Private business owners in London are experiencing unprecedented optimism about growth, according to the latest KPMG private enterprise barometer survey. Confidence has surged to the highest level in the UK, rising from 88% at the start of the year. Anna Purchas, senior partner at KPMG UK, stated: “Leaders in London are entering the business end of 2025 with the highest level of growth confidence we’ve seen across the UK this year.” However, nearly 50% of owners still cite inflation as their primary concern, alongside rising interest rates and employment costs.

Global fintech funding fell to $44bn in the first half of 2025, marking the lowest level in five years, according to KPMG’s bi-annual pulse of fintech report. The UK saw a 5% decline, with investment dropping to $7.2bn. Tim Johnson, KPMG’s global lead for financial services deals advisory, noted: “The first half of 2025 has underscored a recalibration in fintech M&A activity.” Despite the downturn, digital assets and AI investments showed promise, with digital assets labelled the “brightest star” in fintech, attracting $8.2bn.

The Financial Ombudsman Service (FOS) is facing significant challenges as the Government plans major reforms. Following the dismissal of chief executive Abby Thomas due to a “mutual collapse in confidence,” the FOS has seen leadership instability. Baroness Zahida Manzoor also stepped down amid controversy. The Treasury’s review proposes closer ties with the Financial Conduct Authority (FCA), which may shift the balance away from consumers and towards financial institutions. Charlotte Hill, partner at Charles Russell Speechlys, said the reforms would result in “tighter coordination between the FOS and FCA, legislative changes to redress mechanisms, and a sharper focus on pro-growth regulation.”

The UK is lagging behind the US in cryptocurrency regulations, particularly regarding Bitcoin treasury companies (BTCs). Rachel Reeves aims to enhance economic growth by easing regulations, but current UK accounting rules treat Bitcoin as an intangible asset, obscuring its true value. This punitive approach discourages UK firms from holding digital assets, while US regulations allow for fair value accounting, enhancing transparency. Gautam Pillai, head of fintech research at Peel Hunt, argues that updating UK standards could attract investment and support innovation. He said: “If the Chancellor is serious about loosening the heavy tread of the boot, she should start here.”

The Competition and Markets Authority (CMA) is reconsidering its plan to lift a ban on large banks bundling small business loans with current accounts. The Federation of Small Businesses expressed concern over a potential “likely reduction in choice” while Richard Davies, CEO of Allica Bank, warned that removing the ban could perpetuate “poor service and value” for SMEs. Tina McKenzie at the Federation of Small Businesses said the current rule “has allowed small businesses to shop around for the best borrowing and banking products separately.”

Labour is considering raising the state pension age to 70, linking future increases to life expectancy. Suzy Morrissey, commissioned by Work and Pensions Secretary Liz Kendall, will review automatic adjustments used in countries like Denmark. Experts warn that such changes could disrupt retirement planning. Currently, the pension age is set to rise to 67 next year and to 68 between 2044 and 2046. Morrissey noted that spending on the state pension has increased significantly, with recommendations expected in several years.

Andrew Griffith, the shadow secretary of state for business, has pledged to repeal Labour’s 300-page Employment Rights Bill. In a video, he uses a chainsaw to symbolically cut through the legislation, which he claims will harm job creation. Griffith commented: “The next Conservative government will repeal all of the job-destroying measures in the bill.” Currently under parliamentary scrutiny, the bill has faced opposition from major business groups due to its provisions that enhance employees’ rights to sue for unfair dismissal. Deputy Prime Minister Angela Rayner argues it will significantly improve workers’ rights.

Rachel Reeves is considering reforms to property taxation as part of preparations for her second Budget, with Treasury officials examining options ranging from new council tax bands on higher-value homes to more radical annual levies. The review comes amid concerns that the current system, particularly stamp duty, is dampening economic growth by discouraging mobility in the housing market. Both the IMF and the Institute for Fiscal Studies have urged the Government to scrap stamp duty, describing it as one of the most damaging taxes in the UK. There is speculation that the Chancellor is considering a recurring property tax on homes valued above a certain amount that could replace stamp and council tax. However, government sources have denied reports they are considering a new “national tax” on property sales above £500,000.

Government borrowing costs increased as 30-year gilt yields rose to 5.61%, nearing a 27-year high. Concerns over persistent inflation and government borrowing have unsettled traders, especially after the recent base rate cut to 4% on August 7. Simon French, chief economist at Panmure Liberum, noted a lack of clear catalysts for the changes, attributing some demand shrinkage to the closure of defined benefit pension funds.

Research suggests that weight-loss jabs offered on the NHS could significantly cut the number of sick days taken by workers. A study of 421 patients found sick leave dropped by a third within three months of treatment, while the proportion of patients taking no sick leave at all rose from 63% to 77% after six months. The data comes from Oviva, the largest providers of weight-loss support for NHS patients on the injections. With obesity linked to millions of lost workdays annually, the government believes wider access to weight-loss drugs could save taxpayers up to £5bn a year by boosting productivity.