UK Business News Today: 30 September 2026 | Economy, Markets & Insolvencies
The final day of September brings a useful moment for businesses to look beyond the headlines and at what has actually happened to cash during the month. UK economic growth has been revised higher, but the picture facing SMEs as October begins is more challenging: government and commercial borrowing costs are elevated, household debt is climbing, housing activity is weakening and energy and fuel remain expensive. For businesses selling on credit, that combination matters because customers can still be trading and ordering while simultaneously becoming slower to pay..
James Salmon, Operations Director.
Key Developments
- UK GDP growth in Q2 has been revised up to 0.5%, confirming a stronger first half of 2026.
- Britain’s 10-year borrowing costs have reached their highest level since 1999, adding to pressure on the public finances and wider financing conditions.
- Consumer borrowing increased by £2.46bn, while credit card lending recorded its fastest rise since 2004.
- Housing pressure is building, with mortgage approvals at their lowest since 2023 and annual house-price growth slowing to 0.8%.
- Oil flows from the Middle East are recovering, but crude, diesel and wider energy costs remain an important risk as businesses close September and plan October.
Economy & Policy
UK economy grows faster than previously estimated
The UK economy expanded by 0.5% in the second quarter, an upgrade from the initial 0.4% estimate and following 0.6% growth in Q1. Annual growth was also revised higher to 1.4%, although the estimate for full-year 2025 growth was reduced to 1.2%.
Consumers continued spending during the first half, while the household saving ratio increased by 0.2 percentage points to 8.8%. Sterling strengthened following the GDP figures, although the outlook is becoming more difficult as higher energy prices and borrowing costs feed through to businesses and households.
Why it matters: Stronger growth is welcome, but SMEs extending credit should pay at least as much attention to current customer cashflow as backward-looking GDP figures, particularly as September closes with financing and operating costs rising.
UK borrowing costs reach their highest since 1999
Britain agreed to pay 5.38% to borrow £4.25bn for 10 years, the highest rate on 10-year government debt since 1999. Higher gilt yields increase the cost of servicing the UK’s near-£3tn national debt and reduce the Government’s room for manoeuvre ahead of the 28 October Budget.
Citi economist Jamie Searle estimated that higher borrowing costs alone could reduce almost £24bn of fiscal headroom by around £8.2bn, before changes to other economic forecasts are considered.
Why it matters: Higher government borrowing costs can feed into wider financing conditions and may also restrict the scope for measures designed to support businesses or consumers.
Tax & Government
Burnham sets out wider economic and public-service reforms
Prime Minister Andy Burnham used Labour’s conference to set out plans covering social care, pensions, utilities, housing, electoral reform and the UK’s future relationship with Europe. Labour says it will seek a new relationship with the EU and increase public control over areas including water, housing and energy, while a new publicly owned Great British Grid is intended to increase competition and accelerate business connections. The Labour Party
The Government has also confirmed changes to the state pension system from April 2030. The present triple lock will remain until then, after which pensions will rise by at least inflation or 2.5%, with an additional mechanism designed to maintain their value relative to average earnings over time. The Government estimates the adjustment could reduce annual state-pension spending by around £15bn by the end of the 2030s, with savings intended to contribute towards a National Care Service. GOV.UK
Why it matters: For SMEs, the immediate issue is less the political positioning than what future changes to tax, public spending, energy and regulation ultimately mean for business costs and customer disposable income.
Labour members favour higher tax and public spending
A YouGov survey of 781 Labour Party members found 64% believe the Government currently taxes too little and spends too little on public services, compared with 9% who believe tax and spending are too high. When asked about filling gaps in the forthcoming Budget, 62% preferred tax rises, compared with 12% favouring spending cuts and 10% greater borrowing. YouGov
The poll measures Labour members rather than the wider electorate: YouGov reported that among the wider British public, 43% believed the Government taxes and spends too much and 21% thought the opposite. YouGov
Why it matters: Businesses should watch the October Budget closely for changes affecting employment costs, investment, disposable incomes and the financial position of customers.
