Research indicates a strong commitment among London’s small businesses to pursue growth, with 84% planning new initiatives this Spring, significantly above the national average of 71%. This marks an increase from 69% last year. Joanna Morris, head of insight at Novuna Business Finance, said: “It is positive that so many London enterprises are investing in new projects to drive future growth over the spring and summer months.” The study, part of the Business Barometer tracking research, surveyed 1,315 small business owners, revealing plans to expand into new markets, invest in equipment, and increase headcount despite ongoing geopolitical challenges.

Younger employees in the UK are facing significant job losses as the Government prepares to implement a rise in the minimum wage and higher employment taxes. Data from Employment Hero indicates a 0.4% contraction in overall employment levels in February, with the steepest decline of 1.8% among those aged 16-24. This trend is attributed to companies laying off younger staff in anticipation of increased hiring costs, which will make the average employee on a median wage £900 more expensive to employ. The number of young people not in education, employment, or training has reached an 11-year high of 987,000, highlighting the urgent need for policy intervention. Separate figures from the Recruitment and Employment Confederation for February showed a stabilisation in job openings, which rose by 0.1% over the month to 1.55m, with the largest gains seen in the construction sector.

Lucy Williams, managing partner at JS (Jackson Stephen LLP), highlights in City AM the impact of inheritance tax (IHT) changes on family businesses beyond the farming sector. While farmers have received significant media attention, they represent less than 5% of the UK’s family businesses, which account for 93% of all private-sector enterprises. The upcoming reforms, effective from April 2026, will cap Business Property Relief and Agricultural Property Relief at a combined limit of £1m, exposing many small businesses to a 20% IHT rate. Williams illustrates this with the example of Redbox Limited, a small manufacturing firm that could face a £200,000 IHT bill, jeopardising over 100 jobs. She argues that Labour’s claims that these tax hikes “won’t affect working people” are misleading, as taxing businesses ultimately harms job creation. Williams calls for a raise in the IHT relief threshold to £5m and urges family businesses to advocate for their interests, stating: “If Labour refuses to listen, business owners must make themselves impossible to ignore.”

Recent analysis by the TaxPayers’ Alliance reveals that modest earners in the UK are facing “eye-watering” tax rates originally intended for the wealthy. The higher-rate threshold has dropped significantly, now requiring workers to earn only 37.6% more than the average wage to be taxed at this rate, a figure projected to decrease to 28.3% by 2027-28. The report highlights that the freezing of income tax thresholds since 2021 has led to millions being pushed into higher tax brackets due to inflation. Darwin Friend, head of research at the TaxPayers’ Alliance, said: “Our tax system has gone from being progressive to punishing.” The Office for Budget Responsibility predicts that by 2025-26, 7m people will pay higher-rate tax, significantly more than if thresholds had not been frozen.

The FT reports on the small business owners suffering from a crackdown by HMRC on R&D credits, after a spate of fraudulent claims prompted the tax office to take a hard line.

The UK’s economic inactivity issue is exacerbated by employees contemplating leaving their jobs due to mental health concerns. A survey by PwC and Focaldata revealed that 10% of workers are “considering leaving work for an extended period,” with 25% of those aged 16-24 contemplating quitting. The inactivity rate has risen since the pandemic, peaking at 22.2% last summer, and currently stands at 21.5%, affecting 9.3m people. The Institute for Fiscal Studies reported that over half of the increase in disability benefit claims is linked to mental health issues, with 1.3m claimants. Marco Amitrano, senior partner at PwC UK, said: “Much of the current conversation focuses on how to get people outside the workforce back in; equally important is stemming the flow leaving the workforce in the first place.”

Chancellor Rachel Reeves will summon regulators to Downing Street today to demand they cut the cost of red tape for businesses by a quarter. Ms Reeves said: “We are taking further action to free businesses from the shackles of regulation. By cutting red tape and creating a more effective system, we will boost investment, create jobs and put more money into working people’s pockets.”

The financial services sector is facing criticism as Richard Smith, an independent consultant involved in the Government’s pensions dashboard project, revealed that at least 30m people in the UK remain unaware of their pension status. Speaking at the Pensions and Lifetime Savings Association annual investment conference, Smith expressed his shame over the industry’s failure to inform savers, stating: “We’re all patting ourselves on the back, saying how well we’re doing. Well we’re not doing well.” He highlighted that a recent survey indicated that attempts to check pension details often lead to increased anxiety rather than reassurance. Smith said the upcoming pensions dashboard, which aims to consolidate pension information, could help improve engagement among savers. The Department for Work and Pensions has mandated that all pension schemes must be registered by October 31, 2026.

The head of banking and investments at the National Wealth Fund, Ian Brown, has said UK pension funds need to invest more in the construction of infrastructure projects involved in the energy transition.

Rachel Reeves has been urged to eliminate the tourist tax and stamp duty on share trading to stimulate the economy. BusinessLDN, a lobby group advocating for London as a business hub, called for the Chancellor to focus on “growth-enhancing” policies. This plea follows a report indicating a 0.1% contraction in the economy in January, attributed to £40bn in tax increases from the recent Budget. Muniya Barua, deputy chief executive at BusinessLDN, said: “Reinstating tax-free shopping for international visitors and scrapping stamp duty on share transactions would help kick-start the economy quickly.”

The UK economy shrank unexpectedly in January, with a decline in the manufacturing sector fuelling a 0.1% contraction. Analysts had forecast growth of 0.1%. the Office for National Statistics (ONS) said on Friday that GDP increased by 0.2% over the three months to January, compared with the three months to October. Liz McKeown, director of economic statistics at the ONS, said: “The fall in January was driven by a notable slowdown in manufacturing, with oil and gas extraction and construction also having weak months. However, services continued to grow in January led by a strong month for retail, especially food stores, as people ate and drank at home more.”

City AM reports on the news that MHA is expected to float on the London Stock Exchange’s AIM in the coming weeks. The UK arm of Baker Tilly is aiming to raise up to £125m from the float, which will also provide a boost to the London Stock Exchange, which has struggled with a continuous drop-off in new listings in recent years. “Announcing our intention to float on AIM marks an exciting milestone for MHA and our people – one that we believe will be best suited to the London market,” said MHA group chair Rakesh Shaunak. “An IPO would represent the next stage in our evolution, creating a platform for further expansion while preserving the values and approach that have underpinned our success to date.”

Analysis by Standard Life reveals that single retirees require an additional £250,000 in savings compared to their married counterparts to maintain a similar quality of life. According to the Pensions and Lifetime Savings Association (PLSA), singles need an annual income of £31,300 for a moderate retirement, which includes expenses like groceries and holidays. In contrast, couples need £43,100. Mike Ambery, retirement savings director at the firm, says: “Solo living comes with a financial price tag. But let’s not forget that relationships don’t always last – and the importance of pension planning extends beyond just those who are single today.”