Business groups have reacted to Chancellor John Healey's Autumn Budget speech.

The Confederation of British Industry (CBI) said that the Budget 'does not meet the scale of the Government's ambition'. Rain Newton-Smith, Chief Executive of the CBI, said: 'On the face of it, this Budget lacks the bold moves that would have made it easier for firms to invest, hire and grow.

'Fiscal discipline matters, and the Chancellor is charting a path through difficult circumstances. At a time of exceptional geopolitical pressures, using some fiscal headroom to absorb genuine short-term shocks is preferable to loading additional permanent costs onto business and weakening investment.'

The Federation of Small Businesses (FSB) stated that the Autumn Budget 'misses the mark' on helping small firms with their costs and jobs.

Tina McKenzie, National Chair of the FSB, said: 'This Budget should have been the moment to help small businesses with the soaring costs holding them back, and the taxes restricting job creation. Instead, they got nothing to ease sky-high energy bills and nothing to make hiring someone more affordable, while the increase in business rates relief excludes too many.'

Meanwhile, the British Chambers of Commerce (BCC) labelled the Budget as 'a steady approach' but warned growth was ultimately missing.

Shevaun Haviland, Director General of the BCC, commented: 'This was a 'steady as you go' Budget, sending the right signals to business, but lacking big calls that would really shift the economic dial.

'Most sectors will be pleased to have avoided any further taxes being piled upon them. But, overall, most businesses won't notice this Budget at all.'

The Institute of Directors (IoD) said that business leaders will be relieved that the Budget 'included no nasty surprises'. Jonathan Geldart, Director General of the IoD, said: 'There is still some way to go for the Government to win back the trust of British businesses, who will be looking for measures and assurances in the upcoming Ten Year Plan that restore long-term confidence in the UK economy enabling them to invest and grow.'  

Internet links: CBI FSB BCC IoD

HMRC expects that more than one million taxpayers will be required to use digital recordkeeping and send quarterly updates to HMRC when the second phase of Making Tax Digital (MTD) for Income Tax is extended to individuals with qualifying self-employment and property income over £30,000 from 6 April 2027.

With HMRC data suggesting that 37% of this cohort do not have an authorised agent, this could represent a significant shift in how taxpayers are dealing with HMRC, and how frequently. HMRC are encouraging taxpayers to start preparing now so they can ensure details are correct and have time to choose the best software for them.

Craig Ogilvie, HMRC's Director of Making Tax Digital, commented:

'Signing up now means you can prepare and familiarise yourself with the process before it becomes mandatory next April.'

Those with income in excess of £50,000 have been mandated into MTD since April 2026; for them, the next milestone is the second quarterly update due on 7 November 2026. From September 2026, HMRC has started to automatically enrol anyone who should be using MTD for Income Tax for 2026/27 but has not yet signed themselves up.

The next phase of the MTD rollout will be to extend to sole traders and landlords with income in excess of £20,000 from April 2028.

Internet link: HMRC

Nearly 90% of rural businesses have paused investment, a survey by the Country Land and Business Association (CLA) reveals, and 70% are worried that their business will not survive the next 10 years.

The survey of 700 businesses was undertaken following the introduction of a £2.5 million cap on 100% Agricultural and Business Property Relief for Inheritance Tax from April 2026. Nearly 85% of respondents expected the cap would not cover the value of their businesses with almost 50% stating they'd have to sell up to a quarter of their land to cover the expected resultant tax bill.

With the Autumn Budget only a few weeks away, the CLA is calling for the IHT reforms to be scrapped. Gavin Lane, CLA President, said:

'Families who've spent decades building up their businesses are being forced to shrink them down again just to keep hold of them. They are scaling back ambitions, letting buildings deteriorate, and stripping out value, all to pass on businesses that may no longer be profitable.'

The latest statistics on the labour market released by the Office for National Statistics (ONS) show a decrease of 21,000 in the number of vacancies compared to the previous quarter. The decrease is mostly attributed to smaller firms who suggest increased labour costs have slowed recruitment.

