UK dividends fell to £24.6bn in Q3, a 1.4% decrease from £25.6bn last year, according to Computershare’s latest dividend monitor. Mark Cleland, CEO of Issuer Services in the UK at Computershare, attributed the decline to challenging economic conditions, including low business confidence and high inflation. The outlook for Q4 remains bleak, with further cuts expected and a projected decline in total dividends for 2025. Cleland stated: “All this adds up to a projected unusual second consecutive annual decline in dividends for 2025.”

Manufacturing activity in the UK faced a significant decline in October, according to the Confederation of British Industry (CBI)’s latest industrial trends survey. The total orders balance fell to minus 38, down from minus 28 in September. Business confidence also dropped, with expectations falling to minus 19 from minus six in July. Elliott Jordan-Doak, a senior UK economist at Pantheon Macroeconomics, said: “We fail to see a rapid turnaround materialising any time soon.” The sector is grappling with high costs and a recent cyber-attack on Jaguar Land Rover, impacting smaller suppliers.

The Chancellor should tackle spending on welfare benefits rather than fiddle with taxes in her Budget next month, JP Morgan’s Karen Ward has said. “What really frustrates me about the whole conversation about the UK Budget is our problem in spending,” Ward explains. “If we were not willing to tackle the long-term structural problems we have in spending, we’re going to be talking about tax hikes every year. I think that’s miserable.” Ward went on to outline how investors charge Britain more to borrow because of the country’s failure to tackle welfare spending pressures.

Rachel Reeves is contemplating raising income tax to address a £30bn shortfall, sources have told the Guardian. The Chancellor may break a key manifesto pledge by adding 1p to the basic rate, potentially generating over £8bn. However, the move could exacerbate cost of living concerns. Discussions also include increasing higher or additional rates, which yield smaller amounts. Reeves faces pressure to create fiscal headroom while managing political fallout. Ruth Curtice from the Resolution Foundation stated: “Putting up income tax fits best with current UK economic woes of low growth and sticky inflation.”

Speculation about potential tax changes in the upcoming November Budget is unsettling Britain’s financial services sector. Chief executives from investment platforms and asset managers have raised concerns over possible adjustments to pensions, dividends, and capital gains taxes. Michael Summersgill, CEO of AJ Bell, explained: “Uncertainty around government policy continues to cause disruption.” A survey by Nucleus revealed that 60% of savers fear cuts to tax-free pension cash. Analysts warn that even minor tax increases could significantly impact the FTSE 100 and consumer confidence in long-term savings.

The abolition of the banker bonus cap in October 2023 has led to significant pay increases in the City of London. Average full-time salaries have surpassed £100,000 for the first time, reaching £103,352, a 10.6% rise from the previous year. The Office for National Statistics (ONS) reported that average pay for all employees, including part-time workers, rose to £99,911. The surge is attributed to increased bonuses for bankers, lawyers, and tech professionals. However, median full-time pay remains lower at £68,663.

The UK’s gender pay gap has decreased by over 25% in the last decade, according to the Office for National Statistics. As of April, the gap in full-time employment stands at 6.9%. Additionally, the proportion of workers in low-paid jobs has reached a record low of 2.5%. The report highlights significant progress in reducing wage disparities. A spokesperson from the Office for National Statistics stated: “These figures reflect a positive trend in the labour market.”

Analysis from the Bank of England indicates Brexit has caused an economic hit of 6-8% to the UK’s GDP per capita. Swati Dhingra, a member of the Monetary Policy Committee, said that investment has dropped by 12-18%, while employment and productivity have decreased by 3-4%. Dhingra’s findings exceed the Office for Budget Responsibility’s previous estimate of a 4% long-term GDP hit. She noted that Brexit has contributed to stagnant investment and productivity, complicating the UK’s economic recovery.

HM Revenue & Customs (HMRC) issued a record 64,982 “nudge” letters to cryptocurrency investors suspected of underpaying tax in the 2024-25 tax year, up from 27,713 the previous year. Neela Chauhan from UHY Hacker Young said: “HMRC is clearly stepping up its efforts to identify crypto traders who may have underpaid tax.” Starting in January, HMRC will require cryptocurrency exchanges to submit customer data annually, potentially raising £315m by 2029-30. Many crypto owners remain unaware of their tax obligations, with only 28% having read HMRC’s guidance on the subject.

The Financial Conduct Authority (FCA) reported that financial services firms paid out £283m in redress for complaints in the first half of 2025, a 20% increase from £236m in the previous half. The FCA received 1.85m complaints, marking a 3.6% rise compared to the second half of 2024. Complaints about banking and credit cards rose by 7.2%, while those regarding pensions increased by 5.5%. The most complained about products included current accounts, motor and transport, and credit cards. The upheld complaint rate remained steady at around 57%.

UK businesses could potentially unlock £532bn in productivity through AI-assisted recruitment, according to LinkedIn’s latest report. AI tools, like LinkedIn’s hiring assistant, can relieve recruiters from administrative tasks, enabling them to focus on strategic decisions. However, a survey by Zinc revealed that 73% of recruiters use AI, yet 71% believe it reduces personalisation. Charlotte Hall, co-founder of Zinc, commented: “AI is supposed to make hiring smarter, not colder.” Additionally, 80% of AI job postings are in London, highlighting a regional skills gap.