Optimism among UK businesses has declined sharply over the last month, with an index of corporate confidence produced by Lloyds Bank falling 12 points to 42%. Optimism about the economy fell to 33%, with this still above the long-term average of 19%. The analysis also shows that firms expect to hand out less generous pay settlements in the coming year. More than half (55%) expect to expand their workforce, down from 62% in the previous month. Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, said businesses “may find reassurance that the Bank of England is expected to reduce interest rates further in the next six months.”

Of all major economies, the UK is the second most likely to face a debt crisis in the next two years, according to a poll of financial professionals by Deutsche Bank. France has been deemed the most likely to face a crisis-level bond sell-off before 2028. More than half of the institutional investors polled identified France as being at risk, while a fifth voiced concern over the UK.

London has maintained its position as the top city in the European Cities Growth Index (ECGI), according to LaSalle Investment Management’s latest report. The capital’s strong expected employment growth contributed to its ranking. Paris follows closely, boasting the highest human capital score. In the UK, the Manchester-Liverpool area and Bristol improved their rankings due to anticipated defence spending impacts.

Analysis shows that 7,860 firms were de-authorised by the Financial Conduct Authority over the past eight months, including 800 advice firms. The majority of firms de-authorised were involved in credit broking, while 521 offered investment advice, and 285 were in mortgage advice. Meanwhile, 4,402 firms joined the register during the same period. Of these, 442 offer investment advice and 409 provide mortgage advice. Quilter had the largest increase in headcount, adding 837 advisers during the eight months. St James’s Place added 43 advisers in the period, taking its total to 5,217.

Online job adverts fell by 1.3% year-on-year in August, according to data from jobs website Adzuna, marking the first decline since February. On a month-on-month basis, job postings were down 2.1%. Advertised salaries rose 0.2% between July and August, hitting an average of £42,367, with this an 8.9% increase on August 2024. Andrew Hunter, co-founder of Adzuna, said: “Salary growth remains one of the few constants, still outpacing inflation, but hiring appetite is uneven and increasingly shaped by a mix of sector-specific swings and the growing role of AI within the UK labour market.”

Artificial Intelligence (AI) is poised to significantly alter the jobs market in London, with nearly 1m positions at risk, according to research from LiveCareer UK. Roles such as telemarketers, bookkeepers, and data entry specialists are particularly vulnerable. Analysis by consultancy firm McKinsey shows that the number of adverts for jobs vulnerable to AI’s impact is down 38% compared to three years ago.

Rachel Reeves has warned that she faces “harder” choices at this year’s Budget, pointing to “harsh global headwinds” and the “long-term damage” done by previous governments. The Chancellor, who is facing a £30bn shortfall in the public finances, told the Labour party conference that she will keep taxes, inflation and interest rates as “low as possible.” Speculation has been mounting that Ms Reeves may look to move away from an election pledge that Labour would not increase income tax, National Insurance or VAT. However, she told Sky News that “those manifesto commitments stand.”

NatWest chair Rick Haythornthwaite has urged Chancellor Rachel Reeves to implement a “10-year programme of radical tax reform” in her upcoming Budget. He believes this plan could stimulate growth and restore confidence in bond markets. Arguing that it is “time for a bold long-term plan,” Mr Haythornthwaite highlighted the need for simplified tax structures to support investment and address issues like housing and net zero.

ClearScore CEO Justin Basini says that persuading more people to start investing will help boost the UK’s economic growth. He has urged Rachel Reeves to use the Budget to introduce measures which will encourage more people to become retail investors. Calling for the Chancellor to “continue her efforts to unlock the huge amount of capital that is sitting on the sidelines,” he added that retail investors should be encouraged to “start to see the long-term potential of backing UK businesses.”

Research shows that those earning six figures are more likely to worry about money than those on average incomes. While eight in ten people earning over £100,000 are worried about their financial health, the rate among those earning between £35,001–£45,000 came in at 75%. RSM analysis of HMRC data shows that the number of taxpayers earning over £100,000 increased by 16% to 1.35m in 2022/23.