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

Data published by the Office for National Statistics (ONS) has revealed that the number of job vacancies has fallen to its lowest level in over five years.

The UK unemployment rate remained at 4.9% but vacancy numbers dipped over the May to July period, totalling 707,000.

The ONS found that smaller businesses are cutting back on recruitment as labour and operating costs rise.

Growth in regular earnings rose, but private sector wages grew at their slowest pace in six years.

Responding to the data, Patrick Milnes, Head of Policy for People and Work at the British Chambers of Commerce (BCC), said: 'Although unemployment has held steady at 4.9%, this cannot hide the wider problems bedevilling the UK's job market. 

'Business confidence is at a post-Pandemic low and the squeeze on firms' finances shows no signs of easing.

'With last week's announcement that changes to zero hours contracts could cost businesses almost £3 billion, many will be reassessing their recruitment plans.'

Internet link: ONS

The British Chambers of Commerce (BCC) has set out a three-point plan for the new government.

According to the BCC, Prime Minister Andy Burnham must focus on trade, investment and productivity to support businesses and help the UK economy thrive.

Ensuring that firms have the confidence to invest is essential if they are to expand, create more jobs and adopt new technologies, the BCC said. However, too many businesses face barriers that hold back long-term investment decisions.

The business group has urged the government to create the conditions that encourage investment.

It also called for a full commitment to a fully funded, multi-year workforce plan for the UK planning service to enable increased development, more jobs and stronger local economies.

The BCC called for an acceleration in infrastructure delivery and improved access to supply chains in order to maximise the economic returns from investment, and for the government to reduce unnecessary burdens that increase costs.

Internet link: BCC

Prime Minister Andy Burnham has pledged to help ease the cost-of-living crisis for households in the UK.

Mr Burnham stated he will 'pull every single lever' to help reduce the cost of living and improve local high streets.

The government said that the Prime Minister will focus on 'everyday fixes' to ease financial pressure on UK households. Under new plans, subscriptions will be easier to cancel, and companies will be mandated to make it clearer when subscriptions will auto-renew at a higher price.

Mr Burnham has also vowed to stop retailers' use of 'pretend prices', which will prevent shops from using 'was' prices, made-up discounts or misleading recommended retail prices to promote deals.

He said: 'I know people are sick and tired of rip-off discounts and subscription traps. Westminster has got used to telling people that everyday hassles like this are just part of life.

'I don't think that's right, especially when the cost of living continues to weigh heavily on so many people's lives.'

Consumer group Which? said that it has attempted to expose businesses ripping off customers with deals that aren't what they seem.

The government intends to launch a consultation on the new measures in the autumn.

Internet link: Government

HMRC has urged customers not to ignore Simple Assessment letters for the 2025/26 tax year.

HMRC issues around 1.8 million Simple Assessment letters and stated that people should check the figures in their letter against their own records.

The letters will be sent to those who have tax to pay on income that has not been taxed through Pay As You Earn (PAYE) or Self Assessment.

Individuals may receive a Simple Assessment letter if they owe tax that cannot be collected automatically by HMRC, for example, if:

• there is tax to pay on interest on savings or dividends
• a second income has not been taxed
• tax is due on pension income
• they received more tax-free allowance than they were entitled to
• the tax cannot be collected through a tax code (for example, larger amounts owed, typically £3,000 or more).

Any tax owed should be paid by 31 January 2027, unless a different date is shown.

Myrtle Lloyd, Chief Customer Officer at HMRC, said: 'If you receive a Simple Assessment letter and have tax to pay, please don't ignore it. It is quick and easy to pay any tax owed via the HMRC app.

'If you need extra support or want to find out more, search 'Simple Assessment' on GOV.UK.'

Internet link: HMRC

The government recently announced that VAT will be cut from household electricity bills from 1 October in time to impact the next Ofgem price cap.

The move is part of new Prime Minister Andy Burnham's commitment to help ease the cost of living.

The cost of this immediate action for this financial year is being funded from the cancellation of the £1.8 billion Digital ID programme.

Any further action on energy bills will be taken at the Budget, alongside the publication of a forecast from the Office for Budget Responsibility (OBR). All decisions at that point will continue to be funded and also consistent with the government's fiscal rules.

The Prime Minister said: 'Westminster has not been working for people for too long, with families struggling with the cost of living.

'We're taking immediate action to cut taxes on energy bills, put more money in people's pockets and bring back hope.'

Internet link: .GOV

HMRC is reminding people with side hustles that they will need to tell it if they earn more than £1,000.

The Help for Hustles campaign aims to assist individuals with side hustles to 'get their tax right, quickly and easily'.

New entrants to self assessment should register for the 2025/26 tax year by 5 October 2026.They must file their online tax return and pay any tax due by 31 January 2027. HMRC has an online tool to help people with side hustles to check if and when they need to report their additional income.

Kevin Hubbard, Director of Small Business and Individuals at HMRC, said: 'For many people, a side hustle is a valuable source of extra income. If you're earning more than £1,000 a year from your side hustle it's important to understand your tax responsibilities, and HMRC wants to make that as straightforward as possible.

'You can check if you need to do a Self Assessment tax return by using the tool on GOV.UK.'

Internet link: HMRC

Significant reforms to small business finance have been announced by the government.

The centrepiece of the plans is an expansion of the British Business Bank's (BBB) Growth Guarantee Scheme (GGS) which provides a 70% government guarantee on commercial loans to SMEs of up to £2 million.

The scheme will scale up to facilitate an additional £2 billion of SME lending per year by 2028/29. This will bring the total SME lending supported through the scheme to £3.35 billion per year, more than double the current £1.35 billion.

The maximum term length of a loan is also increasing from six to ten years for loans of up to £1.1 million.

In addition, the maximum size of businesses that are eligible for a loan under the scheme is rising from £45 million in annual turnover to £54 million.

The BBB estimates these changes will support an additional 12,000 businesses per year by 2028/29, a 150% increase on the 8,000 currently being supported, bringing the total to 20,000.

Louise Hellem, Chief Economist at the Confederation of British Industry, said:

'The government deserves credit for listening to business and putting forward a package that recognises the practical finance challenges firms face. The priority now is delivery and making sure the support is simple to access, well understood by businesses and effective in crowding in private capital.

'If implemented well, these reforms can help more SMEs scale, export and adopt new technologies here in the UK – supporting productivity, stronger local economies and long-term growth.'

Internet link: HM Treasury CBI

The government is stepping up its efforts to reconnect young people with unclaimed savings in Child Trust Funds (CTFs).

Around 6.3 million Child Trust Fund accounts were opened for children born between 1 September 2002 and 2 January 201

More than 750,000 young adults still have unclaimed matured accounts, holding £2,200 on average and totalling over £1.6 billion.

CTFs were introduced to give every child a financial asset at adulthood. However, accounts can go unclaimed for a number of reasons, including difficulty locating them, people forgetting they have them, or a decision to leave the funds invested for the time being.

The government has set up a Child Trust Fund Taskforce, bringing together CTF providers to drive a coordinated effort to increase reunification of accounts.

Members of the Taskforce will include One Family, Coutts, Nationwide, HSBC UK, Pilling, The Coventry (Co-operative), Sheffield Mutual, Unity Mutual, Forester, Healthy Investments and The Share Foundation.

Rachel Blake, Economic Secretary to the Treasury, said:

'Too many young people are missing out simply because they are not aware of where their CTF is or how to access it.

'We are acting to fix that by bringing government and industry together - improving coordination and making it easier for people to find and claim what's rightfully theirs.'

Internet link: HM Treasury