SME founders and investors have warned that new Companies House rules forcing them to disclose detailed profit and loss statements could hurt competitiveness, innovation and growth. As of April 2027, small companies will lose the right to file abridged accounts. They will instead file full accounts, including income statements that detail revenues, margins, director salaries and client concentration. Martin McTague, national chair of the Federation of Small Businesses, said the move “opens the door wide to competitors snooping on margins and for large companies in supply chains to scrutinise smaller suppliers’ finances.” Warning that “it could give big players an unfair advantage and damage small firms negotiating power,” he added that the changes will “make the system less friendly for small business owners at a time when the UK desperately needs more enterprise and growth.”

A survey from the Confederation of British Industry (CBI) shows that private sector businesses expect to see a decline in activity in the next three months. Firms are braced for a fall in the three months to September, having seen output fall by 26% in the three months to June. The report suggests that business volumes in the services sector, which accounts for around 81% of the UK’s GVA in the UK, is set to fall by 24%, while consumer services are predicted to see a 31% fall in activity. CBI deputy chief economist Alpesh Paleja warned of “sizeable headwinds” that are set to hit growth, including a lower salary threshold for employers’ National Insurance contributions.

The latest Directors’ Economic Confidence Index from the Institute of Directors (IoD) indicates a significant decline in business leaders’ optimism over the UK economy, dropping to -53 in June 2025 from -35 in May. Investment intentions and headcount expectations have also taken a hit, with the former falling to -10 and the latter to -10. This downturn reflects a broader trend, as over a third of British Chambers of Commerce members plan to reduce their workforce due to rising cost pressures. Chancellor Rachel Reeves’ National Insurance tax hike and upcoming packaging tax are flagged as contributing factors, with estimates suggesting an additional £5bn burden on UK firms. Anna Leach, chief economist at the IoD, said: “Business leaders are finding economic conditions increasingly challenging.”

The number of higher rate taxpayers in the UK is projected to surpass 7m this year, with a freeze on thresholds meaning an additional 500,000 individuals will be subjected to a 40% tax rate by 2025-26. Laura Suter, head of personal finance at AJ Bell, cautioned that “everyone is caught by frozen tax thresholds,” impacting not only workers but also pensioners. The current tax structure means that once individuals exceed the £50,270 threshold, they face a significantly higher tax rate on additional earnings. A Government spokesperson noted that the freeze on tax thresholds was inherited from the previous administration, but assured that there would be no increase in basic, higher, or additional rates of income tax.

Chancellor Rachel Reeves is reportedly planning to cut the tax-free cash ISA allowance in a bid to encourage savers to invest in London-listed firms. The Chancellor is set to lower the £20,000 cap that savers are allowed to put in cash tax-free as ministers look to boost the UK’s capital markets. Those who back such a move say the £300bn of tax-free cash savings should be invested in UK companies, providing them with much-needed capital. However, Michael Summergill, CEO of investment platform AJ Bell, has warned that reducing the amount savers can hold in cash ISAs, would have a negative impact on savers without having “the desired effect of getting people investing.”

Britain’s overseas tax havens have not met a deadline to disclose company ownership and who keeps their money there, raising concerns over transparency. Initially agreed upon in November, the territories were to publish ownership lists by June, but have failed to do so.

Research by Adzuna reveals a significant decline in graduate job vacancies, with levels in May 28% lower than last year. The data indicates that entry-level positions, including apprenticeships, have decreased by 31.89% over the past two and a half years. Additionally, jobs platform Indeed has reported that graduate jobs are at their weakest in seven years, with Big Four consultancies Deloitte, PwC, EY and KPMG among the firms replacing such roles with AI technology.

Office for National Statistics data shows that the UK economy grew by 0.7% in the first three months of the year. The Q1 growth figure marks the highest GDP rate since the first quarter of 2024, when the economy expanded by 0.9%. It also marks an improvement on the 0.1% growth seen in the final three months of 2024. While the economy grew in Q1, disposable income per head is estimated to have fallen by 1%. This marks a decline from the 1.8% increase recorded in the previous quarter. Looking ahead, Matt Swannell, chief economic adviser to the EY Item Club, said: “After the strong start to 2025, the UK looks set for another year of weak growth, with headwinds continuing to intensify,” while Thomas Pugh, chief economist at RSM UK, said the second quarter “will look substantially worse than the first quarter as there is some payback from activity brought forward to avoid taxes and tariffs.”

Research by Churchill Home Insurance reveals that unattractive or poorly maintained neighbouring properties can lower a home’s selling price by an average of 16%, or £42,880. Estate agents report that issues like rubbish in gardens, excessive garden ornaments, or broken windows can significantly impact property values. The effect is most severe in London, where a home’s value could drop by up to £89,000 due to neighbouring neglect.