Proposals from the Treasury to limit tax-free gifts from parents to children have raised concerns among tax experts, who warn that such changes could make the UK less appealing for wealthy individuals. Dan Neidle, founder of Tax Policy Associates, said an IHT raid might seem like a good idea in theory, but “there is a big risk that Labour suffers a death by a thousand cuts on the rich who have the ability to leave the UK.” He explains: “You would be saying to non-doms that not only do you have to pay inheritance tax – as announced in Reeves’s last budget – but you can’t even gift your way out of it. It would make the UK a very dangerous place for a wealthy person to be.” Elsewhere, David Sturrock, of the Institute for Fiscal Studies, said that Rachel Reeves was unlikely to be able to raise significant sums from the change without hitting relatively small gifts made by middle earners. The position was echoed by Jonathan Portes, a former Treasury adviser and professor of economics and public policy at King’s College London, who said the changes would “certainly not raise tens of billions of pounds, or anything like it”.

Chancellor Rachel Reeves has been urged by 1,500 private business leaders, surveyed by KPMG, to reduce taxes and regulations in her upcoming Autumn Budget. They argue that recent tax increases, including National Insurance hikes, hinder growth. The leaders want a focus on higher wages, lower costs, and support for small businesses. Key priorities include adopting new technology and improving profitability through tax measures. Euan West, head of KPMG private enterprise, noted a cautious optimism among businesses, with 93.2% expressing confidence in future growth despite ongoing economic challenges.

Hopes for a Bank of England interest rate cut this autumn have diminished following disappointing employment data. The Office for National Statistics reported that unemployment remained at 4.7%, the highest since 2021, with payroll numbers declining for six consecutive months. Matt Swannell, chief economic advisor to the EY ITEM Club, said: “No change to interest rates at the MPC’s September meeting looks almost certain.” Inflation concerns persist, with wage growth at 5%, complicating the decision for the Monetary Policy Committee.

Scotland’s Finance Secretary Shona Robison has defended the country’s finances as “sustainable” despite new figures showing a £26.2bn deficit in 2024-25, equal to 11.6% of GDP — more than double the UK’s 5.1% rate. The Government Expenditure and Revenue Scotland report said spending grew faster than revenue, with the gap partly due to falling North Sea income and slower revenue growth compared to the UK. Revenue rose 1.5% to £91.4bn, while spending increased from £111.4bn to £117.6bn.

Angela Rayner, the Deputy Prime Minister and four other Cabinet ministers, are advocating for a maximum working temperature. During the 2022 heatwave, Rayner urged the previous government for guidance on safe indoor temperatures and flexible working. Unions like Unite and GMB are pushing for a legal limit of 27°C for manual jobs. Despite the ongoing heatwave in 2025, the Government has no plans to implement a maximum temperature, although the Health and Safety Executive will advise on heat stress assessments. Rayner stated: “We need urgent guidance for safe indoor working temperatures.”

PwC UK has intensified its monitoring of employee office attendance through key card usage and WiFi connections. The firm introduced a “traffic-light” system to flag attendance levels, marking those below 60% as “amber” and below 40% as “red.” The policy, effective since April, aims to ensure staff spend at least three days a week in the office or with clients. However, concerns have emerged regarding the transparency of the surveillance, with reports alleging that those who breach the policy can face formal sanctions, with their performance evaluations and bonuses potentially affected.

Financial News reports that the Financial Reporting Council is offering cash to staff to support them with a longer commute to work. The audit watchdog has moved from Moorgate in the City of London to Canary Wharf in Docklands. “It’s a temporary scheme to help people adjust,” said one FRC source. “It’s targeted support on a case-by-case basis, as not everyone will have the same circumstances. It’s a small sum to help people get acquainted with their new commute.”

Chancellor Rachel Reeves and Bank of England Governor Andrew Bailey are at odds over stablecoin regulation, jeopardising the UK’s ambitions in the £200bn market. Samuel Norman in City AM points out that Reeves hopes to advance blockchain technology, but Bailey’s “prescriptive” rules could hinder progress. UK Finance has called on the Bank to “publicly walk back” its damaging policy positions and end its “bias towards incumbents and legacy systems”.

The Treasury is contemplating changes to bank ringfencing, a measure designed to protect deposit-taking operations, in the name of economic growth. But an editorial in the Guardian warns that weakening ringfencing could lead to higher risks and costs for UK lending. The paper also cites Andrew Bailey, the governor of the Bank of England, who said: “Removing the ringfence would most likely have a negative effect on UK lending, both in terms of cost and quantities.”

The Competition and Markets Authority (CMA) is poised to impose ‘strategic market status’ on Google’s search product. Matthew Lesh, country manager at Freshwater Strategy, warns that this “heavy-handed” approach could hinder the UK’s ability to become an “AI maker.” He notes that the CMA’s findings are based on outdated market conditions, failing to account for the rapid evolution of cloud services and AI capabilities. Lesh states: “If the Government fails to reform these powers, the CMA will be free to overreach in fast-moving sectors.”

HM Revenue and Customs (HMRC) is launching a digital campaign to prevent self-assessment taxpayers from incorrectly claiming tax relief on personal expenses. The initiative follows a trial that generated over £27m in tax revenue and revealed significant reporting inaccuracies. The Institute of Chartered Accountants in England and Wales (ICAEW) noted that taxpayers must ensure expenses are “wholly and exclusively” for business purposes to qualify for deductions.