Nine think tanks from across the political spectrum have collaborated to advocate for significant tax reforms aimed at enhancing productivity and fairness. The report, led by the London School of Economics’ Centre for the Analysis of Taxation (CenTax), suggests eliminating arbitrary rules. Key proposals include abolishing stamp duty land tax and adjusting council taxes to reflect current house values. Arun Advani, director of CenTax, stated: “HMRC’s code was riddled with inconsistencies and distortions that discourage investment.” The report urges the Chancellor to seize the upcoming Budget as a chance to reform the tax system comprehensively. Meanwhile, the Tony Blair Institute for Global Change advises that any increases in VAT or income tax should be paired with pro-business policies. Tom Smith, director of economic policy at the Institute, said: “A credible Budget can’t just raise taxes – it must raise Britain’s sights.” The CBI also cautioned against excessive taxation, urging the Government to make tough decisions to stimulate economic growth. Finally, the National Institute of Economic and Social Research has said that increasing the higher rate of income tax to as much as 50p in the pound from 40p and increasing the basic rate by 2p to 22p is the best way to fill the black hole in Britain’s finances.

Neil Duncan-Jordan, MP for Poole, has proposed a tax on large companies using artificial intelligence (AI) to replace workers. He argues this measure could offset lost income tax and national insurance contributions due to AI’s impact on employment. Duncan-Jordan stated: “It’s about companies who used to employ 100 people… don’t employ anybody anymore.” Despite the Treasury’s dismissal of the idea, he stressed the need for a balance between automation and job protection. Polling by the Trades Union Congress shows over half of UK adults are concerned about AI’s job impact.

The Chancellor has indicated that banks will not face punitive tax measures in the upcoming Budget. Rachel Reeves said she aims to keep the sector competitive to support economic growth.

UK businesses experienced a notable increase in activity in October, driven by improved demand, according to S&P Global’s purchasing managers’ index (PMI). The composite index rose to 52.2, surpassing expectations and indicating growth. Tim Moore, S&P Global’s economics director, said: “The latest survey offered some positive signals for the UK service economy.” Despite looming tax hikes, firms reported resilient customer demand. Rob Wood, chief UK economist at Pantheon Macroeconomics, noted that businesses are “brushing off” tax concerns, suggesting improved confidence. Input price inflation also fell to an 11-month low.

Warren Stephens, the US ambassador to the UK, has warned that the country’s high energy prices pose a significant threat to its economic status. Speaking at the Savoy Hotel, he described these costs as the “chief obstacle” to growth, stating that they make the UK an expensive place for business. He pointed to the need for major reforms in energy policy to protect the UK’s position as a leading global economy. Additionally, Stephens raised concerns about the pharmaceutical sector, warning that US companies may “shut down” UK operations if the NHS does not increase drug payments.

The Lords Science and Technology Committee has warned that the UK is experiencing a brain drain in the science and technology sector, jeopardising economic growth. The committee’s report calls for government action, including reducing visa costs for skilled professionals. It highlights that many promising companies are relocating overseas, undermining the UK’s research and development efforts. Lord Mair stated: “If the UK is to arrest its decline, leadership and co-ordinated action is needed.” The committee recommends establishing a National Council for Science, Technology and Growth to prioritise these issues.

The Financial Conduct Authority (FCA) is consulting on new regulations to integrate crypto asset firms into the Financial Services and Markets Act 2000 framework. The move aims to enhance market integrity and consumer protection but may impose high compliance costs on businesses. Michelle Kirschner, a partner at Gibson Dunn, noted that while regulation is necessary, the FCA must balance consumer protection with the need for a competitive UK crypto sector. The consultation will also address governance and audit obligations for custodians and stablecoin issuers, impacting retail distribution and dispute resolution frameworks.

Richard Tice, the deputy leader of Reform UK, has called for a significant overhaul of financial regulations to prevent a looming debt crisis. He cited forecasts from the Office for Budget Responsibility, warning that debt to GDP could exceed 200% by 2050. Tice proposed revising key areas, including regulators and pension savings, and suggested reducing the FCA’s 30,000 pages of regulations to a more manageable 500. He also expressed concern about public sector pension liabilities, estimated at £2.5trn. “We all know that is unsustainable. That is a rapid route towards bankruptcy. We cannot tolerate this and we cannot ignore [these figures].”

Professor Stephen Millard from the National Institute for Social and Economic Research (NIESR) warns that the Chancellor’s deregulation agenda will not enhance economic growth before the end of this parliament. Millard predicts the UK’s growth rate will decline from 1.5% this year to 1.2% by 2026. He stated: “The big problem is that, even if you are going to get higher growth through deregulation, it takes time for that higher growth to kick in.”

The UK Treasury has tasked the Financial Services Skills Commission (FSSC) with producing a report on AI skills needs in the financial sector. The report will assess the necessary building blocks for AI adoption and outline a plan to develop essential skills. The FSSC will collaborate with key industry players, including Lloyds Banking Group and PwC. The deadline for the report is mid-2027, but the impact of AI is already significant, with over half of UK adults using AI for personal finance. Jas Singh, CEO of Lloyds Banking Group, stated: “As AI becomes a bigger part of our financial lives, trust is the next frontier.”

Research by Pay Less for Storage suggests buyers looking for better value in the UK housing market should consider price per square foot. The report found that Londoners pay more than three times the national average of £291 per sq ft, with Westminster emerging as the most expensive area at £2,485 per sq ft and average house prices of £7.73m. At the other end of the scale, Havering offers the lowest price in the capital at £379 per sq ft. The study also found that larger homes offer stronger value, with seven-bedroom properties averaging £258 per sq ft.