The Institute of Directors (IoD) warns that Labour’s policy uncertainty and ongoing tax speculation are damaging business confidence in the UK. A poll of over 500 business leaders revealed a slight decline in confidence in July. IoD chief economist Anna Leach said: “Looking towards the autumn, there’s a risk that cost pressures rise further in light of renewed conflict in the Middle East, reinforcing the squeeze on households and businesses. Businesses also note that policy uncertainty has worsened as the UK undergoes a further change in political leadership.”

Frank Elderson, a member of the European Central Bank’s executive board, has warned that the climate crisis and ecosystem collapse pose significant risks to the global economy. He said the ECB is enhancing its monitoring of financial risks linked to declining ecosystem services – nature-related processes or assets that support human activity. Elderson noted: “These services are not stable but they are in rapid decline.” The ECB plans to publish an analysis on how ecosystem degradation could affect credit loss dynamics for eurozone banks later this year.

Labour’s recent tax policies have led to the closure of 160,415 businesses in six months, according to the Sun, with new business openings at their lowest in a decade. Ex-Chancellor Rachel Reeves’s £25bn tax increase has made hiring more expensive, says Shadow Chancellor Mel Stride, while Shadow Business Secretary Andrew Griffith noted that many entrepreneurs are reconsidering their plans.

According to a poll by The i Paper, 66% of British voters support a wealth tax on assets exceeding £10m. Only 10% oppose the idea, which has garnered backing across political lines. Prime Minister Andy Burnham has not dismissed the concept, stating: “I’m not going to rule things out right now.” Economists estimate that such a tax could generate £10bn annually, impacting the wealthiest 1,000 households. While Labour and Liberal Democrat voters show the strongest support, Conservative and Reform voters also back the proposal, with 61% and 63% in favour, respectively. Equalising capital gains tax with income tax had a split in support along conventional political lines.

Andy Burnham faces pressure to raise the personal tax allowance to £18,000 as a petition approaches 100,000 signatures. But the Treasury responded by saying there are no plans to increase the allowance, citing a fiscal cost of over £40bn annually.

The Financial Conduct Authority (FCA) has revealed that share trading in London is three times larger than previously estimated. The FCA is referring to “dark trading” outside stock exchanges, indicating that many trades go unrecorded. The regulator released the data as part of its plans for a “consolidated tape”, which will show share trading wherever it takes place, but this has been delayed until 2028. John Healey, the new Chancellor, is facing calls to boost share trading and slash or abolish stamp duty on share trades.

Keith Grose, the UK chief executive of Coinbase, speaks to City AM about crypto rules recently introduced by the Financial Conduct Authority (FCA). Grose says the regulations will eliminate non-compliant firms and enhance consumer trust. The FCA’s measures include higher resilience standards and a framework to combat market manipulation. Coinbase has been granted authorisation in the UK to provide traditional financial instruments on its platform allowing it to compete with platforms such as AJ Bell and IG.

Small businesses will face increased challenges due to the Employment Rights Act, effective January 1, the Mail reports. Employees can claim unfair dismissal after six months instead of two years, limiting employers’ time to assess new hires. The cap on compensation for unfair dismissal claims will also be removed. Katie Nightingale, Director of People Consulting at Grant Thornton UK, warned: “Businesses are already squeezed in a slow economy so will naturally have concerns about investing in training for managers.”

The UK economy may face significant challenges due to the ongoing conflict in Iran, according to EY. The consultancy has revised its growth forecast for the UK to 0.9%, contingent on the Strait of Hormuz remaining open for oil and gas supplies. EY’s chief economist, Peter Arnold, warned that prolonged energy price disruptions could lead to a growth slowdown to 0.5% this year and a contraction of 0.2% next year. Inflation is expected to reach 3.5% by year-end, but could spike to 6.4% under adverse conditions.

The EU’s Scaleup Fund, worth €5bn, faces new challenges as France seeks to block UK participation. French officials have requested clarification from the European Commission regarding the UK’s contributions, arguing that the fund should benefit EU member states. The UK has pledged €150m in seed capital, and the Commission previously acknowledged mutual benefits in UK involvement. However, France is now demanding further concessions. The next EU-UK reset summit date remains uncertain after Keir Starmer’s resignation, adding to the ongoing tensions.

BP has put its UK North Sea business up for sale, sparking calls from politicians and business leaders for the UK to relax its current tax regime. The company, which has five oil and gas hubs in UK waters, said the move was part of an ongoing review of the business. But with an effective 78% tax rate on energy profits and a ban on new drilling under Labour, North Sea operations are looking less viable. Experts say BP could now look to shift its HQ from London to New York, costing the Treasury millions in lost stamp duty.

The Premier League is projected to contribute £33bn to the UK economy and generate nearly £15bn in tax revenue over the next three seasons, according to EY analysis. The league’s economic impact has increased significantly since 1998-99, with average contributions expected to rise to £11bn per season. Notably, two-thirds of this value comes from outside London, with £5.9bn added in regions like the northwest. Peter Arnold, chief UK economist at EY, commented: “These impacts illustrate how domestic success, international appeal and reinvestment across football and communities reinforce one another.”