The Labour Government’s proposed reforms to inheritance tax have ignited significant backlash from farmers and business owners, with William Lees-Jones, managing director of JW Lees, stating that the Prime Minister is “losing the argument and feeling rattled.” He likened the current situation to Margaret Thatcher’s Poll Tax, which contributed to her downfall. Lees-Jones expressed concerns that the reforms pose an “existential threat” to family businesses, warning that his family may not be able to manage the tax burden upon his death. Elsewhere, British hotel tycoon Steve Perez, who owns a string of upmarket restaurants and hotels in the East Midlands, as well as the drinks company Global Brands, said he is taking out a £6m insurance policy so is business doesn’t have to be sold in the event of his death. He said: “That’s the first quote I’ve had, but I’m probably going to have to increase that to at least £10m. I’ve got no incentive to grow the business now. In fact, it’s a disincentive to grow the business because it’s going to cost me more.”

The adult social care sector is facing a significant financial crisis due to the planned increase in employers’ National Insurance contributions, which will rise to 15% and lower the earnings threshold. Mark Lloyd, managing director of RMBI Care, stated that “providers are being pushed over the edge” by this tax hike. The Nuffield Trust estimates a £900m impact on the sector, prompting over 50 MPs to urge Chancellor Rachel Reeves to reconsider her plans. They support a proposal from Box Power to exempt the care sector from these changes and explore alternative funding methods. Stephen Trowbridge of First City Nursing described the tax rise as a “direct attack on social care,” while Robert Kilgour warned of potential care home closures and the risk to vulnerable elderly lives.

Rachel Reeves would have to raise taxes by an additional £12bn to increase defence spending to 2.5% of GDP and avoid further cuts to services. Ben Zaranko from the Institute for Fiscal Studies stated that “additional tax rises were the most likely path” for the Chancellor, who is already facing pressure from unions regarding public sector pay. Emily Fry from the Resolution Foundation commented: “Funding this aspiration is far from straightforward, especially as the public finances are already under strain.” The situation is compounded by reports of steep job losses as businesses prepare for the impact of the Chancellor’s tax increases.

The interest rate on late payments for taxpayers with outstanding tax debts to HMRC has fallen from 7.25% to 7%, affecting approximately 1.1m taxpayers who missed the self-assessment deadline. The reduction follows the Bank of England’s base rate cut from 4.75% to 4.5%. Andy Wood, a tax expert, remarked that while the cut is beneficial, “the real issue is that taxpayers still pay double the interest on late payments compared to what HMRC pays them in refunds.” Currently, HMRC pays 3.5% interest on tax refunds.

Small businesses in the North are set to face significant challenges due to changes in business rates this spring. Chancellor Rachel Reeves announced a reduction in rates relief from 75% to 40%, resulting in an additional £140m burden for retail, hospitality, and leisure firms. Andrew Goodacre, chief executive of the British Independent Retailers Association, said: “Many more businesses based in the North will have received full relief compared to those in the South, and will therefore feel more of the pain from this 140% increase in the rates bill.” The impact is expected to be severe, with many smaller firms potentially closing, and even larger ‘anchor’ retailers reconsidering their presence in the North. The Government claims that an overhaul of business rates will eventually lead to a “permanent tax cut” for properties valued below £500,000.

Eliot Wilson writes in City AM on the Financial Conduct Authority’s (FCA) decision to delete emails older than 12 months, suggesting it prioritises reputation management over regulatory standards. The FCA’s role is to ensure fairness and transparency in the financial markets, yet this email deletion strategy raises concerns about accountability. Charlotte Hill from Charles Russell Speechlys said the FCA could claim it had no record of a regulatory issue being raised, undermining its transparency. Wilson asserts that the FCA is operating with double standards, as it imposes strict data retention rules on the industries it regulates while adopting a more lenient approach for itself. “Its explanation that it will be able to retrieve information more efficiently rings false; the idea that it reduces the FCA’s legal and reputational risk sounds far more plausible, and far more disreputable.”

The UK’s Supreme Court has denied the Treasury’s request to intervene in a review of a significant ruling related to the motor finance scandal, marking a setback for several lenders. The Treasury’s application had raised hopes that the car loan industry could avoid paying out tens of billions in compensation, leading to a temporary rise in share prices for some lenders. However, following the court’s decision, shares in Close Brothers and Lloyds Banking Group fell. The Court of Appeal’s previous ruling deemed undisclosed commissions unlawful, prompting appeals from Close Brothers and FirstRand. The Treasury expressed its desire for a “fair and proportionate judgment” to ensure consumer compensation aligns with losses. Meanwhile, the Financial Conduct Authority’s application to intervene was granted, with a spokeswoman saying: “We look forward to assisting the court.”

Support for shareholder resolutions addressing environmental and social risks has reached a record low, according to ShareAction’s Voting Matters report. Only 1.4% of the 279 ESG resolutions proposed in the UK, Europe, and the US received majority backing last year, a significant drop from 21% in 2021. Claudia Gray, head of financial sector research at ShareAction, said: “This is the worst result we’ve seen from asset managers in the six years we’ve been monitoring their voting performance.” The report highlights a stark contrast between asset managers in the UK and Europe, who supported 81% of proposals, and their US counterparts, who backed just 25%. The world’s four largest asset managers collectively supported only 7% of resolutions, raising concerns about their commitment to tackling climate change and social issues.

Barclays and NatWest have decided to remove climate targets from their annual bonus schemes for senior executives, reflecting a broader trend in the business sector. Instead, they will incorporate sustainability metrics into long-term share-based incentive plans, which will be assessed over a three-year period. NatWest’s chief executive, Paul Thwaite, could earn up to £3.5m this year, with sustainability metrics now holding a 15% weighting in the new performance share plan. Barclays has also shifted its sustainability measures to its long-term incentive plan, stating that “progress towards these [sustainability] targets is expected to be volatile and … is best assessed over a multi-year period.” This move follows a similar trend among major US lenders and other corporations, as they reassess their approach to climate and diversity initiatives.

More than half of Britons are feeling increasingly pessimistic about the economy, largely due to the Chancellor’s tax increases and cuts to winter fuel payments for pensioners. According to a survey by Ipsos, only 29% of Labour voters believe the party has improved the economy, while 26% are undecided. Overall, 52% of Britons are more pessimistic. Gideon Skinner from Ipsos said: “The public remain unconvinced about the overall direction of the economy under Rachel Reeves’s stewardship.” The survey results indicate that many anticipate rising unemployment, with older voters particularly disillusioned.

Gold prices have surged by 10% in 2025, reaching $2,900 (£2,300), prompting UBS to upgrade its target price for the precious metal. Analyst Joni Teves noted that gold is experiencing “unprecedented market dislocations” and is expected to continue rising due to “deep-rooted bullish sentiment.” Teves also mentioned that uncertainties regarding tariffs and global conflicts are likely to benefit gold’s appeal. UBS forecasts that gold will climb to $3,200 later this year before settling above $3,000 by the end of 2025. Alec Cutler from Orbis Investments pointed out that despite gold’s rising prices, Western investors have been slow to engage, with central banks and Asian investors driving the current rally.

The Competition and Markets Authority has revealed that JP Morgan’s Chase has surpassed Monzo as Britain’s preferred bank, according to a survey of 23,000 customers conducted by Ipsos. Chase, which entered the survey six months ago, received an 81% recommendation rate, slightly ahead of Monzo’s 80%. Starling Bank ranked third in overall service quality, while Royal Bank of Scotland remained at the bottom with only 46% of customers likely to recommend its services. Monzo excelled in online and mobile banking services, and Nationwide Building Society was noted for its branch services.