UK Business News Today: 30 July 2026 | Economy, Markets & Insolvencies

UK businesses begin the long weekend facing a mixed economic picture. Inflation has fallen and consumers are continuing to spend, but higher oil prices, elevated mortgage costs and uncertainty over future taxes are adding pressure. Strong results from several large companies point to continued investment in defence, artificial intelligence and infrastructure, while weaker technology markets and today’s insolvency notices underline the importance of careful credit management.

This is the final CPA Daily Business News briefing before taking a long weekend. The next blog will be published on Tuesday 4 August 2026.

James Salmon, Operations Director.

Key Developments

• The Bank of England is expected to hold Bank Rate at 3.75%, despite inflation falling to 2.6%.
• UK households are saving less and using accumulated financial buffers to maintain spending.
• Andy Burnham has opened the door to difficult funding decisions, potentially including tax rises, to reform social care.
• Changes to R&D tax credits have reportedly caused more than 60% of surveyed businesses to reduce innovation spending.
• Technology shares fell sharply as higher oil prices, inflation concerns and interest-rate uncertainty unsettled global markets.

Economy & Policy

Bank of England expected to hold interest rates

The Bank of England is expected to leave its main interest rate unchanged at 3.75%. Annual inflation fell to 2.6% in June, around half a percentage point below the Bank’s most recent forecast, giving policymakers some reassurance that domestic price pressure is easing.

However, renewed conflict in the Middle East has pushed oil prices higher and increased the risk that energy and transport costs could feed back into inflation. This may reduce the likelihood of near-term interest-rate cuts even if underlying UK inflation continues to improve.

Why it matters: Businesses selling on credit may continue to face expensive borrowing, cautious customer spending and slower payment from companies managing higher finance and energy costs.

Mortgage approvals rise more than expected

UK mortgage approvals increased to 58,200 in June, from 56,565 in May, exceeding the consensus forecast of 57,100. The figure nevertheless remained below the six-month average of approximately 61,400.

Net mortgage borrowing rose sharply to £7.7 billion, compared with £3.3 billion in May. The increase suggests that demand for home lending remained resilient despite elevated borrowing costs.

Why it matters: Housing activity supports trades, construction, furnishings and professional services, but higher mortgage payments can still reduce household spending and place pressure on small-business customers.

Household savings support consumer spending

British households are saving less and using financial buffers built since the pandemic to maintain living standards. Retail sales have exceeded expectations five times this year, while card spending rose at its fastest rate in 11 months as the World Cup and warm weather supported demand.

Households added £6.3 billion to cash and bank deposits in June, around 20% less than a year earlier. Household savings fell to £44.5 billion in the first quarter, down 14% year on year, while the saving ratio slipped below 9%.

The resilience is uneven. Higher-income households continue to support spending on travel, leisure and premium products, while families with lower incomes remain more exposed to food, energy, housing and employment pressures.

Why it matters: Consumer spending is supporting revenue, but businesses should not assume present demand will continue if household savings diminish or energy costs remain high.

Summer slowdown affects the property market

Property sales were 9% lower in July than a year earlier, according to Zoopla. Mortgage rates have risen from approximately 4% to 4.75%, adding more than £1,500 a year to average homebuying costs.

Political uncertainty and distractions including the World Cup were also cited as reasons for lower buyer activity.

Stamp duty relief proposed for older homeowners

A housing commission convened by Radix Big Tent has called for first-time buyer-style stamp duty relief to be extended to people aged over 65. The proposal is intended to encourage downsizing and release larger family homes onto the market.

The commission estimates that the measure could return as many as 870,000 homes to the market. It said people aged over 60 hold more than half of UK housing wealth and around 70% of over-65s live in homes with spare bedrooms.

The Government has ruled out changes to stamp duty in the forthcoming Budget.

Tax & Government

Social care reform may require difficult tax decisions

Prime Minister Andy Burnham has launched a nine-month national conversation on social care and declined to rule out tax rises to support reform. He said the Government would first seek to make better use of existing budgets and recommitted not to increase income tax, national insurance or VAT.

Baroness Casey’s review will now report next summer rather than in 2028. A public consultation is expected to conclude in April 2027, with funding options to follow before final reforms are developed.

The pressure on social care is also affecting the NHS. In June, an average of 13,600 medically fit patients a day remained in hospital because suitable adult social care was unavailable.

Shadow health secretary Stuart Andrew said reform must be supported by a credible, fully funded plan and achieved without increasing tax.

