The Competition and Markets Authority (CMA) is set to meet with business groups including UK Finance, the London Stock Exchange, the City UK and the British Venture Capital Association to offer insight into its future plans. The inaugural ‘Growth and Investment Council’ meeting will enable executives to quiz the competition watchdog on its strategy and will include a “brainstorm” session for attendees to exchange ideas. Bob Wigley, chair of UK Finance, said he hopes the meeting “will act as real engagement with industry, allowing us to review issues the CMA is grappling with and give them a business perspective on their analysis.”

The Institute for Fiscal Studies (IFS) has warned that the Government may need to implement further tax increases to avoid austerity measures. The IFS report highlights that government revenues are on track to reach record highs, driven by recent tax hikes in the October Budget. The report also notes that while the UK’s tax revenues have been catching up with those of other advanced economies since the mid-1990s, non-tax income sources have not recovered over the past 40 years. The IFS emphasises that without stronger economic growth, additional tax rises may be unavoidable for Chancellor Rachel Reeves to maintain public spending levels. The think-tank said: “For a Chancellor committed to keeping debt from rising and avoiding a ‘return to austerity’ in the form of cuts to spending on public services then, absent stronger growth, further tax rises may prove difficult to avoid.”

Lord Morse, former head of the National Audit Office, has warned that a rise in employer National Insurance could be the “straw that breaks the camel’s back” for businesses, arguing that “not all big businesses have equally broad shoulders.” Arguing that ministers had not considered the “differential damage” of the tax hike, he said employer NI “has no direct relationship to that employer’s profitability, and thus to that employer’s ability to pay more tax.”

The Home Office is expected to block cheaper visas for high skilled migrants in sectors such as AI, with a source saying a planned consultation on the challenges of the visa system will “not look at fee reductions.” The review of high-skilled visas will reportedly look at “speeding up processes” and cutting “unnecessary bureaucracy.” This comes despite the Chancellor saying the Government’s immigration white paper will include a review of visa routes for the highly skilled migrants to ensure the UK can attract talent. Speaking at the recent Davos World Economic Forum, Rachel Reeves said: “We are open for talent. We’ve got some of the best universities, some of the best entrepreneurs in the world, but we also want to bring in global talent into Britain.” Jane Gratton, the British Chambers of Commerce’s deputy director of public policy, argues that the Government “needs to reduce costs and complexity for businesses” and “send a welcoming message to highly skilled workers who want to come to the UK.”

Analysis by job search site Adzuna shows that the average advertised salary hit a new record in December, passing £40,000 for the first time. Demand for skilled staff saw salaries climb by 7% compared to December 2023’s average. While advertised salaries rose, the number of vacancies fell by 4% month-on-month. The biggest decline in vacancies came in the retail (19%) and hospitality (13%) sectors, while the accounting, consultancy and legal industries also saw a dip in job opportunities. Andrew Hunter, co-founder of Adzuna, said: “Whilst it appears companies are not hiring as much, they are loosening their purse strings.”

Morgan Stanley has revised its UK economic growth forecast for 2025, now predicting an increase of only 0.9%, down from the previous estimate of 1.3%. This adjustment comes amid signs of a slowdown and labour market weakness, indicating a challenging economic landscape.

Alderman Alastair King, the Lord Mayor of the City of London, says financial services firms need to invest in risk management roles to maintain the City’s competitive edge, saying: “The strategic management of risk is perhaps the defining capability that will separate leading financial centres from their competitors.” He added that firms “need to innovate and take responsible risks to sustain the UK’s world-leading financial services sector,” while regulators “must encourage success alongside preventing failure.” This comes with research from Bayes Business School suggesting that risk managers, once seen as barriers to growth, have become a means to enable it.

The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) have introduced new guidance for auditors to enhance the assessment of firms’ environmental, social, and governance claims. The guidelines aim to ensure trust in sustainability reporting, particularly as companies face increasing pressure to disclose data amid climate change efforts. IESBA chair Gabriela Figueiredo Dias emphasised the importance of knowing “how to behave and how to approach many dilemmas, decisions and judgments.” She also noted that 34 major auditing firms have committed to adopting these guidelines, creating a significant global framework for expected behaviours.

The collapse of Stenn Group, a London-based financial start-up, is set to leave creditors with losses exceeding £100m, insolvency filings show. The company, which specialised in invoice finance, entered administration following a US indictment that prompted an investigation by HSBC. Stenn, once valued at $900m, was linked to a Russian money-laundering case, although neither Stenn nor its CEO, Greg Karpovsky, has been accused of wrongdoing. Administrators from Interpath are scrutinising the business’s financial structure and transactions,saying: “We acknowledge the allegations concerning potential irregularities prior to insolvency that have been publicly reported.”

The Capital Markets Industry Taskforce, which is lobbying for reform of the UK’s capital markets, has added two small-company-focused executives. Erin Platts, the boss of Octopus Ventures, and Lisa Gordon, chair of small-cap broker and investment bank Cavendish, have joined the group as it looks to boost AIM, the UK’s junior stock market. Ms Platts, the former head of Silicon Valley Bank’s UK division, will replace Klaus Hommels, founder and chairman of venture capital firm Lakestar. Ms Gordon, meanwhile, takes on a newly created role that will focus on smaller listed firms. The appointments come on the back of a challenging period for AIM, which declined at a record pace 2024, with more than 90 firms leaving the market through takeovers and de-listings.

Research by Survation indicates that nearly 60% of the public anticipates a three-day weekend becoming the standard work model by 2030. Currently, 200 UK companies have adopted a four-day workweek without reducing pay, benefiting over 5,000 employees. Joe Ryle, campaign director of the 4 Day Week Foundation, said: “With 50% more free time, a four-day week gives people the freedom to live happier, more fulfilling lives.” A study by Spark Market Research highlights that younger workers, particularly those aged 18-34, are keen on this shift, with 78% believing a four-day week will become common in five years.