Labour’s proposed crackdown on zero-hours contracts under the Employment Rights Act could cost businesses between £350m and £2.9bn a year, depending on the agreed hours threshold. The Government’s own analysis suggests approximately £1.2bn of these costs stem from new requirements to compensate workers for cancelled shifts. The British Chambers of Commerce said the new figures significantly exceed the previous £1bn estimate for the entire employment reform package. The BCC and CBI have called for a “proper tripartite negotiation” between government, unions and business on how to implement any proposals.

Research from Robert Walters forecasts that 90,000 bankers, lawyers and accountants will leave London by 2031 due to high living costs and a push for regional economic growth. Manchester, Leeds, and Birmingham are expected to absorb over half of these jobs, with the North West gaining 15,000 to 22,500 positions, boosting the local economy by £2.3bn. Overall, the shift could contribute £9bn to regional economies as white-collar workers migrate.

New modelling by the Institute for Public Policy Research (IPPR) suggests that children and young people may see nearly 50% of their taxes spent on servicing government debt by 2075. The report indicates that debt interest payments could account for about 21.3% of total government revenue in a likely scenario, with a worst-case scenario reaching 47%. William Ellis, a senior economist at IPPR, said: “Fiscal plans should be held to account on the debt servicing ratio.” Current debt interest payments are projected at £110bn, nearly double the defence budget.

The Prime Minister has said he will look at bringing in more business rates relief for high street businesses ahead of the Budget on October 28. Andy Burnham announced 20% relief for pubs and similar venues upon taking office. However, Burnham pointed out that he has “limited room for manoeuvre” when it comes to reform.

Andy Burnham has been warned that the UK economy may grow by only 0.3% in 2027 if disruptions in the Strait of Hormuz persist. Treasury modelling indicates a bleak outlook, with inflation expected to rise from its current rate of 2.6% to a peak of 4.3% early next year.

The housing market is facing significant challenges as estate agents report a decline in buyer inquiries, sales, and house prices, according to the Royal Institution of Chartered Surveyors (Rics). A net 28% of agents noted a drop in inquiries, while 30% reported falling sales. Factors such as geopolitical tensions, rising mortgage rates, and uncertainty over potential tax changes are contributing to this sluggishness. Most agents expect further declines in prices and sales over the next three months.

Scotland’s public spending deficit decreased by £600m last year to £25.3bn, according to the Government Expenditure and Revenue Scotland (Gers) report. Tax revenue rose by £6.3bn to £98.3bn, a 6.9% increase, while expenditure grew by £5.7bn to £123.6bn, a 4.8% rise. The report highlighted significant revenue increases from national insurance contributions and income tax. However, North Sea oil and gas revenue fell for the third consecutive year, dropping to £3.9bn. Spending per person in Scotland was £22,281, exceeding the UK average by £2,720.

Accountancy firms are investing heavily in AI but neglecting security, exposing themselves to cyberattacks. A report by Fastly reveals that over 75% of AI-first businesses take 80 days longer to recover from security incidents. Nearly half of these firms reported AI being exploited in their latest breaches, averaging 54 incidents annually. Marshall Erwin, chief information security officer at Fastly, said: “Cyber criminals target accounting firms for the privileged access to sensitive financial information they hold.”

Warner Bros will open the UK’s largest Harry Potter shop on Oxford Street on 4 November. Spanning over 21,000 sq ft, the store will feature attractions inspired by Diagon Alley, including a dragon over Gringotts bank and a full-sized Knight Bus.