UK Business News Today – 27 March 2026 | Economy, Markets & Insolvencies

UK businesses are facing a tightening squeeze on cashflow as economic growth weakens, costs rise and geopolitical tensions continue to disrupt markets. Business rates changes, slowing consumer demand and rising wage pressures are all converging at once, while the Iran conflict is feeding through into higher energy prices, weaker sentiment and reduced spending. Against this backdrop, insolvencies remain elevated, underlining the importance of strong credit control and early action on overdue accounts.

James Salmon, Operations Director.

Key Developments

• Business rates changes could put up to 340,000 firms at risk
• OECD downgrades UK growth as inflation pressures rise
• Retail sales fall as consumers cut spending and save more
• Iran conflict continues to drive energy prices and market volatility
• Insolvencies continue across multiple sectors and regions

SME & Business Environment

Business rates changes raise concerns for small firms

A survey by the Federation of Small Businesses warns that upcoming business rates changes could significantly increase financial pressure on SMEs. Up to 340,000 firms could be at risk of closure, with many also considering job cuts or even selling their businesses. The changes, which include a revaluation and the removal of pandemic-era reliefs, will particularly affect retail, hospitality and leisure sectors, while government revenues from business rates are expected to rise sharply.

Why it matters: Rising fixed costs reduce cashflow and increase the risk of late payments as businesses prioritise survival.

Pay in retail and hospitality firms soars

Wages in retail and hospitality have risen by 18% over the past year, driven largely by increases in the National Minimum Wage and changes in employment law. However, employment growth has fallen slightly, suggesting businesses are absorbing higher wage bills by limiting hiring. This creates a challenging balance between rising labour costs and constrained growth.

Why it matters: Higher wage costs tighten margins, making it harder for businesses to pay suppliers on time.

Labour to cut red tape to speed-up decision making

The Government has announced plans to streamline regulation and reduce delays caused by overlapping consultations and processes. The aim is to speed up delivery of policy and infrastructure decisions across the UK. Ministers argue that excessive bureaucracy is slowing economic progress and investment.

Why it matters: Faster decision-making could support business activity, but uncertainty during reform periods can delay payments and investment decisions.

UK steel strategy aims to protect domestic industry

The Government has unveiled a new steel strategy aimed at strengthening the UK’s domestic industry through import restrictions and higher tariffs. The plan includes cutting import quotas and increasing tariffs to protect against global overcapacity, particularly from China. However, the cost of these interventions could have wider economic implications.

Why it matters: Policy interventions can shift supply chains and costs, affecting pricing, margins and payment reliability across industries.

Economy & Policy

UK faces biggest hit to growth from Middle East war, OECD warns

The OECD has sharply downgraded the UK’s growth forecast for 2026 to 0.7%, citing the impact of the Iran conflict and rising energy prices. Inflation is expected to rise to 4%, while weaker growth reduces economic momentum. The Bank of England is now expected to delay interest rate changes amid the uncertainty.

Why it matters: Slower growth and higher inflation increase the risk of delayed payments and customer defaults.

Iran conflict sends ‘ripple of fear’ through consumers

Consumer confidence has fallen again, with households becoming more cautious about spending. At the same time, savings are rising as people prepare for potential economic shocks. Expectations for the UK economy have weakened significantly.

Why it matters: Reduced consumer spending directly impacts SME revenues and slows customer payment cycles.

Economic toll of Iran war hits Europe

The wider European economy is also under pressure from the conflict, with rising energy costs and weakening growth affecting key industries. Governments are considering support measures as the impact spreads across sectors. There is growing concern that reduced incomes will further dampen demand.

Why it matters: Weak European demand can reduce UK business income and increase cross-border payment risk.

Labour urged to introduce war profits tax

Campaign groups are calling for a windfall tax on companies benefiting from the Iran conflict, including energy firms and banks. The proposal aims to redistribute profits generated by global instability and fund economic resilience measures. The Government is under pressure to consider broader tax reforms.

