The Government is reportedly considering tax breaks for small businesses in over 280 areas under the “Pride in Place” scheme. This initiative could provide a “holiday” on business rates and is targeting regions identified as deprived or cohesive. Funding through the scheme, totalling £5.8bn, will be managed by local boards, allowing them to invest in community assets. The Treasury and the Ministry of Housing, Communities and Local Government are said to be in discussions over the plans.

Permanent hiring has fallen to its lowest level in 10 months, according to research by KPMG and the Recruitment and Employment Confederation. Permanent hiring came in at 44.1 in May, the lowest figure since July last year, on an index where a reading below 50 signals contraction. The report shows that companies are increasingly opting for temporary workers due to low confidence in the economy, with the conflict in the Middle East pushing up inflation. Shop worker roles have been particularly affected, with high street businesses hit by higher minimum wage costs, taxes and energy bills.

Liz Kendall, the technology secretary, has said Labour is committed to ensuring artificial intelligence (AI) benefits workers and pledges to support those whose jobs are lost due to AI advancements. Speaking ahead of London Tech Week, Kendall said: “We have got to make sure that everybody has got a chance to seize the opportunities from AI, and that means making sure the people and places that most need a decent shot at life, get the chances and choices they deserve.”

The British Retail Consortium is urging the Labour Government to reconsider strict new rules on zero hours contracts under the Employment Rights Act. A survey by the trade body found that two-thirds of part-time workers took zero hours jobs because of the flexibility they offer. The BRC’s Helen Dickinson said: “Flexible and part-time work is how millions of people make employment work for them… It’s vital that we don’t regulate flexible jobs out of existence.”

Over half of UK businesses plan to increase prices due to the Middle East energy crisis, according to data from the Bank of England. In May, 57% of finance directors indicated they would raise prices in response to rising global energy costs. However, this is down from 64% in April. Nearly a third of the 2,086 surveyed directors expect the conflict to lead to job losses. Additionally, 46% anticipate a decline in sales volumes due to reduced consumer spending power.

The International Monetary Fund (IMF) may need to step in and provide emergency aid to Britain as the chances of the country falling into a debt crisis grows, according to leading economists. Former IMF chief economist Ken Rogoff suggests repeated shocks now mean there’s a 50:50 chance of a crisis by 2030 while former OBR official Sir Charlie Bean agrees there’s a “material risk” that the IMF will need to intervene. The warnings come as Britain’s overall debt pile is on course to hit £3tn this September, as the overall debt share heads towards 100% of GDP. A Treasury spokesman described the assessments as “completely untrue”.

Tech stocks have experienced significant declines globally, driven by concerns over inflated valuations in the AI sector. Shares in Asia, Wall Street, and Europe fell sharply with shares in chipmakers and memory groups selling off sharply. Analysts said the market was overbought and positive US jobs figures triggered bets that the Federal Reserve will raise rates this year, sending short-term borrowing costs higher. Bitcoin also faced its worst week since the FTX collapse, declining 15%.

Ruth Sunderland in the Mail says annual reports are becoming increasingly lengthy and complex, raising concerns about their usefulness for investors. The average report now spans 152,000 words, with a 27% increase in word count since 2019, according to the Quoted Companies Alliance.

Less than 17% of small businesses in London currently utilise AI tools, according to City Hall. Despite the potential benefits, 80% of businesses have no plans to adopt AI, citing concerns over costs, regulation, and a lack of understanding as major barriers. In response, London Mayor Sadiq Khan has announced a £12m investment to support AI adoption by SMES over the next three years.

The UK Government plans to announce a £100m funding boost for BridgeAI, a service connecting businesses with artificial intelligence developers. The initiative aims to accelerate AI adoption across the economy, with hopes of achieving the fastest rate in the G7. The funding will extend the programme until 2029 and includes an additional £50m for AI growth zones and another £50m for expanding tech towns.

Interest in panic rooms, bunkers and emergency shelters is increasing in the UK and across Europe as concerns about war, civil unrest and potential nuclear or chemical threats intensify. Bunker companies report a sharp rise in inquiries since the COVID-19 pandemic, Russia’s invasion of Ukraine and the recent conflict involving Iran. While high-end bunkers remain expensive, industry figures say demand is broadening beyond wealthy clients.