A study from CBI Economics suggests that 208,500 full-time jobs could be lost by April 2030 as a result of an inheritance tax raid that will affect family-owned businesses. The changes to business and agricultural property relief are expected to raise around £1.8bn in tax revenue over the next five years, but at a net fiscal cost of £1.9bn. The CBI Economics analysis, which was commissioned by lobby group Family Business UK, also found the tax changes would result in a GVA loss of £14.8bn. Almost half of family businesses expect to reduce headcount due to the changes, while around 50% expect to pause or cancel planned investments. Shadow Chancellor Mel Stride commented: “Labour’s raid on family businesses risks hollowing out the backbone of our economy,” adding: “You can’t tax your way to growth. As an entrepreneur, who has built businesses from scratch, I know it’s business that creates prosperity.” Family Business UK said the Government is risking “inadvertently undermining its mission of sustained economic growth.”

Arthur Laffer, an economist who served as adviser to presidents Ronald Reagan and Donald Trump, has called for the UK to abolish “distorting” stamp duty charges that “lock people in their homes.” He argues that the current property transaction taxes are detrimental to the housing market, suggesting a shift to a US-style annual property wealth tax instead. Mr Laffer highlighted that since 2014, the average London house price has risen by 30%, while stamp duty bills have surged by 54%. The Office for Budget Responsibility predicts that tax revenue from property transactions will nearly double from £15bn in 2024/25 to £26.5bn in 2029/30.

Louise Haigh, a former Transport Secretary, has urged the Government to reconsider its manifesto commitments and implement a wealth tax, saying that such a measure would provide “means to invest in the NHS, schools, and our communities.” Ms Haigh believes that Labour should “rip up our self-imposed tax rules” to deliver a comprehensive wealth tax. She has criticised the tax system for disproportionately taxing earned income while largely sparing wealth, arguing that this deepens inequality.

Concerns over impending inheritance tax changes have led to a surge in interest for Family Investment Companies (FICs) among high-net-worth individuals. FICs allow families to pool assets into a company structure, enabling them to gift shares to children while retaining control and avoiding inheritance tax bills. With the proportion of deaths liable for inheritance tax expected to reach nearly 10% by the decade’s end, families are increasingly exploring FICs as a viable estate-planning option. David Denton from Quilter Cheviot highlighted that FICs are “very attractive” due to the absence of a cap on wealth transfers.

Analysts at JPMorgan say Chancellor Rachel Reeves is on course to raise taxes by £24.5bn as ministers look to fund higher welfare spending. Allan Monks at JPMorgan said the tax hike will be needed to restore a £9.9bn fiscal buffer. He predicts that Ms Reeves would extend a freeze on income tax thresholds beyond the current deadline of 2028. Sanjay Raja at Deutsche Bank has also warned that higher taxes in the autumn Budget are now “a near certainty.”

Dan Neidle, founder of Tax Policy Associates, says the UK’s corporate tax system suffers from excessive complexity, hindering investment and increasing compliance costs, and argues that reform is required.

According to the annual American Express Business Barometer, over two-thirds (68%) of SME leaders feel their businesses are resilient, having faced a series of challenges. The survey revealed that 73% of SME bosses are optimistic about their future, a 4% increase from last year, with 71% expecting growth in the next 12 months. Ruchi Sharma, vice-president, UK commercial at American Express, said: “Business owners and leaders have needed to be more agile and determined than ever.” The research, conducted with Small Business Saturday UK, also highlighted a growing interest in technology investment, with 23% of SMEs planning to enhance efficiency through tech and payment innovations. Additionally, 49% of SMEs are integrating or expanding their use of AI to improve customer service and marketing efforts.

Analysis shows that one in three hospitality firms were loss-making in Q1, with pubs and restaurants hit by tax increases that have seen costs across the industry jump by £3.4bn. Research from industry bodies including UKHospitality and the British Beer and Pub Association also shows that six in ten firms have been forced to cut jobs and more than three-quarters have had to increase prices. The report warns that jobs are being lost and livelihoods are under threat after the sector was hit by increases in employers’ National Insurance and the national minimum wage, as well as business rates changes.

Research by Policy Exchange suggests that cutting 80,000 Civil Service jobs could save the Treasury as much as £5bn a year. The think-tank’s report argues in favour of enabling staff to take home more pay in exchange for smaller pensions. It also suggests increasing salaries at the higher levels, saying they have become “increasingly uncompetitive.” Report author Stephen Webb, a former director at the Home Office and Cabinet Office, noted Government plans to make reductions of £1.5bn by the end of the Parliament, but suggested that these could go “further” and “faster,” delivering £5bn in reductions. Calling for greater efficiency, John Kingman, the former second permanent secretary at the Treasury, said: “An over-resourced administrative machine inevitably generates ever more processes for itself and slows itself down.”

