Business

Former Deputy Prime Minister Sir Nick Clegg has warned that the current wave of valuations across the artificial intelligence sector is “crackers”, arguing that many AI businesses have yet to demonstrate viable paths to profitability despite the billions pouring into machine learning.

Speaking at The Times Tech Summit, Clegg said that even the world’s leading AI firms — including so-called “hyperscalers” developing large-scale models — are struggling to show how their capital expenditure will translate into sustainable returns.

“I think there’s certainly a correction coming in valuations,” he said. “These valuations do seem pretty crackers. I don’t see any business model yet, even of the leading AI hyperscalers, that can recoup that capital expenditure. Some of the AI labs that don’t have a particularly good business model will be very exposed in a market correction.”

Clegg’s comments add to growing concerns from economists and regulators that the AI boom may be inflating a bubble similar to the dotcom era. The International Monetary Fund’s chief economist recently drew parallels to the early 2000s internet crash, which wiped $5 trillion from markets, while the Bank of England has cautioned against a potential “sudden correction” in AI-related valuations.

Investors have poured tens of billions into foundation model developers and AI infrastructure providers, betting on long-term dominance in generative and enterprise applications. But analysts warn that high compute costs, slow commercial deployment and unclear monetisation models are creating tension between hype and profitability.

Clegg, who stepped down this year as Meta’s president for global affairs after six years with the company, also used his appearance to criticise Britain’s heavy dependence on American technology infrastructure.

“I think it’s pretty difficult to assert anything other than that we are a vassal state of American technology,” he said. “We are wholly dependent on every level of the stack for technology from a country where the geostrategic interests are no longer aligned in the same way they have been for the last 30 years.”

He warned that the UK’s lack of domestic AI infrastructure and homegrown capability left it in a “perilous state”, particularly amid widening political rifts between the United States and Europe.

Clegg’s intervention reflects a wider unease in Silicon Valley and global markets as AI development enters its first period of scrutiny since the 2022–23 hype cycle. While some companies — including OpenAI, Anthropic and Google DeepMind — continue to secure massive funding rounds, investors are beginning to demand clearer paths to revenue growth and operational sustainability.

Analysts expect 2026 to mark a turning point for the sector, with a likely market correction separating commercially resilient players from speculative bets. For now, Clegg’s warning serves as a reminder that even amid rapid innovation, the AI gold rush may be running ahead of economic reality.

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Nick Clegg: AI company valuations are ‘crackers’ and ripe for correction

Supermarket giant Morrisons will close 103 outlets across the UK this year — including cafés, florists, pharmacies and convenience stores — in its latest effort to streamline operations and refocus investment on core areas of growth.

The closures form part of a broad restructuring strategy to “accelerate growth” and “optimise operations”, following mounting cost pressures and what chief executive Rami Baitiéh called “significant cost headwinds” since last year’s Autumn Budget.

The company has confirmed that 50 Morrisons cafés will close nationwide, alongside 17 Daily convenience stores, 13 florists, four pharmacies, and all 18 Market Kitchens, its in-store restaurant concept launched to offer freshly prepared meals.

In addition, 35 meat counters and 35 fish counters are also expected to shut as part of the overhaul. The exact closure dates for the Market Kitchens will be announced later this year.

Baitiéh said: “These closures are a necessary part of our plans to renew and reinvigorate Morrisons and enable us to focus investment into areas customers really value.
In most locations, our cafés have a bright future, but some sites face local challenges — and in those, closure and re-allocation of space is the only sensible option.”

He added that the company would seek partnerships with “third-party specialists” in some locations to maintain local services.

Morrisons reported a pre-tax profit of £2.1 billion in the year to October 2024, rebounding from losses of £919 million the previous year and £1.3 billion in 2023.

However, the supermarket chain continues to face higher energy and staffing costs, as well as fresh regulatory and tax burdens following the government’s latest fiscal measures.

“Consumers are feeling the squeeze,” Baitiéh said. “We are continuing to help customers make the most of stretched household budgets while managing the incremental impact of new legislation and cost inflation.”

The list of affected sites

Closures affect stores in London, Leeds, Glasgow, Birmingham, Bradford, Aberdeen, and dozens of regional towns across the UK.
A full list of closing cafés, florists, Market Kitchens and pharmacies is included below for readers to check if their local branch is affected.

