Workers are set to face a financial blow of up to £11,000 over the next five years due to the Government’s new jobs tax. Chancellor Rachel Reeves has increased employer National Insurance contributions (NICs) from 13.8% to 15% in a move designed to generate approximately £25bn annually. However, analysis by the Liberal Democrats indicates that most of this tax burden will be transferred to employees, with an average worker expected to lose around £2,900 by 2030. Kensington and Chelsea is projected to be the hardest hit area, with employees facing an average loss of £10,800. Lib Dem MP Daisy Cooper said: “These figures lay bare the grim reality of the Chancellor’s jobs tax,” adding: “For the Government to pretend that this tax hike will not impact people’s pay packets is a complete deception.” The Office for Budget Responsibility has calculated that 76% of the rise in employers’ contributions will be passed down to workers through reduced real wages.

US President Donald Trump is considering an unprecedented move to impose a doubled tax rate on American arms of UK companies. The plan involves invoking a 91-year-old rule under Section 891 of the Internal Revenue Code, which allows the US to raise taxes on foreign companies if their home countries impose unfair levies on US businesses. Tim Sarson, head of tax policy for KPMG UK, warned that this could have a more significant impact than the recently announced tariffs on British goods being exported to the States, saying: “That’s the next battle in the [trade] war, and potentially affects the UK much more than the tariffs because we’re a services economy.”

The British Chambers of Commerce (BCC) has warned that a 10% tariff on goods exported to the US will hit UK traders, with two in five businesses which export to the US saying they will suffer a “significant negative impact” from charges. Around a third of British businesses exposed to tariffs are planning to raise their prices, while 15% plan to explore alternative suppliers. Despite concerns over the 10% tax, 40% of UK firms polled said the tariffs were less severe than they had been expecting. BCC director general Shevaun Haviland said that while it is possible that a deal can be done with the US, “firms don’t want to have all our eggs in one basket and want to see closer trading relationships with the EU and other markets.”

Research by BDO highlights the UK’s services sector as the “driving force” behind recent growth, despite challenges in other areas of the economy. The BDO Output Index recorded a rise in business output for the first time this year, with services contributing significantly. The output index increased to 97.75 on a scale where a figure above 95 is deemed to be positive. However, the manufacturing sector has struggled, with the index dropping to its lowest since December 2022, exacerbated by trade policy concerns. BDO partner Kaley Crossthwaite has called on ministers to support firms in the services sector and drive growth, saying: “To invest, expand and continue playing their part, they need targeted policies that strengthen the UK’s position in international markets.”

UK house prices fell by 0.5% in March, according to Halifax, with data showing that the average property is now worth £296,699. The decline follows a 0.2% dip recorded in February. Despite prices falling month-on-month, prices are up 2.8% year-on-year. The recent lull in the market has been attributed to higher stamp duty charges which came into force on April 1. Amanda Bryden, head of mortgages at Halifax, said: “House prices rose in January as buyers rushed to beat the March stamp duty deadline,” adding that with these deals now completing, demand is returning to normal.

Analysis by Deloitte shows that FTSE 100 companies plan to bolster executive pay and fast-track reviews as they look to remain competitive with US firms. The report shows that of the 55 companies that have published their annual reports for 2024, 24 have sought shareholder approval for new pay policies – up from 16 last year. It was also shown that 13 of these firms aim to “significantly increase incentive levels” or introduce a more “innovative pay structure,” up from just 9 a year ago. Deloitte also found that the median pay package of FTSE 100 bosses rose 7% year-on-year to hit £4.79m in 2024, reflecting the ongoing efforts to attract top talent in a competitive market.

Home Office data shows that fewer than 181,000 visas were allocated to highly-skilled foreign workers in key sectors crucial for economic growth, representing only 32% of the total 560,000 visas issued. The analysis highlights a significant shortfall in skilled workers, particularly in life sciences, where only 16,000 visas were granted despite a need for 133,000 by 2030. The previous government’s changes to the Skilled Worker visa have been blamed for exacerbating the issue, with officials having increased the minimum salary threshold and imposed stricter restrictions on employees bringing dependents into the country. Zain Ali, CEO of business consultancy specialist Centuro Global, comments: “The UK’s visa system is unfit for purpose and fails to differentiate between roles critical to our economy.”

Executives from Barclays, HSBC, Bank of America, JPMorgan and Citi have held talks on the new tariffs on goods being imported into the US in a call organised by the Bank Policy Institute. This comes as lenders have seen their shares among the hardest hit since President Donald Trump announced the charges, with the FTSE 350 bank index falling by more than 10% in five days and HSBC and Standard Chartered both falling after China announced retaliatory tariffs against the US.

The Financial Conduct Authority (FCA) is consulting on plans to relax regulations for hedge funds and alternative investment managers, saying new rules will make it easier for UK asset managers to operate around the world. The Treasury said it will increase the threshold for alternative asset managers to be subjected to the main rules for the sector, from £100m in assets under management to £5bn. The reforms also include having different rules for firms carrying out different activities in an effort to make regulation fairer. City Minister Emma Reynolds said changes are part of a strategy to make Britain “the number one place to do business,” with the Government focused on “tearing down unnecessary barriers to investment.” Michael Moore, chief of the British Venture Capital Association, said the consultation is “an important step in securing the UK’s status as one of the world’s leading private capital hubs.”

Whistleblowers claim that Lloyds Bank failed to support small firms during the aftermath of the 2008 financial crash. Business owners have told the BBC’s Panorama that their companies collapsed after being referred to the Business Support Unit, which was intended to assist struggling clients. A whistleblower says there was a “pattern” of misclassifying viable businesses as “distressed,” leading to their unnecessary administration. Lloyds has categorically denied the allegations, saying the “historic allegations have been thoroughly investigated… and found to be unsubstantiated.”

Paul Johnson, director of the Institute for Fiscal Studies (IFS), says the UK may be heading toward a recession, even if the Government can agree trade deals to mitigate the impact of US tariffs. Reflecting on the declines seen on global stock markets in the wake of President Donald Trump’s tariffs on imports into the US, he said: “Unless something happens, we are certainly in for a period of much slower growth than we were expecting, quite possibly a recession.” Asked whether trade deals would help support the UK economy, Mr Johnson warned: “I rather fear we’re screwed either way.”

Nearly two in five Brits are either cutting their spending or are unable to pay essential bills due to financial strain, according to a poll for City AM and Freshwater Strategy. More than one in ten said they were currently unable to pay for essential bills or were incurring debt to do so, while a fifth said they would be unable to cover an emergency £500 bill. It was also found that around three in five are worried about the impact of US tariffs on their personal finances.