UK Business News Today: 9 July 2026 | Economy, Markets & Insolvencies

Today’s business news is dominated by renewed concern over the pressure facing UK SMEs, with MPs warning that late payment, tax burdens, energy costs and high street pressures are not being addressed with enough urgency. A more positive IMF growth forecast offers some reassurance, but rising oil prices, tight electricity supplies, tax uncertainty and fresh insolvency notices show why businesses selling on credit need to stay close to cashflow, customer payment behaviour and credit risk.

James Salmon, Operations Director.

Opening Summary Paragraph

Today’s business news is dominated by renewed concern over the pressure facing UK SMEs, with MPs warning that late payment, tax burdens, energy costs and high street pressures are not being addressed with enough urgency. A more positive IMF growth forecast offers some reassurance, but rising oil prices, tight electricity supplies, tax uncertainty and fresh insolvency notices show why businesses selling on credit need to stay close to cashflow, customer payment behaviour and credit risk.

Key Developments

• MPs have criticised the government’s response to SME pressures, saying its approach to late payment and business costs is not ambitious enough.
• The IMF has upgraded UK growth for 2026 to 1% and expects inflation to return to the Bank of England’s 2% target more quickly.
• UK blue chips came under pressure as renewed US-Iran tensions pushed oil higher and unsettled markets.
• NESO issued another warning over tight UK electricity supplies during Thursday evening’s peak demand period.

SME & Business Environment

MPs warn government response to SME pressures is inadequate

MPs on Parliament’s Business and Trade Committee have expressed “serious concerns” about the government’s response to proposals aimed at helping small businesses facing pressures described as comparable to the pandemic. The committee said the government had only fully accepted six out of 36 recommendations and had too often restated existing schemes rather than bringing forward fresh proposals. Its earlier report highlighted late payment, high street costs, tax burdens, energy prices and crime as major pressures on small firms. Committee chair Liam Byrne MP said small businesses are the “backbone of Britain’s economy” but too many now feel they are carrying an impossible burden.

Why it matters: For SMEs selling on credit, this reinforces the need for stronger payment discipline, better customer monitoring and earlier action on overdue invoices while wider cost pressures remain intense.

Late payment remains central to SME pressure

The committee welcomed the government’s Commercial Payments Bill but said a proposed 60-day maximum payment term still does not go far enough. MPs said small business owners had repeatedly told them that 60 days is too long to wait and that the government should increase its ambition by seeking to enforce 30-day payment terms across the economy. Late payment is not just an administrative frustration; it can restrict working capital, delay supplier payments and weaken a firm’s ability to invest or hire. For businesses operating on tight margins, long payment terms can turn profitable sales into cashflow strain.

Why it matters: Faster payment terms would directly support SMEs that sell on credit by reducing the gap between supplying goods or services and receiving the cash needed to meet payroll, tax, rent and supplier bills.

Cost crunch continues for small firms

Since the committee’s report was published, the Federation of Small Businesses has warned of a new “cost crunch”. Energy standing charges are reported to be rising by 40%, business rates are expected to increase by 52% over the next three years, and minimum wage and statutory sick pay costs are also increasing. The committee said ministers need to rethink their approach before cost pressures worsen further. For SMEs, these pressures reduce the margin for error when customers pay late or disputes delay settlement.

Economy & Policy

IMF upgrades UK growth forecast

The International Monetary Fund has revised its UK growth forecast for 2026 to 1%, up from 0.8%. The forecast for 2027 remains unchanged at 1.3%. The upgrade reflects a less severe-than-feared economic impact from the conflict in the Middle East, although the UK is still expected to lag behind the US and Canada. The IMF’s revised 2026 outlook is more optimistic than forecasts from Berenberg and EY, which each expect growth of 0.8%.

UK inflation expected to return to target more quickly

The IMF also expects UK inflation to return to the Bank of England’s 2% target by mid-2027. It said the global economic impact of the Middle East conflict has been “better than feared”, suggesting disruption has been less severe than initially expected. Lower inflation would ease pressure on interest rates, input costs and household budgets over time. However, the benefit for SMEs may take time to appear in day-to-day trading conditions.

