High Street businesses are anxious about the upcoming Budget, fearing further economic strain. The Federation of Small Businesses says nearly one in three small firms expect to shrink, sell up or shut down in the next 12 months. The organisation is calling on Chancellor Rachel Reeves to reduce the small business tax burden and the impact of employment cost hikes. Research from Novuna Business Finance shows that 86% of small businesses fear the possibility of Budget announcements that could negatively impact their plans for growth, while a YouGov survey of 1,244 small businesses found that rises to taxation and fuel duty were the biggest concerns for employers.

Research by Virgin Media O2 reveals that one-fifth of Britain’s fastest growing start-ups may relocate abroad by 2028 unless the Government enhances its pro-growth policies. The Growth Signals report highlights regulatory burdens, political uncertainty, and funding challenges as key issues. While 85% of surveyed firms wish to remain in the UK, many see the US as a more favourable environment for growth. Lutz Schüler, CEO of Virgin Media O2, said: “Too many of the fastest growing companies can’t see a route to scale in the UK and are now looking to prosper abroad.”

The UK housing market is experiencing a significant slowdown, according to the Royal Institution of Chartered Surveyors (RICS). Buyer demand and new instructions have fallen, with a net balance of -24% for new inquiries in October. Concerns over potential tax increases in the Budget, particularly regarding stamp duty, capital gains, and inheritance tax, have contributed to the decline. Estate agents expect prices to soften slightly over the next three months but anticipate a recovery over the next 12 months. Tarrant Parsons, RICS’ head of market research, said: “The coming months will be crucial in assessing how the market responds to the Budget.”

The global tax advisory market is projected to reach nearly $64bn (£48.4bn) in 2025, nearly doubling last year’s growth rate, according to Source Global Research. The sector is then expected to grow by 6% in 2026, with transaction tax and international taxes leading the way. This surge is attributed to political and economic headwinds, with the policies of the Trump administration, including trade wars and tariffs, set to drive demand. The Middle East is anticipated to be the fastest-growing market, with revenues surpassing $1bn by 2026. It is noted that both EY and Deloitte reported positive growth in their tax divisions in their latest results. The analysis also shows that 54% of tax advisory services expect prices to increase.

Hundreds of business leaders and policymakers have taken part in the Opportunities and Obstacles for Growth forum, hosted by Central London Alliance CIC. A key discussion focused on entrepreneurship and taxation and the panel flagged concern over the UK’s uncompetitive tax regime, warning that many high-net-worth individuals are relocating abroad. Contributors called for reforms to stimulate investment and warned that proposed changes to inheritance tax could harm economic growth. Dia Chakravarty, contributing editor at the Telegraph, warned: “Taxes are far too high and that is holding us back.”

The Financial Conduct Authority (FCA) has reaffirmed it will not create new AI-specific laws, opting instead to regulate through existing frameworks like the Consumer Duty and Senior Managers Regime. Speaking at the AI Regulation Summit, Charlotte Clark, the FCA’s director of cross-cutting policy and strategy, said the goal is to enable “safe and responsible” AI use through testing and collaboration, not new rules. The FCA’s flexible, principles-based approach contrasts with the EU’s detailed AI Act and the US’s sector-specific rules. The City watchdog is expanding “sandbox” environments to let firms test AI systems under supervision, feeding insights into work with the Bank of England and Information Commissioner’s Office (ICO). William Malcolm, the ICO’s executive director, suggested that privacy and innovation required careful alignment, saying: “Privacy and innovation aren’t in tension, they only look that way when we forget the basics.”

The Government’s Cyber Security and Resilience Bill will grant regulators the authority to impose fines of up to 4% of annual turnover – or £17m if this is higher – on firms which fail to comply with cybersecurity rules. The Bill gives the Technology Secretary the power to instruct regulators and the bodies they oversee to take specific, proportionate steps to prevent cyberattacks posing a threat to national security. Organisations will be have to report serious incidents to their regulator and the National Cyber Security Centre within 24 hours, with a full report within 72 hours. The Bill aims to expand regulations to include more sectors. Research by KPMG shows the average cost of a significant cyber attack in the UK exceeds £190,000, totalling £14.7bn annually.

Experts have warned that the Government could struggle to cover the cost of state pensions if its tax receipts fall on the back of increasing unemployment. Peter Gallanagh, CEO of Azets UK, said: “A rise in unemployment, combined with stalled wage growth, could weaken the tax base – particularly income tax and National Insurance receipts.” Warning that this “creates increasing fiscal tension,” he said that stabilising employment levels “is therefore not only an economic priority but a fiscal one.” The triple lock means state pension rates increased by 4.1% this year and the policy is expected to deliver an increase of around 4.8% in April 2026.

AI has become essential for UK businesses facing regulatory scrutiny, according to Elixirr, with it found that almost 50% of firms now direct resilience-related investments towards technology. The analysis also shows that 87% of business leaders have opted to reassess operational resilience due to pressure from regulators. While AI investments have tripled compared to supply chain diversification (14%) and upskilling (13%), 75% of firms lack a unified AI strategy, leaving them vulnerable. Adam Hofmann, principal in generative AI strategy and implementation at Elixirr, said: “The organisations making real progress are those that go beyond surface-level adoption, embedding AI deep into their operations,” adding: “Playing it safe is now the biggest risk.”

With the Office for National Statistics set to publish Q3 data, economic growth in the UK is expected to have slowed further, with economists forecasting just 0.2% GDP growth for the three months to September. This would mark a slowdown from the 0.3% recorded in Q2 and 0.7% logged in Q1. Sanjay Raja, chief UK economist at Deutsche Bank, said: “Anticipated weakness in growth is a result of weaker industrial production activity, and primarily weaker oil and manufacturing output.” He added that the construction sector is expected to remain flat, while services will only report a slight improvement. Pantheon Macroeconomics has forecast that growth remained at 0.1% in September, saying that while the economy would benefit from retail growth, there would be weaker output across accommodation and food services.

With Chancellor Rachel Reeves considering a tax raid on limited liability partnerships (LLPs), concerns have been raised within the legal profession. Dan Neidle, a former tax partner at law firm Clifford Chance and the founder of Tax Policy Associates, says a solicitor earning £316,000 and taking home about £180,000 could see this drop to £158,000 and their tax rate rise from 43% to 50%. Data from the Solicitors Regulation Authority shows that about 16% of the just over 9,000 law firms in England and Wales use the LLP structure, which has been considered to be tax efficient.

Patriotic Millionaires, a campaign group made of wealthy Britons, is advocating for higher taxes on the rich to support public services. They propose reforms to capital gains tax and a new wealth tax which they say could potentially generate £36bn annually. Ahead of the Budget, the group has launched a ‘Tax The Super-Rich’ tour to highlight the closure of public facilities since 2020.