British companies and business groups have expressed concern over President Donald Trump’s 10% tariff on UK goods entering the US, with Confederation of British Industry chief executive Rain Newton-Smith saying the plans are “deeply troubling for businesses.” The Federation of Small Businesses (FSB) said the tariffs were “a major blow” to SMEs, with 59% of small UK exporters selling to the US. The FSB’s policy chair, Tina McKenzie, said the charges “will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat,” adding that “the fallout will stifle growth.” Meanwhile, industry body Make UK said the 25% tariffs on cars, steel and aluminium would be devastating for UK manufacturing. The Society of Motor Manufacturers and Traders said the taxes were a “deeply disappointing and potentially damaging measure.”

S&P Global’s latest composite PMI, which takes an average of manufacturing and services output for the month, came in at 51.5 for March. This fell short of analyst expectations, with a poll by Bloomberg suggesting that the PMI would hit 52. March’s reading also came in lower than the long-running average of 53.6. The services PMI hit 52.2 in March, on a scale where a reading above 50 points to growth. Despite this being the fastest acceleration in service sector growth in seven months, Tim Moore, economics director at S&P Global Market Intelligence, said the hospitality and manufacturing sector are suffering from “weak business conditions.” He noted that service providers flagged a “range of constraints on growth, including stretched household budgets, risk aversion among corporate clients and rising geopolitical uncertainty.”

A poll of 1,000 British retail investors by Etoro shows that confidence in the UK market has hit a record high, with a third backing the UK as the top performing stock market over the next five years. This compares to the previous record of 24%. With savers moving away from US stocks, European stocks have also seen an increase in popularity, having been included in 34% of portfolios, compared to 29% last month. Just 36% of investors expect the US to outperform other markets this year, down from 41% in the previous quarter.

The UK is the fourth most favoured investing location for domestic retail investors, according to a poll of investors by wealth manager Charles Schwab. Only last year, the UK had shared top spot with the US. The poll saw 63% of investors say the UK is a good market to invest in, compared to 66% last year. Six in 10 of all investors said they are less inclined to invest in the UK market due to changes made to capital gains tax in October’s Budget which saw the lower rate for basic rate taxpayers increase from 10% to 18% and the higher rate rise from 20% to 24%.

The UK economy has managed to avoid “a direct blow” from US President Donald Trump’s tariff regime, although economists warn of a “significant” impact. Mr Trump imposed a 10% tariff on UK goods, while UK car manufacturers face a 25% tariff on foreign cars imported to the US, potentially jeopardising 25,000 jobs. Barret Kupelian, chief economist at PwC, said: “The UK avoided a direct blow – but the global economy has taken a substantial hit.” He added: “For the UK, the impact is significant – though less severe than for some other countries.” Thomas Pugh, an economist at RSM UK, said: “The direct impact on the UK is likely to be in the 0.2% to 0.5% of GDP range over the next few years,” adding: “Given we expect growth of 1% this year and 1.5% next year, it implies another year of stagnation at best.”

HMRC collected £251m in late penalties from self-assessment taxpayers between 2021 and 2023, according to data obtained through a Freedom of Information request by NFU Mutual. The analysis reveals that £157m was paid in the tax year ending April 2022, while £94m was handed over in the following year. The number of taxpayers failing to meet deadlines is expected to rise, particularly as more individuals with incomes exceeding £150,000 are required to file returns. Over a million taxpayers missed the latest self-assessment deadline on January 31, nearly double the previous year’s figure. Additionally, late payment interest will increase to 8.5% from April 6, with this the highest level since January 2008. Charlene Young, senior pensions and savings expert at AJ Bell, notes that while the interest penalty will stand at 8.5%, “HMRC will continue to only pay base rate minus 1% on repayments owed to taxpayers, equivalent to 3.5%.”

President Donald Trump’s recent announcement of 10% tariffs on UK exports is expected to exacerbate the financial challenges faced by British businesses and could lead to higher taxes. Simon Gleeson, head of Blick Rothenberg’s US corporate desk, said the tariffs mark “a new gust of headwinds adding to the perfect storm for UK businesses.” He added that Mr Trump’s announcement has delivered “a new shockwave for the UK’s economic outlook that continues to be impacted by changes in employers’ National Insurance contributions, business rates and the rising exodus of non-doms.”

According to the Bank of England’s Decision Maker Panel, British businesses’ expectations for wages and employment remained stable in March. Companies anticipate modest employment growth of just 0.1% over the next year, unchanged from previous months and significantly lower than the 1% forecasted last October. Additionally, businesses expect wage growth to be 3.9% in the coming year, consistent with earlier predictions.

A poll by the Pensions Insurance Corporation (PIC) shows that the majority of pension scheme members are unsure over Government plans that would allow firms to use money from defined benefit (DB) schemes for investment. Seven in ten respondents say they oppose what the PIC has described as ‘extraction’, while 94% said it was important that politicians did not tamper with pension pots. PIC chief executive Tracy Blackwell said that it “took a long time to build up a legal regime for DB pensions that puts members first,” and they are now “clearly concerned at the prospect of these vital protections being watered down.”

Hong Kong investors have transitioned from being net buyers to net sellers in London’s commercial real estate market, with over £2bn worth of properties listed for sale in 2024. This shift, driven by geopolitical changes and rising financial pressures, marks a significant change from the peak investment years of 2017-2018, when they accounted for over one-third of investment volume in Central London. Ed Bradley, head of Central London Investment Properties at CBRE, noted: “Once Hong Kong investors overcome their challenges, they will return to London.” The current market dynamics, including rising interest rates and declining asset values, have prompted many investors to liquidate their holdings, reflecting broader global economic trends.

A Victorian terrace in Walthamstow, east London, has become the first existing UK home to qualify for the Zero Bills tariff from Octopus Energy, allowing residents to enjoy no energy bills for at least five years. Chris Brown, a director of Future Fit Homes, explained: “It was surprisingly easy,” as the transformation required only solar panels, a battery, and a heat pump at a cost of approximately £15,000. Nigel Banks, technical director at Octopus, highlighted that “the cost of solar panels and batteries have come down,” making it feasible for many homes to achieve significant energy savings. The pilot home features 12 photovoltaic panels and an air source heat pump.