The British Business Bank has provided nearly £150m in loans to unemployed individuals since 2012, representing 22% of the government-backed start-up loans programme. The news coincides with the launch of the Fresh Start Guide, created with the Department for Work and Pensions (DWP) and HMRC, to assist unemployed people in exploring self-employment. The guide will be available at over 600 job centres and through 25,000 work coaches. Secretary of State for Work and Pensions Pat McFadden commented: “Starting your own business can be a powerful way to take control of your future.”

Rachel Reeves has indicated a willingness to raise income tax for the first time in 50 years, breaking manifesto pledges. In a pre-Budget speech on Tuesday, the Chancellor stressed the need for difficult decisions to address a £30bn financial gap, arguing: “If we are to build the future of Britain together, we will all have to contribute.” The Treasury is understood to be considering a 1p or 2p increase, despite some Labour colleagues warning that hiking income tax will severely damage the party’s chances at the next election. Critics outside the party say Reeves is failing to take responsibility for the effects of Labour’s policies, laying the blame instead on Brexit, the pandemic and global trade shifts.

The National Institute of Economic and Social Research (NIESR) warned that a minimum 2p increase in the basic rate of income tax is necessary to address a £50bn deficit in public finances. The Office for Budget Responsibility is expected to forecast a £20bn deficit in its upcoming report. NIESR urges Rachel Reeves to aim for a £30bn buffer to safeguard against future financial shocks. Meanwhile, a coalition of seven think-tanks proposed reforms to stimulate growth without raising overall taxes.

A group of young entrepreneurs has raised concerns about a proposed 2p increase in income tax, warning it could harm freelancers and start-up founders. The Young Entrepreneurs Forum claims this change, alongside a cut in national insurance, would discourage enterprise and drive young talent abroad. Sean Kohli, chair of the forum, said: “If Britain wants growth, it needs to back those with the will to build.” A recent poll revealed that 40% of small business owners are already making strategic changes in anticipation of the upcoming Budget, reflecting widespread anxiety over potential tax increases.

The Employment Rights Bill, which Labour argues will enhance worker protections from day one, faces significant opposition from the Conservatives. They argue it could harm the economy, leading to job losses and increased welfare costs. Shadow business secretary Andrew Griffith stated: “Labour’s unemployment Bill is set to cripple economic output and cost 326,000 people their jobs.” The Bill is currently in parliamentary “ping-pong,” with the Lords rejecting key provisions. A government spokesperson defended the Bill, claiming it would improve conditions for over 15m workers. Separately, Tory leader Kemi Badenoch hit out at Labour on employment, arguing that the Chancellor is set to hike taxes to pay for a soaring welfare bill rather than helping people into work.

The Bank of England is likely to maintain interest rates at 4% amid ongoing inflation concerns. Some traders suggest a 25 basis point cut is possible, but the Monetary Policy Committee (MPC) may opt for caution. Inflation remains at 3.8%, slightly below expectations. WPI Strategy economist Martin Beck expects a narrow 5-4 vote to hold rates steady, as policymakers await the Chancellor’s Budget decisions.

The pound fell sharply on Tuesday morning after Rachel Reeves hinted at significant tax hikes in her upcoming autumn Budget. Sterling dropped to $1.30 against the dollar, a 0.46% decline, and also weakened to €1.14 against the euro. The FTSE 100 index also fell by 1.26%, losing around £25bn in value.

The UK state pension provides the lowest income support among G7 nations, offering only 22% of pre-retirement salary. In contrast, Italy’s pension system provides 76%. Marianna Hunt, a personal finance specialist at Fidelity International, noted that, in the UK, the state pension serves as a foundation for private saving, “while in France and Italy it represents the mainstay of retirement income.” The UK spends 6.5% of GDP on pensions, lower than other countries. Hunt stated: “The good news is that, by acting early, with even small increases to contributions, people can put themselves in a much stronger position to enjoy the retirement they want.”

The Financial Reporting Council is set to update guidance on its Corporate Governance Code today, recommending that paying non-executive directors with company shares is appropriate.

Conservative MP Mark Pritchard has warned that rising prices for essential breakfast items could see the full English breakfast vanish from UK high streets. During an opposition day debate, he highlighted increases in costs for eggs, bacon, and sausages. Shadow business secretary Andrew Griffith stated that the Government’s cuts to business rates have harmed businesses, as he promised a 100% rates relief for 250,000 high street premises.