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

UK businesses are facing a mixed economic picture today. Global markets are rallying on AI optimism and falling oil prices, but the domestic backdrop remains difficult for many SMEs, with retail sales weakening, energy bills set to rise again, employment rules under debate and concerns growing over tax, consumer protection and business confidence. For companies selling goods or services on credit, the message is clear: cost pressure, consumer weakness and insolvency risk remain central to cashflow planning.

James Salmon, Operations Director.

Key Developments

• Ofgem’s energy price cap will rise by 13% from 1 July, increasing pressure on households and business costs.
• Retail sales weakened again in May, with retailers expecting the fastest spending cuts in more than a year.
• Sir Tony Blair warned that Labour policies are creating “headwinds” for growth.
• UK firms are still planning to increase AI and cybersecurity investment despite geopolitical uncertainty.
• Global markets hit fresh records as AI and memory-chip stocks surged.

SME & Business Environment

Energy bills to rise again from July

Ofgem’s price cap will rise by 13% from 1 July, driven by the continuing conflict in the Middle East and pressure on wholesale energy costs. The annual cap will increase from £1,641 to £1,862, adding around £18 a month for the average dual-fuel household. Gas bills are expected to rise by 24%, while electricity bills will increase by 5%.

Why it matters: Higher household energy bills can reduce consumer spending, while higher business energy costs add pressure to SME margins and payment behaviour.

Retail sales slump as consumer spending falters

High street sales fell below expectations in May, according to the Confederation of British Industry. The CBI’s sales volumes balance declined from -32% to -35%, showing that retail conditions remain weak. Retailers now expect the fastest spending cuts in more than a year, while employment growth is also slowing.

Why it matters: Weaker retail demand can squeeze cashflow across supply chains, increasing the risk of late payments from customer-facing businesses.

Radley rescued but jobs are lost

Handbag-maker Radley has been acquired by Gordon Brothers through a pre-pack administration. The deal preserves Radley’s intellectual property but excludes its retail operations, resulting in 42 job losses. Radley reported a £5.5m pre-tax loss for the year ending April 2025.

Retail investors lose faith in UK-listed firms

Retail investors are losing confidence in UK-listed companies, according to a survey by InvestorHub and ShareSoc. Around 53% of investors said they were concerned about a lack of transparency in company communications, while 48% flagged insufficient financial information and 45% pointed to a lack of forward-looking statements. Almost four in ten said listed companies do not provide updates frequently enough.

Economy & Policy

Blair warns Labour policies are creating “headwinds” for growth

Sir Tony Blair has criticised Sir Keir Starmer’s government, arguing that Labour lacks a coherent plan for economic growth. He said policies such as expanded workers’ rights, higher employer National Insurance contributions and the accelerated move away from oil and gas have created “headwinds not tailwinds” for growth. Blair also warned Labour against “playing with fire” by trying to oust Starmer without first agreeing a clear policy direction.

London accounts for 36% of corporation tax receipts

Office for National Statistics data shows London accounted for £33.4bn of corporation tax receipts in 2024/25. That represents 36% of the UK total of £93.1bn, up from 33% five years ago. London also generated around a quarter of income tax receipts and recorded a fiscal surplus, with expenditure lower than tax receipts.

Streeting’s tax plans spark debate

Wes Streeting’s backing for plans to align capital gains tax rates with income tax, while introducing an investment allowance, has divided City advisers. Supporters argue that reform could boost entrepreneurship and raise money for tax cuts elsewhere, with the Labour Growth Group estimating a potential £14bn gain. HMRC estimates suggest revenue could fall by £5.7bn, while some advisers warn that speculation alone could trigger disruptive asset sales.

Financial services overhaul raises consumer protection concerns

Samuel Norman in City AM has warned that the Treasury’s proposed financial services reforms could weaken consumer protections. The Enhancing Financial Services Bill aims to modernise the Consumer Credit Act and the Financial Ombudsman Service. However, an impact assessment suggests the reforms could create barriers to redress, particularly for people with disabilities or lower financial literacy.

