Rachel Reeves is under increasing pressure to revise Labour’s tax commitments, with a report by the Institute for Government (IfG) criticising the party’s decision to avoid raising income tax, national insurance, and VAT. The IfG asserts that these pledges hinder economic growth. IfG deputy economist Tom Pope said: “This autumn, the Chancellor finds herself in a difficult position. With tax rises all but inevitable, she should reject the path of least resistance, often taken by her predecessors, of raising taxes in an inconsistent way based on what seems easiest. Instead, now is the time to commit to tax reform and lay out an agenda on tax that fits with her broader growth objectives.”

French entrepreneurs, including LVMH’s Bernard Arnault, have condemned a proposed wealth tax by the Socialist Party, warning it could “destroy the French economy.” The tax, set at 2% for individuals with assets over €100m, aims to address France’s growing deficit. Arnault described the proposal as a “clear desire to destroy the French economy,” while Philippe Corrot of Mirakl labelled it “confiscatory.” Concerns grow that this tax could accelerate the exodus of wealthy residents from France.  Writing in the Telegraph, Adam Smith considers the call for wealth taxes in France, asserting that such levies are an “intellectual dead end for the Left” that will lead to capital, talent and jobs leaving the country. Smith suggests Rachel Reeves may continue to resist calls for a wealth tax, but the tax hikes she is considering will, he fears, “have similar if less dramatic effects” and will “disproportionately hit capital, investment and the middle class… stifling growth and productivity.”

Mark Robinson, a member of Patriotic Millionaires UK, is advocating for a new wealth tax as the Liberal Democrats discuss their economic stance. He believes the proposed £7bn windfall tax on banks is insufficient compared to a comprehensive wealth tax. Robinson’s group is campaigning for a 2% tax on assets over £10m and an increase in capital gains tax to match income tax rates. He said: “We cannot allow inequality to continue widening.” The Lib Dems are exploring their taxation policies ahead of the next general election, with pressure from various factions to raise taxes on the wealthy.

The latest flash PMI from S&P Global has warned that growth in the UK’s private sector had slowed to its weakest level in the three months to September as higher business costs led to “subdued” demand and further job cuts. Manufacturing output has dropped to a six-month low, while the service sector struggles with constrained spending. Some 50,000 job losses were also reported in the three month period. Chris Williamson, chief business economist at S&P Global Market Intelligence, said: “Alarm bells should be ringing that the economy is faltering.” Despite these issues, the PMI index remains above 50, indicating modest growth.

Sacha Lord, a member of the Labour Party and former night-time economy adviser, criticises Rachel Reeves for her handling of the hospitality sector. He labels the 2024 Budget as a “disaster for hospitality,” leading to over 110,000 job losses. Lord expresses a lack of faith in the current leadership, stating it is too London-centric and has failed to support regional businesses. He urges the Chancellor to present a clear plan for the sector, warning that poor decisions could cost Labour councillors their jobs in the upcoming elections.

Jaguar Land Rover (JLR) has announced an extension of its factory closures until October 1, 2025, due to a cyber-attack. A spokesperson stated: “We have made this decision to give clarity for the coming week as we build the timeline for the phased restart of our operations.” JLR is collaborating with cybersecurity experts, the National Cyber Security Centre (NCSC), and law enforcement to ensure a secure restart. Experts estimate that JLR’s profits have already taken a £120m hit.

Labour’s proposed digital identity scheme poses significant security risks, according to experts. Andrew Orlowski, a former software engineer, warns that the system could be vulnerable to hacking, potentially freezing state benefits and causing chaos. Orlowski says he has a copy of a confidential report from the Government Digital Service which raised concerns about the scheme’s vulnerabilities, which could lead to severe consequences for citizens and national infrastructure. Tory MP David Davis points to the Government’s poor record on data security, saying: “The state has lost over 20m citizens’ records in the past.” If cyber criminals or hostile states stole the UK’s data, “it would be an irreversible disaster for the ordinary people to whom it happens.” Besides this, Deloitte – one of the consultants on the UK digital ID scheme – outsourced work to software engineers in Romania, whose capital Bucharest is dubbed the “cyber-crime capital of the world.”

The Organisation of Economic Co-operation and Development (OECD) has increased its forecast slightly for UK growth this year from 1.3% to 1.4%, but predicts a fall again to 1% next year, unchanged from previous forecasts. Inflation in the UK is expected to hit 3.5%, up from its previous estimate of 3.1% and the highest of the G7 advanced economies, falling to 2.7% in 2026. Chancellor Rachel Reeves responded saying the figures “confirm that the British economy is stronger than forecast.” But Shadow Chancellor Sir Mel Stride said the OECD confirmed “what hard-working families already feel – under Labour, Britain is in a high tax, high inflation, low growth doom loop.”

The EU is investigating Apple, Google, Microsoft, and Booking Holdings for inadequate measures against online financial fraud, potentially leading to fines under the Digital Services Act.