Business News Round Up (26/05/2026)
More firms taking out loans for cash flow over expansion
More SMEs are taking out loans to manage cash flow pressures and existing debt rather than fund long-term expansion, according to new research. Analysis of data by Funding Circle reveals that firms are increasingly borrowing primarily for working capital purposes, up 17% to 37% to £533 million year on year. This is said reflect a more uncertain environment where firms prioritise cash flow resilience over capital expenditure. At the same time, refinancing existing loans has increased by 33% to £88m, while borrowing to cover tax payments has risen by 29% to £25m. Tax-related borrowing also shows the strongest increase in average loan size (+13% YoY), suggesting that firms are not only more frequently drawing on credit for tax liabilities but are doing so at higher amounts per facility. This is most likely driven by cash flow timing pressures and broader fiscal drag effects.
Global trade confidence takes a battering due to conflicts and Trump tariffs
Global trade confidence is at its lowest level for 12 months, with only one in four exporters expecting to grow sales this quarter. Just more than half of globally-trading firms (51%) said they increased exports in Q1 2026 – down 12 percentage points on the same period last year. And only 34% broke into a new market for the first time in the first three months of the year – down 13 points on Q1 2025. The findings of the UK Trade Barometer lay bare the impact of geopolitical issues on export patterns and indicate the Government needs to pull all available levers to kick-start growth in the wider economy.
ACCA calls for pragmatic economically focussed UK/EU relations
ACCA (the Association of Chartered Certified Accountants) is calling for the UK and the European Union (EU) to work for business and build stable, predictable and functional trading arrangements. In a submission to the House of Commons’ UK Business and Trade Committee on its call for evidence on trade with the EU, ACCA says it sees four priority areas for strengthening trade: Mobility of professional and skills recognition; Regulatory co-operation and reduction of non-tariff barriers; Supporting small and medium sized enterprises (SMEs) engaged in cross-border trade; and Digital trade and data co-operation. Glenn Collins, head of technical and strategic engagement, ACCA, said: “While we’ve seen in the UK in the last few days political debate around Brexit continuing, in the context of an EU-reset we would encourage the Committee to lead dialogue on issues which we believe would have a material impact on trade.”
Manufacturers call for reforms to planning system to boost economic growth
Manufacturers are calling for reforms to the planning system to help boost economic growth. Make UK said failure to improve the system risks failing to deliver ambitions such as industrial strategy, regional development and decarbonisation. Make UK said its research showed manufacturers’ widespread dissatisfaction with the current system which it described as “not fit for purpose”, overly complex and leading to delays and increased costs. The situation is deterring business investment and acting as a drag on the UK’s economic potential, said the report. Make UK is calling for much faster and bolder action than is currently taking place with the Planning and Infrastructure Bill.