Recent figures from the Office for National Statistics (ONS) indicate a troubling trend in the UK’s employment market, with the unemployment rate rising to 4.3% in the three months to September, up from 4% previously. Job vacancies fell by 35,000 to 831,000, marking a continued decline over two years. Average wage growth, excluding bonuses, has also slowed to 4.8%, the lowest since June 2022, although it still outpaces inflation. Experts, including Gora Suri from PwC, warn that the Chancellor’s national insurance changes could further pressure wages and inflation. Alexandra Hall-Chen from the Institute of Directors expressed concern over employers’ cautious hiring intentions due to recent policy changes. The ONS also revealed a record 7m foreign-born workers are employed in Britain, following a surge in migration since the pandemic.

Huw Pill, Chief Economist at the Bank of England, has said recent labour market data indicates persistent inflation pressures in the UK, which remain above the BoE’s 2% target. He stated: “Pay growth remains quite sticky at elevated levels…hard to reconcile with the UK inflation target.”

Industry leaders are warning of a potential surge in for-sale signs on UK businesses due to changes in inheritance tax (IHT) announced in Rachel Reeves’ Autumn Budget. From April 2026, business assets valued over £1m will incur a 20% tax, impacting many family-run enterprises. Richard Stanley from UHY Hacker Young stated: “We could well see them being sold off at ‘fire sale’ prices,” highlighting concerns over reduced demand and market conditions. Neil Davy, chief executive of Family Business UK, described the policy as “damaging,” noting that family business owners typically retain 90% of their wealth in their companies, making it difficult to cover the new tax costs. This could lead to asset-stripping or forced sales, jeopardising the future of many SMEs, which represent over 99% of the UK’s business population.

HMRC has begun sending “nudge letters” to individuals suspected of underreporting their cryptocurrency profits, as new capital gains tax (CGT) rates come into effect. Basic-rate taxpayers will see their CGT rise from 10% to 18%, while higher earners face an increase from 20% to 24%. James Carn, an associate director at Evelyn Partners, cautioned that “the tax treatment of crypto assets can be complex.” Suzanne Morsfield, policy advisor at CryptoUK, expressed concern that the proposed tax hikes could adversely affect the 5m crypto holders in Britain. The changes will impact various assets, including real estate and stocks, with tax liabilities increasing for profits exceeding £3,000.

The Enough is Enough campaign is spearheading the UK’s first farming strike, set to commence on Sunday, in response to government changes to inheritance tax. The group stated: “British farmers have simply had enough,” highlighting the severe impact of the proposed 20% tax on farms valued over £1m, effective from April 2026. The National Farmers’ Union (NFU) warns that up to two-thirds of farms could face significant tax bills, jeopardising their viability. The campaign reflects widespread frustration among farmers, with competing protests planned, including a mass lobby event in Westminster. Meanwhile, one of Britain’s biggest food producers, Ranjit Singh Boparan, has warned that Labour’s “Budget was a disaster for business and will deliver a final fatal blow to the thousands of small, family-owned farms we in the food manufacturing sector rely upon day in, day out.” The strike comes as the Country and Land Business Association reports that a typical family farm would have to put 159% of annual profits into paying the new inheritance tax every year for a decade and could have to sell 20% of their land due to Labour’s tax changes.

Rachel Reeves is set to announce a significant overhaul of Britain’s payments infrastructure during this week’s Mansion House dinner. The Chancellor plans to empower the Bank of England to take a more central role in overseeing payments, addressing concerns that the UK is lagging behind global competitors in payments innovation. An insider revealed that Reeves aims for “a more coherent approach” to payments, as the fragmented supervision by various regulators, including the Payment Systems Regulator and the Financial Conduct Authority, has raised efficiency concerns.

Private equity firms are optimistic about increased deal activity in 2025, with 84% of respondents from a Deutsche Numis survey anticipating at least 5 to 10 deals. This marks a significant shift from last year, where only 12% felt “highly likely” to pursue bolt-on acquisitions. The survey, which included 200 senior private equity professionals, highlighted a growing interest in public-to-private transactions, with 26% identifying public assets as a key focus. Stuart Ord, co-head of UK M&A at Deutsche Numis, noted: “The UK is a highly attractive geography for private equity, with significant private and public opportunity sets.” Despite a 28.3% increase in M&A activity year-to-date, challenges remain, particularly in the debt financing environment, with two-thirds of respondents finding it challenging. Potential regulatory changes are also a concern, as perceptions of an interventionist Competition and Markets Authority grow.

Metro Bank has been fined £16.6m by the Financial Conduct Authority (FCA) for failing to adequately monitor money laundering controls from 2016 to 2020. The issues affected over 60m transactions worth more than £51bn, with the FCA stating that Metro’s automated financial crime monitoring system “did not work as intended.” Despite concerns raised by junior staff in 2017 and 2018, the problems persisted until a fix was implemented in July 2019, and full compliance was not achieved until December 2020. Therese Chambers, joint executive director of enforcement and market oversight at the FCA, remarked that Metro’s failings “risked a gap being left in our defence against the criminal misuse of our financial system.” The bank, which serves around 3m customers in the UK, has recently returned to profitability following significant cost-cutting measures.

Labour’s tax hikes on businesses will drive further automation, according to analysts at investment bank RBC Capital Markets. Elsewhere, hospitality shares have been hit by the rise in NICs for employers, with the value of JD Wetherspoon and Marston’s falling by at least 10%. Premier Inn owner Whitbread is down 8% while ten-pin bowling operator Hollywood Bowl is down 6%. Elsewhere, Vodafone is facing a £10m jump in its wage bill due to the tax changes, but CEO said this not material given most of the group’s employee base of 90,000 is outside the UK.