UK Business News Today – 28 April 2026 | Economy, Markets & Insolvencies
UK businesses are facing a tightening financial environment as rising costs, tax pressures and weakening demand begin to show through in corporate results and insolvency data. While global energy markets are driving profits for oil majors, they are simultaneously pushing up costs across construction, hospitality and manufacturing. At the same time, credit conditions are tightening and insolvencies continue to rise, increasing the risk of delayed payments across supply chains.
James Salmon, Operations Director.
Key Developments
• Energy-driven inflation continues to push up costs across multiple sectors
• Tax and employment costs are rising sharply for UK businesses
• Construction and hospitality sectors show clear signs of strain
• Credit conditions tightening as impairment charges increase
• Insolvency activity remains elevated across sectors
SME & Business Environment
Hospitality closures accelerate across the UK
Britain is losing 3.4 pubs and restaurants per day, with more than 350 closures in the first quarter alone. Rising energy costs, higher taxes and weaker consumer demand are placing sustained pressure on the sector, with further closures expected throughout 2026.
Why it matters: Hospitality failures often ripple through supply chains, increasing late payment risk for suppliers and service providers.
Claire’s shuts UK store network
Claire’s has closed 154 standalone stores across the UK and Ireland, with more than 1,300 jobs lost. The retailer struggled against online competition and weak high street footfall, with poor Christmas trading accelerating its collapse.
Why it matters: Retail failures reduce demand for suppliers and increase the likelihood of unpaid invoices across retail supply chains.
Zymurgorium enters administration
The UK distillery ceased trading after financial difficulties, with administrators appointed and assets sold. The closure reflects ongoing pressure on independent drinks producers facing rising costs and changing consumer demand.
Why it matters: Smaller producers are often key customers for local suppliers, increasing credit risk when they fail.
Economy & Policy
Employers’ NICs surge by 24%
Employer National Insurance bills rose by £28bn last year following tax changes. Businesses are warning that the rising tax burden is becoming unsustainable and is adding to already elevated operating costs.
Why it matters: Higher payroll costs reduce cash reserves and can lead to slower supplier payments.
Bank of England set to hold rates
The Bank is expected to keep rates at 3.75% despite rising inflation linked to energy prices. However, economists warn that further increases may follow later this year.
Why it matters: Higher or sustained interest rates increase borrowing costs and tighten cashflow for SMEs.
IFS warns wealth tax could backfire
The Institute for Fiscal Studies said a wealth tax could discourage investment and reduce long-term economic growth. It suggested reforming existing taxes instead.
Why it matters: Reduced investment weakens economic activity, impacting customer demand and payment reliability.
Fiscal rules under scrutiny
A Lords committee has warned that the government must strengthen fiscal discipline to maintain investor confidence. Concerns centre on the use of fiscal buffers and long-term debt credibility.
Why it matters: Weak fiscal confidence can lead to higher borrowing costs across the economy, affecting business financing.
Government urged to boost economic resilience
The British Chambers of Commerce has called for stronger contingency planning to protect the UK from global shocks. Recent crises have exposed vulnerabilities in trade and supply chains.
Why it matters: Ongoing disruption increases uncertainty and can delay payments as businesses manage risk.
Chancellor preparing new growth strategy
Rachel Reeves is expected to outline new fiscal and planning reforms after the May elections, alongside closer EU ties.
Why it matters: Policy changes can affect business costs, regulation and overall trading conditions.
Industry & Investment
BP profits surge on energy volatility
BP reported profits of $3.2bn, beating expectations as oil and gas prices rose sharply due to the Middle East conflict. Strong trading and midstream performance drove the results.
Why it matters: While energy firms benefit, higher energy costs increase financial pressure on most SMEs and their customers.
Barclays profits rise but impairments increase
Barclays reported stronger income and profits, but credit impairment charges rose significantly. This suggests growing concern about borrower defaults.
Why it matters: Rising impairments are an early warning sign of deteriorating payment behaviour across the economy.
Travis Perkins sales fall as construction weakens
Revenue declined as construction activity remained subdued, with falling volumes only partially offset by price increases.
Why it matters: Weak construction demand reduces work for suppliers and increases payment delays in the sector.
Steel prices surge after tariffs
UK steel prices have risen 25% following new import tariffs, leading to shortages and higher costs for manufacturers.
