The Conservatives have voiced concerns that the Government’s proposed inheritance tax changes will force family businesses to sell to foreign buyers. Sir Mel Stride, the Shadow Chancellor, has warned that Labour’s inheritance tax changes could force family businesses to be broken up or sold, potentially to foreign buyers, rather than passed down through generations. The reforms remove key reliefs for farms and businesses, applying a 20% tax on assets above £2.5m when they are inherited. Sir Mel argues that this will discourage investment and growth by leaving heirs with large tax bills at the point of succession. Critics argue that the change will mean some owners are less willing to expand due to future tax liabilities. A study by Family Business UK shows that 57% of respondents said the Government’s change to business property relief would affect them, despite the threshold at which IHT is due being raised from £1m to £2.5m. Meanwhile, around a quarter of family businesses said they would increase hiring if the exemption from paying IHT on assets was restored in full.

The number of top-rate taxpayers has surged, with those paying the 45% rate jumping 57% in a year to nearly 900,000, while higher-rate (40%) taxpayers rose to 5.76m. This growth is largely driven by a freeze on tax thresholds combined with rising wages, pushing more people into higher tax bands. The freeze – which has been in place since 2021 and since extended until 2031 – means this trend is expected to continue, with forecasts suggesting a quarter of taxpayers will be in higher or additional rates by 2030. Although accounting for just 2% of taxpayers, top-rate earners now contribute nearly 38% of income tax, and higher/additional-rate taxpayers together pay over 70% of the total. Rachael Griffin, of wealth manager Quilter, said: “This shift is no longer confined to traditionally high-paid professions. Experienced teachers, senior nurses and police officers are increasingly being pulled into higher-rate tax through incremental pay rises, overtime or progression, rather than genuinely high earnings.” The figures also show a sharp rise in pensioners paying tax, with the rate up 22% to 8.16m.

HMRC is starting to impose daily fines on UK households for late Self Assessment tax returns. Initially, a £100 fixed penalty applies for missing the January 31 deadline. After three months, daily fines of £10 will accrue, reaching a maximum of £900. Additional penalties of 5% of unpaid tax will follow after six and twelve months.

Keir Starmer has warned that the UK faces an “inflation spike,” saying that the conflict in the Middle East and disruption to oil supplies could see the rate rise above 6%. The Prime Minister said ongoing instability will have lasting economic effects, warning that even when the Strait of Hormuz reopens, “I don’t want anybody to think it will all return to normal.” Mr Starmer said the economy had been “beginning to turn a corner,” with “inflation at 3% and dropping and six interest rate cuts in a row” while growth figures were “better than anyone expected,” but said the latest forecasts suggest this is no longer the case. Speaking to Radio 4’s Today programme, the Prime Minister called for a stronger, more resilient UK economy with greater energy independence and investment.

The UK manufacturing sector reached a four-year high in April, with the Purchasing Managers Index (PMI) from S&P Global coming in at 53.7. This marks the sixth consecutive month above the 50 mark which separates growth from contraction. Staffing levels also rose for the first time in 18 months. However, Rob Dobson, director at S&P Global Market Intelligence, cautioned that disruption stemming from the conflict in the Middle East is causing significant supply chain issues. The report also shows that input prices have surged, raising concerns about future growth.

NatWest has revised its UK growth forecast to 0.4% for this year, down from 1%, citing cautious consumer spending and reduced hiring due to the ongoing Iran war.

Neal Prunier, an executive at the Institutional Limited Partners Association, which represents private equity investors, has warned that continuation vehicles can create conflicts of interest.

The annual growth rate for consumer credit hit 8.9% in March, according to the Bank of England, exceeding the 8.6% recorded in February. Within this total, the annual growth rate for credit card borrowing increased to 12.3% from 12.1% a month earlier. Consumer deposits with banks and building societies increased by £5.5bn in March, with an additional £4.4bn of cash added into ISAs as the end of the tax year approached. The Bank’s report also shows that non-financial businesses borrowed £7bn in loans from banks and building societies, including overdrafts in March, following £4.2bn of net borrowing in February.

Dividend payments from UK companies were up 21.1% to £16.4bn in Q1. Data shows that 14 of the 21 sectors monitored increased payments, while special dividends increased nine-fold to £3.3bn.

George Grassly, an accountant at PwC, won the mass category of the 2026 London Marathon with a record time of 2:12:54. This time surpassed the previous record by 24 seconds. While sprinter Eugene Amo-Dadzie calls himself the “world’s fastest accountant”, the Observer suggests that Mr Grassly may now have a claim to that title.