UK Business News Today: 29 October 2026 | Economy, Markets & Insolvencies

How do you know if someone has run a marathon? Keep quiet – they will tell you themselves!

I say this as yesterday i skipped the budget reaction in the afternoon and ran a marathon around Avery Hill in Greenwich (I am currently running every road in London and have completed 28 of 33 boroughs.

You can follow my progress here: https://citystrides.com/users/35657/map

If you limit your running to running a small business, the morning after a Budget usually comes down to three questions: will my costs change, will my customers have more money, and when does any of it take effect?

Yesterdays Budget offers some welcome relief on business rates and fuel, but higher wages, new tax measures and a subdued growth outlook mean there is still plenty to plan for. For businesses selling on credit, a little breathing space is useful; turning sales into cash remains essential.

James Salmon, Operations Director.

Key Developments

• Qualifying retail, hospitality and leisure properties in England gain higher business rates relief thresholds from April 2027.
• The National Living Wage will rise to £13.20, while employment rights reforms add to employers’ planning considerations.
• Business Asset Disposal Relief is being reduced, alongside a new Founder’s Relief and a higher trading allowance.
• VAT e-invoicing and new HMRC payment arrangements will change how businesses manage invoices and tax cashflow.
• Markets took the Budget calmly, but official forecasts point to weak growth and persistent inflation.

Economy & Policy

A calmer Budget does not remove the pressure on business

Chancellor John Healey’s first Budget prioritised targeted support over broad tax increases, aiming to give households and businesses breathing space without unsettling bond investors. The immediate reaction was relatively calm: gilt yields eased, banks rallied and sterling initially strengthened. However, the OBR forecasts growth of just 1.2% in 2026 and 1.0% in 2027, with inflation averaging 3.1% and 3.4% respectively and returning to 2% in 2030.

Fiscal headroom narrows as harder spending decisions approach

Post-Budget analysis puts headroom against the day-to-day spending rule at £14.5bn, compared with nearly £24bn in March; the Chancellor described the buffer in rounded terms as £15bn. Defence commitments, debt interest and public service demands leave limited scope for further support if conditions deteriorate. Bloomberg Economics’ separate forecasts remain at 1.5% growth this year and 1.1% in 2027, and its analysts warn that accommodating defence spending could squeeze non-defence capital investment by 5% in real terms in 2028–29 and 8% in 2031–32. IFS director Helen Miller criticised the proliferation of small measures as unlikely to deliver a substantial improvement in growth.

SME & Business Environment

Rates relief gives qualifying high street businesses a clearer saving

From 1 April 2027, the rateable-value threshold for 100% small business rates relief for qualifying retail, hospitality and leisure properties in England will rise from £12,000 to £18,000. The upper threshold for tapered relief increases from £15,000 to £21,000. Around 70,000 additional businesses are expected to pay no rates, while machine games duty will rise from 20% to 25% as part of the wider high street package. GOV.UK

Side hustles gain a higher trading allowance

The trading allowance will rise from £1,000 to £3,000 from 6 April 2027, supporting people testing a new venture or earning additional trading income. The allowance relates to trading income, rather than an automatic £3,000 profit exemption on top of expenses. The Budget also announced a Young Entrepreneur allowance intended to support a year of living costs, with eligibility details important to its practical value.

Share options and R&D claims receive administrative support

From 6 April 2027, the Company Share Option Plan limit will double from £60,000 to £120,000, and the maximum exercise period will extend from 10 to 15 years. CSOP options will no longer count towards an individual’s Enterprise Management Incentive limit. From 1 April 2027, companies will no longer need an R&D claim notification form, while a simplified Additional Information Form is planned for autumn 2027.

Why it matters: Easier administration and wider share incentives may help smaller growth businesses, although anticipated tax relief should not be treated as cash already received.

Tax & Government

Business exit relief is reduced as Founder’s Relief is introduced

The lifetime gains limit for Business Asset Disposal Relief will fall from £1m to £500,000, with the Chancellor saying three in four claimants will be unaffected. A new Founder’s Relief offers a 10% rate on qualifying lifetime gains up to £10m from the sale of a new business. Blick Rothenberg’s Malli Kini welcomed the direction of the new relief but stressed that its value depends on the qualifying conditions.

