Tax increases in the recent Budget are making it challenging for businesses to hire new staff, according to the Confederation of British Industry (CBI). Rain Newton-Smith, the boss of the CBI, stated at the group’s conference that firms are “being hit by a tough trading environment that just got tougher” due to changes in National Insurance contributions and inheritance tax. A survey revealed that nearly two-thirds of 185 companies believe the Budget will harm UK investment. Speaking later, the Chancellor insisted she had no other choice than to push through her policies, promising not to come back with more borrowing or more taxes in a future budget. Rachel Reeves faced claims from CBI chairman Rupert Soames that she was treating firms as a “cash cow” and making it harder for businesses to invest in jobs.

Labour’s impact assessment of its Employment Rights Bill, led by Angela Rayner, has been labelled “not fit for purpose” by the Regulatory Policy Committee (RPC). The RPC highlighted a lack of evidence supporting the issues the Bill aims to address, stating: “Without understanding the direct macroeconomic impacts on employment, wages and output, it is not possible to validate the departments’ estimated impacts.” The Federation of Small Businesses (FSB) echoed these concerns, with Policy Chair Tina McKenzie calling it a “sharp wake-up call” for the Government. She warned that the Bill could disproportionately affect small employers, urging Ministers to reconsider their approach. A government spokesperson defended the Bill, claiming it represents the “biggest upgrade to people’s rights at work in a generation.”

According to a report by the Commission for Healthier Working Lives, British workplaces are among the worst in Europe for long hours, tight deadlines, and limited autonomy, with only a third of workers able to choose their pace. The report highlights that conditions vary by sector, with construction and hospitality facing the most strain. Despite good relations with colleagues, UK workers report high levels of exhaustion and stress, which have increased over the past 25 years. The report concludes that the UK’s lower labour productivity compared to countries like France and Germany makes these conditions unjustifiable.

Hargreaves Lansdown has introduced a new online venture capital trust (VCT) investment service in response to recent tax hikes from the Budget, which increased capital gains tax from 20% to 24%. The service will initially offer five VCTs, including two from Octopus and others like Blackfinch Spring VCT and Calculus VCT. Notably, profits from VCTs are exempt from capital gains tax upon sale, and investors can claim 30% income tax relief on their investments. Emma Wall, head of platform investments at Hargreaves Lansdown, stated: “VCTs are a great way for people to invest their money in a tax-efficient way.”

The British Venture Capital Association (BVCA) has highlighted a concerning trend in the UK’s venture capital (VC) industry, revealing that only 40% of capital raised by UK funds comes from domestic investors, compared to over 70% in France and Germany. Michael Moore, the BVCA’s chief executive, stated: “Venture capital already makes a huge contribution to the wider economy,” but firms are finding it increasingly challenging to secure funding from local sources. The report underscores the need for reforms in the pension system to boost investment in the venture capital sector.

The Invest in Women Taskforce has successfully raised over £250m from various investors, including Barclays, Morgan Stanley, and Aviva, to support female entrepreneurs. This fund aims to enhance investment in female-led businesses and improve funding access. Notably, Barclays, M&G, British Business Bank, and Aviva each contributed £50m, while BGF and Morgan Stanley added £25m, and Visa Foundation contributed £5m. The Taskforce, succeeding the Rose Review, aims to unlock significant economic potential by empowering female entrepreneurs and investors.

The Financial Conduct Authority is to set out a new regulatory roadmap for crypto firms with rules around capital requirements, insider trading and execution detailed in a discussion paper on market abuse regulation due to be published in the fourth quarter of 2024. In the first half of 2025, rules on areas like order handling and execution, custody, and a new prudential rulebook covering capital, liquidity and risk management will be set out in a separate set of proposals. Then, around the third quarter of next year, the FCA will start to develop a version of its Consumer Duty and Senior Managers and Certification Regime for digital asset firms. The entire regime is expected to go live in 2026. “Our research results highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the UK,” said FCA director of payments and digital assets Matthew Long. “We want to develop a sector that embraces innovation and is underpinned by market integrity and consumer trust. ”

Recent research from Cranfield University and EY reveals that while gender diversity in boardrooms is improving, the number of women in executive roles at FTSE 250 companies has decreased by over 10% in the past two years. In 2024, there are only 42 women executive directors, down from 47 in 2022, representing just 12% of executives in these major firms. Sue Vinnicombe, professor of women and leadership at Cranfield, stated: “The persistent reality remains, that the glass ceiling for women in executive level positions is still stubbornly in place.” Despite a 50% increase in women holding non-executive director roles, the gap between female representation in these positions and executive roles continues to widen. Currently, 70% of FTSE 250 companies have met the Government-backed FTSE Women Leaders Review target of 40% female representation by 2025, but significant challenges remain for women aspiring to top positions.

The Bank of England is set to overhaul its operations, with Deputy Governor Clare Lombardelli indicating that interest rate forecasts may not be published to maintain the Monetary Policy Committee’s (MPC) credibility. The reforms, inspired by recommendations from former US Federal Reserve Chairman Ben Bernanke, aim to reshape how interest rates are set and communicated, taking up to five years to implement. Meanwhile, Lombardelli has struck a cautious tone on interest rate cuts due to concerns over rising inflation due to wage hikes and services prices.

As of August, 7m adults in Britain own crypto assets, a rise from 5m in 2022, according to the Financial Conduct Authority (FCA). This increase represents approximately 12% of the adult population, with significant ownership also growing; those holding between £1,000 and £10,000 rose from 20% to 36%. The average holding value is now £1,842. However, misconceptions about investor protection are rising, with one in five owners mistakenly believing they qualify for compensation if things go wrong, up from one in ten last year. Despite the risks, many believe digital currencies will become integral to the financial system.