UK Business News Today: 28 May 2026 | Economy, Markets & Insolvencies
UK businesses face renewed pressure from rising energy costs, food price inflation risks and growing uncertainty linked to the Middle East conflict. Today’s news points to a difficult trading environment for SMEs, with higher household bills likely to squeeze consumer spending, food manufacturers preparing price rises and Scottish mid-sized firms delaying investment and hiring. At the same time, youth unemployment warnings, pension adequacy concerns and AI disruption in finance highlight longer-term challenges for the labour market and business planning. For companies selling on credit, the common thread is clear: rising costs, weaker confidence and delayed investment can all feed through into slower payments and tighter cashflow.
James Salmon, Operations Director.
Key Developments
• Energy bills are set to rise by 13% from July, with further increases possible in October.
• More than four-fifths of food and drink manufacturers plan to pass higher costs on to customers.
• A government-commissioned review warns NEET numbers could reach 1.25m within five years.
• Scottish mid-sized businesses are cutting investment plans as supply chain and energy pressures intensify.
• Markets retreated as renewed US-Iran tensions pushed oil prices higher and weakened risk appetite.
SME & Business Environment
The energy price cap will increase by 13% from July, taking the average annual bill up by £221 to £1,862. Ofgem said global market volatility, particularly the Middle East conflict, is pushing wholesale prices higher. Cornwall Insight has warned that the cap could climb again in October, potentially taking a typical bill to £1,899.
Why it matters: Higher household and business energy costs reduce disposable income, increase overheads and raise the risk of slower customer payments.
More than four-fifths of food and drink producers surveyed by the Food and Drink Federation say they expect to pass higher costs on to customers. Manufacturers are facing higher costs for energy, transport, packaging, fertiliser and ingredients as the Middle East conflict disrupts global cost patterns. The findings raise fresh concerns that inflationary pressure could return to the grocery aisle after recent signs of easing.
Why it matters: Rising food production costs can squeeze margins throughout the supply chain and increase pressure on retailers, wholesalers and suppliers trading on credit.
A BDO survey shows Scottish mid-sized firms are under significant pressure from supply chain disruption and rising energy costs linked to the Middle East conflict. The survey found that 76% of firms plan to reduce or halt investment. A further 30% are considering raising prices, while 32% may delay hiring.
Why it matters: When businesses delay investment and hiring, suppliers may see weaker demand, longer decision cycles and increased pressure on payment terms.
Worldpanel says UK grocery inflation eased to 3.1% from 3.8%, with grey skies in early May dampening sales of summer essentials. Overall take-home grocery sales rose 1.5% over the past four weeks, up from 0.9% in the previous period, while sales over 12 weeks were up 2.3%. Ocado and Lidl remained the fastest-growing grocers, with sales up 10.2% and 8.8% respectively over 12 weeks, while Tesco grew 3.2%, Sainsbury’s 3.1%, Aldi 0.6%, Morrisons 1.3% and Asda fell 3.0%. M&S food sales were calculated at 9.3%.
Marks & Spencer, Primark, Next and Argos have urged ministers to close the £135 de minimis import tax loophole used by overseas rivals such as Shein and Temu. In a letter to Sir Keir Starmer and Rachel Reeves, the retailers proposed a £2.60 levy on low-value parcels. They argue the measure could raise £1.7bn a year for the Treasury and create a fairer trading environment for UK-based retailers.
Economy & Policy
The European Central Bank has warned that the ongoing Middle East conflict poses growing risks to the global economy and financial stability. It said the longer the conflict lasts, the graver the repercussions become. The ECB highlighted rising energy prices and limited fiscal room as key concerns, urging governments to use targeted support rather than broad measures that could worsen inflation.
Scottish Government GDP data shows Scotland’s economy grew by 0.1% in the first quarter of 2026. That was significantly below UK-wide growth of 0.6% over the same period. Services rose by 0.2% and construction increased by 0.4%, but production declined by 0.5%.