Metro mayors consider tax rebates

Proposed devolution reforms could give regional mayors a share of locally raised income tax and greater control over business rates. Many mayors are expected to use additional funding for infrastructure and public services.

Conservative and Reform mayors, including Tees Valley’s Ben Houchen, are also exploring rebate schemes that could return some locally raised revenue to residents.

Yorkshire businesses unprepared for Making Tax Digital

Research from Lloyds found that 57% of small businesses in Yorkshire are unprepared for the forthcoming Making Tax Digital for Income Tax deadline.

Eligible taxpayers will be required to keep digital records and submit quarterly updates using compatible software. The survey also found that 94% of respondents would find it useful to manage tax records through their banking application.

Industry & Investment

R&D tax reforms reduce innovation spending

Research by RCK Partners found that more than 60% of businesses surveyed had reduced R&D investment following reforms to the UK tax credit system.

Around one-third said they had hired fewer employees, while one in five had cancelled projects.

£8.4 billion investment planned for Dreadnought programme

Andy Burnham is expected to announce £8.4 billion of investment in the BAE Systems-led Dreadnought submarine programme. The funding forms part of the £63 billion allocated to the UK’s nuclear deterrent.

The programme is expected to support approximately 22,000 apprentices through 2035, alongside a new apprenticeship initiative intended to help young people access skilled employment.

Rolls-Royce upgrades guidance again

Rolls-Royce raised its full-year guidance for a second time. It now expects adjusted operating profit of between £4.7 billion and £4.9 billion, with free cash flow of up to £4 billion.

First-half revenue increased 21% to £11.45 billion, from £9.49 billion a year earlier. Pretax profit fell to £1.93 billion, although the previous year included a substantial disposal gain.

The group is benefiting from demand for widebody aircraft engines, higher European defence spending and investment in data centres supporting artificial intelligence.

Greggs beats expectations and moderates investment plans

Greggs reported pretax profit of £76 million for the 26 weeks to 27 June, up 20% from £63.5 million. Revenue rose 7.2% to £1.10 billion, while operating profit increased 23% to £86.5 million.

The figures exceeded consensus expectations, supported by grocery growth, strong cost control and the timing of inflationary pressures. Greggs is nevertheless paring back its capital expenditure plans. Its share price rose 18.5% to 2,009p.

Shell benefits from higher energy prices

Shell reported adjusted second-quarter earnings of $9.84 billion, ahead of the analyst consensus of $8.79 billion and its own company-compiled forecast of $8.92 billion.

The result was supported by higher oil and gas prices as conflict in the Middle East lifted energy markets.

Lloyds announces further share buyback

Lloyds Banking Group maintained its annual targets and announced a further £1 billion share buyback as it introduced its longer-term Accelerate 2030 strategy.

Second-quarter pretax profit rose 14% to £2.27 billion, while net income increased 9.7% to £4.96 billion.

Bank of England examines exposure to Asian equities

The Bank of England is investigating investment banks’ growing exposure to Asian equities. Its concerns include concentrated positions in companies linked to artificial intelligence and the potential for client defaults.

Technology & Global Business

Microsoft cloud and AI demand drive record revenue

Microsoft reported quarterly revenue of $90.01 billion, ahead of the $87.62 billion expected by analysts. Profit increased 31% to $35.8 billion.

Azure grew 43% at constant currency, exceeding the StreetAccount estimate of 40.2%. Microsoft also said Azure generated more than $100 billion of revenue during fiscal 2026, the first time it had passed that threshold.

Meta results prompt cautious market response

Meta reported revenue growth of 28% to $60.8 billion, while second-quarter profit fell 14% to $15.9 billion.

Earnings of $6.18 per share missed estimates by $1.04. Meta forecast third-quarter revenue of between $61 billion and $64 billion, with the lower end below the $63.15 billion consensus. Its shares fell around 10% in after-hours trading.

Samsung reports sharp increase in semiconductor profit

Samsung Electronics reported a 1,814% year-on-year increase in second-quarter operating profit. Revenue rose 130%, supported by demand for AI-related chips and technology.

Arm exceeded quarterly expectations but warned that income from smartphone chips is likely to decline. Qualcomm is already facing weaker smartphone demand, with quarterly net income down 25% year on year.

EU to investigate FIFA commercial venture

The European Union will investigate FIFA’s plan to raise $4.2 billion by selling stakes in a new entity called FIFA Forward Enterprise.

