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

A little breathing space would be welcome. But if you run a business, today’s Budget needs to do more than offer a reassuring headline: it needs to help the numbers work. With financial distress at a record high and borrowing costs climbing, many firms are balancing support for customers against bills of their own. As John Healey prepares to speak, the practical questions are familiar: will costs ease, will customers feel more confident, and will that translate into invoices being paid on time?

James Salmon, Operations Director.

Key Developments

Budget day: Energy support, a fuel duty freeze and targeted business help are expected, with limited fiscal room.

• Record financial distress: 738,144 UK businesses face significant distress, up from 726,594 a year earlier.
• Pre-pack warning: Research links former-owner buybacks to higher repeat insolvency and weak unsecured creditor recoveries.
• Costs remain difficult: Five-year gilt auction yields reached 5.036%, while Brent crude is back above $115.
• Insolvency Watch: Today’s list contains 2 administrations, 21 liquidations and 1 winding-up petition.

Economy & Policy

Budget day: breathing space comes with difficult choices

John Healey’s first Budget is expected at around 12.30pm, with household energy support, a National Living Wage increase and a fuel duty freeze among the anticipated measures. The Treasury has already announced plans to remove household gas standing charges in 2027 or as soon as possible afterwards, shifting fixed costs into usage charges. That could benefit lower-use households, although savings will vary and it should not be treated as an immediate reduction in commercial energy bills.

Bloomberg Economics estimates that the £23.6bn fiscal buffer recorded in March may have roughly halved, principally because of higher borrowing costs. Its analysis discusses possible business rates changes, energy support and additional investment through the National Wealth Fund and British Business Bank; these are prospective measures rather than completed announcements.

Borrowing costs narrow the Chancellor’s options

The Debt Management Office sold £4.5bn of five-year gilts at an average yield of 5.036%, reported as the highest since 2008. The supplied morning market report puts the ten-year gilt yield at 5.36%, against around 4.5% at the start of the year. Separate estimates put the additional debt-interest burden in 2029/30 at roughly £11bn–£14bn, increasing pressure on future tax and spending decisions.

SME & Business Environment

Record financial distress puts customer resilience in focus

Begbies Traynor’s research identifies 738,144 businesses in significant financial distress during July–September, up 1.6% from 726,594 a year earlier. Construction, property and consumer-facing sectors feature prominently, while business arrears for VAT, corporation tax and employment taxes stood at £27.3bn at the end of August. That is below the £51.3bn pandemic peak but well above the £11.4bn pre-pandemic figure. Significant distress is a warning indicator, rather than a declaration that every affected business will become insolvent. Investegate

Why it matters: A busy customer can still be short of cash; payment patterns, credit exposure and fresh financial information deserve attention before an overdue balance grows.

Pre-pack research highlights the limits of creditor recoveries

Turnstone Intelligence’s research found that 44% of businesses bought by connected parties through pre-pack administrations became insolvent again, compared with 26% bought by unconnected purchasers. In connected-party deals involving deferred payments, unsecured creditors received a return in just 23% of cases, averaging 1.58p in the pound. R3 defended pre-packs as legitimate, regulated rescue tools and pointed to safeguards introduced in 2021; the findings do not establish misconduct in every connected-party sale.

Why it matters: When a customer’s business reappears under as a new legal entity, establish what funds are available to the old business to settle old invoices and assess any new credit separately. Be wary. Once an owner phoenixes his business, he is much more likely to do it again, leaving creditors once again in the lurch.

High streets need relief that reaches everyday trading

Retailers are pressing for meaningful business rates reform as costs, changing shopping habits and bank closures reshape town centres. The supplied report puts shop vacancies at 13.5% in Hindley and 19% in nearby Wigan, with more than one in ten high-street units vacant nationally. Proposed regeneration measures include a £210m package, tighter planning controls and improved shopfront standards, while retailers also want parking costs addressed. Announced rates relief for pubs and social clubs does not extend to restaurants.

Tax & Government

Business groups ask for certainty, while banks warn against higher taxes

ICAEW chief executive Alan Vallance wants long-term tax certainty, no further employment tax increases this Parliament and a frozen business rates multiplier for 2027/28. More than two-thirds of respondents to ICAEW polling said greater tax and regulatory certainty would encourage investment. Separately, City of London policy chairman Chris Hayward warned that higher bank taxes could weaken competitiveness and SME lending, while calling for simpler regulation and the abolition of stamp duty on shares.

Share buyback proposals raise family succession concerns

RSM and KPMG have warned that proposed changes to company share buybacks could make family business succession less affordable. The concerns include treating some payments to retiring founders as dividend income rather than capital gains and a possible two-year limit for qualifying buyback arrangements. These remain proposals, with advisers warning that the eventual rules could favour sales to third parties over family handovers.

The £100,000 threshold is influencing pay decisions

IG forecasts that wage growth will push more senior public sector professionals above £100,000 over the coming years. The personal allowance falls by £1 for every £2 of adjusted net income above £100,000 and disappears at £125,140, creating a steep effective marginal tax rate; the frequently quoted 62% includes employee National Insurance in a typical case outside Scotland. GOV.UK

An RBC Wealth Management survey of 750 high earners found 55% would consider declining, deferring or restructuring a pay rise, while 46% were increasing pension contributions. Childcare eligibility can add further complexity around the threshold.

