Official figures show that 2,085 UK firms collapsed in April, with this the highest monthly total since June 2024 and a 3% increase on April 2025. The data for April means that there have been almost 8,000 insolvencies in the year so far. David Hudson, restructuring advisory partner at FRP, warned: “It’s likely that this rise in insolvencies is a harbinger of things to come.” Sonia Jordan, president of trade body R3, notes that many firms have been hit by higher labour costs and increased business rates, with these “coming on top of higher fuel and energy costs.”

Scottish small businesses are experiencing significant challenges due to rising energy and fuel prices, according to a survey by Novuna Business Finance. The research reveals that 83% of firms identify external factors as barriers to growth, with 50% citing macro-economic uncertainty. Around 40% of businesses are concerned about the effects of overseas conflict on prices, surpassing the UK average of 32%.

Analysis by the British Chambers of Commerce suggests that the conflict in the Middle East is significantly affecting British businesses, with 80% of more than 800 surveyed firms reporting an existing or expected impact. The poll shows that companies anticipate disruptions from rising energy prices and supply chain issues. KPMG forecasts that UK GDP growth will drop to 0.8% in 2026 due to these challenges.

Bank lending to non-financial companies fell to 59% of GDP in Q3 2025. Data shows that SME loans have fallen from 12% of GDP in 2011 to 6.5% in 2026.

The Government has been warned that changes to redundancy consultation rules could impose significant costs on businesses. Under the Employment Rights Act, firms may need to consult across the entire organisation for redundancies of 250 or more. Matthew Percival from the Confederation of British Industry says changes to redundancy rules “risk piling extra cost and complexity onto businesses at an already difficult time.”

Ruth Sunderland in the Mail says a wealth tax proposed by Labour leadership hopeful Wes Streeting could significantly impact private investors and small business owners. The plan aims to equalise capital gains tax with income tax, potentially doubling rates for top earners in a move Mr Streeting claims could raise £12bn. Critics argue that the plan may harm the UK’s business environment and suggest scrapping stamp duty on share trading instead. Ms Sunderland says the proposal “is at odds with the ambition of successive chancellors… to boost UK capital markets” and warns that it could “damage the UK’s reputation as a good place to set up a business and drive entrepreneurs out of the country.”

HMRC has issued a reminder about new tax rules for around 860,000 sole traders and landlords, highlighting that those earning over £50,000 must adopt digital tax reporting under Making Tax Digital for Income Tax.

Research from Invesco reveals a growing interest in investment trusts among younger investors, with 55% of those aged 25 to 34 likely to invest in trusts within six months, compared to 29% of all investors. While 9% of over-65s said they would use an investment trust, this jumps to 38% among 18 to 24-year-olds. The study also notes the impact of ‘financial influencers’, with it shown the 36% of investment trust holders follow finfluencers, compared to just 14% of other investors.

Deutsche Bank analysis suggests that “job hugging” is on the increase, with UK workers increasingly hesitant to resign. The report shows that a decline in vacancies means employees are increasingly unlikely to leave roles. Office for National Statistics figures shows that vacancies have fallen to 705,000 in the past three months, from a high of 1.3m in 2022. Jack Kennedy from Indeed notes that the jobs market “remains tough and has fewer opportunities”.