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

UK business news today is led by a mixed economic picture: Q1 growth held up better than expected, but households saved less, real disposable incomes fell and business investment remained weaker year-on-year. Andy Burnham’s first major policy speech pointed to a more interventionist and regionally focused government agenda, while employment costs, tariff threats, housing market weakness and lingering inflation concerns all added to the pressure facing SMEs. For businesses selling on credit, the message is clear: demand may still be moving, but customer cashflow, payment behaviour and insolvency risk need close attention.

James Salmon, Operations Director.

Key Developments

• UK GDP growth was confirmed at 0.6% in Q1, but annual growth was revised lower and business investment remained down year-on-year.
• Andy Burnham pledged to “rewire Britain” through devolution, regional growth plans, public control of utilities and a major council housebuilding programme.
• Retail and hospitality workers are seeing reduced hours as employers respond to higher labour costs.
• UK exporters face renewed uncertainty after Donald Trump threatened 100% tariffs on countries with digital services taxes.
• Insolvency notices included 3 administrations, 28 liquidations and 1 winding-up petition.

Economy & Policy

UK economy grows 0.6% in Q1, but underlying pressures remain

The UK economy expanded by 0.6% in the first quarter of 2026, unchanged from the preliminary estimate and a clear acceleration from 0.1% growth in Q4 2025, which was revised down from 0.2%. Annual GDP growth was revised to 0.9%, down from the previous estimate of 1.1%. Private consumption rose 0.6% quarter-on-quarter, government spending increased 1.3%, gross fixed capital formation rose 0.4%, exports edged up 0.2% and imports rose 1.4%. Business investment increased 0.9% quarter-on-quarter, but remained 1.3% lower year-on-year, while the current account deficit stood at £22.1bn.

Why it matters: Growth is welcome, but weaker business investment and a sizeable current account deficit suggest SMEs should remain cautious about demand, costs and customer payment resilience.

Household savings fall as consumers keep spending

The household saving ratio fell to 8.9% in Q1, down from 9.6% in the previous quarter, as Britons continued spending despite pressure on living standards. The fall was driven by higher spending on housing, utilities, restaurants and hotels. Real household disposable income per head fell 0.8%, while final consumption expenditure rose 1.4%, suggesting households smoothed through weaker incomes by spending more of what they earned or saved. The current account deficit excluding precious metals narrowed to £15.1bn, or 1.9% of GDP, its lowest level since the end of 2021.

Why it matters: Consumer spending can support turnover in the short term, but falling real incomes and lower savings may increase late payment risk for businesses serving households or consumer-facing sectors.

Burnham pledges to “rewire Britain” through regional devolution

Andy Burnham used his first major policy speech in Manchester to promise a major transfer of power away from Westminster. He pledged to create a new “No. 10 North” office in Manchester, devolve more fiscal powers, support every region to develop credible industrial ambitions and oversee what he called the biggest rebalancing of power the country has seen. Burnham also promised more public control over utilities, more local-government funding, reform of business taxes to support pubs and high street firms, and the biggest council housebuilding programme since the post-war period. He said he would maintain sound public finances and stick to existing fiscal rules, which helped limit market reaction.

Why it matters: Regional investment and high street support could benefit SMEs, but businesses will need clarity on tax, procurement, infrastructure and spending plans before they can judge the impact on costs and cashflow.

Burnham signals more intervention but offers limited detail

Burnham described Britain as “stuck in a rut” and said output was being held back by a stark imbalance between national and local government resources. He promised a more collaborative approach to government, greater involvement for backbench MPs, a renewed focus on technical education and support for sovereign manufacturing in sectors such as steel, defence, energy, food and farming. He also pledged to reduce the welfare bill in a “fair and lasting” way. However, he took no questions and gave few details on ministerial appointments or delivery mechanisms, with analysts warning that markets will watch the next stage closely.

Retail & Consumer

Retail and hospitality jobs squeezed by higher employment costs

More than 300,000 retail and hospitality workers are unable to secure the hours they want as employers respond to rising labour costs by freezing recruitment and cutting shifts. The report found 8.5% of workers in the sectors are now underemployed, representing around £3.6bn in lost earnings. Industry groups linked the trend to higher employer National Insurance contributions and wider regulatory pressures, with more than 150,000 jobs lost across retail and hospitality over the past year. The Resolution Foundation has argued for more apprenticeship funding and targeted youth job grants rather than reversing employment tax increases.

Food inflation eases as supermarket competition bites

Food inflation slowed in June as supermarket competition and strong seasonal produce supplies helped ease pressure on grocery bills. British Retail Consortium figures showed food inflation falling to 2.4% year-on-year, down from 2.7% in May, with fresh food inflation also moderating. Discounts on summer products, including ice cream and strawberries, alongside a bumper strawberry crop, helped drive the slowdown. This gives households some relief, although broader living costs remain elevated.

