UK Business News Today: 4 November 2026 | Economy, Markets & Insolvencies

All eyes may be on Washington this morning as the world digests a dramatic US midterm election result, but for Britain’s business owners, the more pressing questions are much closer to home. Will the Bank of England raise interest rates tomorrow? How much more expensive will it become to employ people? And what happens to customer spending and payment behaviour if household finances come under further pressure? American politics may be moving global markets, but it’s the decisions made here in Britain that could have the greatest impact on SME cashflow in the weeks ahead. Higher borrowing costs, rising employment expenses and stubborn inflation are already giving businesses plenty to think about. And for companies selling goods or services on credit, there’s another concern: customers who have always paid reliably may increasingly need longer to settle their invoices.

James Salmon, Operations Director.

Key Developments

• Interest rate decision approaches: Economists are calling for the Bank of England to raise rates from 3.75% to 4% tomorrow as September inflation reaches 3.5%.
• Employment costs continue climbing: The annual cost of employing a minimum-wage worker has increased by up to 31% since Labour took office, according to the Centre for Policy Studies.
• US elections move global markets: Democrats have gained control of Congress, triggering shifts in equities, currencies, gold and oil prices.
• Household finances remain under pressure: Savills forecasts falling house prices in 2027, while rising government debt interest costs add to concerns about living standards.
• Credit risk deserves closer attention: Higher borrowing costs and stretched budgets could lead to slower customer payments, even among previously dependable customers.

Economy & Policy

Bank of England faces calls to raise interest rates to 4%

For UK businesses, tomorrow’s Bank of England decision could be considerably more important than anything happening in Washington.

The Times shadow Monetary Policy Committee has unanimously recommended increasing Bank Rate from 3.75% to 4%, which would represent the first rise in more than three years.

September inflation reached 3.5%, significantly above the Bank’s 2% target, with forecasts suggesting it could exceed 4% early next year. Rising energy costs and stronger-than-expected economic activity have strengthened arguments for tighter monetary policy.

Sir John Gieve, a former Bank of England deputy governor, said the economy was performing better than expected, although the outlook for inflation had deteriorated. KPMG’s chief UK economist Yael Selfin also highlighted the economy’s resilience, suggesting the slowdown in employment was not yet an immediate concern.

The Bank’s official rate remains 3.75%, with its next decision scheduled for Thursday 5 November. A rise is therefore a possibility, not a confirmed outcome. the UK’s central bank+2

Why it matters: Higher interest rates can increase borrowing costs for businesses and their customers, putting pressure on working capital and potentially encouraging customers to delay settling invoices as they prioritise their own financial commitments.

Government debt interest bill could reach £155bn

Britain’s growing public debt interest bill is adding another layer of pressure to the country’s financial outlook.

Ruth Curtice, chief executive of the Resolution Foundation, has warned that rising debt servicing costs are undermining household living standards.

According to the Office for Budget Responsibility projections cited in the report, government debt interest payments could reach £155bn in 2027/28, exceeding the education budget and placing significant demands on public finances.

Curtice argues that households are bearing much of the burden through taxation and reduced spending power, describing the outlook for living standards in particularly stark terms.

Why it matters: When households face higher taxes and weaker disposable income, businesses serving consumers may experience softer demand, potentially affecting revenue, customer confidence and payment performance.

House prices could fall in 2027 as mortgage pressures persist

The UK housing market may be facing an unusually prolonged period of stagnation.

Property adviser Savills expects house prices to remain broadly unchanged during 2026 before declining by 1.5% in 2027.

If realised, this would mark the first two consecutive years without house price growth since 1991/92.

Higher mortgage rates, inflation and the economic effects of the Middle East conflict are weakening affordability and buyer confidence.

Nevertheless, Savills does not anticipate a dramatic housing market correction. It forecasts a recovery as interest rates eventually decline, with property values projected to increase by 15.8% between 2027 and 2031.

Why it matters: A quieter housing market can reduce demand across construction, home improvements, furnishings, removals and professional services, making cashflow management particularly important for SMEs supplying these sectors.

Tax & Government

Rachel Reeves defends £66bn of tax increases

Former Chancellor Rachel Reeves has defended the tax increases introduced through her two Budgets, arguing they were necessary to strengthen the public finances and support investment in public services.

Speaking at Harvard University, Reeves said the combined £66bn of tax rises had helped establish a stronger fiscal buffer while shifting the tax system towards rewarding work.

She acknowledged that the decisions were controversial but maintained that they were necessary to move Britain away from what she described as a failed approach to austerity.

