Business Secretary Peter Kyle says Labour’s tax policies could be prompting wealthy individuals to leave the UK, saying: “I do acknowledge that we have put up taxes and closed some of the loopholes for non-doms.” He told Sky News it was a “worry” for the Government “whenever anyone needs to leave the UK to succeed.” However, Mr Kyle also highlighted efforts to attract talent through initiatives like the global talent visa, saying: “We are making it easy, easier for people to come here who have high talents.” He said that while “lots of people are coming here because of the new excitement in our country… I accept because of some of the decisions we’ve made, like closing those non-dom tax loopholes, some people will feel the need to leave.” Last year Britain lost a net 10,800 millionaires and it is estimated that another 16,500 will leave this year.

The proposed mansion tax on properties valued over £2m could lead to significant issues, economist Paul Johnson, the former head of the Institute for Fiscal Studies, has warned. Chancellor Rachel Reeves plans to introduce a council tax surcharge, potentially costing homeowners an average of £4,500. Mr Johnson cautioned that a poorly implemented tax could disrupt the housing market, suggesting a sliding scale based on property value instead of fixed bands. He said: “If what they’re planning is bands where it goes up suddenly… they’re going to be in a whole world of trouble.”

With the Chancellor expected to extend a freeze on tax thresholds, Institute for Fiscal Studies (IFS) director Helen Miller has warned that such a move breaches Labour’s manifesto promise against tax increases. The IFS estimates that a two-year extension to the current freeze in the thresholds would mean 960,000 more people paying income tax and 790,000 more people dragged into the higher rate as their wages increase.

The upcoming Budget presents significant challenges for SMEs, according to John Phillipou, managing director of Paragon Bank’s SME lending division and chair of the Finance and Leasing Association. Recent fiscal measures have strained margins, with 73% of SMEs affected by the increase in employers National Insurance. Mr Phillipou emphasised the need for the Government to recognise the role of SMEs, which employ 60% of the private sector workforce, saying: “It is vital that SMEs are properly recognised in fiscal policy.” SMEs are calling for action on employment costs, tax reform, and access to finance to foster growth and innovation.

Fund managers are increasingly optimistic, according to the latest investor trends survey by Quilter. The report shows that, on a scale of one to 10, the average fund manager’s risk appetite increased from 5.4 to 5.9 in the last financial quarter. It was also found that managers are worried over the private credit market, with almost two thirds identifying it as the most underappreciated risk among investors. Meanwhile, nearly half of respondents said the overvaluation in tech stocks and the AI trade was the most underappreciated risk.

The Office for Budget Responsibility (OBR) is expected to downgrade its economic growth forecasts for each year to 2030/31 – the remainder of the parliament. While the OBR had previously forecast growth of 1.9% in 2026, economic forecasters have been less optimistic, with projections ranging between 0.9% and 1.4%, according to a survey of City analyst notes compiled by the Treasury. The Bank of England, meanwhile, has projected GDP growth to hit 1.2% next year. This comes with Chancellor Rachel Reeves looking to address a £20bn gap in public finances, with tax hikes expected in the upcoming Budget. Neil Shearing, group chief economist at Capital Economics, said there was “no coherent, fully-fleshed out strategy for lifting long-term growth,” while Hetal Mehta, chief economist at St James’s Place, warned that GDP growth “has been lacklustre.”

Rain Newton-Smith, chief executive of the Confederation of British Industry (CBI), has urged Chancellor Rachel Reeves to prioritise economic growth in her upcoming Budget. Ms Newton-Smith has called for lower energy costs for businesses and measures to boost private sector output. She said: “If growth is your priority, prove it – make hard choices for it.” Ms Newton-Smith also voiced concern over elements of the Employment Rights Bill, advocating for a compromise between the demands of businesses and unions. The CBI has also called for pro-growth measures, including fast-tracking infrastructure projects and flexible tax arrangements, to avoid long-term economic decline.

Chris Hayward, policy chairman at the City of London Corporation, says the UK needs a stable tax and regulatory environment to maintain its position as a leading financial centre. He warns that while the City generates more than £110bn in annual output and supports around 676,000 jobs, Britain faces a £115bn investment shortfall. On taxation, Mr Hayward argues that the VAT exemption for financial services “must be preserved,”.while the bank levy and surcharge “have become less well suited to today’s competitive environment and should be wound down gradually and responsibly.”

Up to 3m low-skilled jobs in the UK may vanish by 2035 due to AI and automation, according to the National Foundation for Educational Research. The report highlights that sales, customer service, administration, and machine operations roles are most at risk. Highly skilled professionals, however, are forecast to be in demand as AI and technological advances increased workloads “at least in the short to medium-term,” with the UK economy expected to add 2.3m jobs by 2035.

The technology consulting market is projected to exceed $400bn (£312bn) by 2026, according to analysis by Source Global Research, with this driven by businesses upgrading legacy systems. The research shows that technology consultants are in high demand, with the market growing 4% in 2024 and predicted to grow 6% in 2025 and 7% in 2026. It was also found that 94% of clients plan to boost spending on digital technologies, including AI, in the next 18 months. The Big Four firms are expected to dominate this growth, with 80% of clients saying KPMG, Deloitte, EY, and PwC are the firms they are most likely to use. However, nearly 40% said they would be willing to work with new firms that can offer innovative solutions. Over a quarter of clients said they expect consulting service prices for technology advice to increase as broader consultancy spending slows.

US Secretary of Commerce Howard Lutnick has urged Europe to reconsider its digital taxes to facilitate lower US tariffs on steel and aluminium exports. His comments came during US-EU trade discussions in Brussels, where officials are addressing a deal that set US tariffs at 15% on European products. However, the US continues to impose a 50% duty on certain metals. European officials maintain that their digital taxes are not discriminatory.

Brexit is costing the UK up to £90bn annually in lost tax revenues, according to new analysis from the House of Commons Library. The average Briton is now £2,700 to £3,700 worse off. Lib Dem leader Ed Davey, whose party commissioned the analysis, has urged ministers to negotiate a new customs union with the EU, to “fix our broken relationship with Europe.” Sir Nick Harvey, chief executive of European Movement UK, said the analysis “shows just how much economic harm leaving the EU has wreaked on us both nationally and individually. Billions lost in tax every year, and all of us several thousand pounds poorer.”

Climate charity Possible is urging the Government to reform taxes on private jet travel. They claim that closing tax loopholes could generate £2.7bn annually for the Treasury and reduce emissions. Currently, 22% of private jet passengers pay no air passenger duty, while only 25% pay the highest rate. Possible suggests aligning private jet taxes with those of economy class passengers to ensure fairness.