Budget to be held on 26 November, Reeves confirms:
Rachel Reeves confirmed the date when she will outline the government’s tax and spending plans to pay for things such as hospitals, schools, the military and the police.
It comes as the chancellor faces mounting pressure to balance the public finances, while trying to boost economic growth and maintain the confidence of investors on financial markets.
BBC News
GDP rises by 0.1% in August
The economy recorded modest growth in August, with GDP rising by 0.1%. The services sector, which makes up about three-quarters of economic activity, remained flat for the second consecutive month, while construction output fell by 0.3%. Economists have warned, however, that third-quarter growth would likely remain limited amid subdued demand, high operating costs, and business uncertainty.
Recent data revisions from the Office for National Statistics showed that the UK economy has grown 5.5% since February 2020, up from a previous estimate of 4.4%. Fergus Jimenez-England, an associate economist at the National Institute of Economic and Social Research, said recent data suggests that Q3 will see “limited growth,” adding: “Regaining momentum hinges on restoring business confidence and reducing uncertainty, which the government can support by setting aside a larger fiscal buffer in the upcoming Budget.”
The Guardian
Catherine Mann calls for rate hold
Catherine Mann, a member of the Bank of England’s Monetary Policy Committee, is advocating for maintaining the current interest rate at 4% for an extended period. She cites rising consumer inflation expectations, particularly due to food price increases.
Mann said: “I prefer a longer hold…and make a bigger cut when you do.” This approach contrasts with other MPC members who believe recent price shocks are temporary. Mann also expressed concerns about potential disruptions from ongoing political uncertainty in the US affecting the UK economy.
City AM
Corporate insolvencies rise
Some 2,000 companies in England and Wales went bankrupt in September 2025, marking a 30-year high in insolvency rates. Factors such as rising labour costs, high inflation, and low consumer confidence have contributed to the trend, according to Matthew Richards, joint head of restructuring at Azets.
He warned that the upcoming Budget could further impact corporate insolvencies. David Hudson from FRP noted that any measures raising costs or dampening consumer confidence could be detrimental, especially for struggling sectors like hospitality.
Daily Mail
Holidays at risk as taxes rise
The UK’s leading tour operators warn that holiday prices may rise significantly if Rachel Reeves implements tax increases in her upcoming Budget on 26 November. Neil Swanson, managing director of Tui UK, said that higher business taxes would force travel companies to pass costs onto consumers, potentially pricing some out of the market.
Steve Heapy, CEO of Jet2, echoed these concerns, noting that current taxes are already higher than during Conservative rule. He said: “I don’t think it’s sustainable.”
The Star
Government unveils clean energy jobs plan
The UK Government has launched its first national strategy to create over 400,000 jobs in the clean energy sector by 2030. The plan identifies 31 priority occupations, including plumbers and electricians, and will establish five technical excellence colleges for training.
A new programme will connect veterans with clean energy careers, while oil and gas workers can access £20m for tailored training.
London Evening Standard
AI tools could free up a day for small firms
Research by Google indicates that AI-powered tools could enhance productivity in small and medium enterprises (SMEs) by 20%. This could allow business owners to save one day each week.
Debbie Weinstein, Google’s EMEA president, highlighted that these tools can assist with various tasks, from writing marketing content to aiding those with learning differences. Google plans to invest £5bn in the UK over the next two years to support AI services.
London Evening Standard
Virgin Active cuts losses significantly
Virgin Active has reported a pre-tax loss of £78.1m for 2024, a significant reduction from £146.7m in 2023. Revenue increased from £511.4m to £576.3m, with adult membership rising by 5% to over one million, surpassing pre-pandemic levels.
The company, majority owned by Brait, is navigating challenges from the work-from-home trend. A board statement noted: “The market fundamentals for our business remain strong.”
City AM
Losses widen at Rolls-Royce’s SMR division
Rolls-Royce SMR, the small nuclear reactor business owned by Rolls-Royce, lost £115m in 2024. This comes after a deficit of £78m in 2023. However, headcount increased as did the value of government grants received – from £65.4m to £86.9m.
City AM
Wagamama owner cuts 2,000 jobs
The Restaurant Group, the owner of Wagamama, has reported a pre-tax loss of £32.2m for 2024, up from a £19.6m loss in 2023. The company reduced its workforce from 17,542 to 15,468 over the year. Despite the losses, revenue rose from £824m to £868.1m.
The board noted easing food inflation but highlighted ongoing wage cost pressures due to the National Minimum Wage increase. They said: “Although the economic backdrop remains challenging, we continue to focus on food quality and great customer service.” Wagamama opened ten new locations in 2024 and plans six more this year.
City AM
Sky reports profit ahead of more job cuts
Sky has reported a pre-tax profit of £253m for the financial year 2024, recovering from a £773m loss in 2023. Revenue increased slightly from £10.2bn to £10.3bn, driven by a rise in direct-to-consumer revenue.
However, advertising revenue fell from £1.2bn to £1.1bn. The company plans to cut around 900 jobs in the UK, following a previous reduction of 3,000 roles since 2023.
City AM
Taylor Wimpey scales back housebuilding plans
Taylor Wimpey has no plans to return to pre-pandemic housebuilding levels, impacting the Government’s housing targets. In 2019, the company built over 16,000 homes, but last year it completed just under 10,600. The firm aims to reach 14,000 homes annually by 2030, still 12% below 2019 levels.
Challenges include rising build costs, high interest rates, and a slow planning system. Taylor Wimpey’s order book stands at £2.12 bn, with expectations to deliver between 10,400 and 10,800 homes this year.
The Times
UK hotel profits take a hit
Demand for UK hotels increased in August, with occupancy rising from 81.4% to 82.1% year-on-year, according to RSM and Hotstats. However, gross operating profits fell from 38.1% to 37.5% due to higher staff costs and stagnant room rates.
Chris Tate, partner at RSM UK, noted: “August was a mixed month for the UK hotel sector.” Despite challenges, UK hotel investment is projected to reach £1.04bn in Q3 2025, a 28% increase year-on-year, driven by confidence in the market, according to Savills.
City AM
Manufacturing sector continues decline
The UK manufacturing sector is experiencing a significant downturn, with the S&P Global purchasing managers’ index (PMI) dropping to 46.2 in September, indicating a five-month low. This decline is attributed to a sharp fall in orders and a halt in export work, exacerbated by a cyber-attack on Jaguar Land Rover.
Rob Dobson, a director at S&P Global Market Intelligence, stated: “Manufacturers are facing an increasingly challenging environment, with intakes of new business and levels of production hit by weak market sentiment, a dearth of new export work and a high-cost environment exacerbated by tax and labour cost rises.” Employment has also decreased for the eleventh consecutive month.
City AM
