Darren Jones, Chief Secretary to the Treasury, says the era of globalisation which has resulted in a boom in imports has come to an end after Donald Trump announced new tariffs, including a baseline 10% import duty. This comes after Sir Keir Starmer said that “the world as we knew it has gone” in terms of the global economy and trade. Appearing on the BBC’s Sunday with Laura Kuenssberg, Mr Jones was asked whether globalisation was over, to which he replied: “Yeah, it’s ended, the Prime Minister said that himself… Globalisation as we’ve known it for the last couple of decades has come to an end.” Mr Jones said this means the UK has to “build out” relationships with global allies and also invest in its own economy.

US import tariffs introduced by Donald Trump are set to inflict a “material hit” to the UK economy, according to KPMG analysis. The trade war is expected to reduce economic growth by 0.8% over the next two years, leaving Britain £21.6bn worse off by 2027. The forecast for 0.8% growth is a reduction on the 1.7% growth previously predicted by KPMG, which also said it had expected growth of 1.4% in 2026. Yael Selfin, KPMG’s chief UK economist, warned: “Ultimately, the main worry is confidence. Trade disruption is bad, but uncertainty is the big unknown.” Meanwhile, a survey by the British Chambers of Commerce shows that 62% of UK companies trading with the US anticipate negative impacts from the tariffs.

Sir Keir Starmer has committed to protecting British businesses from the impact of US tariffs, saying: “We stand ready to use industrial policy to help shelter British business from the storm.” The Prime Minister emphasised the need for the UK to adapt to changing global dynamics, arguing that “old assumptions can no longer be taken for granted.” He said that while “the idea the state should intervene directly to shape the market has often been derided … we simply cannot cling on to old sentiments when the world is turning this fast.” It has been suggested that ministers may move to cut red tape and ease regulations, as well as offer targeted tax breaks to help out struggling sectors.

Investment bank Cavendish says companies could look to London for listings and investment due to volatility in the US. The broker told shareholders it has a “solid pipeline of transactions in train,” including IPOs. Data shows that just 16 new companies listed in the UK last year, with this down from 20 in 2023 and 42 in 2022. Cavendish said it is “cautiously optimistic” that sentiment towards UK and European equities “may finally be turning” after a “challenging period,” adding that risks to US equities “have begun to prompt a reappraisal of diversification, driving a rotation from the US to European and UK equities.”

The government is planning to water down rules for private equity and hedge funds by introducing a lighter regulatory regime for smaller groups to encourage more investment.

The British Chambers of Commerce (BCC) has warned that concern over a tax hike targeting employers is set to become a “toxic reality” for British businesses, driving up costs and hitting income. A BCC poll of around 5,200 companies shows that fewer than half of the firms expect turnover to increase in the next 12 months. It was also found that many firms scaled down their investment plans in the first three months of the year. The poll saw around three in five firms flag the £25bn employer National Insurance tax raid as their main concern. The analysis suggests that while costs are rising by £500,000 this year, profits could fall by as much as 25%. Shevaun Haviland, director general of the BCC, said that the National Insurance hike has been “an impending concern” that will now become a “toxic reality for millions of businesses.”

Andrew Neil in the Mail on Sunday says the increase in employer National Insurance contributions (NICs) “is destined go down in history as the most destructive British tax increase of modern times,” and is set to impose a £25bn burden on an already struggling economy. Kate Nicholls, chief executive of UK Hospitality, describes the decision to hike the rate as “the biggest regressive tax change I’ve seen in 30 years.” The Resolution Foundation estimates that 85,000 jobs could be lost, primarily among low-paid workers, while the British Retail Consortium says inflation will rise due to increased costs, further straining consumer confidence. Mr Neil says the rise in NICs is “especially invidious” as it comes alongside an increase in the minimum wage and a reduction in business rate relief.

A poll by recruitment company Reed shows that 46% of companies are cutting recruitment because of a hike in National Insurance that will see employers’ contributions rise from 13.8% to 15%. The survey, which included 254 companies representing more than 260,000 employees, saw almost two-thirds say they are concerned about the changes. On average, the firms polled expect annual profits to decrease by 29% due to the change. While 16% have started making redundancies due to the hike, 19% are postponing or cancelling salary reviews and 22% are having to make budget cuts. James Reed, chairman and CEO of the Reed Group, reiterated a previous warning that the increase in employers’ National Insurance was “a tax on jobs,” adding: “These are tough times for companies that want to hire and expand and this will feed through into weaker economic growth.”

Analysis shows that employers have cut 25,000 jobs in the five months since the October Budget, with this equal to 160 job losses per day or one every nine minutes. The Office for Budget Responsibility expects unemployment to hit 1.6m this year, with this 160,000 higher than it forecast at the Budget. This comes as businesses warn that the hike to National Insurance contributions could mean job losses, with the rate for employers increasing from 13.8% to 15% and the earnings threshold being reduced from £9,100 to £5,000. Shevaun Haviland of the British Chambers of Commerce said the NI hike was members’ “number one” concern.

Sue Partridge, the head of Airbus’ Bristol factory, has voiced concern over the apprenticeship levy, saying that it is too “restrictive.” Urging ministers to make it easier for smaller businesses to hire trainees, she warned that smaller firms “can’t necessarily afford” to take on apprentices due to “the way things are structured” with the apprenticeship levy. Ms Partridge said it would be a “win-win” if Airbus could pass some of the high calibre candidates that apply to join the aerospace manufacturer to other firms. She also said the levy could be utilised to “reskill” existing staff.

Companies House has collected a mere £1,250 in fines despite being granted new powers to combat corruption. Following revelations of fraudulent registrations, including names like “Darth Vader,” the agency is implementing identity checks for directors, acknowledging that up to 20% of the 4.9m companies may have provided false information. Since last October, 234 penalties totalling £58,500 have been issued, but only 2% have been collected. Liam Byrne, chair of the Business Select Committee, expressed concerns, saying: “When up to 1m companies are built on lies, it’s time for Companies House to get tougher.” He emphasised the need for decisive action against economic crime. Justin Madders, a minister at the Department for Business and Trade, said action to collect penalties will “accelerate during summer 2025.”

Keir Starmer is reportedly preparing a rethink of the Government’s economic policy in response to the tariffs announced by US President Donald Trump, with it suggested that the Prime Minister and Chancellor Rachel Reeves could consider increasing taxes or changing their fiscal rules to allow more borrowing. Paul Johnson, director of the Institute for Fiscal Studies, said the extent to which the US tariffs “change the economic situation in ways that could not have been predicted,” gives officials “permission to do things that were not politically doable otherwise.” He added: “And if this is an economic crisis, it changes what is the appropriate policy response.”

Sales of champagne in the UK have fallen to a 25-year low, with only 22.3m bottles shipped last year, the lowest since 2000. Experts attribute the decline to rising prices and changing consumer habits, particularly among Gen Z, who are drinking less alcohol. The cost of champagne has also surged by 25% over the past three years, with many bottles now priced over £40. In contrast, sales of alternatives like Prosecco have soared, with 660m bottles sold in 2024.