The number of companies applying to have their shares listed on the London stock market has hit a record low, with analysis from EY showing that 88 firms delisted or transferred their primary listing from the London Stock Exchange, marking the highest number since the financial crisis. Meanwhile, just 18 companies listed on the London market in 2024. Financial Conduct Authority data shows that 45 firms applied to join the main market in 2024, with this down a quarter compared to 2023. Of these applications, the City watchdog approved just 30. Joshua Raymond, who runs investment platform XTB, said: “Despite positive noises last year from some big-name companies that have indicated they may look to list in London, the data suggests 2025 is unlikely to see any significant pick up on the London market.”

February saw a “marked decline” in employment, according to S&P’s Purchasing Managers’ Index, with firms flagging the impact of the Budget. Chris Williamson, chief business economist at S&P Global Market Intelligence, said: “One in three companies reporting lower staffing levels directly linked the reduction to policies announced in last October’s Budget.” Rob Wood, chief UK economist at Pantheon Macroeconomics, suggested that issues in the jobs market may not be as severe as the PMI suggests, warning: “The qualitative nature of the survey – asking how many firms are cutting employment, rather than how much- is likely to exaggerate weakness after the payroll tax hikes.” The PMI also points to a slowdown in demand, with new orders falling at the fastest pace in a year and a half. New orders from overseas declined at the fastest pace since November 2022.

Britain’s job market has experienced its worst start to a year since the pandemic-related lockdowns, according to Adzuna, with fewer than 828,500 jobs available in January. This marks a decline of 1.9% from December and 4.5% from a year earlier. Despite this downturn, advertised salaries were up 7.02% on January 2024 to hit a record high of nearly £40,850. Andrew Hunter, the co-founder of Adzuna, said sectors including manufacturing, maintenance and retail had driven the increase in salaries, reflecting the “increasing competition for talent in key sectors, even as overall hiring slows.” Salaries in these sectors have been nudged up by the tight labour market and competition to attract and retain employees. It is noted that the Bank of England fears sustained wage growth could push inflation towards 3.75% later this year, significantly above its 2% target.

Young graduates face an increasingly challenging job market. Institute of Student Employers data shows that the average UK employer received 140 applications per graduate vacancy in 2023/24, a 59% year-on-year increase.

Ministers are reportedly considering whether to scrap the Payment Systems Regulator (PSR), with officials potentially looking to merge it into the Financial Conduct Authority (FCA). The proposal comes as part of a broader initiative to streamline regulatory bodies and reduce bureaucratic hurdles in the economy. Business Secretary Jonathan Reynolds recently suggested reform could be on the cards, commenting: “We’ve got to genuinely ask ourselves the question: have we got the right number of regulators?” The PSR, established under the Financial Services (Banking Reform) Act 2013, has faced criticism over its regulatory approach, particularly concerning fraud reimbursement. However, its role is regarded as critical as technology transforms the payments landscape. A source cited by Sky News suggests that folding the payments watchdog into the FCA would make sense, saying: “No other major economy has a standalone payments regulator like this, and it is hard to make the case for it continuing to exist.”

A Government review has uncovered more than 10,000 additional cases of suspected fraud involving pandemic-related loans. The British Business Bank review of loans which had been defaulted on and settled by the Government shows that the number for the 2023 financial year has almost doubled from 16,846 to 31,437. The fraudulent loans for 2023 amount to over £500m, bringing total losses for the year to £1.2bn, up from £648m. A Department for Business and Trade spokesperson said: “These figures do not represent an increase in the overall amount paid out, and instead are a result of lenders reclassifying existing payouts following their extensive work to tackle fraud in the schemes.” HMRC’s annual report from 2021/22 said 2.5% of the £19.7bn delivered through self-employed support had been lost to fraud, and the Treasury said it expected to write off £4.3bn of the £5.8bn of public money fraudulently claimed by businesses during the pandemic. According to Insolvency Service data, 1,431 company directors have been disqualified due to suspected fraud involving pandemic-related financial support.

Only 46% of fines handed to firms who filed their accounts late were paid in 2023/24, down from 57% in 2019/20, raising concerns about the efficacy of enforcement by Companies House.

Analysis by BDO has revealed a surge in the number of British firms at risk of becoming ‘zombie’ companies – those with enough money to continue operating and service their debts but not enough to invest in growth. BDO’s poll of 20,000 businesses found that 15.9% of mid-sized UK firms – those with sales of between £10m and £500m – are at risk of becoming zombies. This marks a 3.5% increase on a year ago. Property had the highest proportion of “at risk” companies, at 25.1%, while leisure and hospitality came second, with 23.4% of businesses deemed to be at risk. Ben Peterson, a partner at BDO, said: “In the light of the challenging economic conditions over the past 18 months it’s no surprise that the number of mid-market businesses at risk of becoming zombie companies is on the rise … rising borrowing costs and inflationary pressures have significantly impacted their financial stability.”

Research by AJ Bell shows that millions of Britons will face tax bills on their savings due to frozen thresholds and rising interest rates. The number of basic-rate taxpayers affected is expected to reach nearly 1m in 2023/24, a significant increase from 500,000 in the previous year. Combining higher and additional rate taxpayers, 2.07m people are expected to pay tax on their savings interest — a significant increase from the 650,000 doing so three years ago. Laura Suter, director of personal finance at AJ Bell, said: “The thorny issue is that lots of people won’t realise they owe tax until a brown letter lands on their doormat.”

Chancellor Rachel Reeves is under increased pressure to raise taxes or cut public spending after Office for National Statistics (ONS) data revealed that Government borrowing was more expensive than expected in January, while tax revenue fell below expectations. While the Government’s budget surplus hit £15.4bn – the highest level since records began in 1993 – it fell short of the £20.5bn predicted by the Office for Budget Responsibility (OBR). The ONS figures also show that borrowing was up £11.6bn on a year ago. For the full year, borrowing came in at £118.2bn, exceeding the OBR’s £105.4bn forecast. Looking ahead, Cara Pacitti, senior economist at the Resolution Foundation think-tank, said the economic data “could leave the Chancellor in the unenviable position of needing to raise taxes or cut spending to meet her fiscal rules.” Dennis Tatarkov, senior economist at KPMG UK, offered a similar warning, saying that if Ms Reeves remains committed to her fiscal targets, “the Spring Statement may need to contain more tax and spending changes.” Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics, warned that “it appears that all the Chancellor’s headroom has gone.” Nabil Taleb, an economist at PwC, noted that higher debt payments and weak economic growth would leave the public finances more exposed to future economic shocks.

The Federation of Small Businesses (FSB) has suggested that making it easier for self-employed people to secure mortgages or retire could help to boost the economy. This came after an FSB poll of more than 1,300 self-employed people found that 25% said being self-employed has made it harder to access a home loan, with 16% saying that savings or capital they would used to expand their business has been used to pay a mortgage. It was also shown that 37% do not pay into a pension. The poll also found that 17% of entrepreneurs are using bank overdrafts to stay afloat or maintain their enterprise, with credit cards (16%) and financial support from family and friends (9%) also utilised.

Tyson Fury’s property company, GreenwayBalmoral Ltd, has been struck off due to a failure to file any accounts since its establishment in January 2023. A source commented: “Questions over Tyson’s future remain after he suddenly quit the ring in January. Clearly his future isn’t in property development.”