Seven leading industry bodies have urged MPs to accept amendments to the Employment Rights Bill, saying changes proposed by the House of Lords will ease some of the burdens firms face when new workers’ rights come into force. Peers have called for the removal of a provision that would protect workers from unfair dismissal at “day one” of employment and suggested MPs should vote to retain a turnout threshold of 50% of union members voting in a ballot for it to be valid. Jane Gratton of the British Chambers of Commerce said ministers must accept the proposed changes if they want businesses to help “grow the economy and create more opportunities for people across the country,” while David Hale, government affairs director at the Federation of Small Businesses, said it is “essential” that ministers accept the amendments. Alex Hall-Chen of the Institute of Directors said the amendments “will go a considerable way to stemming the negative impacts that the Bill’s measures are already having on employers’ appetite to hire.” Matthew Percival, future of work and skills director at the Confederation of British Industry, said the Bill is “having a chilling impact on the labour market even before it comes into effect, with jobs down, disputes up and pay slowing.”

The Chancellor has told ministers to ensure Government contracts go to companies that will boost British jobs, saying that “people around the UK” need to “feel the full impact of Government spending through investment in skills and high-quality jobs.” In a letter to cabinet ministers, Rachel Reeves and Pat McFadden, Chancellor to the Duchy of Lancaster, said they must “ensure the creation of British jobs, productivity-enhancing opportunities, and skills are prioritised in every major contract.” This comes after Office for National Statistics data showed that the number of employees on the payroll dropped by around 41,000 in June, while the unemployment rate climbed to four-year high of 4.7%.

Although Prime Minister Keir Starmer and Chancellor Rachel Reeves have refused to rule out bringing in a wealth tax in the Budget, the Independent‘s Andrew Grice says that the introduction of such a levy is unlikely. He says a wealth tax would be complex and take years to introduce, with Dan Neidle, founder of Tax Policy Associates, saying a tax on wealth would “lower long-run growth and employment … make UK businesses more fragile and less competitive, and create strong incentives for capital reallocation and migration.” Mr Grice suggests that Ms Reeves could consider options that “are close to being a wealth tax,” such as increasing capital gains tax, raising the top rate of income tax or bringing in higher council tax bands for the most expensive properties. He says that while he does not expect to see a wealth tax, “the Budget will increase existing taxes on the wealthy.”

Business Secretary Jonathan Reynolds has dismissed calls for a wealth tax as “daft,” telling GB News that the Government has already “increased taxes on wealth as opposed to income,” pointing to taxes on private schools and changes to inheritance and capital gains taxes. Amid calls for a tax on wealth, including from some MPs within his own party, Mr Reynolds said: “The idea there’s a magic wealth tax, some sort of levy … that doesn’t exist anywhere in the world.” He added: “There’s no kind of magic … We’re not going to do anything daft like that.” He went on to urge those calling for such a levy to “get serious.” Former Labour leader Lord Kinnock is among those calling for the wealthy to be targeted, proposing a 2% tax on those with more than £10m. Experts at the Institute for Fiscal Studies are among those to have warned the Government that it is unlikely to raise significant sums from a wealth tax, highlighting concerns over valuing assets and discouraging investment.

Experts have warned that higher inheritance tax bills could see thousands of family businesses struggle or even collapse. As of 2027, unspent pensions will be dragged into the inheritance tax net and accountants have warned that this will hit businesses that run their own individual pension schemes. The move will also mean many families will see bills of up to 67% when inheritance tax and income tax are both payable, while some could pay over 90%. Gary Smith of Evelyn Partners said the changes are “indirectly a further attack on business owners,” who have already seen an increase in National Insurance contributions and their shares become subject to inheritance tax as of April 2026. A Treasury spokesman said: “We continue to incentivise pensions savings for their intended purpose – of funding retirement instead of them being openly used as a vehicle to transfer wealth – and more than 90% of estates each year will continue to pay no inheritance tax after these and other changes.”

Analysis suggests that changes to tax policies have led to a 20% decline in retirement savings over six months. According to the House Money Index, the average monthly pension contribution has decreased from £65.10 in December to £53.40 this month, marking the first six-month drop in two years. Kara Gammell, a personal finance expert at MoneySuperMarket, said: “People are reducing their private and workplace pension contributions, perhaps to help offset rising costs and stretched household finances.” Shadow Pensions Secretary Helen Whately has warned that Britain “is facing a pension poverty time bomb of Labour’s making,” accusing ministers of “squeezing the public with more taxes and higher bills.” John O’Connell, chief executive at the TaxPayers’ Alliance said: “Sky-high taxes and soaring living costs mean hard-pressed households are dipping into their retirement savings just to stay afloat.”

