Nearly 65 UK-listed companies issued profit warnings in the third quarter, according to a report by EY. Of these, 47% attributed their lower-than-expected profits to “policy change and geopolitical uncertainty,” marking the highest rate in over 25 years. The report follows tax hikes introduced by Rachel Reeves in her first Budget last October. Additionally, 19% of warnings were linked to declining consumer sentiment, the highest since 2022. Employers are urging the Chancellor to avoid further tax increases in the upcoming Budget.

Bank of England governor Andrew Bailey has warned that Brexit would continue to hamper economic growth for the foreseeable future due to restricted access to trade resulting from the UK’s departure from the EU. Speaking at a meeting of central bankers in Washington, DC, Bailey explained that although he took no position on Brexit politically, as a public official he recognised that “for the foreseeable future it is negative, but over a longer time there should be a positive, albeit partial, counterbalance.” He went on to discuss how AI could enhance the economy, while warning about the risks to financial stability from over valuations.

Some 2,000 companies in England and Wales went bankrupt in September 2025, marking a 30-year high in insolvency rates. Factors such as rising labour costs, high inflation, and low consumer confidence have contributed to the trend, according to Matthew Richards, joint head of restructuring at Azets. He warned that the upcoming Budget could further impact corporate insolvencies. David Hudson from FRP noted that any measures raising costs or dampening consumer confidence could be detrimental, especially for struggling sectors like hospitality.

Andy Haldane has been elected as the new president of the British Chambers of Commerce (BCC), succeeding Baroness Martha Lane-Fox. Haldane, 58, has over 30 years of experience at the Bank of England, where he served as chief economist and was a member of the monetary policy committee for seven years. He recently stepped down as chief executive of the Royal Society of Arts. Haldane stated: “I look forward to leading the BCC in its mission to support businesses across the UK.”

George Osborne has stated that the Treasury lacks understanding of how to attract wealth creators to the UK. He noted that Italy’s more appealing tax regime is drawing billionaires away from Britain. Osborne highlighted that the Treasury is not equipped to address the needs of wealthy individuals, saying: “The truth is the Treasury doesn’t have a very good understanding of the kind of ecosystem of wealthy foreigners.” Critics argue that Labour’s tax policies are driving wealth abroad rather than increasing tax revenue. Richard Gnodde of Goldman Sachs echoed this concern, stating the Government is unaware of the extent of the wealth exodus.

Former Prime Minister Sir Tony Blair is arguing for a reduction in the top rate of income tax to below 40%. He believes this would encourage more people to work and stimulate economic growth. His stance contrasts with the current Labour leader Sir Keir Starmer and Chancellor Rachel Reeves, who is preparing to increase taxes again in her next Budget. Sir Tony is one of several former prime ministers and chancellors who were interviewed by the authors of Prosperity Through Growth, due to be published next week.

Dan Neidle, the founder of Tax Policy Associates, writes in the Observer on tax relief for R&D, saying the system needs a revamp. Neidle asserts that when you tax-relieve something you actually get less of the thing you want. Instead you just get more people claiming the relief. The small business R&D scheme has paid out more in tax relief than it generates in R&D expenditure, according to HMRC’s own figures, Neidle explains, and that’s not to mention all the fake claims. An ambitious solution would be to scrap R&D tax relief and reform the corporation tax base instead, giving tax relief for all investment.

More than half of UK businesses may cut jobs or halt hiring if taxes rise in the upcoming Budget, according to a survey by the Institute of Chartered Accountants in England and Wales (ICAEW). The survey, involving around 650 professionals, revealed that 56% would reduce headcount or freeze recruitment. ICAEW chief executive Alan Vallance warned: “Policymakers talk a lot about growth, but the businesses trying to deliver it are being held back.” The survey also indicated that 39% of firms would cut investment, further threatening economic growth.

The UK Government has launched its first national strategy to create over 400,000 jobs in the clean energy sector by 2030. The plan identifies 31 priority occupations, including plumbers and electricians, and will establish five technical excellence colleges for training. A new programme will connect veterans with clean energy careers, while oil and gas workers can access £20m for tailored training.

Generation Z is increasingly leaving banking jobs for entrepreneurial opportunities and flexible work, according to a KPMG survey. Nearly 50% of financial services executives reported a rise in Gen Z departures over the past year, with 54% in banking. The main reasons include a preference for start-ups (42%), self-employment (35%), and the desire for flexibility or remote work (34%). Cost of living concerns also influenced their decisions.

Twenty of the UK’s largest pension providers and insurers are to channel billions into regional infrastructure under a new partnership, Sterling 20, unveiled ahead of a regional investment summit hosted by Chancellor Rachel Reeves in Birmingham. Legal & General has pledged £2bn to deliver 10,000 affordable homes by 2030, while Nest will invest £40m in rural fibre broadband across Scotland and northern England and allocate a further £100m to Schroders Capital for UK projects. Other participants include M&G, Phoenix, Aviva, Royal London and the Universities Superannuation Scheme.

UK government borrowing costs have decreased, with 10-year bond yields falling by 0.15 percentage points this week. The decline comes as Rachel Reeves considers tax increases and spending cuts ahead of the autumn Budget on 26 November. Investors reacted positively to the Chancellor’s comments at the International Monetary Fund meetings, indicating that both tax hikes and spending cuts are on the table. Mark Dowding, chief investment officer at RBC BlueBay Asset Management, noted that these considerations improved market sentiment.

Huw Pill, the Bank of England’s chief economist, has advocated for a cautious approach to interest rate cuts. In a recent speech, he expressed disappointment over inflation control efforts, noting that inflation is expected to reach 4% in September. Pill highlighted the persistent nature of inflation, particularly in services and wages, and stated: “Unfortunately, headline consumer price index (CPI) inflation has proved stickier than the MPC anticipated.” He stressed the need for careful consideration in rate adjustments to avoid cutting too quickly or too deeply. The next interest rate decision is due next month.

BlackRock will introduce its first bitcoin exchange-traded product (ETF) in the UK on Monday, allowing sophisticated retail investors to invest in bitcoin without direct ownership. The ETF, linked to bitcoin’s price, follows the Financial Conduct Authority’s (FCA) recent lifting of a ban on certain bitcoin-based products. Currently, bitcoin is priced at approximately £108,000, and BlackRock anticipates 4m UK investors by year-end. The company expects a 21% rise in first-time crypto investors in the UK over the next year. BlackRock’s US ETF has amassed nearly $100bn in assets since its launch.

Satisfaction with HMRC is declining with companies increasingly unhappy about at waits to have their issues resolved. Trust in the tax office has declined from 54% in 2022, to 47% in 2023 and down to 43% in 2024. Joanna Marchong, investigations campaign manager of the TaxPayers’ Alliance, which conducted the research, said: “While Whitehall pats itself on the back for smoother handouts, taxpayers are still struggling with poor service.”

The lead singer of Simply Red has complained that Labour does not tax him enough. Mick Hucknall, who is worth £60m, told the Sunday Times he was surprised Labour had not increased taxes on high earners. “I was expecting to pay more income tax. I thought, stick a couple of per cent on me – I’m ready.”