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

If you could ask for one thing from tomorrow’s Budget, it might simply be fewer surprises. With tax administration becoming more expensive, energy bills threatening another squeeze and customers watching their spending, many businesses would welcome time to plan. Today’s news brings some promised relief, but also a reminder that investment headlines and money in the bank are different things. For businesses selling on credit, the practical priority is keeping a close eye on customers’ payment behaviour while preparing for your own costs to change.

James Salmon, Operations Director.

Key Developments

• Budget tomorrow: targeted support is expected, alongside possible higher bank taxes, investment funding and changes affecting employers.
• Compliance costs climb: Ryan estimates that tax policy changes have added £3.3bn to businesses’ administrative costs.
• Prices gather pace: shop inflation reaches 2.1%, while EDF forecasts a substantial January household energy bill increase.
• Hiring comes under pressure: graduate vacancies fall 43%, with minimum wage increases of around 4% reportedly expected.
• Insolvency Watch: 37 unique notices comprise two administrations, 33 liquidations and two winding-up petitions.

Economy & Policy

Tomorrow’s Budget: the nine areas businesses should watch

Chancellor John Healey delivers his first Budget tomorrow, on Wednesday 28 October, with the government promising breathing space while maintaining fiscal discipline. Targeted measures are expected rather than extensive permanent tax cuts. What can we expect?

1. Cost-of-living support. An expansion of the £150 Warm Home Discount and a fuel duty freeze are expected. Duty is currently scheduled to rise in January and March. Selected import tariff removals have already been announced, with further support likely to be temporary to contain its fiscal cost.
2. Higher bank taxes. The Budget could increase the bank surcharge from 3%, payable alongside 25% corporation tax. The surcharge was reduced from 8% in 2023. This is distinct from the separate bank levy; the final mechanism matters when assessing the impact.
3. Less fiscal headroom. Roughly half of the £23.6bn spring buffer has reportedly been eroded by higher inflation and borrowing costs. Bond dealers’ median forecast suggests headroom of around £15.2bn. Limited room for manoeuvre could mean tighter departmental spending alongside targeted assistance.
4. Fiscal devolution. Mayors could receive more tax-and-spend powers and retain more locally generated business tax revenue. For SMEs, the detail will determine whether this improves local infrastructure and services or changes future liabilities.
5. Defence funding. Ministers are expected to address a £4.7bn defence investment gap, largely through reallocations from other departments. A detailed route to defence spending of 3% of GDP by 2030 is expected to await next year’s spending review.
6. Online marketplace VAT. Plans are expected to make platforms such as Amazon and Temu collect VAT at the point of sale to tackle avoidance through shell companies. Legitimate online sellers should watch for changes to platform processes, documentation and settlement arrangements.
7. Infrastructure and business finance. More than £20bn in additional funding is expected for the country’s business lender and infrastructure bank, financed through extra borrowing. The Treasury expects this to support 100,000 jobs by 2035, including in AI, defence and green energy.
8. Help to Buy. Further details are expected on a revived equity loan scheme for first-time buyers. Eligibility, property restrictions and launch dates will shape its relevance to developers, trades and housing-related suppliers.
9. Youth employment. Measures are expected while ministers await Alan Milburn’s final recommendations. Reports suggest the government will retain minimum wage age bands rather than accelerate convergence between younger and older workers.

Why it matters: Budget announcements can change wage bills, customer demand, access to finance and public-sector purchasing; implementation dates will matter as much as the headlines.

Announced “everyday fixes” offer targeted relief

The Treasury has announced a package worth up to £200m, including tariff removals on products such as baked beans, gherkins and chocolate. It also includes more generous treatment of work-related motoring costs, parental support for self-employed fathers and reform of the Carer’s Allowance earnings cliff edge. These are announced policy commitments; businesses and households should distinguish them from measures already operational and check commencement details. gov.uk

Why it matters: Lower costs could help household spending, while motoring and parental support changes may be directly relevant to sole traders and small employers.

