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UK Government long-term borrowing costs have hit the highest level since 1998, with the interest rate on 30-year government bonds rising to 5.723%. Paul Dales, chief UK economist at Capital Economics, said concerns over inflation and interest rates, alongside global issues, are pushing UK Government borrowing costs up. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said that Chancellor Rachel Reeves has been "dealt a warning" by investors who are selling off Government debt, "clearly concerned that the Government may be losing its grip on the public finances." With the Chancellor expected to increase taxes in the Budget, Ms Streeter said: "The worry isn't just that Government coffers won't be replenished, but that they will be filled at the expense of growth, leading to a vicious circle emerging." Deutsche Bank's Jim Reid warned of a "slow-moving vicious circle" where concerns over rising debt push yields higher, "worsening debt dynamics, which in turn push yields higher again."

 

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Ruth Gregory, deputy chief UK economist at Capital Economics, believes that Chancellor Rachel Reeves could target banks as she looks to boost Government finances in the Budget, warning: "We suspect households and banks will bear the brunt of higher taxes." Capital Economics says an increase in the bank surcharge and a quantitative easing (QE) levy are the two most likely tax rises in the Budget. Analysis shows that increasing the surcharge to 8% would raise £1.5bn, while changes to QE takings could pull in another £5bn. Ms Gregory said: "The problem is that if the Chancellor wants to raise large amounts of cash, she won’t get it by taxing banks,” adding that Ms Reeves may look to "combine several smaller tax increases." Benjamin Toms, equity analyst at RBC, commented: "The Government was elected on a pro-growth agenda, and the banks are a key synapse of that objective," adding: "We continue to believe that the Chancellor understands that any additional taxes on banks would represent a headwind to this ambition." Mr Toms estimates that NatWest and Lloyds would be most vulnerable to a shift in the surcharge.

 

City AM

The Federation of Small Businesses (FSB) has accused Chancellor Rachel Reeves of failing to support small firms amid a significant drop in job vacancies. Analysis by the Liberal Democrats has revealed an 18% decline in vacancies at small businesses following the employers' National Insurance increase announced in last October's Budget. Official figures show that in the three months to July, small businesses employing one to 49 people posted 216,000 job vacancies. This is down from 262,000 vacancies recorded in the three months to October 2024. Medium-sized businesses employing 50 to 249 workers saw a 13% drop, with vacancies falling by 16,000.

 

The Independent

Jaguar Land Rover has suffered a major cyberattack, severely disrupting global production and sales. Staff at its Halewood plant were told not to report to work, and systems were shut down to contain damage. “We are now working at pace to restart our global applications in a controlled manner,” the company said. No customer data theft has been confirmed. The incident follows a sharp profit drop due to US tariffs and falling luxury car sales. CEO Adrian Mardell is set to depart in December, amid workforce cuts and criticism of recent branding campaigns.

 

BBC News

The Times

The Times reports that the Prax Lindsey oil refinery collapsed in June with just £203 in the bank after Glencore demanded repayment of $53.6m. The refinery, supplying 10% of the UK’s petrochemicals, was blocked from selling products, triggering insolvency. Documents show Sanjeev and Arani Soosaipillai, who bought the site for $167m in 2021, left behind over £1.5bn in debts. “The impact… was severe and wide-reaching,” said Prax’s general counsel. Operational costs, equipment issues, and funding irregularities compounded the crisis. Administrators allege fiduciary breaches by the Soosaipillais, who are believed to have fled the UK.

 

The Times

English water companies have spent £16.6m on legal fees over five years fighting legal action against regulators and campaigners over environmental breaches. Thames Water topped the list, incurring £7.5m in legal costs while facing a £104m fine from Ofwat for environmental violations. Other companies, including Southern Water and South West Water, also faced significant legal expenses. MP Helena Dollimore, a member of the Commons Environment, Food and Rural Affairs Committee, said water companies "have wasted millions on expensive legal firms tasked with downplaying the extent of the sewage scandal," adding: "That money should be spent fixing our broken water infrastructure not trying to deny the scale of the problem."

