Rachel Reeves has set out the Government’s plan to deliver economic growth, saying that support for a number of infrastructure projects will see Labour go “further and faster” than previous governments. She added that the “consistently set out strategy” has been designed to “grow the supply side of our economy.” The Chancellor confirmed that the Government supports plans for a third runway at Heathrow Airport, saying that doing so could create 100,000 jobs. She also revealed an ambition to build “Europe’s Silicon Valley” between Oxford and Cambridge with initiatives that will add £78bn to the UK economy in the next 10 years. Ms Reeves also said Government guidance on building major projects will be reviewed in order to support investments outside of the South East, meaning “investment in all regions is given a fair hearing by the Treasury.” The Chancellor also confirmed plans to invest in two green energy projects through the National Wealth Fund, with £65m going to electric vehicle charging company Connected Kerb and £28m to be invested in Cornish Metals, which provides the raw materials for solar panels, wind turbines and electric vehicles.

The recent increase in late payment interest rates by HMRC is projected to generate an additional £500m for the tax office in the 2025/2026 financial year. Starting from April 6, 2025, the interest rate will rise to the Bank of England base rate plus four percentage points, potentially reaching 8.75%. Andrew Park, tax investigations partner at Price Bailey, describes this change as a “form of double punishment,” highlighting concerns over the lack of recourse against late payment interest. Critics argue that while some taxpayers may miss deadlines due to negligence, many face genuine financial struggles. An HMRC spokesperson said: “The interest we charge and pay is fair.” Meanwhile, the tax office plans to hire 5,000 more tax inspectors to recover £6.5bn in unpaid taxes.

Darren Jones, the Chief Secretary to the Treasury, has acknowledged that tax rises are impacting larger firms, saying: “It’s a cost for business. That’s absolutely clear.” He explained that while the hike in employer National Insurance aims to protect smaller businesses, it inevitably places a burden on bigger firms with greater cash flow. More than half of businesses will not be affected, he noted, but acknowledged that larger companies are “having to burden some of those extra costs.”

Lord Wolfson, the chief executive of fashion retailer Next, has backed an attempt to change the planned hike in employer’s National Insurance contributions, supporting Baroness Noakes’ proposed amendments to the Bill. Under plans set out in October’s Budget, employer NI contributions will rise from 13.8% to 15%, while the threshold at which employees’ wages are eligible for the tax will fall from £9,500 to £5,000 per year. Lord Wolfson believes that the tax rises will make it “harder and harder for people to enter the workforce,” with this disproportionately hitting entry-level jobs. Baroness Noakes has proposed “a phased introduction of the reductions to the secondary threshold” of the tax.

Sir Keir Starmer has vowed to cut through “thickets of red tape,” saying that “deregulation is essential” as the Government looks to attract investment and accelerate growth. Noting that it “may seem like an unusual goal for Labour politicians,” the Prime Minister said: “If we don’t curb regulator overreach, then we won’t unlock the investment needed for a more prosperous future.”

The Financial Reporting Council has launched a campaign designed to help SMEs access audit services. The campaign will examine how SMEs undertake financial reporting and see open engagement with stakeholders including SMEs and their representatives, their capital providers, auditors who provide services to SMEs and their professional bodies.

Andrew Bailey, the governor of the Bank of England, says that while he is “very supportive” of the Government’s efforts to stimulate economic growth, “very big decisions” are necessary to manage Britain’s escalating public debt. Addressing the Commons Treasury Select Committee, he identified climate change and an ageing population among significant challenges to public finances, describing them as “very big structural headwinds.” Mr Bailey also raised concerns about proposed changes to mortgage lending rules, suggesting they could lead to increased home repossessions. Furthermore, he discussed plans to reduce the Bank’s reserves, saying lenders want to hold £400bn to £500bn with the Bank as it reduces the size of its balance sheet.

In 2024, a record 202 CEOs departed from their positions, according to Russell Reynolds Associates, marking a 13% increase from the previous year and surpassing the six-year average of 186. The technology sector was particularly affected, with 40 CEOs leaving. Activist investors played a significant role, ousting 27 CEOs, nearly three times the number in 2020. Additionally, almost a quarter of the departures were due to planned succession processes, indicating a shift towards grooming internal talent. Margot McShane, co-lead of Russell Reynolds’ global board and CEO practice, said: “It is only getting harder to be a CEO, where you’re navigating uncharted territory.”

Chancellor Rachel Reeves has announced that she will publish a tax return, just hours after saying she was not planning to. Officials have also announced that Prime Minister Sir Keir Starmer will make his tax return public. Sir Keir published tax figures last year, with it shown that he paid £99,431 in tax after making £275,000 in capital gains. The data also revealed that he paid £44,308 in income tax in 2022/23.