Closer EU relations return to the agenda

Prime Minister Andy Burnham has expressed a longer-term wish for Britain to rejoin the EU, while ruling out membership changes during this Parliament. He says existing commitments on the single market and customs union remain in place. Ahead of the 20 November UK–EU summit, the immediate focus is practical cooperation, including support for farmers and food manufacturers.

Why it matters: Exporters and importers should follow concrete changes to border processes and trading arrangements when planning costs and delivery commitments.

Tax & Government

Tax changes add a reported £3.3bn compliance burden

Analysis by Ryan identifies more than 140 tax policy changes over the past year, increasing business administration costs by 21%. The additional £3.3bn comes on top of an existing £15.4bn compliance bill. Corporate tax changes account for £713m, indirect taxes for £582m and employment taxes for £558m; temporary restaurant VAT cuts reportedly generated £26m in compliance expenses.

Why it matters: Time and money spent adapting systems are resources unavailable for chasing invoices, serving customers or investing in growth.

Accountants want lower SME taxes and simpler administration

A FreeAgent survey finds 62% of accountants favour lower taxes for SMEs and freelancers, while 49% want tougher action against multinational avoidance and evasion. Priorities include start-up incentives (37%), IR35 reform (34%) or abolition (33%), self-employed protections (34%) and rebates for timely Making Tax Digital updates (33%). Respondents also favour simpler VAT (44%), improvements to Making Tax Digital (37%), delaying mandatory e-invoicing (36%) and removing National Insurance anomalies (35%).

Bank tax proposals raise questions about lending

RSM chief economist Thomas Pugh considers higher bank taxation the most likely major revenue-raising measure. The supplied commentary contrasts Italy’s levy, which raised little after banks strengthened reserves instead, with Spain’s, which raised billions but prompted disputes and concerns about lending. Lloyds chief executive Charlie Nunn warns that additional taxes could deter investment and growth.

Why it matters: Businesses relying on overdrafts, refinancing or working-capital facilities should monitor lending terms rather than assume bank tax changes will have no effect on customers.

Investors and advisers call for stability

A Capital Access Group survey of fund managers and stockbrokers managing more than £100bn finds that three-quarters would reduce investment in UK-listed companies following further tax rises. Their requests include lower employers’ National Insurance, no capital gains tax increases, abolition of 0.5% share purchase stamp duty, measures directing ISA and pension savings towards British businesses, and restored AIM tax relief. Separately, Raymond James’ Harry Bell warns that poorly coordinated tax increases could discourage pension saving, entrepreneurship and business sales.

Family firms seek inheritance tax reversal

Family Business UK chairman Steve Rigby wants changes to business and agricultural property relief reversed. Its survey reports that nearly a quarter of family businesses, and almost 90% of rural businesses surveyed, have paused or cancelled investment. The organisation warns of consequences for employment, succession and the UK tax base.

Why it matters: Delayed investment by family firms can reduce orders throughout their supplier networks, even before a business changes ownership.

Voters increasingly favour tax cuts

More in Common polling finds 49% want tax cuts prioritised over public-service investment. In 2024, 54% preferred service investment and 30% tax cuts. Council tax reductions (31%), a higher personal allowance (28%) and lower fuel duty (24%) lead preferences; respondents also support selected sector levies and a 1% wealth tax on assets above £10m.

Energy & Costs

Retailers warn that absorbed costs are reaching customers

Annual shop price inflation rose to 2.1% in October, from 1.4% in September, according to the British Retail Consortium. Food inflation increased to 2.9%, from 2.5%, while non-food inflation reached 1.7%. Retailers warn that employment costs, business rates, energy and packaging charges are limiting their ability to protect customers from further increases. brc.org.uk

Why it matters: Rising prices can squeeze sales volumes and customer cashflow simultaneously, making slower payments more likely.

January household energy bills could approach £2,200

EDF forecasts a 27% increase in the annualised typical household bill, from £1,723 to £2,192, from January. This remains a forecast, with wholesale gas pressures linked to the Middle East conflict driving uncertainty. The New Economics Foundation is calling for £6bn of assistance and a national energy guarantee intended to reduce average electricity bills by 25% and gas bills by 40%.

