More than 1.3m people may face significant financial losses if Rachel Reeves extends the freeze on income tax thresholds. Research from the House of Commons Library, commissioned by the Liberal Democrats, indicates that the average taxpayer could be £285 worse off by 2030. London and the southeast would be the most affected regions. Sir Ed Davey, leader of the Liberal Democrats, urged the Chancellor to honour her commitment to unfreeze the thresholds, stating: “Ripping yet more of people’s hard earned money out of their pockets is certainly not the change that people are crying out for.” Additionally, Daisy Cooper, the Liberal Democrat deputy leader, has proposed a windfall tax on major banks to fund home loans for renewable energy systems. She estimates this could generate £7bn annually by the decade’s end, allowing homeowners to invest in solar panels and insulation. Cooper announced plans for an Energy Security Bank, offering loans up to £20,000, which could lead to £10bn in affordable loans.

Government borrowing reached £18bn in August, the highest figure for five years, according to the Office for National Statistics (ONS). This figure exceeded expectations by £5.5bn and was driven by rising interest on government debt and increased spending on public services. Martin Beck, chief economist at WPI Strategy, said: “The £10bn buffer the Chancellor pencilled in against her key fiscal rule in March has almost certainly gone. That means tax rises in November look inevitable.” The ONS also reported public sector net debt at £2.91trn, 96.4% of GDP.

Rachel Reeves will review Britain’s Digital Services Tax amid pressure from Donald Trump to abolish it. This assessment will coincide with the upcoming Budget announcement. The Digital Services Tax imposes a 2% levy on the British revenues of major social media companies, predominantly American firms. Reeves’

AI technology is transforming the recruitment process, with companies like Talentpilot using bots for initial interviews. The AI, named Alex, conducts interviews and evaluates candidates based on tailored questions. Tom Zrubecky, Talentpilot’s CEO, claims this method can reduce mis-hires by 27%. However, concerns remain about the lack of human intuition in AI interviews. David Morel from Tiger Recruitment warns that AI should supplement, not replace, human judgement in hiring. Meanwhile, applicants are also using companies such as AIApply, which scrapes career sites and applies on a person’s behalf. Some job hunters claim to be applying for 100 roles a day with such tools. Finally, the Sunday Telegraph points out that, as Labour’s Employment Rights Bill will make it harder to get rid of staff, companies will naturally seek out ways to ensure they hire the right people.

Data from the Office for National Statistics (ONS) show the public sector workforce has expanded to 6.2m, up by 75,000 in a year and the highest figure in 14 years. This comes as private sector companies cut back on hiring following an increase in employment taxes and the minimum wage earlier this year. Since before the pandemic, the number of people employed by the state has risen by nearly 600,000, while productivity in the public sector has decreased by 4.2%, according to the ONS. Jagjit Chadha, an economics professor at Cambridge University, says the Chancellor should strip back the number of people working for the state to improve her fiscal position. Their productivity must be improved too, to reduce the need for tax hikes or spending cuts.

The UK economy is projected to experience modest growth over the next two years, according to a report by KPMG. The firm forecasts a rise of only 1.2% this year and 1.1% in 2026, significantly lower than the Office for Budget Responsibility’s earlier estimate of 1.9%. Chief economist Yael Selfin said: “Elevated tax burdens, weaker global trade and cautious consumers are likely to keep growth subdued into 2026.” The report also predicts unemployment will reach 4.9% by 2026, up from 4.7% currently, inflation will persist with rates expected to remain above the 2% target until late 2026.

Savers withdrew £70.9bn from pensions in 2024/25, a 36% increase from £52.2bn the previous year, according to the Financial Conduct Authority (FCA). The surge in withdrawals was driven by fears of potential tax changes, particularly regarding inheritance tax. Eamonn Prendergast, of Palantir Financial Planning, urged calm: “Fear and rumour are a terrible basis for retirement planning, yet speculation has been running unchecked since last year’s Budget. These pots are meant to last decades, not be raided in panic.” The FCA’s report comes as millions await the upcoming Budget on November 26, raising concerns over further pension changes.

The FCA has expedited cryptocurrency application approvals, increasing acceptance rates, but overall applications have declined significantly, prompting calls for a more accommodating regulatory framework.

Gatwick Airport’s £2.2bn expansion plan has been approved by Transport Secretary Heidi Alexander, allowing for an additional 100,000 flights annually. The project involves moving the emergency runway 12 metres north to accommodate narrow-bodied aircraft. Alexander described the expansion as a “no-brainer” for economic growth, with potential operations starting before 2029. The airport claims the expansion will generate £1bn in economic benefits and create 14,000 jobs.

Europe’s air travel network has been hit by a cyber-attack that crippled check-in desk software at major airports including Heathrow, Berlin and Brussels. Airlines were forced to switch to manual check-ins, causing widespread delays and cancellations, with Brussels airport warning of further disruption into Monday as it asked carriers to cancel half of their scheduled departures. Heathrow said 90% of flights on Sunday suffered delays, averaging 34 minutes, while Berlin reported three-quarters of services affected. Collins Aerospace, the supplier of the compromised system, confirmed it was dealing with a “cyber-related incident” but has yet to restore a secure version.

The former coal-fired power station site at Cottam in Nottinghamshire could be transformed into the UK’s first nuclear-powered data centre under an £11bn plan. Powered by small modular reactors (SMRs), the facility would help meet the vast energy demands of AI data centres. US firm Holtec, with EDF and real estate partner Tritax Management, aims to have reactors operational by 2032.

The Chancellor is considering proposals to impose 20% VAT on all taxi journeys, which would raise around £750m a year for the Treasury. A spokesman for the Stop the Taxi Tax campaign, which has been set up to oppose the move, said: “The Taxi Tax breaches Labour’s manifesto promise not to raise VAT. Not only that, it will hit those living in rural communities especially hard, who lack reliable and accessible public transport.”