Analysis by data provider Dealogic shows that stock market debuts in London have raised just £150m in 2025 so far. This marks a 78% decline compared to 2024 and is the lowest total on records going back to 1999. The first half of the year saw just five London IPOs, compared to seven in the same period last year. Charles Hall, head of research at Peel Hunt, said the figures highlight what has been “a theme for some time.” With the recent performance of the London Stock Exchange prompting calls for measures to ensure British pension funds invest more in the UK, Mr Hall said: “If we don’t have investment from domestic investors then we can’t expect to have a healthy equity market. This is fundamental to the health of our economy.” Meanwhile, Simon French, chief economist at Panmure Liberum, said the Government “should promote an equity ownership culture.”

The outlook for British business is mixed, with the Confederation of British Industry’s (CBI) latest growth indicator revealing that private sector companies anticipate a decline in activity over the next quarter. Alpesh Paleja, deputy chief economist at the CBI, said: “While negative expectations for activity have eased a little, our surveys still point to challenging conditions for businesses.” In contrast, the latest business barometer from Lloyds indicates economic optimism has reached a ten-month high, with increased hiring intentions and wage growth expectations. Despite this, businesses are grappling with rising employment costs, cautious consumer spending, and global uncertainties.

The US and the G7 have agreed on a proposal to exempt US companies from parts of an existing global tax agreement. This comes after the US removed Section 899 – a proposed retaliatory tax from President Trump’s tax bill – which had threatened higher taxes for foreign companies and undermined global tax co-operation. The G7 has created a “side-by-side” system that acknowledges US tax laws while preserving international efforts against tax avoidance. The UK has supported the change, saying it brings more certainty for British businesses, which had feared substantial tax hikes under Section 899. Chancellor Rachel Reeves said the agreement “provides much-needed certainty and stability for those businesses after they had raised their concerns,” adding: “The G7 agrees there is work to be done in tackling aggressive tax planning and avoidance and ensuring a level playing field. The right environment for this to happen is without the prospect of retaliatory taxation hanging over these talks, so the removal of Section 899 is welcome.”

Analysis of HMRC data by RSM shows that the number of UK businesses adopting employee ownership trusts (EOTs) rose 40% in the past year, with 671 applications in 2024/25, up from 474 the year before. EOTs allow business owners to transfer majority ownership to staff without paying capital gains tax, making them an attractive exit route. Employees pay nothing to join an EOT and benefit from tax-free bonuses up to £3,600 per year and potential future payouts if the business is sold. Matthew Emms from BDO says anyone selling a business to their workforce will need to consider the risks, while Nimesh Shah from Blick Rothenberg notes that there are significant costs to consider, such as “getting a professional valuation of the business, setting the trust up and doing any pre-sale restructuring.”

John Farrugia, co-chief executive of investment bank Cavendish, believes changes to tax policy would help boost market listings, saying: “If you want to attract the best assets onto public markets you need to incentivise your entrepreneurs.” Arguing that a “good tax break” is needed to “turn [entrepreneur’s] heads,” he suggested that a “small re-adjustment” to allow capital in pension funds to be invested into equities would give a “really good boost” to private and capital markets. Steven Fine, chief executive of Peel Hunt, recently called for the restoration of dividends tax credits for pension funds investing in UK equities, as well as for entrepreneurs’ relief on capital gains tax for business owners who sell shares via an IPO.

Public frustration over the current tax system has seen a surge in support for a petition urging Chancellor Rachel Reeves to raise the personal tax allowance from £12,570 to £20,000. Campaigners argue that the existing threshold, frozen since 2021, unfairly targets low earners and pensioners. Daisy Cooper, a Liberal Democrat MP, said of the petition, which drew 281,792 signatures: “The number of people who have signed it speaks to the strength of public feeling about this issue.” Despite calls for reform, Exchequer Secretary James Murray has warned that raising the threshold would cost over £50bn, potentially jeopardising public services. He also noted that the UK has one of the more generous personal tax allowances in the OECD.

Around one in ten company directors are working past the state retirement age, according to research by Bowmore Financial Planning. The analysis, which is based on Companies House filings, shows that the number of company directors in the UK aged 67 or older has reached 620,000. The data shows that 445,000 company directors are over the age of 70, while 105,000 are over 80. Charles Incledon, client director at Bowmore Financial Planning, said: “Many company directors haven’t yet saved enough for a comfortable retirement. It’s forcing many of them to work longer than they’d ideally like.”

Analysis from Standard Life’s Centre for the Future of Retirement shows that an average of 437,000 over-50s left the workforce before state retirement age each year between 2019 and 2024. Of these, around half took early retirement, 49,000 left citing health issues and 170,000 quit for other reasons – including care duties and redundancy. The study found that key growth sectors had a higher early retirement rate than the rest of the economy and Patrick Thomson, head of research analysis and policy at the think-tank, said: “The UK’s economic future will be driven by these high-growth sectors, but relies heavily on the experience of over-50s. Yet we’re at risk of letting them slip away.” The analysis suggests that early retirement across Britain’s most important growth sectors is costing the economy £31bn a year.

The UK has experienced a significant decline in foreign direct investment (FDI) projects, with the total falling to the lowest level since records began 18 years ago. According to the Department for Business and Trade, there were 1,375 FDI projects by the end of March, a 12% drop from the previous year. This decline raises concerns about job creation and economic growth, as foreign investment is crucial for prosperity. A spokesperson from the Department said the Government “knows the power of inward investment and is laser-focused on targeting the highest-impact job-creating wins across the UK.”

Unity Advisory, founded by Steve Varley, former chairman of EY UK, and Marissa Thomas, former managing partner of PwC UK, has secured up to $300m in start-up capital from Warburg Pincus. The firm aims to provide advisory services to finance directors in areas such as business finance, tax, and digital transformation, while avoiding audit services to navigate regulatory restrictions. Mr Varley will serve as chairman, with Ms Thomas as CEO, and David Tapnack, another former PwC partner, joining the team. Warburg Pincus has expressed confidence in Unity’s potential, saying: “We believe the company will offer a highly distinctive proposition to CFOs.” The firm plans to leverage AI and automation from its inception, with aspirations for future expansion.

According to a recent report by the Royal Institution of Chartered Surveyors, over 27% of UK businesses experienced a cyber-attack in the past year, a significant increase from 16% the previous year. The report highlights that 73% of business leaders anticipate a cybersecurity incident will disrupt their operations within the next two years. The report also warns that many firms may be using outdated software, while highlighting that as cybercriminals become more sophisticated, the risks associated with operational technology, including building management systems and IoT devices, are increasing.

Following Labour’s election victory, southern European countries have seen a surge in middle-class British families seeking golden visas, with many citing growing frustration over the UK’s rising tax burden. New data shows a sharp increase in applications for residency-by-investment schemes in Greece and Portugal. In Greece, golden visa applications from the UK rose by nearly 47% in the year to April 2025, while Portugal recorded a 66% increase in 2024. Critics warn that Labour’s tax policies, including the scrapping of non-dom status and tighter inheritance tax rules, are driving out not only millionaires but also aspirational younger professionals. While the Treasury maintains that the UK’s tax system remains “fair and progressive,” a report by Henley and Partners has warned that the UK is set to lose 16,500 millionaires in 2025.