Cafés closing (50 locations)

Bradford Thornbury • Paisley Falside Road • London Queensbury • Portsmouth • Great Park • Banchory North Deeside Road • Failsworth Poplar Street • Blackburn Railway Road • Leeds Swinnow Road • London Wood Green • Kirkham Poulton Street • Lutterworth Bitteswell Road • Stirchley • Leeds Horsforth • London Erith • Crowborough • Bellshill John Street • Dumbarton Glasgow Road • East Kilbride Lindsayfield • East Kilbride Stewartfield • Glasgow Newlands • Largs Irvine Road • Troon Academy Street • Wishaw Kirk Road • Newcastle UT Cowgate • Northampton Kettering Road • Bromsgrove Buntsford Industrial Park • Solihull Warwick Road • Brecon Free Street • Caernarfon North Road • Hadleigh • London Harrow Hatch End • High Wycombe Temple End • Leighton Buzzard Lake Street • London Stratford • Sidcup Westwood Lane • Welwyn Garden City Black Fan Road • Warminster Weymouth Street • Oxted Station Yard • Reigate Bell Street • Borehamwood • Weybridge Monument Hill • Bathgate • Erskine Bridgewater Shopping Centre • Gorleston Blackwell Road • Connah’s Quay • Mansfield Woodhouse • Elland • Gloucester Metz Way • Watford Ascot Road • Littlehampton Wick • Helensburgh

Florists closing (13 locations)

Aberdeen King Street • Bradford Enterprise 5 • Canning Town London • Evesham Four Pool Estate • Newcastle-under-Lyme Goose Street • Rubery Bristol Road South • Sheffield Meadowhead • Sheldon Birmingham • St Albans Hatfield Road • St Helens Boundary Road • Stirchley Birmingham • Sunderland Doxford Park • Swinton Hall Road

Market Kitchens closing (18 locations)

Aberdeen King Street • Basingstoke Thorneycroft • Brentford Waterside • Camden Town London • Canning Town London • Cheltenham Up Hatherley • Eccles Irwell Place Greater Manchester • Edgbaston Birmingham • Gravesend Coldharbour Road • Kirkby Merseyside • Leeds Kirkstall • Lincoln Triton Road • Little Clacton Centenary Way • Milton Keynes Westcroft • Nottingham Netherfield • Stoke Festival Park • Tynemouth Preston Grange North Shields • Verwood Dorset

Pharmacies closing (4 locations)

Birmingham Small Heath • Blackburn Railway Road • Bradford Victoria • London Wood Green

Morrisons said the closures will help redirect investment towards areas of growth such as price competitiveness, loyalty schemes and store modernisation — but analysts warn the decision underscores the continuing strain on UK retailers navigating rising costs, changing consumer habits and post-pandemic high-street challenges.

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Morrisons to shut 103 outlets including cafés, florists and pharmacies in major restructure

It was one of those small domestic moments that tells you everything you need to know about the modern British service industry. I was visiting my parents, both octogenarians, both long past the stage of bothering to shop around for anything,  when an envelope from the AA thudded onto the doormat. My mother opened it with the slight suspicion that all letters now require, only to find the annual renewal notice for their breakdown cover.

“Two hundred and sixty pounds thirty-eight,” she said, frowning at the figure as if it were a medical diagnosis. “Though that’s apparently cheaper than last year – it was £280.25 – and they’ve given us a discount of £107.25.” She seemed reassured, which is precisely how the AA likes it.

Then my eye caught a line in bold type: ‘Thank you for your 64 years of loyalty’.

Sixty-four years! That’s longer than most marriages, and certainly longer than any of the call centre staff at AA Insurance have been alive. My stepfather has been a paying customer since the Beatles were still playing in Hamburg. If loyalty were a virtue the AA truly valued, he’d have a gold card, a free tow truck, and a man in a yellow jacket stationed permanently outside the house.

But no. The letter was a masterpiece of corporate doublespeak – a thank you note wrapped around a quiet mugging. £260.38 for a service that, as it turns out, could be had for a third of the price if you knew where to look.

Being the dutiful son (and, frankly, unable to resist a little consumer sleuthing), I fired up the laptop. Three minutes on the AA’s own website later, I had a quote for exactly the same cover: £97.64. “Introductory offer,” it said. “Full price £162.43.”

So, £97.64 for a new member, or £260.38 for a customer of sixty-four years. You don’t need a degree in behavioural economics to see what’s going on here. The so-called “discount” on the renewal was a magician’s trick: look at this £107 off! – while your wallet quietly disappears.

