Rachel Reeves has said Brexit made the UK’s economy and productivity “weaker” than initially forecast when the UK voted to leave the European Union.

But the Chancellor expressed determination that “the past doesn’t define our future” as she set out plans to scrap paperwork and red tape for thousands of UK businesses in a bid to boost lacklustre economic growth at the Regional Investment Summit in Birmingham on Tuesday.

The gathering of business leaders and investors came after more gloomy news for the Chancellor as Government borrowing in September hit the highest level for the month in five years.

The data from the Office for National Statistics piles more pressure on Ms Reeves ahead of the November 26 Budget, in which she will have to fill a black hole estimated at around £50 billion by some economists.

Ms Reeves said the autumn statement will detail her “plans based on the world as it is, not necessarily the world as I might like it to be” as global volatility and a hike in defence spending “puts pressure on our economy”.

She said exiting the EU had caused more damage than forecasters had expected at the time, with the expected downgrade of the budget watchdog’s previous assumptions likely to make her task of balancing the books even harder.

The Chancellor told reporters: “The Office for Budget Responsibility do the forecasts for the economy. When we left the European Union, or when we voted to leave, they made an estimate about the impact that would have.

“What they’ve done this summer is go back to all of their forecasts and look at what actually happened compared to what they forecast.

“What that shows – and what they will set out – is that the economy has been weaker and productivity has been weaker than they forecast, despite the fact that they forecast that the economy would be weaker because of leaving the EU…

“I am determined that the past doesn’t define our future and that we do achieve that economic growth and productivity with good jobs in all parts of the country.”

Ms Reeves highlighted more than £10 billion in investment commitments secured at the summit, as well as deregulation and reform to planning and capital markets.

The OBR’s assessment will be published in detail alongside the Budget, in which the Chancellor has already acknowledged she is looking at potential tax rises and spending cuts.

The National Institute of Economic and Social Research has suggested Ms Reeves will need to find around £50 billion a year by 2029-39 to meet her goal of balancing day-to-day spending with tax revenues while maintaining “headroom” of around £10 billion against that target.

Asked about her promise not to deliver another tax-raising statement, Ms Reeves said: “This year has been particularly volatile in terms of world events, from Ukraine to the Middle East, to the higher trade tariffs that countries around the world including the UK face. We’re not immune to that, despite the fact that we’re doing trade deals with the EU, India and with the US.

“Of course, that puts pressure on our economy, as does the increased defence spending to keep us safe in an uncertain world.

“I’ll set out all my plans based on the world as it is, not necessarily the world as I might like it to be, in the Budget on November 26.”

Addressing business leaders at Edgbaston Stadium earlier, the Chancellor detailed measures to reform the company merger process, regulations for drones and reforms for artificial intelligence (AI).

She said a cross-economy AI “sandbox” would allow firms to develop new products “under supervision by regulators”.

This would speed up the approval of AI for use in areas including “legal services, planning assessments and advanced manufacturing”.

The Civil Aviation Authority will set out steps towards launching commercial drone operations which could allow unmanned aerial vehicles to be widely used for tasks from “surveying sites for development to delivering blood supplies for the NHS”.

Panels reviewing company mergers will be reformed to “provide greater certainty on whether transactions will be subject to merger control”.

She also confirmed plans to create simpler corporate reporting rules for more than 100,000 businesses, including removing the need for small business owners to submit lengthy director reports to Companies House.

Tory shadow business secretary Andrew Griffith said it was “laughable to hear Labour talk about scrapping red tape when they have created countless new quangos” and piled “burdens and costs on employers’ shoulders” through business tax hikes.

The company behind weight-loss jab Wegovy and diabetes drug Ozempic will have a boardroom clear-out, with seven board members including the chairman set to depart.

Novo Nordisk on Tuesday said chairman Helge Lund, vice chair Henrik Poulsen and five directors will not stand for re-election at an extraordinary investor meeting in November.

The departures came about after a disagreement between the board and its majority shareholder over its future governance.

It’s the latest in a raft of changes at the Danish company, which welcomed a new chief executive in August and announced it would lay off 9,000 staff in September.

