUILD LTD
• OM 19 TRADING LTD
• PEEL CONSTRUCTION LIMITED
• PET SUPPLIES GALORE LTD
• PIGEON HILL LIMITED
• PINK PROPERTY CONSULTANTS LTD
• POSFIN CAPITAL LIMITED
• PRADUS LTD
• QUANTIS SERVICES LIMITED
• QUANTUM PAYROLL SERVICES LTD
• RBC CITY LTD
• RENT GLOBAL RESOURCES LIMITED
• RESIDENCE CLINIC LTD
• RICH COUTURE LTD
• RIDGEWOOD BUSINESS SUPPORT LTD
• RUE GROUP LIMITED
• SHANKLIN BEACH HOTEL (SOUTH) LIMITED
• SIGNATURE BARGAINS LTD
• SIX CS CARE AGENCY LTD
• SKY HOME LIVING LIMITED
• SMART FAST FOOD LTD
• SOUTH SANDES LTD
• SPARK LEADERSHIP LTD
• STAFFRIDGE LIMITED
• STONEHAVEN SEARCH LIMITED
• SYNC WORLD LTD
• TENANTS HISTORY LIMITED
• TETLOW HAIR DESIGN LIMITED
• THE OXFORDSHIRE BREWERY AND BEERS LTD
• TRACE DESIGN CONSULTANTS LTD
• TSL CONTRACTORS AND SOLUTIONS LIMITED
• URBANART PROJECTS LTD
• WESTBORN LTD.
• XYZ 2026 LIMITED

Keeping cash moving as operating pressures multiply

Today’s news shows why credit risk cannot be judged solely by whether a customer is currently trading.

Energy costs, higher financing expenses, taxation, extreme weather and changing consumer behaviour can all weaken a business’s ability to pay suppliers long before serious financial distress becomes visible.

Strong credit control helps identify those changes early. CPA’s CreditCare credit reports can help businesses assess customers before extending credit, while debtor monitoring provides warning when existing customers’ circumstances begin to change.

Where invoices become overdue, early action matters. CPA can support Members with professional overdue account recovery and credit control processes designed to improve payment performance while preserving valuable customer relationships.

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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