Nearly 50m people in the UK could find themselves in the higher tax bracket unless Government spending is controlled, according to the Office for Budget Responsibility (OBR). The report warns that if tax thresholds remain frozen, two-thirds of earners may pay the higher rate of 40% by the late 2060s, with even a full-time worker on the National Living Wage becoming a higher-rate taxpayer. The watchdog warned that relying on tax rises alone to manage rising costs from pensions, healthcare, defence and Net Zero would create economic risks by increasing tax burdens and reducing incentives to work. It also noted that the UK’s tax-to-GDP ratio is expected to rise from 37% in 2019/20 to 43% by 2030/31.

Paul Taylor, the founder of fintech unicorn Thought Machine, has cautioned that excessive regulation and taxation could deter entrepreneurs from starting businesses in the UK. He described a proposal that would align capital gains tax with income tax as “profoundly unfair,” arguing that such a move would discourage investment, and said the UK market is “anachronistic” due to stamp duty. Mr Taylor has suggested that venture capital investors should receive capital gains tax holidays to foster a more positive environment for tech IPOs.

With it suggested that Labour leadership frontrunner Andy Burnham could increase the top income tax rate from 45% to 50%, experts warn that this could drive high earners abroad. Mike Hodges from Saffery said: “The most recent experiment with a 50% top rate of income tax… wasn’t a conspicuous success and should probably serve as a warning for any future Chancellor.” With workers having brought forward income to reduce their exposure to the incoming rate rise last time around, Nimesh Shah of Blick Rothenberg said this would happen again.

Part-time hiring in the UK has reached a three-year high, with the KPMG and Recruitment and Employment Confederation index rising to 52.7 in June. This increase reflects cautious employers responding to rising demand without committing to permanent hires. Although permanent hiring remains low, the decline is easing. Unemployment rose to 4.9% in the three months to April, while pay growth has stalled, with average increases at 3.5%. Lisa Fernihough, advisory vice-chair at KPMG UK, said: “Although permanent placements are still falling, the pace of decline is easing and back to a rate we were seeing before the Iran conflict put a pause on active recruitment for many companies.”

Workers in London are most at risk of job losses due to AI, according to a new report from the Organisation for Economic Co-operation and Development (OECD). The study reveals that three quarters of jobs in the capital are “highly exposed” to AI, meaning that more than half of the daily tasks involved can be performed by the technology. The report also found the UK is lagging behind the EU, US, Canada and Australia in growth of AI hiring, while vacancies in AI-exposed occupations have fallen since the pandemic. It is noted that the Big Four accountancy firms are cutting junior employee numbers, saying AI can tackle certain tasks that would typically be done by graduates.

The Office for Budget Responsibility (OBR) has warned that rising pension costs will inflate UK public debt to 300% of GDP by 2075, up from 270%. Currently, public debt stands at nearly £3trn – around 95% of GDP – but the OBR has warned that it could move on to “an unsustainable and ever-rising path.” Spending on state pensions is projected to increase from around 5% of GDP today to 9% within 50 years, with the triple lock accounting for a significant share of the increase. The OBR said that while tax revenues are expected to reach record levels by the end of the decade, this may not be enough to offset rising spending pressures. It also warned that future governments could face difficult choices over taxes and spending, with measures such as freezing tax thresholds helping raise revenue while receipts from energy-related taxes decline as the economy moves towards net zero.

The Bank of England is planning to relax capital rules for major UK banks to encourage lending and support economic growth, but it has warned that weaker safeguards could increase financial stability risks. Proposed changes would remove a leverage ratio buffer introduced after the 2008 financial crisis, with this primarily benefiting large lenders by reducing the capital they must hold.

The London Stock Exchange recorded seven new listings in the first half of the year, generating £577m, analysis by EY-Parthenon shows. This marks an increase from £183m raised last year, although it remains low compared to historical averages.

Premier League clubs reported a pre-tax loss of £948m for the 2024/25 season, a 600% increase from £135m the previous year, according to Deloitte’s Annual Review of Football Finance. The report attributes this rise to increased transfer spending and a lack of significant profits from one-off sales. Net debt among Premier League clubs rose to £3.6bn, up from £3.5bn. In the Championship, pre-tax losses increased by 12% to £355m.