UK Business News Today – 6 March 2026 | Economy, Markets & Insolvencies

Small business owners are feeling the strain of economic uncertainty, with a new survey showing many losing sleep over rising costs, geopolitical tensions and cashflow concerns. At the same time, the UK construction downturn has deepened, mortgage rates are climbing again, and global markets remain volatile as the Middle East conflict pushes oil prices sharply higher.

Energy risks are also rising after Russia signalled it could halt gas supplies to Europe if more profitable markets emerge. Meanwhile tax policy, inheritance changes and global trade restrictions on AI technology are adding to the uncertainty facing businesses.

For companies trading on credit, these developments matter because volatility, rising costs and economic uncertainty typically lead to slower payments, tighter cashflow and increased credit risk across supply chains.

Key Developments

• Small business owners report rising stress over economic uncertainty and cashflow pressures
• Construction sector contraction continues as housebuilding activity slumps
• Mortgage rates increase as geopolitical tensions push up market borrowing costs
• Oil surges and gas supply risks raise fresh inflation concerns
• Winding-up petitions continue across multiple sectors of the UK economy

James Salmon, Operations Director.

SME & Business Environment

Small business owners losing sleep over economic pressures

A survey by Novuna Business Finance found that 79% of small business owners in London say they are losing sleep due to the challenges facing their businesses. Economic volatility and geopolitical uncertainty are the main concerns, cited by 50% of respondents, followed by fears about tax and interest rate increases and ongoing cashflow pressures.

Despite the anxiety, around 40% of business owners still expect their companies to grow during the early part of 2026. The findings highlight the emotional strain many entrepreneurs face as they navigate unpredictable economic conditions.

Why it matters: Stress around cashflow and uncertainty often leads businesses to delay supplier payments or tighten credit terms, increasing payment risk across the SME economy.

Construction slump deepens

The UK construction sector remained firmly in contraction during February. The S&P Global construction PMI fell to 44.5, down from 46.4 in January, marking the fourteenth consecutive month of decline.

Housebuilding was the weakest segment, scoring just 37 on the index, while wet weather also disrupted projects. Economists say uncertainty surrounding global energy markets and geopolitical tensions could further increase corporate caution in the sector.

Why it matters: Construction slowdowns typically ripple through supply chains, affecting subcontractors, suppliers and service firms that rely heavily on prompt payments from project work.

New car sales surge ahead of number plate change

UK new car registrations rose 7.2% in February to 90,100 units, the strongest February performance in more than two decades. Private retail demand drove the increase, with sales to individuals jumping 17.6% as buyers moved ahead of the March number plate change.

Fleet registrations also increased modestly, rising 1.8%. The automotive sector remains sensitive to interest rates and consumer confidence.

Job security confidence falls

Confidence in job security among UK households has fallen to its lowest level in six months, according to a survey by YouGov and the Centre for Economics and Business Research.

The index dropped to 92.6 in February, signalling rising concern among workers. Analysts say geopolitical tensions and energy market volatility could further weaken consumer sentiment if inflation rises again.

Why it matters: When households feel less secure about employment, consumer spending tends to slow, which can reduce revenues and strain SME cashflow.

Economy & Policy

Ministers urged to address 60% tax trap

Experts are calling on the Government to address a so-called 60% tax trap created by frozen income tax thresholds. Between £100,000 and £125,140 of income, taxpayers effectively face a marginal rate of around 60% due to the withdrawal of the personal allowance.

More than 2.1 million people are expected to lose some or all of their personal allowance by the 2026/27 tax year. The Office for Budget Responsibility expects the number of higher-rate taxpayers to rise sharply over the next decade.

Family businesses brace for inheritance tax changes

Family businesses are preparing for a new inheritance tax regime introducing a 20% levy on assets above £2.5 million. A survey by Family Business UK suggests almost 90% of business owners expect to be affected by the changes.

Firms with between 10 and 49 employees expect a particularly strong impact, with many owners concerned the policy could discourage investment and expansion.

China signals slower economic growth

China has set an economic growth target of between 4.5% and 5% for the coming year, the lowest target since 1991. The government is attempting to shift the economy toward consumer spending rather than infrastructure and investment.

Premier Li Qiang acknowledged the transition would be challenging, describing the shift to new growth drivers as “formidable”.

Property

Mortgage rates rise as markets react to conflict

Several UK lenders including HSBC, Nationwide and Coventry Building Society are raising mortgage rates following rising financial market volatility.

Swap rates have climbed since the outbreak of conflict in the Middle East, increasing lenders’ funding costs. Analysts expect more mortgage pricing adjustments across the market if volatility persists.

Why it matters: Higher mortgage costs reduce disposable income and housing activity, which can affect businesses reliant on consumer spending.

UK house prices reach record high

Average UK house prices rose 0.3% in February to reach a record £301,151.

However, analysts warn that geopolitical tensions could delay expected interest-rate cuts, which have helped support the housing market.

