Business News Round Up (14/09/2026)
UK hospitality urges broader VAT cut as businesses warn 20% rate is undermining investment
The UK government should consider a broader cut in value added tax at the Autumn Budget to support the hospitality industry, according to tax advisers who argue that the sector faces an increasingly unsustainable cost burden. Julie Park, partner and head of indirect tax at Blick Rothenberg, said the government’s temporary VAT reduction for some family spending was welcome but insufficient to address wider pressures on pubs, restaurants and cafés. “The Government has introduced a temporary 5% VAT rate for certain children’s meals, children’s tickets and family attractions, which started on 25th June and ends on 1st September 2026. The measure is welcome, but announcing a broader VAT cut at the Autumn Budget would better address the wider pressure facing hospitality businesses.” Park acknowledged that reducing VAT would carry a substantial cost to the Treasury and said any intervention would need to be targeted.
‘Culture shift’ needed in how UK does business, PM urges
The UK needs a “culture shift” in how it does business, Andy Burnham has said ahead of a meeting with some of Britain’s biggest bosses. The prime minister said those who take risks in business should be backed by government and local leaders should have the power to work with companies. The Labour government has been criticised for increasing costs for firms, such as with the employer national insurance and minimum wage changes under Burnham’s predecessor Sir Keir Starmer. The meeting comes as Chancellor John Healey prepares for his first Budget next month, with rising borrowing costs in recent weeks adding to the pressure on government finances. Ahead of the meeting, Burnham said he would give people “the confidence that if they have a great idea, they’ll get all the support they need to bring it to life”.
https://www.bbc.co.uk/news/articles/clyl18x4734o
Chance of rates rise heightens as inflation re-emerges
A move on interest rates had been all but ruled out until the US and Iran resumed hostilities and forced the price of oil higher. Markets now see a 60% chance of a Federal Reserve rate rise in September and a possible UK increase in November. Higher government bond yields on both sides of the Atlantic have been a canary in the coalmine for an increase in rates, say analysts at AJ Bell, with yields touching multi-year and, in some cases, multi-decade highs. Fed chair Kevin Warsh and BoE governor Andrew Bailey must decide whether to hold steady rather than react to a supply shock that raises prices and weakens growth. Three of the nine members of the Bank’s monetary policy committee (MPC) voted for a rate rise in July, and data published on Friday showing stronger-than-expected economic growth could amplify fears about inflation.
Female fund manager numbers fall as assets under their control climb to £5trn
Female representation in fund management has declined globally for the first time, even as the money entrusted to women in the sector climbed to £5trillion, according to a new report. It revealed that the number of active female fund managers dropped from 2,371 globally in 2025 to 2,283 this year, outpacing the decline in active male fund managers, as active funds continue to suffer at the hands of cheaper passive options. Citywire’s annual Alpha Female Report revealed the proportion of women active in the sector dipped from 12.9% last year to 12.6% this year. The report claimed that European fund markets are mainly responsible for the reversal, with the UK seeing a large drop from 13.2% last year to 12.5%. The report revealed that Spain and Italy are leading the way in Europe, with 21.1% and 19.4% female managers respectively.