 

The Guardian

Mark Edgar, a director at Specsavers, has been suspended for one year after misusing £80,000 in company funds for personal expenses. The Health and Care Professions Tribunal Service found Edgar guilty of misconduct, revealing he disguised personal payments as business expenses from 2008 to 2021. His claims included hotels, meals, and even secret Santa gifts. Edgar argued that his partners were aware of his actions, stating: "There was no harm in trying."

 

The Daily Telegraph

The Times

The European Commission is crafting a new visa strategy aimed at attracting top global talent to address EU labour and skills shortages and promote innovation. The plan highlights bureaucratic hurdles in long-stay visa processes, citing their impact on research mobility and skilled migration. The new framework will focus on easing access for researchers, students, start-up founders, and skilled workers, while also streamlining procedures for both long- and short-term visas. The Commission emphasised: “The EU visa policy can support business and tourism travel to the EU more effectively.” Public input is invited until 18 September 2025.

 

The Local Spain

Portugal's Arbitration Court has mandated minimum services at airports during a strike by Menzies workers from today until January 2nd. The strike, called by the Metallurgical and Related Industries Union (SIMA) and the Transport Union (STA), spans 76 days. The ruling ensures 100% service for mainland flights and 35% for international ones. SIMA demands include higher wages and compliance with previous agreements. Menzies stated that the cancellation of prior strikes was not due to negotiations. The first strike period begins on September 3rd, with multiple subsequent dates planned.

 

The Portugal News Online

A shortage of staff could be a "serious" barrier to growth at small to mid-tier accountancy firms, according to analysis from outsourcing specialists Advancetrack. The study shows that 94% of firms say recruitment issues are holding back growth. It was also shown that 74% said the recruitment crisis is preventing them from taking on more clients. More than two-thirds of those firms said they are outsourcing work overseas, with a further 33% offshoring. Almost half of the firms polled said they are facing rising salary pressures. Advancetrack surveyed nearly 170 firms, with these predominantly from the UK and Australia.

 

City AM

Employees are increasingly adopting AI tools independently, creating challenges for companies. According to Microsoft's Work Trend Index, 75% of employees use AI at work, with 80% of users in small and medium-sized firms bringing their own tools. This trend, known as Bring Your Own AI (BYOAI), raises significant risks, including data privacy issues. Nearly 60% of employees reported making mistakes due to AI errors. Allison Spagnolo, chief privacy officer at Guidepost Solution, stated: "When employees use external AI services without the knowledge of their employers... we tend to think about risks like data loss." Companies must adapt by empowering employees with clear guidelines and training.

 

Fast Company

The debate over "digital silence" in the workplace highlights contrasting views on productivity. Peter Bell, vice president of marketing at Twilio, argues that allowing employees to disconnect can enhance focus and performance. Research shows 36% of UK workers favour scheduled downtime, with 44% more likely to join companies offering it. Conversely, Callum Price, director of communications at the Institute of Economic Affairs, warns against formal mandates, citing potential costs and compliance issues for employers. He suggests that most employees can manage their own downtime without government intervention.

 

City A.M.

Elliott Investment Management has acquired a $4bn stake in PepsiCo, with the activist investor aiming to revitalise the company amid declining demand for its products. PepsiCo has faced challenges due to rising prices and changing consumer preferences, leading to lowered earnings expectations. In a letter to the board, Elliott has highlighted concerns over a lack of strategic clarity, decelerating growth and eroding profitability. "This disappointing trajectory has created a historic opportunity," Elliott said, expressing a desire to collaborate with management to enhance performance and unlock shareholder value.

 

Daily Mail

Bayer has appointed Simon J. Britsch as President of Bayer in Poland, while he continues as CFO for Eastern Europe. With 25 years at Bayer, Britsch has held senior roles across Asia, including CFO of Bayer Vietnam and leading operations in Beijing. He has been based in Warsaw since July 2025, focusing on the company's financial strategy. Bayer, a leader in Life Sciences, employs 93,000 people globally and reported €46.6 bn in sales for 2024.

 

Warsaw Business Journal