Voters expect taxes to rise under Andy Burnham

Polling indicates that more than 55% of voters expect taxes to rise under a government led by Andy Burnham, while just 9% believe he would oversee tax cuts. Mr Burnham has committed to Labour’s manifesto, which promises no increases in income tax, VAT or National Insurance. However, he is said to support a wealth levy and reportedly backs aligning capital gains tax with income tax. The story adds to wider uncertainty over future tax policy and business planning.

Tax & Government

Committee criticises response on business rates, VAT and HMRC

The Business and Trade Committee said the government had not sufficiently engaged with its recommendations on business rates, VAT, tax compliance and HMRC. On business rates, MPs said the government’s response set out measures from the 2025 Autumn Budget but did not fully acknowledge that rates have increased for many sectors. The committee urged ministers to be brave before more businesses and associated economic growth are lost. It also said the government rejected proposals to consider an online sales tax and rejected ideas for restructuring VAT.

Tourism tax warning

Anne Strickland, a researcher at the Taxpayers’ Alliance, has warned that an overnight visitor levy could cost the tourism industry £6bn and hinder economic growth. She argued that the UK already has a high tax burden on tourism and ranks poorly in global price competitiveness. UK tourism generated £52bn in tax revenue last year, and she warned that “suffocating an industry this valuable would be an act of economic self-harm”. Any additional levy would be closely watched by hospitality, leisure, accommodation and local supply-chain businesses.

Energy & Costs

UK grid operator warns of tight electricity supplies

The National Energy System Operator issued another warning over tight electricity supplies for Thursday evening, the third such alert this summer. NESO forecast a supply margin shortfall of around 1.2GW during the evening peak from 6:30pm to 10:30pm London time. The operator said the pressure was due to extreme temperatures across Europe reducing the availability of some generation. It stressed that the warning does not mean blackouts are expected and that such notices are often withdrawn once enough buffer capacity is procured.

Heatwave pressure exposes summer energy risk

Britain’s power system has traditionally faced greatest pressure in winter, but more frequent summer heatwaves are increasingly testing the grid. Low wind speeds have reduced wind generation, making the UK more reliant on gas-fired plants, nuclear reactors and imports. France has previously reduced nuclear output during heatwaves because rivers became too warm for adequate cooling, and further curbs could affect neighbouring countries. With Britain no longer using coal, backup options are more limited during stressed periods.

Housing & Property

Housing market slowdown shows signs of easing

The Royal Institution of Chartered Surveyors has reported cautious improvement in the housing market. New buyer inquiries showed the least negative response since February, with a net balance of 29% of property professionals reporting a decline, compared with 34% previously. Sales are expected to rise by 1% over the next year, while 8% of respondents expect prices to increase. However, new instructions to sell have fallen, pointing to supply constraints, and RICS head of market research Tarrant Parsons said June’s survey offered only “cautious encouragement”.

Employment & Labour

Bogus self-employment remains a concern on the high street

The Business and Trade Committee also criticised the government’s lack of a clear timeframe for consultation on employment status. MPs said bogus self-employment is leaving legitimate hairdressers and barbers unable to compete fairly. The government’s 2024 general election manifesto promised a consultation to create a simpler framework on the definition of workers, but the committee said the latest response only refers to a “targeted consultation”. MPs questioned whether that would meet the earlier promise to consult in detail on moving towards a single status of worker.

Global Market Summary

Markets unsettled by renewed Middle East tension

Global markets showed a mixed picture as investors weighed renewed US-Iran hostilities against hopes that tensions may remain contained. Stocks initially climbed and oil fluctuated as traders speculated that neither side wanted a full return to war. However, UK blue chips came under pressure after Donald Trump told the NATO summit in Turkey that the ceasefire with Iran was “over”, with renewed Middle East hostilities sending oil prices higher. The UK blue chip index gave up nearly 200 points in trading yesterday.

