The London Stock Exchange experienced a significant slowdown in initial public offerings (IPOs) during the first quarter of 2025, with only five new listings raising a mere £74.7m, marking a 74% decline from the previous year. Despite this downturn, overall equity capital raised in British markets reached £7.3bn, bolstered by secondary sell-downs and rights issues. Scott McCubbin, EY UK IPO leader, said: “The IPO market thrives on stability, but ongoing macroeconomic and geopolitical instability continues to subdue listing activity in the UK.”

A consumer confidence survey published on Friday by Deloitte shows consumer confidence remained flat in the first quarter of 2025. “Amid high levels of global uncertainty, a more cautious UK consumer is likely to constrain the ability of businesses to pass on higher wage and other costs to customers,” Ian Stewart, chief economist at Deloitte, said. “A revival in consumer spending will be dependent on the jobs market holding up and inflation pressures remaining contained,” he added.

Nikhil Rathi has been reappointed as chief executive of the Financial Conduct Authority (FCA) for another five years, the Treasury has confirmed. The decision comes despite recent criticism of the regulator’s enforcement approach, with ministers urging the FCA to reduce interference. Last month, the FCA abandoned plans to routinely “name and shame” firms under investigation following backlash from various groups, including a House of Lords committee. Rathi expressed his honour at the reappointment, stating: “I am proud of the reforms we have delivered to support growth, bolster operational effectiveness, set higher standards and to keep our markets clean and open. While we must go further and faster in this age of volatility, the UK is well placed as a major international financial centre.”

Labour MPs have expressed strong opposition to proposed reductions in the digital services tax (DST) for American tech billionaires, arguing it is “morally wrong” to cut taxes for companies like Amazon and X while simultaneously reducing benefits for vulnerable individuals. The DST currently imposes a 2% tax on tech firms generating over £500m globally and £25m from UK users. Sir Keir Starmer mentioned that the DST is part of trade discussions with the US, alongside online safety regulations. Meanwhile, lawmakers have called for a tax on streaming services such as Netflix to help pay for more high-quality British TV shows. A report released by the Culture, Media and Sports Committee (CMS) suggests a 5% levy on their UK subscriber revenue. In response to the report, a Netflix spokesperson said: “The UK is Netflix’s biggest production hub outside of North America – and we want it to stay that way. But in an increasingly competitive global market, it’s key to create a business environment that incentivises rather than penalises investment, risk-taking and success.”

The European Union is poised to implement significant trade measures against the United States if negotiations with President Donald Trump do not yield satisfactory results. European Commission president Ursula von der Leyen told the FT: “We are developing retaliatory measures,” which may include tariffs on digital advertising revenues affecting major tech companies like Meta, Google, and Facebook. She stressed that the EU seeks a “completely balanced” agreement during the 90-day pause in additional tariffs. However, if talks fail, the EU could expand the trade war to services, or impose levies on the advertising revenues of digital services.

Jake Atkinson, campaigns manager for Tax Justice UK, is advocating for a wealth tax in the UK, stating: “Britain needs a wealth tax now.” He argues that a 2% tax on wealth exceeding £10m could generate £24bn annually, significantly more than the planned cuts to welfare. He counters critics’ claims that a wealth tax would drive the rich away, citing evidence from Norway, Sweden, and Denmark, where only a tiny fraction of the wealthy relocated after similar reforms. Elsewhere, Richard Farleigh writes in City AM on why a wealth tax won’t work, urging proponents to use their head, not just their heart. A wealth tax is “the sort of thing Trump would do if he were left-wing. It’s emotionally satisfying but economically flawed.”

Britain’s job market showed signs of further weakening in March, with the number of job seekers rising at the fastest rate in over four years, according to the Recruitment and Employment Confederation (REC). The pace of hiring has slowed for two and a half years, although the decline was less severe than earlier in the year. REC chief executive Neil Carberry noted: “Given the substantial effects of the Government’s decision to increase payroll taxes hugely, these figures were if anything slightly better than expected.” Despite the challenges, there are indications that the drop in hiring may be easing. The REC’s survey, conducted with KPMG, pointed out that while pay growth for permanent hires remains subdued, temporary wage growth has improved slightly.

Top City firms, including the Big Four consultancies, are collaborating with Foreign Office diplomats to enhance UK business representation globally. Launched in March, the initiative pairs over 100 diplomats with representatives from firms like PwC UK, KPMG, and EY, aiming to secure trade deals and foreign contracts. Foreign Secretary David Lammy stated: “I have asked my diplomats and policymakers to work much more closely with the UK’s world-leading financial and professional services firms.” The partnership comes despite Labour’s manifesto commitment to address the “excessive use of consultants” ahead of the 2024 general election. The scheme, described as the first of its kind, includes various corporate staff levels and aims to drive growth through improved skills sharing.

Bank of England rate-setter Sarah Breeden has stressed the need for caution regarding interest rate cuts amid ongoing global uncertainties. Breeden noted that the Bank must assess supply chain disruptions and domestic uncertainties resulting from global instability before making decisions. Meanwhile, former Bank of England MPC member Jonathan Haskel has suggested that high inflation levels call for interest rates to be held at 4.5% in May. “Core inflation in the UK, dominated by domestically generated service sector inflation, is above target-consistent levels,” Haskel said. “Thus, and given the uncertainty around what the enduring tariff level will be, I would favour a ‘wait and see’ policy and so hold UK rates at the next meeting.” The Bank is expected to cut rates in the upcoming decision, with markets anticipating three to four cuts this year.

The Bank of England has decided to postpone the sale of long-dated bonds until after June due to recent market volatility, according to deputy governor Sarah Breeden. The decision follows a surge in 30-year gilt yields, which reached their highest level since 1998, increasing government borrowing costs. Instead, the Bank will sell shorter maturity gilts next week and continue to evaluate its asset sales under the quantitative tightening (QT) programme.

Lyndon Stickley, chief executive of iplicit, has said the UK tech company aims to disrupt the accounting software market. He said: “We want to do to Sage what Netflix did to Blockbuster.” Founded in 2019, iplicit targets mid-market organisations that have outgrown basic tools but find heavyweight platforms like Oracle NetSuite too complex. With £25m in new funding, iplicit plans to enhance its AI capabilities and expand into the US by 2026. The global accounting software market is projected to reach $38.27bn by 2032, indicating a ripe opportunity for agile challengers.