The comments come as businesses and households continue assessing the cumulative impact of higher taxation and operating costs.

Why it matters: Regardless of the policy arguments, businesses must manage the practical financial consequences of increased taxation, particularly where additional costs cannot easily be passed on to customers.

Landlords face additional £35,946 tax burden

Landlords could face a substantial increase in their long-term tax liabilities under the Government’s proposed changes to taxation of rental income.

Estimates suggest the measures could add £35,946 to a landlord’s tax bill over 25 years.

The proposals would increase the basic rate of tax on rental income from 20% to 24%, while higher-rate and additional-rate taxpayers would face rates of 44% and 49% respectively.

The National Residential Landlords Association has warned that the changes may encourage some property owners to leave the rental market. Official figures cited in the report suggest 31% of affected private landlords are retirees.

A reduction in rental supply could create additional housing affordability pressures if landlords withdraw properties from the market.

Why it matters: Higher housing costs can reduce the money consumers have available for other purchases, affecting the businesses that depend on their spending.

Voters sceptical about Budget’s economic impact

A City AM/Freshwater Strategy poll suggests many voters remain unconvinced that the recent Budget will significantly change Britain’s economic prospects.

Around 50% expect the Budget to make little difference, while 24% believe it will improve the economy and 22% expect conditions to worsen.

The Budget included more than £7bn in tax increases, while pressure continues on Chancellor John Healey to reconsider frozen income tax thresholds.

Some 53% of those surveyed supported adjusting tax thresholds in line with inflation.

For businesses, the wider question is whether fiscal policy will improve consumer confidence and create conditions that support sustainable investment.

Why it matters: Uncertain consumer confidence can influence spending decisions and make it harder for businesses to predict sales, stock requirements and incoming payments.

Carpetright founder urges wealthy entrepreneurs to support Britain

Lord Philip Harris, founder of Carpetright, has called on wealthy individuals who built their fortunes in Britain to remain in the country and contribute to its economic recovery.

He criticised billionaires who relocate overseas to avoid higher taxes and encouraged those who have already left to consider returning.

Harris argued that the UK needs successful entrepreneurs to continue contributing through taxation, investment and business activity.

The intervention adds to the continuing debate over whether higher taxes on wealth encourage investment or risk driving capital overseas.

FCA considers potential Budget information leak

The Financial Conduct Authority has indicated that it is prepared to act if evidence emerges of an unlawful disclosure of market-sensitive information ahead of the Budget.

Treasury Committee chairwoman Dame Meg Hillier raised concerns that information relating to possible bank tax changes may have entered the market prematurely, potentially influencing bank share prices.

FCA chief executive Nikhil Rathi said the Treasury and Cabinet Office were best placed to establish whether an unlawful disclosure had occurred.

Employment & Labour

Cost of employing minimum-wage workers rises sharply

The cost of employing staff continues to be one of the biggest challenges facing Britain’s smaller businesses.

According to the Centre for Policy Studies, the annual cost of employing a full-time minimum-wage worker has increased by £4,462, or approximately 20%, since Labour took office.

For employees aged 18 to 20, the increase is even greater at £4,859, equivalent to around 31%.

The think-tank attributes the increases to higher minimum wages and employer National Insurance contributions, estimating that employment costs have grown at approximately three times the rate of inflation.

Meanwhile, the figures cited in its analysis show that vacancies have declined by 162,000 and unemployment has risen by 276,000 over the period.

The organisation warns that rising employment costs could discourage recruitment, particularly among businesses considering taking on younger workers.

Why it matters: Payroll is a major fixed commitment for many SMEs. When employment costs increase, businesses have less flexibility to absorb delayed customer payments, making dependable cash collection essential.

SME & Business Environment

Government offers £2.4m cyber security support for SMEs

Small businesses are being offered financial assistance to improve their protection against cybercrime.

The Government has announced £2.4m of funding to provide small and micro businesses with a 75% discount on the Cyber Essentials certification programme.

The initiative aims to help approximately 6,000 SMEs strengthen their cyber security arrangements.

Cyber Security Minister Liz Lloyd highlighted the particular vulnerability of smaller companies to malicious online activity.

For businesses with limited IT resources, reducing exposure to fraud, compromised systems and operational disruption can be especially valuable.

Why it matters: Cyber incidents can interrupt invoicing, redirect payments, compromise customer information and disrupt cash collection, making effective security an important part of protecting business cashflow.

UK businesses warned against falling behind on AI

British and European businesses risk losing competitiveness unless they accelerate adoption of artificial intelligence, according to Palantir UK’s chief executive Louis Mosley.

