Kemi Badenoch has promised to abolish the £100,000 childcare tax threshold, under which earning just £1 above the limit can leave parents substantially worse off by removing key support. Speaking ahead of the Conservative Party conference in Birmingham, she said a future Tory government would eliminate the cliff edge entirely. Badenoch framed the pledge as part of broader tax reforms intended to ensure that taking on more work and earning more always leaves people better off. The measure would be funded by cutting the headcount at various quangos, saving £1.6bn a year. Badenoch has also suggested that cutting inheritance tax could be on the cards, arguing that it was “morally right that people don’t get taxed twice.” In an interview with the Sunday Times, she explained: “It is morally right that if you work hard and want to give something to your children the government doesn’t take it away.”

Concerns are mounting in the City over a potential windfall tax targeting UK banks. Speculation suggests that Chancellor John Healey may exempt international banks while imposing new levies on domestic lenders. The chief executives of lenders including Barclays, HSBC, Lloyds Banking Group and NatWest have been invited to a meeting on Tuesday as Healey contemplates fresh bank taxes. But cabinet ministers have raised concerns about higher taxes on banks, warning they would damage business and dampen growth. Meanwhile, the Observer reports that the UK’s largest banks saw £18bn wiped from their stock values last week amid speculation of new taxes.

HMRC data shows that 69,300 taxpayers left the UK in 2024/25, with experts attributing the rise in departures to the abolition of the non-dom regime, frozen tax thresholds, and increased levies. Neela Chauhan from UHY Hacker Young said: “More people have decided they could get a better tax deal abroad.” Experts have warned that further tax rises in the Budget could encourage more people, including younger workers facing low wages and high housing costs, to move abroad.

The Standard says London-based Labour MPs are “quietly confident” that Chancellor John Healey will abandon plans to lower the mansion tax threshold from £2m to £1.5m, after warning Treasury ministers of the impact on homeowners in the capital. While the possible change remains under discussion ahead of the Budget, the MPs argue it would bring large numbers of ordinary family homes into the tax net while raising relatively little additional revenue. Analysis by Tax Policy Associates estimates the lower threshold would increase the number of affected properties from around 123,000 to 245,000, with more than 61,000 of the additional homes in London.

David Reuben, a billionaire property investor and Newcastle United shareholder, has relocated to Monaco, joining a trend of wealthy individuals leaving the UK. With an estimated wealth of £28bn, Reuben’s move follows increased taxes under the Labour Government. Reuben’s departure reflects broader concerns about the UK’s tax environment, as other high-net-worth individuals, like Sir Jim Ratcliffe, express similar sentiments about the country’s economic climate.

London’s infrastructure is deteriorating, writes Matthew Lynn in the Sunday Telegraph, threatening its economic stability. The capital contributes 22% of UK GDP but faces significant transport challenges. Cracks in Waterloo Bridge may lead to its closure, following the fate of Hammersmith Bridge. Andy Burnham remarked that infrastructure is not a priority, Lynn says, despite its critical role in economic growth. As infrastructure fails, investment declines, and London’s population is already falling, Lynn contends before concluding that the situation demands urgent attention from political leaders.

Boots, Monzo and the RAC have dealt fresh blows to London’s stock market amid concerns over the declining number of UK-listed companies. Boots is nearing a $9bn private sale to Canada’s Weston family, while Monzo is holding talks with private equity firms and the RAC has shelved flotation plans. Britain now has 909 publicly quoted companies, down from 1,700 two decades ago. However, prospective listings from Airtel Money, Zilch and Waterstones offer hope that London’s prolonged IPO drought could ease.

Chancellor John Healey’s fiscal headroom has decreased from £23.6bn in March to an estimated £11.3bn ahead of his budget on October 28, according to economists at EY. They attribute this to rising bond yields, increased debt servicing costs, and higher unemployment affecting tax revenues. EY warns that if the Strait of Hormuz remains closed, UK inflation could reach 6% by Christmas, further reducing headroom by £18bn, potentially turning a surplus into a £7bn deficit.

Andrew Griffith has warned that Britain’s economy is “in peril right now,” criticising Prime Minister Andy Burnham for lacking a plan to address the cost-of-living crisis. The Shadow Chancellor pointed to soaring diesel prices and a welfare budget that is “out of control,” accusing Burnham of a “dereliction of duty” for focusing on long-term promises instead of immediate issues. Speaking on the eve of the Tory party’s conference in Birmingham, Griffith stressed the need for tax cuts and responsible spending to stimulate economic growth.

UK firms raised their 12-month inflation expectations from 3.1% to 3.3%, according to the Bank of England’s latest Decision Maker Panel survey. Most businesses said higher energy costs were having a significant impact on the prices they set, while longer-term inflation and wage growth expectations also edged higher. More firms also reported very high levels of uncertainty. The findings add to pressure on the Bank of England to consider raising interest rates from 3.75%, particularly if global energy prices remain elevated. However, Bank official Alan Taylor said rates did not need to respond automatically to energy prices, pointing to a weak labour market and falling food inflation as signs that inflation may prove less persistent than feared.

The UAE has reportedly warned that billions of pounds of planned UK investment could be withdrawn following Manchester City’s guilty verdict in its Premier League case. The Government has been courting UAE sovereign wealth funds to support major projects, including the Oxford-Cambridge technology corridor, which is seeking £10bn of private investment. UAE investment in Britain has exceeded £30bn over five years across sectors including defence, life sciences and technology. Officials reportedly said the City ruling had weakened the UAE’s appetite for further large-scale UK commitments.

The Green Party has proposed a new initiative to guarantee young people a two-year job within four months of leaving education or training. Co-deputy leader Mothin Ali highlighted the plight of 1m young people currently out of work, training, or education. The plan aims to create private sector jobs, with the Government covering half of the salary. Employers would be exempt from National Insurance contributions but must provide training. Ali criticised the Government’s approach, saying: “Threatening young people with cuts to Universal Credit… that’s not a youth strategy.” The initiative would target areas with high youth unemployment.

New pro-trade union laws will take effect in the UK on 30 October, allowing unions access to workplaces with 21 or more employees. The Observer notes that Meta has already signed an agreement with Prospect to discuss union membership with its 5,000 London employees. But Patrick Milnes from the British Chambers of Commerce expressed concern about the added complexity for businesses. “These changes are landing alongside a wider package of employment law reforms putting real strain on businesses, particularly SMEs,” he said. Additionally, from 1 January, employers must inform workers of their right to join a union.

Global mergers and acquisitions (M&A) fell below $1tn in Q3, reaching $986bn, according to LSEG. This marks a significant drop from nearly $1.7tn in the previous quarter and a 13% decline year-on-year.