UK Business News Today: 6 July 2026 | Economy, Markets & Insolvencies

There may be plenty of tired football fans at work this morning after England’s chaotic late-night 3-2 win over Mexico, but for business owners the new week starts with serious cashflow questions. The strongest SME-relevant story is the new Insolvency Service taskforce targeting abusive phoenixism, alongside weaker services activity, pressure on sterling, energy costs, tax uncertainty, possible wage rises and a fresh list of insolvency notices. For firms that sell on credit, the common thread is risk: weaker demand, rising operating costs and more scrutiny of company failures all make payment behaviour, customer monitoring and early credit control more important.

James Salmon, Operations Director.

Key Developments

• A new Insolvency Service taskforce will target abusive phoenixism, with HMRC linking the practice to around £800m of tax losses.
• UK services activity fell sharply in June, with the sector PMI dropping below the 50 growth threshold for a second consecutive month.
• Business confidence remains under pressure from tax uncertainty, wage costs, energy bills and political risk.
• Traders have placed a large bet against sterling, raising concerns about import costs, inflation and interest rates.
• Insolvency notices include 1 administration, 8 liquidations, 21 winding-up petitions and 6 winding-up orders after deduplication.

Insolvency, Credit Risk & Business Conduct

Taskforce targets phoenixism

A new Insolvency Service taskforce will target “abusive phoenixism” by rogue directors. The issue is linked to around £800m of tax losses, with HMRC figures suggesting phoenixism accounted for 22% of £3.8bn of total tax losses in 2022/23. The Chancellor has committed £25m to support investigations into suspicious insolvencies where directors may have deliberately liquidated or dissolved companies to evade tax and write off debts. The Company Directors Disqualification Act will also be amended to disqualify more directors.

Why it matters: For SMEs selling on credit, phoenixism is a direct threat because unpaid invoices can be left behind while a similar business reappears under a new structure, making customer checks, director monitoring and early action essential.

Sunak says UK must embrace creative destruction

Former prime minister Rishi Sunak has argued that the UK should be more willing to let weak businesses fail. Writing in the Sunday Times, he said the US economy benefits from “creative destruction”, where failing fast and trying again is treated as part of entrepreneurship. He warned that Britain risks losing economic dynamism if it relies too heavily on politically popular interventions that keep unproductive firms alive.

Why it matters: A tougher attitude to business failure could increase insolvency risk among weaker customers, making proactive credit management more important for suppliers.

Economy & Business Confidence

UK services sector contracts sharply

Britain’s services sector suffered its steepest decline since 2023, with S&P Global’s services PMI falling to 48.8 in June. That marks a second consecutive month below the 50 level that separates growth from contraction. Firms reported that uncertainty linked to the Iran war and the June heatwave weighed on demand, while earlier cost pressures also affected confidence. A separate S&P survey suggested eurozone services were still weak but falling at a slower pace, helped by softer inflation.

Tax burden stifles business investment

A British Chambers of Commerce poll found that only 17% of businesses plan to increase investment over the next three months, down from 21% in the previous quarter. The fall was linked to tax increases and rising operating costs, which are restricting capital spending. The survey of 4,744 businesses found that 66% were worried about rising inflation, making it the leading concern.

Tackling workplace sickness could unlock hidden growth

Sir Charlie Mayfield, former chair of John Lewis, has argued that tackling unemployment linked to long-term illness could improve economic growth. His Get Britain Working taskforce, supported by more than 250 major employers, is focused on reducing the £212bn annual cost of ill-health-related work absences. The initiative aims to improve employer-employee communication during sickness, return-to-work outcomes and disability participation.

Tax, Policy & Regulation

CGT debate raises concern over investment incentives

The Tony Blair Institute for Global Change has warned against equalising capital gains tax with income tax. The warning follows reports that allies of Andy Burnham have advocated such a move. Guy Ward-Jackson of the institute argued that aligning the two taxes would weaken incentives for entrepreneurs and send the wrong signal to investors. HMRC modelling cited in the report suggests a 10% increase in the top CGT rate could reduce tax receipts by £3.6bn.

Business rates reform could cost £880m a year

Forecasts by Ryan suggest Andy Burnham’s proposed business rates overhaul could remove more than 140,000 premises from rates by increasing relief for small high street firms. The plan could cost around £880m a year in lost revenue. Burnham has suggested funding the reform through higher taxes on large warehouses used by online retailers such as Amazon, shifting more of the burden onto larger commercial properties.

Property tax proposals face regional criticism

Plans backed by Andy Burnham to replace council tax with an annual levy on private land values have been criticised as a “garden tax”. Telegraph analysis suggests a 1% annual charge would increase average bills in London by 36%, with much larger rises in areas such as Westminster and Wandsworth, while reducing bills more heavily in the North. Separate reports suggest Burnham may also lower the mansion tax threshold from £2m to £1.5m, potentially bringing around 150,000 additional homeowners into the levy.