Standard Life chief executive Andy Briggs says the Pension Commission report due in 2027 must lead to meaningful reforms to prevent millions being left with inadequate retirement savings. He warned that 15m working-age people are projected to lack sufficient funds for retirement. Mr Briggs also pointed to a highly fragmented defined contribution landscape and argued for increasing auto-enrolment contributions from 8% to 12%.
Tax & Government
Amazon says it paid more than £1.3bn in UK taxes last year, up 20%, driven by higher employment taxes and revenue growth. The company said corporation tax, National Insurance and digital services tax payments all increased, but did not provide a detailed breakdown. Dan Neidle, founder of Tax Policy Associates, questioned the transparency of the disclosure and said a proper breakdown would be needed for full openness.
Tony Blair has argued that Labour can only succeed by returning to the radical centre and focusing on policy over personality. His essay criticises Keir Starmer’s government for drifting left and adopting policies that, in Blair’s view, damage growth. The response to Blair’s intervention has been mixed, with critics arguing that his vision is too rooted in past economic thinking and too focused on artificial intelligence, while giving too little attention to identity, control and social cohesion.
Employment & Labour
A government-commissioned review led by Alan Milburn warns that one in six young people could be out of education, employment or training by 2031 unless reforms are made to education, health and welfare. NEET numbers are expected to rise from about 1m currently to 1.25m within five years. The review found that 84% of NEET young people surveyed wanted work or training but were unable to access it, pointing to a wider system failure.
Stephen Burns, chief executive of Hollywood Bowl, says increases in National Insurance contributions and the minimum wage have made entry-level roles less viable. He said the business is now prioritising experienced staff over inexperienced job-seekers. The comments underline growing concern that higher employment costs are reducing opportunities for young or first-time workers.
An Association of Chartered Certified Accountants survey of more than 11,000 finance professionals in 160 countries found that more than half are concerned about AI’s impact on their roles. The survey also found that around 66% want their work to contribute positively to society and address climate change. The findings show that finance professionals are thinking not only about automation, but also about purpose and long-term relevance.
Industry & Investment
BP removed former chairman Albert Manifold after eight months in the role, citing serious concerns related to governance standards, oversight and conduct. Manifold disputes the allegations and says nobody raised issues about his conduct during his time at BP. BP said it stands by its statement, has a duty of care to employees affected by Manifold’s behaviour and will continue with the strategy he championed after his appointment.
Football Benchmark has increased Arsenal’s enterprise value by 23% to €4.9bn, lifting the club to fifth in its European valuation ranking. The club now sits just behind Manchester United, valued at €5.1bn, and closer to the financial level traditionally occupied by the two Manchester clubs. Real Madrid remains Europe’s most valuable football club at €7.7bn, ahead of Barcelona at €5.9bn. Arsenal’s valuation growth has been supported by stronger revenues, commercial income, squad value growth and cost control.
Reports from London residents and expatriates have highlighted how difficult the capital can be during extreme heat, with many homes, schools, hospitals and transport systems lacking air conditioning. Some have described UK buildings as feeling like a brick pizza oven during hot weather. The issue is being described as an architectural crisis, with the Climate Change Committee advising that active cooling, including air conditioning in vulnerable settings, should form part of the UK’s adaptation plans.
Global Market Summary
Global markets came under renewed pressure as hopes of easing Middle East tensions were undermined by fresh US airstrikes on an Iranian military site. The previous session had seen some optimism around the possibility of progress toward peace, but sentiment shifted sharply after the renewed military action. Oil prices rose, Asian equities retreated and European markets opened lower as investors reassessed the risk of a longer conflict.
In the UK and Europe, the FTSE 100 stood at 10,413.27 after opening around 0.9% lower at 10,411.55. The STOXX Europe 600 was at 624.43, while the DAX stood at 25,165.15 and the CAC 40 at 8,173.60. Live market data also showed the EURO STOXX 50 lower, at around 5,175.42, down 0.81%. The pressure reflected concern that higher oil prices could feed back into inflation and complicate central bank decisions.
