Chancellor John Healey has promised that next week’s Budget will reduce the “cost of business”, cut regulation and support entrepreneurs. He acknowledged that higher employer National Insurance contributions, minimum-wage increases and supply-chain pressures have intensified strain on companies. The Budget is expected to abolish reporting requirements for many smaller enterprises and remove regulatory “sludge”, supporting earnings and investment. For owners considering an exit, Healey has ruled out raising capital gains tax because of concerns about its chilling effect on business investment. Healey said he wants to back the entrepreneurs who “are the ones who challenge the status quo, come up with innovative ideas and are trying, some of them through sheer bloody-mindedness, to keep going through these sorts of pressures.”

UK consumers’ confidence in the economy fell to -40 in October, marking a third consecutive monthly decline, according to the British Retail Consortium. Expectations for personal finances also weakened to -18, although spending expectations rose from five to 15 ahead of Christmas. Retailers said employer National Insurance, business rates and wage increases had contributed to a 20% rise in industry taxation over two years.

UK inflation rose from 3.1% to 3.5% in September, while public sector net borrowing reached a worse-than-forecast £24.5bn. September debt interest hit a record £10.9bn, including £4bn attributable to inflation, and borrowing in the financial year to date was £6bn above the official forecast. Fuel disruption pushed petrol up 8.2p a litre and diesel up 10.7p during the month. Higher transport and financing costs could weaken company margins while reducing the debt buyers can afford to place behind acquisitions, creating a tougher environment for sellers seeking premium valuations. Economists expect the Bank of England to raise its 3.75% base rate in November, one week after Chancellor John Healey’s first Budget. Inflation could exceed 4% in the new year, with a second increase possible in 2027, despite August GDP growth of 0.1%.

EY tax policy leader Chris Sanger has called for an investment-ready tax strategy based on clearer direction, modernisation and correction. Around a third of international investors identified tax competitiveness as a weakness in EY’s latest UK Attractiveness Survey. Proposals include reviewing reliefs and thresholds, replacing the £12,570 personal allowance with a tax credit to remove the effective 60% marginal band between £100,000 and £125,140, and using digitalisation to reduce administration. Sanger also argued for clearer consultation and implementation procedures.

A proposed £2bn bank tax would increase the corporation surcharge on lenders’ profits from 3% to 8%, according to The Daily Telegraph. The measure comes as Government debt exceeds £3tn, inflation reaches 3.5% and the Bank of England is expected to raise its base rate to 4%. If lenders respond by increasing prices or restricting credit, prospective buyers could find acquisition finance more expensive and harder to secure. The CBI warned that taxing banks more heavily would hurt growth, while former Bank economist Andy Haldane said it would repel investors.

Allen Simpson, chief executive of UKHospitality, says the Government abandoned plans for a warehouse tax due to concerns about potential trade repercussions with the US. Prime Minister Andy Burnham had suggested that business rates on out-of-town warehouses could be hiked to support high street shops. However, Chancellor John Healey has ruled out the proposal.

UK job vacancies have fallen to a five-year low as small and medium-sized businesses report rising employment costs restricting recruitment. SMEs account for about 60% of UK jobs, while small and micro businesses employ more than 13m people and generate £1.9tn. Employer National Insurance increased from 13.8% to 15% in April 2025 and its payment threshold fell from £9,100 to £5,000, although the Employment Allowance rose to £10,500. Owners are asking the Chancellor to reduce employment costs in the Budget. Payroll pressure may constrain growth and margins, weakening forecasts on which buyers base offers.

MPs on the Business, Innovation, Science and Trade Committee have criticised the Government for rejecting 13 of 47 recommendations designed to boost UK investment, including further London Stock Exchange reforms, tax incentives for investors, expanding venture capital and consolidating public finance institutions. The Venture Capital Trust Association has called for the rate of VCT income tax relief to be increased from 20% to the previous rate of 30%.

The Public Accounts Committee has warned that the UK will fall behind in the global tech race unless it enhances support for start-ups to remain competitive. Chairman Sir Geoffrey Clifton-Brown said that UK Research and Innovation should take more equity stakes in funded companies to ensure taxpayers benefit from successful innovations. The report highlights that UK firms struggle to secure capital for scaling, despite producing more patents than US counterparts.

Marks & Spencer food development director Kathryn Turner, has become a social media star, with her behind-the-scenes videos amassing about 50m views in six months. Gillian Brooks, associate professor of marketing at King’s College London, said Turner’s appeal “lies in the sense that she offers an insider’s perspective on M&S that feels human, relatable and unscripted.”