Overview

• Breaking with its usual stance, the Institute of Directors said income tax should rise if spending cuts cannot be delivered, calling it the least damaging way to stabilise the public finances.
• A panel of economists urged ditching the pledge not to raise income tax, with Willem Buiter estimating a three‑point rise across the bands could raise about £20bn, an approach others said would be the cleanest option.
• BT’s Allison Kirkby said the UK is at “peak government‑inflicted costs,” claiming British firms pay about 10 times more in rates, energy levies and compliance than peers in Germany or the Netherlands.
• Bank chiefs from Barclays, Citi and J.P. Morgan warned against a fresh levy on lenders, arguing higher sector taxes would curb competition and investment in London’s financial hub.
• The stakes for the 26 November Budget have risen as estimates point to a £20bn–£50bn shortfall, the OECD flags weaker growth and the highest G7 inflation at 3.5%, and sectors report stalled investment including about £1.5bn in pharma projects.