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

There is some encouraging news for UK businesses this Monday, with economic growth forecasts improving and business optimism reaching a two-year high.

But scratch beneath the surface and the picture is rather less comfortable. Recruitment is slowing, borrowing costs are rising, household finances are under pressure and proposed changes to tax collection could create significant cashflow challenges for smaller businesses.

Add volatile energy prices and continued international uncertainty, and the message for SMEs is clear: winning new business matters, but making sure customers pay for it is just as important.

James Salmon, Operations Director.

Key Developments

• UK growth outlook improves: KPMG forecasts 1.5% growth in 2026, while business optimism reaches a two-year high.
• Interest rates and inflation: Bank Rate has risen to 4%, with inflation potentially approaching 5% next year.
• Tax and cashflow concerns: The FSB warns that proposed changes to self-assessment payments could force small businesses to borrow.
• Employment market weakens: Permanent and temporary recruitment decline as employers respond to costs and uncertainty.
• Insolvency Watch: 56 distinct company notices have been supplied, including 7 administrations, 41 liquidations and 8 winding-up petitions.

Economy & Policy

UK growth outlook improves, but businesses remain cautious

There is some welcome encouragement for the UK economy, with KPMG upgrading its 2026 growth forecast to 1.5%, supported by investment in artificial intelligence, defence and infrastructure. That compares with an estimated 1% expansion in the eurozone.

KPMG expects inflation to average 3.2% this year before easing to 3% in 2027, although further energy shocks could undermine the outlook.

Meanwhile, BDO’s latest Business Trends report shows its output index rising to 100.46 in October, its highest level since July 2022. Business optimism also reached a two-year high, although its employment index remained subdued at 93.12.

The contrast is worth noting. Businesses may be seeing more opportunities, but many remain reluctant to expand their workforces while costs and uncertainty persist.

Why it matters: Improving demand is encouraging, but businesses selling on credit need to ensure additional turnover becomes cash in the bank rather than an expanding book of outstanding invoices.

Bank of England warns further interest rate increases remain possible

The Bank of England increased Bank Rate by 0.25 percentage points to 4% at its November meeting, responding to inflationary pressures arising from the Middle East energy shock. The Bank now expects inflation to approach 5% by the middle of 2027. the UK’s central bank+1

Chief economist Huw Pill has warned that further increases could be required if rising energy costs feed through into wages and wider consumer prices.

However, he believes the current situation differs from 2022, when the Bank implemented eight successive interest rate increases.

Financial markets are currently pricing in three further increases, although Pill stressed that decisions will depend on incoming economic evidence.

Why it matters: Higher interest rates increase the cost of funding stock, equipment and working capital, while financially stretched customers may take longer to settle their accounts.

House prices fall for fourth consecutive month

The UK housing market continues to show signs of weakness, with the latest Lloyds house price figures indicating that prices fell 0.6% in October, the fourth consecutive monthly decline.

The average property price stood at £296,285, representing an annual fall of 1.2%, the steepest since October 2023.

London experienced an even sharper annual decline of 3.1%.

Mortgage approvals were also down 19.4% year on year in September, while approximately 2.3 million fixed-rate mortgage deals are scheduled to expire during 2027.

Higher borrowing costs and continuing inflation are making potential buyers more cautious.

Why it matters: Weaker housing activity can reduce demand for construction, building materials, home improvements and professional services, increasing payment risks throughout those supply chains.

Household savings forecast to fall to a 25-year low

British households could face a prolonged squeeze on their financial resilience, according to projections from the Office for Budget Responsibility.

The household saving ratio is forecast to decline from 5.6% in 2025 to just 0.6% by 2031.

That would mean households putting aside only 60p for every £100 of disposable income.

The OBR also expects real household disposable income to grow by just 1% between 2019 and 2029, highlighting the limited improvement in living standards over an entire decade.

For businesses dependent on consumer spending, that suggests customers may have considerably less room for discretionary purchases or unexpected expenses.

Why it matters: Financially stretched households can weaken demand for consumer-facing SMEs, with reduced sales and slower payment behaviour potentially spreading through their suppliers.

Tax & Government

FSB warns proposed self-assessment reforms could create a cashflow crisis

Proposed changes to the way self-employed workers pay income tax are attracting growing criticism from business organisations and tax advisers.

From 2029, affected taxpayers could be required to make monthly or quarterly payments rather than the traditional twice-yearly instalments.

