Economists are warning that a proposed mansion tax on high-value properties could harm the housing market. Paul Johnson, former director of the Institute for Fiscal Studies, says that the tax could “gum up the housing market” and lead to a loss of revenue for the Treasury. The plan reportedly being considered by the Chancellor would tax gains on properties over £1.5m, impacting around 120,000 homeowners. Critics argue this could deter sales and exacerbate the exodus of wealthy individuals from the UK. Mr Johnson argues that there is a need for a comprehensive overhaul of housing taxation rather than piecemeal changes. Meanwhile, plans for a national property tax on the sale of homes worth more than £500,000 have also drawn criticism. James Browne, senior economic policy adviser at the Tony Blair Institute, said: “While replacing stamp duty with a new annual property levy on homes worth more than £500,000 is economically sensible, it would be politically challenging.”

The Daily Telegraph’s Allister Heath argues that a “mansion tax” would be catastrophic, branding it a “war on homeowners.” Mr Heath argues that measures like an annual property levy or capital gains tax on primary residences would destroy property rights, force pensioners and the cash-poor to sell, deter home improvements, and collapse the housing market. He adds that the policy is the most extreme attack on private wealth in modern Britain. Separately, Stephen Glover writes in the Daily Mail that imposing capital gains tax on primary residences would be a “monumental betrayal,” breaking Keir Starmer’s election pledge and destroying public trust. He claims it would stall the housing market, raise little revenue, and inevitably extend to more homes as thresholds fall. Elsewhere, Kiran Stacey contends in the Guardian that with the UK already taxing property more heavily than most OECD countries, further increases could damage competitiveness while offering limited long-term benefit.

Chancellor Rachel Reeves’ push for rapid tax reforms ahead of the Autumn Budget has raised concerns among senior tax advisers. Helen Thornley from the Association of Taxation Technicians has cautioned that changing certain taxes could lead to unintended consequences, while James Quarmby, a tax lawyer at Stephenson Harwood, has emphasised the need for gradual and well-designed reforms to avoid confusion among investors. The Chartered Institute of Taxation’s Ellen Milner says that interference with the overall system through the creation of new levies and adjustments on rules had made taxes more difficult to understand.

UK manufacturers are increasingly looking to Australia and Canada for growth, as US tariffs create uncertainty. A YouGov survey of over 2,000 UK businesses, commissioned by Manchester Airports Group and the Growing Together Alliance, revealed a drop in confidence among manufacturers. Sales growth in the US fell from 29% to 16% and among manufacturers that expected to enter a new market in this quarter, the US went from being first choice in the quarter before to fifth place. Meanwhile, over 20% of manufacturers now aim to increase sales in Australia, up from 17%. Canada also gained popularity, with 15% of firms targeting it for expansion. Ken O’Toole, CEO of Manchester Airports Group, said: “British exporters are navigating global trade turbulence well.”

Chancellor Rachel Reeves is considering reducing the tax-free pension lump sum, a move that could pull in more than £2bn a year for the Treasury. This proposal is part of a broader strategy to address a £50bn public finance shortfall. Currently, pensioners can withdraw 25% of their pot tax-free, capped at £268,000. John Havard, a consultant at Blick Rothenberg, said that while Ms Reeves “has taken all her easy choices for increasing tax revenue off the table by sticking with her manifesto promises … one option that remains open to her is targeting pension tax reliefs.” Andrew Wishart, an economist at Berenberg Bank, comments: “If she were to go ahead with a raid on pensions, Ms Reeves could also make a argument to slashing the tax-free allowance.”

Over the past year, major banks have significantly reduced their commitments to environmental, social, and governance (ESG) policies, with banks like Goldman Sachs and JP Morgan exiting the Net Zero Banking Alliance. Barclays and HSBC have also abandoned their climate goals, citing a lack of support for their transition. The Prudential Regulation Authority has reported challenges in implementing climate scenario analysis, complicating banks’ ability to assess climate-related risks. Meanwhile, Scott Lane, CEO of Speeki, noted that many initiatives were poorly conceived and failed to deliver value.

Big retailers, including Tesco, Sainsbury’s, John Lewis, and Boots, have warned that the Government’s tax plans could jeopardise living standards. They argue that proposed tax increases and rising business rates may lead to a 6% rise in food prices. The British Retail Consortium says that additional costs from National Insurance and minimum wage hikes have already added £7bn to retailers’ expenses. Helen Dickinson, CEO of the British Retail Consortium, has emphasised the need for stable prices and sustainable employment, urging the Chancellor to reduce the retail rates burden.

Office for National Statistics (ONS) data shows that inflation hit 3.8% in July, with this putting price growth at the highest level since January 2024. The figure from July is up from the 3.6% growth recorded in the year to June and far exceeds the Bank of England’s target of 2%. Economists polled by Bloomberg had forecast that inflation would hit 3.7% in the year to July. The Bank expects inflation to peak at 4% in September. Reflecting on the ONS data, Chancellor Rachel Reeves said the Government has “taken the decisions needed to stabilise the public finances, and we’re a long way from the double-digit inflation we saw under the previous government.” Shadow Chancellor Mel Stride commented: “Labour’s choices to tax jobs and ramp up borrowing are pushing up costs and stoking inflation.” Suren Thiru, economics director at ICAEW, said: “July’s outturn probably extinguishes hope of a September interest rate cut.” Thomas Pugh, chief economist at RSM UK, commented: “There is a genuine risk of some higher inflation becoming baked into the system.” Meanwhile, Eurostat data shows that eurozone inflation held at 2% in July. This means the gap between UK and eurozone inflation is now at its widest since September 2023.

The Bank of England is unlikely to cut interest rates any further in 2025 after inflation came in higher than economists had forecast. Markets had priced in a 50% chance of an interest rate cut being made in November but with inflation hitting 3.8% in the year to July, investors now believe it is more likely that interest rates will be held at 4%. Deutsche Bank’s Sanjary Raja suggested that a weakened jobs market and high inflation may mean the Bank’s Monetary Policy Committee opts to “look for more patience” as it decides on whether to alter interest rates. Meanwhile Hargreaves Lansdown’s Susannah Streeter said that another interest rate cut “is not likely in the next few months,” adding that it is “touch and go for December, with a reduction not fully priced in by financial markets until the spring.” Pantheon Macroeconomics’ Elliott Jordan-Doak commented: “The big picture remains that inflation is set to stay miles above target for the foreseeable future.”

Stuart Downey, a partner at TWM Solicitors, has warned that families of investors who have crypto assets could lose funds that they would otherwise inherit from a deceased investor. He said: “The main problem is that crypto assets are decentralised and often under a pseudonym,” with it noted that crypto is usually further secured by passwords, private keys, or seed phrases. Mr Downey says it is “the locating and accessing of the assets that needs a solution.” The law firm advises investors to draft their wills to ensure the beneficiaries understand the value of digital assets and how to access them. Data from the Financial Conduct Authority shows that 7m people – 12% of UK adults – hold cryptocurrency.