Housing & Construction

Mortgage borrowing falls to lowest level in 18 months

UK mortgage borrowing fell to £2.9bn in May, down from £4.4bn in April, marking the lowest level in 18 months. The weaker lending data weighed on UK housebuilders, with Persimmon and Barratt Redrow both down almost 2.5%. Aggregates supplier Breedon also fell sharply, down 15p. The figures point to caution in the housing market at a time when interest rates, affordability and confidence remain key constraints.

Tax & Government

Homeworking tax relief axed for 300,000 workers

The abolition of homeworking tax relief is expected to affect around 300,000 remote workers from the 2026/27 tax year. The change is expected to save the Treasury £115m over five years, but basic-rate taxpayers could face a £62 increase and higher-rate taxpayers £124, according to Clair Williams of Azets. She also warned that the removal of relief may push some employees into higher tax brackets because of fiscal drag.

Taxpayers urged to check for HMRC refunds

Taxpayers have been urged to check whether they are owed money by HMRC after analysis found 730,000 PAYE refunds averaging £855 each went unclaimed last year. The total value of unclaimed refunds was £624m. The Institute of Chartered Accountants in England and Wales said many individuals wrongly assume refunds are processed automatically.

Interest Rates & Inflation

Huw Pill warns against inflation complacency

Huw Pill, chief economist at the Bank of England, warned against complacency on inflation. He has voted to raise interest rates to 4% in recent Monetary Policy Committee meetings, citing concern that inflation remains above the Bank’s 2% target. Pill noted that CPI inflation was 2.8% in both April and March, saying this should be seen as problematic because the Bank’s mandate is inflation at 2% at all times. His comments point to ongoing caution inside the Bank, even as lower oil prices may reduce some inflation pressure.

Why it matters: Higher-for-longer interest rate expectations can keep borrowing costs elevated, tighten cashflow and make overdue invoices more damaging for SMEs.

International & Trade

Trump tariff threat rattles UK exporters

US President Donald Trump threatened to impose 100% tariffs on countries with digital services taxes, raising concern among British exporters. The UK’s 2% Digital Services Tax raises around £800m annually from large technology firms including Google and Amazon. William Bain, head of trade policy at the British Chambers of Commerce, warned that retaliatory tariffs could harm both UK and US businesses and cost tens of billions. Businesses are urging both governments to avoid escalation ahead of the 24 July deadline.

Yen falls to 40-year low as intervention risk rises

The yen slid to a 40-year low of around 162 against the dollar. Although the Bank of Japan raised interest rates to 1% earlier this month, Japanese rates remain below those of other major central banks, especially the Federal Reserve. A weak yen supports exporters but hurts households already squeezed by inflation, and Japan’s finance minister hinted at possible intervention. The move adds to wider currency volatility as markets reassess global interest rate expectations.

Industry & Business

W.I.S.E. Underwriting collapses into administration

W.I.S.E. Underwriting Agency Ltd, a long-standing London insurance firm, entered administration and ceased trading. Administrators from FRP Advisory have been appointed to oversee the company’s affairs. The collapse comes amid disruption in marine insurance linked to geopolitical tensions in the Gulf region. The company also appeared in the day’s London Gazette administration notices.

Sport & Business Mood

World Cup knockout shocks bring a human note to business confidence

There was major World Cup drama overnight as Brazil beat Japan 2–1 in the Round of 32, Germany were knocked out by Paraguay after a 1–1 draw and 4–3 penalty defeat, and Morocco eliminated the Netherlands after a 1–1 draw and 3–2 win on penalties. Morocco now face Canada on 4 July, while Brazil await the winner of Ivory Coast v Norway. Today’s fixtures continue with Ivory Coast v Norway, France v Sweden and Mexico v Ecuador.

Why it matters: Major sporting events can lift hospitality, retail and leisure spending, but short-term demand spikes still need careful staffing, stock and credit control.

Global Market Summary

Global markets entered the final trading day of Q2 in a broadly constructive mood, supported by easing oil prices, optimism around AI and signs that the US-Iran ceasefire is reducing immediate energy-market stress. The supplied market briefing shows European markets opening higher on Tuesday morning, with tech and industrials leading, while US futures were broadly steady and Asia completed a strong quarter.

Equities

• FTSE 100: Up around 0.3% in early trading, with miners recovering and Antofagasta up 2.3%.
• STOXX Europe 600: Up around 0.6% in early trading after closing almost flat on Monday, when it finished up 0.04%.
• DAX: Up around 0.9% in early trading, helped by industrials and a 4.6% rise in Siemens Energy.
• CAC 40: Up around 0.4% in early trading, although luxury names were soft. On Monday, the CAC 40 slipped 0.1%.
• S&P 500: Futures were broadly flat to +0.1%. The index is on track for a roughly 14% Q2 gain, its best quarter in six years.
• Nikkei 225: Up 0.9% to 70,062, capping a record quarterly gain driven by AI-related technology shares.
• Hang Seng: Down 0.6% to 22,881, weighed by Chinese bank stocks and weakness in Nongfu Spring.

