Britain’s jobs market has fallen to its weakest level since 2011, according to BDO’s Employment Index, which tracks hiring demand, job losses and unemployment. Separate KPMG and REC data show full-time vacancies have dropped to a 16-month low ahead of the Budget, with reductions across all monitored sectors, particularly construction and retail. Businesses cite higher employer costs— including increased National Insurance, minimum wage rises and higher business rates — as pressures restraining recruitment. BDO said subdued consumer confidence and inflation have hit services activity, weakening Christmas trading. While permanent hiring stalls, demand for temporary staff has risen sharply as firms seek flexibility. Pay growth accelerated in November, though salaries remain modest overall, and analysts say economic uncertainty continues to suppress confidence.

The UK Government has announced an £820m package to assist nearly one million young people on universal credit in securing employment. The initiative will provide training and work experience in sectors like construction and hospitality for 350,000 individuals. Work and Pensions Secretary Pat McFadden commented: “Every young person deserves a fair chance to succeed.” The plan includes guaranteed jobs for 55,000 young people by spring 2026 and the expansion of Youth Hubs across Great Britain. Currently, 940,000 young people are classified as NEET, a figure expected to rise without intervention.

HMRC’s new reward scheme for reporting tax dodgers has raised concerns among small business owners. The scheme, announced in the Autumn Budget by Rachel Reeves, offers up to 30% of recovered tax for reports leading to collections of at least £1.5m. However, business leaders warn it may lead to false accusations and unnecessary investigations. Tony Redondo, founder of Cosmos Currency Exchange, stated: “A lot of time and cost is going to be wasted on spurious investigations.” Critics argue that safeguards are needed to protect individuals from malicious reports.

London is facing a significant office space crisis, having lost 14m sq ft of workspace since 2018. According to Knight Frank and the London Property Alliance, over half of the remaining office blocks will be obsolete by 2030. Despite a resurgence in demand, only 15m sq ft is expected to be delivered by 2029. Knight Frank, which has warned of an 11m sq ft shortfall in prime office space by 2028, is urging the Government to prioritise refurbishing older buildings to avoid economic losses.

Frozen income tax thresholds are expected to push many middle-income workers into the higher 40% tax band by 2031, according to projections following the Chancellor’s decision to maintain the freeze until the end of the decade. Average secondary teachers, police officers, social workers and skilled trades such as crane drivers are among those forecast to cross the £50,271 threshold as wages rise with inflation. Critics argue the policy increases the tax burden on ordinary workers, while supporters say threshold freezes help fund rising public spending without increasing headline tax rates. The National Education Union plans strike ballots next year amid concerns over school funding, while the Police Federation warns most constables will become higher-rate taxpayers by 2027–28.

Hospitality leaders have said the Budget has failed to deliver meaningful business rates reform, leaving pubs and hotels facing steep rateable-value hikes that outweigh small reductions in the multiplier. Despite earlier signals that ministers understood the sector’s pressures, rate rises of 150–180% are cited, with some local pubs seeing fivefold increases by 2029. Simon Emeny, chief executive of Fuller Smith & Turner, argues this undermines investment, fuels closures and job losses, and shows the Government has no credible growth plan. He warns that the sector cannot continue absorbing rising costs to balance the nation’s books. Meanwhile, an editorial in the Sunday Times adds that as genuine businesses close, organised crime is filling the gaps with illicit mini marts and barbershops acting as fronts for illegal goods and exploited labour. The paper says that without a fair tax environment that supports lawful traders, Britain’s high streets risk being overtaken by criminal enterprises.

Ministers are being urged to address a £2bn tax loophole that allows UK banks and specialist lenders to avoid corporation tax on payouts to motor finance scandal victims. Currently, non-bank entities can deduct compensation payments from profits. While banks lost the right to do so in 2015, those due to pay redress as part of the car loan compensation scheme could exploit the rule as their motor finance arms are considered non-bank entities. This loophole could cost the Treasury £2bn over the next two years, according to the Office for Budget Responsibility.

Brian Gilvary, chairman of Ineos Energy, has warned that Britain’s energy security, jobs and investment are at risk because the Government has opted to maintain  a 38% levy on North Sea oil and gas profits, pushing the total tax rate to 78%. He argued that the policy is driven by “ideology without logic” and is causing an investment exodus, threatening thousands of skilled jobs and reducing tax revenue, which has already halved since 2022. With North Sea output forecast to fall sharply by 2030, Mr Gilvary said the windfall tax is accelerating decline and shifting production, jobs and taxes overseas.

