The US has reduced the EU's tariff from 15% to 10%, matching the UK's rate, but certain EU sectors now enjoy lower tariffs than their UK counterparts, putting British businesses at a disadvantage. However, the UK secures zero tariffs on Scottish whisky.
UK businesses like Glow For It, Malik Butchers, and Adorina are experiencing substantial growth and sales, with over 40% of some sales coming from TikTok Shop UK's live shopping events. This trend is reshaping consumer behavior, though a debt advice service warns of potential overspending risks.
UK Trade Secretary Peter Kyle is hosting a Chinese delegation to launch an initiative aimed at boosting UK services exports to China. British firms like Brompton Bikes and HSBC are participating, alongside Chinese companies JD.com and ICBC bank.
Andy Haldane, president of the British Chambers of Commerce, proposes linking over £50bn in pension tax relief to investments in UK businesses. This aims to address a funding gap for small- and medium-sized enterprises and introduce a "home bias" in retirement savings.
A new £20m National Crime Agency unit will target UK retail businesses like vape stores and mini-marts suspected of laundering £1bn of criminal money annually. The initiative aims to combat tax evasion, counterfeit goods, and organised crime on high streets.
A BBC investigation reveals people smugglers are using UK-registered businesses, including a phone shop, wholesale business, and car wash, to facilitate payments for illegal Channel crossings. Migrants are directed to deposit cash or make electronic transfers to these firms, which then send the money to smugglers in France. Experts express concern over the brazen attitude of smugglers and the difficulty authorities face in tracing and recovering profits from the smuggling trade.
The UK's Competition and Markets Authority (CMA) is investigating Microsoft for potential anti-competitive practices in its business software suite, including Windows, Office, and AI-powered tools, to determine if bundling and default settings hinder customer switching and interoperability with rival products.
Rolling coverage of the latest economic and financial newsStarmer faces fight to survive as Streeting and Rayner eye leadership bidsGovernment bond yields are rising across the board this morning, although UK debt is leading the losses.US and eurozone borrowing costs have also pushed higher, on concerns that the lack of progress towards ending the Iran war will lead to higher oil prices, more inflation, and higher interest rates.Inflationary headwinds as a consequence of the conflict in the Middle East are weighing on a number of UK businesses. We have already heard from companies like Next, Asos, Sainsbury’s and WH Smith which have warned of higher costs. Now shares in Victrex have shed almost 6% today on the back of a profit warning. It anticipates weaker annual profit before tax of between £42m and £44m for fiscal 2026, falling short of estimates for £46.6m. First half underlying pre-tax also profit dropped by 18% to £19m.The UK mid-cap polymer maker says the Iran war will push up energy and raw material inflation. The company is responding by reducing headcount by 10% to cut costs elsewhere. Continue reading...
The number of UK businesses in critical financial distress rose by 36.9% in Q1 2026 compared to Q1 2025, reaching 62,193 companies, according to insolvency practitioners Begbies Traynor. All 22 monitored sectors saw increases, with hospitality, leisure and sports businesses worst affected. The restructuring firm blamed tax rises imposed by Chancellor Rachel Reeves and economic fallout from the Middle East conflict, warning that zombie businesses are increasingly likely to fail.
The number of UK businesses in critical financial distress rose by 36.9% in Q1 2026 compared to Q1 2025, reaching 62,193 companies, according to insolvency firm Begbies Traynor. Hospitality, leisure, and sports sectors were worst hit, with hotel firms seeing a 69.3% increase in critical distress. The firm blamed tax rises imposed by Chancellor Rachel Reeves and economic fallout from the Middle East conflict, warning that zombie businesses could fail this year.
UK exports to Middle East fell 20% year-on-year in March, with certificates of origin dropping from 15,437 to 12,360. The British Chambers of Commerce reports firms face less reliable trade routes, rising costs and geopolitical risks, with the Strait of Hormuz badly disrupted. The CBI also shows UK companies increasingly pessimistic about the economic outlook.
The UK’s National Cyber Security Centre and agencies in nine other countries have warned British businesses to step up vigilance against China-linked hacking ploys that exploit everyday devices like wifi routers for espionage. The advisory warns of a major shift in Chinese tactics using so-called covert networks or botnets to obscure attack origins, with the NCSC believing the majority of China-nexus threat actors are using these networks. In one example, a Chinese business created a covert network infecting 200,000 devices worldwide.
