Executives from leading UK tech start-ups, including Revolut and Clearscore, have warned Rachel Reeves that proposed tax changes could jeopardise their plans to list in London. In a letter, they urged the Treasury to avoid imposing an exit tax on wealthy individuals, stating that such measures could deter investment and innovation. The firms, valued collectively at over $100bn (£80.3bn), stressed the need for a stable tax environment. Francesca Carlesi, Revolut’s UK CEO, noted: “Founders need to see a stable and favourable taxation environment to take the risk of building a business in the UK.”

New office construction in London has dropped to its lowest level since 2010, with only 2.5m sq/ft initiated in the past year. The figure is less than half of last year’s and about a quarter of pre-Brexit highs. Both small and large projects have seen significant declines, with only five new buildings under 100,000 sq/ft started this year. Patrick Scanlon, Senior Director of Market Analytics at Costar, noted that rising debt costs have particularly affected smaller projects. He warned of a potential office space supply squeeze in two years as current developments come online.

Rachel Reeves has submitted plans to increase income tax to the Office for Budget Responsibility for evaluation, the Times reports. The OBR will assess the impact of the measures, which include the Chancellor’s economic growth plans, before informing the Treasury of its conclusions on Monday. The Chancellor is mulling over a 2p rise in income tax and a 2p cut in national insurance, a move economists believe could raise more than £6bn a year. Reeves is reportedly looking to ensure the wealthiest contribute more, by potentially limiting the national insurance cut to earnings below £50,270. She is also expected to extend the freeze in income tax thresholds for another year until 2029-30. Separately, Lucy Powell, Labour’s new deputy leader, insists the party must uphold its manifesto pledge not to raise taxes on working people. Asked whether it would be acceptable to break this promise, Powell told the BBC: “We should be following through on our manifesto, of course. There’s no question about that.”

The Bank of England has maintained interest rates at 4% following a close vote by the Monetary Policy Committee (MPC). Members indicated a potential gradual easing of rates in the future, suggesting inflation had likely peaked at 3.8% in September. The Bank expects inflation to decrease and reach the 2% target by 2027. Unemployment projections have also worsened, with rates expected to peak at 5.1% in 2026. Andrew Bailey, governor of the Bank, said: “We still think rates are on a gradual path downwards but we need to be sure that inflation is on track to return to our 2% target before we cut them again.”

Shanker Singham, chairman of the Growth Commission, argues that the UK’s economic stagnation is not due to Brexit but rather decades of poor decision-making. He claims that diverging from EU regulations could boost GDP per capita by nearly 8%. Singham criticises politicians for blaming Brexit, stating: “There are long-standing reasons for the economic stagnation… long before Brexit appeared on the agenda.” He urges the Government to reform the regulatory framework to enhance competitiveness and stimulate growth, calling it a “toll-free route to boosting UK plc.”

Proposed mass dismissal programmes in the UK increased by 5% in 2024/25, reaching 3,715, according to TWM Solicitors. The rise, totalling 267,800 proposed dismissals, is attributed to the Employment Rights Bill and the growing use of AI. The manufacturing sector saw a 12% increase, while public administration, education, and health reported a 19% rise. Anthony Wilcox, partner at TWM Solicitors, noted: “Under the new legislation… some redundancy exercises are going to become more complex.” The Employment Rights Bill is currently stalled in Parliament.

The UK Government has abandoned plans for a cash grant competition aimed at innovative steel projects. Instead, it will focus on supporting loss-making steelworks, maintaining a £2.5bn commitment to the industry. Chris McDonald, the steel minister, stated that the Government will still provide significant support, including assistance with energy prices. However, funding will now come from the National Wealth Fund, requiring private financing. Concerns remain about the sector’s financial viability, especially following the EU’s proposed 50% import tariff on steel, which UK Steel warns could threaten British steelmakers.

Elon Musk’s pay deal at Tesla, which has been approved by shareholders could elevate him to the world’s first trillionaire, granting him 425m shares. This will increase his stake from 15% to nearly 30%. Despite the controversy, Tesla’s board insists Musk is essential for achieving ambitious targets, including a sixfold increase in market valuation. Robyn Denholm stated: “He doesn’t get any compensation if he doesn’t deliver.”