The UK Government plans to invest £100m in emerging chip technology to support the artificial intelligence (AI) sector. The initiative will guarantee payments to British start-ups producing AI hardware for key sectors like life sciences and financial services. This “first customer” model aims to attract investment and enhance the UK’s tech infrastructure. Science Secretary Liz Kendall stressed the importance of government leadership in AI development, stating: “We do not want to be reliant on other countries for the key areas.” TechUK’s Sue Daley noted the ambition but cautioned about potential competition distortion. City AM points out that the announcement comes amidst increasingly stark warnings from employers over the impact of AI and rising labour costs. Recent surveys from the CIPD show one in six employers expects to cut staff in the coming year as companies adopt AI.

More than half of Britain’s fastest-growing start-ups are founded by immigrants, according to new analysis from the Entrepreneurs Network. The report reveals that 54% of the UK’s top 100 companies have at least one foreign-born founder, up from 39% in 2024. Eamonn Ives, research director at The Entrepreneurs Network, commented: “Foreign-born founders are disproportionately building the UK’s growth companies of the future.” The report calls for reforms to immigration policies to support high-skilled migration.

London Property Alliance has urged the Chancellor to recognise offices as essential economic infrastructure. The organisation highlighted a 54% drop in major planning applications over the past decade, warning of a significant economic risk due to the under-supply of prime office space. Charles Begley, chief executive, said: “London’s commercial centres power the UK’s high-value service industries.” A report by Knight Frank predicts a 7.5m sq ft shortfall in office space by 2028, while rising rents and high construction costs further complicate the situation.

Consumer confidence has dropped to -19, according to GfK, as households prepare for potential tax increases in the upcoming budget. Neil Bellamy, consumer insights director at GfK, noted: “A fall across all five measures suggests the public is bracing for difficult news.” Speculation surrounds Chancellor Rachel Reeves’ plans, with indications of an £8bn to £10bn tax increase through frozen thresholds. This uncertainty is causing consumers to delay spending, particularly on big-ticket items, which could impact retailers during the crucial Christmas trading period.

David Postings, chief executive of UK Finance, has warned against increasing taxes on banks ahead of the upcoming Budget. He highlighted that the banking sector’s effective tax rate is already 46.6%. Postings said: “A healthy, growing banking sector produces high-quality jobs,” noting that banks contribute £120m daily to tax revenues. He urged the Chancellor to consider the implications of tax hikes on competitiveness and economic growth, pointing to the need for a balanced approach to taxation and risk appetite in the financial services sector.

New figures reveal that frozen tax thresholds will pull an additional 500,000 people into the £100,000 tax trap by 2029. This trap affects those earning between £100,000 and £125,150, where every extra £1 earned results in a 60% effective tax rate due to the tapering of the personal allowance. Stephanie Ebner, financial planning lead at Rathbones, said: “The £100,000 tax trap is one of the most baffling quirks in our tax system.” The unchanged threshold since 2010 has increasingly burdened middle-class families, especially those with young children losing childcare support.

Eurotunnel, operator of the Channel Tunnel, said it has been told to expect a 200% increase in business rates from next year. This hike could jeopardise future investments in the UK, with CEO Yann Leriche stating: “This unparalleled and unsustainable level of taxation makes any future investment in the UK non-viable.” The company may abandon plans for a major freight terminal in east London and a direct freight service to Lille, which would add £118m to its tax bill over three years. The Valuation Office Agency claimed next year’s liability is not yet confirmed.

Nearly 946,000 young people aged 16-24 in the UK are classified as Neet, according to the Office for National Statistics. This figure represents one in eight young individuals. In response to the figures, the Secretary of State for Work and Pensions Pat McFadden said a planned “Youth Guarantee” scheme would ensure young people “have access to education, training, an apprenticeship – or ultimately guaranteed paid work if they cannot find a job”.

The UK’s economic growth has slowed to 0.1% in the third quarter (Q3) of 2023, down from 0.3% in the second quarter (Q2), according to the Organisation for Economic Co-operation and Development (OECD). This decline is attributed to “destocking continued,” where firms are not replacing sold goods. Despite this slowdown, the UK recorded the highest year-on-year GDP growth among G7 economies at 1.3%. Meanwhile, Israel led Q3 growth at 3%, while Germany and Italy saw zero growth.

Uber Eats will soon deliver orders via robots in Leeds and Sheffield. Developed by Starship Technologies, the 35kg robots can travel up to 4mph, completing deliveries within 15 minutes. Ahti Heinla, Starship’s chief executive, stated: “We are actually not really replacing [human] jobs, but we are creating new ones [for] retailers that have not had delivery before.”