Next week will see £36bn in tax increases, with a hike in National Insurance, a freeze on income tax thresholds and a rise in stamp duty all coming into force. Shadow Business Secretary Andrew Griffith said: “There’s no amount of preparation to help anyone be ready for the £36bn tidal wave of tax and similar increases breaking over the heads of businesses and households,” while shadow Chancellor Mel Stride said “reckless tax rises are a ticking timebomb” and accused Labour of breaking a promise to not raise taxes for working people. The tax changes will see employer National Insurance increase from 13.8% to 15% while the threshold falls from £9,100 per year to £5,000. The £36bn will also include increases to the windfall tax and a higher interest rate on overdue tax bills. Darwin Friend, head of research at the TaxPayers’ Alliance, said the tax rises “will place a significant burden on hard-working families and businesses,” and Anna Leach, chief economist at the Institute of Directors, has warned that the “overall rise in the tax burden transfers resources out of the productive private sector into the poorly performing public sector.”

Rachel Reeves has been warned that high streets may ‘start to die off’ without reforming the ‘archaic’ business rates system. As the Chancellor prepares for her mini-Budget, leaders from the Co-op Group and Kingfisher have urged against increasing the property levy. Retailers face a £7bn increase in costs, with Co-op CEO Shirine Khoury-Haq highlighting the threat to small businesses and local communities. She said: “There is a real danger that we do see our high streets starting to die off, and we can’t let that happen.” She added: “It’s not just retail that suffers, it’s jobs, it’s local services, it’s community well-being and, so importantly, it’s the future of our young people.” Kingfisher’s Thierry Garnier echoed the need for reform. He also expressed concerns over potential government tax cuts for US tech giants, stating: “We need government support as well to employ more people in this country.” His comments follow reports that the Digital Services Tax, which impacts companies like Amazon and Meta, may be repealed to avoid trade tariffs.

Research from Grant Thornton shows that 71% of SMEs plan to pass rising employment costs onto consumers, with this a 15% increase from a poll in December. With employers’ National Insurance contributions and minimum wages increasing, around seven in ten businesses plan to reduce or freeze hiring in the next six months. Despite concerns over rising costs, 85% of SMEs are optimistic about their revenue growth over the next six months.

Financial Conduct Authority (FCA) chief executive Nikhil Rathi has warned MPs that the Government’s call for the City watchdog to help boost economic growth would mean trade-offs that could see an increase in mortgage defaults, insider trading cases, money laundering and bad investment advice. He told the Treasury Select Committee that “one or two things may go wrong,” and “not everything is going to work out.” FCA chairman Ashley Alder also suggested that deregulation may mean trade-offs in many areas.

The Fair Work Agency (FWA) is set to gain significant enforcement powers under the Employment Rights Bill, allowing officers to enter homes and seize documents during investigations. This has raised concerns among businesses, with Craig Beaumont from the Federation of Small Businesses saying: “Firms want help to grow, not Captain Clipboard walking into their business premises and homes.” The bill, which is currently under scrutiny in the House of Lords, will enable the FWA to compel interviews and conduct searches, mirroring powers typically reserved for police. Critics, including Alex Hall-Chen from the Institute of Directors, have expressed alarm over the “unprecedented powers” granted to the FWA, urging clarity on its intended use. The legislation also introduces various worker protections, including a ban on zero-hour contracts and enhanced rights for flexible working.

Retail sales fell “markedly” in the year to March, with the Confederation of British Industry’s (CBI) monthly gauge of retail sales falling to -41 from -23 in February. This marks the lowest reading since July last year on a survey which measures the proportion of retailers who have reported an increase, or a decrease, in sales. Martin Sartorius, principal economist at the CBI, said global trade tensions and the impact of October’s Budget “are weighing on consumer and business confidence, which is leading to reduced demand.”

John Allan, the former chairman of Tesco, has proposed that young unemployed individuals, known as Neets, should be compelled to join National Service or risk losing their benefits. Speaking on Times Radio, he said: “You could make some benefit payments conditional… on people really seeking work.” Allan emphasised the importance of instilling a work ethic in young people, suggesting that military training or municipal work could be beneficial. He also highlighted the need for “urgent, accelerated training programmes” to address the worker shortage in the construction sector, as the Government aims to build 1.5m homes.

Maria Ward-Brennan of City AM reflects on the performance of the Big Four’s legal arms, saying that while they are looking to compete against the traditional legal sector, “recent cracks show that their vision is not playing out.” She highlights that, between them, EY, PwC, Deloitte, and KPMG generated $1.5bn in revenues from their legal segments in 2023, but says “cracks have started to show.” This comes with EY announcing job cuts at EY Law and data showing that between 2019 and 2024, the Big Four lost more partners to rival law firms than they hired – but flags KPMG as the outlier for its stronger performance. Ms Ward-Brennan says conflicts with their audit businesses present a challenge for firms, noting that Financial Reporting Council rules prevent the law unit working for clients who use the same firm’s audit business.

Chancellor Rachel Reeves is set to announce a £2.2bn increase in defence spending during her Spring Statement, emphasising the need for the UK to “move quickly in a changing world” amid global uncertainties. While ruling out tax rises, Ms Reeves will detail significant welfare cuts, totalling £5bn, marking the largest reduction in a decade. Meanwhile, the Office for Budget Responsibility is expected to lower its growth forecasts, halving a previous projection that the economy would increase by 2% in 2025.

Women in England and Wales have experienced a higher rate of financial insolvency than men for over a decade, with the rate reaching 26.5 per 10,000 adults in 2024, compared to 22.1 for men, according to the Insolvency Service. This trend has persisted for 11 consecutive years, with women more likely to have debt relief orders or individual voluntary arrangements, while men are more prone to bankruptcy. Simon Trevethick, head of communications at StepChange, noted that “women have a higher average expenditure and a lower average income than men,” which complicates their financial situations.