The chairman of Marks & Spencer has warned that Labour policies had driven the decline in Britain’s high streets. Writing in M&S’s annual report, Archie Norman said: “There has rarely in the history of M&S been a time where the regulatory environment has been less friendly to growth and investment and our tax burden increased substantially in the year.” His comments came as David McDowall, the boss of Britain’s biggest pub company, Stonegate, said the Government must review its policy decisions if it is serious about reversing this rise in youth unemployment. “We don’t lack the desire to hire young people; we lack the economic breathing room to do so,” McDowall wrote on LinkedIn. The criticisms mark the latest in a slew of warnings from business leaders that higher employment costs are making it more difficult to recruit young workers. Elsewhere, the Confederation of British Industry (CBI) warns that businesses are struggling to grow due to rising costs and red tape imposed by the Labour government. CBI deputy chief economist Alpesh Paleja said: “Businesses want to grow, but many are being forced to focus on resilience rather than expansion.”

The Confederation of British Industry (CBI) warns that businesses are struggling to grow due to rising costs and red tape imposed by the Labour government. CBI deputy chief economist Alpesh Paleja said: “Businesses want to grow, but many are being forced to focus on resilience rather than expansion.” A recent CBI poll revealed firms expect activity to decline, reflecting ongoing negative sentiment.

The UK’s manufacturing sector showed resilience in May, with the S&P Global purchasing managers’ index (PMI) rising to 53.9, surpassing April’s 53.7. This marks the highest production level in four years, with improvements in output, employment, and purchasing. However, Rob Dobson, S&P Global director, warned that this growth may not last, as it relies on front-loading purchases to counteract expected price increases and supply chain disruptions. James Brougham from Make UK noted that while results defy expectations, rising costs could still challenge businesses.

The Federation of Small Businesses (FSB) has urged the Government to reconsider business rates for small firms, as over 100,000 companies now face this tax for the first time. The FSB has requested an increase in the threshold for business rates from £15,000 to £25,000, arguing that this change would benefit businesses outside London. The FSB also pointed to issues with new calculations for shared office spaces, which have led to unexpected tax bills for many small enterprises. The Treasury said it has allocated £4.3bn to support businesses facing these increases.

The UK’s net zero economy now employs 1.1m workers and generated £105bn in economic value in 2025, according to a report by the Confederation of British Industry’s economics consultancy. The analysis points to the rapid growth of jobs and services aimed at achieving net zero emissions by 2050. Key roles include solar panel installers and electric car production engineers. Peter Chalkley, director of the Energy and Climate Intelligence Unit, said: “Thousands of small businesses across the UK are the unsung heroes of this net zero economy.”

Youth unemployment in the UK is projected to reach 18% by spring next year, according to the British Chambers of Commerce (BCC). The increase from the current 16.2% could add 79,000 young people to the jobless total, taking it to over 800,000. The BCC attributes the rise to higher taxes on businesses and inflation-driven wage increases. Vicky Pryce, chairman of the BCC economic advisory council, said: “Firms need greater certainty and stability to unlock investment and growth.” Separately, new polling by Opinium reveals that 33% of parents with children under seven have left jobs due to inflexible working conditions. The Trades Union Congress (TUC) warns that companies risk losing talent by not accommodating flexible work requests.

The London Stock Exchange is witnessing a surge in foreign acquisitions, with inbound deals reaching $169.8bn in 2026, surpassing the total for all of 2025. Companies like Schroders and Beazley are attracting international interest due to their low valuations compared to global peers. Claire Trachet, CEO of Trachet, noted the appeal of UK firms lies in their undervalued status and the gap between the FTSE 100 and S&P 500.

Cybercrime is now the risk business leaders feel least prepared to handle, according to a BDO survey of global executives. Around 40% of respondents ranked cyber-attacks as their biggest preparedness gap, ahead of inflation and geopolitical tensions. While businesses remain optimistic about the potential of artificial intelligence, concerns persist around data security, compliance and fraud.

OpenAI has granted nine major UK banks access to its cyber security AI tool, GPT-5.5 Cyber. The move comes as Anthropic’s rival tool, Claude Mythos, remains inaccessible to UK banks. Both AI models excel at identifying security vulnerabilities in digital systems. George Osborne, a former Tory chancellor and now a senior executive at OpenAI, commented: “The key things with these tools is that they need to be in the hands of the right people.” The banks gaining access include Lloyds Banking Group, HSBC, and Nationwide. NatWest and Santander already have access under existing agreements.

Deloitte has appointed Hayley McKelvey as its first chief AI officer in the UK. McKelvey, who has over 20 years of experience at Deloitte, will be responsible for “accelerating the firm’s progress towards becoming the leading AI-enabled professional services firm in the UK.” Three other roles have been created across technology and risk to support the AI expansion.