On Thursday 1 October the yield on 30-year gilts rose above 6% during trading for the first time since 1998, and the 10-year yield reached about 5.5%, its highest since July 2007. The FTSE 100 had its worst day since May. It was part of a global bond sell-off, driven by worries that higher oil prices will push up inflation, expectations of further rate rises and nerves ahead of the UK Budget.

Markets now put the chance of a Bank of England rate rise on 5 November at about 80%. KPMG estimated last month that higher borrowing costs and weaker growth had cut the Chancellor's Budget headroom from £23.6bn to about £12bn, and said restoring it could mean tax rises or spending cuts.

Why it mattersHigher gilt yields feed through to business loans and fixed-rate mortgages, so both employers and candidates will feel it. A tight Budget on 28 October could also bring tax changes that land on payroll and finance teams.

£140m fund for East of England small firms

The British Business Bank launched a £140m fund on 23 September for smaller firms in Norfolk, Suffolk, Cambridgeshire, Essex and Hertfordshire, offering loans of £25,000 to £2m and equity of up to £5m. Firms that use it to grow are likely to need more finance support, from bookkeepers to finance directors.

Business confidence falls to a 17-month low

Business confidence in the Lloyds Business Barometer fell 12 points to 41% in September, its lowest since April 2025, as rising energy costs linked to Middle East tensions hit sentiment. Firms with turnover under £5m saw the sharpest drop, down 14 points to 39%.

Finance professionals wary of AI in hiring

In ACCA's global talent survey of more than 11,000 people, about 48% of accountancy and finance professionals had concerns about AI-led recruitment, citing bias, privacy and a lack of human contact. Among board directors, 54% questioned the growing use of automated tools to pick candidates.