Arun Advani, head of the Centre for the Analysis of Taxation, has advocated for a reform of capital gains tax (CGT) to address a £30bn shortfall in public finances. He argues that adjusting CGT rates to match income tax rates could potentially double the £12.1bn raised in the 2023/24 tax year. Mr Advani said: “If the Government were looking at taxing wealth better it would be much better to start by fixing capital gains tax.” However, critics warn that such changes could deter businesses and investors, with Jason Hollands from Evelyn Partners cautioning that increasing CGT rates could undermine economic growth. Additionally, a proposed wealth tax could impose significant compliance costs on businesses, potentially amounting to £10bn annually.

In her first major interview since being appointed chief executive of the Competition and Markets Authority (CMA), Sarah Cardell stresses the importance of balancing competition with the Government’s growth agenda, saying: “The fundamentals of promoting competition and protecting consumers… are pretty foundational to driving economic growth.” Ms Cardell says she is focused on streamlining processes, reducing investigation times, and addressing aggressive sales practices. She believes that the CMA plays a crucial role in the UK’s economic success, saying: “There is no tension in promoting competition, supporting consumers and aligning with the Government’s growth agenda.”

Retail sales volumes were up by 0.9% in June, rebounding from a 2.8% fall in May. Sales in food stores were up 0.7% in June, while fuel sales rose 2.8%. The Office for National Statistics data also shows that sales increased by 0.2% between April and June compared with the previous three months. Jacqueline Windsor, head of retail at PwC UK, noted that England’s warmest June on record “discouraged shoppers from visiting high streets, with footfall declining and online retail sales penetration increasing.” Jacqui Baker, head of retail at RSM UK, noted that consumer confidence “ticked up” in June but warned that “nervousness among consumers persists, and the unexpected rise in inflation won’t have helped,” while Matt Swannell, chief economic adviser to the EY Item Club, cautioned that the sales bounce-back “masks a challenging backdrop” for the UK economy.

The number of homes for sale reached a 10-year high in June, prompting property experts to revise their growth forecast for 2025 from 4% to 2%. According to Rightmove, estate agents had an average of 65 homes on their books, with sellers waiting over two months to find buyers. The average asking price fell by £4,531, or 1.2%, to £373,709 in July, marking the largest seasonal decline since 2002. Despite the challenging conditions, sales agreed were 5% higher than last year, and the Bank of England is expected to cut interest rates, which may further lower mortgage rates.

UK companies with more than 250 employees will be required to report payment practices to combat late payments, with audit committees to be given greater responsibility for ensuring management addresses the matter.

The International Monetary Fund (IMF) has warned that Chancellor Rachel Reeves faces “significant challenges” in delivering the Government’s pro-growth agenda, with the UK’s “limited” headroom on its public finances meaning “fiscal rules could easily be breached if growth disappoints or interest rate shocks materialise.” The IMF praised the UK’s fiscal plans, saying they “strike a good balance between supporting growth and safeguarding fiscal sustainability,” but warned that Ms Reeves may have to consider increasing taxes or reducing spending. It also suggested that ministers could scrap the pension triple lock or start charging for the NHS. The IMF expects the UK economy to grow by 1.2% this year and 1.4% in 2026. Ms Reeves said the IMF report “confirms that the choices we’ve taken have ensured Britain’s economic recovery is under way,” adding that the Government’s fiscal rules will enable ministers to tackle “deep-rooted” economic challenges by “investing in Britain’s renewal.”

The US Securities and Exchange Commission (SEC) is contemplating new regulations that could significantly impact foreign companies listed in New York, potentially benefiting the London Stock Exchange. The proposed changes may require these companies to secure a secondary listing elsewhere. Lawyers at DLA Piper say the SEC plan could “turn on the tap” for London to attract secondary listings from foreign private issuers (FPI). It is noted that under the SEC’s plans, foreign companies could be subject to American accounting rules. Companies using FPI rules are not subject to quarterly reporting requirements and can use international accounting standards to retain their US listings.

Geoffrey Hinton, known as the ‘Godfather of AI’, has raised alarms about the rapid advancement of AI and its potential to eliminate entire job categories. In a recent episode of Diary of a CEO, he warned: “The real danger isn’t that AI will fail to do your job. It’s that it will do it better — and cheaper.” Mr Hinton predicts that many roles, particularly those involving basic reasoning, writing, and analysis, could be automated by mid-2027. He advises individuals to focus on developing skills that leverage human strengths, like empathy and creativity, so as to remain irreplaceable in an AI-driven world.