Why it matters: Household pressure can weaken demand for SME goods and services; commercial energy contracts also need separate attention because the domestic cap does not protect business tariffs.

Employment & Labour

Minimum wage increases of around 4% reportedly expected

The National Living Wage and the minimum rate for 18–20-year-olds are reportedly set to rise by around 4%, retaining the age gap. That would pause the government’s intended convergence of rates amid concerns about employment costs. Youth unemployment has exceeded 16%, while almost a million young people are outside education, employment or training.

A 4% rise would exceed the Low Pay Commission’s earlier 3.7% expectation. However, Deutsche Bank and Morgan Stanley estimate that increases of 4.6% and up to 5.5%, respectively, could be needed to maintain the two-thirds-of-median-earnings benchmark.

Why it matters: Employers need to assess the total payroll effect, including pay differentials and associated employment costs, once final rates are announced.

Graduate vacancies fall 43%

Adzuna reports 7,826 graduate vacancies in September, down 43% year-on-year and a record low in its data. The decline spans professional services and technology, with rising costs and AI integration affecting junior recruitment. Employers are reportedly becoming more selective rather than abandoning graduate hiring altogether.

Report puts the cost of unequal opportunity at £113bn

Female Labour MPs’ report, A Political Economy for Women, estimates £113bn in lost annual economic activity from unequal work opportunities, up from £88.7bn in 2023. It calls for women’s economic contribution to be embedded more fully in policymaking. For employers, the findings reinforce the importance of widening access to talent and addressing obstacles to participation.

Retail & Consumer

Housing market gives buyers greater negotiating power

Zoopla reports falling prices in 35% of British postcode areas, compared with 12% a year earlier, with London and the South East particularly affected. Nationally, average prices are still 0.8% higher annually at £273,100. Sales agreed are down 7%, while homes for sale are up 7%.

Why it matters: Slower transactions can delay work and payments for estate agents, conveyancers, removals firms, trades and home-related retailers.

Industry & Investment

Anthropic filing exposes the scale of AI funding needs

Anthropic’s planned Nasdaq IPO follows a 335-page S-1, including 90 pages of risk factors. The supplied figures show a $80.7bn first-half 2026 loss, including a $72bn non-cash debt-to-equity adjustment, after losses of $41.9bn in 2025 and $8.3bn in 2024. Its first-half revenue reached $16.3bn, with $3.9bn positive operating cashflow, illustrating why the headline accounting loss should not be treated as cash spent during the period. The filing also highlights substantial future infrastructure commitments and potential financing needs. Forbes

Meta targets almost $98bn for AI investment

Meta’s fundraising comprises $25bn of common stock, $12.5bn of preferred shares and a programme permitting up to $60bn in further share sales. The proceeds are intended for AI infrastructure and personal superintelligence, including its Muse agent. The supplied market reports also describe Nvidia’s planned $3bn participation, highlighting increasingly close financial links between AI customers and suppliers.

Microsoft offers redundancy as AI spending expands

Microsoft has offered voluntary redundancy to 60,000 employees, rather than confirming that all those roles will go. Its expected $175bn annual spending is heavily weighted towards AI. The supplied report also records more than 2,600 departures following a July retirement programme and 3,200 announced Xbox cuts.

Company updates show uneven trading conditions

HSBC’s quarterly earnings and revenue missed expectations despite pretax profit rising 32% to $9.6bn. Reckitt cut its sales growth outlook following a Lysol manufacturing issue, while Cadence raised guidance and Porsche reported a 6.9% nine-month operating margin. Boeing’s forthcoming results will provide another test of whether deliveries are translating into cash.

And finally: something for England supporters to celebrate

Harry Kane has won the men’s Ballon d’Or, following an outstanding season with Bayern Munich. Alexia Putellas secured her third women’s award. Among all the Budget speculation, there is room for a little good news from the football pitch.