Last month the firm issued a warning on profits due to increased competition from US rivals, and announced a cost-savings programme as it cut its profit growth forecast for the third time this year.

Widespread adoption of Novo Nordisk’s Ozempic diabetes treatment, which is often used off-label as a weight loss drug, and Wegovy had boosted its share price to the point where in summer 2024 it was Europe’s most-valuable company.

Recent competition from rivals like Eli Lilly has eroded that valuation, and shares in Novo Nordisk dipped another 1.7% on the new of a boardroom shake-up.

The departures come after a disagreement between board members from the pharmaceutical company and its majority shareholder, the non-profit Novo Nordisk Foundation, on the extent of changes needed.

The Novo Nordisk Foundation owns 28.1% of the company’s shares, but holds a three-quarter share of the voting rights, which indicates that it holds a lot of sway with how the company is run and who holds senior roles.

Outgoing chair Mr Lund said that the Novo Nordisk board had proposed bringing in several new board members to add new skills, but the Novo Nordisk Foundation “wanted a more extensive reconfiguration”.

The Foundation successfully pushed for the removal of former chief executive Lars Fruergaard Jorgensen in May.

The current chairman of the Novo Nordisk Foundation, Lars Rebien Sorensen, who served as the pharma’s chief executive from 2000 to 2016, is being put forward to replace current chairman Mr Lund, the foundation said.

Mr Sorensen said the pharmaceutical company had been “too slow in recognising fundamental market changes” as the use of its drugs became mainstream and competitors launched rival treatments.

Last Updated:October 21, 2025, 20:21 IST

These reforms highlight EPFO’s attempt to modernise pension services and make retirement planning more secure, transparent and flexible

EPFO has revised pension calculation based on average salary of last 5 years.

In a move that could significantly impact the retirement savings of millions of salaried employees, the Employees’ Provident Fund Organisation (EPFO) has announced five changes to the Employees’ Pension Scheme (EPS). These revisions are intended to simplify pension access, increase benefits, and improve portability for members across the country.

Pension To Be Calculated On Average Salary

The most crucial change concerns the method of pension calculation. Earlier, the pension was determined based on the employee’s last drawn salary. Under the revised rule, it will now be calculated on the average salary of the last 60 months of employment. This ensures a fair and realistic computation, especially for employees whose salary increased gradually over time. Though this provision has been in effect since September 1, 2014, EPFO has now issued a clear clarification for its implementation.

Pension Ceiling Raised To Rs 15,000 Per Month

In a major relief for pensioners, EPFO has doubled the maximum pension limit from Rs 7,500 to Rs 15,000 per month. This step follows a Supreme Court directive and is expected to benefit retirees whose pensions were earlier capped despite higher contributions and earnings. With this revision, eligible pensioners will receive the actual calculated amount without any upper limitation.

Minimum Pension Age Lowered To 50 Years

Responding to the needs of employees seeking financial assistance earlier than retirement, the minimum age for drawing pension has been reduced from 58 to 50 years. Members can now opt for early pension from the age of 50. However, EPFO has clarified that choosing an early pension may lead to a marginal reduction in the monthly payout. The flexibility could prove useful in cases of health issues, employment loss, or personal emergencies.

Faster Pension Claims Through Digital Platforms

In an effort to cut down processing time and enhance transparency, EPFO has strengthened its digital services. Pension claim forms, supporting documents, and approval processes can now be completed online via the EPFO website or mobile app. What earlier took months is now expected to be resolved within weeks. This shift gained momentum during the pandemic, when digital transactions became essential.

Seamless Pension Portability For Job Changers

To facilitate employees who frequently change jobs, EPFO has simplified pension portability. Under the new system, service periods from previous and current employers will be automatically consolidated while calculating pension benefits. This prevents loss of service years and ensures continuity. The unified portal enables smooth transfer of EPS data, benefiting employees in dynamic sectors like startups, IT, and freelancing.

These reforms highlight EPFO’s attempt to modernise pension services and make retirement planning more secure, transparent and flexible. The changes are applicable to EPS members earning up to Rs 15,000 per month. Those earning higher salaries may explore voluntary pension contributions through the EPFO portal. Members are advised to log in to their accounts regularly to review their pension status and contributions.

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