In addition, the estimate for payrolled employees in the UK fell by 111,000 (0.4%) between August 2025 and August 2026. Commenting on the data, Alex Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors said:

'Demand for labour has been undermined by a succession of employment policies which have increased the cost and risk of hiring staff. The labour market is unlikely to strengthen until the Government tackles this cost of employment crisis.'

UK unemployment was estimated at 4.7% for June to August 2026, down 0.1% on the year and the last quarter. Unemployment for those aged 16 to 24 was 15.6% for the three-month period, down from 16.4% in the previous three months but higher than the rate seen in the equivalent period last year (14.6%). Youth unemployment remains a government focus with Work and Pensions Secretary Pat McFadden commenting on the release of the Industrial Strategy Jobs Plans:

'Too many young people have been locked out of opportunities for too long.'

Other data released showed annual growth in average regular earnings (excluding bonuses) was 3.7% in June to August 2026 and had been relatively stable. Adjusted for inflation, annual growth in real terms was 0.8%.

Internet links: ONS gov.uk

Last week, the government issued a consultation on targeted reforms to the employment status framework for employment rights as part of the 'Plan to Make Work Pay'.

Proposals of note included placing less emphasis on personal service when determining worker status and instead focusing more on factors like control. The intention here is to avoid 'substitution clauses' in contracts which don't necessarily reflect the reality. In addition, the consultation suggests improving compliance by including a 'presumption of worker status'; the burden of proof of status will be shifted to the employer. 

The consultation focuses solely on employment rights and any changes made as a result will not necessarily impact IR35 or off-payrolling status for tax purposes. Some commenters consider this to be a missed opportunity: IPSE's Head of Policy and Research, Josh Toovey, said:

'Tax and employment rights are two sides of the same coin. Yet we continue to have separate systems, creating confusion for individuals and businesses and leaving the door open to inconsistent outcomes. This consultation was an opportunity to take a more joined-up approach and start addressing that problem.'

The consultation closes on 8 January 2027.

Internet links: gov.uk

From 8 October, near real-time petrol and diesel prices will be included on Google Maps in a move which is expected to help millions of drivers find the cheapest fuel in their local area.

Since February 2026, petrol stations have had to report any changes to their fuel prices within 30 minutes under the Fuel Finder scheme launched following a recommendation by the Competition and Markets Authority. Whilst this data is already in use across apps such as Waze, Petrol Prices and Confused.com, the integration with Google Maps is expected to help many more motorists.

Marking a step in the government's aim to tackle the affordability crisis, it is suggested that comparing prices can save car-owning households around £40 per year.

Minister for Energy Consumers Polly Billington said: 

'Tackling the affordability crisis is our first responsibility and for so many families and businesses, petrol and diesel are essential goods, not luxuries.  

'Accessing the cheapest fuel should be simple, which is why it is a gamechanger for near real-time fuel prices to be shown on Google Maps for the first time in the UK, helping drivers to find the best deal and save money at the pump.'

Internet link: gov.uk

Research published by the Pensions Policy Institute (PPI) estimates that there are approximately 3 million lost pension pots in the UK containing in the region of £18.7 billion of pension assets in total. The average value of each lost fund is £6,220.

The survey, which was sponsored by the Money and Pensions Service showed that over four out of five (81.88%) of lost pension pots were held by members aged under 55 citing potential reasons including patterns of employment and the impact of automatic enrolment resulting in individuals having multiple small pension pots.

For the first time the survey included some evidence on Defined Benefit (DB) pensions. Results suggested that lost DB entitlements existed and may be valuable enough to affect member outcomes although it was noted improved data would be needed to understand the full scale and impact.

Dr Suzy Morrissey, Deputy Director of the PPI, commented: 

'As the PPI's new figures show, lost pension pots remain a significant issue for savers, providers, and policymakers. At a time when pensions policy decision-making could particularly impact tomorrow's retirement adequacy challenges, the PPI is proud to provide an updated examination of this multi-billion pound policy issue potentially affecting millions of individuals.'

