The International Chamber of Commerce (ICC) has urged the UK to reform trade finance regulations to unlock £22bn for small and medium-sized enterprises (SMEs). In a letter to Financial Conduct Authority chief Nikhil Rathi, ICC UK’s secretary-general Chris Southworth highlighted the “bureaucratic and inefficient” regulatory structure that burdens SMEs with excessive compliance checks. He noted that the Electronic Trade Documents Act (ETDA) 2023 has significantly improved transaction times and reduced costs, yet the benefits are undermined by outdated regulations. Southworth called for quicker implementation of Basel III reforms, stating that the current timeline “fails to reflect what businesses are doing in the real world”. He stressed the need for “more proportionate, lighter touch” regulations, particularly regarding know your customer processes, to help close the £22bn trade finance gap and position the UK as a leader in digital trade finance.

The Prime Minister has refused to rule out imposing a wealth tax after former Labour leader Lord Kinnock argued for a 2% levy on assets over £10m. Sir Keir Starmer’s spokesperson said: “The Government is committed to the wealthiest in society paying their share in tax.” He added: “The Prime Minister has repeatedly said those with the broadest shoulders should carry the largest burden.” Sir Keir is now under pressure from unions to introduce a wealth tax after his U-turn on welfare cuts left the Treasury £5bn worse off. Responding to the news, shadow chancellor Sir Mel Stride said “piling further taxes on the wealth creators” would be “the worst thing to do”. Meanwhile, Callum Price, director of communications at the Institute of Economic Affairs, explains in a piece for City AM why a wealth tax would impede the formation of capital – because people would spend more to remain below the threshold – and exacerbate capital flight as the wealth flee for more hospitable climes. Price concludes that if the Government is concerned about wealth inequality it should build more houses as that would effectively “redistribute” property wealth, “while growing the pie at the same time.”

The overuse of personal guarantees in borrowing is hindering UK business growth, according to a survey by the Federation of Small Businesses (FSB). Only 13% of small business owners would consider borrowing if personal guarantees were required. Tina McKenzie, policy chair of the FSB, commented: “Personal guarantees should never be the default setting,” adding: “If we are serious about building a climate where small firms can thrive and new ideas can take root, we need to rein in their overuse.” Nearly 80% of directors applying for finance reported being asked to take on personal liabilities, leading to a more cautious approach to expansion among one in seven business owners. The Financial Conduct Authority (FCA) previously indicated it would review its policies regarding personal guarantees.

The UK Government is set to amend the Employment Rights Bill to prohibit the use of non-disclosure agreements (NDAs) that silence employees who have experienced harassment or discrimination. Angela Rayner, the Deputy Prime Minister, said: “Victims and witnesses of harassment and discrimination should never be silenced.” The legislation aims to empower workers, allowing them to speak freely about their experiences without fear of legal repercussions. The changes will not affect NDAs used for legitimate commercial purposes but will create one of the most robust protection regimes globally. A report by the Chartered Institute of Personnel and Development revealed that 22% of employers use NDAs for sexual harassment cases.

Business confidence in Scotland has reached its highest level in eight months, according to the Royal Bank of Scotland’s growth tracker. The survey revealed that the combined output of Scotland’s manufacturing and service sectors increased from 50.5 in May to 50.9 in June, marking the second consecutive monthly rise. While the manufacturing sector faced challenges, firms expressed optimism about future growth, with manufacturers reporting positive forecasts for the first time in three months. Despite rising operating costs, businesses showed a willingness to absorb some expenses to maintain sales.

Charlie Nunn, the chief executive of Lloyds Banking Group, has voiced concerns over Labour’s plan to mandate pension funds to invest in British assets, comparing it to policies in communist China. The Government’s proposed pension reform includes the establishment of megafunds, each investing over £25bn, aimed at reducing fees for pension holders. However, Nunn cautioned that “mandating allocations of pension funds is a form of capital control” which could hinder funds from fulfilling their legal duties to secure the best returns for pensioners. Nunn’s comments come after Louis Taylor, chief executive of the British Business Bank, encouraged pension funds to explore the “goldmine of opportunity” in private UK firms, suggesting that increased investment would render the need for mandating moot.

The Building Societies Association (BSA) has expressed strong opposition to the Chancellor’s proposed reduction of the cash ISA limit from £20,000. A draft letter obtained by Sky News warns that such a move could lead to increased borrowing costs for homeowners and businesses, stating: “Cutting Cash ISA limits would make this funding more scarce.” The BSA argues that cash ISAs are essential for personal savings and the broader economy, supporting lending and keeping mortgages affordable. The letter urges Rachel Reeves to maintain the current limit to ensure financial security for households and support economic growth. The final version of the letter is expected to be published soon, as the Treasury remains silent on the matter.

Sir Keir Starmer has been accused of reversing his commitment to reduce the Government’s reliance on consultants, as spending increased during Labour’s first year in power. According to Tussell, the public sector awarded 580 contracts worth £1.29bn to consultancies like Deloitte, McKinsey, and PwC since Labour took office on July 5 last year, marking a 5% rise from the previous government’s £1.23bn. Nathaniel Fried, former head of Reform UK’s cost-cutting division, commented: “Labour has accepted hundreds of thousands of pounds in free labour from EY and PwC and is now U-turning on their promise to cut spending on said consultants.” Despite a reduction in the number of contracts awarded, spending on consultancies has risen, raising concerns about the impact on in-house expertise within the Civil Service.

Moovable, a fintech company, has launched a scheme called ‘Life Boost’ to help London homeowners monetise their unused bedrooms. With approximately 19.5m empty bedrooms in the UK, the initiative offers homeowners an upfront cash lump sum ranging from £3,000 to £15,000 in exchange for renting out one or two spare rooms for six to 24 months. Homeowners can choose their own lodgers or let Moovable find suitable candidates. The scheme aims to create stable living environments while also assisting renters in building credit scores and saving for future homeownership. Currently available only in London, Moovable plans to expand the scheme across the UK.