Global Market Summary

UK and Europe: Monday’s gains gave way to weakness this morning as HSBC’s earnings miss and Reckitt’s outlook cut weighed on London. Germany’s earlier improvement in business confidence offered some encouragement, with the Ifo index reaching 90.2.

United States: AI-related shares led Monday’s recovery following Anthropic’s filing. Semiconductor and optical connectivity businesses benefited, but investors face a busy calendar of company results, consumer data and the Federal Reserve decision.

Asia and wider markets: AI enthusiasm supported Japan and South Korea, where the KOSPI rose 3.09%. Mainland China weakened, with the Shanghai Composite down 1.33%, while HSBC weighed on Hong Kong. Brazil’s IBOVESPA fell 13.88% following the election result, affecting some European companies with substantial Brazilian exposure.

Currencies: Sterling stood at $1.3322, down 0.15% against the dollar, and approximately €1.1941, broadly unchanged against the euro. A firmer dollar and central bank uncertainty affected currency trading, while tomorrow’s UK Budget adds a domestic event risk.

Commodities: Brent traded at $116.58 a barrel, up 0.66%, and WTI at $102.46, up 0.69%. Diplomatic efforts involving Iran had eased some pressure, although renewed regional disruption kept prices elevated. Spot gold was $3,995.25 an ounce, down 0.53%, as stronger interest in risk assets reduced safe-haven demand.

For business owners: Fuel, freight and imported stock costs remain exposed to oil and currency movements. European gas storage and supply disruptions add uncertainty ahead of colder weather.

Insolvency Watch

Administrations (2)

• BULLSEYE FINANCIAL LTD
• RAHMAN RAVELLI SOLICITORS LTD

Liquidations (33)

• AGILE ROCKS LIMITED
• AMAZING GRAZING FOODS LTD
• BRAID RETAIL LTD
• BRIDGEWAY IT PROJECT SERVICES LTD
• BURNING GIRL PRODUCTIONS LIMITED
• C G C TECHNOLOGY LIMITED
• CHANZO LIMITED
• CONSULT DLF LTD
• CROWN ALUMINIUM HOLDINGS LTD
• DAVIES CONSULTANCY SERVICES LIMITED
• FARORE LAW LIMITED
• FULLBROOK ASSOCIATES LTD
• GVH HOSPITALITY LTD
• HAMBLETON PROPERTIES LIMITED
• IOW DESIGN AND BUILD LIMITED
• J. JANEIRO (UK) LIMITED
• JCC CONSULTING SERVICES LIMITED
• JCE ENGINEERING LIMITED
• JUNGLELAND LIMITED
• KITCHEN VENTILATION SYSTEMS LIMITED
• LEAPING FROGS LTD
• MARINE SUPPORT (TAYSIDE) LIMITED
• MIZEN HOLDCO LIMITED
• MKTOX & CO LTD
• MONARCH MAINTENANCE PRODUCTS LIMITED
• PAUL CARTER UROLOGY LIMITED
• PUMPKIN FINANCE LIMITED
• SCENARIO MARKETING LTD
• SINGLE SOURCE STORAGE SERVICES LIMITED
• SJ HEALTHCARE CONSULTANCY LTD.
• SOUTHERN GROVE LIMITED
• TIMBER TEC HOLDINGS LIMITED
• UNITEDUS HOLDINGS LIMITED

Winding-up Petitions (2)

• BRAND HOUSE GROUP LIMITED
• SLLP 252 LIMITED

Keeping cash moving while businesses wait for certainty

Tomorrow’s Budget may change the outlook, but today’s invoices still need attention. Reviewing overdue balances, checking customers before increasing credit limits and responding promptly to changes in payment behaviour can help prevent cost pressures becoming cashflow problems.

CPA’s CreditCare credit reports, debtor monitoring and credit control support help businesses make informed decisions. Where invoices remain unpaid, the CPA Overdue Account Recovery Service supports recovery while preserving customer relationships.

Call CPA on 020 8846 0000 during business hours, Monday to Friday, 9am to 5pm.
Email PaidQuick@cpa.co.uk.
Visit 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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