Banks are increasingly engaging with private credit amid rising concerns about associated risks, the Telegraph reports. In 2025, banks executed 27 significant risk transfers (SRTs), the highest in five years, compared to 24 in 2024. Andrew Bailey, Governor of the Bank of England, recently compared the risks in the sector to the subprime mortgage crisis before the 2008 financial crash. Prof Raghavendra Rau from Cambridge Judge Business School noted the opacity of banks’ exposure to lightly regulated institutions. The IMF last year warned that the rapid growth of SRTs could heighten vulnerabilities in the financial system. Meanwhile, the FT reports that Nest, the UK’s largest workplace pension scheme, will invest £450m in US private credit, increasing its private market exposure from 18% to 30% by 2030.

Tom Blomfield, the CEO of Monzo, predicts that artificial intelligence (AI) will render income tax redundant within five years. He warns that automation could lead to a significant jobs crisis, as traditional employment declines. Blomfield suggests replacing income tax with a levy on resources used to develop and operate AI systems. He said: “I don’t think we’ll tax human labour, we’ll tax compute, data centres, and then we will use the proceeds to pay for government.”

The British Business Bank has committed £40m to Eka Ventures’ Fund II, aiding its final close of £80m. This follows the Bank’s previous support for Eka’s first fund, which closed at £68m. Fund II will focus on early-stage companies in healthcare, sustainable consumption, and wellbeing. Peter Kyle, Secretary of State for Business and Trade, stated: “This commitment to Eka Ventures will help them to fulfil their ambitions here in the UK.” Mark Sims, Managing Director at the British Business Bank, emphasised the importance of such commitments in unlocking funding for impactful early-stage businesses.

Writing in City AM, Dame Susan Langley, Lady Mayor of the City of London, says that recent world events demonstrate that “established ways of working are under threat” and that nations should reject the lure of isolationism and protectionism. She calls for expert global financial centres “to step up – not alone, but in partnership, sharing knowledge and recognising equivalent standards to build together.” Essential to cooperation is trust, Dame Susan continues, adding that “the defining challenges of our time are too vast and too interwoven to be met with fragmented responses.”

Sir Keir Starmer has warned that the Iran war will have significant economic repercussions for the UK. He stated that the conflict has already impacted fuel prices, evident at petrol stations nationwide. The PM advocated for a toll-free reopening of the Strait of Hormuz, crucial for global oil and gas supplies, while opposing President Trump’s naval blockade. An international summit led by Starmer and Emmanuel Macron will address the situation this week.

Jo Bamford, heir to JCB’s fortune, has threatened to relocate the company to America due to the new inheritance tax. He warned that the 20% tax on assets over £2.5m could force JCB to reconsider its future in the UK. “The family tax is a real problem,” Bamford said. The tax changes, announced by the Chancellor, have raised concerns among business owners about potential asset sales to cover tax liabilities. A Treasury spokesman said: “We’ve listened and raised the relief threshold to £2.5m to protect more small family businesses, while ensuring the largest make a fair contribution so we can deliver support for families and businesses, including cutting the cost of living.”

The National Wealth Fund has announced a £599m financing package for Rolls-Royce Small Modular Reactors (SMR) to support the UK’s clean energy initiative with Great British Energy. Each SMR will generate 470 megawatts of low-carbon electricity. The funding aims to attract further investment from private lenders, creating around 1,000 jobs at Rolls-Royce SMR. The Chancellor said: “This investment…will strengthen our energy security, create skilled jobs and help to build a new generation of homegrown nuclear technology.”

British households reduced non-essential spending last month due to rising fuel prices and uncertainty from the Iran war. According to Barclays’ consumer spending report, fuel spending rose 1.6% year-on-year, pushing essential spending up by 0.5%. However, non-essential spending growth slowed to 1.1%, with travel spending down 3.3% due to flight disruptions. Jack Meaning, chief UK economist at Barclays, said: “The Bank of England will need to consider how to balance this softening economy with the inflation already taking effect.” Overall card spending increased by 0.9% year-on-year in March.

Pret a Manger has temporarily removed its jambon beurre sandwich from most of its UK shops due to a shortage of cornichons, a key ingredient. The issue stems from supplier problems. The price of pickled cucumbers is expected to rise due to increased costs from the US-Israel conflict affecting fertiliser and energy prices.