Shevaun Haviland, director general of the British Chambers of Commerce (BCC), has warned that the Government’s focus on resilience alone will not drive economic growth. She has urged policymakers to reduce costs for businesses, warning that many owners are questioning the effectiveness of current strategies. Ms Haviland highlighted that costs for mid-sized firms have surged by over 75% in the last decade due to Government policies. She added that October’s Budget “will be a pivotal moment and our message is simple: back business, cut costs [and] deliver growth.”

Data from the Insolvency Service shows that 11,926 individuals entered insolvency in England and Wales in July, marking a 14% increase from July 2025. The number of individual voluntary arrangements (IVAs) registered surged by 27% to 7,442. In the past year, 59% of personal insolvencies were IVAs, while 35% were debt relief orders and 6% were bankruptcies. Meanwhile, the number of registered company insolvencies hit 1,931, with this 5% higher than in June but 5% lower than in July 2025. Andy McGill, a partner at Azets, noted that many firms faced unsustainable costs, particularly in the retail and construction sectors, as they struggle with tight margins and rising expenses.

Job vacancies in the UK have fallen to their lowest level in over five years, reaching 707,000, according to the Office for National Statistics (ONS). Smaller businesses are cutting back on hiring due to rising labour and operating costs, exacerbated by the ongoing conflict in the Middle East. The ONS data shows that regular earnings – which exclude bonuses – were up 3.5% year-on-year in the three months to June. Public-sector wages grew by 6.1%, while private-sector pay increased by just 2.8%, its slowest growth in nearly six years. Unemployment remained at 4.9%, while the number of payrolled employees fell in June and July. Suren Thiru, chief economist at the ICAEW, commented: “The persistent slide in vacancies is a red flag for the jobs market.”

Long-term borrowing costs have risen across major economies because of concerns about inflation, high government debt and uncertainty over AI investment. The interest rate on US borrowing over 30 years has hit 5.33%, the highest since June 2007, while UK long-term debt has reached 5.85%. Rising oil prices, partly caused by tensions around the conflict in the Middle East, are increasing fears that inflation could return. As a result, investors are demanding higher returns for lending money, pushing bond yields higher.

HMRC overturned a record 48,189 tax penalties in 2025/26, with this 4% up on the previous year. The analysis shows that around 65% of the penalties that taxpayers appealed were cancelled. The figures have raised concerns about HMRC’s use of automated systems to issue penalties for missed Self Assessment, VAT and tax-payment deadlines. The HMRC data shows that the overall number of penalties issued has fallen from around 9.1m in 2024/25 to 8.1m in 2025/26.

By 2030, 44.6m people will be liable for income tax, an increase of 1.1m from previous Office for Budget Responsibility estimates. This rise is attributed to frozen thresholds, which pull more workers and pensioners into the tax net. The current tax year alone will see an additional 500,000 basic-rate, 410,000 higher-rate, and 70,000 additional-rate taxpayers. Average taxpayers will pay £640 more in 2026/27 than in 2024/25. Campaigners have described the freeze as a stealth tax that is disproportionately affecting middle earners and retirees.

Accounting groups have expressed concerns over a UK proposal from HMRC to impose criminal charges for reckless, untrue statements about direct tax matters. They argue that this could deter voluntary compliance and create confusion among taxpayers. The proposal aims to align direct tax law with existing indirect tax offenses. The groups believe the tax authority should utilise its existing civil and criminal powers instead.

A report from Onward suggests that Labour’s net-zero strategy could cost households an extra £540 a year, mainly because heavy reliance on wind and solar requires expensive pylons, cables, storage and other infrastructure. It argues that a mix of nuclear, gas and renewables could save Britain £320bn between 2030 and 2050, while still producing around 80% of electricity from clean sources.