Rachel Reeves has rejected forecasts of a £50bn “black hole” in the public finances, telling the BBC that the National Institute of Economic and Social Research think-tank had “more than most got their numbers wrong in the last few years.” Amid speculation that she will have to hike taxes or cut spending at the Budget, the Chancellor said: “People who seem to know what is in the Budget before we have made those decisions are just wrong,” adding: “A lot of them are talking rubbish, and frankly, a lot of what they’re saying is irresponsible.” Ms Reeves, who argued there were “lots of positive signs” in the economy, said she will look to “get the balance right” at the Budget as she looks to make sure there is enough money to fund public services “whilst also ensuring that we can bring growth and investment.” The Chancellor, who announced that the Budget will take place on November 26, said that while Britain’s economy “isn’t broken … it’s not working well enough for working people.”

Rachel Reeves has been criticised for opting to deliver the Budget on November 26, with concerns that leaving it so late in the year will mean firms face an extended period of uncertainty and speculation about tax rises. A poll from Barclays shows that over 55% of businesses are postponing investment decisions until the Budget is announced. Conservative business spokesman Andrew Griffith has warned that the delay could be “a death sentence for some” businesses, while shadow Chancellor Sir Mel Stride echoed the concerns, arguing that “businesses and investors need certainty now.”

The total value of mergers and acquisitions is expected to exceed £50bn in 2025 after Office for National Statistics data revealed that the value of domestic deals hit £3.4bn in Q2. The total for Q2, which was up £600m from the first three months of the year, came as the number of changes in major share ownership rose from 89 in Q1 to 501 in the second quarter. The value of UK firms taking over foreign companies halved to £4bn in Q2, while the total involving foreign firms snapping up UK companies came in at £9.3bn. Patrick Sarch, head of UK public M&A at White & Case, expects takeover activity to remain “robust” for the remainder of 2025, with the total value expected to exceed £50bn.

According to a report by insurer Howden, many businesses have seen losses in international projects or investments due to geopolitical and economic risks. More than half of the senior risk and treasury function decision-makers polled said their firm saw an international investment suffer political losses between 2020 and 2025. Multinational firms said they had experienced issues related to currency conversion and ownership rights. Foreign government interference accounted for the largest average loss across all companies at $20m, followed by currency exchange difficulties ($16.2m) and political violence ($14.6m). Howden noted that firms with political risk insurance coverage reported losses $1.4m lower on average than those without coverage.

Data shows that private investment in UK AI firms reached £2.9bn in 2024, with average deal sizes of £5.9m. The AI sector is estimated to contribute £11.8bn to the economy, with this double the figure recorded in 2023. Technology Secretary Peter Kyle has described the UK as a “global magnet” for innovation, saying: “We want you to keep investing here, keep building here, list here, scale here.” He added that regulators and investors must ensure the UK maintains its edge in a competitive global market, saying: “Countries can only prosper if they get the big calls right… to innovate, not imitate.”

S&P Global’s latest purchasing managers’ index (PMI) shows that the services sector saw the steepest pace on month-to-month growth in four-and-a-half years in August. The composite PMI for August came in at 53.5, with this up from 51.5 in July and marking a 16-month high on a scale where a reading above 50 represents growth. While the manufacturing PMI saw a slowdown, the services sector PMI came in a 54.2. Tim Moore, economics director at S&P Global Market Intelligence, said the report for August provides a “clear signal that growth prospects for the UK service economy have moved up from the lows seen this spring.” The report also revealed steeper growth in new work, with this driven by rising sales, while business confidence also hit a 10-month high. However, S&P Global said hiring remained “subdued,” with firms also noting that costs increased in August.

HMRC is leveraging AI to identify benefit fraud through social media analysis. The tax office scans profiles for “lifestyle inconsistencies,” where social media posts do not align with declared income. This includes monitoring for signs of luxury purchases that contradict tax returns. An HMRC spokesperson confirmed that AI use is limited to criminal investigations and is subject to legal oversight.

Paul Nowak, head of the Trades Union Congress (TUC), has urged the Government to implement higher taxes on wealth in the upcoming Budget. He has proposed several tax measures, including aligning capital gains tax with income tax and introducing a 2% annual wealth tax on assets over £10m. TUC analysis shows that two-thirds of voters support these proposals. Mr Nowak said: “We do think it’s right, as we go into the Budget, for those with the broadest shoulders to be asked to pay a fairer share.” The TUC calculates that wealth taxes could raise an extra £36bn a year, while a gambling tax could bring in £3bn more and a bank surcharge could raise between £20bn and £50bn over the next four years.

UK consumer spending on live music reached £6.68bn in 2024, a 9.5% increase from the previous year, according to the report from Live (Live music Industry Venues and Entertainment). This figure is 28.2% higher than in 2022 and over £2bn more than in 2019. However, the analysis shows that grassroots venues continue to close, with one in four late-night venues shutting since 2020. While the sector employed over 234,000 people in 2024, 78.8% of these workers were casual or freelance.