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Deloitte, EY, KPMG and PwC have secured £1.5bn in UK public sector contracts during 2026, exceeding the £1bn awarded throughout 2025 and marking their second-highest annual total since 2012. According to Tussell, Deloitte leads with £650m across 108 contracts, followed by KPMG with £413m, EY with £261m and PwC with £212m. Major agreements include up to £456m for civil service training and substantial contracts covering energy efficiency, defence and advisory services. The figures represent potential contract values rather than actual expenditure and include local authorities and other public bodies. The awards come despite Labour's commitment to halve consultancy spending. A parliamentary committee has criticised inadequate government oversight of consultancy expenditure, while ministers maintain that central government spending has fallen by over £600m in 2024-25. A government spokeswoman argued that comparing wider public sector contracts with central government targets was "misleading". Further savings exceeding £700m annually are targeted by 2028-29.

 

The Times

The Financial Stability Board (FSB) has said it wants to see greater human oversight of agentic AI ​in final guidance on managing the technology's risks. The global standard setter said it had strengthened its recommendations on agentic AI, citing feedback to draft ​guidance published in June, increased interest among financial institutions in adoption of ​the technology, and the related risks and necessary controls. The group said more intensive human oversight ​will be critical in higher-risk use cases, and firms should establish clear, risk-based triggers ​for ⁠when an agent must seek human approval. A guideline that said financial institutions should ⁠treat ​AI as "synthetic employees" has been removed from the final guidance; rather, the FSB said firms should ​recognise that "AI agents do not reason like humans and may interpret pre-defined goals ​in unexpected ways."

 

Reuters

UK banks are holding excessive capital buffers that could stimulate economic growth, according to David Bailey, executive director of Prudential Policy at the Bank of England. He said discussions are underway with international regulators to simplify capital structures while the Prudential Regulation Authority was looking to refine capital requirements to free up more capital to be pumped into the economy. Bailey said banks are maintaining significant management buffers beyond regulatory requirements, which could support customers and households.

 

City AM

The Financial Conduct Authority plans to become an agentic regulator, using AI to automate its supervision and enforcement work, according to Jessica Rusu, chief data, information and intelligence officer.

 

Financial Times

Ofcom concluded that RedBird IMI's proposed takeover of The Telegraph was against the public interest, citing threats to press freedom. The regulator's findings, expected to be published today, follow a two-and-a-half-year wait and come as Prime Minister Andy Burnham faces scrutiny over his relationship with the UAE centred on Manchester City and the state's role in Manchester’s regeneration under his mayoralty.

 

The Daily Telegraph

Michael McGrath, the European Commissioner for democracy, justice, the rule of law and consumer protection, has said that Europe is currently satisfied with its AI regulations. Speaking at the Irish Government's AI summit, he stressed the need for a balance between harnessing AI's potential and ensuring proper guardrails for its development. "AI is developing so quickly; the technology is advancing, but we do have the regulatory guardrails in place," McGrath said. "The focus now is on the implementation and the enforcement of them in Europe."

 

The Independent UK

Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), has warned that widespread AI adoption could significantly erode global tax bases. At the IMF summit in Bangkok, she described AI as a "slow-moving tsunami" that may impact 60% of jobs in wealthy nations. Georgieva said: "AI may raise growth, but it could also reduce labour income, increase inequality, and erode the tax base." She urged governments to consider tax reforms to adapt to these changes, adding: "With debt already high, policymakers will need to make hard choices."

 

City AM

Two major UK gambling companies, Entain and Rank, have warned that further tax increases could lead to venue closures and job losses. Entain's CEO, Stella David, urged the Government to reconsider any tax hikes, stating they threaten the viability of many shops and livelihoods. Recent speculation suggests a potential rise in machine games duty, which could generate £458m. Rank's CEO, Richard Harris, echoed concerns, stating that increased costs would harm venue viability and investor sentiment.

 

Yorkshire Post

The Times

A group of Lloyd's syndicates is attempting to block £45m in defence funding for former Petrofac executives Marwan Chedid and George Salibi, who face bribery charges. The syndicates argue that the alleged fraud breaches their directors' and officers' (D&O) insurance policy. A High Court ruling mandated that coverage must continue unless the allegations are proven. The Serious Fraud Office (SFO) has charged Chedid and Salibi with bribery related to contracts worth $3.3bn. The trial is set to begin on 23 November at Southwark Crown Court. Lorna Emson from Macfarlanes commented: "This is a very important case for the insurance industry."

 

City AM

Credit Suisse has reached an $800m settlement related to the collapse of Greensill Capital, just before a significant court case. The settlement involves contributions from Marsh, Insurance Australia Group, and Tokio Marine, which provided insurance for Greensill's financial products.

 

Financial Times

Insurance Business

EasyJet pilots are concerned about potential job losses following the airline's £5.7bn acquisition by US private equity firm Apollo. Employee bodies in the UK, France, Portugal, and Spain also refrained from endorsing the acquisition, citing job security worries. Meanwhile, city advisers will reportedly share £334.5m in fees from the buyout.

 

Financial Times

The Times

The Daily Telegraph

Wyoming-based Payward, the parent company of crypto exchange Kraken, is buying Saldo Bank, a Lithuania-based, EU-regulated bank, as it looks to expand into traditional banking services. Arjun Sethi, the co-chief executive of Payward, said it had been building its banking operations "license by license, market by market", adding: "We are starting in the EU, and the ambition is global."

 

Financial Times

The Times

Switzerland's Supreme Court has upheld the Government's decision to revoke bonuses for former Credit Suisse bankers following the lender’s rescue by UBS, citing public interest due to taxpayer-funded rescue support.

 

Financial Times

Airbus aims to deliver 870 aircraft by year-end, overcoming supply chain issues, while planning production increases and new aircraft variants to meet future demand.  

 

Financial Times

Bank of America has engaged 1,000 external consultants to assist its 3,000 internal staff in addressing software vulnerabilities exposed by Anthropic's Mythos. CEO Brian Moynihan said that while the bank incurred "a couple hundred million plus" in costs for software remediation and anti-money laundering compliance in the third quarter, these expenses are expected to decrease over time.  “Once you patch, you don't have to patch as much . . . The pipeline moves through,” Moynihan said. “We put on 1,000 contractors to help us do the patching work in the second quarter, and those people remain here today, helping us, on top of the 3,000 people we have in that area,” he added.

 

CNBC

Optimism among UK business leaders has surged, with 86% confident about growth prospects, according to KPMG's latest CEO outlook survey. This marks an increase from 74% last year, placing the UK third in global optimism, behind only Italy and India. "The direction of travel is interesting," observed Jon Holt, KPMG UK chief executive. "Optimism has gone up in the latest survey, which many people might be surprised by. The bounce that follows a new government, green shoots in the labour market, steady interest rates and AI-driven productivity gains have all given CEOs of the UK's biggest businesses a reason to start feeling optimistic about their plans to grow."

 

The Times