Recent HMRC data reveals a significant shift in income tax contributions, with 5.45m Britons over 70 paying more tax than 5.23m under 30s in the 2022-23 financial year. This change is attributed to the triple lock policy, which has increased pension payments, and a rise in youth worklessness, leaving nearly 1m young people not engaged in employment, education, or training. The report highlights that over 70s contributed £19.1bn in income tax, surpassing the £18.3bn from those under 30. The Institute for Fiscal Studies noted that two-thirds of pensioners now pay income tax, compared to 64.4% of working-age individuals. Commenting on the figures, Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Pensioners were paying a significant chunk of tax. ” However, she warned: “Frozen tax thresholds, coupled with increased state pensions, may pull more pensioners who are solely reliant on state pension into taxpaying territory.”

Unused pension pots will be subject to a 40% inheritance tax from April 2027, the Express reports, prompting many savers to withdraw large sums ahead of schedule. Clients are now facing significant delays in receiving their cash as financial firms are inundated with withdrawal requests. Daniel Hough from RBC Brewin Dolphin said: “It used to take two weeks to withdraw pension money – now it’s taking six, sometimes even longer.” The changes are expected to push 10,500 families into paying inheritance tax. Under the new rules, an additional rate taxpayer in England with a £350,000 pension could see almost 90% of it swallowed up by tax after IHT and income tax deductions. Major firms like Hargreaves Lansdown and AJ Bell are urging a reconsideration of the policy.

The number of individuals deemed too sick to work has surged to 1.8m, an increase of 383% since the onset of the pandemic. The figures refer to the number of people placed in the “limited capability for work-related activity” category of Universal Credit. Liz Kendall, the Work and Pensions Secretary, is set to introduce reforms aimed at reducing the welfare bill by billions. Ms Kendall said: “Millions of people have been locked out of work by a failing welfare system which abandons people when we know there are at least 200,000 people who want to work and are crying out for the right support and a fair chance.” The rise in claims is attributed to various health conditions, including anxiety and depression.

Labour’s commitment to enhancing workers’ rights may be undermined by a significant backlog in employment tribunals, which has surged by 31% compared to last year. Caspar Glyn KC, chair of the Employment Lawyers Association, warned that “if justice for workers takes two years or more to achieve, then the rights for hard-pressed working families become illusory.” Nearly half a million cases are currently pending, with delays causing financial strain on businesses. The Government is reportedly recruiting around 1,000 judges and tribunal members to manage the increasing caseload.

Sir Keir Starmer has announced the abolition of NHS England in an attempt to reduce bureaucracy and restore “democratic control” over the health service. The Prime Minister said: “I can’t in all honesty explain to the British people why they should spend their money on two layers of bureaucracy.” The reforms aim to redirect funds to frontline services and eliminate duplication within the NHS. The Government plans to begin transferring NHS England’s functions back to the Department of Health and Social Care immediately, with Sir Jim Mackey and Dr Penny Dash leading the transition. The change is expected to save at least £500m – around 0.25% of the health budget – and could take two years to implement. The move comes after Sir Keir announced plans to make the “flabby” British state more agile and efficient.

The Daily Mail picks up on news that the Financial Conduct Authority (FCA) has abandoned its controversial diversity quotas for finance firms. The proposals would have required over 40,000 institutions to report staff demographics by race, religion, and sexual orientation, while also allowing self-identified gender to be counted. Critics argued that these measures would impose unnecessary burdens on businesses and promote divisive ideologies. Conservative leader Kemi Badenoch commented: “The FCA has grudgingly withdrawn this regulation. Thank goodness […] This was another example of a quango stepping outside its lane to impose terrible ideas and more burdens on business. What we need is meritocracy.” Caroline Ffiske of Conservatives for Women, added: “Questions do need to be asked of the FCA leadership team as to how these proposals got as far as they did.”

The Food and Drink Federation (FDF) reports a significant decline in British food exports to the EU, which have dropped by over a third since Brexit, with volumes falling to 6.37bn kg in 2024, a 34% decrease from 2019. While products like whisky and chocolate remain popular, the FDF attributes the slump to post-Brexit trading arrangements, stating: “These latest figures show the stark reality for the UK’s 12,500 food and drink businesses who are struggling to deal with the complexity and bureaucracy.” In contrast, EU countries have increased their export volumes, and the UK has seen record food and drink imports, valued at £63.1bn in 2024. The FDF urges the Government to collaborate with the industry to eliminate unnecessary trade barriers with the EU.

The Office for National Statistics has delayed the release of trade data due today after discovering an error dating back to 2023, raising further questions over the quality of its figures.

During his trip to the US, Irish Taoiseach Micheal Martin pointed to the urgent need for a reduction in EU regulations. “There’s a move within the European Union now to simplify regulation. I think the penny has dropped. The message has got home,” he said during a visit to the US Chamber of Commerce.