Job losses have impacted eight sectors identified as high-growth in the UK Government’s industrial strategy. The annual report from the former Department of Business and Trade revealed a 0.6% decline in employment in 2025 compared to 2024. Shadow business secretary Andrew Griffith described the figures as “damning,” attributing the decline to Labour’s policies. The report also noted that productivity increased by 3% across these sectors, despite rising unemployment, which reached 4.9%. A government spokesperson claimed the industrial strategy is attracting significant private investment and could create over 1m jobs by 2035.

Andy Burnham has insisted that he is “not considering” scrapping stamp duty or council tax, following speculation that he might replace them with property-based taxes. Downing Street labelled these reports as “not true” and “pure speculation” after being warned such policy leaks could cause market distortion ahead of the Budget. A report in The I claimed the Prime Minister was looking at replacing council tax and stamp duty with an annual tax of 0.48% of the value of a property. Second homes would incur a 0.96% surcharge. Simon French, chief economist at Panmure Liberum, warned that such speculation could freeze property transactions. A spokesperson from Downing Street reiterated that tax decisions are for the Chancellor to announce at the Budget.

Downing Street failed to deny on Monday that Andy Burnham would introduce a 10% “death tax” on all estates to fund his social care reforms. The Prime Minister previously proposed the policy when health secretary under Gordon Brown and his spokesman said Burnham had been clear about his determination to tackle the issue of social care funding. Commenting on the news, Sir Mel Stride, the shadow chancellor, said Labour should cut the welfare bill instead of imposing more taxes on “people who have worked, saved and invested to leave a legacy for their children.” Writing in the Sun, Reform UK’s Nigel Farage said that although elderly people deserve better care, “proposing a new way to take money from people’s estates sends entirely the wrong message. It tells people that no matter how hard they work or how carefully they save, the state will always come back for more.”

Investors are increasingly concerned about potential tax hikes, prompting calls for clarity from Chancellor John Healey. Michael Summersgill, CEO of AJ Bell, urged Healey to confirm that pension taxes will remain unchanged to prevent retirees from withdrawing funds prematurely. He noted that speculation has already led to £10bn being withdrawn earlier than planned. Summersgill said: “All that is needed is a clear commitment from the Chancellor that key retirement savings incentives…will not be altered.” The uncertainty is affecting investment in British firms and could have broader economic implications, he added.

Andy Burnham is expected to announce plans to strengthen links between schools and local labour markets as part of wider efforts to reduce economic inactivity and welfare spending. Proposals include adapting the curriculum for pupils aged 14 and over to reflect the skills needs of local employers, with councils, combined authorities and other local leaders helping identify priority sectors. Further reforms under consideration include devolving post-16 skills funding and greater local control over employment support. Ofsted will also change the way it grades schools so they are given greater credit for offering technical courses and preparing their students for the world of work.

UK pension providers have announced plans to launch a new UK Scale-up Fund to invest in high-growth science and technology firms. The fund aims to provide significant capital for UK businesses to expand and create skilled jobs, supporting economic growth. The venture has backing from the British Business Bank and support from the Government’s Office for Investment. Prime Minister Andy Burnham and other officials endorsed the initiative, arguing that it would help reindustrialise Britain and keep profits within the UK. Leaders from major pension funds, including Railpen, Nest, and LPPI, highlighted the fund’s role in linking institutional capital with UK innovation.

Mid-tier audit firms are capitalising on the Big Four’s retreat from London’s junior market. According to the Adviser Rankings report, the Big Four’s client base in the FTSE Alternative Investment Market (AIM) 100 has dropped from 49 to 30 clients over three years. BDO and Grant Thornton have gained significant new clients, with Grant Thornton doubling its count in the FTSE AIM UK 50. City AM notes that the Financial Reporting Council’s push for higher audit quality has led the Big Four to purge higher-risk clients, reshaping the market.

Households in northern England had an average of £202 a week of disposable income after essential spending during the second quarter of 2026, compared with £262 in southern regions, according to Asda’s latest Income Tracker. The report highlights continuing regional disparities in household finances, with London recording the highest disposable income. Asda said the findings reflect differences in earnings, employment and living costs, while warning inflationary pressures could widen regional inequalities.

Kanishka Narayan, the UK AI Minister, is advocating for increased visas for top engineers to support domestic tech growth. In an interview with the Financial Times, he pointed to the need for Britain to retain economic value and jobs from tech companies. Narayan’s proposals include a dedicated AI visa stream and reimbursement of visa fees for overseas recruits.