Takeover activity on the London stock market has accelerated this year, with bidders offering an average 45% premium for listed companies as overseas buyers, particularly from the US, target undervalued UK firms. Since 2023, 154 UK companies worth £165bn have received takeover bids, far outstripping new London listings, fuelling concerns that the market is being hollowed out. Michael Field, chief European equity analyst at Morningstar, notes that the UK market is strategically targeted due to its undervalued companies. He warned that this trend could harm long-term market health, reducing investor choice.

Andy Burnham has not ruled out reinstating the 50p top tax rate, saying there is “definitely a case” for it. The new Prime Minister also expressed concern over the impact of frozen tax thresholds on low-income pensioners, saying that the fact the threshold being held at £12,570 has “dragged more people in” has become “a growing issue.” Mr Burnham defended comments about there being “room for movement” on tax, arguing he is not simply a “tax raiser” and that any measures to ease the cost of living would be fully funded. He also said he would make full use of any borrowing flexibility allowed under Labour’s fiscal rules while maintaining a “prudent” approach. Critics warned that reviving the 50p rate would break Labour’s manifesto pledge not to raise the main rates of income tax, while the Conservatives argued any tax cuts should instead be funded through tighter control of public spending rather than higher taxes or increased borrowing.

Nearly 22.1% of taxpayers now pay higher income tax rates, according to HMRC figures. This includes 7.7m individuals paying 40% on earnings over £50,270, a rise of 1m in two years. Additionally, 1.3m are subject to the 45% additional rate for income above £125,140. Jason Hollands from Evelyn Partners noted: “Many will be surprised to discover they have become higher-rate taxpayers without feeling significantly better off.”

Jamie Dimon, CEO of JPMorgan, has cautioned Andy Burnham against imposing additional taxes on banks, arguing that such measures could have “adverse consequences” for the UK economy. Mr Dimon emphasised the importance of growth-oriented policies and highlighted the risk of companies leaving the UK due to high taxes. The Trades Union Congress claims that restoring the bank surcharge could generate £9bn over four years.

Andy Burnham has been urged to accelerate office construction in Central London to enhance productivity and growth. The London Property Alliance, representing 300 major property developers, has written to the Prime Minister, advocating for Central London offices to be classified as critical economic infrastructure. Over the past five years, 14m sq ft of office space was lost, and major commercial planning applications have dropped by 54% in the last decade. LPA chief Charles Begley said: “London must be able to deliver the modern workspaces needed for businesses to grow.”

The British Business Bank reported a pre-tax profit of £426m for the year ending March, nearly tripling from £144m the previous year. This surge is attributed to recovering venture valuations and improved liquidity in its investments. The bank, established in 2014, has increased its financial capacity to £25.6bn, allowing for a two-thirds rise in annual investments to £2.5bn. It supported £9.4bn in finance for smaller businesses. Chief executive Louis Taylor noted that fluctuations in results are expected due to multi-year investment cycles, saying: “The bank is ultimately focused on delivering realised returns.”

UK pension funds are significantly more exposed to shadow banking than their European peers, according to a report by S&P Global. British fund managers have 8.8% of their assets in private credit, compared to 4% for European insurers. Legal & General, Standard Life, and Just Group each have over 10% invested in illiquid private credit. This high exposure raises concerns about the risks within the UK pension system and Andrew Bailey, Governor of the Bank of England, has warned that pension funds are dangerously intertwined with the private credit market.

The British Chambers of Commerce (BCC) says it can support Prime Minister Andy Burnham’s economic agenda as he looks to deliver “growth in every postcode.” While Mr Burnham has promised to promote growth across the UK and decentralise power from Westminster, the BCC cautioned that he will encounter similar challenges as previous leaders in achieving economic growth. Kate Shoesmith, director of policy at the BCC, said: “We’ll be reinforcing how Chambers are a natural delivery partner for growth-focused projects.”

Analysis by the Office for National Statistics shows that 35% of UK businesses used AI in the past year, up from 12% three years ago. This places the UK as one of the leaders in AI use across Europe but it still sits behind the US, where 43% of employees utilise the technology. The highest adoption rates in the UK are found in information and communications, at 58%, while only 13% of construction workers use AI. Meanwhile, a Deloitte survey has revealed that 73% of UK chief finance officers believe AI will enhance business performance, an increase from 59% previously.