The Treasury’s tax revenue from the UK’s largest companies has decreased due to a 12% drop in profits, according to PwC analysis focused on the 100 Group of business. The report shows that tax contributions fell to £93bn in the last financial year, down from £93.3bn a year earlier. Dominic Mathon, co-chair of the 100 Group tax committee, said a “competitive tax environment is critical to attracting investment,” adding: “Policy choices should seek to strengthen the UK’s position as a destination for high-value, mobile capital.” Andy Wiggins, a tax partner at PwC, said: “This report shows that despite profitability declining, the largest companies are making a sustained and a significant contribution to the public purse not just through corporation tax but through 31 different taxes.”

Chris O’Shea, chief executive of Centrica, has called for a shift in energy policy costs from bills to general taxation, saying that removing levies could reduce energy bills by approximately £200. Saying that he would be willing to pay more tax, Mr O’Shea argued that wealthier individuals should contribute more. He also criticised the energy regulator Ofgem for focusing on micromanagement rather than growth. Ofgem defended its approach, citing improved customer satisfaction and financial stability in the sector.

Shopping centre firm Unibail-Rodamco-Westfield has cautioned that proposed tax increases in the Budget could lead to inflation and reduced investment in the retail sector. Katie Wyle, managing director of customer and retail operations in Northern Europe at Westfield, urged the Chancellor to extend support to all retail properties, not just those valued under £500,000. She said: “Failure to do so will not only impact businesses… but will also result in increased costs being passed onto the consumer.” The Heart of London Business Alliance estimates a 26% rise in business rates for London, from £9bn to £11bn.

Local leaders in England will soon have the authority to impose a “modest charge” on tourists, the Ministry of Housing, Communities and Local Government has announced. Local Government Secretary Steve Reed said: “We’re giving our mayors powers to harness this and put more money into local priorities.” The visitor levy will bring England in line with Scotland and Wales, which are already introducing tourist taxes.

Former Office for Budget Responsibility (OBR) officials say Chancellor Rachel Reeves was warned about productivity downgrades and should have ensured she had a heavier financial buffer ahead of the Budget. Sir Charlie Bean, who sat on the OBR’s Budget Responsibility Committee, said Ms Reeves “was unwise to leave herself such a small amount of fiscal headroom, knowing the substantial range of uncertainty around the forecast.” Sir Charlie, formerly the Bank of England’s chief economist, added: “You’re asking for trouble if you leave yourself a small margin of error.” Arguing that ministers should have expected the downgrade, having been given repeated warnings about the uncertainty around previous predictions, Sir Charlie said the Government “cannot claim that this is something that’s come out of the blue.”

Retail confidence has dropped sharply, reaching its lowest point since 2008, according to Confederation of British Industry (CBI) analysis. The CBI’s quarterly measure of business sentiment for the next three months fell to -35 from -10 in August. Retailers anticipate subdued demand as they prepare for a challenging December, with sales expected to decline further. Alpesh Paleja, deputy chief economist at the CBI, said: “Retailers continue to grapple with a long spell of weak demand,” while noting that uncertainty in the run-up to the Budget has seen businesses “holding back” on investment and hiring. He added that retailers have also been hit by an increase in National Insurance contributions and the end of business rates relief.

The Bank of England may delay interest rate cuts due to uncertainty surrounding Budget measures, with analysts saying that proposed tax increases could exacerbate inflation. RSM economist Thomas Pugh warned that “chaos” around Budget policies could leave inflation higher than expected. Noting that tax measures might not come into force immediately, he suggested that the Bank “is unlikely to cut interest rates now to offset a hit to the economy that might come in 2029.” AJ Bell’s Russ Mould noted that bond markets are wary of the UK’s economic stability, leading to higher borrowing costs.

The Government has announced an increase in the minimum wage that will see 2.7m people receive a pay rise in April. The hourly rate for over-21s will rise to £12.71, while 18- to 20-year-olds will see their rate increase to £10.85, and under-18s and apprentices will earn £8 an hour. While the Government says these changes balance worker needs with what businesses can afford, some employers have warned that repeated above-inflation rises could lead to hiring freezes, reduced investment, or higher prices for customers. Jane Gratton, deputy director of public policy at the British Chambers of Commerce, said: “There’s a limit to how much additional cost employers can bear without something having to give.”

Major companies are urging Chancellor Rachel Reeves to simplify employee share incentive plans. Over 50 firms have called for the mandatory holding period to be reduced from five years to two. They argue that the change could encourage more employees to invest in their companies. Introduced in 2000, employee share incentive plans allow employees to benefit from tax relief on their shares and gives them a stake in the success of the company. MP Kirsteen Sullivan said: “With the Government’s ambitious agenda to support staff, back British business and encourage share investment, modernising employee share ownership plans has an essential role to play.”

Transport Secretary Heidi Alexander has endorsed Heathrow Airport’s proposal to relocate the M25 for a new 3,500-metre runway. She dismissed a rival plan from Arora Group, saying it would still significantly impact the motorway and require more home demolitions. Heathrow’s expansion is projected to cost £33bn, including £1.5bn for the M25 relocation, and aims to increase capacity to 756,000 flights and 150m passengers annually. Ms Alexander noted that the decision allows for a planning application by the next election, with operations expected by 2035.