Banks face a temporary tax increase

The Bank Corporation Tax surcharge will rise from 3% to 6% between 1 January 2027 and 31 March 2028, before returning to 3% on 1 April 2028. Together with the 25% main corporation tax rate, that produces a 31% combined rate on relevant profits, subject to the surcharge rules and allowances. The measure is expected to raise around £2bn, and bank shares rose as investors welcomed its temporary nature and smaller-than-feared scale.

Savings and property income face higher tax rates

From 6 April 2027, savings income tax rates will be 24%, 44% and 49%, reflecting a further two-percentage-point increase on the previously announced rates. Property income rates will also reach 24%, 44% and 49%, with territorial and devolved rules relevant to their application. GOV.UK

Evelyn Partners highlighted the impact on people holding large cash balances after business or property sales, while the National Residential Landlords Association warned that higher property taxes could encourage landlords to sell. The annual cash ISA allowance remains £20,000, and a new incentive for first-time stocks and shares ISA investors is being explored.

Property investors face further changes

The £2m threshold for the high-value council tax surcharge, commonly described as a mansion tax, is being retained. A 100% premium is planned from April 2028 for long-term empty properties above the threshold, with annual charges reaching £15,000 for the highest-value homes. Separately, sovereign wealth funds will become liable to corporation tax on directly held UK property, with the measure expected to raise nearly £700m annually by the end of the decade.

HMRC expands its focus on wealthy taxpayers

HMRC has identified more than 200 billionaires with UK tax footprints for a targeted compliance programme. Dedicated managers will engage with them about their tax affairs, alongside plans to recruit 400 specialists by 2030 and invest in technology. The programme aims to raise at least £500m by 2030.

Investment tax certainty opens to a wider group of major projects

From 4 November 2026, the qualifying project threshold for HMRC’s Advance Tax Certainty Service will fall from £1bn to £300m. The service provides advance certainty about the application of UK tax rules to major investments. It remains aimed at large projects, although smaller suppliers could benefit if greater certainty helps those projects proceed.

Calls for an inquiry into a possible Budget leak

Dame Meg Hillier has asked the Treasury and Financial Conduct Authority to investigate how details of the temporary bank surcharge increase reached Bloomberg before the announcement. She raised concerns because the information could affect market prices. The request for an investigation does not establish that unlawful disclosure took place.

Employment & Labour

Higher wages require a fresh look at payroll budgets

The National Living Wage is set to rise by a reported 3.9%, from £12.71 to £13.20 an hour. Reports also say the government has stepped back from plans to equalise the minimum wage for workers aged 18 to 20 with the adult rate; that does not establish that younger workers’ own rates will be frozen. Employers need to assess the full cost of the applicable wage changes alongside National Insurance, pensions and pay differentials.

Job-cut reports highlight pressure on employers

City AM’s analysis of more than 250 media sources identified over 130,000 job losses across reported company announcements over two years, including Jaguar Land Rover and Whitbread. This is a compilation of reported cuts, rather than a measure of net employment across the economy. Rising employment costs feature in the debate, while unemployment is around 5% and nearly one million young adults are described as outside employment, education or training.

Employment rights reforms bring further cost and flexibility questions

The OBR’s reported assessment of the Employment Rights Act suggests modest productivity benefits could be outweighed by higher labour costs and reduced operational flexibility. The changes discussed include reducing the unfair dismissal qualifying period to six months and removing the compensation cap. Employers should align staffing plans with the implementation timetable and applicable guidance.

Energy & Costs

Fuel duty relief continues, while mileage allowances rise

The temporary 5p-per-litre fuel duty cut will continue through 30 June 2027, with the planned inflation increase deferred to 1 July. The additional 3.7p cut applying to specified rebated fuels is also extended through June. For employees and self-employed people using their own cars or vans for business, the 55p allowance for the first 10,000 miles applies from 6 April 2026, while the rate above 10,000 miles rises from 25p to 35p from 6 April 2027.

Household energy help supports spending power unevenly

Around 20 million households in Council Tax bands A to D will receive a £100 payment towards gas bills this winter. Residential gas standing charges are also to be abolished from 2027, shifting their costs into usage-based charges for approximately 23 million households. Estimates suggest around 60% of households could save an average of £45, rather than everyone saving the full roughly £108 annual standing charge.

