A survey of 200 UK business leaders by advisory firm DJH reveals widespread concern over the economic outlook under new Prime Minister Andy Burnham, with 75% fearing further tax rises. The poll also saw many firms cite higher employer National Insurance contributions and uncertainty over future tax policy as major pressures on their businesses. Shadow Chancellor Sir Mel Stride said Mr Burnham will look to “lurch to the left,” adding: “We all know what that means: higher taxes.” The report also highlighted broader challenges facing UK firms, including high energy costs, skills shortages and weak growth, with some manufacturers warning they are considering relocating operations to the US.

The top 10% of earners in the UK now contribute 58.4% of the country’s income tax, up from 50.3% at the start of the century, according to HM Revenue & Customs. To qualify for this bracket, individuals must earn £72,500 or more. Robert Salter from Blick Rothenberg commented: “There has been a lot of squeezing of the upper middle classes… eventually those people will say enough is enough.” The Treasury claims the UK’s income tax system is progressive, with the top 1% expected to contribute over a quarter of all income tax receipts. Mike Warburton, a former tax director for Grant Thornton, adds: “It may be politically expedient to raise more tax from the highest earners. However, we have reached the point where this is likely to be counterproductive, with the negative impact on motivation and investment together with top earners leaving the country.”

Research from Family Business UK (FBUK) shows that family-owned firms want new Prime Minister Andy Burnham to “address falling confidence, investment and employment.” They oppose a proposed 20% inheritance tax, fearing it could jeopardise generations of hard work, and have urged Mr Burnham and his Chancellor to “rule out increasing other taxes on business ownership, succession and investment,” such as capital gains and corporation taxes. Neil Davy of FBUK said Mr Burnham’s first 100 days in office “offer him a golden opportunity to embrace the power and scale of Britain’s family business sector.”

Praveen Gupta, UK head of tax at Azets, argues that the current tax system is hindering entrepreneurship, warning that “there is no incentive to set up, scale and sell a business in the UK.” Mr Gupta proposes a four-part solution, including raising the employment allowance to £50,000 and adjusting capital gains tax thresholds. He believes these changes would encourage hiring and investment, ultimately benefiting the economy. He also calls for a rolling two-year Employment Tax Roadmap to provide stability for business owners ahead of any changes.

The Government’s planned reform of late payment rules may lead to significant issues if not enforced properly, warns Philip King, a former Small Business Commissioner. The new legislation mandates large companies to pay smaller suppliers within 60 days and introduces penalties for non-compliance. Mr King, who highlighted that previous initiatives failed due to poor enforcement, has emphasised the importance of well-drafted regulations and accountability to ensure success. He said: “The issue is going to be how the regulations are written. If they are drafted well, they have a good chance of success. If they’re drafted badly, then there’s a car crash.” The Government has calculated that late payments cost the economy £11bn annually.

Andy Burnham plans to reinstate Jonathan Reynolds as Business Secretary, according to the FT. Reynolds previously held the position until last September and is expected to return as Burnham unveils his cabinet. Burnham says he will lead a “pro-business” government and reindustrialise Britain. Additionally, the Department for Business and Trade may expand, potentially rebranding as a “Ministry of Industry” and taking responsibility for science from the Department for Science, Innovation and Technology.

The International Monetary Fund (IMF) has advised the Bank of England to maintain current interest rates due to ongoing risks from the Iran war. In its annual assessment, the IMF cautioned against premature rate cuts, pointing to the need for a “sufficiently restrictive” monetary policy to prevent inflation from becoming entrenched.

The ongoing conflict in the Middle East has contributed to a significant increase in profit warnings among UK-listed companies, with 59 warnings issued in the first half of this year, up from 55 last year. According to the EY-Parthenon report, more than half of the warnings were due to policy changes and geopolitical uncertainty. Sectors like housebuilding, retail, and leisure have been particularly affected. London-listed housebuilding and construction firms posted eight profit warnings in the first half of 2026, including six in Q2. Jo Robinson, EY-Parthenon’s financial restructuring leader, said: “Pressure and profit warnings are increasingly concentrated in sectors and businesses facing rising costs, cautious consumers and tighter credit conditions.”

Marco Amitrano, senior partner at PwC UK, has warned that Britain risks losing its attractiveness as a business destination unless it does more to support entrepreneurs, innovation and investment. Suggesting that the UK lacks the culture and scale-up funding needed to produce business leaders on the scale of Elon Musk, he said successful people are often met with scepticism rather than celebration and warned: “I don’t think we are capable of creating a trillionaire.” Mr Amitrano added that higher taxes, stronger employment rights and political instability have caused overseas investors and wealthy individuals to question investing in Britain.

Burnout and mental health issues among small business owners in Britain have reached a three-year high, according to Virgin StartUp’s annual survey of 1,000 founders. Nearly 49% reported increased burnout, while one in three noted worsening mental health. The poll shows that rising costs from inflation and Government policies have contributed to the strain. It was also found that confidence is low, with only 40% feeling secure about their financial future, down from 51% last year.

The Financial Conduct Authority’s (FCA) new short-selling data has come under fire for inaccuracies. Reports indicate errors such as unexplained changes, duplicate entries, and outdated positions. Breakout Point’s analysis revealed that short positions against one company had vanished without explanation. Despite the issues, the FCA concluded there was “no need for any revisions” to the data, which relies on investor submissions.

Small business owners dedicate nearly twice as much time to paperwork as to growth activities, according to a report by Opinium for American Express. They spend an average of 11 hours weekly on admin tasks, equating to six working days monthly. In contrast, only three and a half days are spent on sales and development. More than half (54%) of small firms said that paperwork hinders their operations.