Huel founder issues wealth tax warning

Julian Hearn, the founder of meal replacement drink firm Huel, has warned that increasing UK wealth taxes – especially bringing capital gains tax closer to income tax rates – would be “incredibly unfair” and risk driving entrepreneurs and high-net-worth individuals abroad. He argues that the current gap – with CGT at 24% and income tax charged at up to 45% – rewards risk-taking and wealth creation, while higher rates could discourage investment and push globally mobile individuals to lower-tax jurisdictions. Mr Hearn notes that recent measures, such as tighter rules on non-doms, have already contributed to some wealthy individuals relocating abroad. His comments come amid speculation that the Government may raise CGT or introduce new wealth taxes to boost public finances. Chancellor Rachel Reeves previously considered increasing CGT to 39%, although this was not implemented.

HMRC targets 700k people in avoidance clampdown

HMRC is issuing unexpected tax bills to up to 700,000 people as part of a renewed crackdown on tax avoidance schemes, particularly those involving umbrella companies and “disguised remuneration.” Affected taxpayers are being told they remain liable for unpaid tax, even if their cases were not covered by the Loan Charge Review. The action has raised concerns that many flexible workers were unknowingly drawn into avoidance schemes, with enforcement now intensifying despite earlier reassurances in some cases. The Government is moving to tighten oversight, with new rules introduced in April 2026 and full regulation of the umbrella sector planned for 2027. HMRC says progress is being made, with the estimated tax gap from marketed avoidance falling sharply from £1.5bn in 2005/06 to £200m in 2023/24, and new compliance rules expected to protect £2.7bn in tax revenue by 2030/31. The Government, it is noted, has spent £186m to collect just £44m in tax from individuals impacted by the Loan Charge in the past six years.

Mansion tax set to cost Treasury £400m

The introduction of a mansion tax is projected to cost the Treasury nearly £400m before any revenue is generated. Treasury officials estimate a £230m decline in stamp duty and inheritance tax receipts over three years due to falling property values. The process of identifying liable homes will incur an additional £150m. From April 2028, homeowners with properties valued at £2m or more will pay an annual surcharge. Charges will come in four brackets: £2,500 a year for homes worth between £2m and £2.5m; £3,500 for those from £2.5m to £3.5m; £5,000 for properties valued between £3.5m and £5m; and £7,500 for homes worth more than £5m. The Treasury expects the policy will raise nearly £1.4bn in the first three years, calculating that after costs and the negative impact on other tax receipts, the tax will generate a net £930m by 2031.

Costs deter small firms from EU markets

The Federation of Small Businesses (FSB) has warned that post-Brexit red tape and costs are driving smaller companies out of European markets. In a survey of 645 businesses, 30% indicated they might reduce or cease trading in the EU without eased regulations. Many small businesses reported issues with customs documentation (64%), physical inspections (21%), and product marking (17%). FSB policy chair Tina McKenzie said: “Small firms are not short of ambition but they’re being worn down by a system that feels stacked against them.” She suggested that the EU “should be a natural market for our small firms as it’s so close and accessible,” adding: “The demand is there and the opportunity is clear, so it’s a frustrating shame that many are currently questioning whether it’s even worth the effort at all.”

London hotel occupancy hit by Iran war

The occupancy of London’s hotels fell from 76.3% in March 2025 to 74.8% in March 2026, according to RSM. The year-on-year decline is attributed to reduced tourism due to the ongoing conflict in the Middle East, which has caused a 51% decrease in passenger traffic at Heathrow. Chris Tate, head of hotels at RSM, said: “The immediate impact of the Middle East conflict has started filtering through to the hotel industry.” Despite the decline in occupancy, average room rates have risen by 5% to £190.24, providing some relief to hoteliers facing rising costs and an increased business rates burden.

Loyalists urge PM to ‘tax for growth’

Jeevun Sandher, an aide in the business department, has urged Keir Starmer to adopt a policy of “taxing for growth,” adding a call for taxes that would incentivise companies to invest.

ONS spends £70m on labour data overhaul

The Office for National Statistics (ONS) has spent nearly £70m on revamping its labour market data, according to figures obtained by the Times. A freedom of information request revealed an additional £10.6m was spent last year on a new labour force survey, which has faced delays. The cumulative cost of the transformed labour force survey (TLFS) now stands at £67.6m over five years. The ONS noted that recent spending focused on printing and incentivising participation. The response rate fell to a record low of 12.7% in Q3 2023, prompting the ONS to simplify the questionnaire and offer cash incentives. It is noted that the Commons Treasury Committee had warned that TLFS delays have made “some of the most consequential decisions taken by the Treasury and Bank of England challenging at best and misinformed at worst.”

Gilt investors say ‘swing to the left’ will hit borrowing costs

Investors fear that a Labour defeat in local elections could exacerbate pressure on government borrowing costs and increase calls for looser borrowing limits, impacting the UK bond market significantly.

UK retail space shrinks

The UK retail sector is experiencing a significant decline, with shop space losses surpassing new developments for the first time in decades. In 2025, the UK lost a net 800,000 sq ft of retail space, according to CoStar data. Mark Stansfield, senior director of UK analytics at CoStar, noted this is likely the first decline since the Second World War. Developers initiated only 2m sq ft of new retail space in 2025, a 40% drop from 2024. The British Retail Consortium has urged ministers to deliver greater support amid concerns over business rates and employment costs.