The short version. Borrowing has just become dearer: Bank Rate rose to 4.00% this week, the first rise since August 2023. Inflation is 3.5%, wage costs step up again in April 2027 and employer NICs are at 15%. Company insolvencies are lower than a year ago, but still high. For most SMEs that means tighter margins and a lender who looks harder at interest cover.
Most variable-rate SME borrowing reprices off Bank Rate. A 0.25 point rise adds about £375 a year of interest for every £150,000 of variable borrowing. The next decision is on 17 December.
Prices your suppliers charge you. Services inflation is 3.7%, which matters most to businesses where wages are the main cost.
Core CPI, which leaves out food, energy, alcohol and tobacco, is 2.8%. The gap shows how much of the headline rate comes from volatile items.
For a business with 10 staff on the minimum, that is about £10,400 a year more in wages before employer NICs and pension.
The threshold was cut to £5,000 at the same time, so the cost of each extra hire is higher than it was before April 2025.
49.9 per 10,000 companies in the last 12 months, against 52.8 a year earlier. August 2026 was 1,953. Insolvencies are falling, from a high level.
Where the numbers have been since 2012
Each chart runs from January 2012 to the latest release, except the SME loan rate, which the Bank of England only publishes from January 2016. Hover or tap a chart to read a month. The figures come straight from the Bank of England, the ONS and the Insolvency Service; the links under each chart go to the series.
Latest points: Bank Rate to 5 November 2026, SME loan rate, CPI and insolvencies to September 2026, pay growth and unemployment to the three months June to August 2026, output to August 2026, sterling to October 2026. Data as released; the ONS revises its figures. What a weaker or stronger pound or higher rates do to a company's margins is in the free calculator.
What it means for the decision in front of you
| If you are | Look at | Why |
|---|---|---|
| Growing | CPI, services CPI, National Living Wage, employer NICs | These set your cost base. Check that your price rises and your forecast margins allow for the April 2027 wage step and for supplier price increases. |
| Borrowing | Bank Rate, insolvencies | Bank Rate sets your interest bill. Insolvencies shape how cautious lenders are. Test your interest cover at 1.5 and 2.5 points above today’s rate with the free calculator. |
| Selling | Bank Rate, insolvencies, your own margins | Buyers fund purchases with borrowing and price in risk. Higher rates make financing harder. Buyers look closely at margins that have fallen as costs have risen. |
Coming up
| Date | Release | Published by |
|---|---|---|
| 17 Nov 2026 | Company insolvencies, October | Insolvency Service |
| 18 Nov 2026 | Consumer price inflation, October | ONS |
| 17 Dec 2026 | Bank Rate decision | Bank of England |
| 1 Apr 2027 | National Living Wage rises to £13.21 | GOV.UK |
Where we get the numbers
Every figure above comes from the body that publishes it, linked in each box. We update this page after each release. We do not forecast, and we do not give a view on where rates or inflation are heading. We show what has been published and what it means for the arithmetic of a business.
The Bank of England and the ONS publish more series than shown here, including effective interest rates on new loans to SMEs and monthly GDP. We will add those once we have a way to keep them current.
See what these numbers do to your business
The free calculator shows what a weaker pound, higher interest rates or a change in sales would do to your margin, profit and interest cover. Free, with no email needed.
This page gives general information for UK limited companies and LLPs. It is not advice. Figures are as published at the date shown and may be revised.