The Organisation for Economic Co-operation and Development (OECD) has downgraded the UK’s economic growth forecast for 2027 to 1%, down from 1.1%. The adjustment is attributed to the ongoing conflict in the Middle East, which has raised global oil and gas prices. However, the OECD upgraded the 2026 growth outlook from 0.9% to 1.1%, citing strong domestic demand. The OECD warned that rising borrowing costs underlined the need to rein in spending, improve public sector efficiency and strengthen revenues. However, the Paris-based group added that the Bank of England does not need to raise interest rates as policy is tight enough to keep inflation in check with a quarter point predicted for Q3 2027. The advice comes as IMF chief Kristalina Georgieva urged advanced economies to reduce debt levels amid spiralling global borrowing costs.

UK consumer confidence has fallen, with the British Retail Consortium’s index dropping to -34 in September from -28 in August. The decline follows four months of improvement, with households becoming increasingly concerned about their finances and reluctant to increase spending in shops. Speculation over potential tax rises in the upcoming Budget has intensified as economists warn of a deterioration in the UK’s fiscal position.

Senior bankers have expressed concern that the UK is losing its status as a global financial hub. A survey by UK Finance and Norton Rose Fulbright revealed that many executives would not choose the UK as their base if starting anew. The survey, involving 14 international banks employing around 35,000 people in the UK, highlighted fears of increased taxes on lenders. UK Finance points out that the total tax rate for banks in London is significantly higher than in Frankfurt and New York. UK Finance chief David Postings said: “I think already we’re very highly taxed. To go further than that, I think, would reach a tipping point and would be very risky on the part of the Government.”

HMRC is increasing its oversight of ultra-wealthy individuals with assets in the UK. The tax authority has sent letters to these individuals and their accountants, assigning dedicated tax compliance managers to ensure they fulfil their tax obligations. The move follows criticism from the Parliamentary Public Accounts Committee, which accused HMRC of failing to provide transparency about the tax paid by the wealthiest people. Charlie Sosna from Mishcon de Reya said the letters were “requesting all information up to inside trouser leg measurements”. He added: “Clients are wary that once HMRC starts pulling at a thread, they don’t stop.” An HMRC spokesman said: “We want to help all customers get their tax right, including the UK’s wealthiest people.”

The Big Four firms – KPMG, Deloitte, EY, and PwC – are transforming their graduate training programmes in response to AI advancements, City AM reports. With automation taking over basic tasks, graduates are now engaged in more complex work earlier in their careers. Marc Burrows, chief people officer at KPMG UK, said graduates will become “more involved in reviewing and exercising judgement” while EY talent leader Anne-Marie Balfe explained how “skills such as problem-solving, critical reasoning and the ability to work effectively in teams” are becoming even more important.

GB Bank has relaunched its commercial investment lending proposition, increasing the maximum loan size from £20m to £25m. The bank offers up to 65% loan-to-value (LTV) for retail units, office buildings, and mixed-tenancy properties. Brokers can access a dedicated team for complex cases, allowing for both bridging finance and longer-term lending. The proposition is available across mainland England, Scotland, and Wales.

US President Donald Trump is considering a 90-day ban on diesel exports to combat rising prices, according to a report by Politico. This would mark the first restriction on American energy exports in over a decade. But Energy Secretary Chris Wright and other officials oppose the ban, arguing it could lead to increased gasoline and jet fuel prices. Industry experts warn that such a ban would severely impact the UK, which relies on the US for a third of its diesel imports. Analysts predict that prices could quickly rise above £2.50 per litre, affecting transport costs and potentially leading to shortages of goods.

Bentley Motors has announced a £350m investment to develop its first fully electric vehicle, the Torcal, at its Crewe headquarters. This contributes to a total of £1.02bn invested in the UK automotive sector in the past week, following investments from McLaren and Nissan.