The Chancellor has been urged to prioritise stability for the financial services industry, with banking executives warning against tax hikes in a bid to ensure the sector remains competitive. Barclays chief executive CS Venkatakrishnan warned that “milking the financial sector is not good,” as it stifles investment, competition and growth. Identifying London as one of the world’s two great financial centres, he said: “You need to encourage it to grow, not tax it out of existence.” Tiina Lee, the UK chief executive of Citi Bank, says Citi clients are urging officials to deliver a stable and competitive tax regime, adding that this is “the key message we continue to deliver to the Government.” It has been suggested that the Chancellor could target lenders with a tax hike in the Budget as she looks to plug a £20bn fiscal hole, despite banks already facing a total rate of 45.8%.

Barclays has urged the Government to avoid increasing taxes on SMEs in the upcoming Budget. The bank’s analysis shows that a lack of confidence and fears of tax hikes are stalling £60bn in potential investment. CS Venkatakrishnan, Barclays’ chief executive, highlighted that SMEs are concerned about economic conditions and high borrowing costs, saying: “Even small improvements in SMEs’ appetite to invest could have transformational impacts for the UK economy.” Barclays is calling for consistent policy direction to boost business confidence.

Britain is missing out on £2bn in spending from non-EU visitors due to the removal of tax-free shopping in 2021, according to analysis from Global Blue and the Association of International Retail. The change has led to stagnation in tourist spending, which remains at 75% of pre-pandemic levels. In contrast, Spain, France, and Italy have seen significant increases in visitor spending.

Retail sales in the UK have declined for every month over the past year, with a further drop expected in October. The Confederation of British Industry’s monthly distributive trades survey reported a measure of minus 29% for retail sales volumes in the year to September, an improvement from minus 32% in August. Consumer confidence has been shaken by uncertainty surrounding the upcoming autumn budget, which may introduce new tax increases.

Chancellor Rachel Reeves faces significant challenges, according to Hetal Mehta, chief economist at St James’s Place, who says that measures set to be unveiled in the Budget are unlikely to bridge the £30bn fiscal black hole. She warned: “Whatever fiscal package the Chancellor comes up with is likely to be insufficient.” Labour’s vow that there will be no increases to income tax, National Insurance or VAT, may further limit Ms Reeves’ options and Ms Mehta suggests that “something has to give, whether it is the fiscal rules or the manifesto pledges.” She also argues that simplifying tax changes could be more effective than numerous small adjustments.

Office for National Statistics (ONS) data shows that household incomes fell last year, with high inflation and taxes having an impact. Equivalised income dropped by £1,400 in real terms as salaries did not keep up with inflation. This measure takes household sizes into account, assuming that a two-person household will not need double the amount of income that a single person requires to maintain the same standard of living. The ONS report shows that the poorest fifth of UK households saw a 7.7% decrease in equivalised income, while the richest fifth saw a 3.4% decrease. The study also shows that 46.7% of people received more in benefits than they paid in tax.

Data from Ofgem shows that the amount of money customers owe to energy suppliers hit a record high of £4.4bn in the second quarter of this year, having increased by £750m in a year. Household debt and arrears, which stood at £1.45bn at the end of 2020, came in at £3.69bn in Q2 2024. The data shows that more than 1m households have no arrangement to repay their debt. Average debt for people who do not have a repayment plan with their provider stands at £1,716 per household.

A report from the New Financial think-tank and the Capital Markets Industry Taskforce has called for defined contribution (DC) pension schemes to increase their default fund allocations to UK equities by 20% to 25%. This shift could inject up to £95bn into London equities by 2030. A survey revealed that two-thirds of workers prefer more UK equity investment, despite potentially lower returns. Currently, UK stocks represent only 9% of DC pension fund investments. William Wright, founder of New Financial, said that claims of vested interests in this proposal are “deeply inaccurate.” The Department for Work and Pensions noted that 40% of workers are undersaving for retirement.

KKR has invested over $20bn in Europe this year, marking a record for the firm. This capital was allocated across private equity, infrastructure, credit, and real estate, with more than $10bn from KKR’s buyout arm alone.

Apple has urged the European Commission to repeal the Digital Markets Act (DMA), claiming it hampers user experience and security. The company said that the legislation has exposed customers to security risks and is disrupting the seamless way Apple products work together. Apple warned that the DMA “means the list of delayed features in the EU will probably get longer.” The company also highlighted concerns over unfair competition, noting that similar rules do not apply to Samsung.

While 74% of UK workers report feeling confident about calculations on their payslip, 24% struggle with tax deductions and 19% find pension contributions confusing. The poll from PayFit also shows that 18% lack confidence in identifying underpayment. The study reveals that UK employees have the highest trust in their payslips, with 94% believing in their accuracy, compared to 88% in Spain and 81% in France.