Investors are withdrawing funds from French businesses and reallocating them to the London Stock Exchange due to concerns over rising debt and economic stagnation in France. HSBC said the UK recorded Europe’s biggest investment inflows last month, while France suffered the largest decline. The FTSE 100 has risen 5% this year, compared with a 3.7% fall for France’s CAC 40. Analysts noted a shift in regional funds away from French equities, citing weaker economic forecasts. It is noted that the OECD recently downgraded France’s growth outlook, while upgrading the UK’s.

The Government has launched a £1bn Scale-Up Fund to support science and technology companies, with the initiative designed to address a lack of scale-up capital which hinders British firms looking to grow globally. Danny Lopez, the chair of the Aquis Stock Exchange and CEO of Glasswall, has emphasised the need for long-term investment to help companies thrive. He has also urged policymakers to include public growth companies in the funding initiative, saying: “Founders who opened themselves to public scrutiny… should not be shut out of the capital their private peers can reach.”

Industry bodies are pressing Chancellor John Healey to prioritise SMEs in his upcoming Budget. Key demands include better access to public sector contracts, relief from rising operational costs, and robust late payment legislation. Shevaun Haviland, director general of the British Chambers of Commerce, said the Budget must give SMEs “breathing space,” by avoiding any further tax rises and cutting costs. Bibby Financial Services has flagged concerns over late payments, with its SME Confidence Tracker showing that 32% of UK SMEs want “robust and effective” late payment legislation by the end of this parliament.

UK manufacturing activity increased in September, according to S&P Global’s UK manufacturing PMI. The survey indicated a slight increase in overall manufacturing activity, with a reading of 51.9 in September, up from 51.7 in August. This marks the 11th consecutive month of growth, although the pace of production growth has slowed to its weakest level in six months. Supply chains faced significant pressure, leading to increased delivery times and rising input prices, particularly for energy and transportation. Rob Dobson, director at S&P Global Market Intelligence, said: “The big shift in September was in the survey’s price measures, which switched from signalling a decline in inflationary pressures to a renewed uplift.”

House price growth slowed in September, data from Nationwide Building Society shows, with year-on-year growth halving to 0.8% from 1.6%. The typical home is now valued at £274,251, marking a month-on-month decline of £1,214 – or 0.2% – compared to August. Robert Gardner, chief economist at Nationwide, attributed the downturn to an “uncertain economic backdrop” and rising mortgage rates, saying that inflation concerns have “led to mounting financial market expectations of bank rate increases, which has maintained upward pressure on the market interest rates which underpin mortgage pricing.” Separate data from HMRC shows that home sales also fell in August, slipping by 1% compared to July and 2% from August 2025.

Investors wiped £18bn off the value of the UK’s four largest banks on Thursday amid concerns over potential tax increases in the upcoming Budget. The sell-off was driven by news that bank executives would meet John Healey, with it suggested that the Chancellor could target banks for tax hikes to support cost-of-living measures, despite the industry’s strong lobbying against such increases. Barclays, HSBC, Lloyds, and NatWest all saw significant declines, with HSBC losing over £10bn in market capitalisation.

James Cleverly, a prospective Conservative candidate for Mayor of London, warns that lowering the mansion tax threshold to £1.5m will disproportionately affect homeowners in the capital. The change could increase the number of homes subject to the tax to 271,000, including nearly 62,000 additional properties in London.

The Dutch government has abandoned plans for a wealth tax on unrealised gains after significant criticism. Officials proposed taxing increases in asset values, including shares and cryptocurrencies, before sale. Critics warned this could force investors to sell assets to cover tax bills on profits not yet realised. Instead, a conventional capital gains tax will be introduced, effective from 2028, taxing only realised gains at a rate of 36%.

A Santander UK survey of 1,000 business owners shows that 35% did not intend to start a business. Additionally, 62% lacked prior business experience. The main motivations for starting a business included the need for flexibility (34%) and financial independence (25%). Many entrepreneurs faced challenges, with 79% learning on the job and 39% unaware of basic business operations. Puja Patel, head of strategic programmes and universities at Santander UK, said: “Our research shows that the UK is a nation of entrepreneurs and innovators.”