The Centre for the Analysis of Taxation (CenTax) warns that Labour’s new inheritance tax policy could harm working farmers more than wealthy landowners. The policy, which imposes inheritance tax on farms valued over £1m, may lead to family farms being split up. The report indicates that 67% of farmer-owners and 45% of mixed tenure farmers will be affected. CenTax suggests two options for better targeting the reforms, including extending tax relief for estates up to £5m. Mo Metcalf-Fisher from the Countryside Alliance stated: “The evidence points to families and their farms being badly impacted by the policy as it stands.” Elsewhere, the National Farmers’ Union points out that most medium-sized working farms would not be protected by a ten-year payment window because they “don’t earn enough money to pay the potential inheritance tax bill without selling some of their land or business, which in turn makes the farm business unviable.” NFU president Tom Bradshaw welcomed the report and called for a meeting with Rachel Reeves to discuss the changes.

Rachel Reeves is expected to raise taxes in the upcoming autumn Budget due to higher borrowing and weak growth. Forecasters predict the Chancellor may need to increase taxes by £15bn to £25bn to meet financial rules. Ruth Gregory, deputy chief UK economist at Capital Economics, noted that smaller tax adjustments could be made if the figures are lower. However, the National Institute of Economic and Social Research suggests a potential need for over £40bn in tax increases, possibly affecting income tax rates. Stephen Millard at the NIESR said: “She will likely leave the freeze on allowances and tax bands in place.”

Concerns over potential changes to inheritance tax (IHT) are causing uncertainty in Britain’s housing market, according to Savills. The estate agent’s finance chief, Simon Shaw, noted that a lack of information from the Government is leading prospective buyers to delay purchases. The Treasury is reportedly considering IHT reforms to address a £20bn to £70bn gap in public finances. Shaw said: “It creates a level of uncertainty in the residential market particularly.” Savills reported an 8% decline in housing sales revenue, attributing this to tax-related fears and Budget uncertainty.

Britain’s dairy industry is in jeopardy as a survey reveals 13% of dairy farmers plan to exit within a year due to rising costs and labour shortages. The Agriculture and Horticulture Development Board estimates that over 900 of the 7,000 dairy producers in the UK could cease operations. Paul Tompkins from the National Farmers Union attributed the crisis to government policies, including increased National Insurance contributions and proposed inheritance tax changes. Bas Padberg of Arla Foods UK warned that these issues will impact food prices and availability, stating: “The effect of this is ultimately going to be seen in the price and availability of products on the supermarket shelves.”

Baton Berisha, CEO of Rare Restaurants, warned that over 84,000 jobs have been lost in the UK hospitality sector since the National Insurance Contributions (NICs) increase in April 2025. He urged the Government to restore NICs to previous levels and reduce VAT to 15%, exclaiming: “Your taxes are curtailing growth.” The British Chambers of Commerce echoed his concerns, stating that businesses cannot bear further tax burdens in the upcoming autumn Budget.

Following the increase in employer National Insurance contributions from 13.8% to 15% in April, small businesses are increasingly hiring virtual staff and contractors instead of full-time employees. The Office for National Statistics reported a decline of 169,000 payrolled employees from June 2024 to June 2025. Debbie Porter, managing director of Destination Digital Marketing, stated: “The risk and the cost of investing in a younger or more inexperienced person is now too much.” Concerns grow that further tax increases may occur in the Autumn Statement, potentially impacting struggling businesses further.

UK economic growth slowed to 0.3% in the three months to June, according to the Office for National Statistics (ONS). This figure, while lower than the previous quarter’s 0.7%, exceeded economists’ expectations of 0.1%. Chancellor Rachel Reeves described the results as “positive,” highlighting a strong start to the year. Growth was primarily driven by the services sector, including computer programming and health services. However, rising costs for households and employers, alongside a cost of living crisis, have created challenges. Reeves noted: “There is more to do to deliver an economy that works for working people.”

UK exports to the United States fell to a three-year low in June, declining by 15% or £700m. The drop follows President Trump’s tariffs, which began in April. The UK’s overall trade deficit widened to £9.2bn in the second quarter, driven by rising imports. William Bain, head of trade policy at the British Chambers of Commerce, said: “Implementation of the UK’s trade deal with the US in full is now needed to improve prospects.” Meanwhile, Anna Titareva from UBS warned that rising protectionism could hinder economic growth in the coming years.

The Financial Conduct Authority reported over 225,000 individuals identified as money mules in the past year, marking a 23% increase and illustrating their pivotal role in enabling fraud.

City AM’s Maria Ward-Brennan looks at the state of the Competition and Markets Authority (CMA) after Labour forced out former chair Marcus Bokkerink and replaced him with former Amazon executive Doug Gurr. Jessica Radke, senior counsel at Linklaters, says there appears to be fewer open investigations and they are delivering outcomes more quickly than before. Sharon Malhi, partner at Freshfields, predicts more targeted and strategic antitrust and M&A investigations while Neil Baylis, partner at CMS, observes lighter touch regulation from the CMA and expects the watchdog to prioritise work on digital markets and consumer enforcement. Meanwhlie, the City is watching closely trying to figure out the CMA’s future agenda.

Most employers believe university degrees are not essential for entry-level positions, according to a survey by Indeed. The poll revealed that 68% of recruiters prioritise attitude over A-levels. Some 81% of young people, however, believe their qualifications will aid their career success. Despite a challenging job market, 70% of school leavers feel confident about entering the workforce. Separately, data by Adzuna has suggested that entry-level jobs had fallen by a third since the launch of ChatGPT.