It’s a swindle dressed in the polite language of British customer service. And my parents, like so many others of their generation, would have paid it. Because that’s what loyal customers do. They trust. They assume that six decades of prompt payment and polite correspondence entitles them to fairness. But in the world of modern subscriptions and annual renewals, loyalty isn’t rewarded, it’s monetised.

The British have always had a sentimental attachment to loyalty. We like to think that staying with the same insurer, bank or utility company means something. It’s a vestige of that post-war mindset where you had your man from the Pru, your chap at the bank, and your account with the AA. You stuck with them and they looked after you.

But that social contract has long since been ripped up. Today, loyalty is treated as a sign of weakness. Companies like the AA rely on inertia,  on the quiet assumption that most customers, especially the elderly, will simply renew whatever number appears on the letter.

Meanwhile, the marketing department pours its energy into wooing the new, the fickle, the flighty, those who’ll take their “introductory discount” for a year, cancel at renewal, and start again under another email address. The whole business model has become a revolving door of introductory offers and loyalty penalties.

It’s not just the AA, of course. Every industry plays the same game. Broadband providers, insurers, even the streaming platforms. The longer you stay, the more you pay. It’s a perverse inversion of what loyalty once meant. It’s like being charged extra for ordering the same pint every night at your local.

What’s really galling is how clever it all is. The renewal letters are written to sound reassuring, trustworthy, a little paternal even. They thank you for your custom, list your “discounts”, and refer vaguely to “enhanced cover” you probably never asked for. They hope you’ll glance at the total, shrug, and write the cheque.

In my parents’ case, it was only luck, or filial nosiness, that stopped them being charged nearly triple what the policy was worth. And there’s something morally wrong about that. It’s one thing to overcharge the inattentive; quite another to quietly exploit a generation that built your business in the first place.

Imagine if the AA sent out a letter saying: “Dear Mr X, as one of our longest-standing members, we’re delighted to offer you the same price we give to new customers.” Now that would be loyalty. But of course, that would mean voluntarily surrendering profit. And in the boardroom logic of today’s Britain, that’s heresy.

There’s a wider moral here for all businesses, especially those that like to boast about their heritage. True loyalty is built on mutual respect, not on tricking your oldest customers into overpaying.

We’re entering an era where trust is the scarcest commodity. Consumers are savvier, angrier, and far less forgiving than they used to be. Social media ensures that one story of a pensioner being overcharged can go viral in hours. And yet, the temptation to milk existing customers remains irresistible – it’s easy revenue, and it rarely makes the news.

But brands that behave this way are mortgaging their reputation for short-term gain. Because once people cotton on, as they inevitably do, the damage is irreversible. Sixty-four years of loyalty can vanish in sixty-four seconds.

In the end, I cancelled my parents’ renewal and signed them up anew. The process took less time than boiling the kettle. My mother was delighted. My stepfather, ever the gentleman, just shook his head. “So much for loyalty,” he said.

Quite. The AA may get them back on the road when the car breaks down, but when it comes to customer loyalty, it’s the company itself that’s stranded on the hard shoulder – hazard lights flashing, engine sputtering, wondering where all its good will went.

We asked the AA for a response and an AA spokesperson said: “Our pricing reflects the service offered. The new member price is discounted, but doesn’t provide the same member benefits.

“We would welcome the chance to talk to this member to look at their renewal and see what they are comparing it to online.” My response to  this, is sorry AA, but it is exactly the same service for exactly three times the cost.

Read more:
The AA’s loyalty problem: sixty-four years and still taken for a ride

Digital certificates play a major role in enterprise security as they protect everything from websites and applications to IoT devices and cloud workloads.

But large organizations are now juggling with thousands of certificates across hybrid and multi-cloud environments and managing them has never been more challenging. To make it even harder, certificate lifespans are reduced to 398 days and are expected to shrink even more in the coming years. At this pace, spreadsheets and manual reminders are no longer a realistic option.

The challenges extend beyond compliance alone. To IT and security teams, the question now is not whether to automate, but how quickly they can transition to stay secure, resilient, and compliant at scale.

Why Manual Certificate Management No Longer Works

The manual approach to certificate management no longer works well in the rapid, complex IT world. Many organizations still handle their certificates manually, a method which will soon become impossible to manage since digital ecosystems are developing rapidly.

