UK Business News Today: 28 August 2026 | Economy, Markets & Insolvencies

UK businesses end the week facing a combination of labour-market weakness, technological disruption and persistent cost pressure. Almost one million young people remain outside employment or education, new analysis suggests Britain may be particularly exposed to AI-driven job disruption, and major employers are increasingly questioning whether remote working gives younger staff enough opportunity to develop interpersonal skills. At the same time, retailers continue to push back against business rates and employment costs, while a major airport cyberattack highlights the growing importance of operational resilience. For businesses selling on credit, these pressures matter because they can influence customers’ ability to pay, future staffing costs, trading confidence and the likelihood that financial stress travels through supply chains.

James Salmon, Operations Director.

Key Developments

• 981,000 young people aged 16–24 are not in education, employment or training, with entry-level vacancies increasingly difficult to find.
• Deutsche Bank analysis identifies the UK as the major economy most exposed to AI-related disruption, reflecting its large services workforce.
• Frasers Group owner Mike Ashley has attacked the government’s high-street strategy, arguing that business rates and employment costs are already damaging retailers.
• A cyberattack affecting Manchester, London Stansted and East Midlands airports exposed personal information relating to 8.7 million customers.
• Chancellor John Healey has reiterated that fiscal discipline and adherence to the government’s fiscal rules remain his top priorities.

Economy & Policy

Chancellor puts fiscal discipline first

Chancellor John Healey has described fiscal discipline as the foundation of economic stability and reiterated the government’s commitment to its fiscal rules. Speaking during a visit to west Wales, Healey said maintaining control of the public finances was the first duty of any chancellor.

The message is particularly important ahead of future spending and tax decisions, with the government facing competing demands for investment, welfare reform and measures to ease business costs.

Welfare reform pushed into next year

Prime Minister Andy Burnham is reportedly planning to wait for two separate reviews before deciding on significant welfare reforms. Rather than forcing substantial changes through the forthcoming Budget, detailed proposals may now be held back until at least January.

That could reduce the immediate political pressure surrounding welfare policy but leaves questions about labour-market inactivity and the future cost of the benefits system unresolved.

Employment & Labour

Nearly one million young people remain outside work and education

ONS figures show that 981,000 people aged 16 to 24 were not in education, employment or training during the second quarter. The figure fell by around 30,000 from the previous quarter but remains above its level a year ago and close to numbers last recorded more than a decade ago.

The NEET rate stands at around 13%, while roughly 393,000 young people classified as NEET are looking for work. Research cited alongside the figures suggests entry-level opportunities have fallen sharply, with starter jobs down 49% over the past decade and approximately one suitable vacancy available for every three young people.

The government has made youth employment a priority, including expanded technical education, subsidised employment and Sainsbury’s plan to offer 10,000 work-experience placements in areas with high levels of youth inactivity.

UK seen as particularly vulnerable to AI disruption

Analysis by Deutsche Bank covering 30 countries has identified Britain as the major economy potentially most exposed to disruption from artificial intelligence. The UK’s large service sector means a comparatively high proportion of employees work in roles where AI could automate or substantially change existing tasks.

The conclusion follows similar concerns previously raised by the OECD and Bank of England Governor Andrew Bailey about the possible employment consequences of increasingly capable AI systems.

AI will also create opportunities, but the pace of change could leave some companies needing to rethink recruitment, training and the skills they expect from employees.

Consultants warn remote working could weaken vital skills

Senior executives at EY and KPMG have argued that junior consultants need greater exposure to colleagues in person as AI increasingly handles technical elements of professional work.

EY is encouraging younger employees to spend more time in the office, although it has not formally changed its remote-working policy. Its UK consulting leadership argues that interpersonal and communication skills will become increasingly important as artificial intelligence takes over more routine technical tasks.

KPMG has expressed a similar view, arguing that learning softer skills directly from experienced colleagues is becoming more important rather than less.

SME & Business Environment

Mike Ashley attacks government’s high-street plans

Frasers Group founder Mike Ashley has sharply criticised Andy Burnham’s plans to support the high street, arguing that rising business rates and employment costs are already forcing retailers to cut jobs.

Burnham has proposed a 20% reduction in business rates for pubs, clubs and live music venues, financed partly through higher taxation on large retail warehouses. Ashley described the approach as ineffective and warned that high streets could suffer further without broader reductions in the cost of operating physical stores.

He also highlighted shoplifting losses of approximately £40m annually across Frasers Group and called for stronger action against alleged price-fixing practices in the sportswear industry. Recent reporting confirms the dispute has intensified criticism of the government’s high-street approach.