He warned that companies failing to invest in AI could find themselves significantly behind American competitors within four or five years.

UK Finance research indicates that more than 90% of UK financial services companies have adopted predictive AI, although nearly 70% remain at the pilot stage for generative AI.

Across Europe, Eurostat figures suggest that only around one in five businesses used AI last year.

The challenge for SMEs is finding practical applications that improve productivity without creating unnecessary complexity or cost.

Why it matters: Used appropriately, automation can reduce administrative workloads, improve invoice tracking, identify emerging payment problems and help smaller finance teams manage credit more efficiently.

Retail & Consumer

Marks & Spencer profits surge as sales increase 15%

Marks & Spencer has reported a substantial improvement in first-half profitability.

Pretax profit increased to £355.1m from £3.4m a year earlier, while revenue rose 15% to £9.17bn.

Adjusted pretax profit more than doubled to £403.2m, supported by 14% growth in Food sales and an 18% increase in Fashion, Home & Beauty revenue.

The retailer increased its interim dividend by 17% to 1.4p per share and expects full-year adjusted pretax profit to meet market expectations.

However, management cautioned that trading conditions in Fashion, Home & Beauty remain challenging, although it anticipates improvement during the second half.

JD Wetherspoon reports continued sales growth

JD Wetherspoon has reported an encouraging start to its financial year despite ongoing pressures on hospitality businesses.

Like-for-like sales increased 8.2% during the first 14 weeks to 1 November, with total sales rising 9.1%.

Bar sales grew 9.4%, while food sales increased 6.8%. However, like-for-like growth slowed to 7.5% over the most recent five weeks.

Net debt declined to £736m from £756m a year earlier.

The company remains comfortable with market expectations, with analysts forecasting pretax profit of approximately £76.4m for the 2027 financial year, adjusted for its 53-week accounting period.

Industry & Investment

Barratt Redrow sees home completions fall 12%

Housebuilder Barratt Redrow has reported a 12% reduction in home completions during the opening 17 weeks of its financial year.

The group completed 3,223 homes as mortgage affordability pressures continued to affect the market.

Its private reservation rate eased from 0.57 to 0.53 homes per outlet per week, indicating more cautious buying activity.

However, its forward order book increased to 11,086 homes, valued at approximately £3.32bn.

Barratt Redrow maintained its full-year guidance and said it remained focused on cost efficiencies and disciplined land investment.

Why it matters: Slower housing activity can affect subcontractors and suppliers long before it becomes apparent in their own sales figures, making credit monitoring and prompt payment follow-up particularly important.

Financial Services & Regulation

FCA supports early car finance compensation offers

The Financial Conduct Authority has outlined minimum standards for lenders wishing to settle car finance compensation claims ahead of its proposed industry-wide redress scheme.

The regulator says early settlement offers must be at least as generous as the maximum compensation available under the proposed £9.1bn programme.

Approximately 12.1m finance agreements could potentially qualify, with average compensation estimated at £829.

However, many affected consumers may need to wait until legal challenges conclude in 2027 before receiving payments.

International & Trade

US midterms reshape Washington and unsettle global markets

The world’s financial markets have been responding to a significant change in the American political landscape following Tuesday’s midterm elections.

Democrats have secured control of both chambers of Congress, gaining seats in a number of states previously held by Republicans.

The result creates a divided government for the remaining two years of Donald Trump’s presidency and could complicate aspects of his trade, tariff and fiscal agenda. apnews.com+1

Investors initially reacted cautiously, particularly towards companies exposed to artificial intelligence infrastructure and potential regulatory changes.

However, European markets recovered strongly on Wednesday morning, supported by expectations that further tariff increases may become more difficult to implement.

For UK businesses trading internationally, changes in American trade policy could have consequences for supply chains, import costs and overseas demand.

Why it matters: US political developments can affect exchange rates, energy prices and trading confidence, but the more immediate challenge for many UK SMEs remains managing domestic costs and receiving customer payments on time.

Burnham denies proposing return to EU free movement

Prime Minister Andy Burnham has sought to clarify his position on Britain’s future relationship with the European Union.

Speaking to ITV, Burnham denied proposing the restoration of free movement, while calling for an open discussion about immigration and the consequences of Brexit.

His comments follow earlier suggestions that Britain could eventually consider closer integration with the EU, potentially including membership of the single market or even rejoining the bloc.

The proposals have reportedly prompted concerns among some Cabinet ministers about reopening politically sensitive Brexit debates.

