Businesses are now more concerned about possible tax hikes in the forthcoming Budget than they are about inflation or interest rates, a new survey by The British Chamber of Commerce (BCC) suggests. The BCC’s quarterly economic survey showed 48% of firms cited taxation as a worry, up from 36% the quarter before, and making tax their biggest concern. Firms in professional services and construction sectors are most likely to cite tax as a concern, according to the survey, which also showed a decrease in overall business confidence: 56% expected to see revenue increase over the next year, down from 58% in the previous quarter. Separately, Helen Dickenson, CEO of The British Retail Consortium, says retailers – including the high-street giants - are wary of investing at present because they faced “weak consumer confidence and the continued high burden of business rates”. Retail bosses are “holding their breath” ahead of the Budget, Dickenson said, adding that “decisive action” was needed by Chancellor Rachel Reeves to spur investment and economic growth.  The Federation of Small Businesses, meanwhile, is also calling on the Chancellor to fulfil in her Budget an election pledge to reform Business Rates to help small retailers.

More millionaires are set to leave Britain than anywhere else in the world within the next four years, according to an analysis of UBS projections by The Adam Smith Institute (ASI). The ASI’s Millionaire Tracker – a new initiative from the right-leaning think tank – suggests the UK’s millionaire population will shrink 20%, making it the highest exodus by a considerable proportion of the 36 countries studied by the ASI. 4.55% of the UK population currently enjoys millionaire status, but that will drop to 3.62% by 2028, the ASI predicts, as Chancellor Rachel Reeves plots tax hikes, changes to non-dom rules, and oversees “a hostile culture for wealth creators”. The Netherlands will lose the most millionaires next, the ASI said, but only 5%. Saudi Arabia is set lose the third highest proportion of millionaires, while Germany, France and Italy are all predicted to grow their share. The ASI said that the departure of the very rich will be “painful,” as they pay a disproportionate share of tax: the top 1% of earners pay 29% of all income tax. Left-wing think-tanks the Institute for Fiscal Studies, the Resolution Foundation, and the Centre for the Analysis of Taxation are all urging the Chancellor to levy an ‘exit tax’ on wealthy people leaving the country to make up for losses incurred by them leaving.

The Chancellor should cut Corporation Tax to 10% for the manufactures of electric vehicles (EVs), heat pumps and biofuel systems to accelerate the drive to net zero, the Confederation of British Industry (CBI) says. has urged. The current rate of Corporation Tax is 25%. The CBI added businesses investing in research and development of low carbon technology should also get a new “green innovation credit” with a headline rate of 40%, while those building factories deserve an “enhanced green super-deduction” at a rate of at least 120% to support investment in EVs and battery manufacturing. Meanwhile, it has been revealed that KPMG and NatWest Group have resumed their membership of the CBI, having left when the business lobbying group was embroiled in a major sexual harassment scandal last year.  

The Society of Pension Professionals (SPP) is suggesting Chancellor Rachel Reeves sticks with current pension tax reliefs but that she could tax pension pots on death. The SPP advises against introducing a flat rate of tax relief on pension contributions, as opposed to the current scheme whereby contributions attract income tax relief in line with the income taxes. Some have suggested this, as it could make a cost saving HMRC has pegged at 48.7bn, but the SPP says the current system encourages people to save for their retirement and that changing pensions tax relief would be “incredibly complex, time consuming and costly” as well as “unlikely” to raise revenue predicted. The group also warned against limiting the 25% tax-free lump sum that can be withdrawn from pensions up to a limit of £268,275, saying doing so would “decrease trust and confidence” and act as another disincentive to save. But, the SPP said, the fact pensions are not currently regarded as part of a deceased person’s estate for inheritance tax was “anomalous” and “therefore a potential area to target”.

The Government is setting up a new Regulatory Innovation Office (RIO) which Science and Technology Minister Peter Kyle says will embrace artificial intelligence (AI) to ensure, for example, that doctors can diagnose illnesses earlier; allow bio-engineers to create cleaner fuels and more pest resistant crops; and ensure drones can be used for deliveries. "We're curbing the burden of red tape so businesses and our public services can innovate and grow, which means more jobs, a stronger economy," he said in a statement. He added that the RIO will also set the scene for an international investment summit on 14^th October to which Prime Minister Keir Starmer and Chancellor Rachel Reeves will invite sovereign wealth funds, and businesses and infrastructure funds, with the aim of showing the country is "open for business". The RIO will work with existing regulators and a search will begin shortly for a chair to lead it, Kyle’s statement added.

