Christian May reflects in City AM on why many young people in the UK are thinking of leaving the country. High taxes, soaring house prices, and declining public services mean young people struggle to see the value in staying in the UK. The Resolution Foundation reports that typical real income is expected to rise by only 1% over the next five years. With nearly 30% of 18-30 year olds contemplating leaving the country, May suggests Britain follows Portugal’s example and cuts taxes for the under-35s. He goes on to warn: “Optimism is a vital ingredient for a country’s success. Without it, the future simply becomes something to be endured – or avoided.”

Retailers are warning of potential price increases and job cuts if Rachel Reeves raises taxes in the upcoming Budget. A survey by the British Retail Consortium (BRC) revealed that 66% of bosses expect to raise prices, with 88% citing taxes and regulation as their primary concern. Helen Dickinson, BRC chief executive, said another tax increase would “fan the flames of inflation” and risk job losses. The survey also indicated that 85% of retailers have already raised prices due to increased National Insurance contributions and minimum wage.

Sir Keir Starmer has announced new legislation to combat late payments, which cost the UK economy £11bn annually and lead to 38 business closures daily. The plan empowers the small business commissioner to fine companies that consistently delay payments. Under the new rules, businesses must pay suppliers within 30 days of receiving a valid invoice, with maximum payment terms set at 60 days, reducing to 45 days. Sir Keir said: “Too many hardworking people are being forced to spend precious hours chasing payments instead of doing what they do best.” The PM added: “It’s unfair, it’s exhausting, and it’s holding Britain back. So, our message is clear: it’s time to pay up.”

An increasing number of farmers are looking at whether heritage relief would exempt them from Labour’s upcoming inheritance tax raid. The little-known tax relief can be used to exempt culturally significant buildings and artwork as well as areas with “outstanding natural beauty and spectacular views.” Henry Fea, a partner at Charles Russell Speechlys, said: “Conditional exemption is undoubtedly on people’s radars. We have been discussing it in meetings with clients and people have raised it with us.” The exemption is technically a deferral of inheritance tax, which can be withdrawn if conditions are broken or the owner decides to sell the land.

Georges Elhedery, CEO of HSBC, has joined a raft of banking leaders to warn against increasing taxes on banks in the upcoming autumn budget. He said that UK banks already face the highest tax rates compared to other sectors, which could hinder investment and economic growth. Elhedery remarked: “Additional taxation on banks does run the risk of eroding our continued investment capacity.” However, he went on to express optimism about the UK’s economic resilience and highlighted the benefits of recent free trade agreements.

New data from HMRC shows the tax office handed back £48.7m in overpaid pension tax between 1 April to 30 June. This comes after HMRC refunded £44m in overpaid tax between January and March. Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “The overpaid pension tax saga continues to drag on.” She added: “These refunds amount to a significant chunk of change.”

Mick Whelan, general secretary of the train drivers union Aslef, is advocating for a wealth tax on those he labels “parasites” who do not contribute fairly to society. He stated: “If we look at the increase in poverty while there has been an increase in wealth for the few, at some point it has to be addressed.”

Ray Dalio, founder of Bridgewater Associates, has warned that the UK is in a “debt doom loop” due to rising taxes and debts. He asserted that the Government’s tax hikes could drive wealthy taxpayers away, worsening the economy. The UK’s national debt is currently £2.9trn and may reach £3trn soon. Dalio noted that the top 10% pay 75% of income taxes, and losing even a small percentage of them could significantly reduce tax revenue. He called for strong leadership to address both financial and social challenges, echoing concerns from the International Monetary Fund and the Office for Budget Responsibility.

Ofgem has initiated a review of energy bill costs to address concerns that rising fixed charges may disproportionately affect low-income households. Chief executive Jonathan Brearley stated that while electricity unit costs could decrease, fixed costs for network upgrades might increase. The review will explore options like “progressive billing,” where wealthier households could pay more. However, shadow energy secretary Claire Coutinho, argues that Ofgem should focus on reducing overall energy costs rather than redistributing them.

PayPal has introduced a new feature allowing users to pay with over 100 cryptocurrencies. The ‘Pay with Crypto’ system converts payments into dollars or stablecoins instantly, protecting merchants from price volatility while dramatically reducing transaction costs. Separately, JPMorgan has partnered with Coinbase to enable customers to fund their wallets using Chase credit cards, starting in fall 2025.

Figures from the Office for National Statistics show the proportion of disposable income not spent, known as the savings ratio, rose to 11.1% in the first quarter of 2024. This is up from 9.3% in the last quarter of 2023 and marks the highest rate since Q3 of 2021. The ONS data also showed real household disposable income rose by 2.5% in the first quarter of 2024 – the biggest increase in two years – but consumer spending barely changed, rising by only 0.2%.