Tariff suspensions offer some relief on everyday costs

The Budget includes tariff suspensions covering more than 100 food products, alongside wider measures intended to reduce living costs. The effect on individual businesses will depend on which products they buy, their sourcing arrangements and how suppliers pass through savings. These changes sit against still-elevated international energy and commodity prices.

Tax Administration

E-invoicing roadmap puts invoice systems on the planning agenda

The government has published a roadmap towards mandatory VAT e-invoicing from April 2029. The programme aims to reduce administration and improve efficiency, while a separate call for evidence explores modernising Corporation Tax administration. Businesses will need to follow the technical specifications and implementation guidance as they develop.

New HMRC payment arrangements make cashflow timing more important

From April 2029, businesses will need Direct Debit instructions for VAT and PAYE liabilities, while retaining the option to pay by other methods before the relevant cut-off. The instructions will collect unpaid balances, so tax funding needs to be available when required. Separately, Self Assessment reforms are intended to move more payments into the year through smaller, more frequent instalments, with extra HMRC funding for implementation.

Online marketplace VAT rules expand from October 2027

Online marketplaces will take responsibility for collecting VAT on qualifying sales by UK businesses, including VAT-registered sellers and other UK businesses reaching the £90,000 annual sales threshold per platform. The supplied HMRC briefing excludes personal and non-business sales, second-hand goods and business-to-business transactions. A separate change from April 2027 restricts the overseas-services VAT reverse charge to cases where the UK recipient is VAT-registered.

Expense claims and point-of-sale systems face further reform

From 6 April 2028, the £2,500 threshold requiring a Self Assessment return for employment expense relief claims will be removed, allowing larger claims through PAYE with supporting evidence. Benchmark and Overseas Scale Rates used for qualifying employee travel and subsistence are also due for reform from April 2028. Mandatory standards for electronic and mobile point-of-sale software will be developed to tackle sales suppression, with consultation expected in summer 2027. Employment-related image rights payments are to be treated as taxable employment income, with implementation deferred until 6 April 2028.

Housing, Investment & Public Spending

Housing measures offer future demand, with a timing gap

The £4.7bn Your First Home equity-loan scheme is intended to support first-time buyers with up to 20% government equity loans and a reduced deposit requirement. Official Budget tables place its introduction in April 2027, rather than the first-quarter timing cited in some initial commentary. It is separate from the new First Time Buyer ISA, planned from April 2029 to replace the Lifetime ISA for new savers; existing LISA holders can continue under their existing arrangements. GOV.UK

Housebuilders initially welcomed the housing support, but investors also considered whether buyers might delay purchases until assistance becomes available.

Pension allowance changes have a narrow taper to watch

A new Pension Tax Allowance of £13,036 is planned from April, matching the full new State Pension and rising annually until at least April 2030. LCP’s Steve Webb warned that the taper could create a 53% marginal income tax rate for income between £13,037 and £13,319. That rate applies within the narrow taper band, rather than to all pension income.

Defence investment ambitions await the spending detail

A new Innovative Defence Financing Taskforce and more than £5bn in announced financing support aim to attract private capital and facilitate joint procurement with NATO allies. Detailed plans for reaching defence spending targets of 3% of GDP by 2030 and 3.5% by 2035 are deferred to the next spending review. Separately, the Telegraph reports a £2bn reduction to the MoD budget associated with the treatment of military pension savings, while the Budget overview describes £10bn in support for Ukraine, including £500m in urgent winter military funding.

Devolution and public service reform shape the longer-term outlook

The Budget overview sets out plans to direct 20% of business rates revenues to mayoral offices or local authorities from 2027, with a share of income tax revenues planned from 2028. An NHS productivity review will consider how AI could reduce administration and increase time with patients. The package also includes £430m for rough sleepers over winter, while the wider allocation of departmental resources remains a key issue for next year’s spending review.

Industry & Investment

Microsoft’s cloud growth contrasts with Alphabet’s advertising disappointment

Microsoft reported quarterly revenue of $92.28bn, up 19% and above the $90.69bn forecast, while adjusted earnings of $4.89 a share beat expectations of $4.73. Azure grew 48% and is now its largest individual business, with Microsoft shares rising around 4% after hours. Alphabet’s revenue excluding partner payouts reached $111.2bn but missed expectations, and search and other advertising grew at their slowest pace in five quarters. Its shares fell around 10% in extended or premarket trading, implying a potential loss of more than $395bn in market value if sustained.