Sunak warns of financial literacy gap

Research from the Richmond Project, a charity set up by Rishi Sunak, suggests two-fifths of UK adults struggle with financial literacy. The study of more than 10,000 adults found that only 28% understood key concepts such as compound interest and inflation. Sunak warned that poor financial literacy affects money management, debt handling and retirement saving, with women particularly disadvantaged.

Employment & Labour

Campaigners push for zero-hours ban

Campaigners including the TUC are urging the Government to ban zero-hours contracts as part of wider employment rights reforms. Business leaders remain concerned about the impact on hiring and flexibility, with an Institute of Directors report showing that 86% of business leaders expect the Employment Rights Act to have a negative impact on UK economic growth. Lord Wolfson, chief executive of Next, has warned that a ban on zero-hours contracts will make hiring more difficult and has called for reversals to increases in employer National Insurance and the minimum wage.

Technology, Cybersecurity & Investment

UK firms to boost AI investment

More than half of UK businesses plan to increase investment in AI over the next year, according to a Barclays survey of 900,000 firms. The report found that 68% of companies plan to invest in cybersecurity, while 54% expect overall investment to grow. Six in ten firms are already using AI agents to improve productivity and allow staff to focus on higher-value tasks, although one fifth may pause investment because of the conflict in the Middle East.

GCHQ chief warns over cyber race

Anne Keast-Butler, the UK’s top cyber spy, is expected to warn that the UK and other western nations are running out of time to maintain their technological edge over China. She will argue that intelligence agencies and technology firms must work together at the “speed of the frontier” and make cybersecurity “ten times more urgent”. She is also expected to accuse Russia of scaling up daily hybrid activity against the UK and Europe.

Quantinuum plans US IPO

Quantum computing company Quantinuum is seeking to raise $1.05bn in a US IPO. The listing would value the company at around $12.7bn. Quantinuum was formed in 2021 through the merger of Honeywell Quantum Solutions and UK-based Cambridge Quantum, highlighting the growing commercial interest in advanced computing.

Memory-chip giants pass $1tn valuations

SK Hynix and Micron Technology have both exceeded $1tn in market value for the first time as investors bet that AI demand will reshape the memory-chip industry. Both companies are major producers of high-bandwidth memory, a key bottleneck for data-centre expansion. SK Hynix rose 9.3% in South Korea, while Micron jumped 19% on Tuesday, with investors expecting memory shortages to continue into 2027.

Industry & Corporate Developments

BP dispute deepens after chairman dismissal

BP has fired chairman Albert Manifold only months into the role, citing serious concerns about governance standards, oversight and conduct. Manifold says he was removed without warning or explanation and disputes BP’s version of events. The dispute adds to instability at the oil major, which has had three chief executives in three years, and comes as new chief executive Meg O’Neill seeks to rebuild performance and refocus on core oil and gas.

European car sales rise as EV demand grows

European new-vehicle registrations rose 7% in April to 1.15m, marking the third consecutive monthly increase. Electric vehicle deliveries jumped 38%, with growth in major markets including Germany and the UK. Hybrid sales also rose, while petrol and diesel sales fell, pointing to a continuing shift towards battery-powered vehicles.

Ferrari shares fall after electric car reveal

Ferrari shares fell by more than 8% after the company unveiled its first fully electric car, the Ferrari Luce. The $640,000 model has a top speed of 190mph but its design has been criticised for moving away from traditional Ferrari styling. The market reaction shows how sensitive investors can be when established brands move into new technology.

Global Market Summary

Global markets extended their rally, driven by strong demand for AI and chipmaker stocks. European markets closed higher on Tuesday, with the STOXX 600 gaining ground and the DAX supported by autos and semiconductor shares. The CAC 40 also advanced, helped by luxury goods and autos, while the FTSE 100 was relatively flat.

In the US, the S&P 500 and Nasdaq reached fresh record highs as the chipmaker rally accelerated. Micron Technology’s surge to a market value above $1tn helped push technology shares higher, while wider enthusiasm around AI continued to support investor sentiment. Asian trading was more mixed. South Korea’s Kospi jumped more than 2% as chipmakers rallied, but Japan’s Nikkei 225 gave back earlier gains to close almost unchanged, while Hong Kong and mainland China declined.

