Data from the Insolvency Service shows that registered company insolvencies hit 2,053 in April, marking a 3% increase on March’s total but a 5% decline compared to April 2024. Creditors’ voluntary liquidations, where owners or shareholders choose to fold a firm, were the most common insolvency, with 1,544 recorded. There were also 379 compulsory liquidations. Tom Russell, president of insolvency and restructuring trade body R3, said firms have been hit by a hike in employers’ National Insurance contributions and an increase in the national living wage. Warning that the full impact of these costs on businesses is not likely to be seen until later in the year, he added: “The prospect of these changes being introduced has influenced a number of directors’ decisions to seek insolvency and restructuring advice and consider the future of their businesses.” The Insolvency Service also reported an 8% month-on-month rise in personal insolvencies in April, with 10,012 individuals entering insolvency. The figures included 589 bankruptcies, 3,837 debt relief orders, and 5,586 individual voluntary arrangements.

Deputy Prime Minister Angela Rayner is advocating for increased taxes on high earners and savers. Writing to Chancellor Rachel Reeves, she proposed eight tax hikes, including freezing the threshold at which the additional rate of income tax kicks in. Ms Rayner also proposed ending inheritance tax relief on shares for the Alternative Investment Market. Other mooted measures include closing the commercial property stamp duty loophole, reinstating the pensions lifetime allowance, raising rates on dividend taxes to bring them closer to income tax and removing the tax-free dividend allowance. Calculations outlined in the memo suggest that the plans could raise taxes by £3bn to £4bn annually. The memo suggests that these policies would be “popular, prudent and would not raise taxes on working people.” Shadow Chancellor Mel Stride has hit out at the proposals, saying: “So now we know. Behind closed doors, Labour is plotting fresh tax hikes on hardworking savers, pensions, and businesses.”

Rupert Soames, president of the Confederation of British Industry (CBI), has warned that the Government’s efforts to reduce red tape will fail without consulting the businesses affected by regulations. In a speech at Singer Capital Markets, he described the Government’s deregulatory push as a “golden opportunity” to enhance international competitiveness and foster innovation. However, he emphasised that “these practical changes won’t be sufficient without business input.” The Government has initiated a reform agenda, with a joint letter from Prime Minister Keir Starmer and Chancellor Rachel Reeves urging regulators to propose ways to stimulate economic growth.

Millions of Mastercard users could be in line for compensation payments after a tribunal approved a settlement in a lawsuit centred on historic fees levied on businesses by the card provider. The Competition Appeal Tribunal has sanctioned the £200m distribution plan that will see up to £70 given to card holders. The lawsuit, which was brought forward by former financial ombudsman Walter Merricks, stemmed from a 2007 European Commission ruling which found that multilateral interchange fees levied on businesses for transactions between 1992 and 2008 violated competition law.

A poll of economists by Reuters shows that the economy is expected to grow by 1% this year, with this an improvement on the 0.9% forecast in April. James Smith, an economist at ING, said: “The UK government is massively increasing spending this year. There’s a lot of money coming in and that’s going to act as a bit of a tailwind as well. Real wage growth is also still quite strong, so the economy still has some reasonable underpinnings.” Inflation is forecast to have risen to 3.3% in April, from 2.6% in March. Economists polled believe inflation will be above 3% on average in Q2 and Q3.

Huw Pill, the Bank of England’s chief economist, has warned that interest rate cuts are fuelling inflation and need to slow down. Calling for a more “cautious” approach, he said inflation has remained above the Bank’s 2% target because the Monetary Policy Committee started cutting rates “slightly too early,” adding that the the cost of borrowing did not go high enough.

While the London Stock Exchange ranked 35th globally for money raised from IPOs in 2024, with listings bringing in £459m, London surged to fifth when secondary fundraising was taken into account. With follow-on fundraising included, London raised £22bn across 73 issues, marking a 53% increase from 2023. A report from the British Venture Capital Association shows that private capital firms largely raised money from public offerings throughout secondary fundraising during 2024. The report shows that 6% of cash brought in by private equity exits came from fundraising, while 46% came from sales to other private equity firms. It is noted that the Financial Conduct Authority has launched a consultation on making secondary fundraising easier.

According to a study by KPMG UK, 25% of people identify as ‘silent savers’, keeping their financial matters private, while only 5% are open about their finances. The survey, which involved 2,000 adults, revealed that 18% are ‘cautious calculators’, meticulously planning their finances, and 12% are ‘casual conversationalists’, discussing money without stress. Despite 88% claiming confidence in number crunching, 37% struggle with complex financial documents.