Energy profits and mixed company results underline the uneven backdrop

Shell reported $10.8bn in adjusted quarterly earnings and announced a $5bn fourth-quarter buyback, while TotalEnergies’ adjusted profit more than doubled to $9.1bn as refining margins strengthened. Lloyds reported £2.33bn in statutory pre-tax profit, up 99%, and a return on tangible equity of 19.5%; ING, by contrast, raised provisions and announced around 400 job cuts. Samsung plans capital spending of 84.4 trillion won, up more than 60%, despite a roughly 2% miss against chip-division profit forecasts, while STMicroelectronics and Prysmian delivered more encouraging outlooks. Elsewhere, Haleon cut guidance following Chinese import-rule disruption affecting Centrum products, while Adidas and Magnum raised their outlooks.

Global Market Summary

Equities: a measured Budget response, with technology pulling in different directions

UK banks welcomed a temporary surcharge increase that was smaller than feared, while housebuilders were more cautious about the timing of support. European markets moved higher on Thursday morning, following modest US gains on Wednesday. In Asia, Japan rose while Hong Kong, mainland China and South Korea weakened as investors assessed technology earnings and AI investment returns.

Rates and bonds: stability comes with expensive borrowing

The Federal Reserve held rates at 3.75%–4.00% in a 10–2 vote, with two dissenters favouring a quarter-point increase. Chair Warsh signalled fewer rate-setting meetings in 2027, while markets continued to consider a December increase. The US 10-year Treasury yield eased to around 4.997%, and the supplied Budget reaction put the UK long-bond yield at 5.67%, down four basis points.

Currencies: sterling steadier against the euro

£1 buys $1.3316 and €1.1956.

Commodities: oil eases, but the cost backdrop remains demanding

Oil eased after reports of renewed US diplomatic outreach to Iran, although Brent remained around 18% higher over the month. European gas had traded above €100 per MWh before retreating; the US gas futures price in the table is a separate market. Supply disruption, LNG shipment uncertainty and low fuel inventories continued to influence energy prices, while expectations of further US rate increases weighed on gold.

Why it matters: Fuel duty relief offers a cushion, but wholesale energy prices can still squeeze transport, production and customers’ disposable income.

What markets were watching next

The ECB is expected to hold its deposit rate at 2.50%, while the Bank of Japan’s decision was due on Friday. US third-quarter GDP and September inflation data were still pending: forecasts were for 3.2% annualised GDP growth and 3.1% annual core PCE inflation, rather than reported results. UK figures already released showed mortgage approvals of 53,443 against a 54,000 forecast, consumer credit of £1.914bn and net mortgage lending of £3.866bn.

Geopolitical risks remained in focus through the Iran conflict, Russia’s war in Ukraine, shipping disruption and trade restrictions, including US action affecting Chinese genomics companies. For UK business owners, the practical channels remain energy bills, exchange rates, supply availability and the cost of finance.

Insolvency Watch

Administrations (6)

• ARM FURNITURE LIMITED
• BUILD GENERATION LTD.
• CLIMETREK LTD
• DISPLAY DEVELOPMENTS LIMITED
• DOMUS TILES LIMITED
• FAIRGROVE (EAST MIDLANDS) LIMITED
  

Liquidations (76)

