This week’s briefing keeps a close eye on the UK economy, starting with the delayed Autumn Budget and its wider implications. We then turn to a booming corner of venture capital where deals surged by more than 450%, followed by a new UK-Saudi investment that could pave the way for future capital flows, and finally, a look at bond markets as rates climb across developed nations.
Read on for the full breakdown.
The Autumn Budget will now land on 26 November, later than many expected. The official explanation is that the Office for Budget Responsibility requires a full ten weeks to complete its forecasts, meaning the Chancellor cannot set out her plans any earlier.
Delaying the statement does little to improve the picture. The Government is already facing annual debt interest payments of around £105 billion, and gilt yields have been creeping higher in recent weeks. Historically, September and October are volatile months for markets, so pushing the announcement further out certainly risks adding pressure at exactly the wrong time.
Analysts warn that what was seen as a £40 billion hole in the public finances could be closer to £50+ billion by November. Any attempt to balance the books is therefore likely to involve sharper tax rises or deeper spending cuts than would have been needed had the Budget gone ahead earlier.
In the meantime, speculation over tax changes is weighing on confidence. Business owners cannot plan effectively when the VAT threshold is uncertain, savers are left guessing about potential levies on investment income, and property activity has slowed amid fears of additional tax being applied to main residences as well as BTL.
An alternative would have been to bring the Budget forward, potentially sending a signal to markets that the Government was prepared to make urgent decisions quickly. Additionally, keeping the date fixed may have reduced worry and speculation - something many may appreciate. Instead, the delay simply risks increasing uncertainty.
Cybersecurity investment has risen above all in Q2 2025, with deal value topping $4 billion across 163 transactions—the strongest quarter since mid-2022. Growth was led by late-stage VC and venture-growth rounds, highlighting how capital is flowing toward mature, scalable platforms.
PitchBook analysis showed that segment performance varied sharply. Data security deals jumped nearly 420% quarter-on-quarter, reaching $1.6 billion, driven by AI innovation and tightening global privacy rules. Network security also surged—up more than 250%—as acquisitions built out AI and hybrid-cloud defences. Application security nearly doubled to $936 million, reflecting growing concern over AI-fuelled software vulnerabilities. In contrast, identity & access management collapsed 94% to just $47.6 million, its weakest quarter since 2018, and endpoint security fell 55% to $363 million as buyers avoided complex deployments.
Exit routes underscored the same story: M&A dominated, with IPOs still subdued. Acquisitions accounted for 72.6% of total exit value in the first half of the year, while IPOs contributed only $94 million. The standout deal was Cyera’s $540 million Series E at a $6 billion valuation, reflecting how AI-native data security is commanding serious premium prices.
Valuations are also climbing. The median VC deal size in the sector rose to $8.5 million in the first half of 2025, up from $5.2 million last year - the sharpest year-on-year increase since 2014. Venture-growth valuations led the way, with median pre-money values of $1.9 billion. Investors are paying for category leaders that can scale fast.
The underlying trend is clear: a lot of capital is seemingly concentrating in fewer, larger bets. As one analyst put it, “Q2 underscored a decisive shift in cybersecurity investing toward segments with scalable platforms, rapid deployment potential, and clear AI-driven differentiation.”
On 3 September, the UK and Saudi Arabia announced £360 million of joint investments at the Great Futures Summit in London, a deal expected to create 187 jobs across both countries. It’s part of a wider effort to deepen economic ties while a UK-Gulf Cooperation Council trade deal remains under negotiation.
The announcement included major commitments: Saudi manufacturing group Alfanar will invest £150 million in the UK, establishing a new London headquarters to anchor its transport decarbonisation business. A $200 million venture fund is also being launched by Lexham Partners and Arab National Bank’s investment arm, while Saudi International Investment Gate will set up its European HQ in London.
UK Business Secretary Jonathan Reynolds framed the announcement as evidence of Britain’s industrial strategy working in practice, offering investors the long-term certainty they need. His Saudi counterpart, Majid Al-Kassabi, echoed that sentiment, pointing to how Vision 2030 aligns with Britain’s economic priorities.
The Great Futures campaign, launched in Riyadh in May 2024, has already delivered tangible results: £3.7 billion worth of deals and 4,100 new UK jobs. This new wave of investment suggests momentum is building, particularly in clean energy, finance, and technology.
For Britain, a full trade deal with the GCC could increase bilateral trade by 16% and add £1.6 billion to GDP. As Reynolds put it: “Our modern industrial strategy is giving investors the confidence they need to plan not just for the next year but for the next ten years and beyond – helping to create economic change as part of our Plan for Change.”
Global bond markets staged a rally this week after disappointing US labour data sparked speculation of faster rate cuts from the Federal Reserve. The latest JOLTS report showed job openings slipping to 7.18 million in July, down from 7.44 million the month before and below the 7.38 million expected by economists.
The figures have shifted market sentiment quickly. Yields on 30-year US Treasuries fell to 4.90%, while UK gilts dropped back from post-1998 highs of 5.75% to 5.60%. Investors took the data as confirmation that the US labour market is softening, feeding expectations of five quarter-point Fed cuts by September 2026.
Japan’s 30-year yield hit a record before easing, and equities ticked up, with the Nasdaq rising 0.8% and Google shares leaping more than 9% after avoiding major antitrust penalties. Yet bond traders remain focused on the big picture: whether the Fed will ease policy enough to offset Trump’s tariff policies and slowing global growth.
Supply pressures are also part of the story. The UK issued a record £14 billion in 10-year gilts this week, while governments in Europe and the US ramped up debt sales after the summer lull. That has contributed to rising yields in recent weeks, even as central banks step back from buying long-term debt.
Bank of England governor Andrew Bailey told MPs: “You have seen a steepening of yield curves across the whole developed world, really. The underlying driver of this is global.” His message was clear: while bond markets are under strain, the UK is not alone, and the forces at play are much bigger than domestic policy.
This week’s briefing once again highlights the strain economies are under – not just in the UK, but globally – with weakening jobs markets and rising debt levels. The fact that both borrowing costs and bond yields are climbing at the same time only adds further pressure on government budgets. In moments like these, decisive government action is crucial. Yet with Labour’s Budget delayed until late November, confidence is unlikely to receive the boost it needs.
On a brighter note, cross-border investment continues to move forward, with fresh commitments this week involving Saudi Arabia. However large or small, these kinds of deals often create indirect benefits too, sparking future partnerships and encouraging more capital to flow in the years ahead.
With speculation mounting in the run-up to the Budget, we’re pulling together a focused piece that brings all the moving parts into one place. The aim is simple: to prepare you as investors, whether that means highlighting new opportunities or raising awareness of areas where taxation could rise.
Keep an eye out for this analysis ahead of next week’s briefing.