Lakshmi Mittal, the Indian steel magnate, has left the UK for Switzerland, primarily due to changes in tax regulations. His departure follows the Labour Party’s reforms, including the abolition of non-dom status, which allowed wealthy individuals to pay UK tax only on local income. An adviser noted: “The issue was inheritance tax,” which many wealthy foreigners find burdensome. Meanwhile, Companies House filings show 6,100 company directors have left the UK in the past 12 months, up from 4,300 during the same period the previous year – an increase of 42%. Anna Leach, the chief economist at the Institute of Directors, said company leaders had been prompted to move by “a sense of building crisis” adding: “More recently, it would have been exacerbated by rumours of an exit tax, even though it was then rumoured to be dropped. Either way, it doesn’t look like rational policy-making, and why would you want to stay in a country that doesn’t make rational policy decisions?”

Most UK businesses are dissatisfied with Labour’s economic policies, according to a report by MyWorkwear. Two-thirds of business leaders said National Insurance and minimum wage increases have had a negative impact, while many fear for their survival, with 47% worried about the next five years. James Worthington, managing director of MyWorkwear, said most bosses “already appear to have had enough of current policies and feel they are strangling the life out of the economy.” The survey indicates a lack of confidence in Labour, with 75% of respondents saying they would vote for another party if an election were held tomorrow.

Retail sales in the UK fell by 1.1% in October, marking a disappointing start to the festive season. Erin Brookes, European Retail and Consumer Lead at Alvarez & Marsal, noted that consumer spending is constrained by nervousness and mixed messages from the Chancellor. The GfK consumer confidence barometer dropped to -19 in November, reflecting pessimism about personal finances. Oliver Vernon-Harcourt from Deloitte described the results as disappointing, attributing the decline to consumers delaying purchases ahead of Black Friday. Despite inflation easing, uncertainty surrounding the upcoming Budget poses risks for retailers.

The Centre for Policy Studies (CPS) has criticised the UK’s fiscal rules, warning that they have not stabilised public finances since their introduction in 1997. The think-tank has suggested that governments have overspent by £100bn over 25 years, with each Chancellor creating their own ineffective framework. Daniel Herring, head of economic and fiscal policy at the CPS, said: “The entire system of self-imposed restrictions has forced every Chancellor… to prioritise meeting those rules at the expense of policy.” The report suggests looking to other countries for better fiscal rule designs.

Critics have voiced concern over a potential stealth tax as Chancellor Rachel Reeves prepares to freeze income tax thresholds. Research indicates that 1.3m additional individuals could be pushed into the higher 40% tax bracket. According to analysis by the Liberal Democrats, this will see the overall number of people pushed into the 40p rate hit 9m by 2029/30. Liberal Democrat Treasury spokesperson Daisy Cooper said: “Rachel Reeves once accused the Conservatives of ‘picking the pockets’ of working people by freezing tax thresholds – now Labour plans to do exactly the same. That’s rank hypocrisy.” Meanwhile, research indicates that by 2030, up to 10m pensioners could be liable for income tax if the £12,570 threshold remains frozen. Currently, 8.7m pensioners pay tax, a figure expected to rise to 9.3m with a 2.5% increase in the state pension.

Chancellor Rachel Reeves plans to impose a new surcharge on over 100,000 high-value properties in Britain, with the tax set to deliver a £4,500 hit, on average, for the wealthiest homeowners. The threshold for the tax, which previous reports had suggested would be set at £1.5m, is now expected to be £2m. The Treasury aims to pull in £400m to £450m through the levy, which is set to be collected through council tax bills. The move will involve revaluing 2.4m of the most valuable properties across bands F, G and H. Sources say the Government will allow people to defer paying the new tax until they move house or die, meaning they can avoid having to sell their homes to cover the cost.

With Rachel Reeves expected to announce significant tax increases in the upcoming Budget, Rain Newton-Smith, CEO of the Confederation of British Industry, is set to warn the Chancellor that “you will never be able to tax your way to growth.” In a speech to the CBI’s annual conference, Ms Newton-Smith will warn Ms Reeves against opting for “death by a thousand taxes,” adding: “Tax rises alone are bound to fail.”

Rishi Khosla, CEO of OakNorth, has warned that a proposed tax on banks would hinder the UK’s economic growth. He stated that such a levy would reduce banks’ capital for lending to small firms, which are often overlooked by larger institutions. “The UK already has one of the highest effective tax rates for banks in the developed world. If investors in British banks see continually lower returns here than elsewhere, they’ll simply deploy their capital in other markets, leaving even less money to fund UK businesses and growth,” Khosla said.