Why it matters: Housing activity affects a wide network of SME suppliers including builders, trades, estate agents and home improvement firms.

Industry & Investment

Berkshire Hathaway launches share buyback

Berkshire Hathaway has launched a share buyback programme after new CEO Greg Abel determined the company’s shares were trading below intrinsic value.

The conglomerate is currently sitting on more than $373 billion in cash but has struggled to identify large acquisition opportunities.

Heathrow faces operational challenges from flight disruption

Heathrow Airport says the Middle East conflict has forced around 300 flight cancellations and left about 18 aircraft stranded out of position due to airspace closures.

The airport has formed a task force with airlines to manage the disruption, although the financial impact so far has been limited.

Why it matters: Travel disruptions can affect tourism, trade and business travel, impacting revenues for many SMEs.

Middle East conflict disrupts aviation

More than 27,000 flights to Middle Eastern hubs have been cancelled since the conflict began, leaving thousands of passengers stranded.

Some airlines are beginning limited operations again using safe air corridors created by the UAE.

Why it matters: Global supply chains and logistics networks can be disrupted, delaying goods and payments.

Russia signals possible halt to gas supplies

President Vladimir Putin said Russia could stop supplying natural gas to Europe if more profitable markets emerge during the current geopolitical tensions.

European gas prices have already surged roughly 50% this week.

Why it matters: Rising energy costs can quickly squeeze SME margins and increase financial pressure across supply chains.

AI regulation tensions escalate

The US government has designated AI firm Anthropic as a potential supply-chain risk, while the company says it will challenge the decision in court.

Separately, Washington is considering new rules requiring foreign buyers of advanced AI chips from Nvidia and AMD to seek government approval.

Employment & Labour

London child population falling

London’s population of children under ten has fallen by more than 99,000 over the past decade, largely due to housing and childcare costs.

Analysts warn that falling birth rates could create long-term challenges for schools and the city’s workforce.

Global Market Summary

Global financial markets remained volatile as the Middle East conflict continued to dominate investor sentiment.

Equities

European equities fell during Thursday’s session, with the STOXX Europe 600 dropping around 1.5%. Investors reacted to rising energy prices and fears that inflation could accelerate again.

The major indices currently stand around:

  • FTSE 100: 10,464
  • STOXX Europe 600: 607
  • DAX: 23,983
  • CAC 40: 8,092

US markets closed sharply lower overnight.

  • Dow Jones: 47,954
  • S&P 500: 6,830
  • Nasdaq: 22,748

Asian markets were mixed:

  • Nikkei 225: about 55,620
  • Hang Seng: 25,757
  • Shanghai Composite: 4,124

Investors have been pulling funds from emerging Asian markets, with roughly $11 billion withdrawn this week.

Currencies

The US dollar strengthened as investors sought safe-haven assets.

  • GBP/USD: 1.3347
  • GBP/EUR: around 1.15

The stronger dollar reflects heightened geopolitical risk and expectations that central banks may keep interest rates higher for longer.

Commodities

Energy markets have experienced the biggest moves this week.

  • Brent crude: around $85 per barrel
  • WTI crude: around $81 per barrel

Oil prices are on track for their largest weekly rise since 2022 as shipping through the Strait of Hormuz remains severely disrupted.

Gold traded around $5,095 per ounce, supported by geopolitical uncertainty but partly restrained by the stronger US dollar.

Aluminium prices have also risen sharply, reflecting supply disruption concerns.

Overall, markets remain focused on geopolitical developments and the potential inflationary impact of higher energy prices.

Summary

Global markets remain under significant pressure as the Iran conflict enters its seventh day with no resolution in sight. The near-total halt of shipping through the Strait of Hormuz has driven oil prices to their strongest weekly performance since 2022, reigniting inflation concerns and triggering broad risk-off sentiment. US equities fell sharply overnight with the Dow plunging nearly 800 points, while Asian markets posted mixed results with the MSCI Asia Pacific Index on track for its worst week since the Covid crisis. The dollar strengthened to its biggest weekly gain since November 2024, while investors pulled $11 billion from emerging Asian equities. With WTI crude above $81 and Brent at $85, central banks including the ECB are maintaining cautious stances, and analysts are turning more defensive on risk assets amid heightened geopolitical uncertainty.

Insolvency Watch

Administrations (3)

  • HPL PROTOTYPES LIMITED
  • KASL PRECISION MACHINING LIMITED
  • WOODMANSEY FARMING COMPANY LIMITED

Liquidations (9)

  • ADNAAN AHMAD RESEARCH LTD
  • ATLAS INTERNATIONAL CONSULTING LTD
  • CARBON ZERO SERVICES LTD
  • DATANALYTICS LIMITED
  • EAP PROJECT MANAGEMENT LTD
  • KYOR CONSULTING LIMITED
  • MABEL AND MERLIN LTD
  • SHERIDAN WARD RECRUITMENT SERVICES LIMITED
  • UPTON MAJOR LTD

Winding-up Petitions (82)

