A survey by Simply Business shows that a significant majority of SMEs anticipate raising prices in the coming year due to various economic pressures. The poll saw 74% of over 2,300 business owners surveyed indicate that they would need to increase prices, with 63% expecting hikes of up to 20%. Despite these increases, nearly half (44%) foresee a decline in profits, with many attributing this to rising National Insurance contributions, higher minimum wages, and inflation. While 37% of small business owners are contemplating closing their businesses, 57% have express optimism about their future. Data shows that there was an almost 3% year-on-year rise in new business registrations in Q1.

The Government borrowed more than expected in June, with Office for National Statistics (ONS) data showing that public sector net borrowing – the difference between public spending and income – rose to £20.7bn. This marked a £6.6bn increase on the year before. The ONS said the rising cost of providing public services and an increase in servicing the Government’s outstanding debts outstripped rising income from taxes and National Insurance contributions. Rob Wood, chief UK economist at Pantheon Macroeconomics, estimates that the size of the gap between Government expenditure and income has grown. He said: “All told, we estimate that the Chancellor’s £9.9bn of headroom has turned into a £13bn hole,” adding that Rachel Reeves “would need to raise taxes or cut spending by a little over £20bn in the autumn Budget to restore her slim margin of headroom.” Investec economist Philip Shaw said: “There is no denying that fiscal developments have been very disappointing so far this financial year,” adding that the Chancellor “will almost certainly be investigating potential revenue-raising measures.” Dennis Tatarkov, senior economist at KPMG UK, said the data “piles more pressure on public finances,” while Joe Nellis, economic adviser at MHA, said: “What we are very likely to see at the Budget is another set of tax rises.” Darren Jones, chief secretary to the Treasury, commented: “We are committed to tough fiscal rules, so we do not borrow for day-to-day spending and get debt down as a share of our economy.”

Andrew Bailey, the governor of the Bank of England, has expressed opposition to the proposed reforms of the UK’s ring-fencing regime, which separates retail banking from investment activities. He said: “I do think the ring-fencing regime is an important part of the structure of the banking system,” emphasising its role in ensuring financial stability and protecting consumers. “It makes resolution of banks, if they get into trouble, much easier,” he said, adding that it benefits consumers and businesses, while noting: “I don’t think it hinders banks fundamentally.” This comes with the Government having proposed plans that would see red tape in the financial services sector reduced in a bid to drive growth. Mr Bailey argued that there “isn’t a trade-off between financial stability and growth.” While Chancellor Rachel Reeves recently warned that regulation is too often a “boot on the neck” for UK businesses, Mr Bailey told the Treasury Committee this is “not a term I use.”

Research by Onward and the Adam Smith Institutes shows that around 67% of the British public would support a policy offering wealthy investors tax incentives to stop them leaving the UK. The think-tanks have designed a plan to offer 15-year exemptions from foreign income, capital gains and global inheritance taxes to investors in UK growth sectors. The scheme would see the high-net-worth individuals provide £300,000 in annual contributions to the state. They would also be mandated to make a minimum £3m in a high-growth sector and take up private healthcare, schooling and insurance. Onward director Simon Clarke, a former Treasury Secretary, argued that it is “crazy” for the Government to drive wealthy people out of the country following the end of the non-dom regime. He said: “At a time of global tax competition and low growth, Britain cannot afford to get this wrong.”

Rachel Reeves, the Chancellor, has acknowledged that taxes are excessively high, telling the Lords Economic Affairs Committee: “We have a challenging economic inheritance, with high levels of tax as a share of GDP, historic high levels of government debt, and also economic growth that really for the last 15 years has been very poor by historical standards, because of weak productivity growth.” Despite raising taxes by a record £40bn in her first Budget, Ms Reeves has not ruled out further increases. She has also refused to rule out a wealth tax, arguing that no minister should get into speculation ahead of the Budget.

Only two-fifths of people investing in pension schemes identify as investors, despite almost 75% contributing to a workplace pension involving listed equities, according to research from investment platform Fidelity. On average, investors hold more in stocks (£126,010) than in cash savings (£80,609). However, nearly 60% of the 1,000 people surveyed identified as an “unengaged” investor. It was also shown that one in five consumers believe that investing is only for professionals, while 15% believe it is reserved only for the very wealthy. Ed Monk, associate director at Fidelity International said: “The UK has long had a culture of saving rather than investing, a mindset shaped by caution, familiarity and sometimes a lack of confidence.”

Analysis by AI-driven cybersecurity platform Lab 1 shows that 93% of data breach incidents now involve financial documents, including bank statements and invoices, with this driving a surge in fraud, cybercrime and reputational risk. The study looks at data such as emails and HR records, which are typically overlooked in breach reviews, with it noted that these files often contain sensitive commercial information. The study shows that 82% of breaches included HR documents, such as payroll information and CVs, while two-thirds included customer service records and 86% saw emails exposed. Lab 1 chief executive Robin Brattel said cybercriminals are “behaving like data scientists now – mining these leaks for high value assets that can be used for fraud or targeted attacks.”

According to a survey by the British Standards Institution (BSI), British business leaders are increasingly sceptical about the Government’s net zero strategy, with 71% believing that economic growth and climate goals are incompatible. The survey revealed a significant decline in corporate climate commitments, with only 36% of businesses setting net zero targets this year, down from 58% last year. Despite this, 83% of businesses still express a desire to take climate action, seeking support to do so. Scott Steedman, BSI standards director, noted that the survey indicates a “hiatus in corporate activity probably linked to changes in government policy.”

London hotel rates have surged as Oasis fans pour into the capital ahead of the band’s shows at Wembley. Analysis by RSM UK shows that average room rates in Wembley stand at £560 for July 25 compared to £114.83 for the following week. Chris Tate, head of hotels and accommodation at RSM UK, said: “Hotels are contending with a number of headwinds with increased employment costs, flat room rates and a dip in occupancy in May, so a demand uplift couldn’t come at a better time.”