Industry leaders have cautioned the Chancellor against relying on business taxes to address the fiscal gap as the Budget approaches. Tina McKenzie, policy chair of the Federation of Small Businesses, said: “Small firms are not cash cows to be milked whenever the Treasury runs dry.” The British Chambers of Commerce (BCC) and the British Retail Consortium echoed these concerns, warning that further tax increases could lead to job losses and higher prices. Shevaun Haviland, the director general of the BCC, says a third of firms have made people redundant in recent months – or are considering it, and that the upcoming Budget must be one that “backs business and delivers growth.” She added: “We’re clear that a further increase in the tax burden on firms is the wrong choice.” Helen Dickinson, chief executive of the British Retail Consortium, said retailers “were hit disproportionately hard” by last year’s Budget, amid a hike in employer National Insurance. She warns: “The consequence of further tax rises on the industry will be to amplify these effects – meaning more job losses and higher shop prices for households.” The Chancellor’s recent decision to shelve income tax hikes has sparked speculation about alternative tax measures to address a shortfall in public finances.

Flexible working businesses have alerted Chancellor Rachel Reeves about potential property tax increases that could jeopardise thousands of jobs. Over 60 operators of serviced offices and co-working spaces, representing more than 27,000 businesses, expressed “urgent and deeply serious concern” in a letter. The Valuation Office Agency has reclassified these spaces, leading to higher business rates and loss of reliefs for over 150,000 SMEs. Jane Sartin, executive director of the Flexible Space Association, stated: “Operators are being hit with sudden, steep increases in business rates.” The agency cited case law as justification for the changes.

The Treasury has confirmed that the personal savings allowance will remain frozen for another year. The move would raise over £6.2bn in the 2026-27 tax year and over £6.4bn in 2027-28, according to the Centre for Economics and Business Research. Stuart Adam, senior economist at the Institute for Fiscal Studies, said more people would inevitably be driven into paying tax on their savings, creating an “administrative nuisance” and the possibility of accidental tax evasion. The personal savings allowance, which allows basic rate taxpayers to earn up to £1,000 in savings interest tax-free, and higher-rate taxpayers £500, was introduced by George Osborne in 2016 and has remained frozen ever since. Commenting on the move, Richard Tice MP, deputy leader of Reform UK, said: “Yet more taxes by Robber Reeves on the workers and savers doing the right thing. Why not cut welfare abuse and stop paying almost two million foreign nationals any benefits? That would save far more.”

Amid speculation that the upcoming Budget is set to deliver significant tax rises, Dan Neidle, a former head of tax at Clifford Chance and founder of the think-tank Tax Policy Associates, argues that if tax increases are necessary, they should not disproportionately affect workers. He suggests that by cutting employee National Insurance by 4% and increasing income tax by 3%, the Treasury could raise £8bn. Mr Neidle, who notes that “most tax rises hit growth,” warns that the tax system is “irrational and anti-growth,” describing it as “a ratchet that only ever gets worse.”

UK private sector activity rose significantly in October, marking its largest monthly increase of the year. According to the latest business trends report from BDO, output climbed to 97.49, up from 96.25 in September, driven by the services sector and a rebound in manufacturing, which saw output rise to 94.14. However, Scott Knight, head of growth at BDO, noted that uncertainty surrounding the Autumn Budget is affecting the outlook. He commented: “Businesses remain stuck in wait mode as nerves around the Autumn Budget weigh on confidence.”

Confidence in the UK economy among fintech founders has plummeted, with 81% expressing pessimism about the next 12 months, up from 46% last year. The survey, conducted by Fintech Founders, highlights concerns over regulation and the impact of recent tax policies.  Despite this, 92% of the 500 business founders polled remain confident in their own businesses. It was also shown that founders are increasingly adopting AI, with 83% using it in operations. However, 42% have voiced concern about the Financial Conduct Authority’s cautious approach to AI regulation.

Three-quarters of SME leaders are optimistic about their growth prospects for 2026, yet only 39% trust the Government to foster that growth, according to Mike Hackett, chief commercial officer of ThinCats. He says confidence has dropped by 10 points over the past year, highlighting a disconnect between SMEs and Government. Many businesses are pivoting towards technology and automation due to rising employment costs, Mr Hackett notes, with 40% freezing recruitment and 20% reducing headcount. He has emphasised the need for Government support.

