Peter Kyle, the Business Secretary, says the Government is “betting big” on businesses by taking direct stakes in growing companies as ministers look to boost economic growth. Mr Kyle, who emphasised the importance of supporting scale-up companies to create jobs and wealth, acknowledged the possibility of failures but insisted that a hands-on approach is necessary for a healthy economy. “Waves of industrial change have always gone badly when governments stand on the sidelines,” he said. Mr Kyle also noted that the “most potential in our economy, in the short and medium term, is scale-up companies.”

Fund manager Vanguard, which oversees around £9trn in assets, is withdrawing nearly £2bn from UK stocks, reducing UK equity exposure from 25% to 20%. This decision reflects a shift towards a more global investment focus among British investors. Henry Norton, senior investment manager at private bank Arbuthnot Latham, said Vanguard’s decision is “a blow to the Government at a time when they are trying to convince investors of the benefits of increasing their exposure to the UK.” Noting that it still has £140bn invested in UK equities, Vanguard said: “We continue to have strong conviction in the UK as an essential part of a diversified portfolio.”

Government borrowing fell to £11.6bn in December, a 38% decrease from the previous year, according to the Office for National Statistics (ONS). The decline was driven by an increase in tax income, which rose by £7.7bn – or 8.9% – compared to December 2024. Tom Davies, deputy director at ONS, said the fall was due to “receipts being up strongly on last year whereas spending is only modestly higher.” Despite the drop, the level of borrowing recorded in December is the tenth highest for the closing month of a year since records began in 1993. The ONS data also shows that public spending also rose to £92.9bn, with this £3.2bn higher than December 2024’s total. Dennis Tatarkov, a senior economist at KPMG UK, commented: “With interest rate cuts expected later this year and the eventual ending of the Bank of England’s quantitative tightening programme on the horizon, the Treasury could see a marked decline in borrowing costs, potentially creating more room for public spending.” Joe Nellis, economic adviser at MHA, said: “Borrowing remains elevated in absolute terms, but the trend is moving in the right direction.”

While HMRC figures reveal a significant increase in tax receipts, experts have warned that the figures do not indicate a healthier economy. Between April and December 2025, PAYE Income Tax and National Insurance contributions reached £347.8bn, with this up £36.3bn from the previous year. However, Shaun Moore, a tax expert at Quilter, noted that while the data “may look encouraging at first glance … the headline figures flatter to deceive,” highlighting that frozen tax thresholds and fiscal drag are driving the increase. He warned that the tax system is becoming more demanding on households without reflecting genuine economic improvements, saying: “Over time, this approach delivers a steady uplift in revenues, but it does so by gradually stretching household budgets rather than reflecting broad-based improvements in productivity or living standards.”

Industry leaders including the director-general of the Institute of Directors and the chairman of the UK Shareholders’ Association have warned the Government that scrapping the Audit Reform Bill risks further major company failures. In a letter to Business Secretary Peter Kyle, they argue the decision is a “significant step backwards” after years of delays. The Government dropped the Bill to avoid extra costs for large firms and reduce regulation, despite earlier commitments to deliver reform and concern over high-profile corporate scandals. Signatories to the letter co-ordinated by the Chartered Institute of Internal Auditors say no meaningful legislative reform has followed the 2018 collapse of Carillion, despite multiple reviews and consultations. The letter also points to later failures such as Thomas Cook, Wilko and Patisserie Valerie as evidence of ongoing weaknesses in audit and governance. They warn these collapses have cost jobs, damaged pensions and hurt supply chains. Ministers have been urged to act quickly by strengthening oversight of large companies, publishing proposals for a modernised reporting framework, and creating a stronger audit regulator. Blair McDougall, a Business Minister, insists that there has been a “great deal of progress” in regard to the quality of audit regulation and audits, adding that the Government will still look to put the Financial Reporting Council “on a proper statutory footing, as soon as parliamentary time allows.”

Tens of thousands of jobs have vanished in London, with 30,000 construction roles lost in the first nine months of last year. The retail sector saw a reduction of 14,000 jobs, while administration and support services experienced a decline of 43,000 positions. The unemployment rate in London has risen to 7.2%, the highest in the UK, as businesses grapple with increased taxes and wage bills. Alex Baldock, CEO of Currys, said: “If you make it harder, riskier and more expensive to employ people then fewer people will be employed.”

Nigel Farage says Reform UK will impose a tax on the UK’s banking sector, saying financial institutions are “not going to get free money anymore.” Speaking at the World Economic Forum, he said: “This will be tough for banks to accept but I am sorry – the drain on public finances is just too great.” Ahead of November’s Budget, the Institute for Public Policy Research urged the Chancellor to introduce a £8bn levy on banks.

Manchester United has dropped to eighth place in Deloitte’s Football Money League, marking their lowest position ever, with the decline attributed to a €52m drop in broadcast revenue due to their absence from the Champions League. Liverpool were the highest-earning English club in the rankings, with nine Premier League clubs making the top 20. Real Madrid came out on top, having become the first team to record revenue over one billion euros, at €1.161bn.