Small businesses in the UK lose approximately 379m hours annually and spend £36bn on regulatory compliance, according to new research by the Federation of Small Businesses (FSB). Business Secretary Peter Kyle has pledged to reduce the regulatory burden by 25% by 2030. However, only 10% of small business owners find it easy to resolve regulatory issues. Tina McKenzie, FSB’s policy chair, said: “Think of all the time and money that could be invested in new products or processes, or expansion, rather than being used up trying to work out how an obscure or confusing rule applies to a particular small firm’s situation.”

The Office for National Statistics reported that the UK economy experienced zero growth in January, following a modest 0.1% increase in the previous quarter. Economists had anticipated a 0.2% rise. Liz McKeown, ONS director of economic statistics, noted that the “overall picture remains subdued.” Yael Selfin, chief economist at KPMG UK, said growth was “likely to remain elusive,” adding: “The UK economy started the year on the back foot and activity is expected to weaken further amid sharply rising energy prices.”

The Government will reportedly announce a £50m support package today for the poorest households that use heating oil. According to the FT, those households will mostly be in Northern Ireland, Energy Secretary Ed Miliband said on Sunday that Labour would prioritise tackling the cost of living crisis. “We are going to stand by people in this crisis,” he said. Miliband also pledged to roll out plug-in solar panels for homes and improve energy security by rapidly approving renewable and nuclear energy projects.

High-net-worth UK nationals are fleeing the UAE for countries like Ireland and France to avoid tax liabilities in the UK as the war on Iran continues. With the financial year ending soon, many have already used their allowed days in the UK without incurring tax. Nimesh Shah, CEO of Blick Rothenberg, noted a surge in inquiries from those wanting to leave the UAE but cautioned against relying on HMRC’s exceptional circumstances provisions. He said: “In HMRC’s mind they’ve chosen to go there to not pay tax in the UK. They’re not going to give you a green light to spend more time here and not pay tax.” David Little from Evelyn Partners warned that even a few extra days in the UK could trigger tax liabilities on worldwide income and past asset sales.

The UK Government faces pressure to abolish inheritance tax (IHT) due to concerns it hampers investment and drives entrepreneurs abroad. A report from the Institute of Economic Affairs (IEA) reveals that nearly half of OECD countries do not impose taxes on bequests to adult children, positioning the UK as a high-tax outlier. The IHT, set at 40% on estates exceeding £325,000, is described as a “distortionary” burden on the economy. “A nation serious about growth and about giving families the freedom to build something lasting, would not levy a 40% charge on wealth that has already been taxed,” Lord Frost, director general of the IEA, said.

Public sector workers are increasingly entering the 45% tax bracket due to a reduction in the top-rate earnings threshold from £150,000 to £125,140 in 2023. According to Quilter, the number of police officers, teachers, civil servants, and armed forces members paying this rate rose from 326 in 2019-20 to 3,713 in 2024-25. The civil service saw a significant increase, with 1,055 workers now in the top bracket. Isaac Delestre from the Institute for Fiscal Studies stated: “Allowing thresholds to be eroded by inflation isn’t a great way to make policy.” The tax thresholds remain frozen until 2031.

Irish citizens holding US shares, property or other “US situs” assets could face double taxation of up to 40% when those assets are inherited, according to tax advisers. Under US law, estate tax may apply when a non-US citizen spouse inherits American assets, while Irish inheritance rules provide no corresponding tax liability to offset the charge. This can leave surviving spouses facing large bills within nine months of death, sometimes forcing them to sell assets quickly. Advisers say the issue increasingly affects Irish employees with shares in US multinationals. The Irish Tax Institute has called for the US-Ireland inheritance tax framework to be updated to address the problem.

Dan Finley, the CEO of Debenhams, has urged the UK Government to expedite the closure of the ‘de minimis’ tax loophole, which allows foreign firms like Shein and Temu to ship parcels worth up to £135 without tax. Finley said: “The decision to close the de minimis loophole was a welcome step, but we would have preferred a much shorter timeline.” He highlighted that delaying reforms until 2029 creates an uneven market for UK retailers. Other industry leaders, including George Weston of Primark, echoed these concerns, advocating for quicker action to protect British businesses.