Retail & Consumer
Consumer borrowing jumps by £2.46bn
UK consumer borrowing increased by £2.46bn last month, the largest rise since 1993. Credit card lending alone increased by £1.18bn, its fastest increase since 2004.
Separately, a PwC survey found just 35% of workers could afford savings, holidays and other discretionary spending after essential bills, down from 45% a year earlier. Some 59% said cost-of-living pressures were creating strain at work.
Why it matters: Rising reliance on consumer credit is an important warning for businesses because pressure on household finances can eventually weaken demand and affect payment behaviour throughout consumer-facing supply chains.
Mortgage approvals fall to their lowest since 2023
Mortgage approvals for house purchases fell to 54,900 in August, from 55,900, their lowest level since December 2023. Net mortgage borrowing nevertheless increased to £4.4bn from £4.1bn.
The average interest rate on outstanding mortgages has doubled from around 2% in December 2021 to 4% in August 2026, increasing the amount of household income committed to housing costs.
House-price growth slows to 0.8%
UK house prices increased by just 0.8% over the past year, according to Zoopla, the weakest growth in two years. The number of homes for sale is 5% higher than a year ago while agreed sales are 9% lower, leaving the largest stock of unsold homes in 12 years.
Typical monthly mortgage repayments have risen by around £150 since the beginning of the year, and Zoopla expects house prices to increase only 0.5% during 2026.
Energy & Costs
Middle East oil flows move closer to pre-war levels
Crude shipments from the Middle East have recovered significantly despite continued shipping risks. JPMorgan estimates crude flows at 17.5m barrels a day, around 98% of pre-war levels, although flows of products such as diesel and petrol remain at only around 58%.
Goldman Sachs estimates Persian Gulf oil exports reached 23.3m barrels a day over the latest week and assesses the global oil market as roughly balanced in September.
The recovery has helped oil retreat from recent highs, although the latest market data still puts Brent above $100 a barrel. Pasted text
Industry & Investment
FTSE 100 chief executive pay rises 16%
Median remuneration granted to FTSE 100 chief executives increased 16% to £6.1m, according to Diligent Market Intelligence. Long-term incentives accounted for more than 54% of executive packages, compared with 52% previously.
The increase reflects efforts by major UK companies to compete with US remuneration, where median S&P 500 CEO pay increased 8% to $18.2m.
For SMEs, the wider relevance is the continuing competition for senior skills and the growing divergence between remuneration structures at the largest companies and those available to smaller employers.
Robinhood plans weekend trading
Robinhood is seeking regulatory approval to allow certain US assets to trade 24 hours a day, seven days a week, extending the trend towards near-continuous financial markets. The London Stock Exchange and Nasdaq are also considering longer trading hours.
While primarily a financial-markets development, it illustrates how technology continues to change expectations around the speed and availability of financial services.
Goldman Sachs considers succession
Goldman Sachs’ board has reportedly discussed President and Chief Operating Officer John Waldron succeeding David Solomon as chief executive, potentially as early as next year, with Solomon moving to executive chairman.
The development is principally a major corporate governance story rather than a direct SME issue, but comes as financial institutions navigate volatile markets and a rapidly changing technology and regulatory environment.
Manchester City found guilty of serious financial-rule breaches
An independent Premier League commission has found Manchester City guilty of serious financial-rule breaches over nine seasons and of most charges relating to failure to cooperate with the League’s investigation. The commission found that commercial arrangements were used to inflate revenues and reduce costs by more than £900m, with the club filing misstated accounts and concealing the true state of its finances from auditors and regulators. Premier League
Sanctions are to be considered separately. Premier League
The case is far removed from everyday SME credit control, but the underlying business principle is familiar: reliable accounts and transparent financial information matter when assessing the financial strength of any organisation.
Global Market Summary
Markets enter the final day of September with some relief from two of the month’s biggest pressures: oil prices have eased from their recent highs and US Treasury yields have pulled back slightly. Nevertheless, both remain elevated and geopolitical uncertainty continues to influence investor sentiment.