On 28 September 2026, John Healey delivered his first speech as Chancellor of the Exchequer at the Labour Party Conference identifying 'Backing Britain' as one of his main priorities. Business was identified as being of key importance and the speech recognised the impact that cost pressures could have on growth.

Jobs for young people was a central message. The National Wealth Fund will be used to create and support a further 130,000 jobs including expanding local apprenticeship services and restoring the Union Learning Fund to help people build new skills and adapt to changes such as the increasing role of AI.

The speech also focused on industrial growth. As well as the previously announced funding for British shipyards, the wider package or economic plans linked to the speech proposed that more flexible funding could be issued to buyers from certain countries to incentivise buying British.

The focus on the cost of doing business was welcomed by a number of business groups. Rain Newton-Smith, CBI Chief Executive, commented:

'By linking the cost pressures facing business to the wider challenge of raising living standards, the Chancellor showed an appreciation that a stronger economy depends on giving firms the confidence and capacity to create jobs, raise wages and invest.'

Groups remain keen to see how the aims will be put in place in the Budget. FSB National Chair Tina McKenzie said:  

'The broad theme of hope needs to be followed up with concrete pro-business, pro-growth changes that help small businesses.'

The Office for National Statistics (ONS) have released their latest estimates of employment, unemployment, economic inactivity, and other employment-related statistics for the UK.

Pay growth in the private sector fell to 2.9% in the three months to July, equalling the lowest rate since October 2020. The equivalent figure for the public sector was 6.3% largely driven by the timing of NHS pay settlements.

Under the triple lock, state pensions will grow by the highest of average wage growth, inflation or 2.5%. Whilst the inflation figure will not be confirmed until next month, it is unlikely to exceed the average wage growth released today of 3.9% giving pensioners a boost from next April.

Unemployment remained at 4.9% reflecting the continued pressure on businesses.

Julia Diniz, Economist at the Resolution Foundation, said:

'The big winners from today's ONS data are pensioners, who are set for another large rise in the state pension next spring thanks to the triple lock.

'The biggest losers are workers in the private sector who are already earning less than they were last autumn. With wage growth slumping to its lowest rate in nearly six years, the UK's private sector pay squeeze will tighten over the coming months as inflation rises.'

Data released by the Office for National Statistics (ONS) on 22 September 2026 showed the UK borrowed £18.3 billion in August 2026, up £2.9 billion on the same month last year.

Increased debt levels were partly attributed to the impacts of inflation causing a greater increase in spending than receipts received from taxes and elsewhere. Overall borrowing in the financial year to August 2026 was £77.3 billion, £2.2 billion less than the same period last year but £8.1 billion above the OBR forecast in March.

Nick Redpath, Research Economist at the Institute of Fiscal Studies warned against reading too much into any one set of monthly figures due to revisions being commonly made but stated:
'Both higher borrowing costs and higher inflation make life harder for a Chancellor who is looking to bring down borrowing and to spend more on government priorities.'

Internet link: ONS

The government recently launched an overhaul of corporate reporting that it hopes will save UK businesses more than £450 million per year.

As part of the changes, the government will replace paperwork reporting with digital systems and explore how AI can further drive efficiency.

Simpler rules will make British businesses more attractive to investors, the government said. In turn this will help to drive the creation of good jobs that make the country better off.

The government will tackle corporate reporting burdens by simplifying reporting rules for small and medium-sized enterprises (SMEs). It said such businesses 'often lack the resources to spend hours combing through paperwork'.

Business Secretary Jonathan Reynolds commented: 'For years, hardworking firms in this country have been weighed down by pen-pushing paperwork and frustrating costs, ticking boxes that do nothing to help them grow their business.

'We're stripping back outdated bureaucracy and building a common-sense system fit for a 21st-century economy. This will cut the cost of doing business, giving breathing room to bosses across the country, and free them up to focus on what they do best, creating jobs and growth.'

Internet link: Department for Business, Innovation, Science and Trade

In rules brought in under the Economic Crime and Corporate Transparency Act 2023, directors are required to verify their identity with Companies House or risk enforcement action and penalties.

