A report by the Purposeful Company think-tank has proposed reforms designed to support the growth of UK firms amid a surge in foreign takeovers. The think-tank has called for the creation of a pension “super fund” to back later-stage venture capital funding, support IPOs and boost the stock market. Julia Hoggett, chief executive of the London Stock Exchange, said that while the UK has “no shortage of consequential, purposeful companies scaling at pace … we will do those companies a disservice … if we do not ensure that we have the capacity to back them with domestic risk capital.” She added: “Ensuring that companies can start, grow, scale and most importantly stay here requires the UK to support its own innovators and have the public policy to do so.” This comes amid an increase in London-listed firms being taken private by foreign investors.

A report from the Centre for Policy Studies (CPS) has warned that Britain faces a fiscal crisis unless it cuts spending. It also calls for the abolition of stamp duty on shares and urges ministers to boost the competitiveness of the City. The report’s author, Dr Gerard Lyons, said the UK must control public spending and reduce the debt-to-GDP ratio, commenting: “The issues we face are real, sizeable but are solvable with the right policies. The central aim should be to grow GDP per capita.” Shadow Chancellor Mel Stride commented: “Urgent action is needed to fix our public finances and restore confidence in the UK economy.”

Philip Shaw, chief economist at Investec, says the Bank of England’s Monetary Policy Committee is likely to slow down its quantitative tightening (QT) programme over the next year. QT has been conducted at a rate of £100bn per year over the past two years, with up to £87bn related to gilts hitting maturity over the past twelve months and the remaining £13bn coming from active gilt sales from the Bank. Over the next year, £49bn of gilts will mature, giving the Bank more scope to slow down the rate of QT.

Chris Hayward, policy chairman at the City of London Corporation, has emphasised the need for effective tax policy to attract investment. He calls for a transformation in the investor journey, increased venture capital funding, and the creation of co-investment opportunities. He warns that a surcharge on banks could hinder growth, saying introducing this “at a time when capital is already scarce, risks undermining the very institutions we need to finance growth.” Mr Hayward says a recent EY report “paints a sobering picture,” with the analysis showing that “global investment is flatlining.” He goes on to argue that competitiveness “must be the golden thread running through every decision,” adding: “That means a tax policy that aligns with the industrial strategy.”

Older homeowners have released £636m from their properties in Q2 2025, a 10% rise year-on-year, as demand for equity release surged following Chancellor Rachel Reeves’s inheritance tax reforms. The average new loan was £126,422, according to the Equity Release Council, with many over-55s using lifetime mortgages to gift money to children and grandchildren before new pension rules bring them into the inheritance tax net from April 2027. Wealthier households – particularly those with estates above £3m – are increasingly seeking advice, as more estates will now exceed the £325,000 per person inheritance tax allowance, or up to £1m for couples including the main residence.

Baroness Helena Morrissey has urged Chancellor Rachel Reeves to reconsider proposed tax hikes, saying she should cut taxes to stimulate growth. Speaking on the Master Investor podcast, she suggested that the high personal tax burden is driving talent abroad, arguing that certain tax policies are “counterproductive at this point.”

James Reed, chief executive of recruitment firm Reed, has warned that a “severe jobs drought” in the UK is being “exacerbated by the march of AI” and factors such as the increase in employer’s National Insurance contributions. This comes as a poll for the recruiter saw 22% of respondents say they would be cutting back on hiring because of the rise in National Insurance. Meanwhile, a survey by the Confederation of British Industry (CBI) saw 69% of people cite National Insurance contributions as a key concern when it comes to the cost of employing people. The CBI said: “There is no doubt that the recent rises in National Insurance contributions and the National Living Wage have made it harder for firms to hire, invest and grow.”

Analysis by City AM shows that there has been a decline in the number of authorised electronic money institution (AEMEI) licences granted by the Financial Conduct Authority (FCA). Data obtained via a Freedom of Information request shows that none were granted in Q4 2024, despite at least 10 applications being under consideration. The first quarter of 2025 saw two applications granted, with a further four approved in Q2. With 35 applications closed over the nine-month period, it means just 16% were approved. This marks a 45% year-on-decline in the number of approvals. Seb Wallace, co-founder of early-stage venture capital investor Triple Point, said the FCA “remains a far cry from the growth-minded type of regulator the UK needs for start-ups,” arguing that the approval process “is a slow and expensive tax on start-ups.”

President Donald Trump has called for an end to quarterly reporting for US-listed companies, arguing that reporting on a six-month basis would “save money and allow managers to focus on properly running their companies.”

Google plans to invest £5bn in the UK over the next two years to enhance AI services. This investment, announced alongside the opening of a new data centre in Waltham Cross, is expected to create 8,250 jobs annually. Chancellor Rachel Reeves described the funding as a “vote of confidence” in the UK economy. The investment will focus on capital expenditure, research and development, and engineering, including AI research in science and healthcare through Google DeepMind.

New research from Charles Stanley reveals that many parents are not discussing their inheritance plans with their children, leaving them vulnerable to unexpected tax bills. Over a third of Gen X and 27% of Millennials are unaware of their parents’ intentions. The report also shows that 20% of Baby Boomers lack a will, complicating asset distribution.