Foreign investment in Britain’s energy sector has fallen to a 12-year low, with only 27 foreign-funded projects last year, according to EY. Oil and gas projects dropped significantly, from 16 to just three, as Labour’s policies, including a windfall tax, deterred investors. The industry also anticipates further tax increases in the upcoming Budget. EY’s survey revealed that high energy costs are the main concern for foreign investors while initiatives to encourage greater domestic energy production would be welcomed.

UK shop price inflation accelerated to 1.5% in August from 0.9% in July, reaching its highest level in two years, according to British Retail Consortium figures. Food inflation rose to 2.8% from 2.2%, with ambient food prices climbing 2.5% as higher energy, commodity and input costs increasingly filtered through supply chains. Fresh food inflation eased slightly to 3%. Non-food inflation increased to 0.9%, partly driven by higher electrical prices as booming AI demand pushed up memory chip and storage costs.

The number of pensioners paying higher income tax rates has doubled in five years, surpassing 1m this tax year, according to LCP. The additional rate taxpayers have tripled, rising to 115,000 from 39,000. The increase follows the decision by former Chancellor Rachel Reeves to extend the freeze on income tax thresholds until 2030/31. The higher rate threshold has remained at £50,270 since 2021/22. Steve Webb, former pensions minister and partner at LCP, noted: “Many people of working age may have expected that they would be basic rate taxpayers in retirement, but few will have expected to find themselves paying 40% or more out of their pensions in tax.” The Treasury estimates the decision to extend the income tax threshold freeze will generate £12bn in extra revenue.

Apple and Google are generating more revenue from their “app tax” on UK consumers than they contribute in corporation tax. In 2025, Apple paid £322m, while Google paid £146m in 2024. The “app tax” levied on in-app purchases is estimated to raise £700m annually, projected to increase to £1.2bn in five years. Commenting on the figures, former Tory tech minister Damian Collins said: “[Google and Apple] pay far less tax than they should compared to other UK-based businesses and still overcharge business and consumers for using their products. We need a new level playing field to stop tech firms from overcharging and underpaying.” The Mail notes that the Competition and Markets Authority is considering measures to ensure fairer pricing for consumers.

The Energy Competitiveness Unit (ECU) suggests that the UK government could reduce household energy bills by requiring older low-carbon power plants to return profits gained from carbon tax windfalls. The ECU’s report indicates that these plants benefit from increased electricity prices due to carbon taxes on gas plants. Implementing a “decarbonisation rebate” could save £7.3bn from 2027 to 2030, saving the average household an estimated £31 next year. A spokesman for the energy department stated: “We are pushing ahead with plans to break the link… with renewables setting the price more of the time.”

Tom Kerridge, a prominent chef, has urged Andy Burnham to introduce a permanent VAT cut for the hospitality sector. His plea follows the end of a temporary VAT reduction from 20% to 5% for children’s meals and family attraction tickets. Kerridge argues that the hospitality industry needs a lower VAT rate to survive and thrive, citing rising costs and competition from European countries with lower rates.

Dame Rachel de Souza, the children’s commissioner, has urged the Government to grant parents of seriously ill children 12 weeks of paid leave at 90% of their salary. Pointing to the immense pressure families face when balancing care and work, she said: “Parents should not be forced to choose between being at their seriously ill child’s bedside and keeping their job.” Additionally, she supports a “right to return to work” after leave and calls for unpaid carer’s leave to increase from five to 10 days. A consultation on family support reforms ends soon.

Global issuance of zero-interest convertible bonds is set for a record year, driven by AI companies attracting investors looking to gain exposure to the fast-growing sector. Dealogic reports $72bn in zero-coupon convertibles issued this year, nearing the previous record of $73bn for 2025. High borrowing costs have also provided an incentive for firms to seek innovative financing solutions, with zero-coupon bonds now accounting for 41% of all convertible issuance.

Labour has abandoned its 2024 manifesto commitment to restrict foreign buyers from purchasing new homes before completion. The policy aimed to give local first-time buyers priority but faced opposition from developers who argued it could jeopardise project viability. The Ministry of Housing, Communities and Local Government has downgraded the initiative to an “option” rather than a pledge. Gideon Amos, housing spokesperson for the Liberal Democrats, said: “Quietly dropping this commitment… will come as a bitter disappointment to the young people Labour promised to stand up for.” The Government said it continues to explore other measures to assist first-time buyers.

Chancellor John Healey has launched a new Sovereign AI R&D Procurement Scheme offering British start-ups the chance to propose projects to improve the delivery of health and other public services.

Ernst & Young is investing $100m in employee rewards to recognise those who leverage technology and enhance the firm’s culture. The initiative targets employees and teams demonstrating leadership, innovation, and experimentation with technology.

Consultants are coming under pressure as companies leverage AI to reduce costs, the FT reports, demanding lower fees or shifting work in-house, impacting traditional consulting roles and revenues.