Chancellor Rachel Reeves has urged the UK to align more closely with European Union regulations to enhance trade and reduce prices, warning that the UK risks being “stranded” between competing trading blocs without this integration. Ms Reeves said that Brexit has caused “profound uncertainty” and reduced GDP by up to 8%. She added: “Our fate as a country is inescapably bound with that of Europe,” advocating for alignment where it benefits growth and investment while preserving national interests.

Rachel Reeves has announced plans to decentralise tax revenues to regional leaders, saying the initiative will aim to address England’s economic imbalance. Speaking at Bayes Business School, the Chancellor said she has asked Treasury officials to “work with mayors and businesses to develop a road map for future fiscal devolution,” with details set to be published at the next Budget. She added that this “will set out plans to give regional leaders control of a share of some national taxes which have, for too long, been allocated by central government.” She noted that officials will “look at income tax alongside other taxes,” with the reforms “initially targeted at those places that have the greatest capacity to deliver them and the greatest potential to benefit.” The Chancellor described the plans as a “generational opportunity for Britain’s regions to make their own future.” Ms Reeves also introduced a £2.3bn City Investment Fund for mayors to invest in long-term projects.

Medium and larger shops in Scotland will pay £54m more in business rates than those in England starting April. The Scottish Retail Consortium (SRC) says that 2,296 shops with a rateable value of £100,000 or more will face a rate of 54.8p per pound, compared to 43p in England. SRC director David Lonsdale said: “Scotland’s medium-sized and larger stores will effectively be stumping up a £54m surcharge.” He highlighted that the new retail hospitality and leisure rates relief will not benefit these larger stores, risking a competitive disadvantage for Scottish businesses.

Online sales platforms such as Ebay, Vinted and Airbnb reported 4m users’ earnings to HMRC last year, with this a 272% increase from 2024. The increase follows new regulations requiring platforms to report user incomes. HMRC received 811 reports directly from selling platforms in the UK, up from 806 in 2024. The tax authority also received 13 reports about UK taxpayers from overseas selling platforms. Total online earnings reached nearly £55bn, more than double the previous year’s £25.5bn. Dawn Register, a partner at BDO, said: “This new data will be an absolute gamechanger for HMRC – and a goldmine for tax inspectors seeking to ensure that online sellers pay the right amount of tax.”

The Social Market Foundation has warned of a “pension shock” as many workers realise their retirement income will be much lower than anticipated. Generation X is facing a significant retirement crisis, with 54% lacking adequate savings. Those born between 1965 and 1980 are caught between two pension systems, missing out on both defined benefit schemes and auto-enrolment savings. The Social Market Foundation survey shows that 79% of Gen X are unaware of their pension pot amounts. Catherine Foot from the Standard Life Centre for the Future of Retirement think-tank said: “Gen X is at the sharp end of a building retirement crisis.”

A record 4,210 debt relief orders were issued in February 2026, according to the Insolvency Service. This figure surpasses the previous high of 4,185 in August 2025. Overall, personal insolvencies rose to 11,609, an 18% increase from February 2025. The data also shows there were 6,631 individual voluntary arrangements recorded in February, with this higher than the monthly average seen in 2025. There were also 768 bankruptcies, marking a 25% increase on February last year. The number of registered company insolvencies in England and Wales hit 1,878 in February, with this 7% higher than in January but 7% lower than in February 2025. Matthew Richards, joint head of restructuring and insolvency at Azets, said the ongoing war in Iran “is likely to lead to inflation rising and further increases in outgoings.”

Leading economists from City AM‘s Shadow Monetary Policy Committee say the Bank of England should maintain interest rates at 3.75% due to the ongoing conflict in Iran. They warn that the war could exacerbate inflation and economic stagnation. Julian Jessop, an independent economist, said: “It is still right to look past the temporary impact of commodity price shocks.” Katharine Neiss, chief European economist at PGIM Fixed Income, said: “Prior to the recent events in the Middle East, I would have advocated a cut in Bank Rate to 3.5%.”Ruth Gregory, Capital Economics’ deputy chief UK economist, said it “makes sense to keep rates on hold until there is more clarity on the situation in the Middle East and what’s coming down the line for UK inflation.” The committee voted 7-2 in favour of keeping rates unchanged.

Reform UK has announced plans to eliminate VAT and green levies on household energy bills. The party says the tax cut, which would cost around £2.5bn according to Pantheon Macroeconomics, would be funded by a reduction in quangos. Reform is also advocating for the reversal of a planned fuel duty hike and has argued for the scrapping of renewable energy levies and the carbon price support tax, saying these measures would lower energy bills.

Only one UK sector – financial and insurance activities – pays a median salary high enough for a single person to afford the average house price, according to new research. An income of around £56,476 is now required, placing home ownership out of reach for many workers across other industries. The findings, from Go.Compare home insurance, highlight widening affordability gaps, particularly for those in lower-paid sectors such as hospitality.