Small businesses have welcomed new legislation aimed at curbing late payments, calling it a “historic moment.” The King’s Speech introduced measures that empower the Small Business Commissioner to investigate and fine firms that consistently delay payments. The Late Payments Bill enforces a maximum payment term of 60 days and mandates interest for late payments at 8% above the Bank of England’s base rate. Tina McKenzie, policy chair of the Federation of Small Businesses, said: “The formal commitment to legislation to stamp out late payments is an historic moment for small firms.” Data shows that payments cost the UK economy £11bn annually.

The Government has introduced the Regulating for Growth Bill, granting ministers new statutory powers to guide regulators in delivering growth. This legislation aims to address the current regulatory system’s “lack of agility and responsiveness to innovation and change,” which the Government warns is undermining the UK’s competitiveness. The Bill intends to give key regulators a “clear, statutory mandate to prioritise growth without undermining their important core function.” The Bill also outlines plans to streamline the complaints system for the Financial Ombudsman and includes the consolidation of the Payment Systems Regulator into the Financial Conduct Authority, which was announced last year. It also seeks to scale back the Senior Managers and Certification Regime by removing direct regulatory vetting for around 50% of mid-to-senior roles.

UK business leaders are increasingly pessimistic about the domestic economy, according to a survey by Baker Tilly. The research, which involved 1,500 executives from mid-sized companies across nine markets, found that UK leaders are among the most likely to consider relocating operations to countries with more stable tax and regulatory environments. The survey also revealed that UK organisations are the second most likely to delay or cancel significant investments due to uncertainty from rapid policy changes. Baker Tilly said: “The current climate is causing many to rethink their strategies.”

Sir Keir Starmer has announced a legislative package aimed at steering the UK in a “new direction” during the King’s Speech. He emphasised the need for reforms in response to global conflicts, saying: “We will unblock the barriers to growth and prepare our country for a world where external shocks like this are ever more frequent,” but insisted that “the fundamentals of our economy remain sound.” The Prime Minister also outlined an intention to strengthen ties with the EU, saying that he would be “setting a new direction for Britain” at an upcoming EU summit, with an aim of “putting Britain at the heart of Europe.”

Analysts at Goldman Sachs have warned that Rachel Reeves may see the Treasury’s fiscal headroom reduced by £12bn due to internal conflicts within the Labour Party. The report says political instability could hinder the Chancellor’s ability to fund significant initiatives, such as defence spending or energy support. Goldman Sachs noted that uncertainty around fiscal tightening could arise if the Government shifts left, potentially leading to increased borrowing. The bank added: “Our markets team expects the repricing of gilt yields to remain sticky given upside risks to inflation.”

The number of successful e-money licence applications has fallen by 80% in five years, with the Financial Conduct Authority approving 35 in 2025 compared to 171 in 2020. The overall number of licence applications hit 155 in 2025, down from 371 in 2020. The decline raises concerns about market growth, with analysts noting that an expected influx of new firms has not materialised. They suggest that despite Treasury efforts to promote growth, the regulatory landscape has become more challenging. While companies like Klarna, Plum, and Tenora have secured licences, experts say commercial pressure from a more saturated market, as well as increased regulatory pressure, have had an impact on the number of applications.

Many sole traders are unprepared for the upcoming Making Tax Digital (MTD) deadline on August 7, with research from Sage revealing that 70% lack understanding of the new requirements. Only 8% are using MTD-compatible software to manage their tax records. Under MTD, sole traders earning over £50,000 must keep digital records and submit quarterly updates to HMRC.

The Resolution Foundation has urged the Government to increase taxes on wealthy households and reconsider the pensions triple-lock. A report from the think-tank recommends reforms including higher income taxes, council tax adjustments, and changes to capital gains and inheritance taxes. It says a “reset” should “double down on growth and focus on those who have borne the brunt of long-term economic stagnation: young people and working families,” adding: “Their needs should be prioritised over advantaged wealthier households, who have benefitted from Britain’s 40-year wealth boom.”

Analysis by Deloitte suggests that financial pressures are causing British Gen Z (aged 14-29) and Millennials (aged 30-45) to postpone significant life decisions. The Big Four firm’s annual Gen Z and Millennial Survey saw around 40% of respondents say they are delaying milestones like marriage and career advancement due to financial strain, with many living “payslip to payslip.” Over half of Millennials said they see the cost of living as a “top concern” affecting their work and personal decisions, as did 44% of Gen Z. Despite these challenges, both generations were shown to prioritise work-life balance as their top career goal, with only 5% interested in leadership roles due to concerns about burnout.