Business news 9 October 2025
Some of the business headlines, market news, insolvencies & other stories that we thought would interest our members.
James Salmon, Operations Director.
1. Kemi Badenoch pledges to scrap stamp duty
The Conservative leader promised to abolish stamp duty for all primary residences, calling it a “bad tax” that holds back growth. Analysts estimate the change would cost £9bn a year but could stimulate property transactions and construction demand — sectors often hit hardest by weak confidence. The Institute of Economic Affairs welcomed the move, calling it “the single best reform” to Britain’s tax system.
Sources: Bloomberg, FT, Daily Telegraph
2. Businesses brace for tax turmoil
With the Chancellor’s second Budget due next month, 60% of firms now cite the tax burden as a growing challenge — a tenfold increase in five years. The ICAEW says confidence has “collapsed” and economists warn that tax rises of up to £30bn may be needed to balance public finances.
Source: Daily Telegraph
3. Housing market in ‘semi-paralysis’
RICS data shows a 19% drop in new buyer inquiries in September, marking the third consecutive monthly decline. Agents report widespread “wait and see” behaviour amid rumours of a mansion tax and uncertainty over stamp duty reform.
Source: The Times
4. AI boom raises risk of sharp correction
The Bank of England and IMF both warned that stretched valuations in AI-linked equities could lead to a “sudden correction.” The BoE highlighted “material bottlenecks” that could slow AI progress and cited broader risks from corporate defaults and weakened central bank credibility.
Sources: FT, Guardian, BoE
5. UK and India press ahead with trade pact
Prime Minister Keir Starmer met with Indian PM Narendra Modi in Mumbai to accelerate implementation of the UK-India free trade agreement signed earlier this year — a potential boost for British exporters and service providers.
Source: Bloomberg
6. New Unemployment Insurance benefit planned
A proposed reform would replace two existing benefits with a single, contribution-based payment, saving up to £3bn annually. The move aims to streamline welfare while offering higher support levels to those recently in work.
Source: HM Treasury briefings
7. AI tools could free up a day a week for SMEs
Google’s research shows small firms using AI tools can raise productivity by 20%, potentially freeing up a day per week for business owners. Google will invest £5bn in the UK over two years to boost adoption.
Source: Evening Standard
8. FCA redress scheme lifts motor finance stocks
Motor finance lenders rose after the FCA’s redress update estimated total compensation at £11bn — far below the £44bn once feared. Lloyds and Close Brothers gained, while the regulator framed the initiative as a “test of data discipline and governance.”
Sources: City AM, The Times
9. UK government borrowing revised down
The ONS revised borrowing figures down by £2bn after a VAT miscalculation, easing pressure ahead of the autumn Budget.
Sources: FT, Reuters, Telegraph
10. Lehman Brothers London unit finally closes
Seventeen years after its collapse, the Lehman Brothers London branch has officially closed, returning all creditor funds plus 8% interest — a milestone in UK insolvency history.
Source: Daily Mail
Market Snapshot
Equities:
- FTSE 100: ▲ 0.7% to 9,548.87 (record high, boosted by mining stocks)
- Stoxx Europe 600: ▼ 0.1% amid French political jitters
- S&P 500: ▲ 0.6% (new all-time high, driven by AI optimism)
Commodities:
- Gold: ▲ to $4,050/oz (new all-time high)
- Silver: ▲ to $50.85/oz (strongest since 1980)
- Brent crude: steady at $66/barrel
Currencies:
- GBP/USD: weaker ahead of BoE remarks
- EUR/USD: down to 1.16 (4th straight daily drop)
- Dollar Index: slightly lower after dovish Fed comments
Outlook:
Investors remain cautious amid record highs in equities and precious metals, with concerns mounting over stretched AI valuations and diverging central bank paths.
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