HMRC plans to track personal finances with AI

Dr Chris Wales, a former adviser to Gordon Brown, has warned that HMRC may move towards using AI to monitor individuals’ and businesses’ financial activity without consent. He pointed to Spain’s tax authority model as a possible blueprint and raised concern about the lack of parliamentary debate. HMRC said data collection is governed by strict legal safeguards and that AI supports, but does not replace, human oversight.

New OBR chief may scrutinise employer costs

The Telegraph’s Dia Chakravarty has suggested Labour may regret giving more power to the Office for Budget Responsibility, given the views of its newly appointed chief Jonathan Haskel. Haskel has reportedly warned that the Employment Rights Act could add more costly labour market regulation on top of tax hikes for employers. The issue adds to the wider debate about how policy choices affect hiring, investment and business confidence.

Politics & UK-EU Relations

Burnham rules out general election if he becomes prime minister

Andy Burnham has ruled out calling a UK general election if he succeeds Keir Starmer as prime minister. Asked on Reddit whether he would go to the polls, Burnham said “no” and indicated he would stick to Labour’s 2024 manifesto promises, including the state pension triple lock. He also discussed stronger public control of services such as water, closer EU ties, asylum seeker return agreements, electoral reform, fully funded defence investment and continued support for Ukraine. If unopposed when nominations close on 16 July, Burnham could become Labour leader on 17 July and prime minister on 20 July.

UK seeks closer role in EU committees

The UK is seeking to join EU committees on farming and food standards, carbon markets and electricity markets as part of efforts to align rules more closely with the continent. The European Commission and several member states have pushed back, saying the UK has no automatic right to participate under its current arrangement. However, officials may consider allowing UK representatives to contribute to expert-level meetings. The dispute sits within wider UK-EU reset talks covering youth mobility, defence procurement and study abroad programmes.

Costs, Wages & Manufacturing

Steel taxes spark manufacturing concern

New UK steel taxes are raising serious concern among manufacturing and engineering firms in Northern Ireland. The policy, effective from Wednesday, increases taxes on overseas steel and reduces tariff-free imports by 51%. Darragh Cullen, managing director of EDGE Innovate, called it a “huge own goal”, while Stephen Kelly of Manufacturing NI warned that the impact could be profound, with some companies already shifting production abroad.

Energy bills threaten manufacturing jobs

Make UK has warned that soaring energy costs are threatening UK manufacturing. The trade body said 90% of manufacturers have faced significant energy bill increases since 2022, while 13% fear further rises could destroy their businesses. Make UK said the loss of those firms could mean an £85bn hit to the economy. Chief executive Stephen Phipson said manufacturers are not seeking subsidies but need urgent action to address energy costs.

Minimum wage rise could fuel inflation

The CBI and British Chambers of Commerce have warned that raising the minimum wage above £13 an hour could threaten jobs and add to inflation. The Low Pay Commission is expected to recommend a 5% increase in 2027, taking the rate to £13.18. Kate Shoesmith of the BCC said further above-inflation increases to the national living wage could tip more firms over the edge. A recent BCC survey found that 10% of businesses have already made redundancies following this year’s 4.1% wage increase.

Markets, Sterling & Corporate Activity

Traders bet heavily against the pound

Traders have reportedly placed their largest bet against the pound in nearly a decade, totalling £7bn. The move comes as markets consider the possibility of an Andy Burnham government and the risk of a leftward policy shift. Chris Beauchamp, chief market analyst at IG, said the pound is often the market’s first pressure point when confidence in the UK outlook deteriorates. A weaker pound could increase import costs, add to inflation and keep interest rates higher for longer.

OPEC+ agrees modest oil production increase

OPEC+ has agreed to increase oil production in August by 188,000 barrels a day. Brent crude is trading around $72 a barrel, down from more than $120 at the end of April. The move comes as shipping through the Strait of Hormuz shows signs of partial recovery, although flows remain below earlier levels.

EasyJet agrees takeover offer

EasyJet has agreed in principle to a takeover offer worth more than £5bn from Castlelake LP. The £6.90-per-share cash offer gives the airline an equity value of £5.2bn. The deal would take EasyJet private after listing in November 2000 at £3.10 per share.

Uber pauses European food delivery expansion

Uber has paused its planned food delivery expansion in Europe while it pursues a takeover of Delivery Hero. Uber’s previous €10bn bid for the German food delivery company was rejected in May. The move signals continued consolidation pressure in the food delivery sector.

Foxconn sales surge on AI demand

Foxconn’s second-quarter sales rose nearly 40% year on year to $79bn. The Taiwanese contract manufacturer, which makes servers for Nvidia and phones for Apple, reported strong growth in both divisions. It expects sales to remain high through the third quarter, supported by demand for AI-related technology.

Retail, Online Sellers & Consumer Activity

Side hustlers urged to focus on profit, not turnover

Harvey Dhillon, CEO of Zmartly, has warned side hustlers and small online sellers to focus on profit rather than turnover. With up to 20% of Britons reportedly running small online businesses, he said many sellers overlook platform fees, shipping and other costs. He advised sellers to track margins closely and prioritise products that produce stronger returns.