The TUC has called for the modernisation of the Office for Budget Responsibility (OBR), claiming it supports austerity economics that stifles growth. General Secretary Paul Nowak stated that the OBR acts as a “straitjacket” on living standards. With the autumn Budget approaching, the TUC called for a review of the OBR’s role in the budget-setting process. Nowak remarked: “The timing on the OBR’s productivity view was baffling.”

New identification rules for directors and beneficial owners will take effect in the UK from November 18. Companies House aims to combat financial crime by ensuring that individuals behind companies verify their identities. Over 1m people have already complied, with an estimated 7m more expected to follow suit in the next year. Graham Barrow, a corporate filings expert, said: “I expect daily new incorporations will fall off a cliff.” He noted that the changes may not negatively impact legitimate businesses, as they target those with questionable intentions.

UK small and medium-sized enterprises (SMEs) are increasingly prioritising innovation to navigate economic challenges, according to research from Alibaba.com. Nearly 48% of 1,000 surveyed SME decision-makers plan to boost spending on product innovation and R&D. A significant 86% view innovation as crucial for business performance. Despite facing hurdles like high costs and resource shortages, many SMEs are leveraging digital tools and AI to enhance efficiency. Alibaba.com’s CoCreate Europe event showcased innovative ideas, with a grand prize of $200,000 awarded to the top product innovator, highlighting the commitment to fostering creativity in the sector.

UK Government borrowing costs have surged following the Chancellor’s decision to maintain current income tax rates, with Rachel Reeves reportedly opting against a hike in income tax in her upcoming Budget. The yield on 10-year government bonds rose from 5.44% to 5.56%, reflecting market concerns over the Government’s ability to manage its finances without tax increases. However, yields eased after the Office for Budget Responsibility reported a smaller fiscal gap than expected. Ruth Curtice, chief executive of the Resolution Foundation, noted that public speculation around tax changes could exacerbate market volatility. “It is not normal for so much of that to be laid bare in public,” she said.

The Office for Budget Responsibility (OBR) has given Chancellor Rachel Reeves an unexpected £1.7bn boost by shifting the 10-day market forecasting window it uses for Budget calculations. Instead of using data up to October 10, the OBR extended the window to October 21. This means the OBR incorporated a significant fall in gilt yields. Lower gilt yields reduce government borrowing costs, helping Ms Reeves meet her fiscal rules. Analysis by Oxford Economics suggests that lower borrowing costs during the OBR’s delayed forecast window will have cut debt-servicing costs by £1.7bn. The OBR has also informed the Chancellor that the gap in the public finances is now closer to £20bn than the £30bn that had previously been suggested.

According to a survey by Times Money, 76% of top-rate taxpayers do not consider themselves rich, despite earning over £125,000. Only 21% of respondents felt wealthy, with many identifying as working class. The survey, conducted by YouGov, included over 4,000 participants. Shadow Chancellor Sir Mel Stride commented on the complex tax system for higher earners, stating: “Britain should reward hard work, not punish ambition.” The survey comes as Labour considers extending the freeze on income tax thresholds, a move the IFS concluded would result in 10.1m higher-rate taxpayers. According to analysis by the Conservatives, the freeze could cost higher-earning couples up to £1,300 annually.

Manufacturers in the UK are urging the Government to expand the British Industrial Competitiveness Scheme, which currently exempts 7,000 energy-intensive companies from green energy taxes. Make UK, led by chief executive Stephen Phipson, argues that the scheme should cover all 115,000 manufacturers to alleviate “eye-watering” energy costs. Phipson said: “The clock is ticking on tackling our eye-watering energy costs.” The proposed extension would cost £3.3bn but would benefit the economy with similar levels of growth and allow more businesses to survive the energy transition, Make UK argues.

The Sunday Telegraph looks at the plans for Forest City 1, a proposed £100bn new city on 45,000 acres of land on the Cambridgeshire-Suffolk border. Envisioned to house 1m people with 12,000 acres of woodland, the project, led by Shiv Malik and Joe Reeve of Looking for Growth, aims to tackle Britain’s housing crisis through a privately funded, city-scale. The proposed development would feature wooden skyscrapers, 6G networks, self-driving transport, and solar energy. While the plan has garnered support from academics, industry figures, and high-profile backers, critics question its feasibility, citing lack of transport infrastructure, planning hurdles, and doubts over private landowners.