David Solomon, chairman and chief executive of Goldman Sachs, has warned that the UK’s status as a global financial hub is “fragile” after years of over-regulation and high taxes. He highlighted the need for the Government to implement policies that retain talent and encourage capital formation, warning: “If you don’t set a policy that keeps talent here, that encourages capital formation here, I think over time you risk that.” He warned that recent tax policy changes, including the reversal of the non dom status, have led to senior Goldman partners relocating from London. Mr Solomon said he was “encouraged” by Rachel Reeves’ deregulation drive after the Chancellor warned that red tape was “the boot on the neck” of business, saying “she’s talking about regulation not just for safety and soundness, but also for growth.”

British vehicle production is set to reach its lowest level since 1952, with an expected output of just 755,000 vehicles in 2025, down from 818,000, according to the Society of Motor Manufacturers and Traders. This represents a nearly 17% annual decline. Mike Hawes, chief executive of the SMMT, attributed the downturn to factory closures, weak demand, and US tariffs, saying: “It has been one of the toughest periods in history for the UK automotive industry.” The SMMT anticipates that production will remain below 1m vehicles for the rest of the decade.

UK house price growth forecasts for 2025 have been lowered due to a weaker-than-expected first half of the year, ongoing geopolitical uncertainty, and fears of future tax rises. Savills has cut its forecast from 4% to just 1%, while it is forecasting a 4% increase for 2026, down from 5.5% previously. However, Savills remains optimistic about the longer-term outlook. It expects average house prices to rise by 24.5% between 2025 and 2029, slightly up from its previous projection of 23.4%. Savills expects the average house price to increase £86,300 by 2029, hitting £448,600 compared to an average of £362,300 by the middle of 2025. Meanwhile, Rightmove has revised its estimate for price growth in 2025 from 4% to 2%.

Prime Minister Sir Keir Starmer is set to sign a landmark trade deal with Indian Prime Minister Narendra Modi. The deal, agreed in May, has already brought in £6bn in investment to the UK and is expected to create 2,200 jobs. It includes significant tariff reductions on British goods – cutting average tariffs from 15% to 3%. Sir Keir said: “Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country.”

With Office for National Statistics data showing that Government borrowing hit £20.7bn in June, 26 MPs have called for a debate on a possible wealth tax that could boost Treasury coffers. An annual levy of 2% on individual assets exceeding £10m could potentially generate £24bn and the MPs argue that “such a measure would represent a fairer alternative to cuts” and could provide essential resources to combat poverty and inequality. However, Government officials have downplayed the likelihood of implementing such a tax, with one arguing that it is “off the table.” Labour MP Rachael Maskell said the levy would be “a first step in recognising progressive means of contributing to our country’s future at a time when we need investment.” A Treasury spokesman said: “The best way to strengthen public finances is by growing the economy – which is our focus. Changes to tax and spend policy are not the only ways of doing this. We are committed to keeping taxes for working people as low as possible.”

HMRC has introduced a new digital service aimed at simplifying tax management for 35m PAYE taxpayers. The new system features over 50 measures designed to streamline processes and reduce costs by £50m through less reliance on postal correspondence. Available via Personal Tax accounts, it allows users to easily check and update their income, allowances, and expenses. The initiative is part of HMRC’s Transformation Roadmap, which aims for 90% of customer interactions to be digital by 2030, ultimately creating a more automated and user-friendly tax system.

Shawbrook Bank is advancing plans for an initial public offering, with private equity owners BC Partners and Pollen Street Capital preparing to list the company in London as soon as the second half of this year. The small business lender aims for a £2bn valuation and is reportedly adding more investment banks to its advisory team. This move comes as a significant boost to the UK’s capital markets, which have seen many companies delay or abandon their listing plans.

NatWest is set to increase charges for business customers using cash, raising concerns among small business owners. Starting from August 30, fees for cash deposits will rise from 70p to 95p per £100, while cheque payments will increase from 70p to 75p per cheque. Martin Quinn from Campaign for Cash has condemned the move, saying: “The big banks are slowly trying to kill off cash as a payment method.”

A recent study by Royal Voluntary Service reveals a significant shift in Scottish businesses towards workplace volunteering, with 57% now offering paid volunteering time. This trend is largely driven by the need to combat employee burnout (36%) and enhance engagement (27%). The report highlights that if fully utilised, these volunteering days could yield £32.5bn in productivity gains annually. The report warns that many companies are not maximising their volunteering potential, with over 140m hours of volunteering time going unused last year.