Why it matters: Rising material costs squeeze margins and can lead to delayed payments or disputes.
Heathrow expansion faces uncertainty
Plans for a third runway are under threat amid political uncertainty and leadership concerns.
Why it matters: Delays to major infrastructure projects can impact contractors and suppliers expecting future work.
Entrepreneur visa route tightens
Foreign entrepreneurs face increasing barriers to entering the UK, with rising refusal rates and stricter rules.
Why it matters: Reduced business formation limits new customer opportunities and economic growth.
Microsoft ends OpenAI exclusivity
Microsoft will no longer have exclusive rights to OpenAI products, opening access to competitors.
Why it matters: Increased competition in AI could reshape business tools and costs, affecting productivity and margins.
Employment & Labour
UK health trends raise workforce concerns
Healthy life expectancy is declining, with widening inequalities across regions. This raises concerns about long-term workforce productivity and availability.
Why it matters: A less healthy workforce can increase absenteeism and reduce business efficiency, impacting cashflow.
Global Market Summary
Global markets remain heavily influenced by the ongoing Iran conflict and its impact on energy prices and inflation.
In the UK and Europe, the FTSE 100 fell 0.6% to 10,329.96, while the STOXX Europe 600 dropped to 608.03. Germany’s DAX stands at 24,047.71 and France’s CAC 40 at 8,134.48, both under pressure from technology weakness and inflation concerns.
US markets also weakened, with the S&P 500 at 7,173.91, the Dow Jones at 49,167.79 and the Nasdaq at 24,887.10. Technology stocks led declines amid concerns about returns on AI investment, despite broadly resilient corporate earnings.
In Asia, Japan’s Nikkei 225 fell 1.0% to 59,917.46, while Hong Kong’s Hang Seng dropped 0.9% to 25,679.78. China’s Shanghai Composite slipped to 4,078.64, while South Korea’s Kospi rose to a record 6,641.02.
Currency markets show the pound under pressure. GBP/USD is at 1.3512, down slightly, while GBP/EUR reflects a softer pound with EUR/GBP at 0.8663.
Oil prices continue to surge, with Brent crude at $110.94 and WTI at $98.87, driven by ongoing disruption in the Strait of Hormuz. Gold has fallen to $4,636 as inflation expectations rise, while copper has eased slightly.
Overall, markets are balancing strong corporate earnings against rising geopolitical risks, tighter credit conditions and persistent inflation pressures.
Insolvency Watch
Administrations (3)
• PRESS LONDON LTD
• SCENE ARCHITECTS LIMITED
• SIGNS BY MORRELL LIMITED
Liquidations (10)
• BRAMBERRY TECHNOLOGY SOLUTIONS LIMITED
• CANADA SQUARE FUNDING 2020-1 PLC
• CANADA SQUARE FUNDING 2020-2 PLC
• CANADA SQUARE FUNDING 7 PLC
• HEALTH AND SAFETY TECHNOLOGY AND MANAGEMENT LIMITED
• MONTAGU LIMITED
• MXK SOLUTIONS LTD
• OPUS WEALTH MANAGEMENT LTD
• TOWER BRIDGE FUNDING 2022-1 PLC
• TY HOSPITALITY LIMITED
Winding-up petitions (13)
• A A LAW (LANCASHIRE) LTD
• ARATELLUS GROUP LIMITED
• ARATELLUS OFFSHORE LIMITED
• AVIRO LIMITED
• E. A. HARRIS & CO LIMITED
• GPLANET CONSTRUCTION LTD
• GOLDWIN LIMITED
• LANGTON LAW LTD
• MSP LEGAL SERVICES LLP
• PRIMEAUTOZ LTD
• RENT A VAN BRISTOL LTD
• ROEFAX LIMITED
• WILLOW WASTE LTD
Winding-up orders (0)
What CPA can do for you
With costs rising, credit conditions tightening and insolvencies increasing, businesses are facing a higher risk of late payment and bad debt.
CPA helps you stay in control by providing:
• CreditCare reports to assess customer risk before you trade
• Ongoing monitoring to spot early warning signs
• Professional recovery services to collect overdue invoices quickly and ethically
Strong credit management is no longer optional in this environment. It is essential for protecting cashflow and maintaining stability.
Call 020 8846 0000 to find out how CPA can support your business.
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.
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