Grocery price inflation has edged higher, according to market researcher Kantar, which has noted a rise to 2.0% in the four weeks to 28^th September, after coming in at 1.7% in the four weeks prior. Kantar’s data also showed prices are rising fastest in products such as chilled soft drinks, chocolate confectionery and skin care, and falling fastest in household paper products, dog food and cat food. Kantar also said UK grocery sales rose 2% in value terms over the four week period year-on-year, versus 3% in last month's report. In the same period, Ocado was again the fastest growing grocer with sales up 10% year-on-year, taking its market share to 1.8%. Tesco saw sales growth of 5.2% and its market share rose to 28%. Sainsbury’s sales grew 5.1%. Asda lost 5.1%. Lidl and Aldi saw sales growth of 1.8% and 8.8% respectively. Separately, The British Retail Consortium says spending in shops increased by 2% in annual terms in September, the strongest uptick since March when it increased by 3.5%, although less of a rise than the 2.7% recorded in September 2023.

London Mayor Sadiq Khan intends to extend the London Congestion Charge to electric vans, and more than 40 UK businesses, including Ocado, the AA, and Openreach, have urged him to reconsider. have urged Sadiq Khan to scrap plans to extend the £15 daily congestion charge to electric vans. They argue removing the exemption will impose significant costs of up to £5,500 per vehicle annually, hurting businesses that invested in cleaner technology despite the additional costs of buying more expensive electric vehicles, based on existing incentives and as part of their net zero efforts. The Federation of Small Businesses and environmental group Clean Cities is backing the companies’ call, saying it could deter the transition to electric vehicles at a time when the market is already struggling to meet targets.

Water companies have been ordered to return £158m to households in compensation for poor performance. The Ofwat ruling means customers will see a reduction in their water bills in 2025/26. The regulator’s most recent assessment of the sector, released yesterday, was “disappointing,” and that companies had fallen further behind on key targets on issues such as pollution. Despite water companies pledging to reduce pollution incidents by 30%, they had only achieved a 2% drop, Ofwat said.

Housebuilder Vistry has seen more than £1.5bn wiped off its value on the London Stock Exchange this morning after saying it is likely to post annual profits of £80m less than expected because it underestimated the cost of nine developments by around 10%. Shares in the company were briefly suspended after plunging by 36% after it issued the profit warning. Vistry now anticipates profits for 2024 of £350m, a 16% drop on the £419.1m it reported for 2023, and also says the underestimate will impact profits for the next two years, with the group forecasting a hit of around £30m in 2025 and £5m in 2026. Vistry, known previously as Bovis Homes, has launched an independent review into the matter, and is overhauling management in its southern division following the revelation.

TGI Fridays will remain in the UK after a rescue deal was struck yesterday, but more than 1,000 staff will still lose their jobs.  Hospitality investors Breal Capital and Calveton have agreed to buy 51 of the American-themed restaurant chain’s sites, securing nearly 2,400 jobs, but 35 restaurants will close immediately, resulting in resulting in 1,012 redundancies. TGI Fridays opened in the UK in 1986 under then-owner Whitbread.

Saudi Arabia’s Public Investment Fund (PIF) has acquired a 40% stake in Selfridges from Rene Benko’s property business Signa. Thailand’s Central Group, a family-owned retail conglomerate, retains the other 60% stake in both the property and operating business of the iconic London department store. PIF previously had a 10% stake, and Central said it was its “preferred partner” in the deal which, a statement said, included new investment from both parties that would “strengthen Selfridges Group’s financial position and support the group’s future development”..The sale comes after Benko became the subject of a fraud investigation earlier this year, after his Signa empire collapsed in late 2023. He denies any wrongdoing.

Very, the online shopping company which is chaired by former chancellor Nadhim Zahawi, is lining up Barclays, JP Morgan and Morgan Stanley to handle an ownership review, Sky News reports. “The investment banks, whose appointments are likely to be confirmed within days, will kickstart a full or partial auction of Very Group, which has nearly 4.5 million customers,” Sky City Editor Mark Kleinman reports, suggesting a sale could come with a price tag in the region of £2.5bn.

US fashion house Yoox Net-a-Porter, currently owned by Richemont, is to be bought by German rival MyTheresa in a deal said to be worth €555m (£464m).  

John Lewis CEO Nish Kanikwala is reverting to becoming a non-executive director, as the retail partnership scraps his position to give more responsibility to Chair Jason Tarry. Kankiwala was appointed CEO in March last year after then-chair Sharon White created the role. She left in September after facing widespread criticism after closing stores and axing annual staff bonuses, as well as overseeing the store becoming loss-making. The move is being perceived as a return to ‘business as usual’ at the store following White’s reign.