Without centralized visibility, teams lack a clear picture of where the certificates are deployed, who owns them and when they expire. This can be impossible to track in a dynamic environment, where the lifespan of each certificate can be two or three hours in practice.

Even the most disciplined teams may overlook certificates. One missed renewal may lead to unplanned service outages, application downtime or even user disruptions. In some situations, expired certificates have resulted in breaches or compliance violations because of broken encryption or failed authentication. And as enterprises expand into cloud, DevOps, and IoT, this problem only grows.

The Growing Complexity of Modern IT

Modern IT is no longer defined by a single data center. Enterprises now operate certificates in:

Multi-cloud deployments like AWS, Azure, GCP
DevOps pipelines in which CI/CD certificates are implemented into their workflows.
IoT ecosystems with thousands of connected devices
Hybrid IT environments spanning legacy systems and edge

This makes it almost impossible to have full visibility and control with manual processes.

The Risks of Manual Certificate Management

Here are some of the major security and business risks associated with manual certificate management:

Wasted IT Resources

Managing certificates and renewals manually requires a significant amount of time and staff, which otherwise could be used on creating strategic security initiatives.

Downtime and Outages

Missed certificate renewals can result in outages that can fail customer transactions, employee productivity or integrations. This can create a negative effect on your brand name.

Compliance Challenges

Expired or misconfigured certificates can cause compliance violations under frameworks like PCI DSS, HIPAA, and GDPR. These violations can result in financial penalties and reputational damage.

Security Gaps

Attackers are always looking for expired or weakly managed certificates to tamper communications, input malware, or impersonate trusted services. Manual management can leave too many openings for exploitation.

These risks make it clear that manual management can’t keep up, and automation is what everyone should adopt.

Why Automation Is the Only Scalable Answer

Automated certificate management is the most effective solution to eliminate risks and get an end-to-end solution that discovers, issues, renews and revokes the digital certificate at scale.

Automation can be achieved through several methods like agent-based or agentless discovery tools. These tools constantly scan infrastructure to identify every certificate in cloud environments, containers, load balancers, and legacy systems. Issuing and renewing are commonly accomplished via REST APIs, SCEP, or ACME SSL to dynamically request and install certificates. There are also numerous solutions that can work with CI/CD pipelines, configuration management tools, and secrets managers to enable DevOps workflows.

A 2021 DigiCert survey confirmed that enterprises are operating more than 50,000 certificates, and more than two-thirds report that their systems have gone offline because of unexpected expirations. Not only does automation eliminate these risks, but also provides the assurance that the policy requirements for internal and external are met.

With automation embedded into the certificate ecosystem, organizations can achieve scalability in a secure manner, less overhead in operations, and maintain visibility and control over their digital trust infrastructure.

Core Benefits of Certificate Automation

Automated certificate lifecycles help to save time and money. The following are a few benefits explaining why every business should enable automation.

Automated Discovery

Automation scans through the entire IT environment in cloud and on-premises infrastructure and IoT devices to identify all existing certificates, including those that may have been deployed without central management. This assists in discovering the unknown or rogue certificates that might have been brought by shadow IT, third-party vendors or decentralized teams.

Increasing visibility into all certificates deployed within the organization will enable the security and IT teams to more effectively evaluate risks and manage their public key infrastructure footprint.

Centralized Management

Once all the certificates are discovered automation can bring them into a centralized certificate management system. IT teams and security teams can manage all the certificates from a single dashboard to monitor certificate health, track expiration timelines and enable consistent security policies.

It also helps with governance and compliance by generating audit reports maintaining regulatory compliance across hybrid and multi cloud environments.

Automated Lifecycles

Certificate lifecycles including issuance, renewal, installation, and revocation are fully automated. Expiring certificates are renewed before they cause disruptions, and new certificates can be provisioned and deployed instantly. This can be especially helpful for SSL certificates, as industry trends continue to shorten certificate lifespans.

This reduces the risk of unwanted expirations and security errors and frees up IT and security teams from time-consuming, repetitive tasks.

Business Impact

Automated certificate management delivers clear operational and strategic value to business by delivering:

More secure posture by eliminating outdated or misconfigured certificates.
Reduced expenses through fewer failures and human interventions.
Better uptime and reliability of customer-facing services and internal systems.

