The Government has announced a major overhaul of corporate reporting to cut bureaucracy and save businesses more than £450m a year. The reforms would ease reporting and audit requirements for SMEs, introduce a digital-first approach to shareholder communications and explore greater use of AI to automate compliance. The average annual report is now 98,000 words, rising to 152,000 for FTSE 100 firms. City AM notes that the Government’s plans follow the decision to scrap the proposed Audit Reform and Corporate Governance Bill, which would have replaced the Financial Reporting Council with the more powerful Audit, Reporting and Governance Authority. ICAEW chief executive Alan Vallance declared his support for the plans but urged the Government to “take time to ensure all stakeholders are listened to” ahead of “such transformative change” to the reporting regime. The plans have been welcomed by business groups including the Confederation of British Industry and Federation of Small Businesses.

The UK has the second-worst investment record among OECD nations, only ahead of Greece, according to a report by Oxford Economics. The country has missed out on nearly £2trn in investment since 2000, primarily due to high taxes, unpredictable policies, and costly energy. The report says: “Had the UK invested at the average rate of its G7 peers since 2000, cumulative investment would have been around £1.9trn higher by 2025.” The report warns that without addressing the discouraging environment for private sector investment, Government efforts alone will not suffice to stimulate growth.

UK foreign direct investment fell 21% to £54bn in 2025, with sovereign wealth and public pension fund investment also declining. The City of London Corporation has warned that Britain is “losing ground” to international competitors amid concerns over Labour’s tax rises, including changes affecting non-doms, inheritance tax and employer National Insurance, as well as high energy costs and planning delays. There are fears further tax rises could deter wealthy entrepreneurs and investors. Despite the fall in overseas investment, total UK investment rose 5% to £4.1trn, driven by domestic activity.

Chancellor John Healey has outlined his strategy to stimulate economic growth in the UK, declaring a commitment to “controlling borrowing to bear down on inflation and reducing long-term pressures on our public finances.” Saying that the Government will “draw a line” under rising costs for businesses, Mr Healey pledged to control government spending while addressing high borrowing costs. The Chancellor, who said he has a mission to “make Great Britain, Growth Britain again,” said he plans to reform judicial review processes to facilitate infrastructure projects and aims to double the number of unicorn firms.

John Healey has refused to rule out further tax rises ahead of his first Budget in October, saying: “If I respond to speculation now, that will only fuel more speculation.” The Chancellor stressed that the government must meet its fiscal rules, balance the books and maintain a buffer against economic uncertainty, while controlling borrowing and the growing cost of debt interest. Mr Healey did, however, say that the Government is “keeping” 2024 manifesto pledges which ruled out increases to income tax, VAT and National Insurance. Conservative Shadow Chancellor Andrew Griffith said Mr Healey has “failed to end uncertainty by ruling out more tax rises.”

The London Chamber of Commerce and Industry (LCCI) has urged Chancellor John Healey to avoid further tax increases, warning that hikes could hinder economic growth. LCCI chief executive Karim Fatehi said the Chancellor must have “clear objectives in mind at this Budget,” including “meaningfully lowering the cost of doing business.” The Government is reportedly considering tax hikes to fund initiatives including a £5bn boost for defence. Economists warn that tax increases or spending cuts may be necessary to adhere to fiscal rules.

Britain’s job market is in decline, with vacancies falling for the 34th consecutive month, according to the Recruitment and Employment Confederation and KPMG. The report says employers are holding back on recruitment amid geopolitical uncertainty, higher borrowing costs and rising employment expenses. The survey also found more people seeking work, with redundancies increasingly cited as a factor. Employers continue to blame higher employer National Insurance, increases in the minimum wage and new employment rights for raising hiring costs. High energy prices and fears over interest rates are adding to pressure. There was a positive sign, however, as permanent placements rose for the first time in four years.

The Eastgate Shopping Centre in Inverness is being put up for sale for £18.5m, significantly below the £116m paid for the property in 2015. Retail experts said the reduction in the value reflected a wider repricing of traditional retail property in the face of challenges from online shopping and the loss of big department stores.