The Confederation of British Industry (CBI) has revised its economic growth forecasts for the UK, predicting an increase of 1.2% for 2025 and 1% for 2026, down from previous estimates of 1.6% and 1.5%, respectively. The CBI said factors such as US tariffs and increased payroll taxes, which are impacting hiring and investment plans, are set to squeeze growth. The forecasts also consider the potential effects of rising oil prices due to geopolitical tensions. Inflation is expected to remain above the Bank of England’s 2% target this year, with the rate influenced by higher household energy costs. The CBI anticipates that household spending will drive growth in 2026, aided by cooling inflation and lower borrowing costs. CBI chief economist Louise Hellem said: “The unpredictable global outlook combined with rising employment costs… means it’s more important than ever that Government pulls all the levers it can to set the UK on a path to sustainable growth.” She also noted that an increase in National Insurance contributions alongside the higher National Living Wage “have had a material impact on business decisions.”

Businesses say there is “tentative hope” that the Government can deliver higher growth, according to a survey from Lloyds. While the analysis saw just four out of 14 sectors see an increase in output in May, input cost inflation improved slightly. It was also shown that businesses raised their own prices at the slowest rate in five months. Nikesh Sawjani, senior UK economist at Lloyds, said: “While most sectors still face weak demand and rising costs are squeezing margins for businesses, the broader uptick in activity could suggest some early signs of renewed momentum.”

A Lloyds survey of 100 leaders across banks and financial services firms found that over a third plan to increase capital spending, focusing on AI and new products to boost growth and productivity. More than half expect business growth in the next year, signalling optimism for the UK economy. Lisa Francis, head of institutional coverage at Lloyds, said the data suggests that business leaders are “ready to invest,” noting that there is “tangible sense of long-term opportunity.” The poll also saw three fifths of respondents express a belief that the UK will retain its status as an international financial hub, despite tax-related pressures on investors.

Rachel Reeves is reportedly considering a U-turn on the decision to charge inheritance tax on the global assets of non-doms. This comes amid concern over an exodus of wealthy individuals. The Chancellor, who confirmed that she would scrap the non-dom tax status in last October’s Budget, is said to be considering tweaking a rule that makes the worldwide assets of all UK residents subject to IHT at 40%, even if they are placed in trusts. The non-dom regime, which allowed wealthy foreigners to shelter their worldwide assets from British taxes, was replaced by a system that requires those who have lived in the UK for longer than four years to pay income and capital gains taxes on their global earnings. Under the new system, their worldwide assets eventually become subject to a 40% IHT. Analysis of Companies House records points to an increase in business leaders moving out of the UK, with more than 4,400 directors having left the country in the past year. Departures in April were 75% higher than in the same month last year, with the finance, insurance and property sectors seeing the highest rate of exits. According to recent research, four in ten non-doms are actively considering leaving the UK for somewhere with a more favourable tax regime.

Experts have advised that savers can significantly reduce their tax liabilities by adopting more efficient withdrawal strategies from their pension pots. With data showing that some individuals paid over £98,000 in tax on pension pots averaging £250,000, analysts suggest that by “crystallising” pension pots, savers can ensure that 25% of each withdrawal remains tax-free. While Mike Ambery from Standard Life has highlighted the benefits of staggered withdrawals, Helen Morrissey from Hargreaves Lansdown says diversifying income sources, such as using ISAs, can further minimise tax bills.

Nearly 1.2m savers are at risk of incurring a tax bill as their accounts mature this year. Basic-rate (20%) taxpayers can earn up to £1,000 in savings interest annually before tax applies, while higher-rate (40%) taxpayers have a £500 allowance. Additional rate taxpayers (45%) receive no allowance. Andrew Wright, head of savings at Paragon Bank, says: “Many savers will have had a great return on their savings but could ultimately breach their personal tax allowance as a result.” With 1.7m one-year fixed-term adult non-ISA savings accounts maturing – with these worth £70.5bn – savers are urged to review their accounts and consider tax-free options like ISAs to maximise their savings.

Over 1m workers in the UK are expected to resign by 2026 due to burnout and health issues, according to a report by the Work Foundation. The analysis highlights that 6% of the workforce plans to leave their jobs by June 2026, with younger workers aged 16 to 24 being particularly affected. The report calls for a redesign of jobs, advocating for flexible working arrangements and improved health benefits to address the declining mental health of employees. Ben Harrison, director of the foundation, warned that without additional support, “we could see a new generation scarred by unemployment and economic inactivity.” A Government spokesman said: “We are determined to create a welfare system that supports people into work and out of poverty – backed by £1bn to help sick or disabled people find good, secure jobs.”

The UK government has announced a £16m investment to enhance the country’s cybersecurity industry, following recent high-profile attacks on major retailers including Marks & Spencer and the Co-op. The funding, part of the cyber growth action plan, aims to transform the £13.2bn sector into a cornerstone of economic resilience. Cybersecurity minister Feryal Clark clarified: “Cybersecurity is essential to our economic strength and national resilience.” The investment will support initiatives including ‘cyberASAP’ and ‘cyber runway’, aiming to create 25 new companies by 2030 and attract an additional £30m in external capital. The government has also commissioned an economic review of the sector, led by Professor Simon Shiu, to inform the upcoming national cyber strategy.

WhatsApp is launching three new ad features in a global rollout across the messaging app. The platform will suggest content based on the user’s country, city, and language, as well as their ad interactions and followed channels. Users who have chosen to link their WhatsApp account to Facebook or Instagram will see more personalised ads. The new ad features will appear in a section called Updates, which is a separate tab at the bottom of the app. Businesses with channels will be able to choose to promote ads in the Updates section to attract new followers and charge a subscription to access extra content. WhatsApp will eventually take a 10% commission of that fee, and there may also be extra costs on top of that at the app store level, depending on the size of the business.