The Federation of Small Businesses has described the proposals as completely unworkable, warning that the transition could leave some self-employed people facing overlapping tax obligations.

The Office for Budget Responsibility estimates that the changes could bring forward around £17bn in Treasury receipts during 2029/30.

Critics argue that businesses with seasonal or irregular earnings could be forced to borrow to meet their obligations, undermining investment and growth. The number of self-employed workers and sole traders had already fallen by 157,000, or 3.7%, in the year to January 2026.

Why it matters: Businesses operating on credit terms must manage the difference between earning revenue and receiving payment. More frequent tax liabilities could create additional pressure when customer invoices remain unpaid.

HMRC plans direct recovery of tax debts from bank accounts

HMRC is set to receive expanded powers to recover certain outstanding tax debts directly from bank accounts from July 2029.

Under the reported proposals, automated deductions would apply to debts of up to £5,000 for individuals and £10,000 for companies.

The measures form part of a wider government effort to tackle the UK’s estimated £59.2bn tax gap.

The government also plans to recruit an additional 7,000 HMRC staff, although tax specialists have questioned whether recruitment, training and technology costs could reduce the financial benefits.

The direct recovery measure is projected to generate £50m in its first year and £320m by 2031/32.

Why it matters: Unexpected withdrawals from business bank accounts could significantly disrupt working capital, particularly where cash is already tied up in overdue customer invoices.

Making Tax Digital costs exceed £1bn

HMRC’s Making Tax Digital programme has reportedly cost £1.03bn, exceeding its original budget by more than £800m.

The initiative, launched in 2015 to modernise tax reporting, incurred another £142m in costs during 2025/26.

Its implementation has been repeatedly delayed, while some original plans, including mandatory quarterly reporting for all limited companies, have been abandoned.

The National Audit Office has criticised elements of the programme’s planning, while the Federation of Small Businesses has questioned its value for money.

Businesses have also incurred additional costs adopting compatible software and adapting administrative procedures.

Why it matters: Additional compliance costs reduce the resources available to SMEs, making efficient invoicing, credit control and cash collection increasingly important.

Government increases business rates relief for high street firms

Retail, hospitality and leisure businesses are set to benefit from an additional £33m in business rates relief following changes to government calculations.

Officials revised the relief to account for inflation, which stood at 3.5% in September.

The small business multiplier for retail, hospitality and leisure properties has been reduced from 39.7p to 39.5p, while the standard multiplier has fallen from 44.7p to 44.5p.

The adjustment provides some additional support to businesses facing rising employment, energy and property costs.

Supreme Court ruling brings greater scrutiny of LLP employment status

Limited Liability Partnerships are being encouraged to review their members’ employment arrangements following a Supreme Court ruling involving BlueCrest Capital Management.

The court examined arrangements under which traders received remuneration linked to individual performance rather than the firm’s overall profits.

Legal advisers say the ruling establishes a demanding standard for LLPs seeking to demonstrate that their members are genuinely self-employed.

HMRC is now focusing on whether members currently treated as self-employed should instead be classified as employees under the salaried members rules.

Uber faces £2.6bn VAT demand from HMRC

Uber has received a £2.6bn VAT assessment from HMRC concerning the tax treatment of passenger fares.

The dispute centres on whether VAT should apply to the entire fare or only the commission retained by Uber.

The company intends to pay the assessment while appealing to the tax tribunal.

Uber’s position involves its interpretation of a tour operators’ exemption, an approach that has come under scrutiny following a separate Court of Appeal ruling involving Bolt.

SME & Business Environment

Companies House data discrepancies raise questions over business records

A survey conducted by Board Intelligence has raised concerns about the reliability of information held by Companies House.

Among the general counsel and company secretaries surveyed, 39% reported discrepancies between their companies’ own records and information appearing on the public register.

While Companies House remains an essential source of corporate information, the findings underline the importance of checking the accuracy and currency of records.

For businesses extending trade credit, relying exclusively on a single information source may leave important risks undetected.

Why it matters: Credit decisions should be supported by reliable company checks, current credit reports, payment history and ongoing monitoring rather than public records alone.

Employment & Labour

UK hiring declines as employers become more cautious

Britain’s brief recruitment recovery appears to have stalled, with the latest KPMG and Recruitment and Employment Confederation survey showing permanent hiring declining for the first time in four months.

The permanent placements index fell from 50.9 in September to 46.6 in October, moving below the 50 threshold that separates growth from contraction.

