Retail investors are losing confidence in UK-listed companies, according to a survey by InvestorHub and ShareSoc. Around 53% of investors reported concern over a lack of transparency in communications, while 48% flagged concerns over insufficient financial information and 45% noted a shortfall in forward-looking statements. Almost 4 in 10 (38%) said listed businesses do not provide frequent enough updates. When asked which area required the most improvement, 33% of investors said clarity of information, while 29% said transparency in reporting. Data shows that the number of UK-listed companies has fallen by more than half over the past decade, from more than 3,000 to around 1,500.

More than half of UK businesses plan to increase investment in AI over the next year, according to a Barclays survey of 900,000 firms. The report indicates that 68% of companies will invest in cybersecurity, while 54% expect overall investment to grow. Six in ten firms are already using AI agents, enhancing productivity by allowing employees to focus on higher-value tasks. However, it was also found that a fifth of companies may pause investment due to the conflict in the Middle East.

Sir Tony Blair has launched a strong critique of Sir Keir Starmer’s government, accusing Labour of lacking a “coherent plan” and pursuing policies that have undermined business confidence. In a lengthy essay, the former prime minister condemned measures including expanded workers’ rights, higher employer National Insurance contributions and the accelerated transition away from oil and gas. He argued such policies had created “headwinds not tailwinds” for growth and urged Labour to redefine itself as a “Radical Centre” focused on economic strength, welfare reform and technological innovation.

According to the Barclays Business Prosperity Index, 80% of UK firms are negatively affected by the conflict in the Middle East. A fifth of businesses are pausing investment due to geopolitical uncertainty and the report indicates that 64% of firms face rising energy costs, while 34% are struggling with increased shipping expenses. Matt Hammerstein, CEO of Barclays UK Corporate Bank, said: “Geopolitical instability and persistently high costs are feeding directly into cashflows, borrowing decisions and investment plans.” Despite challenges, 68% of firms plan to boost cybersecurity investment, and 61% are using agentic AI in operations.

High street sales fell below expectations in May, prompting retailers to reconsider investment and hiring plans. A Confederation of British Industry survey shows a drop in sales volumes, with the index balance declining from -32% to -35%. Retailers anticipate the fastest spending cuts in over a year, with employment growth also slowing.

Office for National Statistics data shows that London accounts for more than a third of the UK’s total corporation tax receipts, with the tax take from firms in the capital totalling £33.4bn in the 2024/2025 financial year. This is 36% of the £93.1bn total for the country as a whole. The data shows that the proportion has increased, with London accounting for 33% of corporation tax five years ago. London also generates about a quarter of total income tax receipts, contributing nearly £250bn to government revenue, but took less VAT than the South East of England. Analysis also shows that expenditure in London is lower than its tax receipts, meaning the capital had a fiscal surplus.

Wes Streeting’s backing of plans to align capital gains tax rates with income tax while introducing an investment allowance has split City advisers, with some warning it could trigger disruptive asset sell-offs and threaten economic stability. Supporters argue that the proposed reforms could boost entrepreneurship and raise billions for tax cuts elsewhere, though official forecasts suggest revenues remain highly uncertain. While the Labour Growth Group believes the reforms could generate £14bn, HMRC estimates suggest a £5.7bn dip in revenue.

Campaigners are urging the Government to ban zero-hours contracts, despite business leaders’ concerns about potential job losses. Groups including the TUC have written to the Department of Business and Trade, advocating for the implementation of new employment rights. A report by the Institute of Directors shows that 86% of business leaders believe the Employment Rights Act will have a negative impact on UK economic growth, up from 72% a year ago. Meanwhile, Lord Wolfson, chief executive of retailer Next, has warned that an upcoming ban on zero-hours contracts will make hiring more difficult. He has also called on ministers to reverse hikes to National Insurance contributions and the minimum wage.

Two-fifths of adults in the UK struggle with financial literacy, according to research from the Richmond Project, a charity set up by Rishi Sunak. The former Prime Minister warned that this hampers effective money management, affecting debt handling and retirement savings. The study, which surveyed over 10,000 adults, found that only 28% understood key concepts like compound interest and inflation, with the analysis suggesting that women are particularly disadvantaged.