Business News Round Up (27/10/2026)
Insolvency peak passes for UK businesses, but structural pressure remains
Business failures in the UK are finally turning a corner, but the numbers will remain elevated for years to come, according to Allianz Trade’s October 2026 Insolvency Report. The trade credit insurer expects UK business insolvencies to drop 4% to approximately 25,600 cases in 2026, followed by a further 3% decline to around 24,800 in 2027. That reversal ends a five-year upward run, but it does not end the problem. Even at those reduced levels, insolvencies would remain 21% above pre-pandemic averages by 2027, and well above the figures seen before the succession of shocks that have buffeted UK businesses since Brexit. Construction has accounted for around 17% of all UK insolvencies in every rolling period tracked by the Insolvency Service through mid-2026, with wholesale and retail trade consistently at 15% to 16%. Hospitality and real estate follow closely.
Investment-led growth must increase: Rathbones
The UK needs to step up its pursuit of investment-led growth to help break the vicious cycle of tax hikes and weak growth. That’s the recommendation included in a report published today by wealth and asset management firm Rathbones. Building Prosperity focused on a number of areas where Rathbones feel practical reform can support sustainable growth across the country, helping raise living standards in the process. Key to that will be backing businesses showing ambition and drive to succeed. “For the UK economy to grow at a faster pace, it is imperative that the country’s most ambitious, dynamic, and innovative firms, and those who lead them, reach their full potential,” the report stated.
https://www.scottishfinancialnews.com/articles/investment-led-growth-must-increase-rathbones
HSBC profits surge lends weight to Healey’s tax plan
HSBC lent support to the Chancellor’s plan to hike taxes on banks after announcing a 32% surge in third-quarter profit. Ahead of Wednesday’s Budget, the Asia-focused bank said it was benefiting from favourable interest rates while avoiding hefty credit losses. However, there was slower growth at its wealth business. Pretax profit for Europe’s largest bank came in at $9.6 billion for the July-September quarter, in line with estimates compiled by HSBC. It also repeated the previous quarter announcement of a share buyback of up to $1 billion. It said expected credit losses tumbled 17% to $800 million as a result of lower charges linked to Hong Kong’s real estate sector as well as its UK and Mexican wealth businesses. But revenue for its wealth division was flat at $2.7 billion. That compares with 15% and 23% year-on-year revenue growth in the first two quarters.
Record number of UK firms in ‘significant’ financial distress ahead of the Budget
BTG Consulting, formerly Begbies Traynor Group, has revealed a record 738,144 UK businesses are in ‘significant financial distress’ in its latest third quarter Red Flag report. This is a 1.6% year on year increase on the same quarter the previous year. The sectors with the highest volume of ‘significant’ financial distress were: Support Services – 118,695 (+2.9% YoY, Q3 2025: 115,314); Construction – 108,340 (+4.6% YoY, Q3 2025: 103,551); Real Estate and Property Services – 99,908 (+9.7% YoY, Q3 2025: 91,088). Consumer-facing sectors recording year-on-year increases in ‘significant’ financial distress included: Bars and Restaurants – 18,866 (+5.0% YoY, Q3 2025: 17,971); Food and Drug Retailers – 19,269 (+7.3% YoY, Q3 2025: 17,959); Leisure and Cultural Activities – 20,298 (+1.7% YoY, Q3 2025: 19,963); Travel and Tourism – 3,975 (+2.0% YoY, Q3 2025: 3,899). ‘Critical’ financial distress in Q3 2026 fell 20.7% year-on-year to 44,033 businesses (Q3 2025: 55,530).