Why it matters: Tax changes can alter business costs and liquidity, affecting payment behaviour across supply chains.

US warns UK over closer alignment with EU rules

The US has warned that closer UK alignment with EU regulations could affect trade relations with Washington. The comments follow Government plans to adopt EU-style standards in some sectors. This highlights ongoing tensions around post-Brexit trade policy.

Why it matters: Trade uncertainty can delay contracts, disrupt supply chains and slow payments.

Industry & Investment

CMA raises concerns over ABF’s Hovis acquisition

The UK competition regulator has raised concerns that Associated British Foods’ planned acquisition of Hovis could reduce competition in Northern Ireland. While no issues were found elsewhere in the UK, the deal faces scrutiny in specific regional markets.

Why it matters: Regulatory delays can disrupt business plans and delay payments within affected supply chains.

Pernod Ricard in merger talks with Brown-Forman

Pernod Ricard is in discussions over a potential merger with Brown-Forman as both companies face declining demand. The proposed deal would effectively combine two major global spirits producers in response to market pressures.

Why it matters: Industry consolidation often reflects weakening demand, which can ripple down to suppliers through slower payments.

US judge blocks move to blacklist AI firm Anthropic

A US court has blocked a government attempt to blacklist AI firm Anthropic, ruling the decision could severely damage the company. The case highlights tensions between national security concerns and commercial innovation.

Why it matters: Regulatory uncertainty in major markets can disrupt investment flows and payment stability in tech supply chains.

Employment & Labour

Furniture firm collapses putting 300 jobs at risk

Westbridge Furniture has entered administration, citing falling sales, high interest rates and inflation. Around 300 jobs are now at risk as the company seeks a solution. The collapse reflects ongoing pressure in manufacturing and retail-linked sectors.

Why it matters: Business failures increase bad debt risk for suppliers and highlight the importance of monitoring customer financial health.

Housing & Consumers

UK house price growth slows as rents rise

House price growth has slowed significantly, while rents continue to rise across the UK. Higher mortgage rates and economic uncertainty are dampening demand in the housing market. At the same time, rental pressures are increasing household costs.

Why it matters: Financial strain on households reduces discretionary spending and increases late payment risk for businesses.

UK retail sales decline as consumer caution rises

Retail sales fell for the first time in months as households cut spending and prioritise saving. Concerns over inflation and energy costs are driving more cautious behaviour. Economists warn that the sector entered this period of uncertainty already on weak footing.

Why it matters: Falling sales mean reduced cash inflow, increasing reliance on credit and slowing payments to suppliers.

Financial Systems & Regulation

Pension transfer system ‘not fit for purpose’

Which? has criticised delays in pension transfers, with some taking up to 15 months due to outdated processes. Regulators are proposing reforms to modernise the system and improve efficiency.

Why it matters: Inefficient financial systems tie up funds and reduce liquidity across the economy.

FRC reveals ‘major evolution’ in supervisory model

The Financial Reporting Council is shifting to a more risk-based regulatory approach, focusing resources on areas of weaker audit quality. The move is intended to support competitiveness while maintaining oversight.

Why it matters: Changes in regulation can affect confidence in financial reporting and influence credit decisions.

NS&I chief executive resigns after operational failures

The resignation follows revelations that funds belonging to deceased savers had not been returned to families. The organisation has pledged to correct the issue and publish a recovery plan.

Why it matters: Administrative failures can delay payments and highlight risks in financial processes.

Energy & Environment

Great Britain sets new wind generation record

The UK has set a new wind generation record, with renewables supplying a majority of electricity during peak periods. This reduced reliance on gas and demonstrated progress toward energy transition goals.

Why it matters: Lower energy costs can ease business expenses, but transition periods can create pricing volatility.

Arctic sea ice hits record low

New data shows Arctic sea ice has reached its lowest recorded winter level for the second year running. The trend reflects accelerating climate change and long-term environmental shifts.