Mileage announcement offers help for business drivers

The government has announced that the 55p tax-free mileage rate for the first 10,000 business miles will be retained, with the rate above that threshold increasing from 25p to 35p. The parliamentary announcement confirms the change, although employers should check the applicable commencement details before updating claims systems. ATT’s Emma Rawson welcomed the support but argued that a single 60p rate would be fairer; these allowances concern qualifying business travel in personal vehicles. UK Parliament

Industry & Investment

AI earnings lift chip stocks, but spending remains under scrutiny

SK Hynix reported quarterly operating profit of roughly 83trn won, up more than sevenfold, and increased its annual shareholder return programme to 100trn won. Later market updates put its share-price gain at 11%, helping drive a sharp South Korean rally. Alphabet and Microsoft face scrutiny over planned annual capital expenditure of up to $205bn and $175bn respectively, while Anthropic’s IPO filing has renewed debate about AI valuations, founder wealth and the cost of delivering future profits.

Microsoft has made a voluntary exit offer covering around 60,000 eligible employees and there are substantial new AI fundraising plans at Meta.

Corporate updates show an uneven trading picture

BNP Paribas reported strong equities trading revenue, while Deutsche Bank’s fixed-income performance held up better than major US peers. BASF and ASM International raised forecasts, and Unilever, Danone and PayPal reported encouraging trading or outlook updates. Against that, GSK missed expectations on important products, Adyen dropped its longer-term margin target and Mercedes-Benz cut its profit outlook. The mixed results underline why sector headlines alone are a poor guide to an individual customer’s payment capacity.

International & Trade

Energy and trade uncertainty remain a business cost risk

Reports of possible renewed US military action against Iran pushed oil higher again, reversing Tuesday’s relief over diplomatic signals. The supplied recap also highlights disrupted LNG supplies, possible extensions to pauses on US fees for Chinese-linked ships and tighter Taiwanese AI export controls. These developments sit alongside wider diplomatic and sanctions uncertainty, keeping transport costs and international supply chains exposed.

Global Market Summary

UK and Europe: Budget caution follows a divided session

The FTSE 100 fell 0.8% to 10,686.54 on Tuesday, weighed down by HSBC’s results and Reckitt’s reduced sales outlook. Continental markets fared better, with the STOXX 600 up 0.5%, the Euro STOXX 50 up 0.79% and the DAX up 0.7%. Wednesday’s softer opening reflects renewed oil concerns and caution before the Budget and Federal Reserve decision.

US and Asia: AI demand supports shares

US technology shares advanced on Tuesday, supported by chip stocks and AI investment news. Wednesday’s Asian session built on SK Hynix’s results: South Korea’s Kospi rose 6.6% to 6,012.44, while Taiwan’s Taiex gained 2%. US futures were broadly steady, with S&P 500 futures at 7,764.50 and Nasdaq 100 futures at 29,947.75.

Currencies: sterling slips before the Budget

Sterling traded at $1.3294, down 0.09%, as investors awaited the fiscal statement. The supplied EUR/GBP quote of 0.8369 implies £1 buys approximately €1.1949, with sterling around 0.09% weaker against the euro. A softer pound can increase the sterling cost of imports and dollar-priced commodities.

Commodities: oil reverses Tuesday’s decline

Brent crude rose $1.34 to $115.22 a barrel, while WTI increased $1.39 to $101.29 on renewed geopolitical concerns. Gold was approximately $4,049 an ounce, down $11.17, as investors assessed interest-rate risks. For SMEs, the most immediate transmission is through fuel, delivery, energy and materials costs.

Central banks: inflation keeps borrowing risks alive

Markets put the probability of a Federal Reserve hold at nearly 90%, with attention on its guidance and August core PCE inflation of 3%, above the 2% target. Canada is expected to raise rates, the ECB is expected to hold, and New Zealand’s surprise hold weakened its currency; the common concern remains persistent inflation.

Insolvency Watch

Administrations (2)

• ARM FURNITURE LIMITED
• CLIMETREK LTD

Liquidations (21)

• ANDREW TURNER & CO LIMITED
• BENNETTS FAMILY BAKERS LIMITED
• BRITANNIA ADHESIVES LIMITED
• CAMBRIDGE PROGRAMMES LIMITED
• CHARACTER HIDEAWAYS LIMITED
• DECENNIO LIMITED
• DECENNIO TW LIMITED
• ELEVATE PRO CONSULTING LTD
• F & EW ASSOCIATES LTD
• FLEISCHMANN MANAGEMENT LIMITED
• G J TREASURE LTD
• HARVEY DUCKERS CONSULTING LIMITED
• KAYA KAYA LIMITED
• QUANTUM EXPERT SOLUTIONS LIMITED
• RLB FAMILY INVESTMENT COMPANY
• RRF HOLDINGS LTD
• STIFFKEY DEVELOPMENTS LIMITED
• TEAM LEYLAND HOLDINGS LIMITED
• VIEW DEVELOPMENTS LIMITED
• WHL 1 LIMITED
• WILLAN GROUP LIMITED

Winding-up Petitions (1)

• EBBERNS LIMITED

Keeping cash moving while the Budget takes shape

Government support may provide breathing space, but businesses still need a clear view of who owes them money and how much credit they can safely extend.

CPA’s CreditCare credit reports and debtor monitoring help members assess customers and spot changes. Credit control support and the CPA Overdue Account Recovery Service can help address overdue invoices 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.

Open this guide in a new tab

.