Since 18 November 2025, newly appointed directors must verify their identity before acting as a director. Existing directors are required to verify during a 12-month transition period, when filing the company's next confirmation statement. The aim is to ensure that directors controlling businesses can be identified and held accountable in efforts to address the misuse of UK companies for criminal purposes.

Three directors were fined at City of London Magistrates' Court on Wednesday 16 September; two for continuing to act as directors despite not completing identity verification and one for 'failing to take reasonable steps' to prevent someone acting as director while unverified. The three directors were also prosecuted for failing to file confirmation statements within the statutory period.

Martin Swain, Director of Intelligence and Law Enforcement Engagement at Companies House, said:

'These cases send a clear message that identity verification is not optional. The vast majority of directors and people with significant control will comply with the new requirements, but where individuals fail to meet their legal obligations, Companies House will take appropriate enforcement action.'

Internet link: The Insolvency Service and Companies House

A recent report by the Financial Conduct Authority (FCA) found that whilst small and medium enterprises (SMEs) account for 60% of employment and 51% of turnover in the UK private sector, only 21% of the total value of UK business loans are provided to SMEs and 54% of SMEs are not using external finance in any capacity.

The report found that SMEs face a number of challenges accessing finance with 26% stating that accessing SME credit was complex and 39% that the costs of finance were too high.

The report also details FCA's plans to reduce regulatory frictions and other challenges identified including exploring ways to avoid duplication in customer checks through the use of digital verification, ensure the regulatory regime is proportionate and prioritising high-impact use cases.

Graeme Reynolds, FCA director of competition, said: 

'Small businesses need to be able to access the finance they need at the right time to start up, grow and invest. Our regulation is not a major obstacle - that does not mean the system works as well as it could.'

Internet link: FCA

Research carried out by insurer Simply Business has revealed that 47% of UK small business owners are using artificial intelligence (AI) tools.

The latest figure represents a significant increase compared to 2025, when just 22% of firms stated they actively used AI.

An additional 13% plan to start using AI in the next six to 12 months, Simply Business found.

Creating content, problem solving and generating ideas were amongst the top uses for AI, the research showed. 46% said they utilise AI to save time on administrative tasks.

Julie Fisher, UK CEO of Simply Business, said: 'Adaptability and resilience are central to the DNA of small business owners and time and again they've proven they're drivers of innovation - finding new ways to grow even in the face of challenging trading conditions.

'One of the most significant shifts we've tracked this year with our annual SME Insights Report is around AI adoption. Almost half say they now use AI in their business, up from 22% in 2025.'

Declarations of over than £1 million in capital gains from cryptoassets in the 2024/25 tax year were made by 240 individuals, according to data published by HMRC.  

The tax authority said the group accounted for a total of £717 million in cryptoasset gains during 2024/25.

This data is published as part of HMRC's annual Capital Gains Tax statistics. It is the first time HMRC has published this specific data, following the introduction of a dedicated part of the self assessment return for cryptoasset capital gains.

In the 2024/25 tax year, there were 17,600 individuals making Capital Gains Tax-liable disposals of cryptoassets such as Bitcoin, Ethereum and Dogecoin, HMRC reported.

Collectively, these taxpayers reported total cryptoasset disposal proceeds of £13.8 billion and gains of £1.38 billion. The data also shows that around 87% of individuals reporting cryptoasset gains were male and around 13% were female.

James Murray MP, Financial Secretary to the Treasury and Paymaster General, said: 'Taxes are due on cryptoasset gains just like any other gains, and we want to make sure people making gains from crypto know about what taxes they owe.

'This important work is supporting the government's efforts to close the tax gap, so that everyone pays their fair share towards our vital public services.'

Internet link: HMRC

From September 2026, HMRC intends to write to taxpayers who need to use the Making Tax Digital for Income Tax (MTD for IT) service but who have not registered to let them know HMRC has signed them up on their behalf.

HMRC will send letters confirming who needs to register for and use MTD for IT in the 2026/27 tax year.