Sport, Workplaces & Monday Morning Mood

England survive Mexico thriller to reach World Cup quarter-finals

England are through to the World Cup quarter-finals after a chaotic 3-2 win over Mexico in the early hours of Monday morning UK time. Jude Bellingham scored twice, Harry Kane converted a pressure penalty, Jarell Quansah was sent off and Jordan Pickford made important late saves as England held on with ten men. The result ended Mexico’s unbeaten World Cup record at the Azteca. England now face Norway in Miami on Saturday 11 July at 10pm UK time after Norway shocked Brazil 2-1.

Global Market Summary

The supplied market data shows a cautious but generally resilient backdrop, with equity markets supported by softer US jobs data, lower rate-hike expectations and relief in parts of the technology sector. However, the tone remains fragile because of AI supply chain concerns, oil volatility, sterling pressure, widening French bond spreads and renewed questions over global interest rates. The market wrap supplied for today covered Friday 3 July through Monday 6 July at 09:32 BST.

Equity markets

Market drivers

The main market driver was a shift in interest-rate expectations after a softer US jobs report. That reduced pressure for further Federal Reserve tightening, weakened the dollar on Friday and supported risk assets. European equities also benefited from a rebound in chip stocks after Thursday’s selloff, although the AI trade remains fragile.

The major overnight issue was a SemiAnalysis report that Nvidia’s Kyber NVL144 next-generation AI server rack has been delayed by more than 12 months because of PCB midplane manufacturing challenges. That triggered selling in Asian semiconductor and PCB supply chain stocks, reversing early gains in Korea and limiting the Nikkei.

Oil was the key weekend gap story. OPEC+ agreed to add 188,000 barrels a day of output in August, while shipping through Hormuz showed signs of partial recovery. That pushed oil lower and eased some inflation fears, although geopolitical and energy risks remain.

Currencies

Sterling was trading around $1.3350, with bullish momentum losing steam. The euro was slightly softer against the pound, while the dollar regained some ground on Monday morning after weakening on Friday. The yen remained the standout underperformer, with USD/JPY above 161 and intervention risk elevated.

For UK SMEs, sterling matters because a weaker pound can raise import costs, increase inflation pressure and keep interest rates higher for longer. Firms buying stock, raw materials, fuel or technology in foreign currencies should review pricing and customer terms carefully.

Commodities

Brent crude traded around $71 to $72 a barrel and WTI around $68 to $69 on Monday morning. Prices were pressured by the OPEC+ supply increase and signs that Hormuz flows were recovering. Lower oil may help transport and energy-sensitive firms, but volatility remains a planning risk.

Gold was near $4,160 an ounce after its first weekly gain since May. Softer US jobs data, lower energy prices and reduced Fed tightening expectations supported bullion. European gas prices remained elevated, with storage at 50% full compared with a five-year seasonal norm of 65%.

Insolvency Watch

Administrations (1)

• L BURRIDGE LTD

Liquidations (8)

• AGMAN CHILE LIMITED
• BENTHAM COUNTRY CLUB LIMITED
• C BUTT HOLDINGS LIMITED
• C&WH BUTT LIMITED
• CLOUD ENGINE LIMITED
• GILBERT WHITE LIMITED
• GREY OWL LTD
• PUTNAM INVESTMENTS LIMITED

Winding-up Petitions (21)

• AFFINITY PACKAGING LIMITED
• ARCH ASSET MANAGMENT LTD.
• CHOBAI LIMITED
• CONTRACTOR EXPERT LIMITED
• COOPER BROTHERS BUSINESS GROUP LTD.
• D & J CONTRACTS SOUTHERN LIMITED
• DKSS HOLDINGS LTD
• ECI LIMITED
• FATIMAH & MINAHIL LTD
• KM TELECOM LTD
• MICROBLADE (HOLDINGS) LIMITED
• MINDEX LIMITED
• PURPLE EXTERIOR SOLUTIONS LIMITED
• RANEES STORE LTD
• RESILIENCE RESIDENTIAL SERVICES LTD
• ROMANSTONE (UK) LIMITED
• TAFIL RESTAURANT LIMITED
• THE CAR SUITE LTD
• THE HUB INVESTORS LTD
• WILLOW COURT SERVICES LIMITED
• WROUGHTON STUDIOS LIMITED

Winding-up Orders (6)

• BROOKS DISCOUNT LIMITED
• COOPER BROTHERS BUSINESS GROUP LTD.
• D & J CONTRACTS SOUTHERN LIMITED
• PURPLE EXTERIOR SOLUTIONS LIMITED
• ROMANSTONE (UK) LIMITED
• UNCLE BUCK FINANCE LLP

Protecting cashflow when insolvency risk is rising

Today’s lead story on phoenixism is a reminder that credit risk does not always end with a late invoice. When directors close companies, move assets or restart under a new structure, suppliers can be left carrying the loss. That is why SMEs selling on credit need more than polite chasing. They need visibility, process and early escalation.

CPA helps businesses protect cashflow through CreditCare credit reports, debtor monitoring, overdue account recovery and credit control support. The aim is not to damage customer relationships, but to improve payment performance with a professional, ethical and consistent process. Acting early gives businesses a stronger chance of recovering overdue invoices before they become bad debts.

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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