The business would consolidate broadcasting, sponsorship, ticketing, licensing and commercial operations relating to FIFA competitions, including the men’s and women’s World Cups. The plan requires approval from FIFA’s member associations.

EU sport commissioner Glenn Micallef described the continued commercialisation of football as corrosive.

“Mr Brexit” strategist leaves London for Dubai

Jordan Rochester is leaving Mizuho after nearly two years as its London-based head of fixed income strategy and is expected to take a position in Dubai.

Rochester built his reputation through extensive analysis of Brexit’s impact on sterling and UK markets. His departure highlights Dubai’s growing appeal to hedge funds, fintech businesses, family offices and international financial professionals.

Retail & Consumer

Consumer resilience remains dependent on savings

Private-sector activity expanded strongly in July, helped by World Cup-related spending and domestic holidays. Higher-income households remain particularly important, with the wealthiest 20% accounting for around 40% of consumer expenditure.

However, petrol prices remain close to 158p per litre, and weaker hiring and modest wage growth may limit how long households can maintain spending by drawing down savings.

UK Weather Outlook

Thursday will be warmest across southern and central England, with London reaching approximately 27°C, Cardiff around 23°C and Birmingham around 21°C. Northern England, Scotland and Northern Ireland will be cooler, generally between 17°C and 20°C, with more cloud and a risk of occasional showers.

The weekend should remain largely dry and settled across much of England and Wales, with temperatures reaching the mid-to-high 20s in the South East. Scotland and Northern Ireland are expected to remain cooler and more changeable, with some rain or showers possible.

For hospitality, retail, leisure and tourism businesses, settled weather may support weekend trade, although the benefit is likely to vary significantly by region.

Global Market Summary

Global markets were unsettled by a combination of renewed US strikes on Iran, higher energy prices, a divided Federal Reserve and continued concern about the scale and profitability of artificial-intelligence investment.

Wall Street suffered its weakest Federal Reserve decision-day performance since December 2024. Asian markets were mixed overnight, while UK and European shares opened mostly higher on Thursday morning as strong Microsoft results and better eurozone economic data provided some support.

UK and European markets

The FTSE 100 rose 0.54% to 10,967.07 in early Thursday trading, extending its relative strength after closing at a record high on Wednesday. The index continued to benefit from its large weighting in oil, mining and other resource companies, which gained as energy prices rose.

The Euro STOXX 50 increased 0.62% to 6,287.35, while the CAC 40 gained 0.82% to 8,477.53. The DAX was broadly unchanged, slipping 0.02% to 25,456.57.

European markets were supported on Thursday morning by stronger-than-expected economic data. Germany, France, Italy and Spain all recorded economic growth during the second quarter, with Spain expanding by 0.7%. However, investors remained cautious ahead of the Bank of England’s interest-rate decision and because of further military escalation in the Middle East.

United States

US equities fell sharply after the Federal Reserve held its benchmark interest rate at 3.5% to 3.75% by a vote of nine to three. Three policymakers supported a quarter-point increase, reflecting concern that inflation remains too high.

Markets initially rose following the decision but reversed during Fed chair Kevin Warsh’s press conference. Investors were unsettled by the lack of a clear indication about when the central bank might act against inflation.

The Dow Jones fell 2.19% to 51,594.14, its largest one-day fall since April 2025.

The S&P 500 declined 1.52% to 7,316.15, its lowest close in seven weeks and its largest daily fall since mid-June.

The Nasdaq Composite fell 1.74% to 24,442.94. The separate Nasdaq 100 declined by around 2.1%, leaving it approximately 11% below its June peak and in technical correction territory.

The Philadelphia Semiconductor Index also suffered its fifth consecutive decline as investors continued to question the sustainability of AI-related spending.

Long-dated government bonds sold off alongside equities. The yield on the 30-year US Treasury rose to almost 5.23%, its highest level in 19 years, indicating that investors expect inflation and interest rates to remain elevated.

US stock futures recovered modestly on Thursday morning, with S&P 500 futures up approximately 0.2% and Nasdaq 100 futures up 0.3%, supported by Microsoft’s stronger-than-expected cloud results.

Asian markets

Asian markets finished mixed as an early rebound in technology shares lost some momentum.

The Nikkei 225 rose 0.71% to 61,867.43, helped by strong corporate earnings and gains in semiconductor-testing company Advantest.

The Hang Seng increased 0.20% to 25,858.88, reversing earlier losses.

