City leaders have expressed concern over potential tax increases in the upcoming Budget, urging the Chancellor to simplify the UK’s complex tax system. TheCityUK pointed to the need for tax reform to enhance competitiveness, with chief executive Miles Celic stating that financial services already contribute significantly to tax revenue. He warned that the current stamp duty on shares hampers investment and makes the UK an international outlier.  “In a world of cut throat competition for investment, Britain needs to remain competitive,” Celic added. “This isn’t solely about the rates of tax. The UK is now shackled with the most complicated and Byzantine tax system in the OECD. This is a major cost to business and a drag on competitiveness.” Research by Tax Policy Associates suggests abolishing stamp duty on shares would have the largest growth effect compared to any other tax cut.

Only 10% of the wealthiest 0.01% pay the top income tax rate of 47%, according to the Centre for Analysis of Taxation (CenTax). The report states that a quarter of this group pays an effective tax rate of 20% or less, largely due to income from capital gains, which are taxed at lower rates. CenTax recommends equalising capital gains and income tax rates in the upcoming Budget, potentially raising £19.7bn by 2030. Andy Summers, the director of CenTax, said: “The assumption that our tax system is already steeply progressive only holds for some top earners and is frequently not true at the very top.” The report also called for employer national insurance contributions to be applied on partnership profits at LLPs, a move Robert Salter at Blick Rothenberg said would be “quite controversial”.

John Healey’s proposed tax cut for high street businesses may not benefit firms in central London, particularly in areas like Soho and the West End. The plan involves raising the small business rates relief (SBBR) threshold from £12,000 to £17,096. However, analysis shows that only 3.8% of Westminster premises would qualify. Alan Fang, creator of knowyourrates.co.uk, said: “Raise the threshold and you help the parade in Sutton and do almost nothing for Soho.” Industry leaders argue that more comprehensive measures are needed to support central London businesses.

The British Business Bank and NatWest have formed a partnership to invest in Phoenix Court, a leading venture capital firm. The British Business Bank will contribute £50m, while NatWest’s investment marks its first venture capital involvement. Other investors include HSBC and M&G, with total investments expected to reach several hundreds of millions.

UK borrowing reached £18.3bn in August, exceeding the Office for Budget Responsibility’s forecast by £3.5bn as inflation lifted public-service costs and debt-interest payments faster than tax income. The figures add to the pressure on John Healey before his first Budget, with the Chancellor likely to have lost at least £12bn of his £23.6bn headroom. Middle East-driven energy uncertainty and inflation fears have pushed bond yields higher globally, with UK borrowing costs the highest among G7 countries. “Another round of tax rises in October now looks inevitable,” said Thomas Pugh, chief economist at RSM UK.

Three-quarters of UK super scalers could create at least 10% more jobs if barriers were removed, according to a survey by Enterprise Britain. Rising hiring costs and difficulties in recruiting talent are major constraints for these fast-growing companies. The survey revealed that 93% of leaders plan to increase headcount, yet 71% believe Britain’s risk aversion hampers growth. The group calls for reduced notice periods and a ban on non-compete clauses to facilitate talent movement.

Andy Burnham has warned that planned EU measures favouring European manufacturers could harm UK industry and supply chains. The proposals would prioritise EU firms for public contracts and subsidies to counter Chinese competition. The Prime Minister plans to raise concerns with European Commission President Ursula von der Leyen at a UN summit.

Lloyds Banking Group has called for enhanced climate resilience in the UK’s ageing infrastructure, arguing that a significant investment shortfall hampers the ability of national systems to cope with increasing climate challenges.

The Institute for Fiscal Studies warns that Ed Miliband’s target to decarbonise the electricity grid by 2030 could exacerbate energy price hikes. In a report, the think tank urges the Government to soften the deadline, arguing this would reduce pressure on households as the costs of achieving net zero rise sharply. The Telegraph notes that the National Audit Office (NAO) earlier this month warned that Labour’s 2030 goal was adding £1.9bn per year to bills.

Super-rich individuals are cancelling private club memberships in the UK due to fears of HMRC tax investigations. Changes to non-dom rules, effective from April last year, reduced the tax exemption period from 15 years to four. Many members living abroad, particularly in cities like Dubai and Milan, are concerned that their club attendance could trigger scrutiny of their residency status.