Temporary hiring also weakened, with its index declining from 50.9 to 48.9.

Retail and hospitality have experienced particularly weak recruitment demand, while employers remain concerned about rising employment costs and changes to employment rights.

Separately, the ITEM Club expects unemployment to reach 5.1% by mid-2027, compared with 4.7% in the three months to August.

Youth unemployment review calls for more than £6bn in support

A review led by former minister Alan Milburn is expected to recommend increasing annual spending on employment support from £3.7bn to more than £6bn.

The proposals aim to address youth unemployment, currently reported at 15.6%, and help almost one million young people into employment.

Prime Minister Andy Burnham is expected to consider funding the programme through reallocations of existing government spending rather than additional taxation.

However, the OBR has warned that it would need convincing evidence before incorporating anticipated employment improvements into its economic forecasts.

UK employee engagement reaches record low

Employee engagement in Britain has fallen to concerning levels, according to research highlighted by the Sunday Telegraph.

Only 10% of UK workers are reportedly engaged in their jobs, compared with 17% in 2012.

Separate Resolution Foundation research suggests fewer than half of Britons want to work full-time, while the proportion prepared to work harder than required has fallen from 69% in 2015 to 55% in 2025.

Commentators have linked the trend to stagnant wages, rising living costs and dissatisfaction with working conditions.

The concern for employers is that declining motivation may contribute to weak productivity, even where businesses are maintaining staffing levels.

Energy & Costs

UK electricity grid warns of tight supplies as wind generation falls

Britain’s National Energy System Operator issued a precautionary Electricity Margin Notice on Monday morning as low wind speeds reduced renewable electricity generation.

The operator anticipated a potential supply margin shortfall of around 1.4 gigawatts during the morning peak and requested additional electricity generation from the market.

NESO stressed that the notice was precautionary and did not represent a warning of power cuts.

Despite the UK’s expanded wind generation capacity, periods of low wind continue to increase reliance on gas-fired power stations, nuclear generation and electricity imports.

The operator has also warned that spare electricity capacity this winter is expected to be lower than last year.

Energy companies could gain access to customer income and tax information

The government’s proposed Energy Independence Bill would allow energy providers access to specified customer income, tax and property valuation information.

Ministers argue that the measures would help companies target financial support towards households most in need, with discounts partly funded through levies on wealthier households.

However, opposition politicians have raised concerns about privacy and the extent of information sharing.

The debate highlights the challenge of providing targeted energy support while maintaining appropriate safeguards for personal financial information.

Retail & Consumer

London Underground strikes threaten Christmas trading

London businesses face another potential disruption during the crucial Christmas trading period, with RMT-affiliated Underground drivers announcing eight planned strikes.

The first is scheduled for 26 November, with further action planned for 17 and 19 December, including the final weekend before Christmas.

Additional strike dates are scheduled for 4 and 6 January and 17, 23 and 25 February, with each action due to begin at noon.

The dispute concerns Transport for London’s proposals for optional four-day working arrangements.

TfL argues that the changes would improve efficiency, while the RMT believes they could weaken working conditions and employment protections.

International & Trade

Burnham seeks closer UK-EU relationship ahead of November summits

Prime Minister Andy Burnham is preparing for two significant meetings with European leaders as his government explores opportunities for a closer relationship with the European Union.

The first is the European Political Community meeting in Dublin, followed by the UK-EU summit scheduled for 20 November.

Negotiations currently cover issues including agrifood trade, youth mobility arrangements and emissions trading.

Burnham has suggested that future options could include a customs union, single-market membership, a bespoke relationship or even rejoining the EU.

However, the proposals remain politically contentious, with concerns expressed within Labour and opposition parties about reopening the Brexit debate and the potential compromises involved.

Why it matters: Reducing trade barriers could lower administrative costs and improve cashflow for UK importers and exporters, but businesses need clarity about what is agreed before making investment decisions.

COP31 opens in Turkey with climate action under scrutiny

The United Nations COP31 climate summit opens in Antalya, Turkey, with the conference running from 9 to 20 November. United Nations+1

More than 80 world leaders are expected to attend as governments examine progress towards international climate commitments, including efforts to limit global warming as close as possible to 1.5°C.

The discussions come amid concern about extreme weather, energy security and the pace of investment in cleaner technologies.

Attention will focus on whether governments can turn existing commitments into practical action.