Current major index levels this morning were:

• FTSE 100: 10,475.93
• STOXX Europe 600: 629.86
• DAX: 25,337.42
• CAC 40: 8,216.28
• S&P 500: 7,519.12
• Dow Jones: 50,461.68
• Nasdaq: 26,656.18
• Nikkei 225: 64,999.41
• Hang Seng: 25,315.31

The main driver remains the AI trade. Investors continue to favour semiconductor, memory-chip and data-centre related companies, with SK Hynix and Micron Technology both moving above $1tn in market Rising costs. Weaker spending. Tighter cashflow.value for the first time. In Europe, ASML and Infineon were among the major contributors to the rally.

Geopolitics also shaped markets. Oil prices fell sharply as investors reacted to optimism over progress towards a possible US-Iran peace deal, despite fresh hostilities near the Strait of Hormuz. Brent crude was down 2.2% at $97.37 a barrel, while WTI crude fell 3.0% to $91.10. Lower oil prices helped support risk appetite, although the underlying geopolitical risk remains important for inflation and energy costs.

Currency markets showed a stronger dollar, while sterling traded at GBP/USD 1.3443. EUR/GBP was 0.8662, implying GBP/EUR of around 1.1545. The euro moved higher against sterling on hawkish European Central Bank signals, while the yen remained under pressure, with its real effective rate described as hitting a record low.

Gold fell 0.4% to $4,482.20 an ounce as safe-haven demand eased and investors weighed the outlook for interest rates. Copper was slightly lower at $13,623.50, although broader base metals remained supported by demand linked to energy transition and technology themes.

For SMEs, the market picture is mixed. Stronger equity markets can improve investor sentiment, but energy volatility, currency moves and rate expectations still feed directly into costs, prices and confidence.

Insolvency Watch

Administrations (9)

• CK CAPITAL MANAGEMENT LTD
• CONAT ENTERPRISES LTD
• E-CARS GROUP LIMITED
• E-CARS HOLDINGS LTD
• E-CARS UK AUTO SALES LTD
• FEATHERFOOT HALTON 5 LIMITED
• GLOBAL MOTORS LIMITED
• PEDAL REVOLUTION LIMITED
• SILICON MARKETING LIMITED

Liquidations (9)

• CERROS PROPERTIES LIMITED
• EDGOOSE HOLDINGS LIMITED
• IWI LIMITED
• MACH II SHIPPING LIMITED
• MCCARTHY (CONTRACTORS) SW LIMITED
• NORTHWIN LIMITED
• POINTVIEW 85 LIMITED
• PRUDHOE ESTATES LLP
• WARME ENERGY SERVICES LTD

Winding-up petitions (15)

• 3 GOLDEN PIG LIMITED
• A.R.J. BUTCHERS (SHAWS) LIMITED
• BELMAC SERVICES LIMITED
• FATIMAH & MINAHIL LTD
• INDIFRESH LTD
• INSIDE LIMITED
• J&H LOGS LTD
• MGS AUTOMOTIVE LTD
• OS GLASGOW LIMITED
• RHINO SITE SERVICES LTD
• SANS PATRIE LTD
• SAUCE SHED LIMITED
• SFM123 LTD
• STEADFAST GROUP (NATIONAL) LTD
• WOKING KEBAB LTD

CPA Call-to-Action

Protect your cashflow before pressure turns into late payment

Today’s news shows how quickly pressure can build. Higher energy costs, weaker retail sales, changing employment rules and continued insolvency notices all point to a trading environment where cashflow discipline matters.

CPA helps businesses protect revenue through CreditCare reports, debtor monitoring and professional overdue account recovery. Acting early gives you a better chance of securing payment while preserving the customer relationship.

For support with overdue invoices or credit risk, call CPA on 020 8846 0000 (Monday to Friday, 9am to 5pm) 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.

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