Equity markets

• FTSE 100: 10,410.17, down 78.87, or 0.75%.
• Euro Stoxx 50: 6,233.59, up 28.68, or 0.46%.
• DAX: 24,897.24, broadly flat.
• CAC 40: 8,270.92, up 18.26, or 0.22%.
• S&P 500: 7,482.71, down 21.14, or 0.28%.
• Dow Jones: 52,348.39, down 576.76, or 1.09%.
• Nasdaq: 25,870.65, up 51.96, or 0.20%.
• Nikkei 225: 67,743.85, up 924.80, or 1.38%.
• Hang Seng: 24,030.18, down 169.28, or 0.70%.

The strongest regional move came from Asia, where the Nikkei rose sharply and the CSI 300 gained 2.54%. Semiconductor shares advanced across Asia, Europe and US premarket trading, helped by strong demand for SK Hynix’s US listing and continued enthusiasm for artificial intelligence investment. In contrast, the FTSE 100 and Dow were weaker as oil, defence, healthcare and geopolitical concerns shaped sentiment.

Market drivers

The main drivers were Middle East tensions, oil volatility, interest-rate expectations and the AI investment theme. The US military reportedly hit around 90 Iranian targets to reduce Tehran’s ability to attack commercial shipping in the Strait of Hormuz. Traders viewed the situation as fragile but not yet a full return to war. Global bonds were modestly higher as an oil-driven sell-off eased, while the two-year Treasury yield fell two basis points to 4.20%.

Federal Reserve minutes showed that some committee members saw a case for a rate increase. Investors are now watching inflation data and Chair Kevin Warsh’s testimony for guidance on the future path of interest rates. For SMEs, the wider point is that energy prices, borrowing costs and customer confidence remain linked.

Currencies

• GBP/USD: 1.3392.
• GBP/EUR: 1.1723.
• EUR/USD: 1.1423.
• GBP/JPY: 217.60.
• USD/JPY: 162.49.

Sterling remained relatively firm against both the dollar and euro. A stronger pound can help importers by reducing the sterling cost of overseas goods, but it can create pressure for exporters if UK goods become less price competitive.

Commodities

• Brent crude: 79.03, up 1.01, or 1.29%.
• WTI crude: 74.41, up 0.89, or 1.21%.
• Gold: 4,101.64, up 24.21, or 0.59%.

Oil rose as Middle East tensions lifted supply-risk concerns. Brent near $79 and WTI above $74 matter for SMEs because transport, logistics, heating, delivery and manufacturing costs can all respond to fuel-market volatility. Gold also gained, suggesting investors were still seeking protection against uncertainty. Coffee rose 3.20%, while several agricultural commodities including corn, cotton, soybeans and sugar were lower.

Corporate movers

AstraZeneca fell 9.3% in London after a disappointing trial for Wainua, a gene silencer drug developed with Ionis Pharmaceuticals. PepsiCo narrowly missed estimates for second-quarter organic sales growth as earnings season began, while Levi Strauss fell 6% in premarket trading after its upgraded full-year forecast disappointed investors. Porsche deliveries fell 16% in the first half, dragged down by weak demand in North America and a sharp decline in China. Deutz agreed to buy military vehicle maker Flensburger Fahrzeugbau Gesellschaft for €1.6bn as it expands into defence.

Insolvency Watch

Administrations (1)

• ALCHEMY EXCHANGE LTD

Liquidations (6)

• AVA CONSULTANCY SERVICES LIMITED
• EMJ CONSULTING LIMITED
• MASELLI UK LIMITED
• MPL PUBCO LTD
• SILVERWOOD CONSTRUCTION INC LIMITED
• SYGNET SYSTEMS LIMITED

Winding-up Petitions (4)

• CEDARLINE VEHICLE SOLUTIONS LTD
• ECN CONTRACTORS LTD
• LI SAM VICKY CHIU LIMITED
• SMARTCORNERSTORE LIMITED

Winding-up Orders (1)

• A.D.A SERVICES LTD

Why stronger credit control matters when payment pressure is rising

Today’s lead story is a direct reminder that late payment remains one of the most serious pressures facing SMEs. Even where growth forecasts improve, businesses can still be placed under strain when customers stretch payment terms, delay settlement or become harder to chase.

CPA helps businesses protect cashflow through practical, ethical credit management support. CreditCare credit reports, debtor monitoring, overdue account recovery and credit control support can help businesses identify risk earlier, improve payment performance and recover overdue invoices 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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