United Kingdom

Insolvency-related activity across the UK rose sharply in February, with Yorkshire and the Humber recording a 39% increase, according to data from R3, the UK’s insolvency and restructuring trade body, East Midlands Business Link reported. The East Midlands (79%) and South West (77%) saw the most significant jumps, while Northern Ireland was the only region to see a decline (-38%). The data from Creditsafe, includes liquidator and administrator appointments and creditors’ meetings.

The head of the soon-to-be axed Payment Systems Regulator conceded that his organization was a “reasonably easy target” as the UK government hunts for ways to slash red tape, Bloomberg News reported. Prime Minister Keir Starmer announced on Tuesday the UK will fold the PSR into the Financial Conduct Authority. David Geale, the PSR’s interim managing director, said he had become aware the agency could be on the chopping block around late January, when the Chancellor of the Exchequer Rachel Reeves made it clear the Treasury was pursuing a deregulation agenda in her push for growth.

The UK financial watchdog has said it is gearing up to launch an industry-wide redress scheme for customers who were mis-sold car finance as it prepares for next month’s landmark Supreme Court case on the sector, the Irish Times reported. The Financial Conduct Authority said on Tuesday that any redress scheme would require banks to contact customers who have lost out due to “widespread failings” and offer them appropriate compensation, under rules overseen by the watchdog.

Sales in U.K. stores grew modestly in February despite the Valentine’s day sales boost as budget-squeezed consumers stay away from big-ticket expenses, the latest report from the British Retail Consortium and KPMG showed, the Wall Street Journal reported. U.K. total retail sales for the four weeks to March 1 rose 1.1% on year. This was below the three-month average growth of 2.4% and 12-month average growth of 0.8%, the BRC said on Tuesday. The increase was driven by the food segment, with sales up by 2.3%, while nonfood sales were flat on year.

London is at risk of being swamped by burst pipes and sewage leaks if Thames Water is forced into an emergency nationalisation later this month, The Telegraph reported. Insiders have expressed growing concerns that maintenance and repair works could grind to a halt if a multibillion-pound private sector-led bailout is rejected by the Court of Appeal in the coming days. A reversal of a £3bn rescue deal, which was sanctioned by the High Court last month, would trigger an immediate cash crisis at Thames and potentially force ministers to step in.

It is only "a matter of time" until another Premiership club goes bust unless there is "radical change" according to the administrator who oversaw London Irish's insolvency, BBC.com reported. London Irish, Wasps and Worcester went out of business during the 2022-23 season leaving the top flight of English rugby with only 10 teams. A parliamentary report in January 2023 concluded that the financial situation of elite clubs was unsustainable.

Rachel Reeves risks being forced to nationalise Thames Water just two days before her Spring Statement in a move that would force the Chancellor to tear up her spending plans, The Telegraph reported. The Treasury is drawing up fresh contingency proposals for Britain’s biggest water supplier ahead of a court showdown that could plunge the business into special administration. The threat of special administration is still looming over Thames Water, which has 16m customers, despite the High Court approving an emergency loan from its lenders last month.