The Startup Coalition has warned Chancellor Rachel Reeves that imposing employers’ National Insurance contributions on venture capital funds could jeopardise fund launches in the UK. Dom Hallas, executive director of the coalition, says that such a tax could increase the overall tax burden on venture capitalists by around 30%. He emphasised that this would reduce working capital for investment teams and could lead to fewer UK partners, ultimately diminishing capital flow into British start-ups. Mr Hallas urged the Chancellor to protect venture capital structures from new taxes while allowing broader changes to the limited liability partnership regime.

Former Prime Minister Rishi Sunak has warned that Rachel Reeves could hurt the economy by hiking taxes in the Budget, saying that if the chancellor opts for tax rises, “it will crush confidence and depress growth.” Mr Sunak, who highlighted the rising interest on the UK’s long-term borrowing and the need for fiscal responsibility, warned that tax increases could be “distortionary” and “depress UK growth still further,” adding that “leeway must come from spending cuts.” Meanwhile, a paper published by the think-tank Policy Exchange has urged Ms Reeves to prevent a “twin-pronged fiscal crisis” by reducing the deficit without raising taxes in an effort to avoid further damage to the country’s growth prospects.

The Government’s industrial strategy has prompted 37% of manufacturers to increase investment in new plant and machinery, according to a survey by Make UK. The strategy, introduced in June, aims to support eight key sectors until 2035. Fhaheen Khan, senior economist at Make UK, said: “Manufacturers have long called for an industrial strategy and it’s clear that this is set to bring immediate benefits.” Make UK has urged the Government to reassess tax reliefs to further encourage investment. Mike Thornton, head of manufacturing at RSM UK, said: “Despite headwinds, UK manufacturers remain optimistic, but to allow them to transform, invest and drive future prosperity they need a helping hand from the Government, not more taxes.”

The Resolution Foundation has warned that Labour’s proposed Employment Rights Bill could harm the jobs market, suggesting that the legislation, which includes a day-one right against unfair dismissal, may inhibit hiring and lead to a crisis in tribunal courts. Ruth Curtice, chief executive of the foundation, said: “Moving to day one rights for unfair dismissal is high risk and should be amended in the Bill before it’s too late.” While the foundation backs much of the legislation, including proposals to enhance sick pay and eliminate most zero-hours contracts, it warned that changes to unfair dismissal rules risked damaging the economy. The Office for Budget Responsibility has already warned that the Bill could have a negative impact on jobs, prices, and productivity.

Analysis by Adzuna shows that vacancies in the UK fell to their lowest level of 2025 in September, dropping 2.4% to 826,205. This came as employers adopted a cautious approach ahead of the Budget and amid expectations of higher taxes. Despite the fall in vacancies, average advertised pay rose 8.8% year-on-year to £42,417 – although it is noted that over half of listings did not include salary details. Adzuna co-founder Andrew Hunter described the market as “steady but cautious,” adding: “Employers are still prepared to pay for the right people, but they’re taking longer to hire and they’re being more selective about where they invest.” Retail saw an 8.1% rise in openings due to pre-Christmas hiring, while consultancy roles fell 9.9% and marketing and PR positions declined 7.8%, reflecting cutbacks in non-essential spending.

Rachel Reeves plans to increase the national living wage from £12.21 to at least £12.70, benefiting over 1m low-paid workers. The move aims to enhance living standards but faces backlash from businesses concerned about job losses. Employers will also incur additional costs from a new statutory sick pay entitlement. Kate Nicholls, head of UKHospitality, warned that rising costs could lead to job losses, stating: “If you want fair pay, you have got to have sustainable businesses.” The Budget will also include tax increases to address a £25bn shortfall in public finances.

Chancellor Rachel Reeves is leading a delegation to Saudi Arabia to strengthen trade ties with the Gulf Cooperation Council (GCC), which also includes Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates. The Government hopes to secure a deal that could add £1.6bn to the economy annually and increase wages by £600m in the long term. The UK’s trade with the Gulf is currently valued at £59bn, and the proposed deal could enhance trade by 16%. Ms Reeves said: “Our number one priority is growth, so I am taking Britain’s offer – of stability, regulatory agility and world-class expertise – directly to one of the world’s most important trade and investment hubs, making that case in our national interest.”

Despite Revolut’s recent commitment to invest £3bn in the UK, UK fintech investment has plummeted to $9.9bn in 2024, down from $48bn in 2021, according to KPMG.

Chancellor Rachel Reeves is facing pressure to break a manifesto pledge and increase income tax for high earners in a bid to plug a gap in the public finances. Insiders say ministers have discussed a potential increase in the 45p tax rate, which currently applies to income above £125,140. A source said the 45p rate “is definitely in play,” adding that it “would be a popular move within the party.” However, this would break the manifesto pledge to not increase income tax, VAT or employee National Insurance contributions. Meanwhile, experts have warned that making changes to the top rate of income tax would not raise a significant sum. Isaac Delestre, senior research economist at the Institute for Fiscal Studies, said: “A 1p increase in the additional rate gets you about £200m, which is not an enormous amount.”

Rachel Reeves has introduced a new Scale-up Unit to assist financial services firms in scaling up and creating high-skilled jobs. Speaking in Leeds, the Chancellor highlighted the unit’s role in providing bespoke support to banks and insurers, aiming to simplify regulatory navigation. The unit, co-led by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), will offer firms a direct contact point for regulatory queries. Nikhil Rathi, FCA chief executive, commented: “Our new Scale-up Unit will provide firms with tailored, hands-on support to help them scale and grow faster.”

The UK economy may be turning a corner, with experts noting improved growth and inflation trends. The S&P Global UK composite flash purchasing managers’ index (PMI) rose to 51.1 in October, signalling recovery. Manufacturing PMI increased to 49.6, while services PMI reached 51.1. Chris Williamson from S&P Global Market Intelligence commented: “September was a low point for the economy from which business conditions are starting to improve.” Consumer inflation expectations rose to 4.2%, above the Bank of England’s target. Analysts suggest a potential interest rate cut could occur as early as December.

Andrew Bailey could be removed as Bank of England Governor if Nigel Farage becomes Prime Minister, the Reform UK leader has suggested. When asked if he would keep his job, Farage told Bloomberg’s Mishal Husain: “Well, he’s had a good run. We might find someone new.” He criticised the Financial Conduct Authority, describing the regulator as “utterly useless” before going on to explain: “We need a complete, radical rethink of what they are, what they’re for, who they serve, what their purpose is.” Farage detailed how he wants Britain to embrace the 21st century, not hang on to an “old, out-of-touch, globalist mindset”.

Over 1,000 crypto supporters gathered in East London for the inaugural Stand With Crypto rally. The movement, which has gained over 150,000 advocates in the UK, aims to push for a pro-innovation blockchain and stablecoin strategy. A petition has garnered 25,000 signatures, with a goal of 100,000 to prompt a parliamentary debate. Harry Pearce Gould, UK lead for Stand With Crypto, said: “The global race for digital assets is on — and we want the UK to be a world leader.” Experts warn the UK must accelerate stablecoin regulation to maintain its fintech leadership.