Burnham has emphasised that he does not intend to move ahead of public opinion, while other ministers have highlighted the importance of providing businesses with certainty.

Why it matters: Businesses trading with Europe need predictable arrangements for goods, services and recruitment. Prolonged uncertainty can complicate investment and commercial planning.

Binance details reported $6.3bn cyberattack

Cryptocurrency exchange Binance has disclosed further details of a reported $6.3bn theft, potentially one of the largest financial cybercrimes ever recorded.

According to the company, attackers compromised the computers of two engineers through a fraudulent job interview and malicious software concealed in an advertisement.

The attack reportedly began several months before the theft was completed.

The FBI has attributed the incident to hackers linked to North Korea.

The scale of the attack illustrates how sophisticated social engineering can compromise even technically advanced organisations.

Why it matters: Businesses of every size should remain alert to fraudulent communications, compromised supplier details and payment diversion attempts. A single successful cyberattack can have serious financial consequences.

Global Market Summary

Global markets recover as investors assess US election results

The American midterm elections have dominated global financial markets overnight, but the initial reaction has been far from uniform.

European stocks recovered strongly on Wednesday morning after falling during Tuesday’s session. The prospect of greater congressional scrutiny of US tariff policy helped improve sentiment towards European exporters and industrial companies.

Asian markets were more divided. Japanese equities declined as technology companies came under pressure, while Hong Kong and mainland Chinese shares advanced.

US equities finished Tuesday with mixed results, although technology shares benefited from renewed enthusiasm for AI infrastructure following strong corporate earnings.

Global equity index performance

United Kingdom and Europe

The FTSE 100 advanced approximately 0.7% during Wednesday morning trading, recovering from Tuesday’s 1.1% fall.

Germany’s DAX gained 1.04%, helped by better-than-expected economic activity figures. Germany’s composite purchasing managers’ index reached 53.4, ahead of forecasts of 52.8.

France presented a more difficult picture. Its composite PMI fell to 46.6, indicating contraction in private-sector activity, although the CAC 40 nevertheless advanced 0.95%.

The wider eurozone composite PMI eased to 51.7, suggesting growth continues but has slowed.

These differences matter to British exporters. Stronger German demand may offer opportunities, while weaker conditions in France could affect orders and customer payment confidence.

United States

Wall Street’s Tuesday session reflected a market balancing political uncertainty against continued enthusiasm for technology.

The S&P 500 gained 0.36% and the Nasdaq Composite advanced 0.83%, while the Dow Jones declined 0.38%.

AI-related businesses remained prominent. AMD forecast fourth-quarter revenue of approximately $17bn, ahead of analyst expectations of $16.3bn, while Super Micro raised its sales outlook following strong demand for AI servers.

The election result initially unsettled futures markets amid concerns about possible changes to technology regulation. However, sentiment subsequently improved.

Asia-Pacific

Asian trading was particularly volatile as the American election results became clearer.

Japan’s Nikkei 225 declined 1.42%, with technology shares experiencing selling pressure.

Hong Kong’s Hang Seng rose 1.67%, supported by renewed buying interest in technology and healthcare companies.

Mainland Chinese shares also advanced, helped by monetary support measures from the People’s Bank of China.

The contrasting performances demonstrate that investors are interpreting the consequences of the US political shift differently across markets.

Currency markets

GBP/USD

$1.3491

+0.57%

Sterling strengthened against the dollar

GBP/EUR

€1.1983

Broadly unchanged

Euro and sterling both gained against the dollar

Sterling strengthened considerably against the US dollar as investors reassessed American economic and trade policy following the election.

The pound rose approximately 0.57% to $1.3491, its strongest daily advance in roughly two weeks.

The US Dollar Index declined around 0.52%, reflecting weaker demand for the currency.

Commodities and energy

Brent crude

$102.86

-0.71%Per barrel

WTI crude

$95.96

-0.14%Per barrel

Gold

$4,043

+2.90%Per troy ounce

Oil prices eased amid signs that diplomatic engagement between the United States and Iran could reduce the immediate risk of further escalation.

President Trump indicated that he had no immediate plans for additional strikes against Iran, although considerable uncertainty remains.

Brent crude declined to $102.86 per barrel, while WTI traded around $95.96.

Energy markets remain sensitive to developments in the Middle East, particularly disruptions affecting transport through the Strait of Hormuz.

European natural gas prices also remain elevated, adding to concerns about the operating costs facing manufacturers, hospitality companies and other energy-intensive businesses.

Gold rose sharply as investors sought safer assets amid political and currency uncertainty.