New protections planned against rogue builders

The government is introducing a scheme intended to help consumers identify reputable traders and reduce losses associated with home renovation work.

Participating businesses will be expected to demonstrate standards covering customer service, transparency and dispute resolution. A new payment arrangement will also allow customer money to be held securely and released in stages when agreed project milestones are completed.

Government figures suggest more than a quarter of people undertaking home improvements in the past 18 months experienced problems, while consumer losses connected with home and garden maintenance services were estimated at more than £10bn in 2024.

Industry representatives have questioned whether a voluntary system will deter rogue operators and warned against adding unnecessary administration for legitimate firms. The government is also planning stronger regulation of private bailiffs, including professional standards and an independent complaints process.

Technology & Business Resilience

Airport cyberattack exposes data of 8.7 million customers

A cyberattack affecting Manchester Airport, London Stansted and East Midlands Airport resulted in hackers accessing information relating to approximately 8.7 million customers.

Manchester Airports Group said the compromised information included email addresses, phone numbers, vehicle registration details and postcodes. Bank and payment information was not accessed, and airport operations were not disrupted.

The incident follows a series of high-profile cyberattacks affecting major British organisations and highlights the continuing operational risks facing companies that hold large volumes of customer information.

Retail & Consumer

Unilever preparing sale of Colman’s mustard

Unilever is reportedly looking to sell the historic Colman’s mustard brand as part of preparations for the combination of Unilever Foods and McCormick & Co.

The proposed merger would create a food business valued at approximately $66bn. Colman’s is expected to be sold because McCormick already owns the competing French’s mustard brand, creating potential competition concerns.

Rothschild has reportedly been appointed to advise on the transaction.

Immigration & Workforce

Citizenship and settlement applications rise ahead of reforms

The UK has recorded an increase in applications for citizenship and permanent settlement ahead of proposed changes to immigration rules.

The number of people granted settlement rose 24%, while citizenship applications increased 17%. A total of 245,520 people were granted British citizenship in the year to June 2026.

Proposed reforms would increase the normal qualifying period for indefinite leave to remain from five years to 10, although the proposals remain politically contentious.

National Resilience

Emergency preparedness campaign delayed

The government has reportedly postponed the launch of a nationwide public resilience campaign that would encourage households to maintain emergency supplies such as bottled water, long-life food, medication, torches and first-aid equipment.

The initiative is intended to improve preparedness for possible cyberattacks, extreme weather and disruption to essential infrastructure. Ministers are also reviewing national emergency planning amid heightened concern about hybrid threats against European countries.

The campaign is still expected later in 2026.

Why it matters: Businesses should consider similar resilience planning around power, communications, cyber systems and supplier disruption.

Global Market Summary

Global markets entered Friday cautiously ahead of Federal Reserve Chair Kevin Warsh’s first major Jackson Hole speech, while investors continued to digest a powerful technology rally, higher European inflation and developments around the Strait of Hormuz. European equities are recovering from Thursday’s losses, while US futures are broadly stable.

Major equity markets

• FTSE 100: 10,808.19, +0.15% in Friday morning trading after falling 0.8% on Thursday.
• STOXX Europe 600: 654.44, +0.40%.
• EURO STOXX 50: 6,465.65, +0.64%.
• DAX: 26,501.88, +0.51%.
• CAC 40: 8,395.56, +0.91%.
• S&P 500: closed Thursday at 7,730.99, +0.72%.
• Dow Jones: closed at 53,569.44, +0.20%.
• Nasdaq Composite: closed at 26,541.35, +1.57%.
• Nikkei 225: 66,405.56, +0.41%.
• Hang Seng: 25,583.51, +0.07%.

Technology drove the US market higher after Nvidia rallied strongly following guidance pointing to approximately 70% FY28 revenue growth. Salesforce, CrowdStrike and Okta also recorded major gains, although the rally was narrow, with most S&P 500 constituents actually falling.

European markets recovered on Friday morning after a weaker Thursday session. Better-than-expected French consumer spending and an improvement in German unemployment supported sentiment, although French GDP was revised to show no growth in the second quarter.

Market drivers

Attention is centred on the Federal Reserve and the future direction of US interest rates. Kevin Warsh’s Jackson Hole speech could influence expectations for borrowing costs, the dollar and global bond yields.

European inflation is also generating concern. Spanish harmonised inflation rose to 4.5%, while French inflation reached 2.7%, strengthening expectations that the European Central Bank could raise rates again.

In Japan, inflation data and comments from Bank of Japan officials have increased expectations of another interest-rate rise, with markets assigning a high probability to a September move.