How to Choose the Right Automation Solution

When considering automation platforms, everyone must focus on:

Scalability between multi-cloud and hybrid platforms.
Protocol support, such as ACME, API and DevOps toolchain integrations.
Compliance readiness with in-built reporting and audit features.
Proactive monitoring, which provides notifications of expired or misconfigured certificates.

Conclusion

Digital trust has become a foundation of modern business, and it can no longer be sustained at scale with manual certificate management processes. With shorter certificate lifespan and complex IT environments, the potential risks associated with outages, compliance failures, and security gaps will continue to rise.

Automated certificate management can help build scalable digital trust while assuring all applications, devices, and services are grow safely, minimizing the operational burden, and ensuring constant visibility and control. Companies that embrace automated certificate management today will not only remain ahead of compliance requirements but can also develop resilience to changes in the digital landscape.

Read more:
The Rise of Automated Certificate Management: Simplifying Security at Scale

Paul Diamond is a strategic investor with over 25 years of experience in building businesses across various sectors. A truly international figure, his ventures have spanned financial services, media, property development, and renewable energy.

Paul entered Zimbabwe to rehabilitate gold mining operations with no prior experience, nonetheless achieving short-term success. Alas, political upheaval and legal chaos led to the end of this venture. while his public profile remains low, his impact on the industries he engages with is significant.

Early Life and Foundational Influences

Paul Diamond demonstrated exceptional learning and athletic abilities from a young age. He served as Head Boy in primary school and Deputy Head Boy in high school. His early exposure to extreme loyalty, personal risk, and effort shaped his character.

Paul Diamond’s Early Business Ventures

By his 20s, Paul Diamond built significant wealth through astute, behind-the-scenes investments. He purchased a radio station in one of the first successful Black Empowerment transactions in South Africa.

Johannesburg’s Black Economic Empowerment policies (better known as BEE), introduced in the post-apartheid era, were designed to address the deep economic inequalities created by apartheid and promote the participation of Black South Africans in the economy.

Formalized in the 1990s under the leadership of the African National Congress, they aimed to increase the economic involvement of Black South Africans which were historically underserved during the time of apartheid.

The BEE framework initially focused on broadening access to wealth, education, and employment for historically marginalized groups, with the most notable program being the Broad-Based Black Economic Empowerment (B-BBEE) Act of 2003. It encouraged private businesses to adopt measures like preferential procurement and skill development.

In a more policy-motivated move, Diamond structured one of South Africa’s first black-owned insurance companies, which included careful navigation of complex racial and business barriers.

He also took over a cash shell listed on the Johannesburg Stock Exchange and injected call center and insurance assets into the vehicle. Paul successfully sold these businesses, strategically operating largely out of the public eye to avoid excessive exposure.

The Paul Diamond Zimbabwe Chapter: Gold and Collapse

For Paul Diamond, Zimbabwe was his first venture in natural resources and taught him some important lessons about the industry. Zimbabwe’s history with gold mining has been deeply intertwined with both economic ambition and political unrest. Gold has long been a central part of the country’s economy, particularly during the colonial era when the British South Africa Company established a monopoly on gold production in the late 19th century. The extraction of gold during this period was exploitative, with the local population subjected to harsh labor conditions, and the profits funneled into the hands of foreign interests.

After Zimbabwe gained independence in 1980, the newly formed government inherited a gold-rich landscape but faced challenges in controlling and benefiting from the industry. The Zimbabwean government nationalized many mines, but a combination of mismanagement, corruption, and international sanctions contributed to a steady decline in the sector’s productivity throughout the 1990s and early 2000s.

Paul Diamond entered Zimbabwe to rehabilitate gold mining operations without prior experience. Around this time, hyperinflation and a lack of regulation in Zimbabwe led to a collapse of safety and profitability in the gold mining sector. Despite this, he achieved short-term success. His involvement in particular was mired by political upheaval, which led to his exit from the venture.

Recovery and Rebuilding: The Next Chapter

He successfully sued Sidney Frankel, a polarizing figure in a major abuse case, demonstrating formidable legal resourcefulness and resilience. This case, referred to as the Frankel 8, resulted in a change to the Constitution in South Africa.

Paul built up his impressive portfolio through several high-end businesses, deals and investments spanning property development, air travel and energy. Today, Paul Diamond is a silent owner of one of Europe’s most successful renewable energy investments. He is focused on building platforms based on ethical principles, strategic precision, and cultural contribution.

