Small businesses are facing an “unprecedented cost crunch” as April approaches, with over a third planning to cut output or shut down. The Federation of Small Businesses (FSB) warned that rising energy costs, increased business rates, and higher employment expenses could push firms to the brink. Giovanni Contratti from Iwoca stated: “Small businesses are clearly feeling the pressure of rising costs.” Meanwhile, a recent report by the House of Commons Business and Trade Committee found that SMEs are owed £112bn in unpaid invoices.

The latest CBI industrial trends survey indicates that Britain’s manufacturing sector continues to decline. In the three months to February, production fell by a weighted balance of 14%. Output volumes decreased in 13 of 17 subsectors, with metal products, food and drink, and tobacco particularly affected. Cameron Martin, CBI’s senior economist, noted: “Many firms continue to report customers holding back amid low confidence and elevated cost pressures.” The sector faces challenges from high energy costs and an unpredictable trade environment, prompting calls for government action to restore confidence.

Labour’s recent policies, including a National Insurance hike, have negatively impacted jobs, inflation, and investment in the UK, writes Alex Brummer in the Mail. The Square Mile, which contributed £110.2bn or 12.3% of the UK’s tax income in 2024-25, faces threats from overseas takeovers, he says, with the recent £9.9bn acquisition of Schroders by Nuveen raising concerns about the loss of expertise and revenue. Brummer fears that “Government neglect of developments in the City of London could sow the destruction of Britain’s highest tax-generating sector.”

The City of London approved a record half a million square metres of office space last year, equivalent to ten ‘Gherkins,’ as its skyline continues to evolve despite widespread remote working. Major projects include the redesigned 1 Undershaft, set to match The Shard in height, and two developments on Gracechurch Street. Rents and demand for Grade A space remain strong, with vacancy rates below 1%. The skyscraper boom is concentrated in the City’s Eastern cluster, though some developments, such as the 19-storey addition to Liverpool Street station, have sparked criticism from heritage groups and architecture commentators. City officials say the flurry of approvals reflects strong investor confidence and ongoing demand for sustainable office space.

Lord Mandelson’s lobbying firm, Global Counsel, is shutting up shop after an exodus of clients following revelations about the Labour grandee’s close ties to Epstein. Global Counsel was started by Lord Mandelson and Benjamin Wegg-Prosser in 2010 – Mr Wegg-Prosser stepped down as chief executive last week. The company employs about 100 people across London, Berlin, Brussels, Doha and Singapore and could go into administration as soon as today.

Accenture has started monitoring AI tool usage among staff to influence leadership promotions. The Dublin-based firm informed senior managers that “regular adoption” of AI is now a requirement for advancement.

Nick Thomas-Symonds, the UK minister for EU relations, has expressed concerns over new EU legislation prioritising European-made products. He warned that this could disrupt supply chains, increase costs, and create unnecessary trade barriers between the UK and EU. Speaking at an economic event in Madrid, he said: “If you had very strict preference requirements, you would risk impacting our deeply integrated supply chains.” Thomas-Symonds highlighted the need for cooperation to tackle shared challenges, pointing out that the UK is a significant investor in Spain. The EU’s “Buy European” policy aims to enhance local production amid geopolitical uncertainties.

HMRC has alerted taxpayers earning over £50,000 from property or self-employment about significant changes to tax filing. Starting in the 2024/25 tax year, these individuals must register for Making Tax Digital (MTD) before April 6, 2026. Lindsey Wicks, ICAEW Senior Technical Manager, said: “MTD for income tax represents the most significant change to income tax reporting for taxpayers and agents for almost three decades.” Taxpayers must keep digital records and submit quarterly updates using approved software. Failure to sign up could lead to complications.

The Institute for Fiscal Studies (IFS) has slammed the Chancellor’s economic policy, likening her approach to a driver fixated on the speedometer, ignoring other critical factors. Economist Ben Zaranko said: “This framework is achieving neither sustainable public finances nor credibility with financial markets.” The IFS called for a radical reform of the fiscal framework, suggesting a shift towards broader fiscal objectives rather than rigid rules. “The current set-up all but guarantees policy adjustments in response to small changes in the forecast…macroeconomic volatility is mainlined into policy volatility, which adds unnecessarily to economic uncertainty,” the IFS said.