Families are bracing for a significant inheritance tax burden due to rising house prices and upcoming pension tax changes. According to the wealth manager Quilter, over 16,000 estates will exceed £2m by 2030/31, losing tax-free allowances. By comparison, HMRC data shows that 3,620 estates that were liable for inheritance tax in the 2022/23 tax year were worth £2m or more. Currently, estates can pass on £325,000 tax-free, or £500,000 if leaving a home to a relative. However, from April 2027, pensions will also be subject to inheritance tax, increasing potential tax bills. Sean McCann from NFU Mutual said: “Including pensions in the inheritance tax net could mean the loss of the tax-free allowance on the family home,” adding: “Coupled with the potential for an income tax charge on the pension beneficiaries, this will be a triple blow.” Alex Pugh of Saltus commented: “When people see the goalposts moving repeatedly they begin to question whether locking money away for decades is worth the uncertainty.”

Sole traders and landlords are preparing for a £2.18bn compliance cost due to HMRC’s Making Tax Digital (MTD) scheme. Starting this April, sole traders earning over £50,000 must file five tax returns annually, with the threshold dropping to £30,000 in 2027 and £20,000 in 2028. Research from business management platform Tide indicates that the self-employed will spend an average of £753 each to comply, with many expecting to invest 114 extra hours on compliance. George Schmidt, CEO of Tide, said: “The UK’s sole traders are facing a compliance crisis.” Heather Powell, a partner at Blick Rothenberg, commented: “Accountants and tax advisors are already speculating that this filing regime will be followed by a quarterly tax payment regime, mirroring the VAT regime.”

Scottish ministers must implement tax reforms to address financial pressures, according to the Future Economy Scotland (FES) report. The report suggests raising an additional £2.3bn annually through various measures, including increasing income tax rates and replacing inefficient taxes. The report warns that without these changes, Scotland risks harmful spending cuts that would disproportionately affect lower-income households. FES senior economist Hanna Wheatley said: “Most Scots will need to pay a little more tax.”

The UK’s service sector has experienced a decline in profitability for the seventeenth consecutive quarter, according to the Confederation of British Industry (CBI). A weighted balance of -28% of business and professional services firms reported falling profits, while consumer-facing firms fared worse at -49%. Rising costs have put pressure on profit margins, with 43% of firms noting increased costs per person. Charlotte Dendy, economic surveys and data manager at the CBI, said: “Conditions across the service sector remain challenging.”

Chancellor Rachel Reeves has been warned that a significant decline in net migration could adversely affect economic growth and tax revenues. The Institute for Fiscal Studies (IFS) has cautioned that low immigration levels might lead to a shortfall in tax receipts, potentially necessitating tax increases or public spending cuts. Nick Ridpath, a research economist at the IFS, said that if recent trends do continue, the Chancellor’s fiscal rules “could come back into focus” by the time of the Budget. The IFS highlighted that new immigrants contribute positively to tax income, as they are often of working age and less likely to use public services heavily. In November, the Office for Budget Responsibility forecast that net migration would fall from a peak of around 900,000 in 2023 to around 260,000 in 2026 and 2027, before rising back to 340,000 by 2030. However, recent figures put the provisional figure for 2025 at 204,000, considerably below the 290,000 forecast.

Two former heads of the Office for Budget Responsibility (OBR) have condemned past governments for overspending and neglecting long-term fiscal strategies. Sir Robert Chote and Richard Hughes expressed frustration during a session with MPs, noting that chancellors have consistently failed to adhere to fiscal plans. Mr Chote also said that upward revisions in borrowing forecasts reflect government spending choices, while Mr Hughes highlighted hesitation in addressing public finance weaknesses.

Energy bills will decrease by at least 7% in April, saving a typical household £117 annually. Ofgem confirmed that the new price cap will be £1,641, down from £1,758. The reduction stems from cuts to green levies, but increased network costs offset some savings. Only households on fixed tariffs will see the full benefit. Overall, the net saving reflects a combination of lower wholesale costs and increased network charges. Ed Miliband, the Energy Secretary, commented: “I do not think this is job done… we have further to go.”

The Government is launching a taskforce to enhance funding for SMEs. The initiative aims to provide an additional £1bn in lending over five years, addressing the low borrowing rates among small firms. The taskforce will collaborate with banks and Community Development Finance Institutions to improve access to finance, particularly for underserved communities. Blair McDougall, Minister for Small Business, said the initiative will help “unlock unprecedented levels of capital for our start-ups and scale-ups, giving rise to a new generation of entrepreneurs.”

The Financial Conduct Authority (FCA) is proposing measures to improve credit information sharing among lenders in an effort to close gaps in consumers’ credit files, reducing the risks of unaffordable lending and fraud. The City watchdog plans to designate certain credit reference agencies (CRAs), which collect personal financial data, including credit repayment histories. The plans would mean that if a lender shares credit information with one designated consumer CRA, it would be required to share it with them all. Alison Walters, director of consumer finance at the FCA, said: “Access to affordable credit relies on good quality data.” The FCA is running a consultation on the plan until May 1.

Most UK accountancy firms have seen declining margins on compliance services due to automation, according to a report by Ravical. While 63% of firms anticipate compliance will be only marginally profitable or worse in five years, a third of revenue growth currently stems from compliance fees. Joris Van Der Gucht, CEO of Ravical, said: “Accounting firms are at a crossroads.” Nearly 40% of firms cite technology as reducing billable hours, and only 17% have automated advisory services, highlighting an infrastructure gap in the sector. It is noted that almost 9 in 10 accountancy firms were approached by private equity firms last year, with data showing that there has been a surge in deal activity in recent years.