What you need to know about the budget

📍 Top line: Chancellor Rachel Reeves will present Labour's first Budget in 14 years on Wednesday, 30 October, at 12:30 PM UK time. The Budget may include £40 billion in tax increases and spending cuts, addressing what Reeves has called “difficult decisions.”

Potential Measures in the Budget:

• National Insurance (NI): Likely increase in NI for employers, though employee rates will remain unchanged.

• Income Tax and NI Thresholds: Possible extension of frozen thresholds, pushing more people into higher tax brackets as wages rise.

• Inheritance Tax: Potential changes to exemptions, affecting tax on estates over £325,000.

• Capital Gains Tax (CGT): Speculation on rate increases, though significant hikes have been downplayed.

• Pensions: Possible revisions to tax relief and tax-free lump sum limits.

• Stamp Duty: Thresholds for property taxes set to revert to 2022 levels in March 2025, with no commitment from Labour to extend them.

• Non-Dom Status: Labour aims to tighten rules for those whose permanent home is outside the UK.

• Fuel Duty: Possible adjustments to the fuel duty freeze, though motoring groups advocate against it.

Microsoft boss gets £25m pay rise

📍Top line: Microsoft’s CEO, Satya Nadella, saw his compensation rise to £61 million last year, marking a 63% increase over the previous year.

• Pay Increase Amid Layoffs: This substantial increase in total pay comes in a year marked by significant challenges for the company, including the layoff of 2,500 employees, with 1,900 cuts coming from its gaming division following Microsoft’s $69 billion acquisition of Activision Blizzard. 

• Cybersecurity Breaches and Accountability: Microsoft has faced major cyber breaches in 2023 linked to suspected state-sponsored hackers from Russia and China, prompting serious scrutiny of the company’s security measures. 

• Company Performance and Investor Returns: Despite the cybersecurity challenges, Microsoft has continued to deliver strong financial results for its investors, with its stock rising by 16% this year. This performance has solidified Microsoft’s position as the world’s third most valuable company with a market capitalisation of $3.2 trillion, now just behind Nvidia and Apple.

Elsewhere in business:

🛒 Marks & Spencer is adding self-service checkouts to changing rooms in 180 stores, allowing customers to try on clothes and pay without queuing. “We want customers to try, pay, and go,” said operations director Sacha Berendji, ahead of a broader store revamp.

🥩 Flat Iron, the popular steakhouse chain, is considering a potential sale or securing third-party investment following record-breaking financial results.Tthe chain operates 16 restaurants in London, Cambridge, Leeds, and Manchester, with plans to open four to five new sites annually. The company’s latest financials show a strong performance, with a 38% sales increase to a record £49.6 million for the year ending August. Underlying profits also rose to £5.7 million, up from £3.8 million in 2023.

AI helps graduate applications soar

📍 Top line: Graduate job applications have reached an all-time high, with more than a million submitted in the past year. Employers now receive an average of 140 applications per graduate position—up 59% from last year—while higher-paying fields, like IT and digital, face up to 205 applicants per role.

Experts attribute the increase to reduced academic barriers, with fewer firms requiring a 2:1 degree, along with the ease of AI-driven applications.

Key points:

• Graduate Vacancies Stagnant: Job growth for graduates remains limited at just 4%, with only 1% growth anticipated next year.

• AI's Double-Edged Role: While AI speeds up applications, it can result in “200 identical CVs,” making it harder for recruiters to spot genuine candidates.

• Recruiter Adaptations: Over two-thirds of employers are altering their hiring processes in response to AI’s impact.

• Concerns Over AI Bias: AI screening tools might unintentionally amplify biases if trained on biased data

Elsewhere in the economy:

🍺 The UK government may soon make it easier for pubs to serve independent, local beers, as Chancellor Rachel Reeves explores new ways to boost the pub sector. In particular, the Treasury is considering ways to loosen the "beer tie" system, which currently limits tied pubs to serving only beer from their corporate owners in exchange for lower rents.

✈️ British Airways has announced the suspension of all flights between New York and London Gatwick until 2025, citing significant delays in receiving Rolls-Royce Trent 1000 engines. This suspension affects a route BA has operated since 2015 and one that’s especially in demand during the winter season, with many British travelers spending Christmas in New York.

Mastercard has opened applications for a host of its Summer 2025 Internships in London. The firm has positions available in product management, project management, sales and enterprise strategy. Applicants may specify a preferred function or apply to all roles with a single application! The internships are open to all undergraduates due to graduate no earlier than 2026. Apply now here.

Toy drones present terror risk on streets, UK warned

📍Top line: Toy drones could pose a terror risk on UK streets Jonathan Hall KC, the government’s Independent Reviewer of Terrorism Legislation, has warned. Calling for tighter drone regulation, he stated the law must adapt to prevent misuse by extremists.

• Warning Issued: Hall called for stricter regulation to prevent drones from being weaponised by extremists.

• Regulatory Gap: Currently, only drones over 250g require registration and a theory test, leaving lighter models unregulated.

• Security Concerns: Hall warned of potential drone misuse, such as racing drones down streets or disrupting traffic.

• Legislative Push: Hall emphasised that regulations must keep pace with technology to prevent “moral panic” or misuse.

Elsewhere in tech:

📱 Apple is exploring new health care technologies to support people at risk of diabetes, and has tested an app designed to help users manage food intake and make lifestyle changes. Participants monitored blood sugar responses to specific foods, using existing market devices to track glucose-level changes and identify foods that may elevate blood sugar. For example, if a spike was logged after a high-carb meal, the system would suggest alternatives, such as switching to protein-based options.

🤖 Google is developing an AI tool that can take over computers. Dubbed, "Project Jarvis," the feature is designed to handle common web-based activities like research and online shopping, and will operate specifically within Chrome. Expected to launch with Google’s next-generation AI model, Gemini, in December, Jarvis will be capable of interpreting screenshots, clicking buttons, and entering text to automate tasks.

🇨🇳 Shanghai authorities are enforcing strict regulations on Halloween costumes this year, aiming to prevent gatherings with potentially politically charged outfits. Police have already detained individuals wearing costumes and escorted them to an administrative building where they were required to remove their make-up and alter their appearance.

❌ Labour MP Mike Amesbury has been suspended following CCTV footage showing him involved in a physical altercation on the street. The footage shows Amesbury, who represents Runcorn and Helsby, punching a man who fell to the ground, and then continuing to strike him. Several bystanders were seen intervening during the incident.

👑 King Charles III is preparing to return to a "full programme" of royal duties next year after a whirlwind tour of Australia and Samoa, despite his ongoing cancer treatment. Staff members are optimistic about the King’s ability to manage a busier schedule in 2025, as they have informed government ministers that the usual slots for royal tours are available again.