Rachel Reeves has attempted to reassure business leaders in Davos by saying that no further tax increases are anticipated to support public finances. She said: “We will not need to do more on that front.” Despite concerns over the Government’s financial position, with economists suggesting that two-thirds of the £22bn headroom may have vanished, the Chancellor remains confident. She went on to stress the importance of maintaining strong alliances, particularly with the US, and indicated that any fiscal changes would not occur until the Autumn. Also speaking at Davos, Bank of England governor Andrew Bailey pointed to the need for vigilance regarding geopolitical uncertainties affecting financial stability.

Nearly 400 millionaires and billionaires from 24 countries have signed an open letter urging global leaders to raise taxes on the super-rich. Released during the World Economic Forum in Davos, the letter highlights the dangers of extreme wealth, stating it undermines democracy and exacerbates social exclusion. Signatories, including Mark Ruffalo and Abigail Disney, argue that the wealthy have too much influence over politics. A poll by the Patriotic Millionaires group revealed that 77% of millionaires in G20 countries believe the ultra-wealthy buy political influence, with many supporting higher taxes to fund public services.

Labour’s tax increases last year have led to over 6,000 job losses in Britain’s grassroots music venues, according to the Music Venue Trust (MVT). The rise in employer national insurance contributions and business rates has strained venues, resulting in nearly 20% of the workforce being cut. The MVT’s annual report revealed that 30 venues closed in 2025, leaving 175 towns without regular professional shows. Mark Davyd, MVT’s founder, stated: “This sector has done all it can to keep music live in our communities,” calling for government support and a grassroots levy from larger venues.

Scotland has secured three places in the UK’s top ten business growth hotspots, with Perth and Kinross, Aberdeen and Moray ranked highly in Growth Flag’s Growth Outlook 26. The study analysed more than 4.3m UK businesses and found only 9% are forecast to achieve growth of 20% or more in 2026. Perth and Kinross topped the UK rankings for the second year running, driven by strong food and drink, tourism, energy transition and advanced manufacturing sectors. Aberdeen’s shift towards renewables and clean tech supported its performance, while Moray benefited from food, drink and engineering strengths.

Sales of London’s luxury homes valued at £5m or more fell by 11% in 2025, according to Savills. Only 412 properties were sold, down from 463 the previous year. Total spending dropped to £4.09bn, an 18% decrease. The introduction of a mansion tax, starting in 2028, has deterred wealthy buyers. Frances McDonald, director of research at Savills, said: “Uncertainty over taxation and changes to the non-dom regime contributed to a slower £5m-plus transaction market.” Despite the downturn, activity increased in late 2025 as some buyers moved past Budget concerns.

The UK lost nearly 1,400 jobs a day last month, totalling 43,000, according to the Office for National Statistics (ONS). The December slump marks the largest drop since November 2020. Business leaders at the World Economic Forum in Davos expressed concerns over Labour’s policies, attributing the job losses to higher taxes and new regulations. Andrew Griffith, Tory business spokesman, described the situation as a “terrible scorecard” for the Government but the Chancellor, defended Labour’s approach, stating: “Our plan is the right one,” despite growing scepticism among business leaders about the UK’s economic stability.

The Chancellor will announce changes at the World Economic Forum in Davos to attract skilled workers to the UK. Rachel Reeves plans to refund visa fees for global businesses and expedite the sponsorship process for migrant workers. Reeves said: “Some countries give you a platform, but Britain gives you momentum.” She will also highlight Labour’s investments in steel, clean energy, and transport infrastructure in northern England. However, her message comes amid concerns over rising business rates affecting the hospitality sector, with over 130 hotel providers urging for a support package.

Hedge funds are increasingly dominating the UK’s £3tn gilt market, raising concerns about financial stability, according to Bank of England Governor Andrew Bailey. He told MPs that a small number of hedge funds hold significant positions, which could lead to rapid sales if they seek quick profits. However, the concentration of debt in few hands poses risks, particularly in the £100bn repo market, where funds leverage gilts to borrow more. This could create a downward spiral in prices, increasing government borrowing costs.

Small and medium-sized enterprises (SMEs) are increasingly sidelining green finance initiatives as they focus on survival amid rising costs. The latest NatWest business growth tracker revealed that only 30% of firms consider sustainability a high priority, the lowest since early 2020. Cost pressures have led many businesses to postpone or scale back green initiatives. NatWest chief economist Sebastian Burnside noted: “Costs – particularly for staff and raw materials – remain elevated.” The report highlights that 73% of firms view rising costs as their biggest challenge.

Writing in City AM, David Bailey, the executive director for prudential policy at the Prudential Regulation Authority, says the implementation of the Basel 3.1 international standards marks a major step forward for the banking sector and will address “important weaknesses” revealed during the global financial crisis. The PRA on Tuesday published its rules on the standards, which set the capital that banks and building societies must hold.

Liam Byrne, chairman of the Commons business and trade committee, has warned that the Government’s decision to scrap the Audit Reform Bill prioritises deregulation over accountability. He says the move undermines trust in UK business practices. In a letter to Byrne on Tuesday, Blair McDougall, the small business minister, said the Government would still look to put the Financial Reporting Council (FRC) “on a proper statutory footing, as soon as parliamentary time allows.” The reforms aimed to enhance oversight of auditors and replace the FRC with a more powerful regulator.