The “Diamond” Standard Personal Attributes

Diamond possessed a “rare alchemical ability” to turn potential into actual, both in his businesses and in those whom he works with. Paul carries a natural, and irrepressible sense of mischief, charm, and charisma, which disarms all defenses, dissolves tensions, and opens doors without the slightest force.

Diamond moves through pressure with a velvet glove over a steel fist: kindness and wit when it serves; precision and steel when it must. This magnetic quality allows him to win allies, diffuse conflicts, and pull people into his orbit without visible effort. This is also the quality that makes him a natural-born leader who reaches hearts as well as minds.

His power comes from his profound resilience and persistence against all odds—from his refusal to let either defeats or betrayals define him. He is the ultimate survivor and an empowered leader.

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Paul Diamond Work and Ventures in Zimbabwe

Rumoured increases to employer pension contributions in next month’s Budget are sparking panic among UK businesses, with nearly one in five firms warning they could face insolvency if contribution rates rise.

A survey of 500 businesses by consultancy Barnett Waddingham found that 19% of employers believe a mandatory hike in workplace pension contributions could push them over the edge financially. More than 30% say they would respond by freezing recruitment or cutting headcount, further tightening an already strained labour market.

The warning comes as companies continue to absorb cost increases introduced in Chancellor Rachel Reeves’ previous Budget, including: The National Living Wage rising to £12.21 from April 2025 and Employer National Insurance Contributions increasing from 13.8% to 15%.

Martin Willis, partner at Barnett Waddingham, cautioned that even a modest rise in pension costs could have severe consequences.

“Even a small increase could disrupt businesses, stall hiring and in some cases threaten livelihoods,” he said. “These findings highlight the financial tightrope many firms are still walking, exacerbated by the national insurance hike and long-term wage inflation.”

Only 17% of firms surveyed said they could absorb the rise with minimal disruption.

While businesses fear additional financial pressure, employees are also feeling the strain, with growing concern that the current 8% auto-enrolment minimum contribution is insufficient for a secure retirement.

According to Standard Life, almost 60% of Gen Z workers mistakenly believe auto-enrolment alone will provide a comfortable pension, despite industry experts warning it falls far short of long-term adequacy.

The government revived the Pensions Commission in July to address the looming retirement crisis, but Barnett Waddingham warned that reform must not come at the expense of business survival.

Willis urged a careful approach: “We need a balanced, sustainable strategy that strengthens retirement outcomes while protecting the financial continuity of UK employers.”

With insolvency risks rising and labour market fragility increasing, any move to raise employer pension obligations is likely to intensify calls for phased implementation, tax incentives or offsetting measures to protect smaller firms.

As the 26 November Budget approaches, the government faces a difficult trade-off: improve pension adequacy now — or risk placing more companies under financial strain and triggering job losses in the process.

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Businesses warn pension contribution hike could trigger insolvencies as Budget rumours grow

High-earning professionals earning just over £100,000 — often dubbed “Henrys” (High Earners, Not Rich Yet) — could be among the hardest hit in next month’s Budget, with analysts warning their effective tax rate could rise beyond the already punitive 60% threshold.

Typically consisting of mid-career professionals and dual-income households with limited accumulated wealth or assets, Henrys are often caught in what experts call the UK’s “stealth tax trap”. This group is already disproportionately affected by frozen tax thresholds, reductions in childcare support and penal cuts to personal allowances once income exceeds £100,000.

Under current rules, workers earning between £100,000 and £125,140 lose £1 of their £12,570 personal allowance for every £2 earned above the £100,000 threshold, creating a marginal tax rate of roughly 60%.

Hargreaves Lansdown notes that many Henrys also lose access to government-funded childcare once their income crosses £100,000 — adding thousands of pounds to annual household costs that lower earners do not incur.

With wage inflation continuing, analysts warn that an extension of the existing income tax threshold freeze — widely expected to feature in Rachel Reeves’ November Budget — will drag more professionals into this high-tax band.

The number of taxpayers paying the additional rate of 45% on income over £125,140 has more than doubled since 2022, highlighting how fiscal drag is reshaping the tax landscape for upper-middle earners.

Pension relief and property reforms could deal further blows

While many Henrys currently mitigate tax exposure by making salary sacrifice contributions into pension schemes, proposals to introduce a flat 20% rate of pension tax relief could dramatically reduce the effectiveness of this strategy for higher-rate taxpayers.