What the markets mean for UK SMEs

The global market response to the American election is significant, but businesses should look beyond the daily movements in share prices.

Three practical considerations stand out.

First, currency volatility can change the cost of imported goods and the value of overseas customer payments.

Second, continued uncertainty over energy prices makes budgeting difficult, particularly for companies with high transport, manufacturing or heating costs.

Third, tomorrow’s Bank of England decision could have more direct implications for UK business borrowing costs and household spending.

The important distinction is between market confidence and business cashflow. Stock markets may recover quickly following political developments, but higher interest charges and delayed customer payments can place much more persistent pressure on smaller businesses.

Insolvency Watch

Administrations (8)

• CHAMELEON TECHNOLOGY (UK) LIMITED
• FELIX RESTAURANTS (WARLEY) LTD
• L.CAMERON & SON LIMITED
• NEWHAVEN PHARMACIES LIMITED
• PREDDY NEWCO LIMITED
• QUANTA EPC LIMITED
• REBORNE LONGEVITY LTD
• YHANGRY LTD

Liquidations (22)

• ABBEY WAY PROPERTY LIMITED
• AP ASSOCIATES (CRANLEIGH) LIMITED
• BMH SERVICES LIMITED
• CEVIAN55 LTD
• CONSTANTIA ESTATES LIMITED
• CSK PETROLEUM CONSULTANTS LIMITED
• CUBA CONSULTANTS LTD
• DASHWOOD ESTATES LIMITED
• DELE ALLI PROMOTIONS LTD
• DENNIS WILLIAMS LIMITED
• DERWENT DECORATING LIMITED
• GMCM CONSULTANCY LTD
• INDIGO GOLD LTD
• L.B.S. (FORT WILLIAM) LIMITED
• NTECK SOLUTIONS LIMITED
• PIMPERNE PROJECTS LTD
• QUICKSTEP HOLDINGS LIMITED
• RANGETEN LIMITED
• THE DIAMOND BOUTIQUE LIMITED
• WHARFE PROPERTIES LIMITED
• YOU ARE THE DIFFERENCE LIMITED
• ZUVION LIMITED

Winding-up Petitions (5)

• EYRE HOSPITALITY LTD
• H & N DEVELOPMENTS LLP
• MINIBEMS LIMITED
• T&CT LIMITED
• THE GREYHOUND HAVERSHAM LTD

What does this mean for businesses selling on credit?

These notices are a reminder that financial difficulties can emerge across many different industries.

A winding-up petition does not automatically mean that a company has ceased trading or is insolvent, but it is a significant warning sign that creditors should investigate.

For businesses extending credit, the priority is understanding whether existing customers are experiencing financial difficulties before unpaid balances grow.

Regular credit reviews, monitoring alerts and timely action on overdue accounts can help businesses recognise changes in risk and respond proportionately.

Protecting cashflow when borrowing costs rise

While international markets react to the US elections, Britain’s businesses face a more immediate financial challenge.

Higher interest rates could make borrowing more expensive at precisely the time when many companies are managing rising payroll costs, tax obligations and energy bills.

But the effect doesn’t stop with a business’s own finances.

A customer facing higher interest payments may decide to preserve cash by paying suppliers later. Another may request longer credit terms. Others may begin settling invoices in smaller amounts or miss payment dates that previously presented no difficulties.

Individually, those delays may seem manageable. Across an entire customer ledger, they can quickly become a serious working capital problem.

That is why strong credit management becomes even more important when borrowing costs are rising.

CPA helps businesses protect their income through practical, professional and considerate credit management support, including:

• CreditCare credit reports: Assess the financial position of new and existing customers before extending significant credit.
• Debtor monitoring: Identify changes in customer circumstances and emerging financial warning signs.
• Overdue account recovery: Encourage customers to settle outstanding invoices promptly through respectful, professional communication.
• Credit control support: Improve consistency, reduce internal administrative pressure and help businesses keep payments moving.
• Customer relationship protection: Address overdue accounts without unnecessarily damaging valuable commercial relationships.

An established customer relationship is worth protecting. So is the money your business is owed.

The earlier a payment problem is identified and addressed, the greater the opportunity to resolve it before it becomes a more serious financial difficulty.

CPA has been helping businesses improve cashflow and protect customer relationships since 1914.

Call CPA on 020 8846 0000 during business hours, Monday to Friday, 9am to 5pm.

Visit cpa.co.uk/contact-us

Just call 020 8846 0000 (Monday to Friday, 9am to 5pm) or email PaidQuick@cpa.co.uk today.

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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