Why it matters: Climate impacts can influence energy markets, costs and long-term business risk.

UN vote recognises transatlantic slave trade and reparations debate

The UN has passed a resolution recognising the transatlantic slave trade and the case for reparations. The vote highlights growing global discussions around historical accountability.

Why it matters: Geopolitical developments can influence international relations, trade and economic stability.

Late Payment & SME Policy

Government late payment reforms welcomed by business groups

Business groups have welcomed new proposals aimed at tackling late payment, including stronger powers for the Small Business Commissioner and tighter rules on payment terms. However, concerns remain around enforcement and implementation.

You can read a deeper analysis here:
https://cpa.co.uk/late-payment-crackdown-tough-new-laws-but-will-they-work/

Why it matters: Stronger enforcement could improve payment behaviour, but weak implementation risks continued delays.

Global Market Summary

Global markets remain under heavy pressure as the Iran conflict continues to dominate sentiment and drive volatility.

In the UK, the FTSE 100 closed down 1.33% at 9,972.17, with further weakness leaving it around 9,928 this morning. European markets also fell, with the STOXX Europe 600 down 1.1%, the DAX at 22,353 and the CAC 40 at 7,727. Investors moved away from risk assets as energy prices surged and geopolitical uncertainty intensified.

In the US, markets experienced their worst session since the conflict began. The S&P 500 fell 1.7% to 6,477, the Dow Jones dropped 470 points to 45,960, and the Nasdaq moved into correction territory, now more than 10% below its recent highs. Investors are increasingly concerned about inflation and growth risks linked to the war.

Asian markets were mixed overnight. Japan’s Nikkei 225 fell 0.4% to 53,373, while Hong Kong’s Hang Seng rose 0.4% to 24,951 and China’s Shanghai Composite gained 0.6%. The divergence reflects stronger domestic data in China but continued global uncertainty.

Currency markets show the dollar strengthening as a safe haven. Sterling weakened to around $1.33 against the dollar and €1.15 against the euro.

In commodities, Brent crude remains elevated above $110 per barrel, reflecting fears of prolonged disruption to energy supplies. WTI crude is near $95. Gold rose to around $4,455 per ounce as investors seek safe assets, while copper has edged higher but remains under pressure from growth concerns.

Overall, markets are being driven by a combination of geopolitical risk, energy price shocks and inflation concerns, all of which are feeding into weaker growth expectations globally.

Insolvency Watch

Administrations (4)

• B.PRINT & DISPLAY LIMITED
• HOWARD ROAD (34RC) LIMITED
• REFORM POLYTHENE LIMITED
• SKS BAILEY GROUP LIMITED

Liquidations (82)