Such a reform could raise billions for the Treasury by cutting back generous reliefs for earners paying 40% or 45% tax — many of whom fall into the Henry category.

Potential changes to council tax could add further strain. Ministers are exploring reforms to ensure pricier homes pay more, with suggestions ranging from new higher tax bands to premium surcharges on high-value properties.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “Henrys would be in the frame for even higher tax bills if reforms to council tax are introduced, especially in London and large cities where property values are higher.”

She warned that proposals once considered by George Osborne — including additional bands for expensive properties — may re-emerge under Labour’s revenue plans.

The Chancellor is expected to target individuals with the “broadest shoulders” to meet her fiscal rules amid weak growth forecasts and higher borrowing costs. Analysts say this could leave Henrys exposed to further income tax measures, limited reliefs and higher local taxation — despite not being traditionally wealthy.

With the cost of living still elevated and childcare, housing and pension pressures weighing heavily on this income group, tax planning is expected to rise up the agenda for professionals in the £100,000–£150,000 bracket as Budget day approaches.

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‘Henrys’ braced for harsher Budget as analysts warn effective tax rate could exceed 60%

Government borrowing rose sharply to more than £20bn in September – the highest level in five years – piling further pressure on Chancellor Rachel Reeves as she prepares a tax-raising Budget next month.

According to the Office for National Statistics (ONS), monthly borrowing increased by £1.6bn from August, contributing to a six-month total of £99.8bn, the second-highest level ever recorded for the first half of a financial year. The current budget deficit now stands at £71.8bn.

Debt servicing costs also surged, with interest payments hitting £9.7bn in September. Public debt as a share of GDP climbed to 95.3%, up one percentage point on the year.

The figures come at a critical time for Labour, as the Chancellor attempts to meet strict fiscal rules requiring day-to-day spending to be matched by revenue by 2030 — a target that economists warn could now involve tax rises of at least £25bn–£30bn.

Richard Carter, head of fixed interest research at Quilter Cheviot, said the UK economy was now “in something of a straitjacket”.

“Fiscal headroom is all but non-existent, and growth is being hampered by a high tax burden and uncertainty over further revenue-raising measures,” he said. A recent fall in gilt yields has provided some breathing room, but markets will be watching Reeves closely at the despatch box, he added.

James Murray, Chief Secretary to the Treasury, said the government remained committed to fiscal discipline: “This government will never play fast and loose with the public finances. We plan to bring down borrowing and deliver the largest deficit reduction in the G7 over the next five years.”

Opposition figures, however, accused Reeves of already losing control of the nation’s finances. Conservative Shadow Chancellor Mel Stride said: “If Rachel Reeves had a plan – or a backbone – she would get spending under control instead of plotting yet more tax hikes.”

Economists believe Reeves’s Spring Statement headroom of £9.9bn has been largely wiped out by: higher-than-forecast borrowing costs, revisions to welfare reform savings, and an expected OBR productivity downgrade

John Wyn-Evans, head of market analysis at Rathbones, warned taxes could need to rise by “£25bn or more” unless Labour opts for politically difficult spending cuts.

To soften the impact of expected tax rises, the Treasury is racing to announce pro-growth reforms including:
• A deregulation drive targeting £6bn in business admin savings
• Planning system overhauls
• Regional investment incentives

Some analysts warn the Employment Rights Bill — not yet costed by the OBR — could increase regulatory burdens and dampen corporate confidence.

Reeves has told ministers to prioritise reducing inflation, which is expected to hit 4% for September. Lower inflation could pave the way for earlier interest rate cuts, easing government borrowing costs and calming bond markets.

According to the OBR, the government is projected to spend over £110bn on debt interest in 2025. Any loss of investor confidence would likely trigger further rate pressure — forcing deeper tax rises or spending reductions in future Budgets.

Read more:
Government borrowing surges to £20bn in September as Reeves faces mounting pressure ahead of tax-heavy Budget

Employees returning to work after cancer treatment must be actively involved in how their reintegration is managed, according to new research that warns current HR support structures are too rigid and often fail to reflect the lived reality of survivors.

A study from NEOMA Business School, conducted in collaboration with IAE Lyon, found that traditional mechanisms such as recognised disability status (RQTH in France), reduced working hours and remote working only address surface-level needs, overlooking the deeper physical, cognitive and emotional changes that often follow a cancer diagnosis.