Job vacancies in the UK fell by 3.6% to below 800,000 in October, marking the lowest level since March 2021, according to jobs search engine Adzuna. The unemployment rate hit 5% for the first time since 2021 in September, according to official figures from the Office for National Statistics, and Adzuna said the ratio of unemployed people to vacancies has hit its highest since May 2021. The analysis also shows that graduate employment opportunities have declined by over 40% in the past year. Despite the decline in vacancies, average salaries for newly listed jobs rose by 0.27% to £42,531, outpacing inflation at 3.6%.

PwC’s global chairman, Mohamed Kande, has said that artificial intelligence (AI) will likely lead to a reduction in the hiring of entry-level graduates. While the firm needs to recruit hundreds of AI engineers, it struggles to find suitable candidates. “We are looking for hundreds and hundreds of engineers today to help us drive our AI agenda, but we just cannot find them,” Kande said. He noted that the company has dropped its previous goal of hiring 100,000 people over five years due to AI’s impact before going on to stress the need for new talent to drive the AI agenda, saying: “We want to hire, but I don’t know if it’s going to be the same level of people.”

Britain’s construction industry faces a severe shortage of workers, with one in three builders over 50. The Centre for Social Justice (CSJ) reports that 161,000 additional workers are needed to meet Labour’s goal of 1.5m new homes. The number of construction workers has dropped by 500,000 since 2008, exacerbated by an ageing workforce and a lack of training for young people. Josh Nicholson from the CSJ commented: “Unless the Government and industry can work together to reverse these trends, then it is highly unlikely Britain will be able to build the housing and infrastructure it so desperately needs.”

Small businesses are losing approximately £5bn annually due to easily fixable corporate credit profiles, according to FXE Technologies. The company analysed 24,000 credit profiles of firms that were denied business loans and discovered that 65% were “readily fixable.”

Steve Perez, founder of Global Brands, has cancelled £20m in investments due to new inheritance tax plans. The Chancellor’s proposal to impose a 20% tax on family firms from April 2026 has led Perez to halt expansion projects that would have created nearly 100 jobs. He said: “I have absolutely stopped investing in my business, because the more I invest the bigger the tax bill my family are going to have to pay.” Perez fears his family may face a tax bill of £10m to £20m upon his death, jeopardising the future of his business and employees.

Rob Hornby and David Garfield, the co-CEOs of AlixPartners, say the rise of generative AI poses significant challenges for the consultancy sector, suggesting that trust will be crucial for the profession’s survival. They say that historical patterns show that while some roles may vanish, the industry typically adapts, evolving towards higher-value services. As AI automates basic tasks, they say firms must focus on strategic thinking and change management. Mr Hornby and Mr Garfield say that success “will depend on the firms that adapt and invest at accelerated levels.”

Former Bank of England economist Andy Haldane has criticised Chancellor Rachel Reeves for creating a “fiscal fandango” ahead of the Autumn Budget, saying prolonged speculation over tax rises has caused economic paralysis and contributed to flat growth. Reports suggest Reeves avoided planned income tax increases due to improved forecasts from the Office for Budget Responsibility. Transport Secretary Heidi Alexander highlighted that changing OBR productivity projections added uncertainty. The Budget is expected to focus on lowering the cost of living, introducing welfare reforms, and raising around £40bn through measures including a mansion tax, freezing income tax thresholds, new national insurance rules, and a pay-per-mile scheme for electric vehicles.

The UK economy showed no growth in November, according to S&P Global’s purchasing managers’ index (PMI), which recorded a composite reading of 50.5. This figure indicates stagnation, with firms halting orders and investment ahead of the Chancellor upcoming Budget announcement. Chris Williamson, chief business economist at S&P Global, noted: “Some of this malaise has been blamed on paused spending decisions ahead of the Autumn Budget.” The report also highlighted a decline in new work and a sharper reduction in headcount, reflecting a struggling jobs market.

Wealthy individuals in the UK may face increased taxes in the upcoming Budget due to a lack of understanding of tax allowances. Research from Charles Stanley reveals that nearly 50% of high net worth (HNW) individuals are unaware of their capital gains tax allowance. Additionally, over 65% are uncertain about inheritance tax allowances. Harry Bell, director of financial planning at Charles Stanley urged individuals to seek financial advice to protect their wealth.