• ABSTRACKED SOLUTIONS LIMITED
• ANDREW TURNER & CO LIMITED
• ARDEN FOREST DEVELOPMENTS LIMITED
• BENNETTS FAMILY BAKERS LIMITED
• BGP EDUCATION CONSULTANCY LTD
• BRITANIACOURT ENTERPRISES LIMITED
• BRITANNIA ADHESIVES LIMITED
• CAMBRIDGE PROGRAMMES LIMITED
• CASSPA LTD
• CHARACTER HIDEAWAYS LIMITED
• CLASS 100 LIMITED
• DECENNIO LIMITED
• DECENNIO TW LIMITED
• DECISION MECHANICS LIMITED
• ELEVATE PRO CONSULTING LTD
• ELMRIDGE INVESTMENTS LTD
• ESSENTIAL RESULTS LIMITED
• ETCETERA COMBINED HOLDINGS LTD
• F & EW ASSOCIATES LTD
• FISCAL AFFAIRS LIMITED
• FLEISCHMANN MANAGEMENT LIMITED
• G J TREASURE LTD
• GALLDOC MANAGEMENT LIMITED
• GYNAESTAT LIMITED
• HANNAH-LEONA LIMITED
• HARVEY DUCKERS CONSULTING LIMITED
• HASSOP HALL HOTEL LIMITED.
• HENCHARDS LIMITED
• HENDRIK ANTOON LIMITED
• HIMALAYA IMPEX LIMITED
• HURNS MINERAL WATER CO. LIMITED
• IMBOLC LIMITED
• J&C DWELLINGS LTD
• J.A. TAYLOR CAR SALES (ROSSENDALE) LIMITED
• J.H. BOURDON-SMITH LIMITED
• JADDA LIMITED
• JAY EMM LIMITED
• JOAANDAL LTD
• KAYA KAYA LIMITED
• LD PURSUIT LTD
• MIAMI WEISS AVIATION LIMITED
• MOMIJI PROJECTS LTD
• NORTHERN INSTALLATION SERVICES LIMITED
• OPC CONSULTING LTD
• P & W SITE FIXING LIMITED
• PETERHOUSE CONSULTANTS LIMITED
• PJD BUILDING CONSTRUCTION LIMITED
• PYRAMID PLUS LONDON LLP
• QUANTUM EXPERT SOLUTIONS LIMITED
• R & M SMITHSON (FARMING) LIMITED
• R JOHN ANAESTHETICS LTD
• RLB FAMILY INVESTMENT COMPANY
• RRF HOLDINGS LTD
• RUTH BRADY (HAREWOOD) LIMITED
• SAM MURRAY CREATIVE LTD
• SITEHOLD LONDON LTD
• SLATE AGE (FENCE) LIMITED
• SPICE HEAVEN (WHITCHURCH) LTD
• SPK CONSULTING SERVICES (CHESHIRE) LIMITED
• STIFFKEY DEVELOPMENTS LIMITED
• SYBER SOLUTIONS LTD.
• SYNTROFOS LIMITED
• TAPPENDEN (WICKHAM) LIMITED
• TAYLOR HOMES (LINCS 2) LIMITED
• TEAM LEYLAND HOLDINGS LIMITED
• THE CLOTHING LINE LIMITED
• THE PLOUGH INN AT CALDECOTT LIMITED
• TIC FINANCIAL SERVICES (UK) LTD
• UNITY CONTRACT SERVICES LIMITED
• VIEW DEVELOPMENTS LIMITED
• VOCATI LTD
• WEATHERSTONE PROPERTIES (SEAFORD) LTD
• WHL 1 LIMITED
• WICKFORD HOMES LIMITED
• WILLAN GROUP LIMITED
• WINTERSETT PROPERTIES LTD

Winding-up Petitions (23)

• C&L TRAFFIC MANAGEMENT LTD
• CAER CONSTRUCTION LIMITED
• CASTLE HILL CONSTRUCTION LTD
• COV19 CARE LTD
• COVER CALL BUILDING SERVICES LIMITED
• CROWN CONSTRUCTION AND MAINTENANCE LIMITED
• DEEPLAND TRADING LTD
• EBBERNS LIMITED
• ETA PRODUCTIONS LTD
• HOUSE OF KAGU LTD
• HYDROPOOL BY HI TECH LIMITED
• JC EMPRESAS LTD
• JESTERS DAYCARE LTD
• LOLFA CYF
• LOLFA LLANDEILO CYF
• MANOR HOLDINGS ESSEX LIMITED
• ONLINE SALES MANAGEMENT LTD
• OPULENCE SERVICES LTD
• RADFORDS MOTOR SALES LIMITED
• RJ ANDERTON LIMITED
• ROUNDLANDS INVESTMENTS LTD
• THE ATLANTIC HOTEL PORTHCAWL LTD
• TIS ASSOCIATES LTD
  

Turning Budget breathing space into stronger cashflow

A lower rates bill or more predictable fuel duty can help. Neither pays an overdue invoice, and many of yesterday’s measures will not take effect for months or years.

Start with the changes that apply to your business, add them to your cashflow forecast and consider which customers face higher costs. Keep credit limits proportionate, watch for changes in payment behaviour and follow up overdue balances before they become harder to resolve.

CPA’s CreditCare credit reports and debtor monitoring help businesses assess customers and identify changing risk. Our credit control support and Overdue Account Recovery Service help improve payment performance and recover unpaid invoices while preserving valuable customer relationships.

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.

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