The research, based on a two-year action project involving 25 organisations and nearly 200 participants, explored how employees navigate their professional lives after treatment, highlighting a gap between employer policies and employee experience.

Professor Rachel Beaujolin (NEOMA) and Associate Professor Pascale Levet (IAE Lyon) found that returning to work after cancer involves a profound process of adaptation rather than a simple reactivation of previous routines.

Survivors frequently report:
• Persistent fatigue
• Reduced concentration and cognitive changes
• Altered time perception
• A re-evaluated relationship with work and purpose

“Returning means relearning to work,” the authors note, often within a body and mindset that no longer responds as it once did.

The researchers describe many survivors’ time away from work as an experience of “abduction” — being abruptly taken out of their professional environment. Upon return, even familiar tasks can feel newly complex or overwhelming. However, this disruption can also be a powerful catalyst for learning and new practices.

To support this transition effectively, the study recommends creating reflection spaces and narrative-based workshops that allow employees to express and share their challenges and learning journeys in a structured environment. These insights can then inform collective practices and managerial approaches.

Given the diverse nature of cancer treatments and individual experiences, the researchers argue that standard protocols often fall short.

“It is not about proposing a standard protocol, but about learning to think from real situations,” says Professor Beaujolin. “We must recognise the knowledge being built through these experiences, and create spaces where this knowledge can circulate.”

With survival rates increasing and more employees choosing to work before, during and after treatment, employers face growing expectations to provide meaningful, human-centred reintegration strategies. Beyond compliance with legal frameworks, this research suggests that effective return-to-work support requires listening, adaptability and co-creation with the employee.

The study, published in Revue Française de Gestion, signals a growing shift in HR thinking — from procedural support to partnership-based recovery models that honour the voice and agency of survivors.

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Employers urged to give cancer survivors a stronger voice when returning to work

Waymo, the autonomous vehicle company backed by Google’s parent firm Alphabet, has confirmed plans to roll out its self-driving ride-hailing service in London in 2026, marking a major step forward in the UK’s adoption of autonomous transport.

Already operating fully driverless services in US cities including Phoenix, Los Angeles and San Francisco, Waymo will work with fleet partner Moove to establish a service in the UK capital, using Jaguar Land Rover’s electric I-Pace vehicles equipped with its proprietary Waymo Driver technology.

The move places Waymo in direct competition with major ride-hailing rivals Uber and Lyft, both of which are preparing to launch their own autonomous services in the UK next year. Uber is partnering with London-based AI firm Wayve, while Lyft has teamed up with Chinese internet giant Baidu to expand into both the UK and Germany.

“We’re thrilled to bring the reliability, safety and magic of Waymo to Londoners,” said Tekedra Mawakana, Waymo’s co-CEO. “We’ve demonstrated how to responsibly scale fully autonomous ride-hailing, and we can’t wait to expand the benefits of our technology to the United Kingdom.”

The company is already working with UK regulators to secure required approvals under the government’s proposed piloting scheme for autonomous vehicles (AVs). Waymo employs engineering teams in both London and Oxford and has longstanding R&D links to the UK.

UK Transport Secretary Heidi Alexander welcomed the announcement, calling it a win for innovation, mobility and economic growth.

“I’m delighted that Waymo intends to bring their services to London next year,” she said. “Boosting the AV sector will increase accessible transport options while bringing jobs, investment and opportunities to the UK.”

Autonomous vehicles have faced scrutiny worldwide following incidents involving early-stage deployments, but UK safety advocates have cautiously welcomed Waymo’s expansion, citing strong safety performance data.

“Autonomous vehicles, such as Waymo, hold the potential to significantly improve road safety because the human driver is removed,” said James Gibson, executive director of Road Safety GB. “Waymo vehicles have shown far safer performance compared to human drivers across more than 100 million autonomous miles.”

Waymo’s UK launch sets the stage for a competitive London market where multinational ride-hailing providers will race to scale autonomous transport.

Analysts say the success of early pilots will depend on public acceptance, pricing, regulatory clarity and the ability of AVs to operate safely amid London’s complex urban environment.

With 2026 shaping up to be a defining year for autonomous mobility in the UK, London could become one of Europe’s first major cities to see large-scale deployment of driverless ride-hailing services — provided regulators, operators and the public remain aligned on safety and economic impacts.

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Waymo to launch autonomous ride-hailing in London in 2026 as race with Uber and Lyft intensifies