The British Chambers of Commerce (BCC) has revealed that 82% of businesses are reconsidering their plans due to the impending rise in employers’ National Insurance contributions. Chancellor Rachel Reeves has announced a 1.2 percentage point increase to 15% and a reduction in the salary threshold from £9,100 to £5,000, with this expected to generate £25bn annually by the decade’s end. The BCC analysis, which polled around 1,300 firms, highlighted widespread dissatisfaction with government policymaking, with 79% believing the effects of new policies are not being properly assessed. Alex Veitch, director of policy at the BCC, said: “Firms are already telling us they are sitting on a powder keg of costs,” indicating that many will need to raise prices and reassess recruitment strategies. He added: “Ministers need to read the room and recognise the impact this tax hike will have.”

City of London mayor Alastair King says overly cautious UK financial and legal firms need to take more risks investing abroad and seize opportunities in booming overseas economies.

HSBC Innovation Banking has provided £30m in debt financing to fintech Clearscore. This funding is crucial for Clearscore’s expansion in both domestic and international markets, with the platform now serving over 24m users across various countries. The capital will also facilitate Clearscore’s acquisition of Arlo Finance, enhancing its secured loan offerings.

Up to 160,000 part-time shop workers may lose their jobs due to impending tax increases, according to the British Retail Consortium (BRC). The BRC warns that over 10% of part-time roles could be eliminated in the next three years, driven by a £25bn rise in employer National Insurance contributions and a 6.7% increase in the National Living Wage. Helen Dickinson, BRC’s chief executive, said: “Retailers face a mountain of costs from the Budget and while they continue to absorb costs where they can, higher prices and job losses are inevitable.” The Confederation of British Industry, meanwhile, has reported that retailers are cutting back on investments at the fastest rate in nearly six years, further exacerbating job security concerns.

Investors and boardroom advisers say London-listed companies are increasing executive pay to attract talent, with the hikes influenced by a shift in investor attitudes and competition from US firms for top executives.

Sir Keir Starmer has announced that defence spending will climb to 2.5% of GDP by 2027. The Prime Minister said the “biggest sustained increase in defence spending since the end of the Cold War” will see the rate climb from the current 2.3% of GDP, with a target of hitting 3% in the next Parliament. Sir Keir said that the increase will be funded by a cut to international development assistance aid, which will be reduced from its current level of 0.5% of gross national income to 0.3% in 2027. Paul Johnson, director of the Institute of Fiscal Studies, described the move as “another axe taken to overseas aid,” and went on to warn: “Further increases in defence will mean cutting the welfare state or raising taxes.”

Ofgem has announced that the energy price cap is rising by 6.4%, meaning a household using a typical amount of gas and electricity will see their bill rise by £111 a year to £1,849. This marks the third consecutive increase for the cap, which limits the amount suppliers can charge per unit of energy and is revised every three months. Jonathan Brearley, chief executive of the energy watchdog, has urged households to consider a fixed price deal on their energy bills, saying this could lower costs and “provide certainty over coming payments.”

Generation X are the least likely to feel confident about their retirement savings, according to a survey. The poll, for Annuity Ready, a lifetime annuity comparison service within the Legal & General Group, found that just 28% of people born between 1965 and 1980 believe they are on track for a comfortable retirement. This compares to 50% of Gen Z and 47% of Millennials, as well as 37% of Baby Boomers. The study also shows a shift away from salary-based pensions, with 65% of Gen X saying a final salary pension scheme is no longer available to them as a savings option even though 45% said it was when they first started working. Analysis also shows that 17% of Generation X are worried about never being able to fully retire.