Emma Jacobs in the FT says employer diversity programmes tend to focus on race and gender and often neglect the socio-economic element, despite analysis showing this can hold staff back.

The Government plans to ease restrictions on pension funds, allowing companies to access surplus funds from defined benefit pension schemes which currently around £160bn in excess assets. The move is intended to enable investments into businesses and could generate up to £40bn in tax revenue for the Treasury, due to a 25% tax on withdrawn funds. Critics warn this could endanger the security of pensions for about 8.8m members, especially if struggling businesses exploit the funds to boost cash flow. While trustees must approve any withdrawals based on members’ best interests, concerns remain about the potential weakening of safeguards. Supporters argue that, with proper protections, the reforms could enhance member benefits and support business growth.

British manufacturers are urging the Government to implement offset agreements in military contracts with foreign firms to ensure that these companies invest in the UK economy. Andrew Kinniburgh, director-general of MakeUK Defence, said: “Securing inward investment in defence deals should be a pillar of the Government’s growth agenda.” The organisation represents 600 engineering companies and is advocating for a legally binding agreement that mandates foreign firms to reinvest 75% to 90% of the contract’s economic value back into the UK over a decade.

Dario Amodei, chief executive of AI start-up Anthropic, says the technology could eliminate up to 50% of all entry level white-collar jobs within the next five years. He said the producers of such technology “have a duty and an obligation to be honest about what’s coming,” adding: “I don’t think this is on people’s radar.” Heather Dishy, a partner at venture capital firm SignalFire, has suggested that AI is “doing what interns and new grads used to do,” adding: “Now, one experienced worker equipped with AI tools can do the work of multiple junior staff, without the overhead.”

Tesco is to close some stores an hour earlier after a tax hike increased staffing costs by £235m. The supermarket is set to trial shutting some Express stores at 10pm rather than 11pm. It is also expected to have fewer staff in these stores when they are open. Ken Murphy, Tesco’s chief executive, says the retailer has seen costs climb after an increase in employers National Insurance contributions, which have risen from 13.8% to 15%, and a lowering of the threshold from £9,100 to £5,000. An increase in the minimum wage has also had an impact. The British Retail Consortium says retailers are facing £7bn of extra costs due to measures set out in October’s Budget.

The Institute for Fiscal Studies (IFS) says tough choices are “unavoidable” as the Government sets out its spending plans. The think-tank said ministers have “front-loaded” spending over the initial years of the current parliament, meaning spending will slow down, going on to warn: “The consequences of this decision must be confronted.” Bee Boileau, a research economist at IFS, said the Treasury faced “some unavoidably tough choices,” adding: “After turning on the spending taps last autumn, the flow of additional funding is now set to slow to more of a trickle.” Shadow Chancellor Mel Stride says Chancellor Rachel Reeves has been left with “impossible choices” because she “chose to push borrowing and spending to the limit.” The upcoming Spending Review will outline day-to-day departmental budgets over the next three years and investment budgets over the next four.

Alan Taylor, a member of the Bank of England’s Monetary Policy Committee, says that an increase in inflation should not deter policymakers from continuing to cut interest rates. He said higher inflation is “not coming from demand and supply pressures; for the most part, it’s coming out of one-time tax and administered price changes,” noting that the Bank’s “forecast path” suggests that “there is going to be an inflation hump and then it’s going to go away.” The Bank this month slashed interest rates to 4.25%, the lowest level since 2023.

The UK is set to sign a trade agreement with the Gulf states that could be worth as much as £1.6bn. Talks between the UK and the Gulf Cooperation Council have been ongoing since 2022. Ministers say the deal with countries including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates could increase in value, adding an additional £8.6bn a year by 2035. The deal is likely to be particularly beneficial for the car industry and financial services.

As young people enter their 20s, many are grappling with the harsh realities of the cost of living, leading to a widespread quarter-life crisis. A LinkedIn study revealed that 75% of young Brits aged 25 to 33 are affected, with 49% citing insufficient earnings as a primary source of anxiety. Dr Emma Palmer-Cooper, a research psychologist, noted that “the journey into adulthood has shifted significantly due to the cost of living,” causing traditional milestones to be delayed. Young adults are now prioritising career advancement over personal milestones, yet financial struggles persist. Dr Sona Kaur, a clinical psychologist, described the pressure of having life figured out by 25 as “outdated,” highlighting the disconnect between expectations and reality.