Business News Round Up (25/09/2026)
Rate rise likely amid concerns over rising oil price
A rise in the cost of borrowing looks increasingly likely after two of the Bank of England’s interest rate-setters hinted at changing their vote from hold to hike in the wake of rising energy prices. Clare Lombardelli and Sarah Breeden, two of the Bank’s deputies who sit on the monetary policy committee, voted to keep interest rates unchanged at its meeting last week. Three-of-nine members voted to increase borrowing costs at its last two meetings. However, Governor Andrew Bailey warned that a rate rise could be imminent and yesterday the two deputies spoke about their concerns over rising oil prices. Traders are forecasting four interest rate rises from the Bank in the next 12 months. Ms Lombardelli told a conference in Warsaw: “The longer higher energy prices persist, the greater the risk that indirect effects build and that inflation expectations, wage bargaining and price-setting behaviour begin to adjust in response.”
Resilient regions could unlock stronger UK growth, Barclays says
New Barclays analysis finds households and businesses have built resilience following repeated economic shocks, but uncertainty is holding back spending, investment and growth across the UK. Converting resilience into growth: the role of regional policy draws on Barclays’ proprietary data and business and consumer research to examine economic resilience across consumption, investment and trade. It argues that devolution and more locally tailored policymaking could help unlock growth by responding to the different strengths and barriers facing individual regions. The analysis finds that consumers have strengthened their financial buffers following several years of inflationary and geopolitical pressure. The household savings ratio has remained elevated compared to pre-Covid averages, with a quarterly average of 9.6% in 2025 compared to 5.8% in 20191, while UK adults report holding enough savings, on average, to cover essential living costs for around seven months if they were to lose their main source of income.
NI’s economic output rises, but businesses warn of rising costs
Economic activity in Northern Ireland in the second quarter of this year grew faster than the UK and Republic of Ireland, according to official figures. Northern Ireland’s economic output, which is broadly equivalent to UK GDP, rose by 2.3% in the year to June. Comparing economic activity in both NI and UK, NI had stronger growth over the year. Ireland’s GDP increased by 10.2% over the latest quarter, but its “Modified Domestic Demand” (MDD), which removes the distorting effects of globalisation, experienced a decline of 0.8% over the quarter. That’s compared to quarterly growth of 1% in Northern Ireland. This growth was driven by an increase in the production sector, which includes manufacturing.
https://www.bbc.co.uk/news/articles/c6vgywjxv14po
Scottish insolvency export urges business owners to consider under-used lifeline for struggling firms
A Scottish insolvency practitioner is urging business owners to consider a potential under-used lifeline to save their business. Christine Convy, director of Dunedin Advisory, who is a Chartered Accountant and licensed insolvency practitioner with more than 25 years’ experience in restructuring and insolvency, highlighted a little-known section introduced through the Corporate Insolvency and Governance Act 2020. The Part A1 Moratorium section of the Act provides eligible companies with an initial 20-business-day period of protection from certain creditor enforcement action, giving directors time to assess their position and explore restructuring or rescue options. The process is overseen by a Monitor, who must be a licensed insolvency practitioner. Convy has successfully used the moratorium as part of restructuring strategies for Scottish SMEs, working with company directors and their legal advisers to prepare applications and navigate the process.