HSBC and Lloyds Banking Group have announced their withdrawal from the Lending Standards Board (LSB), a self-regulatory body established to improve lending practices following the 2008 financial crisis. This decision, alongside Santander UK’s earlier exit, raises concerns about the future of the LSB, which has already had to reduce its workforce significantly. An LSB spokesperson said: “As a result of this withdrawal, many of these banks’ SME customers will not be protected by the oversight of either the LSB or FCA,” highlighting the potential risks for small and medium enterprises. The banks argue that their membership is no longer necessary due to overlapping regulatory standards, including those from the Financial Conduct Authority.

Close Brothers and FirstRand have been granted permission by the Supreme Court to appeal a landmark ruling on motor finance commission payments that has left firms fearing a potential £30bn compensation bill. The Court of Appeal ruled in October that paying “secret” commission to car dealers – without disclosing the sum and terms of that commission to borrowers – was unlawful. The Financial Conduct Authority (FCA) had written to the Supreme Court seeking a rapid response to the request adding that it may yet intervene “in the case to share our expertise to assist the court on the substantive appeal.”

A meeting between senior corporate leaders and Rachel Reeves on Wednesday saw the Chancellor warned that companies are facing major uncertainty due to her tax-raising Budget. The executives used a roundtable organised by the British Chambers of Commerce to warn that the economic backdrop was extremely challenging. Speaking after the meeting, Martha Lane Fox, president of the BCC and chairman of the Business Council, said: “There’s no hiding the reality that the Budget was tough for business. Millions of firms are now facing a raft of increased costs in the coming months. Higher bills will impact investment and recruitment. Our latest forecast also suggests the ripples will be felt across the wider economy.”

John Webber, the head of business rates at Colliers, says in a piece for City AM that the Government is failing to appreciate the knock-on effect of business rates reforms. He explains that reducing the current 75% discount on business rates bills to 40% for the retail and hospitality sector will result in those businesses currently eligible for relief seeing their business rates bills rise by 140% next year. On top of this draft legislation proposes introducing a higher multiplier on businesses occupying more expensive properties. This would be devastating for the office sector, larger bricks-and-mortar high street retailers and hotels. “And given we are also facing a revaluation in 2026 expected to result in increases in rateable values across the sectors, this together with the higher multiplier, will lead to carnage.”

The Chancellor’s decision to increase the National Insurance burden for companies has led many employers to cut Christmas bonuses for staff, the Telegraph reports. According to a study carried out by Robert Walters, of the workers who typically receive an end-of-year bonus, 45% will receive nothing in December or January, according to a survey of 500 employers, a jump from 32% in 2023, and 30% the year before. A third of employers attributed bonus cuts to reduced profit margins, while a quarter cited economic uncertainty and inflation. Robert Salter, director at tax firm Blick Rothenberg, said: “Some firms haven’t changed anything yet, as the rises haven’t kicked in yet – and they want to reward workers who have had a good year. But some companies have struggled anyway, and […] are cutting bonuses, because if they get it wrong, they may have to make redundancies – and they would much rather cut bonuses where they can.”

The Qatar Investment Authority is gearing up for significant overseas investments, anticipating a petrodollar windfall that could potentially double its size, with a keen interest in the US, UK, and Asia.

Michael Spencer, the founder of ICAP, argues that London-listed firms should offer CEO salaries comparable to top footballers to attract talent. He said: “We don’t mind paying our footballers… But if the CEO of BP or HSBC earns £20m a year… everyone jumps up and down saying this is an outrage.” Currently, FTSE 100 CEOs earn a median of £4.1m, significantly less than their S&P 500 counterparts, who earn around $16m. Spencer, alongside London Stock Exchange boss Julia Hoggett, advocates for a discussion on executive pay to enhance the competitiveness of UK markets, which are hindered by costs like stamp duty on transactions.

The recovery of the housing market, which began over the summer after a two-year decline, faces potential setbacks due to economic uncertainty and rising mortgage rates. Despite these challenges, a net 33% of estate agents remain optimistic about selling more homes in 2025 compared to 2024, although this is the weakest sentiment since April.

The Financial Conduct Authority (FCA) is planning a consultation next summer on new rules to give pension savers targeted support – closing the gap between bespoke financial advice and guidance. The move would see people receive suggestions developed for a group of similar consumers sharing characteristics rather than being based on someone’s detailed circumstances, as would be the case with bespoke financial advice. Sarah Pritchard, executive director of consumers, competition and international at the FCA, said: “We want people to have access to the help, guidance and advice that they need, at a cost they can afford, when they need it, so that they can make informed decisions. So, we are reviewing the boundary between guidance and advice across investments.”