Inheritance tax (IHT) receipts are projected to reach a record high by the end of the tax year, with figures showing a rise to £7bn between April 2024 and January 2025. This marked an increase of £700m from the previous year. Analysis suggests that the total is on track to surpass the £7.5bn record set in 2023/24. It is noted that the Government plans to include pensions in IHT calculations from 2027, with this expected to further increase tax receipts. Shaun Moore, a tax and financial planning expert at Quilter, said a “relentless rise” in IHT receipts is “baked into Government policy,” with frozen thresholds meaning “more and more families are being dragged into paying the tax,” Meanwhile, data shows that capital gains tax receipts have declined by 3% to £10.28bn in the first nine months of the tax year. Despite the slowdown, CGT takings have risen by 271% over the past decade, reaching £14.49bn in 2023/2024, compared to £3.91bn ten years ago. Income tax receipts surged to £49.15bn in the first three quarters of the 2024/25 financial year, with this driven by fiscal drag as frozen thresholds push more taxpayers into higher bands.

The Government has been warned that changes to IHT set out in the Budget could hurt the economy. Reform coming into force in April will impose a 20% IHT charge on farms. Rain Newton-Smith, chief executive of the Confederation of British Industry, says this could threaten the livelihoods of farmers and the UK’s domestic food supply. She went on to warn that the tax adjustments could “undermine growth and destabilise the economy.” Tom Bradshaw, president of the National Farmers’ Union, has proposed an alternative proposal that would only see IHT applied to farm assets if they are sold within seven years of death.

A survey by Purbeck Insurance Services suggests young business owners are leading the charge for securing finance in 2025, with 76% of those aged 25-34 planning to obtain funding, primarily for new technology and equipment. Despite a tough economic environment, more than 70% of small businesses are seeking finance, up from 30% in 2024. The demand is highest in the North East, Scotland, and Wales. Many younger business owners are also willing to personally guarantee loans, reflecting optimism and a willingness to take calculated risks for growth.

The Arbitration Act, which aims to enhance the UK’s position in modern dispute resolution and attract international business, has received Royal Assent. The legislation follows recommendations from the Law Commission and is expected to clarify legal uncertainties, empower arbitrators, and streamline court processes. Courts and Legal Services minister Sarah Sackman KC has highlighted the Act’s potential to simplify arbitration procedures, reduce costs, and protect arbitrators from unwarranted lawsuits, adding that it “consolidates our place as the jurisdiction of choice for resolving disputes without going to court.” Cristen Bauer from the Chartered Institute of Arbitrators says that the law will bolster London’s status as a leading arbitration hub. The Ministry of Justice noted that arbitration saves firms significant legal expenses. Data shows that over 5,000 arbitrations occurring annually in England and Wales, contributing approximately £2.5bn to the economy through fees alone.

Analysis by HSBC suggests that international earnings at the world’s fastest-growing companies are set to eclipse domestic revenue within the next five years. While a poll of 1,143 senior decision makers at companies with a revenue of between $18m and $5bn found that overseas revenue currently represents less than half of their income, this is expected to change by 2030. The report identified issues key to delivering international growth, including having the right network, capable local teams, favourable macroeconomic conditions and in-depth market knowledge. It also flagged the biggest challenges, pointing to areas such as regulatory and compliance issues and increased competition.

According to the latest FTSE Women Leaders Review, women now hold 43.4% of board positions at FTSE 350 companies, a rise from 42.1% in 2023. The report, sponsored by Lloyds Banking Group and KPMG, shows that women occupied 1,275 board roles and 6,743 leadership positions last year. Despite this progress, the number of female chief executives in the FTSE 350 has fallen to 19 from 20 in 2023. The UK ranks second in the G7 for female board representation, trailing France, which has implemented quotas to achieve 45.4% female representation. Lady Gustafsson, the Minister for Investment, said that the report “shows that while the momentum is with us, we have so much further to go.” Chancellor Rachel Reeves commented: “The UK is leading the charge for gender equality in boardrooms, but we cannot rest on our laurels.” She added: “We must break down the barriers that stop many women being represented in decision-making roles, so that top talent reaches the highest levels of leadership in businesses driving economic growth across Britain.” Vivienne Artz, chief executive of the FTSE Women Leaders Review, said that although FTSE 350 company boards are now gender-balanced, “sustained effort and determination” is required to achieve the 40% target for women in leadership by the end of this year.

Bankers at Barclays, HSBC, Lloyds Banking Group, NatWest and Standard Chartered saw bonuses jump 5% in 2024, taking home a combined £7.1bn in bonus cash and shares. This comes after UK regulators decided to scrap the EU’s cap on bonuses. Luke Hildyard, director of the High Pay Centre think-tank, said the increase in bankers’ bonuses was “inevitable” once the cap was removed. He added: “This will strengthen the argument that addressing the extreme top incomes of bankers, chief executives and other high earners and distributing the UK’s wealth more evenly is crucial to revitalising our economy.”

The net zero sector is growing three times faster than the overall UK economy, according to Confederation of British Industry (CBI) analysis. The study shows that the net zero economy grew by 10% in 2024 and generated £83bn in gross value added – meaning net zero businesses account for 1.1% of the UK’s total GVA. It was also shown that 22,000 net zero businesses employ almost a million people in full-time jobs, while the average annual wage of £43,000 in these businesses is £5,600 higher than the national average. Louise Hellem, the CBI’s chief economist, said: “We are approaching critical points of no return for energy security and emissions reduction. It’s really fantastic to see the growing strength of the net zero economy in the UK and we need to really continue to see that ambition.” Energy Secretary Ed Miliband said that net zero is “ essential to growth, a strong economy and money in working people’s pockets.”