A recent survey by Enterprise Northern Ireland reveals that 20% of small businesses have contracted over the past year. The 2025 Enterprise Barometer highlights issues such as weak cashflows, rising costs, and challenges in skills and technology. Michael McQuillan, chief executive, stated: “Our entrepreneurs are sending a very clear message: the ambition is absolutely there, but pressure is halting progress.” Despite these challenges, 56% of businesses remain optimistic about growth in the coming year, an increase from 43% last year. Rising costs, particularly in utilities and raw materials, are major concerns.

David Miles from the Office for Budget Responsibility (OBR) has warned that the recent freeze on income tax thresholds will negatively impact economic growth. He stated that this stealth tax will push many into higher tax brackets, reducing incentives to work, save, and invest in the UK. Speaking at an event hosted by the Centre for Policy Studies, Professor Miles remarked: “There’s a negative effect from the decision to extend the threshold freeze.”

UK hotels are grappling with stagnant profits despite increased demand, according to the RSM hotels tracker. Profits remained flat at just over 38% from September to October, with a slight decline in London from 43.3% to 43.1%. Average daily rates rose to £155.03 across the UK and £222.64 in London. Chris Tate, partner at RSM UK, said: “Hoteliers are having to work harder but are getting less in return.” Rising National Insurance contributions and an upcoming minimum wage increase are further straining the sector, impacting future consumer spending.

The Treasury has launched a probe into leaks of the Chancellor’s Budget policies to the press before she announced them to MPs last week. One key policy shift reported by the FT was that Rachel Reeves was rowing back on plans to hike income tax. Media speculation about Budget measures moved markets and persuaded people to make changes to their pensions and investments they needn’t have done. Meanwhile, the Prime Minister faced fresh calls to sack the Chancellor on Wednesday with Tory leader Kemi Badenoch accusing him of forcing out the head of the OBR for “telling the truth” that Reeves did not need to raise tax on working people.

HMRC has introduced a new reward scheme for whistleblowers reporting tax avoidance or evasion, similar to the US IRS model. Individuals providing information on serious tax avoidance, defined as £1.5m or more, can earn 15% to 30% of the recovered funds, potentially reaching £450,000. Paul Dowling from Leigh Day noted increased interest from potential informants. He said: “Whistleblowers can face retaliation… They need expert guidance.” HMRC encourages anyone with information to report it, pointing to the importance of returning stolen tax revenue to the public.

Nigel Terrington, CEO of Paragon Banking Group, has announced plans for acquisitions following regulatory reforms that eased capital requirements. The changes to the minimum requirement for own funds and eligible liabilities (MREL) will enable mid-cap lenders like Paragon to pursue aggressive growth strategies. Terrington stated: “It was a barrier to growth… it presents more opportunities to pursue an acquisitive strategy.” Despite a slight increase in pre-tax profit to £256.5m, the bank faced challenges with rising provisions for potential bad loans, particularly in its development finance sector.

The Financial Conduct Authority (FCA) has advanced the deadline for lenders to address motor finance complaints to 31 May, following a Supreme Court ruling. This change is part of a compensation scheme for consumers affected by excessive car loan interest rates, estimated to cost lenders £11bn. The FCA said: “It is important that complaints are now dealt with promptly, not least as some consumers have been waiting almost two years for an answer.” The regulator is currently consulting on the scheme’s timeframes, with final rules expected by February or March 2026.

UK services growth slowed in November, with the S&P Global UK services PMI survey scoring 51.3, down from 52.3 in October. Tim Moore, economics director at S&P Global, noted that demand conditions weakened in both domestic and export markets. Firms cited subdued business and consumer confidence as reasons for delays in investment decisions and a significant drop in staff numbers. Price inflation eased to its lowest level since January 2021, with Matt Swannell from EY Item Club suggesting that this could lead to an interest rate cut before Christmas.

Analysis by Sir John Redwood, Margaret Thatcher’s former senior economics adviser, shows that both debt and borrowing will continue to rise under Labour. This is despite the Chancellor asserting that she is cutting debt and borrowing in her Budget. Sir John says Rachel Reeves has misled the public by hiding an extra £675bn bill to cover the cost of rolling over existing borrowing. When this is added to a £628bn increase in spending over the next five years, the UK will have to fund £1.3tn in debt in the year 2030-31.

Premier League clubs, including Arsenal and Manchester United, will face significant increases in business rates due to recent revaluations. Analysis by global tax firm Ryan revealed that the rateable values of stadiums in England and Wales have risen by 25% to £111.74m. Arsenal’s rates bill will increase by £1.1m to £4.8m, while Manchester United’s will rise by £973,840 to £5.79m. Alex Probyn from Ryan commented: “The new list reflects the position on April 1 2024, with stadiums fully open and commercial revenues significantly higher.”