The Confederation of British Industry reveals in a survey published today that private sector firms saw falling activity in the three months up to September, with activity expected to continue to decline for the rest of the year. Much of the decline was driven by retail and services, with manufacturing falling off more moderately. CBI deputy chief economist Alpesh Paleja said rising energy and employment costs combined with weak demand were continuing to put pressure on profit margins. He added: “Uncertainty ahead of next month’s Budget is also holding back activity in some sectors. Against the backdrop of renewed fiscal pressures, the Budget must draw a clear red line under any more rises in the cost of hiring, investing and doing business.”

Nick Stowe, the CEO of Monsoon and Accessorize, has warned that rising costs from Labour’s policies threaten jobs and investment. He claimed that the company has reduced its new store openings this year due to these financial pressures. He urged Chancellor John Healey to cancel planned business rate hikes in the upcoming Budget, arguing that the situation has reached a critical point for employment and investment.

Jon Holt, the chief executive of KPMG UK/Swiss Group, writes in the Sunday Times on the persistent barriers to business growth in Britain. Despite 80% of private business leaders expressing confidence in their growth prospects, structural issues hinder investment. Holt calls for a stable, multi-year tax plan aligned with an industrial strategy to encourage long-term planning. He also cites the need for simplified corporation taxes and incentives for innovation. Additionally, he advocates for local leaders to have more control over tax revenues to stimulate regional growth whilst giving businesses a role in shaping that growth.

Andrew Bailey, the Governor of the Bank of England, has warned that interest rates may need to rise despite a weakening economy. He said officials “can’t afford to wait” for clear signs of inflation from rising energy prices. Bailey noted that prolonged shocks could lead to businesses raising prices and workers demanding higher wages. He indicated that the next Monetary Policy Committee meeting on Nov 5 could see rate increases if energy costs remain high. Inflation is expected to hit 4.2% early next year, significantly above the Bank’s 2% target.

Global shipping costs are climbing sharply due to conflict, severe weather, and rising diesel prices. Rates on the Far East–Northern Europe route have risen 85% since the Iran war began, averaging about $4,100 per 40-foot container. As 85% of Britain’s international freight travels by sea, higher transport costs risk feeding into shop prices, worsening living-cost pressures and adding strain to the UK economy.

John Healey, the Chancellor, will address the Labour Party conference today lauding a “new age of industrialisation” for the UK. He plans to announce £115m for a new marine research vessel and support for the Royal Navy’s shipbuilding, including three new floating docks at HM Naval Base Clyde. He will say: “By backing British shipyards, we are boosting national security and securing resilience in industries that drive growth.” However, shadow chancellor Andrew Griffith said: “These are more reheated announcements without clarity on where the money is coming from. Additional docks were announced months ago in the defence investment plan, which still has a £4.7bn black hole.”

In an interview with the Telegraph, the Business Secretary has warned Labour against reopening the debate about EU membership, arguing that it would see the return of paralysing political uncertainty at the expense of the country. Jonathan Reynolds said he agreed with business leaders who had urged him to focus on improving the relationship with the EU, “as we should do with any of our major trading partners, and at the same time, make the best of opportunities around the rest of the world.” Andy, Burnham, the Prime Minister, is under pressure from unions and some senior Labour figures to abandon the party’s red lines on rejoining the single market and customs union.

Duncan Beach, the chief executive of the Insolvency Service, is launching a five-year strategy to combat “abusive phoenixing,” where directors evade debts by restarting businesses. “It is such a blight on the economy,” he said. The service has initiated 146 investigations since April, using AI to gather evidence. With £5m in additional funding, a new team will focus on this issue. Despite a 56% drop in fraud prosecutions since 2015, Beach aims to improve the insolvency process for entrepreneurs, making it a supportive tool rather than just a shutdown mechanism.

UK banks, through the Great British Tokenised Deposit initiative, have completed live retail trials using programmable digital versions of bank deposits. Remortgage and consumer marketplace payments were automatically locked and released when conditions were met, reducing delays and risk. Executed on the GBTD platform, which was developed by Quant, the pilots suggest tokenised deposits could improve payment efficiency, transparency, fraud prevention, and customer control while preserving conventional bank-money protections.

Investment bankers and lawyers in London have earned over £1bn from a surge in takeover deals this year, prompting anger from unions concerned with rising living costs. The value of mergers and acquisitions involving UK-listed companies increased by 175% in 2026, reaching $132.9bn (£100bn). Fees for advisory services exceeded £1.2bn, with JP Morgan leading in deal advisement. Charlotte Brumpton-Childs from the GMB union said: “The UK needs to seriously re-examine what we value” while Paul Nowak of the Trades Union Congress called for a windfall tax on banks.

The Labour Government plans to offer taxpayer-funded jobs to thousands of disabled 18-24 year old Neets, aiming to support their employment. The initiative will cover minimum wage costs for 90,000 young people in six-month placements at Boots and John Lewis, costing £750m. The scheme is part of a £2.5bn package to enhance youth employment. However, critics say taxpayers should not be expected to bankroll state-funded jobs and that the Government should instead focus on reducing the burdens on employers.

New research from NatWest Group’s AI Adoption Report reveals that 80% of Scottish businesses using artificial intelligence (AI) have experienced productivity gains. Specifically, 82% reported increased efficiency, while 80% noted greater innovation. However, only 6% of businesses have fully transformed their operations with AI, indicating significant growth potential. Robert Begbie, chief executive of commercial and institutional banking at NatWest Group, warned of an emerging AI adoption divide, particularly for smaller firms lacking resources.

Savers will face a record £9.1bn tax burden in 2027-28 due to a two percentage point increase in savings tax, announced by Rachel Reeves, the former Chancellor. The rise is expected to generate an additional £900m for the Treasury. The number of individuals affected will reach 4.7m, an increase of 200,000 from the current tax year. Sarah Coles from AJ Bell commented: “Savers are being squeezed on all sides and the pain is only going to intensify in the next tax year.” The cash ISA allowance will also be reduced for those under 65.

Banking expert Dharmesh Mistry predicts that AI bots will soon serve as personal financial advisors, providing users with tailored guidance on wealth accumulation. He believes these bots will offer step-by-step plans, helping individuals understand what sacrifices are necessary to achieve financial goals He warns that traditional banks face significant risks from AI advancements, with 70% potentially at risk of obsolescence by 2030.