Ryan Howsam, the founder of travel insurer Staysure, complains in a piece for the Times that the UK’s tax regime is driving wealthy individuals abroad. Pointing to the recent cases of wealthy business people relocating, Howsam, who was born in Sheffield but is resident in Dubai, says many entrepreneurs look at the UK as a much less favourable place to build businesses. The exodus of young talent is in some ways more dangerous than high-profile billionaires like hedge fund manager Chris Rokos leaving. Howsam argues that the current UK Government must adopt strategies to attract wealth, such as a digital nomad scheme or a flat-tax regime. Without change, the exodus of talent will continue, leading to higher taxes for those who remain.

UK banks reportedly sheltered £4bn from taxes last year, according to Jonathan Pierce of Jefferies. He suggested that banks could negotiate with Chancellor John Healey over their deferred tax assets (DTAs) to avoid a tax rise in the upcoming Budget. With banks currently facing a total tax rate of 46.6%, significantly higher than in Frankfurt and New York, Pierce proposed a five-year moratorium on DTAs in exchange for a Treasury guarantee, which could limit any tax surcharge increase.

Richard Walker, the executive chairman of Iceland, has urged Chancellor John Healey to reconsider tax policies that burden UK businesses. In an interview with the Mail’s Ruth Sunderland, he says: “Business and in particular UK retail is not an endless piggy bank that can be raided.” Walker pointed to the impact of rising National Insurance and minimum wage costs, which have cost the company about £40m. Looking ahead to the Budget, Walker said: “The Budget needs to take a longer-term view. We cannot undermine entrepreneurship, investment and employment.”

The UK economy experienced unexpected growth of 0.4% in July, surpassing forecasts of zero growth, according to the Office for National Statistics (ONS). The services sector, which accounts for 80% of GDP, led this expansion, driven by strong performance in computer programming and AI-related businesses. Liz McKeown, director of economic statistics at the ONS, noted that the World Cup had mixed effects on businesses. Commenting on the figures, Chancellor John Healey said: “Britain’s economy is demonstrating a welcome resilience, despite serious global uncertainty.” However, Yael Selfin, chief economist for KPMG, warned about the weak picture for households while the ICAEW’s chief economist Suren Thiru pointed out that muted growth and growing borrowing costs risk eroding Healey’s fiscal headroom, raising the prospect of further tax rises.

The Prosperity 2030 Alliance, led by Rick Haythornthwaite of NatWest, has identified five key issues hindering the UK economy: neglect, gridlock, discouragement, myopia, and powerlessness. Their report draws parallels with the Beveridge Report of 1942, pointing to a lack of investment and excessive regulation as major obstacles. A badly designed tax system serves to disincentivise investment, it adds. The report warns that without significant political investment and planning, the UK risks falling further behind other G7 nations.

UK manufacturers are reducing hiring as they await clarity from John Healey’s Budget. The proportion of factories planning to increase recruitment has fallen to 3% in Q3, down from 15% in Q2. This coincides with a 6.2% drop in vacancies, according to the Office for National Statistics. Fhaheen Khan, senior economist at Make UK, commented: “The sharp slowdown in recruitment shows that high employment, energy and regulatory costs are forcing firms to think twice before taking on new people.”

New data reveals a surge in entrepreneurship among Gen Z, with over 10% of company directors registered this year being under 25. The trend reflects both a booming side-hustle culture and a challenging job market. However, experts warn that many of these ventures may fail, or be abandoned the second the job market thaws out.

The UK Government is reconsidering planned minimum wage increases for young workers due to concerns about rising employment costs. Ministers are examining whether the rapid wage hikes have contributed to the youth jobs crisis, with nearly 1m 16 to 24-year-olds neither working nor studying. A government spokesperson explained that while they remain committed to closing the wage gap, they have asked the Low Pay Commission to consider employment opportunities in future recommendations. Alan Milburn, leading a review into youth worklessness, suggested that slowing wage increases may help persuade companies to hire young people more readily.

Benedict Smith warns in the Telegraph that a focus on getting young people into the workforce risks overlooking skilled and experienced over-50s. The Centre for Ageing Better found that almost a million over-50s struggled to find work at the end of last year, nearly the same number as those aged 16 to 24. Elsewhere, Fidelity International’s Longer Working Lives Index concluded that Britain is the worst country among G7 nations at supporting its older workers. Reflecting on the findings, former older workers’ tsar Baroness Ros Altmann said: “The Government needs to ensure age discrimination is taken more seriously, that older people’s skills are kept up to date and that recruitment is inclusive of older applicants.”

Paul Nowak, the general secretary of the Trades Union Congress (TUC), claims in an interview with the Times that the UK’s rising welfare bill is partly due to insecure jobs and zero-hours contracts. “We have a big chunk of our benefits bill that goes to subsidise crappy employment,” Nowak said. “It’s why a ban on zero-hours contracts is so important.” He went on to warn against further austerity measures and called for a review of the Office for Budget Responsibility’s role in economic growth.

A new report, Growth On Hold, from Enterprise Nation reveals that 90% of small business owners are concerned about their survival due to cash flow issues. Rising costs have led to empty shops and reduced staff. One in five shop owners are considering relocating abroad, while 75% have postponed growth plans. VAT has become the top financial pressure, surpassing wages for many.

AI is reshaping job prospects for UK graduates in computer science and economics, according to the Guardian University Guide 2027. The report reveals that the percentage of computer science graduates securing coding roles dropped from 40% to 28% last year. Matt Hiely-Rayner, director of Intelligent Metrix, commented: “With AI providing such responsive and cheap grunt work in this field, it’s hard not to conclude that this is behind the trend.” Economics graduates are also facing weakened job opportunities, as employers adapt roles to incorporate AI.

Former chancellor George Osborne has stated that Britain’s economy has significantly declined since Brexit. He suggested that rejoining the EU Customs Union could be the easiest solution to revive trade. Speaking in his role as chair of the British Museum, Osborne accused leaders across politics and business of ignoring Brexit’s economic consequences and insisted leaving the EU is not the end of Britain’s story with Europe.