Helen Dickinson, the chief executive of the British Retail Consortium (BRC), says the Government’s relationship with business is at a “critical point,” with firms concerned over the impact of several policies. This comes after the BRC co-ordinated a letter signed by more than 70 retailers which warned that tax hikes set out in the Budget make job losses “inevitable” and higher prices “a certainty.” Ms Dickinson said the letter “highlights the strength of feeling from right across the industry,” adding: “You can see that businesses large and small are aligned on the concern for the consequences of a whole load of policy changes – not just ones that happened in the Budget – that are all happening at the same time.”

The UK is set to relaunch trade talks with India in 2025, with Prime Minister Sir Keir Starmer and Indian leader Narendra Modi having met at the G20 summit in Brazil and agreeing to work toward an agreement. Downing Street said the nations will look to agree an “ambitious UK-India comprehensive strategic partnership to take the relationship to new heights in trade and investment, security and defence, technology, climate, health and education.” The UK will also look to form a new economic partnership with Japan after Mr Starmer met the country’s Prime Minister, Shigeru Ishiba.

The number of company insolvencies in England and Wales decreased by 10% to 1,747 In October, data from the Insolvency Service shows. The report shows that administrations fell by 28% to 100, while creditors’ voluntary liquidations reached 1,445, as directors opted to close their businesses. Benjamin Wiles of consultancy Kroll said the numbers had been “very measured,” given more certainty around the cost of borrowing and the direction of inflation.

The Government is contemplating a subsidised jobs programme to address a rise in youth unemployment, with 1.2m young people currently out of work. According to the Office for National Statistics, there are 789,000 individuals aged 16 to 24 who are not in education, employment, or training (NEET), the highest figure recorded. Experts attribute this crisis to increasing mental health issues and a lack of skills training. PwC estimates that reducing the NEET rate could boost GDP by £23bn annually.

The National Farmers’ Union (NFU) has accused the Government of “betrayal” over the proposed changes to inheritance tax rules. Change set out in the Budget will impose a 20% inheritance tax on farms valued over £1m from April 2026. While the Government insists that most farmers will not be affected by the changes, NFU president Tom Bradshaw said 68% of farmers will be affected by the new tax. Environment Secretary Steve Reed has urged farmers to “check the facts,” claiming the tax is targeted at the wealthiest estates and will curb avoidance by the super-rich. The matter saw farmers take to the streets of Westminster yesterday, with an estimated 13,000 farmers bringing Whitehall to a standstill as they looked to force a U-turn on the inheritance tax rules.

Sir Keir Starmer says he is “absolutely” confident in the Chancellor’s financial plans, despite retailers warning of job cuts and price rises as a result of Budget tax hikes. Defending the decision to increase employers’ National Insurance contributions, the Prime Minister said the previous government had “refused to take a single difficult decision.” Backing the measures that Rachel Reeves outlined in her first Budget, the Prime Minister added: “We have to stabilise the economy, we have to deal with the £22bn black hole, and we need to invest in the future of our country.”

Bank of England governor Andrew Bailey says retailers were right to warn that tax increases introduced in the Budget could lead to job cuts. This comes after a letter co-ordinated by the British Retail Consortium saw more than 70 businesses warn the Chancellor that increased National Insurance contributions, a lower wage threshold for payouts and a higher minimum wage means job losses and price rises are “inevitable.” Speaking to MPs at the Treasury Select Committee, Mr Bailey said: “I think they’re right to say, I think there is a risk here that the reduction in employment could be more.” He added that while there will be more pressure on firms’ margins, they would “probably rebuild those profit margins over time.”

UK banks may face a £30bn compensation bill due to the motor finance scandal, according to Moody’s, which has calculated the cost of a potential redress scheme for customers mis-sold loans. The Financial Conduct Authority (FCA) banned discretionary commissions in car loan deals in 2021 and has since announced a wide-ranging review of the commissions paid by lenders to car dealers or credit brokers for arranging finance. With it suggested that the FCA may force car loan providers to compensate borrowers, Moody’s has suggested that this could amount to between £8bn and £21bn in redress costs for the industry. The bill, it says, could rise by a further £9bn if it is ruled that the matter applies to all types of commission, not just the discretionary arrangements.

The Financial Services Compensation Scheme (FSCS) increased claims decisions by 18% year-on-year in H1. The FSCS said that more than two-thirds of its advice claims are now considered “highly complex,” with the scheme’s interim chief executive Martyn Beauchamp noting that claims increasingly require more specialist resources deeper investigation, and more time to complete. Looking ahead, the levy for 2024/25 is forecast to come in at £265m, while compensation during 2024/25 is predicted to hit £372m. the FSCS’s total levy forecast for 2025/26 is £394m, with this based on compensation costs hitting £367m.

Property insurance claim payouts reached £4.1bn in the first three quarters of the year, according to The Association of British Insurers (ABI) data. This marks a 15% increase on January to September 2023 and is the biggest total for the first nine months of a year since records started in 2017. The ABI data also shows that insurers paid out £1.3bn in domestic and commercial property insurance claims during Q3. The report also shows that the average payout per home insurance claim has hit a record high of £6,002 and is 33% higher than a year ago. The ABI notes that analysis from EY shows that in 2023, for every £1 property insurers received in home insurance premiums, they paid out £1.18 in claims.

Data from the Office for National Statistics is expected to show that inflation has once again risen above the Bank of England’s 2% target on the back of higher energy prices. Economists expect inflation to have climbed to 2.2% in October, having dropped to a three-year-low of 1.7% in the previous month. If the forecasts are correct and the prices of goods and services have increased, analysts say it may reduce the likelihood of the Bank further reducing the base rate.