Mainland Chinese shares remained under pressure. The CSI 300 fell 1.10% to 4,549.72, while the Shanghai Composite declined around 0.6% as AI and technology shares continued to retreat.

South Korea’s Kospi rebounded around 2.2% following two sessions of extreme selling, although concern over leveraged trading and elevated AI valuations remained.

The broader pattern in Asia suggests investors are beginning to rotate away from highly valued technology companies and towards financial and more defensive shares.

Market drivers

The principal market drivers were:

• Federal Reserve policy: Rates were held at 3.5%–3.75%, but three dissenters favoured an increase.
• Middle East conflict: Further US strikes on Iranian targets increased concern about energy supply and prolonged military escalation.
• Oil and gas prices: Higher energy prices increased expectations that inflation could remain elevated.
• AI and semiconductor valuations: Strong company profits were not enough to prevent further selling in some highly valued technology shares.
• Corporate earnings: Microsoft’s results reassured investors that AI and cloud investment is producing revenue, while Meta’s guidance caused concern about rising costs and slower advertising growth.
• Bond-market pressure: The rise in long-term US yields added pressure to company valuations and borrowing costs.
• European growth: Better eurozone GDP figures helped support European markets on Thursday morning.

Currencies

The US dollar weakened following the Federal Reserve’s decision as investors reduced expectations of an immediate rate increase. However, safe-haven demand linked to the Middle East conflict limited the decline.

Sterling recovered against the dollar after the Fed announcement but remained sensitive to the Bank of England’s rate decision.

The euro moved above $1.14 against the dollar, supported by the Fed decision and stronger-than-expected eurozone growth data.

Commodities

Brent crude traded at approximately $92 a barrel on Thursday morning after rising almost 8% on Wednesday. It moved above $90 following renewed US strikes on Iran and attacks affecting regional energy infrastructure.

West Texas Intermediate crude remained above $85 a barrel, although it eased by more than 1% overnight after its earlier surge. Some shipping activity through the Strait of Hormuz appeared to resume, including Qatar’s first LNG shipment through the route in three weeks.

European natural gas traded close to €60 per megawatt-hour, around 40% higher during July, reflecting concern about regional energy supplies.

Gold received some support from geopolitical risk and the weaker dollar, but higher US Treasury yields limited gains. No verified gold price or percentage movement was supplied.

Copper inventories at the London Metal Exchange fell by 6,900 tonnes to 255,400 tonnes, suggesting tighter near-term availability.

Wheat prices also rose following attacks on cargo ships near Ukrainian Black Sea ports, creating fresh uncertainty over agricultural exports.

Why markets matter to SMEs: Rising oil and gas prices can quickly increase fuel, transport, manufacturing and supplier costs. Higher government-bond yields may also keep business borrowing expensive, while sharp movements in technology shares can reduce investment confidence. Businesses selling on credit should monitor customers in energy-intensive, transport, construction, retail and technology sectors particularly closely, as market volatility may affect both margins and payment behaviour.

Insolvency Watch

Administrations (2)

• E5 LIVING (WJP) LTD
• EAST STUDDAL NURSERIES LIMITED

Liquidations (12)

• EVENTFLOW LTD
• IC FINANCIAL PLANNING LIMITED
• LAYER DATA LTD
• MH INTELLIGENCE (UK) LTD.
• MONOJACK LTD.
• PAC-TEC SOLUTIONS LTD
• RPN FINANCE LIMITED
• SHEEPS END LIMITED
• SUPA 9 LIMITED
• TERRY ANDERSON BUILD LIMITED
• THREE SIGMA TECHNOLOGIES LTD
• WEBSENSE SC HOLDINGS LIMITED

Keeping cash moving through uncertain conditions

Today’s news shows that economic resilience can coexist with growing financial risk. Consumers are still spending, major companies are investing and inflation has fallen, but households are using savings, borrowing remains expensive and energy prices are increasing again.

Businesses that sell on credit should review customer limits, monitor changes in payment behaviour and act quickly when invoices become overdue. A customer that previously paid reliably may now be managing higher mortgage, wage, energy or financing costs.

CPA supports Members through CreditCare credit reports, debtor monitoring, structured credit control support and overdue account recovery. Our approach is ethical, professional and designed to improve payment performance while preserving valuable customer relationships.

Call CPA on 020 8846 0000 during business hours, Monday to Friday, 9am to 5pm.
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Visit https://cpa.co.uk/contact-us/

When you see your money come in, you will be so glad you used CPA.

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