Industry & Investment

Nvidia investigation adds uncertainty to global technology markets

Nvidia’s board has announced an investigation into reports that chief executive Jensen Huang may have been targeted in an alleged foreign espionage operation.

The investigation follows reports that Huang had a relationship with a woman suspected by American officials of sharing information with China.

Huang has acknowledged an extramarital affair, while China has rejected the espionage allegations.

Nvidia stated that it had no reason to believe national security or company secrets had been compromised.

The developments have unsettled investors at a time when technology shares are already experiencing significant volatility.

Over-55s plan £8.3bn in gifts ahead of inheritance tax changes

Research by Interactive Investor suggests that more than 2.8 million people aged over 55 intend to gift approximately £8.3bn to younger family members before April 2027.

The planned transfers come ahead of changes to the inheritance tax treatment of unused pension savings.

Among retirees surveyed, 37% said reducing potential inheritance tax liabilities was a motivation for giving away wealth.

The findings suggest that changes to tax rules are influencing financial decisions across older households.

Global Market Summary

Global markets have started the week attempting to recover from a difficult period, with European shares moving higher, Japan recording a strong rebound and US futures pointing towards a firmer opening.

However, the improvement follows significant volatility driven by technology-sector concerns, the Middle East conflict and expectations for further interest rate increases.

UK and European Markets

European equities opened higher on Monday, recovering some of Friday’s losses.

The recovery reflects improved investor sentiment following last week’s selloff, with European shares attracting attention partly because of their comparatively limited exposure to the largest US artificial intelligence companies.

Investment bank Citi has upgraded its assessment of European equities while reducing its preference for US shares and global technology.

European company earnings have also been encouraging. Morgan Stanley estimates that European earnings are growing by approximately 28% year on year, approaching the 30% reported for US companies.

Italian banking group UniCredit provided another positive signal, reporting third-quarter net income of €3.26bn against expectations of €2.8bn and raising its full-year guidance.

United States

American equities closed mixed on Friday, with the S&P 500 recording its fourth consecutive weekly decline despite modest gains on the final trading day.

Technology shares recovered some ground on Friday, but wider concerns about AI investment, regulation and valuations continued to influence markets.

The latest developments involving Nvidia have added uncertainty, with its shares falling approximately 5% to 6% in premarket indications on Monday.

Hedge funds also reportedly reduced their exposure to global technology stocks at one of the fastest rates on record during the previous week.

Despite this, US futures were higher on Monday morning, with S&P 500 futures indicating a rise of approximately 0.7%.

Lower oil prices have helped support sentiment, although investors remain sensitive to political developments, inflation and future Federal Reserve decisions.

Asian Markets

Asian markets recorded a mixed but generally more positive start to the week.

Taiwan recorded the strongest recovery following intervention by authorities to stabilise its stock market.

Measures included restrictions on short selling and the availability of a NT$500bn financial stabilisation fund.

Japan’s Nikkei also rose strongly, benefiting from a recovery in technology-related shares.

Meanwhile, China extended its suspension of certain retaliatory tariffs on US goods for another two months, although a 10% blanket tariff remains in place.

Currencies

Sterling strengthened against the US dollar following the Bank of England’s interest rate increase, while remaining largely unchanged against the euro.

The US dollar weakened as investors responded to falling oil prices and signs of improving risk sentiment.

Commodities

Energy markets remain particularly important for UK businesses because changes in oil prices affect transport, logistics and manufacturing costs.

Oil prices have fallen sharply following suggestions of possible diplomatic progress in the conflict involving Iran.

WTI declined by more than 16% during the previous week, its largest weekly fall since April 2020.

Nevertheless, regional tensions remain unresolved, meaning energy prices could continue to move sharply in response to developments.

Gold benefited from a weaker dollar and continuing geopolitical uncertainty, while copper prices strengthened as investors responded to developments in US-China trade relations.

Government Bonds and Borrowing Costs

Government bond yields remained relatively stable on Monday morning, although borrowing costs continue to reflect concerns about inflation and future central bank decisions.

For SMEs, these figures are more than financial-market statistics. Higher borrowing costs can increase the expense of overdrafts, asset finance, property loans and other facilities used to support day-to-day operations.

What the markets mean for SMEs

The market recovery offers some encouragement, but uncertainty over energy, interest rates and international trade remains considerable.

For businesses selling on credit, the priority is to maintain sufficient liquidity to manage higher operating costs and unexpected delays in customer payments.

