UK Business News Today: 5 November 2026 | Economy, Markets & Insolvencies

It’s Bonfire Night, and while fireworks will be lighting up Britain’s skies this evening, business owners could probably do without any unexpected explosions in their finances.

Today’s news provides a mixture of encouraging growth and familiar warning signs: the services sector is expanding at its fastest pace in eight months, but costs are rising, household budgets remain squeezed and perhaps the most explosive news, the Bank of England is expected to increase interest rates.

Throw in further tax pressures, changing employment demands and the usual uncertainty surrounding customer payments, and there are plenty of reasons to keep a close eye on cashflow. After all, a business can be busy, profitable on paper and still find itself in difficulty if the money isn’t coming in.

James Salmon, Operations Director.

Key Developments

• Services sector strengthens: The UK services PMI reaches 52.8, an eight-month high, although input costs continue to rise.
• Interest rates in focus: The Bank of England is expected to increase Bank Rate from 3.75% to 4.00%, potentially increasing borrowing pressures.
• Taxes squeeze spending power: Frozen income-tax thresholds and higher business costs raise concerns about household spending and company margins.
• Global markets rally: US and European equities gain following the American midterm elections, while oil prices retreat sharply.
• Insolvency risks remain: Today’s notices identify 37 companies across administrations, liquidations and winding-up proceedings.

Economy & Policy

UK services sector reaches an eight-month high

There is some encouraging news for the UK economy, with the S&P Global services purchasing managers’ index rising from 52.1 in September to 52.8 in October, its highest reading since February.

Higher workloads encouraged businesses to increase recruitment, ending a prolonged period of job cuts. However, input-price inflation accelerated to a five-month high, with approximately four in ten firms reporting rising costs.

The improvement suggests greater economic resilience despite geopolitical uncertainty and subdued consumer confidence. Nevertheless, stronger activity does not automatically translate into stronger profitability.

Why it matters: Growing sales are welcome, but businesses selling on credit need to ensure that higher turnover produces stronger cashflow rather than simply larger unpaid balances.

Bank of England expected to raise interest rates

The Bank of England’s Monetary Policy Committee is expected to increase Bank Rate from 3.75% to 4.00% at today’s meeting, according to consensus forecasts.

Economists are concerned that higher energy prices could feed into wider inflation, with some forecasting consumer-price inflation above 4% in the coming months.

In a separate exercise, City AM’s shadow Monetary Policy Committee voted six to three in favour of a quarter-point increase. Supporters argued that an increase would protect the Bank’s inflation-fighting credibility, while opponents warned that higher borrowing costs could weaken economic growth without addressing the underlying energy-price shock.

Why it matters: Higher interest rates increase borrowing costs for businesses and their customers, potentially affecting investment, payment performance and working capital.

Stealth taxes continue to squeeze household incomes

Frozen income-tax thresholds are increasingly affecting household spending power, according to Professor David Miles of the Office for Budget Responsibility.

As wages rise without corresponding increases in tax thresholds, more people are drawn into higher tax brackets, increasing the proportion of income paid in tax.

The Resolution Foundation forecasts that real household disposable income will increase by just 1.4% across the 2020s, compared with growth of 28% in the 1990s, 18% in the 2000s and 14% in the 2010s.

Combined with elevated energy costs and weak GDP growth per person, this creates a challenging environment for businesses dependent on consumer demand.

Why it matters: When households have less disposable income, spending slows, putting pressure on retailers, service providers and the suppliers who extend them credit.

Tax & Government

Higher earners face a 64% effective savings tax rate

Workers earning between £100,000 and £125,140 could face an effective marginal tax rate of 64% on additional taxable savings interest from April.

Analysis from investment platform IG suggests that the Budget’s four-percentage-point increase in higher-rate savings tax, combined with the personal allowance taper, could raise the effective marginal rate from 44% to 64%.

That would leave affected individuals retaining just 36p of each additional £1 of taxable savings interest.

IG Consumer chief executive Michael Healy warned that years of frozen tax thresholds have brought more professionals into this particularly costly part of the tax system.

HMRC scrutinises the employment status of LLP members

HMRC is contacting limited liability partnerships following a Supreme Court ruling clarifying circumstances in which LLP members may be treated as employees for tax purposes.

The distinction between genuine business ownership and employment could have important financial implications for affected organisations.

Adam Craggs of RPC reports that firms are seeking guidance, while Miles Dean of Andersen UK says HMRC is examining whether individuals described as partners are genuinely operating as business owners.