In the US, futures pointed to a softer start after a strong run. The S&P 500 was listed at 7,520.36, the Dow Jones at 50,644.28 and the Nasdaq at 26,674.73 in the uploaded market pack. S&P 500 futures were down 0.1% and Nasdaq 100 futures fell 0.3% as investors reacted to the Middle East flare-up. The prospect of renewed inflation pressure from energy markets reduced appetite for risk after more than a week of gains.
Asian markets also weakened. The MSCI Asia Pacific Index fell as much as 2.2%, ending a five-day winning streak. Japan’s Nikkei 225 declined 0.5% to 64,693.12 and the Topix fell 0.4% to 3,902.01. South Korea’s Kospi fell 0.5% to 8,185.29, while Taiwan’s market turned lower after earlier touching an intraday record driven by AI enthusiasm. The Hang Seng was also lower, trading around 24,964.78, down 1.43%.
Currency markets reflected the same caution. GBP/USD was at 1.3399, down 0.21%, while EUR/GBP stood at 0.8666, down 0.09%. That implies GBP/EUR of about 1.1539. GBP/JPY was at 213.69, up 0.22%. The yen remained close to levels that could raise intervention concerns, while the euro faced pressure against the dollar if the US-Iran stalemate continues.
Commodity markets were dominated by energy. Brent crude rose to $96.86 a barrel and WTI crude stood at $91.01 as renewed strikes increased fears around supply routes and the Strait of Hormuz. The rise in oil prices matters because it can quickly feed into fuel, transport, production and household energy costs. Gold fell to $4,386.00 per ounce, touching its lowest level in two months, as higher oil prices increased inflation concerns and clouded the outlook for interest rates. Copper was at $13,531.00 per tonne, with industrial metals also under pressure.
The broader message from markets is that geopolitical risk is once again feeding directly into business costs. For SMEs, higher oil and energy prices can affect transport, manufacturing inputs, supplier costs and customer confidence. A volatile market backdrop also makes lenders, insurers and customers more cautious, which can raise the importance of credit checks, debtor monitoring and early action on overdue accounts.
Insolvency Watch
Administrations (2)
• ESG LEISURE LIMITED
• ROSLING KING LLP
Liquidations (11)
• CHALFEN VENTURES UK I LIMITED
• DRAIN CLEARANCE & REPAIRS LIMITED
• HOKODO SERVICES LTD
• JRL RICHARDS DEVELOPMENTS LIMITED
• NFJL LIMITED
• NUMBLET LIMITED
• PLATINUM TOPCO LIMITED
• REALPLAN LIMITED
• ROKO 316 LTD
• STOREY PROPERTY DEVELOPMENTS (TWO) LIMITED
Winding-up petitions (15)
• BELUGA GROUP LTD
• CRT FLOORING SPECIALISTS LIMITED
• D’AGOSTINO ITALY LTD
• GIANT FLOORS LIMITED
• HUNSEB LTD
• LPJ DEVELOPMENTS LIMITED
• LSB OPTICAL SERVICES LIMITED
• LUBRIAGE LTD
• MY LALALAND LIMITED
• OLD PARK LANE CAPITAL LIMITED
• RIDGEWAY PARK FARM WORCESTER LIMITED
• SJP CATERING LIMITED
• SOLO GROUP (HOLDINGS) LIMITED
• SOLO GROUP SERVICES LIMITED
• WYCHWAY MOTOR GROUP LIMITED
How CPA can help
Today’s news shows how quickly external pressure can move through the economy. Energy bills are rising, food producers are preparing price increases, businesses are delaying investment and insolvency notices continue across multiple sectors.
When customers are under pressure, payment behaviour can change quickly. CPA helps Members protect cashflow through CreditCare credit reports, debtor monitoring and professional overdue account recovery. Early action can make the difference between a manageable overdue invoice and a costly bad debt.
To discuss how CPA can help protect your cashflow and preserve customer relationships, call 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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