The Government is considering new measures to enhance pay transparency among businesses and combat pay discrimination. Proposed changes include requiring employers to disclose salary brackets in job adverts and publish pay structures. Ministers are also contemplating increasing fines for companies that violate equal pay laws, which will now encompass race and disability discrimination. A Government spokesperson said: “What our duty will do is require specified public bodies to consider how their choices might tackle socioeconomic inequality of outcome.” The initiative aligns with the EU’s pay transparency directive, promoting a proactive approach to pay equity. However, business groups have expressed concerns that these regulations may hinder their ability to attract talent. Jane Gratton from the British Chambers of Commerce emphasised the need for flexibility in rewarding employees based on performance, while Tina McKenzie, policy chair at the Federation of Small Businesses, added: “Encouraging greater pay transparency is a good thing in principle but some of the measures being suggested simply don’t fit the reality of small business life.” Dónall Breen, a senior associate at employment law firm Littler, noted: “There will be a proactive duty on employers to consider pay equity in their organisation and employees will have much more information about salary bands and pay structuring.”

Businesses are preparing for significant changes in response to a £25bn rise in payroll taxes announced in the October budget. A survey for S&W shows that 33% of business owners with a turnover above £5m plan to reduce staff numbers, while 46% intend to raise prices to counteract increased employment taxes. The poll shows that more than half of the owners either have or intend to cut jobs, with 59% reducing staff hours and 51% freezing pay. The increase in employers’ National Insurance contributions from 13.8% to 15% and the reduction of the earnings threshold to £5,000 are expected to have a dramatic impact on the corporate sector. Alex Simpson, a partner at S&W, said: “For most businesses, the extent of the employers’ NIC change was a surprise.” He added: “We anticipated an increase in the employers’ rate, but the additional reduction to the earnings threshold was not expected and is expected to have a dramatic impact over time.” The Bank of England anticipates that the NI increase will contribute an additional 0.2 percentage points to the UK’s inflation rate, which rose to 3.5% in April.

Britain’s largest retailers are bracing for a £600m rise in property taxes next year under government reforms to business rates, according to research by property agency Colliers. The changes, due to take effect in April, will lower rates for smaller shops but shift the burden onto larger stores with rateable values above £500,000. London’s West End is expected to be particularly hard hit, with 335 retail properties likely to face an average annual increase of £182,727 each, as rateable values rise by about 30%. Supermarkets are also facing steep hikes, with the grocery sector estimated to be in line for £350m in additional costs. A Treasury spokesman said: “We are a pro-business government that is creating a fairer business rates system to protect the high street, support investment and level the playing field.”

Lending to small businesses by high street banks hit the highest level since 2022 in the opening three months of 2025. Lenders issued £4.6bn worth of loans in Q1, with this a 14% year-on-year jump. Research from the British Business Bank shows that while the Big Four of HSBC, NatWest, Barclays and Lloyds issued 90% of loans to small firms in 2019, challenger banks now account for 60% of annual gross bank lending to SMEs. David Raw, managing director of commercial finance at UK Finance, said: “SMEs are a vital part of the UK economy, and it is encouraging that lending to them continues to go up.”

President Donald Trump has signed documents to reduce tariffs on UK cars being imported to the US, with Prime Minister Sir Keir Starmer describing the move as a “very important day” for both countries. The US will allow up to 100,000 cars into the US at a 10% tariff, instead of the 25% import tax on all car imports imposed earlier this year. The documents note that the US will set up a similar system for steel and aluminium. Business and Trade Secretary Jonathan Reynolds said the announcement was “the result of work happening at pace between both governments to lower the burden on UK businesses, especially the sectors most impacted by the tariffs”.

With the Office for National Statistics set to publish its latest inflation reading this week, economists expect price rises to have dipped to 3.3% in May, from 3.4% in April. While JPMorgan has forecast year-on-year inflation of 3.3%, Goldman Sachs believes consumer price index inflation may have dipped to 3.2%. Meanwhile, analysts from Pantheon Macroeconomics expect May’s rate of price growth to match Bank of England forecasts of 3.4%.

Steven Fine, chief executive of broker Peel Hunt, believes that London markets are being held back by a “domestic lack of self-esteem,” suggesting that the UK believes it is in “a lot worse shape than the rest of the world does.” Peel Hunt has voiced concern over the “increasing rate” at which companies are exiting the London market, warning of the “significant challenge” it presented for the UK economy. However, Mr Fine said the UK has “weathered the storm better than most people would think.” Highlighting a number of recent challenges, he added that the economy has “actually been a very strong buffer” against a series of shocks and called for a push to turn “the buffer into a springboard” that will enable firms to move “from the backfoot slightly further forward.”

Alastair King, Lord Mayor of the City of London, says that “bold reform, stronger investment and renewed confidence in Britain” is required to deliver capital markets “that back ambition,” arguing that this will help “build a high-growth, high-opportunity economy.” Writing in City AM, Mr King backs the Employers’ Pension Pledge, an initiative that encourages UK employers to prioritise value for money, not just cost, when choosing pension providers. He says this “dovetails neatly” with ongoing work at the Financial Conduct Authority and The Pensions Regulator, and “is about aligning pension outcomes with national priorities.” Mr King also says there is a need to “address the structural barriers holding back our public markets.” He argues that cutting the 0.5% stamp duty on UK share purchases “would boost liquidity and send a clear signal to investors.” He has called for a “rethink” on how ISAs are treated.

UK businesses are generating an estimated £27bn in additional revenue from investing in cyber security, according to new analysis. The research, by cyber security provider ESET, shows that 53% of UK firms have reported a direct increase in turnover linked to cyber investment. Of these, 70% said their strong cyber credentials were a primary driver of that revenue growth. It was also found that 44% said robust cyber security infrastructure had enabled them to take on more risk, such as entering new markets or adopting emerging technologies. Data from ESET shows that 53% of UK firms have already suffered at least one cyber-attack. The firm calculates that cyber-crime has cost UK firms £63bn in the last three years.

Research commissioned by Moonpig reveals that nearly two-thirds of Britain’s 22m pet owners celebrate their pet’s birthday or adoption day, spending an average of £121 each, totalling £1.7bn. Popular gifts include toys, gourmet food, and personalised items, while half of owners also throw parties, especially among younger generations. The study also found that Guinea pig owners are more likely than both dog and cat owners to celebrate their pet’s milestones.