Fintech leaders in the UK remain optimistic about the sector’s future, with 94% believing it remains a good place to start and grow a business. However, Nick Murray-Leslie, co-founder of Chatsworth Communications, warns in a piece for City AM that alarms are ringing with leaders seeing significant risks to the UK’s competitive position from the likes of Singapore and Dubai. Competitive regulation, access to capital, support for scaling businesses and much greater urgency around technologies such as AI and digital assets are needed to ensure founders continue to believe Britain is the best place to build their company, Murray-Leslie concludes.

Mortgage rates in the UK have reached their highest levels in nearly five months, with the average two-year fixed rate now at 5.67% and the five-year fixed at 5.72%. The Bank of England’s Monetary Policy Committee is expected to maintain the current rate of 3.75% during its meeting on Thursday, but economists have begun pricing in potential hikes in November due to inflationary pressures.

John Healey, the Chancellor, has been urged to abolish the controversial “death tax” affecting family businesses. Industry leaders argue that reforms to inheritance tax, initiated by his predecessor Rachel Reeves, hinder economic growth. An open letter from over 200,000 UK businesses calls for the reversal of changes to Business Property Relief (BPR). The cap on relief at £1m has led to a 50% tax on assets above this threshold. Neil Davy, chief executive of Family Business UK, said: “Reversing these changes would send a powerful message that Britain wants businesses to stay here.” The letter was also signed by the bosses of UK Hospitality, the British Independent Retailers Association, Build UK and the Country Land and Business Association. It comes as former Labour minister Lord Blunkett said the tax on family farms was a mistake – a view echoed by former Tory Prime Minister Lord Cameron.

Writing in City AM, Chris Hayward, the policy chairman at the City of London Corporation, calls on the Chancellor to focus on growth in the upcoming Budget. He notes that the financial and professional services sector contributes £323bn to the economy and £110bn in tax, supporting 2.5m jobs across the UK. Hayward warns against further sector-specific taxes, pointing out that the UK’s tax rate for banks is already significantly higher than in other major cities. Any further tax raids will put the sector’s ability to continue to contribute record tax receipts in peril, Hayward warns.

The Bank of England is expected to slow its quantitative tightening programme as concerns grow over the impact of gilt sales on government borrowing costs. Economists predict the MPC could reduce the annual pace of quantitative tightening from £70bn to £50bn and halt sales of long-dated government bonds. The Bank recently estimated that quantitative tightening has added around 30 basis points to 10-year gilt yields. A decision will be announced alongside Thursday’s interest rate vote.

Goldman Sachs forecasts that the Bank of England will raise interest rates to 4% by November, driven by rising inflation expectations. The bank revised its inflation forecast for early 2027 to 3.9%, up from 3.3%. However, the bank’s forecasters held that rates would be kept at 3.75% when the MPC meets this Thursday.

The UK economy is hindered by a growing regulatory burden, impacting business investment. According to the British Chambers of Commerce’s Quarterly Economic Survey, only 17% of firms increased investment in Q2 2026, the lowest since the pandemic. Labour costs and taxation are major concerns, with 82% of firms anticipating negative impacts from the 2024 employer National Insurance increase. The BCC’s Cost Stack Calculator reveals a 71.5% rise in annual costs for firms over the past decade. Writing in City AM, David Bharier, deputy director of economics at the British Chambers of Commerce, commented: “Without discipline, the brake will stay on and business sentiment will keep flatlining.”

The UK Government is planning a public acquisition of Speciality Steel UK (SSUK) after rejecting a private-sector bid. Business Secretary Jonathan Reynolds said concerns over financing and taxpayer protections influenced the decision. SSUK, previously part of Sanjeev Gupta’s Liberty Steel, has been under the control of the official receiver since last August. Production has halted, affecting around 1,300 employees, many of whom are on furlough.

Nearly 40% of small businesses in the UK experienced a cyberattack in the past year, costing each around £27,000, according to Hiscox’s annual cyber-readiness report. This highlights the UK’s vulnerability, as only 29% of small firms globally faced successful attacks. The report underscores the urgent need for enhanced cyber resilience among small firms.