The Government has been warned that the Employment Rights Bill must be changed to prevent a crisis in the jobs market, with business groups voicing concern over the potential impact on hiring. In a letter to Business Secretary Peter Kyle, the British Chambers of Commerce, Make UK, the Confederation of British Industry and the Institute of Directors said a clampdown on zero hours contracts could hinder firms’ capacity to offer flexible working. They also warned that new rights over strikes could lead to “deteriorating industrial relations” and question reforms that will give workers the right to sue for unfair dismissal from the first day of their employment. Sources say that while the Federation of Small Businesses did not sign the letter, it agrees with the complaints.

A £150bn package of US investment into the UK has been announced during President Donald Trump’s state visit, with the Government saying this will create more than 7,600 jobs. Prime Minister Keir Starmer said the investments “are a testament to Britain’s economic strength and a bold signal that our country is open, ambitious, and ready to lead.” Among the deals, Blackstone, the world’s largest alternative asset manager, plans to invest £90bn in the UK over the next decade, while Microsoft has pledged to spend £22bn in the UK over the next four years, and Google will spend £5bn over the next two years to expand an existing data centre. Real estate investment trust Prologis is set to invest £3.9bn into the UK’s life sciences and advanced manufacturing, while tech company Amentum plans to create more than 3,000 jobs in the UK. Business and Trade Secretary Peter Kyle said: “These record-breaking investments will create thousands of high-quality jobs across the UK.”

Retail investors are growing increasingly confident in the UK and US markets, with a poll from investment platform eToro showing that more than a third of UK retail investors believe the domestic market offers the strongest long-term opportunities. UK investors had turned to emerging markets during the first half of the year, having been deterred by tariffs, geopolitical tensions and weaker currencies at home and across the Atlantic. The poll also shows that 35% believe the US market can offer sustainable returns. Lale Akoner, global market strategist at eToro, said: “Portfolios are once again tilting back to the US, reflecting recognition that the American market remains the cornerstone of global investing.”

Inflation came in at 3.8% in the year to August, figures from the Office for National Statistics show, with this matching the rate recorded in July. Chancellor Rachel Reeves said she is “determined” to get costs down, adding: “I know families are finding it tough and that for many the economy feels stuck.” Shadow Chancellor Mel Stride said Labour’s tax policies are “stoking inflation,” saying: “With borrowing costs hitting a 27-year high, working people and businesses are bracing for even more tax rises to pay for Labour’s mismanagement.” Yael Selfin, chief economist at KPMG UK, said a rise in inflation had been driven by “domestic policy choices,” including the increase in employers’ National Insurance contributions. She added: “These higher costs have been passed on by businesses to consumers, feeding through into higher headline inflation.” James Smith, developed market economist at investment bank ING, said inflation holding at 3.8% “means the prospect for further interest rate cuts this year very much hang in the balance.”

Sir Clive Cowdery, founder of the Resolution Foundation, has urged Labour to shift its focus from taxing the rich to enhancing productivity growth. He highlighted that living standards have stagnated for two decades, with typical incomes at £31,000, far below the £51,000 expected if growth had continued at the rate seen in 2005. Sir Clive said: “The overriding question facing Britain is not who should benefit from the spoils of growth, but how we get back to having some spoils of growth to share.” He emphasised that future improvements in living standards depend on economic growth rather than increased taxes.

Stuart Morrison from the British Chambers of Commerce has warned that rising National Insurance costs and tariffs are squeezing company margins, saying: “Businesses will be worried by inflation holding at 3.8% at a time when cost pressures continue to bite.” He added: “Our message to the Chancellor is clear – there must be no new tax rises on business. Firms cannot provide the economic growth we all need if they continue to be hampered by rising costs.” Elsewhere, Tom Clougherty from the Institute of Economic Affairs has highlighted the ongoing cost-of-living crisis, attributing it to poor economic management and rising taxes.

The Financial Conduct Authority is set to adapt regulations for cryptocurrency firms, exempting some rules while tightening others to address unique risks, emphasising the high-risk nature of crypto investments.

PwC has announced job cuts due to a challenging economic environment, saying it had made “the tough decision to reduce roles in some areas.” The firm reported a 0.4% increase in annual revenues, totalling £6.35bn, marking its slowest growth since 2009. Despite the downturn, profits rose by 20% to £1.37bn from £1.14bn in 2024, and average partner pay increased slightly from £862,000 to £865,000. Income from tax advice rose 6% to £1.23bn, while the deals teams brought in revenue of £1.05bn, marking a year-on-year increase of almost 4%. Audit revenue, meanwhile, was broadly flat at £1.50bn.

Marks & Spencer has reported an 8% increase in suit sales over the past year, selling over half a million units. This growth coincides with the retailer’s highest ever ‘style ranking’ with 18 to 34-year-olds in its annual YouGov poll of customers. Mitch Hughes, director of menswear, explained: “Men’s formal wear continues to be a growth category for us as men look to smarten up their wardrobes for the office.” M&S has also increased its share of the men’s suits market from 14.2% to 19.4% in the year ending April.