Economic optimism among British businesses declined in August, falling three points to 44%, according to the Lloyds Business Barometer. But business confidence rose slightly to 54%, driven by a 14-point increase in manufacturing confidence. However, construction confidence dropped to a four-month low. Hann-Ju Ho, a senior economist at Lloyds, commented: “This continued upward trend in business confidence suggests UK firms remain optimistic about their own trading prospects.”

The FT reports on how Labour is facing significant criticism from business leaders who previously supported the party, with executives now expressing disappointment over “poor political decisions” and a “lack of ability”.

Labour MPs have raised concerns that the Treasury’s “kite-flying” about potential tax rises in the upcoming Budget could undermine consumer confidence and hinder economic growth. One Labour MP said: “The key thing in the next few months is that we don’t end up in a cycle of talking about tax rises [and] confidence in the economy weakens. Meanwhile, the FT reports on how Labour is facing significant criticism from business leaders who previously supported the party, with executives now expressing disappointment over “poor political decisions” and a “lack of ability”.

Female chief financial officers (CFOs) are outperforming industry benchmarks, according to OneStream’s Glass Chair study. UK firms with female CFOs saw a 13% increase in total shareholder return compared to their previous CFOs. The study found that female-led companies delivered an average return of 1.5% above benchmarks, with healthcare firms achieving 4.7%. Aisling Harney, senior director at OneStream, stated: “Companies led by women CFOs often outperform their peers.” However, women face structural barriers, taking an average of 18 years to reach the CFO role, three years longer than men.

The Institute of Public Policy Research (IPPR) suggests Rachel Reeves should introduce a new tax on bank reserves at the Bank of England (BoE) to generate £8bn annually. The proposal draws inspiration from Margaret Thatcher’s 1981 deposit tax. Additionally, the IPPR estimates that the Chancellor could recover £12bn by halting loss-making bond sales under the quantitative tightening scheme. Carsten Jung from the IPPR said: “What started as a programme to boost the economy is now a massive drain on taxpayer money.” Responding to the idea, a spokesman for UK Finance said: “The banking sector is very important to UK tax revenues, making a total tax contribution of almost £45bn last year. Banks based here already pay both a corporation tax surcharge and a bank levy. Adding another tax would make the UK less internationally competitive.”

Warnings have surfaced regarding the security of digital wallets, with a report by Which? revealing that many banks still use easily compromised one-time passcodes (OTPs). This reliance on SMS OTPs leaves customers vulnerable to fraud, with criminals exploiting phishing scams to gain access to card details. Only three out of fourteen providers linked to mobile wallets avoid OTPs. Rona Warne from Global Payments noted that speed often trumps security for consumers. Which? urges banks to invest in stronger authentication methods to protect users against evolving fraud threats.

A review by the Cabinet Office has revealed 11 data breaches across public sector entities, including HMRC, the Metropolitan Police, the benefits system and the MoD. The review was triggered by the 2023 leak of personal data of about 10,000 serving officers in the Police Service of Northern Ireland. The science, innovation and technology committee, along with the Information Commissioner forced its release on Thursday, 22 months after it was completed. The Government said it had delivered on 12 of the 14 recommendations about toughening up data security, but the Information Commissioner John Edwards called for Whitehall to go “further and faster” to “put their practices in order.”

Drax power plant is under investigation by the Financial Conduct Authority (FCA) for allegedly misleading investors and the Government about its wood sourcing sustainability. The company has faced criticism for receiving substantial renewable energy subsidies while burning wood pellets imported from North America. Frankie Mayo, an analyst at Ember, said: “It’s right that the UK’s largest emitter faces additional scrutiny.” Drax has previously been fined £25m for inadequate sustainability data and is now subject to a full audit of its supply chain for 2023.

Developers at Canary Wharf have submitted plans to Tower Hamlets Council for a 50m floating lido at Eden Dock, featuring a natural water pool, saunas, a clubhouse, and a restaurant. If approved, the facility could open next summer.