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Rachel Reeves is set to announce a significant reduction in banking regulations, with plans to scrap parts of the senior managers and certification regime which certifies almost 140,000 financial services professionals. The Chancellor last year said that while the senior managers certification regime had "helped to improve standards and accountability, some elements . . . have become overly costly and administratively burdensome." Reeves is expected to make it easier to appoint senior managers by reducing engagement with regulators and removing the need for "pre-approvals" for around four in ten applications. In her upcoming Mansion House speech, the Chancellor will encourage financial firms to relocate to the UK and warn that "for too long red tape has choked off innovation and growth." A Treasury source said the Chancellor is determined to make the UK the premier destination for business, promising to "turbocharge growth" for future generations.

 

The Sunday Times

The Sun on Sunday

The Sun

The 2025 Summer Risk and Compliance Report

Each quarter, Hyperproof takes a deep dive into market trends in the GRC space. A new report just released that compares their data against reports from Accenture, BDO, PWC, and more so that security pros have the best data available to finish the year strong. 

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Thames Water spent at least £136m on efforts to secure emergency funding over the past year, surpassing the £130m it paid in fines. A leaked document details payments to law firms Linklaters and Akin Gump, which received £45m and £26m respectively, while consultancies AlixPartners, Bain, Deloitte, KPMG, Kroll and Teneo were also paid £39m. A Thames Water spokesperson said: "Customers will not pay for these fees, and fees relating to the recapitalisation will not lead to an increase in any customer bills." Thames Water, which is carrying around  £20bn in debt, is negotiating with creditors for a £5.3bn recapitalisation plan. The firm is in talks with the regulator, Ofwat, over a takeover by creditors who hold much of its debt.

 

The Guardian

Administrators have discovered a £2m shortfall at collapsed cryptocurrency company Ziglu. The Financial Conduct Authority forced the fintech business to suspend withdrawals in May and it has now been put into special administration. A High Court insolvency hearing has seen directors at Ziglu accused of "mismanagement" after it was revealed that they used savers’ funds to keep the business running until it collapsed. Ziglu’s administrators at RSM are seeking buyers for the company, but the future of savers’ funds remains unclear.

 

The Daily Telegraph

Louis Vuitton has confirmed that UK customer data, including names, contact details, and purchase history, was accessed in a cyber-attack earlier this month. The luxury brand, part of the LVMH group, said no financial data was compromised but warned customers of potential phishing or fraud attempts. This marks the third cyber breach affecting LVMH in recent months, following similar incidents involving Louis Vuitton in Korea and Christian Dior.

 

The Times

The I

The Guardian

Daily Mail

Barristers across England and Wales, most of whom are self-employed, are struggling to make ends meet after a cyber-attack on the Legal Aid Agency has left many without a regular income.

 

Financial Times

HSBC has become the first UK bank to withdraw from the Net Zero Banking Alliance (NZBA), a move described by campaigners as “troubling.” The decision follows the exit of several major banks from overseas including JPMorgan, Citi, Morgan Stanley, Macquarie and Bank of Montreal, and raises concerns about the future of international climate coordination. HSBC, a founding member of the NZBA, had previously aimed to establish a framework for monitoring progress towards net zero carbon-emission targets. However, the bank has recently delayed key climate goals by 20 years and diluted its environmental targets in a new bonus plan for CEO Georges Elhedery.

 

The Times

Daily Mail

The Guardian

Joel Kaplan, Meta's chief global affairs officer, has warned that the UK risks losing Silicon Valley investment if regulators target the tech sector too aggressively, saying EU rules have been "over-enforced by activist regulators to treat US companies as a cash cow." In an article for the Sunday Times, Kaplan described the EU as a "cautionary tale" for the UK, saying that "a European-style regulatory regime" could hinder innovation. He emphasised the need for a "thoughtful approach" to AI, and cautions against over-regulation.

 

The Sunday Times

The European Securities and Markets Authority (ESMA) has cautioned crypto companies against misleading customers regarding the regulatory status of their products. In a statement, ESMA highlighted that the practice of offering both regulated and unregulated products on the same platform poses significant investor protection risks. Under the EU's new crypto rules, companies must obtain a crypto asset service provider licence to operate across the bloc.

 

Reuters

Regulators including the Financial Conduct Authority are reforming workplace misconduct rules to enhance safety, but critics warn of potential overreach and increased burdens on managers regarding accountability for employee behaviour.

