UK businesses are gearing up for significant hiring cuts and reduced investment plans due to the pressures of Donald Trump’s trade war. According to Deloitte’s quarterly survey, companies are preparing for the most substantial hiring reductions since 2020, with two-thirds of executives prioritising cost-cutting measures. Amanda Tickel, head of tax and trade policy at Deloitte, stated: “Previous periods of uncertainty over future terms of trade have resulted in a prolonged squeeze on investment.” The ongoing trade tensions are expected to have a detrimental impact on the UK economy, with KPMG estimating a potential £22bn hit. Despite some tariff exemptions, uncertainty remains high, particularly for firms with international exposure.

MPs on Saturday passed legislation giving ministers the power to take British Steel into Government hands and keep the company’s Scunthorpe plant open. British Steel’s Chinese owners, Jingye, were accused by Business Secretary Jonathan Reynolds of trying to close down primary steelmaking in the UK. The Steel Industry (Special Measures) Bill cleared both houses in a matter of hours. The move stops short of nationalising British Steel, but allows ministers to instruct the company to keep the plant running.

Sir Keir Starmer has announced the suspension of import tariffs on 89 products, including electric vehicle battery inputs and fruit juice, to support British businesses affected by Donald Trump’s trade war. The intervention aims to alleviate financial pressure on firms, with the Government estimating annual savings of £17m. However, concerns remain regarding whether these savings will be passed on to consumers and the potential impact on Treasury revenues. The tariff cuts will last until July 2027, with the hope of reducing costs for everyday essentials in supermarkets and restaurants.

The UK Government has announced a £20bn increase in financing support for exporters, particularly those impacted by US tariffs. The move raises the UK Export Finance’s (UKEF) lending capacity to £80bn, with £10bn allocated for those most affected in the short term. The British Business Bank will also be able to hand out loans of up to £2m to small businesses.

Chancellor Rachel Reeves is facing pressure to introduce a wealth tax, with campaigners suggesting a 2% levy could generate £24bn for the Treasury. However, Tom Clougherty, executive director at the Institute of Economic Affairs, warns that such a tax would be detrimental, stating: “Wealth taxes are a bad idea, economically and practically.” He argues that a wealth tax could lead to an effective tax rate of over 80% for wealthy investors, discouraging investment and potentially driving millionaires out of the UK. Clougherty highlights that the UK relies on the wealthy for public revenue, with the top 0.1% contributing around £34bn in income tax annually. Separately, the Mail talks to German-born billionaire David von Rosen who says the Government should reverse its “stupid” decision to end the non-dom scheme for foreign-domiciled UK residents. He adds that the super-rich are also likely to avoid investing heavily in Britain because of changes to capital gains tax on assets. His comments come after figures showed around 10,000 millionaires have left London in the last year, with the capital now losing its millionaire residents at a similar rate to Moscow.

As the UK grapples with economic challenges reminiscent of the past, the 50th anniversary of Denis Healey’s 1975 budget prompts reflection on tax policy, writes Paul Johnson, director of the Institute for Fiscal Studies, in the Times. Healey’s budget, introduced during a time of soaring inflation and unemployment, raised the basic rate of income tax from 33% to 35%, a move that has not been repeated since. With borrowing at high levels and growth forecasts likely to be downgraded, the pressure is mounting on the Chancellor to reconsider tax strategies. Johnson suggests now is the time to “break the 50-year taboo” and consider raising the basic rate of income tax to secure necessary revenue.

Writing in City AM, Ellen Gallagher, a financial crime partner at Vardags, discusses the call from the Institute of Business Ethics for City law firms to implement stricter anti-money laundering (AML) controls. The UK already has stringent financial crime regulations, Gallagher argues, warning that further compliance burdens may hinder individuals’ access to justice. The IBE report suggests law firms adopt a “legitimate provenance of wealth test,” but Gallagher argues that lawyers’ primary duty is to administer justice, not detect financial crime. Just as banks ended up debanking individuals amid fears of breaching complex AML controls, applying the same to the legal sector could result in “de-lawyering” – the consequence of which “would be the restriction of access to justice – making the UK a less attractive place to do business and a less civil society.”

Gen Z workers are increasingly being prohibited from working from home due to rising cyber threats, according to Vodafone Business’s report: ‘Securing Success: The Role of Cybersecurity in SME Growth‘. The report reveals that 48% of 18 to 27-year-olds were targeted by cyber criminals while working remotely last year. Consequently, many firms are enforcing office attendance to mitigate risks. The report also indicates that Britain’s SMEs are losing £3.4bn annually due to inadequate cybersecurity measures.

Traditionally, chief financial officers (CFOs) have been overlooked for chief executive roles, with only 13% of CEOs in the Forbes 2000 having previously served as CFOs, according to a 2015 Korn Ferry survey. However, recent trends indicate a shift, particularly in the UK, where nearly one-third of FTSE 100 CEOs have held CFO positions, up from 21% in 2019. Writing in the Times, Ian King cites the “route to the top” survey by Heidrick & Struggles, which highlights this change, with notable examples including Margherita Della Valle at Vodafone. The Spencer Stuart analysis reveals that while CFOs may be slower to drive top-line growth, they excel in improving operating margins, a crucial skill in today’s challenging market. King notes that the evolving role of CFOs, who are now more adept in technology and risk management, is paving the way for their ascent to CEO positions.

The UK economy experienced growth of 0.5% in February, according to the Office for National Statistics, defying expectations of stagnation following a flat January. Chancellor Rachel Reeves described the figures as an “encouraging sign,” highlighting improvements in both the services and manufacturing sectors. Notably, areas such as computer programming, telecoms, and car dealerships thrived within services, while electronics and pharmaceuticals led manufacturing growth. However, the data predates Labour’s tax hikes on businesses coming into effect and Donald Trump’s trade moves.

Writing in the Observer, Rachel Reeves warns of the “profound” impact Donald Trump’s tariffs will have on the UK and global economies. In her column, the Chancellor says she plans to advocate for a “more balanced global economic and trading system” at the upcoming International Monetary Fund meeting, stressing the importance of free trade over protectionism. She aims to secure a strong bilateral economic deal with the US while also pursuing an ambitious relationship with the EU and a trade deal with India.

WPP, the FTSE 100 advertising giant, is offering free lunches on Fridays to encourage its 108,000 global employees to return to the office, as part of a new policy requiring staff to work in-office at least four days a week. The policy, which includes mandatory attendance on two Fridays per month, faced resistance from employees, leading to an online petition. To make the transition smoother, WPP introduced “free-lunch Fridays,” with meals like beef ragu and garlic bread served at its London headquarters.