Rachel Reeves has been advised by the Resolution Foundation to increase income tax by 2 pence while reducing national insurance by the same amount. The change could generate £6bn, impacting pensioners, landlords and self-employed individuals but sparing salaried workers. The foundation also suggested raising sugar taxes and reducing the VAT threshold from £90,000 to £30,000 – a move that would raise £2bn a year by 2030. Adam Corlett, the principal economist at the Resolution Foundation, said: “These sensible reforms would raise revenue while doing the least possible harm to workers and the wider economy. And by acting decisively, the Chancellor can turn her full attention back on to securing stronger economic growth.” The left-leaning think tank’s former boss is pensions minister Torsten Bell who is now playing a key role in writing November’s Budget.

The Treasury has responded to a petition from over 20,000 individuals urging the Government to halt pension tax reforms set for April 6, 2027. The changes will impose a 67% double taxation on pension funds, combining income tax and inheritance tax. Nathan Bridgeman, who initiated the petition, stated: “This may now result in a disproportionate and unfair double taxation on beneficiaries.” The Treasury argues that the reforms are necessary to prevent pensions from being used as wealth transfer vehicles and to ensure tax reliefs serve their intended purpose of funding retirement.

Rachel Reeves faces criticism over her proposal to increase business rates for around 4,000 shops, including supermarkets. The British Retail Consortium (BRC) warns that this could exacerbate inflation, which is currently at 3.8%. Food inflation has already risen to 5.1%, the highest in 18 months. BRC chief executive Helen Dickinson said: “The biggest risk to food prices would be to include large shops…in the surtax.” Retailers are concerned that these tax increases will lead to higher prices for consumers, especially during the upcoming holiday season.

The US and the UK have agreed to set up a Transatlantic Taskforce for Markets of the Future to improve access to capital markets and enhance digital assets regulation. Officials from the US and UK treasuries will chair the new body that will also include regulators from both countries. They have been charged with developing concrete recommendations within 180 days. The announcement follows heavy criticism of the UK Government for failing to embrace the cryptocurrency industry. Commenting on the move, the UK Cryptoasset Business Council, said: “Get this right and it has the potential to turbocharge the City of London and the transatlantic economy.”

Which? has submitted a super-complaint to the Financial Conduct Authority (FCA) regarding delays and poor service in home and travel insurance claims. Rocio Concha, director of policy and advocacy at Which?, said evidence shows the insurance markets are failing consumers. Many claimants report distressing experiences, with half of those surveyed indicating negative impacts on their mental health. Which? said the FCA had failed to make clear what it was doing to hold companies to account and called on the regulator to do more, such as “requiring firms to take remedial action and provide redress”.

The Prudential Regulation Authority (PRA) has proposed significant regulatory cuts to ease the banking sector’s operational burdens. The plan includes eliminating 37 overlapping reporting templates, which could save banks approximately £26m annually. The regulator said the changes would not compromise its “primary objective” of ensuring the safety and soundness of firms.

According to a recent poll by the Tony Blair Institute (TBI), 38% of Britons view artificial intelligence (AI) as an economic risk, while only 20% see it as an opportunity. This scepticism poses a challenge to Keir Starmer’s ambition for the UK to become an AI superpower. Jakob Mökander, TBI’s director of science and technology policy, stated: “The UK will not become an AI superpower unless the Government builds broad public trust in the technology.” The report also highlighted the need for effective regulation and public education to foster trust in AI.

BMW Financial Services has allocated £206.9m to address potential claims from the motor finance scandal, as revealed in recent accounts. This marks a significant increase from the £70.3m set aside in 2023. The Financial Conduct Authority (FCA) plans to introduce an industry-wide redress scheme next year, aiming to compensate consumers inadequately informed about their deals.

Traders have lost $1.5bn (£1.1bn) in cryptocurrency bets due to a price slump, with Bitcoin falling 2.9% to under $112,000 and Ether dropping 9% to $4,075. Over 407,000 traders faced margin calls as prices declined, pushing the total cryptocurrency market below $4tn. Edouard Hindi, chief investment officer at Tyr Capital, noted a decrease in buying activity, leading to liquidity issues.