Analysis shows that 30,000 millionaires have left London in the last decade, with an increasingly hostile tax environment said to be a contributing factor in the exodus of wealth. Data compiled by analytics firm New World Wealth for advisors Henley & Partners shows that the number of millionaires in the capital has fallen from 245,100 in 2014 to 215,700 in 2024, marking a 12% decline. The UK saw 10,800 millionaires depart in 2024, with this coming amid an inheritance tax raid and changes to non-dom rules that mean foreign wealth is subject to domestic taxes after four years. Under previous rules, non-doms were exempt from paying tax on money made abroad. Adam Smith Institute analysis suggests that each of the millionaires who left Britain last year would have paid at least £393,957 in income tax per year. Christopher Groves, a partner at international law firm Withers, said Britain has been “slowly strangling the golden goose,” arguing that the Government’s approach “is to say they are pro-growth and pro-business but then administer punishment beatings through the tax system.” Andrew Amoils, head of research at New World Wealth, notes that the UK’s capital gains and inheritance taxes “are amongst the highest in the world,” warning that this deters wealthy business owners and retirees from living here.

Former Cabinet Secretary Lord O’Donnell has warned that tax rises are “on the cards” as the UK grapples with the economic fallout from Donald Trump’s tariffs. He noted that while London and the South East may escape the worst effects, the Midlands and North, with their manufacturing base, will suffer significantly. Lord O’Donnell emphasised the indirect impacts of the tariffs, predicting a global economic downturn that could harm UK exporters.

Data from Interpath shows that 330 businesses went into administration in the first quarter of 2025. While this marks an increase on the 321 recorded in Q1 2024, it is lower than the 337 seen in Q4 2024. The advisory firm has warned that the number of UK companies going bust is set to “rise sharply” as businesses “grapple with the impact of new US tariffs on their organisations and the wider economy.” Interpath’s UK chief executive, Will Wright, said the new tariff on imports into the US “has sent shockwaves round the globe and has knocked corporate confidence.”

Chancellor Rachel Reeves is set to meet with City executives to discuss the impact of US tariffs which have driven volatility across global financial markets. Sources say that while the talks centre on the Treasury’s financial services growth and competitiveness strategy, fallout from President Donald Trump announcing new import tariffs will feature prominently on the agenda. Insiders say that Ms Reeves will reiterate a commitment to working with international partners to reduce barriers to trade in talks set to feature the bosses of Lloyds, Hargreaves Lansdown and Legal & General.

The Bank of England has asked lenders about market liquidity and whether clients were having issues with funding in the wake of new tariffs announced by the US which have shaken financial markets. The Prudential Regulation Authority (PRA) asked banks to flag any concerns over clients such as hedge funds being unable to heed margin calls. Sources say the PRA did not see any significant signs of distress in the banks’ responses. Meanwhile, Chancellor Rachel Reeves has told the House of Commons that the Bank’s governor had “confirmed that markets are functioning effectively and that our banking system is resilient.”

Analysis by the Institute of Directors (IoD) shows that UK businesses have yet to change their approach to diversity, equity and inclusion (DEI). While firms in the US are rowing back on DEI policies amid a clampdown by President Donald Trump, 71% of British business leaders said they are not planning to change their current approach to diversity. The IoD found that just one in ten UK firms plan to scale down their DEI activities, while 8% plan to review the matter this year. It was also shown that 4% plan to enhance their DEI initiatives.

Clare Lombardelli, the Bank of England’s deputy governor, has warned that a trade war sparked by US tariffs will “depress activity,” noting that the charge on exports has delivered an “increase in uncertainty and changes in asset prices.” Ms Lombardelli said the impact on inflation “depends a lot more on the circumstances on how other countries respond and how that feeds through to the UK.”

The Institute for Public Policy Research (IPPR) has released a report which suggest that a significant number of AI firms in the UK are prioritising generic efficiency tools over innovations that address societal challenges. The study, which analysed 3,256 AI firms, revealed that 85% do not target specific problems or sectors. The report calls for the Government to establish an AI tracking unit to identify gaps in development and direct funding towards impactful innovations. Without intervention, the report warns that the UK risks missing out on the potential of AI to enhance public good and drive economic growth.

Some lenders are set to cut mortgage rates after economists forecast that the Bank of England will cut interest rates by more than had been expected to avoid an economic downturn. Experts say the uncertainty stemming from new US import tariffs means the Bank is likely to reduce the base rate three times in 2025, having previously said two cuts were likely. Sarah Coles, head of personal finance at Hargreaves Lansdown, said central banks “will be really looking to cut interest rates as much as possible in order to support growth,” adding that mortgage companies “start to price that in right away.” Laith Khalaf, head of investment analysis for AJ Bell, said that while tariffs announced by President Donald Trump “might have created havoc in the stock market … there could be a silver lining for UK mortgage borrowers.”

With the Office for National Statistics (ONS) set to release economic growth figures on Friday, a Bloomberg poll of economists suggests that the data will show month-on-month growth of 0.1% for February. This would mark an improvement on the 0.1% contraction recorded in January. Any rise in February is expected to be driven by the services sector, while industrial production and manufacturing are predicted to have rebounded from 1% declines. Most forecasters do not expect UK growth to come in above 0.5% for any quarter of this year. Capital Economics predicts that there will be growth of 0.2% in Q1 and Q2, followed by 0.3% growth in the following three quarters.

Analysis from the Resolution Foundation suggests that productivity slumped by 0.5% between 2019 and 2024, with the think-tank describing the rate of decline as “almost unprecedented.” The data contradicts figures from the Office for National Statistics, which estimates an increase of 1.8% over the same period. Simon Pittaway, from the Resolution Foundation, said: “Britain’s already dire productivity record in the 2010s has got even worse during the turbulent 2020s.”

A survey of around 500 business owners suggests that SMEs are no longer prioritising net zero practices. The poll from technology firm Bionic shows that more than half of respondents have deprioritised green practices in the last year. The poll also reveals concern over finances, with a quarter of SMEs identifying high energy costs as a key issue. Nearly a third said higher National Insurance contributions will stretch their budgets.