Market drivers

The main driver was the easing of immediate energy-market stress following the US-Iran ceasefire and signs of resumed tanker traffic through the Strait of Hormuz. Oil has fallen sharply this quarter, helping reduce inflation fears and supporting risk appetite. However, uncertainty remains because Iran has continued to talk about controlling Hormuz traffic ahead of further talks.

AI remained another major support for equities. Asian markets were particularly strong, with Japan’s Nikkei boosted by technology shares and China’s CSI 300 up 1.1% as AI and chip stocks rallied. European investors also looked for AI-related exposure through banks, power infrastructure and industrials.

Central banks remained an important influence. Hawkish Federal Reserve repricing supported the dollar and added pressure to the yen, while French inflation falling back to the ECB’s 2% target helped reduce pressure on European rate expectations. In the UK, Huw Pill’s warning against inflation complacency kept attention on the possibility of tighter Bank of England policy.

Currencies

• GBP/USD: Sterling was slightly softer on Tuesday morning after being the best-performing G10 currency on Monday, when it gained around 0.4% against the dollar. Earlier logged data showed sterling around US$1.3250.
• GBP/EUR: A precise GBP/EUR level was not supplied. The euro was broadly under pressure, with EUR/USD around the 1.14 area and near a one-year low.
• USD/JPY: The dollar rose to around 162.17–162.40, a 40-year high against the yen, driven by interest-rate differentials and hawkish Fed repricing.

For UK SMEs, currency moves matter because they can alter import costs, export competitiveness and supplier pricing with little notice.

Commodities

• Brent crude: Around $73 per barrel, down roughly 30% this quarter, its biggest quarterly fall since 2020.
• WTI crude: Around $70 per barrel, near a four-month low.
• Gold: Around $4,020–$4,030 per ounce, after falling almost 2% on Monday and recovering around 0.4% on Tuesday.

Lower oil prices may ease pressure on transport, energy and input costs, but the level of geopolitical uncertainty means SMEs should avoid assuming fuel and shipping costs will remain benign.

Insolvency Watch

Insolvency Watch

Administrations (3)

• LH REALISATIONS LTD
• ONYX GROUP INTERNATIONAL LTD
• W.I.S.E. UNDERWRITING AGENCY LIMITED

Liquidations (28)

• 3 D INTERIORS LIMITED
• BAVARIAN SKY UK 5 PLC
• BLUE PALETTE PRODUCTIONS LIMITED
• BOSLAN ENGINEERING LIMITED
• BRASS NO.10 MORTGAGE HOLDINGS LIMITED
• BRASS NO.10 PLC
• BRASS NO.9 MORTGAGE HOLDINGS LIMITED
• BRASS NO.9 PLC
• CLUMPY LIMITED
• DIGITAL DETOX LTD
• DIGITAL DETOX VENTURES LIMITED
• GARFORTH PANEL BEATERS LIMITED
• GLOBAL STRUCTURE SERVICE LIMITED
• GOLDTHORN MARKETING LIMITED
• HIDDEN BADGER LIMITED
• JOST INVESTMENTS LTD
• LAKEVIEW COMMERCIAL FOUR LIMITED
• LAKEVIEW HOMES FOUR LIMITED
• LAKEVIEW MANAGEMENT FOUR LIMITED
• LAKEVIEW PROPERTIES FOUR LIMITED
• LAKEVIEW SERVICES FOUR LIMITED
• MJB PROPERTIES ONE LIMITED
• MJB PROPERTIES TWO LIMITED
• POLI-CHROME ENGINEERS (MOULDS) LIMITED
• SHEPRETH DEVELOPMENT LTD
• SIGPROC LTD
• SOUTHCOURT LTD
• VCP VII B SPV LIMITED

Winding-up Petitions (1)

• INDIGOSCOTT GROUP LIMITED

Keeping cash moving when confidence is uneven

Today’s news points to an economy that is still growing, but not evenly. Consumers are spending more while saving less, employment costs are squeezing retail and hospitality, housing activity has weakened, exporters face tariff uncertainty and insolvency notices remain active. For SMEs that sell on credit, this is exactly the kind of environment where sales can look healthy while cashflow quietly tightens.

CPA helps businesses protect cashflow through ethical, practical credit management support. CreditCare credit reports can help assess risk before credit is extended. Debtor monitoring can alert businesses to changing circumstances. CPA’s overdue account recovery and credit control support can help improve payment performance 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 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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