The Government has expanded its energy cost relief initiative for manufacturers, allowing up to 25% reductions in electricity bills. Around 10,000 energy-intensive manufacturers will be boosted by the extension of the British Industrial Competitiveness Scheme, which originally aimed to support 7,000 firms. Stephen Phipson, chief executive of trade body Make UK, said: “While this announcement acknowledges the problem of high UK industrial energy costs, it doesn’t provide the immediate solution to the critical cost pressures companies are facing right now,” adding: “Manufacturers are staring down the barrel of huge increases in their energy bills … as they renegotiate their energy contracts.” Citing research which shows that 69% of business leaders are concerned about energy price volatility, Alex Hall-Chen of the Institute of Directors said: “This crisis underlines the need for deeper reform of the UK’s energy market, rather than tweaks at the edge.”

Bank of England governor Andrew Bailey says the central bank will not be hasty in deciding on interest rate changes. Speaking at the International Monetary Fund meeting, he acknowledged that rising oil and gas prices would impact inflation. However, he noted that various factors complicate rate decisions. Mr Bailey said: “There’s really difficult judgments to be made,” emphasising the uncertainties surrounding the effect on the UK economy from the conflict in the Middle East. He also insisted that he has no concerns about the resilience of the banking system despite the ongoing geopolitical tensions.

Kallum Pickering, chief economist at Peel Hunt, suggests the Bank of England may cut interest rates if the conflict in the Middle East comes to an end and the Strait of Hormuz reopens. He anticipates two rate cuts by year-end, saying he finds market expectations for a single increase to be “odd”. He said: “One hike – what is the point in that? Chances are, this is among the least likely paths.” Mr Pickering goes on to warn that a protracted conflict could force the Bank’s Monetary Policy Committee to “take drastic action” in order to prevent a surge in inflation, saying: “In that scenario, we could not rule out significant rate hikes.”

The UK’s tax burden is set to increase from 37.6% to 42.1% of national income by 2031, according to the International Monetary Fund (IMF). This rise, amounting to an additional £130bn annually or £4,500 per household, is the fastest in the developed world. While the tax burden in the UK is due to rise by 4.5 percentage points, it will go up by 1.7 percentage points in France, 1.2 in Germany, 0.9 in the US and 0.6 in Italy. Canada and Japan, meanwhile, are set to see their tax burdens fall. Reflecting on the report, Shadow Chancellor Sir Mel Stride criticised the Chancellor, saying: “Rachel Reeves said she wouldn’t tax working people but she’s delivering the fastest rise in the tax burden of any major economy.” This, he said, “is reckless and totally unsustainable for our economy.” The IMF also predicts the UK economy will grow by just 0.8% this year, with this 0.5 percentage points lower than it predicted in January.

HMRC figures suggest Britain’s highest earners have increased pension contributions to reduce tax bills, with workers in the 40% and 45% bands claiming £1.4bn in pension tax relief in 2023/24, marking a £400m increase, year-on-year. Additional-rate taxpayers more than doubled their claims to £806m after the top-rate threshold was cut to £125,140, while many six-figure earners are using pensions to avoid the effective 60% tax band between £100,000 and £125,140 – and other tax traps such as losing childcare support. Suggesting that higher earners “face a multitude of tax traps,” Sean McCann of NFU Mutual said: “Pension contributions reduce taxable earnings, which can help people escape one or more of these traps.”

HMRC has issued a warning urging workers, especially those using umbrella companies, to carefully examine their pay. The tax authority highlighted “red flags” that could indicate tax avoidance schemes, which may lead to significant tax liabilities. HMRC said workers must ensure their net pay matches their payslip, noting that failure to do so could result in unexpected tax bills and penalties, as the responsibility ultimately lies with the individual.

The Government’s target to build 1.5m homes in England is increasingly at risk, with industry conditions deteriorating. Barratt Redrow has scaled back land purchases, while Berkeley Group has halted buying altogether, reflecting uncertainty linked to higher interest rates and rising costs following the Iran conflict. Housing delivery remains well below the required pace, with 208,600 homes added in 2024/25 against a 300,000 annual target. Developers face pressure from elevated mortgage rates, higher material costs and taxes affecting project viability.

Lucy Rigby, the Economic Secretary to the Treasury, has invited the UK’s leading banks and financial services firms to discuss the steps they are taking to tackle economic abuse. The meeting at the Treasury will look at how to raise more awareness of the issue and what processes can be put in place to support victims. Analysis by Surviving Economic Abuse shows that 4.2m women in the UK experienced economic abuse from a current or former partner last year. Ms Rigby said that by “focusing on what firms can do to help end this pervasive practice, we can help change economic abuse victims’ lives.” Lenders due to attend include Barclays, HSBC, Nationwide, NatWest, and Santander, with the Financial Conduct Authority and UK Finance also set to be involved.

Standard Life has agreed to buy the UK arm of Dutch insurer Aegon in a £2bn cash-and-share deal. Standard Life said the move will create the country’s largest pensions group, with 16m customers and £480bn of assets under administration. Terms of the deal mean Aegon will hold a 15.3% stake in the group. Royal Bank of Canada, Lloyds and Royal London had reportedly shown an interest in the firm.

S&P Global Ratings has warned that banks’ high exposure to hedge funds and trading firms is creating risk, saying “the ecosystem exhibits an inherent fragility that could be tested under severe stress.”

Donald Trump is threatening to to downgrade Britain’s trade deal. In an interview with Sky News, the US President expressed frustration over the UK’s lack of support for his military action in Iran, and said: “We gave them a good trade deal. Better than I had to. Which can always be changed.” He added that the relationship between the US and UK had “been better”.