Insolvency Watch

Administrations (7)

• ENDORPHIN DEALERS LTD
• HONNACOTTS MEADOW DEVELOPMENTS LTD
• NORTH MEADOW DEVELOPMENTS LTD
• REHAUS FURNITURE LIMITED
• SOCIALLY RECRUITED LTD
• STERLING PLASTERING LIMITED
• URBAN VILLAGE CAP1 LIMITED

Liquidations (41)

• 525 HERTFORD ROAD LIMITED
• AKERS REMOVALS LTD
• ALBEMARLE ESTATES GROUP LIMITED
• AQUA OPERATIONS HOLDING LIMITED
• ARDMONA (UK) LIMITED
• BBJ PROPERTY HOLDINGS LIMITED
• BENEDICT COMMERCIAL ESTATES LTD
• BYTH ESTATES LIMITED
• CSS FINANCE CONSULTING LIMITED
• D. R. WEDGEWOOD LIMITED
• D3 WORKPLACE LTD
• DELBANCO MEYER & COMPANY LIMITED
• FCONSULTING LTD
• FINANCE & LEASING (LONDON) LIMITED
• FM WASTE LIMITED
• GLENNINA LTD
• IMPLEMENTATION INTELLIGENCE LIMITED
• IWC INTERVENTIONS LIMITED
• JOHN NORDON CONSULTING LIMITED
• JPF CAD & BIM SOLUTIONS LIMITED
• L’ESCAILLON LIMITED
• LCDC HOLDINGS LTD
• LUMIVEX LTD
• MANNION LIMITED
• NHPOR HOLDINGS LIMITED
• NWM LIMITED
• ORBS CONFERENCES LTD
• PACE PROJECTS & DEVELOPMENTS LIMITED
• PENTAGON ELECTRONICS LIMITED
• PROMONTORIA BATTERSEA LTD
• RAPIDROP TOP HOLDCO LIMITED
• S B RAWAL LIMITED
• SBS LEISURE HOMES LIMITED
• SMN DESIGN & CONSTRUCTION LIMITED
• SOLUTIONS WITH WINGS LTD
• SPIN BOSON LIMITED
• STAGETREND LIMITED
• THIAZENE LIMITED
• VALNOVUM LIMITED
• WARWICKS OF PLYMOUTH LIMITED
• WHITE TESTING (UK) LIMITED

Winding-up Petitions (8)

• BLACK AND MCCORRY LIMITED
• CHARLES HOPE APARTMENTS TRADING LIMITED
• HOBAN WASTE MANAGEMENT LTD
• ICF STORE LTD
• IDEAL MINI MARKET LTD
• MOANING TOAD LTD
• NORTH EDINBURGH CHILDCARE
• NORTH EDINBURGH CHILDCARE ENTERPRISE LIMITED

A winding-up petition is a legal application and does not, by itself, mean that a company has been wound up. Likewise, the appointment of liquidators can occur in different circumstances and does not necessarily establish that a business was insolvent.

For credit managers, these notices provide a reason to review existing exposures and investigate relevant counterparties, rather than automatically assuming that every company listed represents an unpaid debt risk.

Keeping cash moving when costs and risks are rising

There is a recurring theme running through today’s news.

Businesses are being encouraged by improving growth forecasts, but many are still managing higher costs, uncertain demand and increasing pressure on their finances.

It is perfectly possible for a company to be growing, winning new orders and reporting healthy sales while experiencing serious cashflow difficulties.

That is particularly true for businesses supplying goods or services on credit.

When customers take longer to pay, the supplier effectively finances their operations. Meanwhile, the supplier’s own wages, taxes, energy bills and other obligations still need to be met.

Good credit management is therefore not simply about recovering overdue invoices. It is about preventing avoidable financial pressure before it develops.

CPA helps businesses protect their cashflow through:

• CreditCare credit reports: Supporting informed decisions about customers and appropriate credit limits.
• Debtor monitoring: Identifying changes in customers’ financial circumstances that may indicate increasing risk.
• Credit control support: Helping businesses maintain consistent and efficient payment processes.
• Overdue account recovery: Encouraging prompt settlement through professional, ethical and considerate communication.
• Customer relationship protection: Helping businesses recover what they are owed while preserving valuable commercial relationships.

With experience dating back to 1914, CPA understands that successful credit management should protect both revenue and customer goodwill.

If your business has overdue invoices or you are concerned about customer payment performance, CPA can help.

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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