M&S chief criticises rising business taxes

Marks & Spencer chief executive Stuart Machin has criticised the cumulative impact of government tax and employment measures, describing them as one of the biggest tax grabs in history.

According to Machin, the retailer has faced approximately £150 million in additional tax and labour costs since the 2024 Budget.

He also claims that planned business-rates changes will add another £10 million to the company’s annual rates bill, despite apparently positive announcements surrounding reform.

Although M&S operates on a much larger scale than most SMEs, the pressures it describes will be familiar to many smaller retailers.

Industry & Investment

National Grid accelerates investment and raises profit expectations

National Grid has upgraded its profit outlook as its multibillion-pound infrastructure programme gathers pace.

The company now expects earnings-per-share growth of 15% to 16%, compared with its previous forecast of 13% to 15%.

Investment in the 2026/27 financial year is expected to reach £13.5 billion, while first-half capital investment climbed to a record £6.7 billion.

Underlying operating profit rose 13% to £2.59 billion, supported by continued spending on UK electricity transmission projects and upgrades to American networks.

Diageo reports unexpected sales growth

Drinks group Diageo reported a 1.4% increase in organic net sales during the three months to September, exceeding expectations.

Strong performances from Guinness and Smirnoff Ice helped offset continued weakness in North America.

Chief executive Dave Lewis described the results as a small step in the right direction but acknowledged that the wider trading environment remains challenging.

The company maintained its forecast for flat net sales growth across the financial year.

The results illustrate the uneven nature of consumer spending, with some products and markets proving considerably more resilient than others.

Air traffic control failure costs UK economy £33 million

A September failure at National Air Traffic Services resulted in more than 2,000 flight cancellations, according to the Cyber Monitoring Centre.

The disruption is estimated to have cost the UK economy £33 million, while global losses, including overseas airlines, reached between £48 million and £76 million.

The incident illustrates the wider economic consequences of failures affecting critical infrastructure.

Employment & Labour

Artificial intelligence transforms graduate recruitment

Artificial intelligence is changing what employers expect from graduates, according to PwC’s 2026 AI Jobs Barometer.

The research examined 2.4 million US entry-level job advertisements and found that positions most affected by AI were seven times more likely to require skills traditionally associated with senior employees.

These included strategic decision-making, leadership and team building.

AI-influenced entry-level positions have increased by 35% since 2019, while other entry-level roles have declined by 10%.

PwC UK technology chief Claire Reed emphasised that AI expertise must be combined with practical sector knowledge to support long-term career development.

Global Market Summary

Global equities rally as investors reassess the outlook

Global markets have experienced significant movements following the US midterm elections, with investors responding to the reported Democratic victories in both chambers of Congress.

The prospect of more constrained US fiscal policy, easing geopolitical tensions and lower oil prices contributed to a broad rally across American and European equities.

However, enthusiasm was not universal. Technology and semiconductor shares faced selling pressure amid concerns about potential changes to AI infrastructure investment and regulation.

United Kingdom and Europe

The FTSE 100 closed Wednesday 1.8% higher at 10,829.21, supported by strong performances from HSBC and precious-metals producers.

It extended those gains on Thursday morning, climbing above 10,900.

The STOXX Europe 600 also advanced, with miners, consumer businesses and financial companies attracting investment.

Stronger corporate earnings and the prospect of lower energy costs helped support investor confidence.

United States

The Dow Jones Industrial Average surged 3.03% on Wednesday, gaining more than 1,500 points.

The S&P 500 advanced 1.58%, while the Nasdaq Composite increased 1.44%.

Investors responded to political developments and falling Treasury yields, although technology stocks were affected by concerns over the future pace of AI infrastructure investment.

The benchmark US 10-year Treasury yield retreated to approximately 4.84%–4.88% in the morning reports.

Asian markets

Asian equities presented a much more mixed picture.

Hong Kong’s Hang Seng surged 3.67%, supported by renewed interest in Chinese technology companies including Alibaba and Tencent.

Japan’s Nikkei 225 fell 1.79%, while South Korea’s Kospi declined sharply as semiconductor and technology stocks came under pressure.

These contrasting performances demonstrate how quickly investment sentiment can shift between industries and geographical markets.

Currency markets

GBP / USD

1.3464

−0.05% on the day

GBP / EUR

1.1987

−0.08% on the day

The US dollar weakened following the midterm election results, reflecting lower Treasury yields and changing expectations about American fiscal policy.

