Businesses have warned Chancellor Rachel Reeves against further tax increases in the upcoming Budget. Following GDP growth of just 0.3% from April to June, down from 0.7%, the British Chambers of Commerce (BCC) cautioned that the figures mask significant pain for businesses. BCC research manager Stuart Morrison said: “There must be no more business taxes in the Budget.” CBI lead economist Ben Jones highlighted the risk of stagnation due to policy uncertainty, while the Institute of Directors (IoD) noted that private sector growth is hindered by both global and domestic factors.

Rachel Reeves has tasked the Treasury with identifying tax reforms to improve forecasts from the Office for Budget Responsibility (OBR). Some experts are concerned that a productivity downgrade could create a fiscal gap exceeding £20bn in the upcoming October Budget. Richard Hughes, chair of the OBR, warned that even a slight reduction in productivity growth could eliminate the Chancellor’s £9.9bn headroom. One ally of Reeves said: “The Chancellor has issued an edict to identify tax reforms,” whilst also focusing on deregulation and legislative changes.

London’s capital markets are regaining momentum, with an expected £30bn in public market listings from European companies. Recent successes include Canal+ and Metlen, with potential IPOs from Visma and Newlat on the horizon. Brian Hanratty, head of equity capital markets at Peel Hunt, noted: “There’s a growing acknowledgement that London is the exchange of choice for international European companies.” The UK Government’s reforms have improved market attractiveness, although some believe further changes, like reducing stamp duty, are necessary for continued growth.

British manufacturers are falling behind in robotics and AI, risking a £150bn economic boost. Make UK, a trade body, calls for a “one-stop-shop” for SMEs to access funding and training. The UK ranks fifth in global innovation and has only 112 industrial robots per 10,000 workers, half the EU average. Seamus Nevin, chief economist at Make UK, stated: “Smaller manufacturers are being held back by fragmented support and complex funding systems.” The Government aims to train 7.5m workers in AI skills by 2030 but needs to act faster to support smaller firms, Make UK warned.

The financial services sector in London is experiencing a resurgence, with a 10% increase in vacancies in the first half of 2025. Morgan McKinley reports that banks and finance firms are actively hiring for tech-driven roles, particularly in fintech, AI, and cybersecurity. The firm forecasts an 11.2% rise in vacancies for the entire year, totalling over 52,000 positions. David Neal, managing director of Morgan McKinley, noted the sector’s evolution due to tech adoption and regulatory changes, stating: “The financial services sector is evolving fast.” However, overall UK vacancies have declined by 5.8%.

Employers may face increased compensation costs if they do not respond to discrimination questionnaires, according to the Equality and Human Rights Commission (EHRC). The EHRC suggests reinstating the requirement, which was removed in 2014. Under section 138 of the Equality Act, failure to respond within eight weeks could strengthen the accuser’s case. Craig Beaumont from the Federation of Small Businesses warned that reinstating the questionnaire could raise costs for firms. Patrick Milnes from the British Chambers of Commerce expressed concern about the impact on small businesses and potential conflicts with data protection regulations. The EHRC stated: “Reintroducing a statutory question and answer procedure could mean employees are better informed about pay discrepancies.”

UK workers report higher anxiety and lower job satisfaction compared to peers in countries like the US and India, according to a global survey by WorkL. The survey, which included 70,000 staff, revealed that the UK scored below the global average for workplace wellbeing. Lord Price, founder of WorkL, commented: “Happier employees are more productive than their unhappy counterparts.” The UK’s productivity has stagnated, with a 0.5% decline from 2019 to 2024, impacting family finances and company profits.

Research by Schroders reveals that since the beginning of 2025 American investors have ploughed $15bn into UK shares. “We are currently seeing increased interest in UK companies from our US and international investors, with many noting the relative value available across a range of sectors,” said Sue Noffke, head of UK equities at the investment manager. Shares in London are still deemed to be relatively cheap whilst the regulatory landscape and strong rule of law make the environment positive for investors.

Nearly 80% of Chief Financial Officers (CFOs) received salary increases in 2024, reflecting their expanding responsibilities, according to BlackLine’s research. The average salary for UK CFOs rose to £147,880, up from £146,000 in 2023. Over 50% of CFOs reported base salary increases, while 35% received bonuses. Phillipe Omer Decugis from BlackLine stated: “The rising compensation for CFOs reflects the growing expectations and pressure on their role.” Looking ahead, 83% of CFOs anticipate further pay rises in 2025, driven by their evolving roles in company strategy.

HM Revenue and Customs (HMRC) dismissed 50 employees for breaching data privacy rules in 2024-25. A total of 354 staff have faced disciplinary action since 2022, with 186 being fired. HMRC holds sensitive data, and staff are prohibited from accessing it without a valid business reason. John Hood of Moore Kingston Smith said: “Any HMRC employee foolish enough to look up personal information that is not part of their usual responsibilities faces a ticking time bomb as most searches are tracked. HMRC stated: “Instances of improper access are extremely rare, and we take firm action when it does happen.” Data breaches have increased since the pandemic.

Tees Valley Mayor Ben Houchen has warned that the UK’s soaring energy costs pose a significant threat to economic growth and regeneration efforts in former industrial areas. The International Energy Association reported that the UK has the highest industrial electricity prices among its members, with costs at 26p per kWh compared to just 6.5p in the US. Houchen said: “If we are not competitive on energy pricing, companies can spend their money elsewhere.” He also expressed concerns over increased National Insurance contributions leading to job losses. Shadow Chancellor Sir Mel Stride echoed these worries, highlighting the broader implications for industry and economic stability.

UK firms are introducing various perks to encourage employees to return to the office. These include allowing small dogs, free artisan coffee, and hair straighteners in bathrooms. John Leasure, a real estate partner at Hamlins, noted that running clubs and improved amenities are also part of this strategy. A recent study by the British Chambers of Commerce revealed that 10% of businesses faced staff resignations due to inflexible work-from-home policies.