A new report from SEC Newgate UK suggests British businesses should focus more on local production, supply chains, and ownership while reducing emphasis on DEI hiring targets, reflecting a public preference for merit-based recruitment. The survey found that most Britons would view companies more positively if they manufactured goods locally, paid taxes in the UK, sourced materials domestically, and based their headquarters in the country. Support remains strong for gender pay gap and accessibility initiatives, as well as for businesses taking a stand on environmental and social issues, even at political or financial cost. While the public wants companies to prioritise climate action and act responsibly, they also demand tangible proof of impact, transparency, and authenticity. The report suggests that the public are increasingly focused on practical, local, and verifiable corporate impact over global commitments or symbolic gestures, with younger generations placing particular importance on authenticity alongside financial performance.

According to Enterprise Nation’s Start-up Ambition report, financial necessity is now the primary motivation for 33% of aspiring entrepreneurs, surpassing passion for the first time. The report reveals that 40% of adults plan to start a business, with 56% launching side hustles to supplement their income amid rising costs. The report highlights a significant shift in entrepreneurship, driven by economic pressures and the desire for financial stability.

The European Union plans to implement new banking regulations that experts warn may hinder economic growth. A report from New Financial and the City of London Corporation warns that these rules could restrict non-EU banks from offering core services without a local branch. The report estimates that up to 20% of EU bank borrowing could be affected, impacting crucial projects like defence and net zero initiatives. The report says: “This disruption could have a negative impact on the EU’s ability to finance strategically important projects.” Calling for “a more serious conversation about how both economies can work more closely together,” the report proposed measures including the creation of an enhanced EU-UK regulatory dialogue, mutual recognition of professional services qualifications and an exchange programme between UK and EU regulators. It is noted that UK banks have diversified post-Brexit, but the EU’s new Capital Requirements Directive could threaten their lending to EU counterparties.

The Employment Rights Act is projected to cost businesses £1bn annually. This figure marks a decline on a previous estimate of £5bn, which was based on a now-abandoned policy allowing immediate unfair dismissal claims. The British Chambers of Commerce has expressed scepticism about the savings, saying employers remain concerned about the “cumulative financial impact” of the legislation and the “impact on their ability to recruit, develop and harness a skilled workforce.” The new Fair Work Agency will oversee employment rights enforcement, but critics, including Andrew Grifth, the Shadow Business and Trade Secretary, argue it serves union interests rather than businesses. Mr Grifth said: “This agency will simply mean more red tape for businesses.”

McKinsey is piloting AI-assisted recruitment tests for graduates, evaluating candidates’ ability to use AI tools effectively in a move designed to reflect the firm’s evolving consulting practices.

Business leaders warn that a “talent tax” imposed by SNP ministers is driving nearly one million Scots out of the workforce. The Scottish Fiscal Commission forecasts that by 2028/29, 28.7% of Scots will pay higher rates, compared to 22.9% in the rest of the UK. The CBI Scotland highlighted that Scots will pay £1.8bn more in taxes than if they lived elsewhere in the UK. Michelle Ferguson, director of CBI Scotland, said business groups had urged ministers “to stop tax and regulatory drift and end the talent tax caused by income tax divergence.”

UK Government bond yields have fallen to their lowest levels since December 2024 as signs of a slowing economy fuel expectations that the Bank of England will start cutting interest rates, easing pressure on the public finances. Ten-year gilt yields are now around 4.34%, helping boost the Treasury’s fiscal headroom by more than £3bn. Analysis by Capital Economics suggests that the fall in gilt yields since November’s Budget means that the Chancellor’s headroom has increased from £21.7bn to £25.4bn. Experts have suggested that the rally in gilts is less a vote of confidence in the UK economy and more a reflection of weak growth, cooling hiring and softer inflation, with markets pricing in about two Bank of England base rate cuts this year. Fraser Lundie, head of fixed income at Aviva Investors, says that Government is “riding a powerful macro tide rather than creating it.”

Research from AutoTrader reveals that nearly 50% of potential electric vehicle (EV) buyers are reconsidering their plans due to a proposed 3p per mile tax starting in 2028. Nathan Coe, AutoTrader’s CEO, described the tax as “incoherent and inconsistent” with the Government’s EV promotion efforts. The report, No Driver Left Behind, highlights that cost remains the primary barrier to EV adoption. Ian Plummer, AutoTrader’s chief customer officer, warned of a potential two-tier system if lower-income households cannot access affordable EVs.