The UK Government plans to eliminate the work-from-home tax relief in April 2026, affecting around 300,000 workers. Basic rate taxpayers will face an additional £62 annually, while higher and additional rate taxpayers will pay £124 and £140 more, respectively. This relief, introduced during the COVID-19 pandemic, allowed workers to earn £6 tax-free. Kate Underwood, Founder of Kate Underwood HR and Training, stated: “The Government’s thank-you gift is basically: ‘About that £6 a week, we’ll have that back now’.” Financial experts criticise the decision, highlighting the financial strain on remote workers.

Labour’s proposed inheritance tax (IHT) changes could significantly impact family farms, according to an independent report by Baroness Batters, former president of the National Farmers’ Union (NFU). The report, expected to be published soon, highlights that a 20% tax on inherited agricultural assets over £1m from April 2026 will pressure farmers. While the Government claims the measures target tax avoidance, farming groups argue that removing the agricultural exemption from IHT discourages investment. Rachel Reeves, the Chancellor, announced a minor concession for married farmers, but the NFU has warned that it is insufficient.

Nearly 500 businesses have faced multiple withdrawals from their bank accounts due to a technical issue in the Government’s Extended Producer Responsibility (EPR) scheme. PackUK, responsible for the scheme, confirmed that 484 producers were affected, resulting in significant financial losses. Benchmark Drinks, led by CEO Paul Schaafsma, reported three identical withdrawals totalling £700,000. Schaafsma said: “To be taking three times your EPR amount out of your account is just irresponsible.” Although PackUK promised refunds by December 5, Benchmark had not received theirs by the deadline. Defra acknowledged the issue and stated refunds were being processed.

UK banks and specialist lenders may avoid £2bn in tax on compensation payouts due to a loophole which allows them to deduct payments from profits before calculating corporation tax. Although banks have been barred from this since 2015, their motor finance arms qualify as “non-bank entities.” Bobby Dean, a Liberal Democrat MP, stated: “It’s not right that the taxpayer is set to lose out on billions due to a loophole in compensation rules.” The Office for Budget Responsibility confirmed the tax loss – linked to the Financial Conduct Authority’s proposed motor finance compensation scheme – will occur over the next two years.

The Financial Conduct Authority (FCA) will introduce new measures to promote a culture of retail investment in the UK. Sarah Pritchard, FCA’s deputy chief executive, stated that the changes aim to encourage consumers to invest rather than keep savings in cash. The FCA plans to allow firms to provide tailored investment recommendations based on shared characteristics, moving away from generic warnings about capital risk. Simon Walls, FCA’s executive director of markets, mentioned additional measures, including a revised definition of professional investors, will be announced soon.

The Chancellor is facing criticism after the Office for Budget Responsibility (OBR) warned that government borrowing is on a “very frightening” path. Despite her claims of falling debt, the OBR projects that debt will rise from £2.8trn this year to £3.5trn by 2031, costing a cumulative £750bn in interest. Professor David Miles stated: “The trajectory of government debt has been up and up and up.” Concerns grow over the sustainability of this debt, with calls for Rachel Reeves to clarify her fiscal policies amid scrutiny from MPs and the media regarding pre-Budget leaks.

Analysts warn that the Bank of England’s anticipated interest rate cut of 25 basis points may be a “closer call” than markets expect. While markets predict a drop to 3.75%, economists from Oxford Economics, Andrew Goodwin and Edward Allenby, highlight divisions within the Monetary Policy Committee (MPC). They noted that recent surveys indicate rising inflation expectations, which could complicate the decision. “The decision will come down to which group Governor Andrew Bailey sides with,” they stated. The upcoming price growth data could be crucial in determining the outcome of the MPC’s meeting in December.

A Savanta poll shows that 67% of potential Labour voters prefer rejoining a customs union with the EU rather than facing tax increases. The poll, commissioned by the Liberal Democrats, indicates that 52% of all UK adults share this preference. This comes after the Prime Minister rejected advice to rejoin the customs union, opting for £26bn in tax hikes in the recent Budget. Deputy Prime Minister David Lammy stated that rejoining could enhance economic growth, claiming Brexit has harmed the UK economy. The Liberal Democrats have proposed a bill for a parliamentary vote on this issue.

London homeowners are selling properties at a greater loss than those anywhere else in England and Wales, with 14% of owners selling for less than they paid, according to estate agency Hamptons. This figure is up from 6% in 2016 and is well above the national average of 8.7%. The report also shows that first-time buyers now account for 50% of purchases in London. Hamptons predicts flat growth in house prices for 2026 due to tax changes, including a council tax surcharge on properties worth £2m or more.