According to a new survey by the British Chambers of Commerce (BCC), many small UK businesses are experiencing a decline in overseas sales, exacerbated by President Donald Trump’s tariffs. The trade confidence outlook report, which surveyed 1,800 SMEs, revealed that over a quarter of exporters reported decreased sales in the first quarter of the year, a significant rise from 14% in mid-2018. Nearly a third of manufacturers also faced sales declines, indicating broader issues within the sector. William Bain, BCC’s trade policy head, said: “We believe the Government has adopted the right strategy for tariffs of negotiation not retaliation, and the signals from the White House are there is a deal to be done.” He added: “It is also right to pursue a closer trading relationship with the EU and to point businesses towards the burgeoning opportunities in the Indo-Pacific region.”

British savers are expressing concerns over Chancellor Rachel Reeves’ proposal to direct pension funds towards the UK economy. Despite Reeves asserting that this could enhance UK growth by billions, a survey by PensionBee revealed that only 8% of savers are inclined to invest in high-risk assets. The survey also indicated that 26% of savers favour low-risk strategies, while 41% seek simple, transparent investments. Clare Reilly, chief engagement officer at PensionBee, said “These findings highlight that UK pension savers want stability and transparency, not speculation. The majority are looking for steady, reliable growth, with most favouring a balanced, moderate-risk approach.”

Recruitment firm Hays has announced significant job cuts in the UK and Ireland, reducing its consultant headcount by 11% in the last quarter and 20% year-on-year. The company anticipates that challenging market conditions will persist into fiscal 2026, attributing this to Europe’s economic struggles and a global trade war. Hays reported a 13% decline in net fees in the UK and Ireland, with temporary and permanent fee revenues down 11% and 16%, respectively. Hays aims to improve productivity and reduce costs, expecting better profit performance in the second half of the fiscal year. Overall, the group’s global net fees fell by 9% year-on-year.

The Financial Conduct Authority (FCA) has announced plans to remove up to 140 pages from its extensive handbook in a bid to reduce regulatory burdens and stimulate economic growth. Chancellor Rachel Reeves previously urged the FCA to reduce the regulatory burden on businesses. The proposed changes, which will benefit around 16,000 firms, include eliminating certain data collection requirements related to stock lending and complaints. Despite the potential for only £1.3m in annual savings from two proposed changes, the FCA is expected to continue its efforts to streamline regulations.

Allica Bank reported a £1bn increase in lending activity last year while revenue shot up 68% to £292.1m, compared to £173.9m in 2023. The digital bank, which focusses on SMEs, increased pre-tax profits 86% to £29.9m. Richard Davies, Allica’s chief executive, said Allica is targeting 10% market penetration within the next three years.

UK inflation fell from 2.8% in February to 2.6% in March, intensifying the pressure on the Bank of England to consider cutting interest rates next month. Analysts had expected a drop of 2.7%. Services inflation slowed more than expected to 4.7% in March from 5% in February. Food inflation also eased, from 3.3% to 3%. However, the drop is expected to be short-lived with analysts predicting a spike from April as rising bills and higher business costs take hold. The Chancellor welcomed the figures, saying: “Inflation falling for two months in a row, wages growing faster than prices and positive growth figures are encouraging signs…but there is more to be done.”

Over half of UK pension funds are failing to meet essential performance benchmarks, risking savers losing out on £163,000. A recent analysis by Investing Insiders revealed that 53.6% of pensions did not outperform their risk category benchmarks, highlighting a significant disparity in returns. The worst-performing fund, Smart Pension’s Smart All Stocks Index-Linked Gilts Index Fund, recorded a staggering loss of -28.5% over five years, reducing a £100,000 pension pot to £71,500. In contrast, the best-performing fund, the RLP Global Equity Select Pension fund managed by Royal London, achieved a remarkable 134.5% return, increasing the same pot to £234,500.

The Chancellor’s recent changes to inheritance tax rules have prompted a surge in parents providing substantial house deposits to their children, aiming to avoid hefty tax bills. According to data from Twenty7tec, 110,325 homebuyers received at least £100,000 from family members last year, an 8% increase from 2023. Parental gifts and loans for house deposits reached £9.3bn in 2024, nearly double the £5bn recorded in 2019. With inheritance tax currently at 40% on assets over £325,000, many are utilising the “seven-year rule” to gift assets tax-free. Nimesh Shah from Blick Rothenberg commented: “The Government has turned the screws on inheritance tax recently which has brought that to the forefront of people’s minds. They’re worried about the seven-year rule being scrapped or lengthened – as it’s quite generous at the moment.” The Office for Budget Responsibility predicts that by 2029-30, 9.7% of estates will be liable for inheritance tax, up from 4% today.