• 2CE CONSULTANCY LTD
• ACONPEX (UK) LIMITED
• AHMAD CONSULTANTS LIMITED
• AJS PROJECT SOLUTIONS LTD
• ANAGA PROPERTIES LIMITED
• ANGLO-MALAY CONSULTANTS LIMITED
• BACK EDGE MEDIA LIMITED
• BLENDWORTH LTD
• BOULEVARDS – MORPETH LTD
• BRAND 7 LIMITED
• BRISTOL SPINE CLINIC LIMITED
• BROADLAND GATE LAND LIMITED
• BROOK ADVISORY ASSOCIATES LIMITED
• CAPITAL D’EXPLORATION LIMITED
• CHARLES MCDONALD LTD
• CHASE DISTILLERY LIMITED
• CHEUNG CONSULTING LIMITED
• CMG TAX AND FINANCE CONSULTANCY LIMITED
• CORE PROJECTS LIMITED
• CORRAL LIMITED
• CRESSWELL TRUST COMPANY
• D3LIVERY LTD
• DAVID FRANCIS (TRANSPORT) INTERNATIONAL LIMITED
• DEMPSTER INVESTMENTS LIMITED
• DORIC PUB COMPANY LIMITED
• DOT NOTATION LIMITED
• DR KAFAFY LTD
• EAC CONSULTING LTD
• EFFECTIVE ARCHITECTURE SOLUTIONS LIMITED
• ERP DEVELOPMENT LTD
• EVENT SECURITY SOUTHERN LIMITED
• FREEDOM ENGINEERING CO LIMITED
• FTMI SERVICES LTD
• GARWOOD PROPERTY MANAGEMENT LTD
• GREEN SHOOTS LAND LTD
• HODGES & LAWRENCE LIMITED
• I TO I RESEARCH LIMITED
• IBORNDEN LIMITED
• INDEPTH IMAGING LIMITED
• JBBN LIMITED
• JD POLSTON CONSULTING LIMITED
• KERR & CO LIMITED
• KNEEDOWN SOFTWARE LIMITED
• LEAN MEDIA LTD
• MAGNUM LAND LIMITED
• MENTOR SCOTLAND LIMITED
• MITCHELL HOLT LIMITED
• MOT SERVICES (NEWMARKET) LTD
• MSPG LIMITED
• P & P INVESTMENTS LIMITED
• P & P PLASTERING & DRY LINING CONTRACTORS LIMITED
• P J BRAITHWAITE & CO LIMITED
• PANAGIOTIS VLAVIANOS GASTROENTEROLOGY LTD
• PIONEER HOUSE DEVELOPMENTS LIMITED
• PTR CONSULTING ENGINEERS LTD
• QUINLAN ADVISORY LTD
• R N T FARMING COMPANY LIMITED
• R2 PLANNING LTD
• REALE PROJECT MANAGEMENT LIMITED
• ROBIN MCINTOSH LIMITED
• ROCKLEA CONSULTING LIMITED
• ROOMSMART LTD
• S & R ENGINEERING SOLUTIONS LIMITED
• SCAUDIT LTD
• SDL GAS LIMITED
• SERRANO CAPITAL LIMITED
• SHERLOCK & CO LIMITED
• SIVES GREENWORLD LIMITED
• SMH SURVEYORS LTD
• SPIRAL TECH RESEARCH UK LIMITED
• STEPHEN RUIZ LTD
• STRIUM LIMITED
• TEKBUG IT LIMITED
• THE CONSULTING CHAPTER LIMITED
• THERMAL EQUIPMENT LIMITED
• TOBY STRONG LIMITED
• TOMAX BUILDING SERVICES LIMITED
• WATERSIDE PLASTICS HOLDINGS LIMITED
• WEALTH MANAGEMENT (WALES) LTD
• WESTERN AXE ASSOCIATES LIMITED
• WILLIAM MORTON PROPERTIES LIMITED
• WINSTON WOLF MEDICAL LIMITED

Winding-up petitions (13)

• AJ FOODS LONDON LIMITED
• BOMBAY & CO LTD
• CEDRI LIMITED
• CUCKOO HILL LIMITED
• DDCAS LIMITED
• ENTERPRISE FOODS LTD.
• LINGA INTERNATIONAL LTD
• LITTLE ITALY (HUDDERSFIELD) LTD
• RAVEN TRADING NORTH WEST LIMITED
• RUGBY WELDING AND FABRICATIONS LTD
• WEST BROM FABS LTD
• WILLIAMS & SPENCELEY LIMITED
• WITTON SNOOKER CLUB LIMITED

Winding-up orders (1)

KAST RENEWABLE ENERGIES LTD

What CPA can do for you

With costs rising, growth slowing and insolvencies continuing, businesses are increasingly exposed to late payment risk.

CPA helps you stay ahead by:

• Checking customers before you trade with CreditCare reports
• Monitoring clients for early warning signs of financial stress
• Recovering overdue accounts quickly while preserving relationships

Strong credit control is not just protection — it’s a competitive advantage.

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.