Letters will arrive by post or can be viewed in HMRC online services depending on taxpayer preferences. The letters will be sent out in stages over the coming months and individuals will be contacted after HMRC has signed them up.

HMRC will also remind taxpayers that they need to use MTD compatible software to create and store digital records for their MTD sources of income; send quarterly updates to HMRC; and submit an end-of-year tax return.

Under the new late submission penalties, a penalty point is awarded where a quarterly update or tax return deadline is missed. Once a four-point threshold is reached, a financial penalty will be issued.

Internet link: Government

Prime Minister Andy Burnham has been urged to reverse changes to Inheritance Tax (IHT) at the upcoming Autumn Budget.

Farmers from around the UK have called on Mr Burnham to honour his pre-election pledge to 'look again' at the changes to Agricultural Property Relief (APR) and Business Property Relief (BPR).

Prior to the Makerfield by-election, Mr Burnham acknowledged worries regarding IHT changes and pledged to revisit the matter if he became Prime Minister.

From 6 April 2026, the government implemented a £2.5 million cap per person on 100% relief for APR and BPR. Originally, the reforms were proposed with a £1 million threshold, but this was increased to £2.5 million following pressure from the farming community and business groups.

The Ulster Farmers' Union (UFU) stated that the government 'has more work to do' to rebuild trust with the farming community.

An analysis carried out by the government has revealed that a crackdown on zero hours contracts could cost businesses £2.9 billion a year.

Employment reforms carried out by Labour will cut the number of hours employees can work before they must be offered guaranteed time.

An analysis published recently showed that the reforms could cost employers between £350 million and £2.9 billion based on the eventual threshold of hours the policy impacts.

Additionally, companies could face more administrative costs and less flexibility.

Around £1.2 billion in costs would come from businesses being forced to pay employees compensation for cancelled shifts.

However, government officials said the reforms could provide a boost of £10 billion to the UK economy as a result of better productivity and employee wellbeing.

Commenting on the matter, a spokesperson for the Trades Union Congress (TUC) said: 'The aim of this legislation is to stop this practice and give variable hours workers security and stability - so good employers have nothing to fear.'

Internet link: Government

The Federation of Small Businesses (FSB) has outlined recommendations to help small firms recruit talent.

According to the business group, small firms are being 'left behind by the skills system', despite their 'crucial role' in providing opportunities for young people.

Rising employment costs put pressure on businesses to do more with less, the FSB warned. Training is increasingly one of the areas being cut, which, in turn, holds back economic growth.

The FSB has set out an action plan for England to create a national network to help employers find the best training providers and courses. It also outlined recommendations for developing a career matchmaking service and to make the apprenticeship system more accessible for small businesses.

Tina McKenzie, Interim National Chair at the FSB, said: 'Small businesses already do a great job of taking on this fresh talent, but there needs to be a renewed focus by the government on backing small firms and making the process easier for employers.

'It's good to see the new government's focus on technical education, but the skills system must reflect the needs of small businesses. Initiatives like creating a new partnership to link up employers with young people and help them provide work experience, helping find the right courses, and creating a more small business friendly apprenticeship system would be invaluable.'

Internet link: Federation of Small Businesses

A report carried out by the Institute of Directors (IoD) has revealed that business confidence remains 'subdued' as cost pressures on firms intensify.

The business group's Economic Confidence Index, which measures optimism amongst business leaders in regard to prospects for the UK economy, fell to -63 in July 2026 from -61 in June.

Business leader confidence in their own firm also fell to -2 in July from +7 in June.

Revenue expectations fell to +9 from +11 - the lowest reading in 2026.

Commenting on the data, Anna Leach, Chief Economist at the IoD, said: 'Our latest data signals a further modest deterioration in sentiment and trading conditions in July.

'Overall confidence in the economy has drifted down a little further amongst business leaders, continuing its trend of weakness and volatility since the 2024 Budget.

'Meanwhile revenue expectations have dropped to their weakest level in 2026, and alongside elevated costs, means the squeeze on margins has intensified.'

Internet link: IOD