Wealthy individuals in the UK are losing confidence in the economy, according to a survey by Saltus, with overall sentiment dropping from 66% to 59% in six months. High-net-worth individuals (HNWIs) cite tax rises and high interest rates as key concerns. Nearly 50% of respondents said they pay too much tax. One in five cited the higher rates of income tax – which come amid a freeze in thresholds – as the least popular of recent tax rises. This was closely followed by inheritance tax, which almost 30% of the HNWIs quizzed said should be abolished. The poll suggests that changes set out in the Budget have intensified worries about the tax system. Saltus found that 25% of respondents are considering leaving the UK for tax havens. Henrietta Grimston, a chartered financial planner at Saltus, has noted a shift in focus towards inheritance tax planning, “with trusts often being a key consideration.”

The Mail looks ahead to significant changes to income reporting that are set to come into force under Making Tax Digital for Income Tax. The new regime, which will affect nearly 3m taxpayers, will require individuals earning over £50,000 from self-employment or property to report earnings quarterly. Tax experts warn many are unaware of these changes, which could lead to confusion and fines. Elsa Littlewood of BDO says: “Many landlords and the self-employed may be blissfully unaware that they are in scope for Making Tax Digital and will need to act now to comply with the new rules,” adding: “This is a big change for taxpayers, and the transition is likely to be difficult for some.” Blick Rothenberg, meanwhile, has highlighted the impact on those who put their property income or sole trader earnings through their personal bank accounts and collate everything at the end of each tax year.

ABTA, the trade association for UK tour operators, has voiced strong opposition to the proposed overnight visitor levy in England. Luke Petherbridge, ABTA’s director of public affairs, said that the tourism sector, worth over £97bn annually, is already burdened by rising costs and taxes. He warned that additional charges could deter visitors and harm local economies. The Business Travel Association also expressed concerns, arguing that the levy should not apply to business travel. World Travel & Tourism Council research indicates that introducing such a tax could lead to a £14bn loss for the UK economy and significant job losses.

Huw Pill, the Bank of England’s chief economist, has linked the Labour Government’s tax increases – including a hike in employer National Insurance – and a higher minimum wage to a rise in youth unemployment, which has risen above 16%. Mr Pill told the Treasury Select Committee that the impact of these policies has been “particularly acute” for young people and expressed concern about the long-term impact on their job prospects and mental health. Official data shows that youth unemployment has climbed to an 11-year high of 16.1%, compared to a rate of 5.2% for the wider workforce.

Retail employment has declined at the fastest pace in nearly three years, with job losses in the year to February reaching their steepest level since May 2023, according to the Confederation of British Industry (CBI). Sales volumes also dropped sharply amid persistently weak demand, continuing a downturn that began in mid-2023. Wet weather reduced footfall, while online sales grew but failed to offset overall losses. Businesses cited rising costs and policy pressures, including higher employer national insurance contributions, minimum wage increases and regulatory changes, as factors worsening conditions. Retailers expect further job cuts and deteriorating trading conditions in the coming months, with investment plans also being scaled back.

Britain’s AI sector has gained momentum, raising over £20bn in private capital in the past year, according to the Startup Coalition’s latest AI index. The combined valuation of British AI firms exceeds £45bn, with business services attracting £8.3bn. Despite this growth, confidence in AI remains uneven, with 38% of UK workers citing a lack of trust as a barrier to adoption. The poll saw 29% say they felt they had no need for such tools, while 19% said they could not see the benefits. While 7% respondents cited affordability issues, 4% said they lacked access. It is noted that a recent report from the Tony Blair Institute for Global Change saw 38% of workers highlight a lack of trust as a barrier to adoption. Four in 10 (39%) said they saw AI tools as a risk to the economy, compared with 20% who see it as an opportunity.

A group of leading entrepreneurs have launched a campaign called Enterprise Britain, with the business leaders calling for a radical political and cultural reset to improve the investment climate. They have highlighted a “narrow window of opportunity” to reverse the narrative of decline, with polling suggesting that 74% of Britons believe the UK’s global economic position is worsening. The group has proposed a number of reforms, such as easing hiring processes and encouraging pension funds to invest in British firms. In a statement outlining their position, the entrepreneurs said: “Our task is urgent. We have a narrow window of opportunity in which Britain can not only regain its place in the world, but shape it.” Ovo Energy founder Stephen Fitzpatrick said: “We’re talking about policies that would make a difference for the companies that will be globally relevant in the next 10 years.”

With Deloitte having announced plans to establish a new Europe, Middle East, and Africa (EMEA) unit in an effort to enhance its cross-border capabilities and innovation, City AM‘s Maria Ward-Brennan says the move follows similar strategies by other Big Four firms, with EY looking to align regional units more closely and KPMG UK merging with KPMG Switzerland to create a £3.6bn firm. Martin White, principal consultant at Source Global Research, noted that firms want to better serve multinational clients, adding that greater regional integration can make governance simpler “and allow senior management to make changes more quickly and in a more consistent way.” However, James Ransome, head of consulting at Patrick Morgan, cautioned that integration can lead to short-term challenges. Ms Ward-Brennan also highlights that the Big Four are currently reconsidering their graduate programme structures – both in regard to headcount and intake numbers but also in how the programmes operate – with AI increasingly able to take on tasks traditionally carried out by junior staff.

The Financial Conduct Authority (FCA) is urging the Government to engage in discussions about the nation’s risk appetite. Sarah Pritchard, the FCA’s deputy chief executive, emphasised the importance of not making decisions in isolation, saying: “We think it’s really important that we don’t take decisions around UK national risk appetite alone.” She also stressed the need for regulatory choices to be “informed by a political accountability system,” adding that “then in the future if things go wrong, we have the confidence as the UK to know that we made active decisions around risk.” Noting that it is an “ongoing conversation,” Ms Pritchard added: “It can be difficult at times to put metrics around what is meant, but we are really trying to prompt it.” The City watchdog has faced pressure to reduce regulations that hinder economic growth and chief executive Nikhil Rathi has called on ministers to outline “metrics on tolerable failure” to help inform decisions on regulation.

The UK has not significantly diverged from EU regulations since Brexit, according to a report by UK in a Changing Europe (UKICE). The report highlights that the UK has maintained alignment with EU standards on environmental, product, and labour issues. UKICE has attributed the lack of divergence to a desire to avoid imposing extra administrative costs on businesses, while also noting that there has only been limited political support for scrapping regulations on employment or environmental law. The report also highlights “passive divergence,” where the UK has opted against adopting changes made by the EU. It is noted that the Government has committed to pursuing a “reset” with the EU, with Prime Minister Keir Starmer having recently said: “If it’s in our national interest to have even closer alignment with the single market, then we should consider that.”

Reform MP Danny Kruger has called for policies encouraging higher birth rates, including household-based tax returns.