Sterling strengthened against the dollar during Wednesday’s session.

Currency traders were also awaiting the Bank of England’s interest-rate announcement.

For UK businesses importing materials or exporting goods, exchange-rate changes influence both purchasing costs and international competitiveness.

Commodities: oil falls sharply while gold advances

Brent crude

$95.81

WTI crude

$88.40

Gold / oz

$4,125

Oil prices experienced a dramatic decline on Wednesday, with Brent falling by approximately 10% amid hopes that the US political developments might improve prospects for easing the conflict with Iran.

Both Brent and WTI recovered modestly during Thursday morning’s session.

Gold strengthened as the dollar and bond yields retreated, attracting investors seeking protection against uncertainty.

For SMEs, falling oil prices could eventually reduce transport and energy costs, although these benefits may take time to appear in suppliers’ invoices.

The business takeaway: Financial markets may be celebrating falling energy prices and improving confidence, but businesses should avoid assuming that lower costs or easier financing conditions are guaranteed. Cashflow forecasts should allow for continued volatility.

Insolvency Watch

Administrations (7)

• ALLCURES PLC
• CD WELCOMBE PROPCO LIMITED
• HASSENGATE EA LIMITED
• OLMSTED PROPERTIES II LIMITED
• OLMSTED PROPERTIES III LIMITED
• OLMSTED PROPERTIES IV LIMITED
• SPECTRAGLASS LIMITED

Liquidations (29)

• A & V SERVICES LIMITED
• AGC DUBLIN HOLDINGS LIMITED
• ASPECT CARPET HOLDINGS LIMITED
• ASPECT CARPET INSTALLATIONS LIMITED
• BARWICK VENTURES LIMITED
• BRIDGEYATE PROPERTY SERVICES LTD
• CHRISTMAS LODGE LTD
• CLEVELAND MONUMENTALS LIMITED
• COLUXE INFINITE HOLDINGS LIMITED
• DIAMOND SEED STUDIOS LIMITED
• DOWNFIELD TRADING LIMITED
• ELLIS CONSTRUCTION COMPANY(SWINTON)LIMITED
• EXCHANGE HOUSE PROPERTY LIMITED
• FAST TOYS LTD
• GRAHAM FAMILY HOLDINGS LIMITED
• IAIN JACOB ASSOCIATES LIMITED
• JETTY TECHNOLOGIES LIMITED
• KB SOLUTIONS LIMITED
• KSB SHAREHOLDERS LIMITED
• KTS TRUCKS LIMITED
• MAXSAMBA LIMITED
• PAINEX LIMITED
• PARAPHEMIA LIMITED
• RELUME LIMITED
• RODERICK RICHARDSON LIMITED
• STATIC SYSTEMS HOLDINGS LIMITED
• TBT 2021 LIMITED
• THE LEAH JONES GROUP LIMITED
• TOPCLASS VALUE LIMITED

Winding-up Petitions (1)

– BEHROUZI ASSOCIATES LIMITED

Remember, remember… your overdue invoices this November

Bonfire Night is a good reminder that small sparks are much easier to deal with before they become major problems.

The same principle applies to business credit.

An invoice that remains unpaid for a few extra days might not seem particularly concerning. But when customers begin paying later, costs are rising and borrowing becomes more expensive, relatively small delays can quickly become serious cashflow problems.

Today’s business news illustrates the importance of remaining alert. The economy may be growing, but that doesn’t mean every customer is financially secure.

At CPA, we believe prevention and early intervention are always preferable to dealing with the consequences of an avoidable bad debt.

Our services help businesses that sell on credit to:

• Know their customers: CreditCare credit reports and debtor monitoring help businesses assess creditworthiness and identify potential changes in financial circumstances.
• Maintain effective credit control: Clear payment terms, appropriate credit limits and consistent follow-up encourage better payment behaviour.
• Recover overdue invoices: CPA’s professional, considerate recovery services encourage customers to pay what they owe directly to suppliers.
• Protect customer relationships: Our ethical approach helps resolve overdue accounts without unnecessarily damaging valuable commercial relationships.

A healthy order book is important. But so is making sure those orders turn into money in the bank.

Remember, remember… your overdue invoices this November. Don’t let payment problems become financial fireworks.

For practical support with protecting your cashflow:

020 8846 0000

Monday to Friday, 9am to 5pm

PaidQuick@cpa.co.uk

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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