Public sector productivity in the UK has fallen by 0.7% year on year, marking the steepest decline since late 2022, according to the Office for National Statistics (ONS). Healthcare productivity dropped by 1.5%, exacerbating the overall decline. Health Secretary Wes Streeting faces mounting pressure to enhance efficiency in the NHS, which is currently producing 7.8% less per pound spent compared to pre-pandemic levels. Shadow Treasury Minister Gareth Davies commented: “Public sector productivity has fallen quarterly-on-previous-year compared to under the Conservatives.”

The UK manufacturing sector’s recovery may be short-lived, according to the latest S&P Global’s manufacturing Purchasing Managers’ Index (PMI), which rose to 49.7 in October. The figure remains below the critical 50.0 mark, indicating stagnation. Rob Dobson, director at S&P Global Market Intelligence, noted: “The October PMI survey shows UK manufacturing production rising for the first time in a year, which is a positive in itself.” However, employment continues to decline, with higher minimum wages and national insurance contributions cited as key factors. Businesses are concerned about potential tax hikes in the upcoming Autumn Budget.

Make UK warns that Britain faces a significant risk of de-industrialisation due to potential tax increases and high energy costs. The organisation, representing various manufacturers, stated that the upcoming Budget must focus on growth. Chief Executive Stephen Phipson highlighted the dual challenges of weak demand and rising costs, calling energy prices an “existential threat.” A recent survey revealed that over two-thirds of manufacturers expect tax hikes, with many already passing increased costs onto customers. Phipson urged the Government to take decisive action rather than delaying solutions.

Rachel Reeves may break Labour’s manifesto promise not to raise income tax. In a pre-Budget press conference, the Chancellor will discuss necessary steps to stabilise public finances. Speculation suggests a potential 2p increase in income tax rates to help address a financial shortfall. Reeves will say: “I will make the choices necessary to deliver strong foundations for our economy.” Labour previously ruled out increases in VAT, National Insurance, or income tax, but the Resolution Foundation warns that tax hikes are “inevitable” and the PM’s official spokesman repeatedly refused on Monday to stand by Labour’s pledge. Shadow chancellor Sir Mel Stride called for the Chancellor to be sacked if she “breaks her promises yet again”.

Michael O’Leary, the CEO of Ryanair, has said the UK economy is “doomed to continue to fail” without reducing the tax burden. In an interview with Sky News, he advised Labour’s Rachel Reeves to lower Air Passenger Duty (APD) and reverse planned tax increases. O’Leary highlighted that ordinary families are taxed at 33%. He noted that while London airports can absorb APD hikes, regional airports face challenges. He concluded: “Until she starts cutting these insane taxes… the UK economy is doomed to continue to fail.”

AstraZeneca has received overwhelming shareholder support for its plan to list directly on the New York Stock Exchange, with 99% voting in favour. The decision, representing nearly 80% of issued share capital, marks a significant shift towards the US market, where the company generates almost half of its revenue. AstraZeneca plans to retain its primary listing in London and maintain its UK headquarters. However, the move could cost the UK Treasury £200m a year from lost stamp duty on transactions in London. The Guardian’s Nils Pratley warns it would only take a few more large companies to follow suit for the UK’s £3bn receipts from stamp duty on shares to collapse.

Experts warn that raising the minimum wage from £12.21 to at least £12.70 could hinder the recruitment of junior professionals. Chancellor Rachel Reeves’ proposal may lead to starting salaries rising, impacting the mid-tier professional services sector. Rakesh Shaunak, managing partner at MHA, stated: “It is inevitable that the closing of the gap between the minimum wage and starting salaries will impact the recruitment market.” The Institute of Chartered Accountants in England and Wales reports that trainee accountants earn between £18,000 and £28,000, while average graduate salaries are around £35,000.

Nigel Farage has retracted significant tax cut pledges, predicting an “economic collapse” could lead to a general election by 2027. The Reform UK leader cited rising government debt as the reason for abandoning the £90bn tax cut plan, which included increasing the tax-free personal allowance to £20,000. Farage stated: “We are being mature, we are being sensible, and we are not over-promising.” In a pitch to the City, Farage vowed to cut banking regulation and amend employment rights legislation to help small business. He also said the minimum wage may be too high for young workers and refused to back the pension triple lock.

The All-Party Parliamentary Group (APPG) on Fair Banking has condemned the Financial Conduct Authority’s (FCA) proposed compensation scheme for car loan victims. The APPG claims the FCA prioritises lenders’ profits over consumer redress, suggesting victims could be owed £15.6bn instead of the FCA’s estimated £8.2bn-£9.7bn. APPG member Siobhain McDonagh said: “The FCA has patently been influenced by the profit margins of the lenders.” The FCA maintains its scheme aims to provide fair compensation but acknowledges differing opinions on the proposal.

The UK faces a critical decision regarding its role in the evolving digital asset landscape, as the US leads the charge in establishing regulatory frameworks. Writing in City AM, Lord Kulveer Ranger, co-chair of the All Party Parliamentary Group for Digital Markets & Digital Money, points to discussions in Washington, including the bipartisan Crypto Market Structure Bill, which aims to create a cross-border sandbox for innovation. Senator Cynthia Lummis has stressed the need for the UK to choose between being a rule-maker or a rule-taker, Ranger notes, before calling for urgent steps, including enhanced industry engagement and clearer leadership, to ensure the UK remains competitive in the global digital finance arena.

Labour’s tax hikes have led to nearly 5,000 pubs being rated at maximum risk of insolvency, according to research from Price Bailey. This marks a 14% increase from last year. In the second and third quarters of 2025, over 200 pubs closed. The British Beer and Pub Association has urged the Government to address rising regulatory costs to save these vital community establishments.