Prominent business leaders have joined a campaign urging the Government to halt the “creep” of tax rises on entrepreneurs, warning that higher taxes on dividends, capital gains and business assets are deterring investment and job creation. In an open letter, signatories including billionaire political donor John Caudwell and retail veteran Lord Rose criticise Labour’s tax hikes on dividends and capital gains. The letter warns that a “steady creep of tax rises and reductions in entrepreneurial reliefs is making it harder to build and scale a business in the UK.” Separately, the Institute of Economic Affairs has warned that taxes on investment have risen by 10 percentage points since the 2008 financial crisis, while the growing complexity of the tax system and a heavier burden on personal incomes are further weakening incentives for enterprise and growth.

Andy Burnham has refused to rule out tax rises in the Budget, warning that the public finances are in a “challenging” state. While the Prime Minister said previously announced measures, including scrapping VAT on electricity bills and restoring the £2 bus fare cap, would be funded by reprioritising spending, he left the door open to further tax increases, saying future measures would be carefully considered and fully funded. Mr Burnham has pledged to stick to Labour’s manifesto commitment not to increase income tax, VAT or employee National Insurance, meaning Chancellor John Healey has a narrower range of options for raising revenue. Asked whether he would need to fill in spending gaps with tax hikes, the PM said: “I will always take a careful approach to things.” Shadow Chancellor Sir Mel Stride said that Mr Burnham is “staring down the inevitable barrel of tax rises.”

The Trade Union Congress (TUC) is calling for a bank windfall tax ahead of the October Budget, with polling showing that 65% of the public support taxing banks’ excess profits. The TUC has suggested that an existing 3% profit surcharge could rise to at least 8%, on top of the 25% corporation tax rate, which it estimates would raise £9bn over four years. A 16% surcharge could raise £24bn, while a 35% rate could generate up to £60bn. Banks have warned against higher taxes, with JPMorgan chief executive Jamie Dimon saying that higher levies could push lenders overseas. UK Finance, which says the sector paid £43bn in taxes last year, has warned hikes would “reduce UK competitiveness.”

Plans to reform zero-hours contracts may hinder job opportunities for young people, according to industry leaders. The Government aims to provide guaranteed hours and notice for shifts, but organisations including the British Retail Consortium, UKHospitality and the British Chambers of Commerce warn this could worsen the jobs crisis. The Government’s impact assessment estimates the changes could cost employers up to £3bn a year through higher staffing and administrative costs, lost revenue and reduced flexibility. CIPD research found that 65% of employers using zero-hours contracts expect higher HR and management costs, while 31% anticipate possible redundancies. A further 33% expect to increase their use of self-employed, temporary or casual workers.

The graduate job market has reached a record low, with vacancies plummeting 45.6% to 8,383 in the year to July, according to Adzuna. Employers cite rising employment costs and the shift to AI for entry-level tasks as key factors for the decline. Non-graduate entry-level roles are also down, with vacancies falling 8% to 192,864 in the year to July. Overall, job vacancies in the UK fell by 9.6% to 791,490. Salary growth is also continuing to slow, with the average advertised salary having fallen 0.73% since May, hitting £43,675 in July.

Resolution Foundation analysis indicates that UK productivity is improving more than official data suggests. The study claims output per hour rose by 1.1% over the past two years, while official figures show a 0.2% decline. The report suggests that productivity gains are not due to an AI boom or sector shifts, but rather consistent performance from the same workers in the same jobs. Simon Pittaway, principal economist at the think-tank, said: “While official figures suggest that the output of workers has worsened, our measure shows improvement.” The findings align with recent data showing the UK as the joint fastest-growing economy in the G7 for the first half of 2026.

The Government has been criticised for taking a “piecemeal” approach to business rates reform, with experts suggesting that the plans fail to uphold a pledge for a comprehensive overhaul. The Government has initiated a review of property valuations affecting pubs and hotels. However, industry leaders argue that the review is too narrow, with it excluding retailers and restaurants. Jonny Haseldine from the British Chambers of Commerce said the review of valuations “should be wider, and cover every sector,” adding: “This continued piecemeal approach to reform is the wrong approach.” The Real Rates Reform Alliance has called for a broader solution, arguing that the planned review is “narrowly focused.”

Analysis by FICO shows that average credit card spending increased by 5.6% to £835 in June. The average active balance increased 1.4% to a record £1,975, marking a 4.7% increase on a year earlier, while the proportion of balances repaid fell 2.4% month-on-month to 33.3%, with this 4.4% below June 2025. Missed payments also rose year-on-year: accounts one payment behind increased by 7.7%, while two-payment delinquencies rose 9.1%, and those three payments behind jumped 14.3%. Average credit limits increased by 0.2% month-on-month to £5,985, with this 2% higher year-on-year.

Lending by European private credit firms reached a record €63.2bn (£54.1bn) in the first half of the year, according to Debtwire. This surge was driven by private equity firms refinancing their portfolio companies’ debt amid a slowdown in exits. However, the second quarter saw a 25% decline in lending to €28.4bn, as large firms opted for cheaper public debt markets.

Mayor of London Sir Sadiq Khan has told developers not to remove mobile antennas without arranging replacement coverage, as redevelopment contributes to poor signals across the capital. Bottlenecks are particularly common near busy rail and Tube stations and in areas including the City, Westminster and Tower Hamlets. Operators say alternative antenna sites can take between two-and-a-half and seven years to secure after receiving notices to quit. Khan’s draft London Plan classifies mobile connectivity as essential infrastructure and requires it to be considered from the beginning of new developments.