Dr Stephen Bence, chief executive of law firm Vardags, has voiced concern over Chancellor Rachel Reeves’ changes to tax policy, warning that they could hinder economic growth. He argues that changes to non-dom rules “make it deeply unattractive for these internationally mobile people to remain in the UK.” High and ultra-high net worth individuals, he says, “have been voting with their feet” and leaving the country at a far higher rate since the shift was announced. Dr Bence also says “utterly naïve” changes to employer National Insurance contributions are “about as anti-growth as one can get,” arguing that raising the cost of employing people has “already tipped some businesses over the edge.” He also criticises “short-sighted” changes to inheritance tax which mean family businesses are no longer exempt. He notes that IHT is now payable on any value above £1m, “albeit at half the normal rate.”

Chris Hayward, policy chairman of the City of London Corporation, has warned that the UK has become “allergic to risk.” He noted that while the City’s global benchmarking report ranks the UK as the world’s leading international finance centre, “there are worrying signs,” with the UK having declined on criteria such as tax, regulation and skills.” Calling for a “new spirit of responsible risk-taking,” Mr Hayward said: “We must up our game.” He also suggests that regulation “must be proportionate” and differentiate, where possible, “between the approach applied to wholesale and retail markets.”

Nearly all UK chief executives expect to see M&A activity this year, with a poll by EY showing that 99% expect to actively pursue transactions. The poll of 100 CEOs saw 62% say they will look at buying another business, with this up from 40% in September. The same proportion said they will look at joint ventures or strategic alliances. Silvia Rindone, UK&I managing partner for strategy and transactions at EY, said M&A activity is “set to rebound in 2025,” with this “driven by strategic imperatives, digital innovation, and a more favourable regulatory climate.”

ICAEW chief executive Alan Vallance says work to verify companies’ ESG claims should not count towards the cap on non-audit fees that accounting firms are allowed to receive from their audit clients.

Bim Afolami, the former Economic Secretary to the Treasury, has been appointed to the board of the Quoted Companies Alliance (QCA), which supports over 1,000 UK small and mid-sized publicly traded businesses. Mr Afolami, chaired cross-party groups and co-founded the Regulatory Reform Group. His experience is expected to enhance the QCA’s mission to promote competitive regulatory practices.

A group of Labour MPs are pushing for Angela Rayner to adopt a four-day working week in her employment rights bill. They argue that the bill does not go far enough as it only allows workers to compress their hours rather than reducing them altogether. While compressed hours may see an employee complete the same number of hours over fewer days, the 4 Day Week Foundation says moving from a 40-hour week to 32 hours per week will improve work-life balances and maintain productivity. Deputy Prime Minister Ms Rayner has previously said a four-day week is “no threat to the economy.”

The UK economy is projected to grow by 1.5% this year, boosted by increased public spending, according to the National Institute of Economic and Social Research (NIESR). However, the think-tank warns that President Donald Trump’s proposed tariffs could hinder this growth, potentially reducing it to 1.3%. The NIESR also noted that rising inflation from these tariffs could restrict global economic growth to 3.2% this year.

Megan Greene, an external member of the Bank of England’s Monetary Policy Committee, has backed a “cautious” approach to cutting interest rates, despite concerns that recent news around the economy has been “uncomfortable.” Ms Greene told the Institute of Directors that while the process of inflation coming down is “broadly on track,” she supports a “cautious and gradual” approach to rate cuts as the Bank looks to bring inflation down to its 2% target.

Archaeologists have made a significant discovery beneath an office block in London, unearthing a substantial section of the city’s first basilica, a 2,000-year-old public building pivotal for political and economic decisions. Sophie Jackson from the Museum of London Archaeology stated: “This is so significant – this is the heart of Roman London,” highlighting the importance of the find. The basilica, built around 80 AD, was part of a larger forum that served as a social and commercial hub. The discovery has prompted changes in redevelopment plans by Hertshten Properties, who aim to incorporate the Roman remains into the new offices.