Patrick Diamond, professor of public policy at Queen Mary University of London, argues that Prime Minister Andy Burnham’s devolution agenda must include greater powers and funding for London because the capital remains central to the UK economy, generating more than a fifth of GDP and providing tax revenues that support public services nationwide. He says London’s growth has stagnated over the past 15 years due to the effects of the 2008 financial crisis, Brexit and wider global pressures. Mr Diamond argues that the capital needs a new devolution settlement, giving it powers comparable with Scotland and Wales. He calls for greater control over taxes including stamp duty, business rates, council tax and property-related capital gains tax, as well as allowing London to retain a share of income tax to fund infrastructure, housing and net zero projects.

UK investors withdrew £1.6bn from stock market funds in July amid growing concerns that the Government could raise taxes, according to fund network Calastone. The outflows marked the worst month for equity fund withdrawals since late 2025, when investors reacted to fears ahead of the Budget, and represented the fifth-largest monthly withdrawal in 11 years. Over the past year, investors have pulled a record £13.9bn from funds. Calastone said uncertainty over possible wealth taxes, higher capital gains tax, changes to pension allowances or an exit tax had unsettled investors. The firm also said previous tax changes, including the decision to bring pension pots within inheritance tax rules, were prompting some investors to withdraw money.

The UK’s construction sector remained in contraction in July, raising fresh doubts over the Government’s target of building 1.5m homes by 2029. S&P Global’s construction purchasing managers’ index improved from June but remained below the level indicating growth, while the housebuilding measure also stayed in contraction territory. Analysts said elevated construction costs, uncertainty linked to the Middle East conflict and weak business confidence continued to weigh on the sector. However, some economists argued the survey reflected subdued sentiment more than a sharp decline in activity. Elsewhere, the services sector returned to growth in July, while manufacturing activity eased slightly but remained in expansion territory, suggesting a mixed picture across the wider economy.

Retail footfall across the UK fell 2.1% year-on-year in July, although the decline eased from June’s 3.4%, according to British Retail Consortium data. High streets recorded the sharpest drop. BRC chief executive Helen Dickinson HAS urged the Government to reform business rates, arguing the current system penalises such investment.

Think-tank Bright Blue has proposed raising the top rate of income tax to 52% to fund workplace-style benefits for self-employed workers as part of a major overhaul of National Insurance (NI). The think-tank wants employer NI to be abolished and employee and self-employed NI rates to be brought together at the lower level currently paid by the self-employed. To cover the lost revenue, it proposes raising income tax rates, including introducing a new 13% band for earnings between £5,000 and £12,570, increasing the basic rate from 20% to around 31%, the higher rate from 40% to around 48%, and the top rate to 52%. The reforms would allow self-employed workers to access benefits such as Universal Credit, parental leave, sickness pay and state-funded pension contributions. Bright Blue argues that the current system leaves a £10bn tax gap because self-employed people pay substantially less in NI than employees. Conservative chairman Kevin Hollinrake has voiced concern that higher taxes on entrepreneurs would weaken incentives to start and grow businesses.

HMRC plans to introduce monthly tax payments for self-employed workers from April 2029 could force millions of taxpayers to pay the equivalent of two years’ tax within 14 months, experts have warned. Under the proposed system, self-employed people, landlords and those with investment or side-hustle income would move from the current system of two annual payments to a PAYE-style monthly collection method. However, during the transition period, taxpayers who already make advance payments could face overlapping bills. Around 3.6m people could be affected, as about 30% of the 12m Self-Assessment taxpayers currently make payments on account. The Association of Taxation Technicians warns that forcing the self-employed to pay two years of tax in 14 months could lead to significant cash flow issues.

A survey by Boring Money shows that just 7% of investors believe that Prime Minister Andy Burnham’s policies will benefit their own finances, compared with 50% who expect a negative impact. The biggest concern is potential changes to capital gains tax, cited by 76% of investors, followed by a possible wealth tax (64%), land and stamp duty reform (51%) and inheritance tax (50%). National Insurance changes concern around 4%. When asked which policies would benefit the wider economy, investors prioritised public spending and borrowing (67%), while 34% said potential tax rises.

Harbour Energy’s chief executive, Linda Cook, has called for tax breaks to revitalise the UK North Sea oil and gas industry, arguing that such support is “essential.” Suggesting that the North Sea “continues to have a vital role” in UK energy security, she said: “The key to realising that is going to continue to be the fact that we need a more supportive fiscal framework.” The North Sea oil and gas industry currently faces a 78% effective tax rate due to the energy profits levy.

The UK’s national debt has reportedly passed £3trn, according to analysis by the TaxPayers’ Alliance, highlighting the growing pressure on public finances. Office for National Statistics data shows that Britain’s debt stood at £2.99trn at the end of June. While official data for July have not yet been published, if public sector net debt increases by the more than £20bn seen in July 2025, the debt would pass the £3trn mark. In March, the Office for Budget Responsibility forecast that the national debt would breach the £3trn milestone in September. The TaxPayers’ Alliance estimates that the Government is now borrowing £4,270 every second, or £369m per day. The UK’s debt-to-GDP ratio has climbed to around 95%, compared with below 30% in 2004. John O’Connell, chief executive of the TaxPayers’ Alliance, who noted that the debt burden equates to around £103,000 per household, said: “Despite repeated warnings, politicians have allowed the national debt to run out of control.”

Companies House has intensified enforcement against directors who fail to meet filing obligations, with tougher penalties including business bans for serious or persistent offenders. In the first half of this year, 23 directors were disqualified for a total of 70 years due to serious non-compliance. Additionally, 360 directors faced prosecution for filing offences in the first quarter. Martin Swain, director of intelligence and law enforcement engagement at Companies House, said: “Prosecution ensures that where there has been a serious breach of the law, individuals are held to account.” Further changes are planned from April 2028, when around 2m small and micro companies will be required to provide profit and loss information for the first time.

EasyJet has accepted a £5.7bn takeover offer from US firm Apollo after rival bidder Castlelake dropped out. Apollo says it will look to support EasyJet’s growth and does not intend to cut jobs in the first year post-takeover. EasyJet founder Sir Stelios Haji-Ioannou, whose family still own around 15% of the business, said he supported Apollo’s aim “to create more growth,” while chief executive Kenton Jarvis said: “We welcome Apollo’s commitment to our business and our people.”

Thousands of investors have lost money in failed loan note schemes, with a Times investigation estimating third-party promoters earned more than £100m in commissions from two schemes alone. Regulators and insolvency practitioners have raised concerns over high commissions, misleading marketing and weak oversight, while several schemes have collapsed or are under investigation, leaving many investors facing substantial losses.