 

Financial Times

The government is set to introduce the Equality (Race and Disability) Bill, which will require employers with over 250 staff to disclose disability and ethnicity pay gaps. The Bill aims to establish a regulatory unit to prevent pay discrimination and may compel companies to create action plans for improving equality. The Black Equity Organisation (BEO) has advocated for whistleblower protections to ensure transparency in pay gap reporting, saying support for those who flag issues is "essential." The Trades Union Congress has called for mandatory pay gap reporting to be extended to employers with more than 50 staff, to cover lower-paid workers in smaller companies, insisting: "If the legislation is to be effective . . . it needs to apply to the majority of workplaces." Equalities Minister Seema Malhotra says the measures set out in the Bill are part of the government's "absolute" commitment to diversity, equity and inclusion.

 

The Guardian

The Chancellor is expected to launch a review of the auto-enrolment pension scheme in a move that could see employer contributions to staff retirement pots increase. The review, led by the Department for Work and Pensions, will assess raising auto-enrolment contributions from the current level of 8% of worker earnings. Employees currently pay in 5% while the employer adds 3%. The review will also look at the state pension. The Office for Budget Responsibility has flagged inadequate pension saving as a risk for public finances, saying: "Recent studies suggest a significant proportion of the population may not be saving enough through private pensions to achieve an ‘adequate’ retirement income."

 

The Sunday Telegraph

The Guardian

The UK labour market is experiencing a significant slowdown, with the supply of available workers increasing at the fastest rate in nearly five years. According to analysis by KPMG and the Recruitment and Employment Confederation (REC), there has been a decline in permanent vacancies and reduced demand for employees. Consequently, wage growth in the private sector has slowed from 5.5% to 5.3%, marking the slowest pace in four months. Neil Carberry, chief executive of the REC, noted that companies are hesitant to hire due to "the scar tissue left by the spring tax hikes and fear of further business tax rises." Jon Holt, group chief executive and UK senior partner at KPMG, said the threat of rising employment costs is contributing to a "wait and see" approach among employers. Official jobs market figures show unemployment rose to a four-year high of 4.6% in the three months to April, up from 4.5% in the previous three months. 

 

Reuters

The Guardian

The Times

Analysis by the Centre for Economics and Business Research (CEBR) suggests that the UK government's decision to abolish the non-dom regime could leave a £4bn hole in the public finances if wealthy foreigners opt to leave the UK. If a quarter chose to leave the UK, the tax take would be £4.6bn lower over five years, while half leaving would see the total hit £7.8bn. Even if 10% of non-doms opt to leave – a rate the Office for Budget Responsibility believes to be the most likely scenario – the Exchequer would miss out on £2.8bn. Sam Miley, the CEBR’s head of forecasting, said the analysis "contrasts somewhat with the government’s assessment that these policy changes will not bring significant macroeconomic impacts."

 

City AM

Water industry watchdog Ofwat has warned suppliers not to hike directors' salaries in an effort to bypass a bonus ban. Ofwat has barred United Utilities, Thames Water, Wessex Water, Anglian Water, Southern Water and Yorkshire Water from making performance-related payouts this year due to a number of failings. The regulator said it would be "very damaging to public trust in the sector" if the response to the bonus ban was "to greatly inflate base salaries." Ofwat added that it will be "closely watching companies' behaviour on executive remuneration in response to the changes, including on base pay." Ofwat's chief executive, David Black, said: "At a time when remuneration in the water sector is under significant public scrutiny, we expect water companies to be proactive and transparent."

 

Mail on Sunday

Documents obtained under the Freedom of Information Act indicate that HMRC provided substantial 85% discounts to large companies involved in the loan charge scandal, while independent contractors faced large tax bills. Conservative MP Greg Smith revealed the details in Parliament, describing the situation as "staggering," while Liberal Democrat MP Sarah Olney said: "It is unacceptable that victims have been consistently refused the justice they deserve while large companies received settlements a decade ago." The loan charge, introduced in 2017, has left 50,000 self-employed workers with significant tax liabilities.

 

The Daily Telegraph

European Commission President Ursula von der Leyen has announced that retaliatory tariffs on US exports into the EU have been pushed back until early August. The decision comes after US President Donald Trump announced plans to impose 30% tariffs on EU imports from August 1, adding a warning that retaliatory import duties would see the US increase tariffs even further. Ms Von der Leyen said the commission will continue talks over the matter with the US, insisting that the EU has "always been very clear that we prefer a negotiated solution."

 

BBC News