Businesses in the UK are increasingly anxious about rising taxes and inflation ahead of the upcoming Budget, according to a survey by the British Chambers of Commerce (BCC). The survey, which polled 4,600 companies, revealed that 33% expect no change in turnover, while 48% anticipate an increase. This is down from 49% in Q2 and 58% in the same period in 2024. Firms flagged concerns about inflation and tax changes, with 59% of businesses citing tax as their biggest worry and 57% saying they were worried about inflation. David Bharier, head of research at the BCC, said: “The proportion of businesses expecting to raise prices remains worryingly high, driven primarily by labour costs.”

Footfall in UK retail has decreased by 1.8% in the five weeks to October 4, according to the British Retail Consortium (BRC). This decline follows a 0.4% drop in the previous month. Factors contributing to the downturn include low consumer confidence and anticipated tax increases as the Budget approaches. Helen Dickinson, BRC chief executive, noted that investment has stalled due to increased National Insurance contributions.

With Chancellor Rachel Reeves looking to raise £30bn by 2029/30 to address a public finance shortfall, the National Institute of Economic and Social Research (NIESR) think-tank has analysed the impact of raising income tax, corporation tax, and VAT. It concluded that increasing VAT would significantly harm the economy, reducing real personal disposable income by nearly 3% and GDP by about 1%. Raising corporation tax, meanwhile, would hurt the economy in the long run by reducing investment, according to the analysis. The NIESR study suggests that hiking income tax would be the least damaging option, with a minimal GDP impact of 0.05%. NIESR economist Ed Cornforth said: “Our analysis clearly shows that a rise in income tax is the Chancellor’s least damaging, most reliable option for putting the economy on a sustainable, secure footing.” Labour’s election manifesto promised not to raise the headline rates of VAT, National Insurance, or income tax.

Rachel Reeves is reportedly considering replacing stamp duty in England and Northern Ireland with a national property tax in next month’s Budget. The Chancellor may tie reforms to council tax, creating a more progressive system that reflects current property values. Proposals include an annual tax on homes over £500,000, potentially with a higher rate for properties over £1m, raising similar revenue to stamp duty. Experts note it could benefit high-value property buyers but risk house price inflation and challenge asset-rich, income-poor homeowners.

Analysis based on over 1m property sales in England since January 2024 highlights inequalities in the council tax system. Households in poorer areas, such as Burnley, pay a far higher proportion of their income and property value compared with wealthier areas like Westminster. The system, based on 1991 property valuations, has not been comprehensively updated, leaving 55% of homes in the wrong band.

More than half of taxpayers support abolishing inheritance tax as families face increasing financial strain. A poll of 2,200 individuals commissioned by law firm Kingsley Napley shows that 54% want the tax to be scrapped, up from 49% a year ago. The survey also shows that 76% oppose increasing the 40% tax rate, and 67% want the Chancellor to increase the nil-rate band.

A survey by investment platform Tradu shows that nearly 90% of retail investors would increase their stock investments if the 0.5% tax charge on buying shares was abolished. A survey of 800 UK retail investors shows that more than half view US stocks as more attractive due to lower tax burdens. Chancellor Rachel Reeves is said to be considering a holiday on stamp duty for newly-listed companies. Urging ministers to abolish the share tax entirely, Brendan Callan, CEO of Tradu, said: “We need to pull UK investment back from the brink, and that means bold action.”

The UK has converted $18.5bn of early-stage investment into 57 successful unicorns in the past decade, according to data from venture-building firm IMS Digital Ventures. This represents a ratio of 3.08 start-ups per $1bn in seed investment. In the same period, the US saw $625bn in VC investment but created just 1.22 unicorns per $1bn. The analysis shows that seed investment in the UK has risen from $50m in 2014 to $538m in 2024, while early-stage investment jumped from $576m to $3bn in the same period.

Wage growth in the UK has reached its lowest point in four years, according to analysis by Recruitment and Employment Confederation (REC) and KPMG. The wage growth index for full-time staff fell to 50.2 in September, down from 50.6, indicating a slowdown. The report also found that hiring of full-time staff had fallen sharply in September, with it shown that more workers were either made redundant or sought new jobs over the past month and were now looking for work. Vacancies also fell, with a steeper decline in the public sector than in the private sector across both permanent and temporary work. Jon Holt, group chief executive at KPMG, said: “With very little positive news out there on the economy in recent months, and lots of speculation about the Budget, it is understandable that employers are cautious with their hiring.”

According to a survey by fraud prevention service Cifas, 19% of workers secretly juggle two competing jobs and 24% of employees consider “polygamous working” justifiable. The survey of 2,000 employees across various sectors also found that a fifth of respondents or their acquaintances have used false references to cover employment gaps. Mike Haley, CEO of Cifas, said the Workplace Fraud Trends report “doesn’t solely reflect individual choices,” adding that it “reveals systemic blind spots to a whole range of rising threats impacting the workplace – from polygamous working to UK professionals using fraudulent reference houses.”

The Bank of England’s Catherine Mann says fears of high inflation levels could be eased by keeping interest rates higher for longer. In an event hosted by the Resolution Foundation think-tank, she said: “High inflation itself is behind scarring, income uncertainty, and weak consumption growth. Therefore, monetary policy needs to continue to focus on reducing inflation to achieve the environment of price stability.” Suggesting that households could then “return to their normal consumption-savings behaviour which is conducive to stronger consumer demand,” Ms Mann added: “If the consumption gap was my only concern, reducing the restrictiveness of monetary policy would be appropriate. However, in light of elevated inflation and expectations, maintaining restrictiveness for longer would be appropriate.”

According to a poll of 2,000 business travellers, 26% of Gen Zers actively seek entertainment and content creation opportunities during work trips. The study, commissioned by Hotels.com, found that over 80% of young professionals view business travel as a chance to enhance their lifestyle and many are willing to pay out of pocket for better meals or accommodation. Melanie Fish from Hotels.com said: “Travelling for business doesn’t have to be all work.” She added: “For Gen Z, business trips are a chance to advance their careers – while also meeting new people and exploring new places.”