Tony Dalwood, chief executive of Gresham House, warns that undervalued UK-listed companies are increasingly becoming takeover targets, with deals involving British-listed businesses exceeding $100bn (£74bn) over the past year. Recent approaches for Bodycote, Gamma Communications and Capricorn Energy follow easyJet’s move into private ownership. Dalwood says weak valuations and limited access to growth capital are encouraging companies to accept private equity bids or leave London. Gresham House itself went private in 2023 after its AIM valuation fell below what management considered fair value, subsequently gaining greater access to capital. Dalwood believes tax, regulation and short-term investment incentives are contributing to the trend and calls for reforms encouraging long-term capital investment and helping UK businesses remain publicly listed.

European financial institutions have significantly reduced the transatlantic pay gap at board level, with non-executive remuneration in Europe rising 10% in 2025. According to an EY analysis, average pay for European financial services boards reached $314,148, while North American boards averaged $350,847. Omar Ali, EY’s global financial services leader, said: “The rising gap between remuneration for chairs and other directors… suggests firms are placing a larger financial premium on the personal accountability.” Despite progress, a gender pay gap persists, with female non-executive directors in Europe earning 38.9% less than their male counterparts. Meanwhile, analysis from advisory firm WTW shows that median total remuneration for FTSE 100 bosses has risen to £5.1m, up from £4.6m in 2025.

Office for National Statistics (ONS) data shows that private sector wage growth slowed to 2.9% in the three months to July, its lowest level since October 2020. This compared with 6.3% growth in the public sector. Overall earnings increased by 3.5% excluding bonuses and 3.9% including bonuses. The wider jobs market also showed signs of weakness, with unemployment holding at 4.9%, payrolled employment estimated to be 101,000 lower than a year earlier and vacancies falling by 8,000 to around five-year lows. Thomas Pugh, chief economist at RSM UK, commented: “With inflation also at 2.9% in July and set to rise higher over the rest of the year, a real terms pay cut for private sector workers looks extremely likely.”

A deterioration in the public finances means Prime Minister Andy Burnham may need to deliver tax increases or spending cuts in the upcoming budget. The Resolution Foundation believes that the Government’s headroom has fallen to between £5bn and £10bn, from around £23bn. The Office for Budget Responsibility has reportedly entered the ten-day forecast period when it assesses the state of the economy.

Families will face unexpected inheritance tax charges on gifts left through charitable trusts due to recent changes by the Government. Previously, gifts to charitable trusts were tax-free if accompanied by a letter of wishes. Now, HMRC will assume these gifts are taxable at 40% unless legal paperwork is completed within two years. The new rules apply to deaths from April 6, 2026, and could affect many individuals unaware of the changes. Emma Chamberlain from the Chartered Institute of Taxation said: “It is hard to see what this change is for,” adding: “If the concern was abuse involving foreign charitable trusts that cannot be monitored, that could have been targeted directly.”

Analysis by NFU Mutual shows that inheritance tax (IHT) on gifts has significantly impacted hundreds of families, with over £1bn paid between 2020 and 2024. In 2023/24, IHT on lifetime gifts raised £315m, affecting 1,390 estates with an average payment of £226,000. This compares to 2020/21, when the IHT take came in at £256m. In total, £1.094bn was raised over the four years. Under HMRC rules, if a person dies within seven years of passing on a gift, it can be brought back into the inheritance tax calculation.

The Government is implementing stricter regulations for businesses regarding remote work requests. Louise Haigh, a senior minister, announced that companies must provide face-to-face explanations for denying flexible working requests. This initiative is part of Labour’s pro-worker agenda, following the Employment Rights Act. Union leaders, including TUC general secretary Paul Nowak, praised the move, saying that it enhances workers’ rights and acknowledges the importance of flexibility for those with caregiving responsibilities.

The number of graduate vacancies at top employers has decreased for the fifth consecutive year, according to the Times‘ Top 100 Graduate Employers 2026/27. Vacancies fell by 2.7% this year, with a total of 22,640 openings projected for 2027. The civil service remains the top employer, followed by the NHS and Deloitte, which overtook PwC for the first time.