Geopolitics remains another major factor. US forces have reported clearing Iranian sea mines from the Strait of Hormuz, easing some concerns over oil movements, although Middle East tensions remain elevated and Qatar has extended force majeure affecting LNG deliveries.

Currencies

Sterling was relatively stable:

• GBP/USD: 1.3586, around 0.05% lower on the day.
• GBP/EUR: approximately 1.1665, broadly unchanged.

Currency markets were subdued ahead of the Federal Reserve speech, with investors reluctant to take major positions until there is greater clarity on US rates.

For UK SMEs, currency stability matters particularly to importers and exporters. A stronger dollar can raise the sterling cost of internationally priced commodities, energy and components.

Commodities

• Brent crude: $89.15 per barrel, -0.61%.
• WTI crude: $82.91 per barrel, -0.74%.
• Gold: $4,612.29 per ounce, +0.29%.
• Silver: $70.72 per ounce, +2.13%.
• LME copper: approximately $14,283 per tonne.

Oil eased following news of progress clearing shipping routes through the Strait of Hormuz, although Gulf exports remain below pre-conflict levels.

European gas prices remain a significant concern, with benchmark prices approaching €70/MWh as Qatar extends LNG supply restrictions. Persistent energy pressure could feed directly into UK manufacturing, transport and operating costs.

Gold remains elevated amid geopolitical risk, inflation concerns and strong investment inflows.

For UK businesses: markets continue to signal uncertainty rather than crisis. However, higher energy prices, elevated interest rates and geopolitical risks leave little room for complacency. Businesses selling on credit should continue monitoring customers in energy-intensive, highly leveraged or consumer-sensitive sectors particularly closely.

Insolvency Watch

Administrations (6)

• CONNECTED CARE SERVICES LTD
• EX-PRO PRODUCTS LIMITED
• JOANNA’S BOUTIQUE TEAROOM (CRANLEIGH) LIMITED
• JOANNA’S BOUTIQUE TEAROOM LTD
• NXG GLOBAL GROUP LIMITED
• SALO PROPERTY SERVICES LIMITED

Liquidations (14)

• BROOKSON (5163E) LIMITED
• COOPER BUILDERS (CHARNWOOD) LIMITED
• D J LAWTON CONSULTING LTD
• D. CANNON WINDOWS LIMITED
• DAVID WHISKERD BUILDERS LIMITED
• FOUNTAIN HEALTHCARE SOLUTIONS LIMITED
• HADIOM ADVISORY LIMITED
• I’VE GOT A STORY FOR YOU LTD
• MARCHSEC LTD
• NULUX HAMILTON LTD
• PROVIDENT UNION LIMITED
• RESHAW PROPERTIES LIMITED
• VERUS RETAIL LIMITED
• XELARO LIMITED

Winding-up Petitions (20)

• ARRAN TRANSPORT LIMITED
• ATHAS WHOLESALERS LIMITED
• BANGOR RETAIL LTD
• BASIC FORMATIONS LIMITED
• COMMERCIAL FS LIMITED
• FORMOSA DEVELOPMENTS LIMITED
• GROVE CONCRETE LTD
• KARIBELLA TRADING LTD
• MERCHANT PROPERTIES SCOTLAND LIMITED
• MOBITOPSHOP LTD
• MOLLIE’S DINER LIMITED
• PROVIDENT HEALTHCARE NI LIMITED
• QUARRY UPVC LTD
• R POTTS HAULAGE LIMITED
• RES INSTALLATION SERVICES LIMITED
• STEPHEN KEARNS LIMITED
• THE WESTON KILMAURS LIMITED
• THOMAS STREET RETAIL LIMITED
• WEE BUNNIES DAY CARE LTD
• ZANE BUILDING SUPPLIES LTD

Keeping cash moving as businesses adapt

Today’s news highlights how quickly the risk profile of a customer can change. Rising employment costs, technological disruption, high energy prices, cyber risk and weakening demand can all place pressure on businesses that looked financially secure only months earlier.

For businesses selling goods or services on credit, that makes early warning particularly valuable.

CPA’s CreditCare credit reports can help Members assess customers before extending credit, while ongoing debtor monitoring can highlight changes that may justify reviewing credit limits or payment terms.

Where invoices become overdue, early action remains important. CPA helps Members recover overdue accounts professionally and respectfully, improving payment performance while seeking to preserve valuable customer relationships.

Strong credit control is not simply about chasing old debts. It is about protecting tomorrow’s cashflow by identifying risk sooner, maintaining consistent follow-up and preventing overdue invoices from quietly becoming bad debts.

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.

Open this guide in a new tab

.