The Start Up Loans Scheme reported a 7.3% increase in loan value in July, reaching £12.8m, despite low business confidence. The British Business Bank, which administers the scheme, highlighted the resilience of entrepreneurial spirit. Since its launch in 2012, the initiative has provided over £1.2bn to around 120,000 individuals, offering loans between £500 and £25,000 at a 6% interest rate, along with mentoring. Analysis shows that two in five recipients are female, compared with fewer than one in four of the overall SME population, while a fifth are from an ethnic minority background against fewer than one in ten of the wider small business population. An evaluation report noted that businesses established through the scheme have higher survival rates. The Government recently announced a £1bn expansion to the programme.

The Bank of England has cut interest rates to 4%, with the cut from 4.25% marking the fifth reduction since August 2024. Bank Governor Andrew Bailey said that while interest rates “are still on a downward path … any future rate cuts will need to be made gradually and carefully.” The Bank expects inflation – which rose to 3.6% in June – to peak at 4% in September, with this an increase on the 3.8% it predicted in May and double its 2% target. Mr Bailey told the BBC that while he did not expect higher inflation to persist, “we have to watch this very carefully.” The Bank’s nine-member Monetary Policy Committee (MPC) was split on the decision to cut rates, with four backing the 0.25% cut, four voting to hold the base rate and one – Alan Taylor – calling for a steeper reduction of 0.5%. This led to a second vote, with Mr Taylor then backing the move to 4%. Chancellor Rachel Reeves said the lower rate was “welcome news, helping bring down the cost of mortgages and loans for families and businesses.”

The Guardian says Chancellor Rachel Reeves and Prime Minister Keir Starmer will start to prepare the country for tax rises and reforms ahead of the Budget. While no date has been set for the Budget, sources say it is likely to take place in November, giving the Chancellor more time to “roll the pitch” for tax rises or spending cuts as advisers believe that a “no surprises” approach will help prevent a negative market reaction. While Treasury sources say that the Chancellor will stick to an election pledge not to raise income tax, National Insurance or VAT, levies on gambling are likely. This comes after the National Institute of Economic and Social Research said “moderate but sustained” tax rises would be needed to overcome a deficit of £41.2bn and restore fiscal headroom of almost £10bn.

Global funding for insurtech start-ups fell by 16.7% in Q2, slipping to $1.1bn. The Global Insurtech Report from Gallagher Re and CB Insights shows that funding for property and casualty insurtechs fell 68% quarter-on-quarter to $363m. However, life and health insurtech funding almost tripled, rising to $729m. AI-centred insurtech firms drew the majority of funding in Q2, raising $583m across 52 deals. Analysis shows that around 25% of the $60bn in total insurtech funding seen since 2012 has gone to AI-related technologies.

Complaints to the Financial Ombudsman Service (FOS) fell to their lowest in more than a year in the April to June quarter. Figures show that the FOS received 68,000 new cases in the period, with this down from 74,600 complaints seen a year ago. Complaints about motor finance were the most common grievance but the total dropped to 21,500 cases from 36,000. Complaints regarding fraud and scams fell to 6,800 from 8,800. The data covers a period that saw a series of FOS reforms that introduced tighter restrictions on complaints from professional representatives. As of April, banks are not charged for the first three complaints they receive in the financial year. A case fee of £650 is applied to subsequent complaints, with this reduced to £475 if a complaint is dismissed, withdrawn, abandoned, or found to be outside the FOS’s jurisdiction. The figures show that 30,800 cases were brought by professional representatives in the first quarter of the 2025/26 financial year, compared to 36,600 in the same period last year.

The Financial Conduct Authority (FCA) has announced that stricter regulations for electronic payment firms will come into force in May 2026. The new rules say companies must separate customer funds from their own, ensuring refunds in case of firm failures. The City watchdog says firms will face annual audits by qualified auditors, monthly reporting, and daily checks on safeguarded funds. The rules will apply to payment institutions, e-money institutions and credit unions that issue e-money. UK Finance said it backed a “robust and effective safeguarding regime that protects customers without placing unrealistic demands on businesses, particularly smaller firms,” adding that “getting the balance right means having rules that are practical, proportionate, and internationally competitive.”

The rise of AI is prompting companies to merge their Human Resources (HR) and Information Technology (IT) departments. A survey by Nexthink revealed that 64% of senior IT decision-makers expect this integration within five years. Fabio Sattolo of Covisian notes that merging these departments enhances decision-making speed. However, David D’Souza from CIPD cautions that while collaboration is beneficial, merging may dilute essential expertise.

HMRC must disclose if it used AI to make decisions after a court ruled in favour of tax advisers who claim the technology has been used when processing tax credit applications.

Revolut has appointed EY to replace BDO as its auditor. EY will serve as the fintech firm’s auditor for the financial year ending December 2026, with it noted that BDO and PwC also tendered for the contract. Revolut had reportedly considered switching auditors in 2023 after BDO flagged concerns about the “completeness and occurrence” of £477m of the firm’s revenues and warned that revenues “may be materially misstated.” Revolut’s annual report shows that it paid BDO £5.3m in audit fees last year.

Otterpool Park in Kent is set to become one of Britain’s first all-electric towns, featuring 8,500 homes equipped with electric appliances, rooftop solar panels, and batteries. Developers have partnered with energy firm SNRG to create a ‘smart’ microgrid, enabling the town to act as a virtual power plant that can supply renewable energy back to the National Grid. The development aims to generate half its electricity on-site through a solar farm and communal batteries, offering residents lower energy bills and reducing the need for costly grid upgrades.