Profit warnings surge to two-year high as Budget uncertainty and Iran war drive up costs

EY found that UK-listed firms issued 65 profit warnings in the three months to September, up from 59. Policy change and geopolitical uncertainty drove 54 per cent of them, the highest share in more than 25 years of EY's analysis. The Chancellor's potential targets are said to include banks, capital gains tax, and bookmakers. Rachel Reeves had already raised taxes by £75 billion before Burnham sacked her.

Housebuilders have issued 14 warnings this year, more than at the 2008 crash peak.

EY warns the £24bn Budget headroom could become a £7bn black hole if the war continues.

Some 38 per cent of warnings blamed the Iran war, which has sent oil and gas prices surging.