S&P Global says its consumer sentiment index has fallen ⁠to 42.3 from 44.1, with confidence over their financial wellbeing at its lowest level since July 2023. The report, which involved a survey of 1,500 UK households, shows that optimism has dipped due to concerns over the conflict in the Middle East. Maryam Baluch, an economist at S&P Global, said households are expecting higher interest rates as the Bank of England looks to manage an expected surge in inflation. She said: “The strain on finances and an uncertain central bank policy outlook is showing up in consumer behaviour as households bear down on spending, particularly on big-ticket items, while running down savings at the fastest pace in a year.” Debt undertakings, she added, have “edged higher with the need for loans growing to the greatest extent in over two-and-a-half years.”

A survey of British manufacturers suggests the UK’s ability to rapidly expand domestic production in a crisis is mixed, raising questions over efforts to rebuild strategic industrial capacity in areas such as defence and energy. The poll of 358 manufacturers by the Manufacturing Technologies Association saw 38% of firms say they could increase output within three months, while a further 18% said it would take three to six months. However, 29% said they would be unable to add capacity at all, and more than a quarter said they had no interest in supporting a drive to boost sovereign manufacturing. Funding shortages were cited as the biggest obstacle to expansion, followed by a lack of space. The findings also highlighted scepticism toward government policy, with 55% saying the industrial strategy had made no difference to their business and was unlikely to do so in future.

Over 71% of UK fintech leaders are altering growth strategies due to tightening capital conditions, according to a report by fintech advisory firm Chatsworth. The report surveyed 100 fintech executives, revealing that 25% view access to capital as their primary constraint. Despite a significant drop in UK fintech investment to nearly $11bn in 2025, leaders remain optimistic, with 90% believing the sector will be stronger in five years.

In the first quarter of the year, UK venture capital investment reached £7.2bn, the highest since mid-2022, driven by significant deals in London. According to the report from KPMG, 85% of this funding went to London-based firms, raising concerns about regional disparities. Nicole Lowe, UK head of KPMG’s emerging giants practice, said: “Despite ongoing headwinds… the UK is being recognised for its attractiveness for investors.” AI start-ups dominated, accounting for nearly 75% of the total funding.

Ministers are intensifying efforts to enhance cybersecurity among UK businesses, urging nearly 200 leaders to sign a new ‘cyber resilience pledge’. This initiative, led by Baroness Lloyd of Effra, comes amid concerns that advanced AI tools, like Anthropic’s Mythos model, could significantly increase hacking threats. Baroness Lloyd said AI is “giving attackers capabilities that would have seemed extraordinary just a year ago.” The National Cyber Security Centre has warned of a severe cyber threat, with many firms lacking the necessary expertise and resources. Currently, only 1% of UK businesses hold Cyber Essentials certification, highlighting a critical preparedness gap.

Job vacancies in London’s financial services sector increased by 15% in Q1, according to research by Morgan McKinley. This follows a 13% decline at the end of last year. Mark Astbury from Morgan McKinley said: “While this is partly a seasonal rebound, it demonstrates that hiring is moving in the right direction.”

Top executives in the UK saw their pay and perks increase by nearly 18% last year, significantly outpacing the average worker’s earnings. According to Deloitte analysis of 55 FTSE 100 companies, the typical chief executive earned £5.9m, with their salaries increasing around 4.5 times faster than the average UK worker. The analysis shows that 26 out of the 55 companies are seeking shareholder approval for new executive pay policies. Of the 16 proposing significant increases, the average proposed pay hike is 200%. Mitul Shah, partner in Deloitte’s executive remuneration and reward practice, said: “We continue to see a significant number of companies propose substantial changes to variable pay opportunities.” Andrew Speke, of think-tank the High Pay Centre, said: “In the context of a worsening cost of living crisis, these new figures are likely to increase existing discontent over pay inequality and excessive executive pay.”

Praveen Gupta, head of tax at Azets UK, warns that a proposed ‘holiday tax’ could increase costs for UK breaks by £500m annually, exacerbating the UK’s already high hospitality taxes. The UK imposes a 20% VAT on hotels and restaurants, while competitors in Europe charge between 10% and 13%. Mr Guota said: “Adding local tourism levies… would be an act of economic self-harm.” The Government, he said “should be looking at how to make the UK a competitive destination” rather than “dreaming up new ways to tax visitors.”

Visa has partnered with TikTok to introduce a debit card aimed at content creators in the UK. This initiative supports the growing creator economy by providing financial tools to enhance cash flow. The card allows creators to convert virtual gifts from TikTok Live into income, facilitating quicker access to earnings. A survey by Censuswide revealed that 49% of creators face challenges due to late payments.