The UK Government plans to introduce incentives for employers to hire young people as part of reforms to address youth unemployment. Welfare Secretary Pat McFadden will announce measures aimed at getting nearly 1m jobless young people into work. The reforms will include changes to the apprenticeship levy, which currently favours hiring graduates. A government source said: “These are serious measures to tackle the Neets crisis.” Additionally, former Labour Health Secretary Alan Milburn is investigating the issue, warning of a potential “lost generation.” In an interview with the Guardian, Milburn said Labour would look at giving local authorities and mayors greater powers to tackle the youth unemployment crisis.

Labour has reduced the powers of regulators to investigate union corruption through the Employment Rights Act. Critics argue the change creates a permissive environment for unions, particularly benefiting Labour’s major donors like Unite, which faces scrutiny over financial irregularities. Shadow Business and Trade Secretary Andrew Griffith commented: “Labour’s Unemployment Act is a union charter riddled with measures that weaken or remove safeguards.” He pointed to concerns about union fund management, especially regarding a £112m hotel project. A government spokesperson claimed the Certification Officer can still investigate unions’ financial affairs.

The hospitality and tourism sectors face a significant challenge, with 87% of workers leaving the industry after quitting their jobs, according to Indeed. Retail staff also show a high exit rate of 82%. Frequent rehiring increases costs and pressures on businesses, already struggling with minimum wage hikes and employment rights reforms. Jack Kennedy, senior economist at Indeed, said: “The Government equalising the minimum wage rates of pay is a particular concern given the timing.” The retail sector has lost 250,000 jobs in five years, while the cost of hiring an entry-level worker has risen by 10% in the last year.

According to a recent survey by Berry Recruitment, UK workers value guaranteed hours over diversity, equality, and inclusion (DEI) initiatives. The survey, which included 444 respondents, revealed that salary remains the primary factor in job applications. When deciding whether to apply for a job, the most important things are pay and work-life balance. DEI and benefits and perks are of very low importance. The findings indicate that predictability is now a key factor for job satisfaction.

The incoming president of the UK-US Digital Assets Alliance, Lord Kulveer Ranger, writes in City AM on the importance of collaboration between the UK and the US on drawing up regulation for digital assets. The APPG on Digital Markets and Digital Money has been engaging with industry, academics and regulators to explore how these technologies could reshape financial markets, Lord Kulveer explains. He argues for a cross-border regulatory sandbox and stronger engagement between legislators on both sides of the Atlantic. The stakes are high, and the UK must keep pace with innovation to avoid falling behind, Lord Kulveer concludes.

Manufacturers and unions are pushing Labour to open up oil and gas fields in the North Sea, arguing that failure to do so would put Britain on an accelerated path to deindustrialisation and pose a national security threat. Stephen Phipson, the chief executive of Make UK, said: “Manufacturers are calling for the Government to act quickly to progress with the Rosebank and Jackdaw developments to mitigate energy costs and energy security because of the conflict in the Middle East.” Sharon Graham, the general secretary of Unite, added: “The Government’s position on oil and gas is putting jobs and national security at risk.” The Telegraph reports that the Chancellor is also urging Ed Miliband, the Energy Secretary, to open up North Sea energy extraction.

The Centre for Social Justice (CSJ) warns that children currently in primary school may need to work until age 75 due to a declining birthrate. The CSJ’s report highlights a “demographic cliff edge,” with the UK’s Total Fertility Rate dropping to a record low of 1.41 in 2024. This decline has created a significant “birth gap,” with 830,000 individuals turning 50 next year compared to only 600,000 births. Edward Davies, research director at the CSJ, stated: “When fewer children are born, fewer workers enter the labour force.” The report calls for pro-natal policies to address these challenges, including tax relief for families and housing priority for young parents.