  • A1 TREE SERVICES LIMITED
  • A&B HOME CARE LTD
  • ABU ZAR LIMITED
  • ADVANTAGE FILMS LIMITED
  • AE0 TRADING LTD
  • AHMED MEDICAL CONSULTANCY SERVICES LTD
  • ANNARD LIMITED
  • ARRA CONSTRUCT LIMITED
  • ATECA GROUP LTD
  • AUTO WORKS SERVICE CENTRE LTD
  • B&Z INTERNATIONAL LIMITED
  • BLUEFIELD CARE SERVICES LIMITED
  • BOB MULLAN MOTORS LIMITED
  • BROOMHILL INVESTMENTS LIMITED
  • BYM HORSHAM LIMITED
  • CAFE BRASILIA LIMITED
  • C&E GLOBAL GROUP LTD
  • CLICK CAPITAL LIMITED
  • CTA 2022 LTD
  • DAVID BARHAM FURNITURE LIMITED
  • DHALIWAL CONSTRUCTION LIMITED
  • DIRECT LINK SERVICES LTD
  • DJT SERVICES LIMITED
  • DSB GENERAL CONSTRUCTION LTD
  • DYNAMIC 365 SOLUTIONS LTD
  • EDGWARE SCRAP METALS LTD
  • EFFICIENCY HEALTH AND HOME CARE SERVICES LIMITED
  • EMPIRE HOLDINGS (U.K.) LIMITED
  • ENVIRO TECHNICAL SOLUTIONS (UK) LIMITED
  • E.P.H. SUPPLIES LTD
  • FARNHAM ASSETS LTD
  • FENCHURCH CONTRACTS LIMITED
  • FLOODLIGHT BROADCASTING NETWORK LIMITED
  • FOREST ROAD GREEN TEAM LTD
  • GEOFRAC LTD
  • GLOBAL TRUSTED SERVICES LTD
  • GORDOM LTD
  • GRAFF DEVELOPMENTS LTD
  • HAMA CONSULTANCY LIMITED
  • ICARE SOLUTIONS MERSEYSIDE LTD
  • IANS DOMICILIARY CARE LTD
  • IIGNITE LTD
  • IMPECCABLE HEALTHCARE SERVICES LIMITED
  • INDABA HOLDINGS LTD
  • INGEM CONSTRUCT LTD
  • JML CONSTRUCTION GROUP LIMITED
  • JUICY MUSIK LIMITED
  • K M R HAULAGE LIMITED
  • KINGCRAIG HOLDINGS LTD
  • LIKKU TECH LIMITED
  • LIZZY’S CAKES AND BAKES LIMITED
  • LPT FRIEGHT LIMITED
  • M K FURNISHINGS LTD
  • MARIAMA CARE LTD
  • MEGA CAR SUPERMARKET LTD
  • MORECARE SERVICES (UK) LTD
  • NICK ALLAN BUILDING & CARPENTRY LTD
  • NORTH CATERING POINTS LTD
  • NRG RESOURCING LTD
  • NSBS (UK) LIMITED
  • OAKLAND (FRO) LIMITED
  • PCA BUILD (N.I.) LIMITED
  • PCJ INTERIORS LTD
  • PRINCIPAL PROTECTION CP LTD
  • PROJECT HOUSE TRADING LTD
  • RBR WEST BROM LTD
  • REDWOOD ARMAGH LTD
  • RENAISSANCE PERSONNEL LIMITED
  • RETROFIT RENEWABLES LIMITED
  • RN FINANCIAL SOLUTIONS LTD
  • SALE TO SELL LIMITED
  • SALRITEX LTD
  • SDL ESCO LIMITED
  • SJW ORTHODONTICS LTD
  • SKY-HI SCAFFOLDING LTD
  • SOUTHERN SEATERS LIMITED
  • ST ROSE SOLUTIONS LIMITED
  • THE CONSTRUCTION GROUP LONDON LTD
  • THE CRAWFORD PUB COMPANY LIMITED
  • THE HEALTHY PET FOOD COMPANY LIMITED
  • THE LIFTING ROOM LTD
  • TOMGANDHI CONSULTING LIMITED
  • T.U INVESTMENTS LIMITED
  • UK CEMENT SERVICES LTD
  • VISLY LIMITED
  • WELLINGSTONE LTD
  • WELLS SUSTAINABLE SOLUTIONS LTD
  • WOODSTYLE LTD

What CPA Can Do For You

Economic uncertainty, rising costs and volatile markets all increase the risk of late payment and unpaid invoices. When businesses are under pressure, protecting cashflow becomes even more important.

CPA helps businesses strengthen their credit control with tools including:

  • CreditCare company credit reports
  • Ongoing debtor monitoring
  • Professional overdue account recovery
  • Early intervention before debts become write-offs

By acting early and consistently, businesses can improve payment performance while preserving valuable customer relationships.

To find out how CPA could support your business, call Peter Uwins, CPA’s National Sales Manager, on️ 020 8846 0000 (business hours) or email nsm@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.