UK and Europe: The FTSE 100 was 10,675.72, up 0.37%, helped by the stronger UK GDP revision. The STOXX Europe 600 was 639.97, up 0.30%, while the Euro STOXX 50 was 6,325.32, up 0.08%. Germany’s DAX stood at 25,402.49, up 0.01%, while France’s CAC 40 slipped 0.25% to 8,016.08, with French inflation adding to interest-rate concerns.
United States: Tuesday produced a mixed session. The S&P 500 fell 0.17% to 7,670.84, while the Dow Jones fell 0.26% to 51,349.92. The supplied market data reports the technology-heavy Nasdaq 100, rather than the Nasdaq Composite, rising 0.21% to 30,339.33, helped by technology and semiconductor shares.
Asia: Markets rebounded. Japan’s Nikkei 225 climbed 1.94% to 66,753.72, while Hong Kong’s Hang Seng rose 0.37% to 24,613.27. China’s official manufacturing PMI also returned to expansion at 50.1, although the market response to Beijing’s latest stimulus measures was relatively restrained.
Market drivers
US Treasury yields have been a major influence throughout September. The 10-year yield reached 5.29% intraday on Tuesday before easing to around 5.21%, while the 30-year yield reached its highest level since 2002. Middle East tensions remain another significant source of uncertainty, although recovering Saudi pipeline capacity has helped restore regional oil flows and reduce immediate supply concerns.
Currencies
Sterling strengthened following the upward revision to UK GDP. GBP/USD traded at 1.3268, up 0.27%, while GBP/EUR stood at 1.1687, up 0.17%. The broader dollar remains on course for its strongest month since June, supported by elevated US yields and expectations around Federal Reserve policy.
Commodities
Brent crude traded at $103.64 a barrel, up 1.02% on the day, partially recovering after Tuesday’s 2.8% fall. WTI was $90.23, up 0.95%, while gold stood at $4,188.73 an ounce, up 0.15%. Oil remains substantially influenced by Middle East supply conditions, while gold is caught between geopolitical uncertainty and the pressure of elevated bond yields.
For UK SMEs, the practical message is that September ends with some improvement in market sentiment but no return to cheap energy or cheap money. That remains important for margins, financing costs and customer payment behaviour.
Insolvency Watch
Administrations (1)
Liquidations (14)
- AUDEMARS PIGUET (SLOANE STREET) UK LIMITED
- FOCUS ON SOUND LTD
- GOODINGTON LTD
- IACTA ALEA LTD
- MCMAHONS POINT CAPITAL LIMITED
- MONKWELL INNS LIMITED
- NEW HIVE PROJECTS LIMITED
- O MUSIC LIMITED
- PRACTICE MANAGEMENT & DEVELOPMENT LTD
- RAVENSCOURT DENTAL PRACTICE LIMITED
- RIFF LONDON LIMITED
- RUMAX CONSULTING LIMITED
- STOCKTON HEATH CAR SALES LIMITED
- TOWER GEOMATICS LTD
Winding-up Petitions (2)
- E678 GROUP LIMITED
- GODFATHER RESTAURANT LIMITED
What month-end tells you about your cashflow
The last day of the month has a habit of making the position clearer.
Sales may have been good. Orders may be healthy. September may even look profitable on paper. But for a business selling on credit, the question that matters today is simpler: how much of the money you expected to receive in September actually arrived?
Invoices that were merely “not due yet” a few weeks ago may now be overdue. A customer who normally pays reliably may have started stretching terms. And with borrowing, energy and household costs rising, October could place further pressure on businesses already managing tight working capital.
That makes month-end a sensible time to review aged debt, identify changes in customer behaviour and act early rather than allowing overdue balances to become established.
CPA can help businesses use CreditCare credit reports and debtor monitoring to identify changing customer risk, strengthen credit-control processes and improve payment performance.
Where invoices become overdue, CPA can support recovery through the professional and considerate approach of its Overdue Account Recovery Service, designed to secure payment 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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