According to BDO’s Global Risk Landscape Report 2025, business leaders are becoming “paralysed” by ongoing crises, which is hindering growth opportunities. The report indicates that 84% of international executives view the current risk landscape as crisis-driven, with 69% adopting a defensive stance. Alisa Voznaya, partner and head of risk consulting at BDO, said: “Faced with this relentless volatility, some business leaders are being too hesitant to take decisions.” The report highlights that the top risks include regulatory challenges, supply chain issues, and cybercrime. While some executives acknowledge the positive impact of regulatory demands, many feel that compliance overspend is not delivering value. BDO surveyed 500 executives from global businesses with revenues exceeding $100m to compile the report.

Investing in London is crucial for the entire UK, Chris Hayward, Policy Chairman at the City of London Corporation, says in a piece for the Standard. “Investing in London isn’t about favouring one region over another, it’s about backing the entire country to succeed.” The City of London generates over £110bn in annual economic output, with a workforce that is nearly twice as productive as the national average. Despite challenges, investor confidence remains strong, bolstered by London’s unique advantages such as its time zone, language, and political stability. The City is launching the City Business Investment Unit to attract and retain firms, reinforcing its role as a global capital. A supportive national policy environment is essential to harness London’s strengths and ensure that when London thrives, the rest of the country benefits.

The UK labour market is experiencing significant challenges, with unemployment rising to 4.6% in April, the highest level in nearly four years. The increase is attributed to tax hikes introduced by Rachel Reeves, which have contributed to a broader slowdown in job growth. Annual wage growth has also decelerated to 5.2%, the slowest pace in seven months. The latest data indicates a sharp decline in payroll numbers, with a drop of 109,000 in May, reflecting the impact of a £25bn rise in employer national insurance contributions and a 6.7% increase in the national living wage. Suren Thiru from the Institute of Chartered Accountants warned that high business costs could lead to further job losses this year. In the meantime, almost 6.2m people were employed in the public sector in March, 35,000 more than a year earlier and the highest number since December 2011. The latest weakening in the jobs market prompted traders to increase bets on a rate cut in August.

Today, the Chancellor will present her spending review, which includes significant investments of £113bn in capital and £86bn in research and development. Shevaun Haviland, director general of the British Chambers of Commerce, praised these investments as “real, tangible steps” to stimulate economic growth. However, challenges persist, she writes in the Telegraph, with less than half of businesses expecting turnover growth this year. The rising cost of doing business, particularly due to taxes and National Insurance increases, is a major concern. Haviland stressed the need for no new taxes on businesses, stating: “Businesses can’t afford it. The country can’t afford it.” To foster growth, the Government must address cost pressures and provide opportunities for private enterprises.

Figures released by HMRC show 120,000 individuals aged 55 to 56 unlocked £2.2bn from their pensions in 2023-24, up 18% from the 100,000 who withdrew just under £2bn in 2019-20. Once workers reach 55, they can take 25% of their pension tax-free, up to a maximum of £268,275. After that, withdrawals are taxed as earnings. Andrew Tricker, of Lubbock Fine Wealth Management, who obtained the data, said: “The large number of savers withdrawing from their pensions before actually retiring is very concerning. Many of them are withdrawing too much – and too early.” But with changes due to come into effect in 2027 that will prevent people passing on their pensions tax-free, experts expect the number of individuals accessing their pots early to rise. RBC Brewin Dolphin found that 56% of those aged 45 or over with pots worth at least £300,000 were intending to “spend more” of their pension following the October Budget.

HM Revenue and Customs (HMRC) has faced criticism from the Treasury Committee for failing to report a significant breach affecting approximately 100,000 taxpayers. The committee was only informed of the incident when HMRC published a notification on its website during a live session on June 4. The breach, linked to a phishing scam, resulted in a loss of £47m. Dame Meg Hillier, chairwoman of the committee, expressed alarm that Parliament was not notified earlier, stating: “To discover this information during a session from press reports is unacceptable.” The committee is seeking answers from HMRC regarding the lack of communication and the measures taken to prevent future incidents, with a response requested by June 24, 2025.

The Financial Conduct Authority (FCA) has appointed Sarah Pritchard as its deputy chief executive, a role designed to enhance its growing responsibilities and support the Government’s growth agenda. Nikhil Rathi, FCA’s chief executive, highlighted Pritchard’s significant contributions, stating she has been responsible for some of the organisation’s “most high-profile work.” Pritchard’s new role encompasses the regulation of stablecoin and cryptocurrency firms, as well as the burgeoning buy now pay later sector. She said: “I am looking forward to working even more closely with Nikhil so there is no let-up in the pace of change.” Simon Morris from CMS noted that her appointment reflects the FCA’s commitment to the Government’s Regulation for Growth initiative and the need for vigilant oversight.

SEON has unveiled a new AI-powered Anti-Money Laundering (AML) suite designed to help businesses combat fraud and dodgy transactions. The tool offers features such as real-time transaction monitoring, AI-assisted customer screening, and streamlined regulatory reporting, providing a comprehensive view of fraud risks. Commenting on the product, Tamas Kadar, Co-Founder and CEO of SEON, said: “Risk teams don’t need more tools – they need one that gives them a full picture.”

The World Bank forecasts that the global economy is set for its worst year since the 2008 financial crash, with growth expected to decline to 2.3% due to trade tensions stemming from President Trump’s tariffs. The report highlights that over two-thirds of countries will experience restricted GDP potential, impacting British firms’ export opportunities. The US economic outlook has notably worsened, with growth projected to decelerate sharply to 1.4%, down from a previous estimate of 2.3%. The analysis indicates that 60% of developing economies will also see a slowdown, while the euro area’s growth is expected to be just 0.7%. The World Bank suggests that countries should “liberalise more broadly” through trade deals to bolster growth.

A report produced for the NHS reveals that the UK’s long-term sickness crisis has reduced Britain’s GDP by 10%. Research by consultancy Frontier Economics estimates that getting the 4.2m unemployed people with long-term sickness back into work would increase GDP by £125bn, while reducing the number of sick days employees take would provide an extra £45bn. Treating preventable disease so people could work longer hours would bring the “total productivity impact of reducing ill-health on the UK economy up to £246bn,” the researchers said.

Recent data from the Bank of England indicates that the share of highly leveraged mortgages has reached its highest level since the 2008 financial crisis, with loans exceeding 90% of property value accounting for 6.7% of all mortgages in the UK during the first quarter. This marks an increase from 6.3% in the previous quarter. Lucian Cook, head of residential research at Savills, commented: “The recent relaxation of affordability tests by the major lenders is going to result in more lending at higher LTVs.”