Retail leaders have warned that rising employment costs are reducing hiring and putting pressure on jobs in the retail and hospitality sectors, particularly for younger workers. The British Retail Consortium said increases to employers’ National Insurance contributions and the minimum wage had added £6.5bn to retailers’ labour costs over the past year. The group said many businesses were slowing recruitment and reducing staff numbers as a result. Official figures show vacancies have fallen significantly since mid-2024, while unemployment among 16 to 24-year-olds remains well above the national average. Retailers warned that entry-level opportunities were becoming harder to secure, with concerns also growing that the adoption of AI could further reduce junior roles in some industries.

Top economists are calling for the Bank of England to reconsider its quantitative tightening (QT) strategy, which is raising government borrowing costs. The UK’s long-term borrowing costs have surged to their highest levels this century, prompting scrutiny of the Bank’s approach to offloading £875bn in government bonds. Simon French, chief economist at Panmure Liberum, said: “I would advocate for ending active QT.” Analysts warn that the current strategy adds unnecessary pressure to the gilt market, with calls for a pause in bond sales to mitigate fiscal implications for taxpayers.

The S&P Global UK Construction Purchasing Managers’ Index (PMI) reported a significant decline in construction output, marking the steepest drop since November 2025. The PMI fell to 39.7 in April, down from 45.6 in March, indicating a sharp decrease in business activity. Cost inflation surged to 81.4, the highest since June 2022, with 69% of firms reporting increased input costs. Tim Moore, economics director at S&P Global Market Intelligence, commented: “The latest rise in purchasing costs was the steepest in three decades of data collection.” Overall, the construction sector faces heightened uncertainty due to ongoing geopolitical tensions.

Britain’s high street recorded its steepest fall in shopper numbers since the Covid lockdowns, with footfall down 10.7% in April compared with a year earlier, according to the British Retail Consortium. Even adjusting for Easter timing, visits across March and April were down 3.9%. Retail analysts said households were cutting discretionary spending amid inflation concerns linked to the Middle East conflict, rising fuel prices and pressure on grocery and energy bills.

Chris Mann, an accountant with 53 years of experience with HMRC, criticises the agency’s declining service quality. He notes that the wait time for registered agents has increased to 20-30 minutes, compared to five minutes previously. Responses to letters now take over four months, leaving clients in the dark about tax refunds. Mann also raises concerns about data protection, stating that remote work may violate regulations. He believes the Prime Minister should ensure the Civil Service meets its public duties by returning to office work.

Centrica reports that household energy debts in the UK reached £1.04bn last year, up from £799m the previous year. The Energy UK trade body warned that over 2m households may struggle to pay their bills by December. The total energy debt across all suppliers is projected to rise from £5.5bn to £7bn. Centrica’s chairman, Kevin O’Byrne, said: “Energy affordability and debt are a serious and growing challenge.” The Government faces pressure to support families amid rising costs, with proposals for debt relief schemes under consideration.

The IMF has urged policymakers to prepare to deal with an “inevitable” breach of the world banking system by advanced AI models and called for international cooperation to shore up defences. “IMF analysis suggests that extreme cyber-incident losses could trigger funding strains, raise solvency concerns, and disrupt broader markets,” the lender warned in a new report. The risks were systemic, cut across sectors and came with the threat of contagion. “Defences will inevitably be breached, so resilience must also be a priority, specifically to limit how far incidents spread and ensure rapid recovery,” the report added.

The City of London Corporation is urging tech firms to develop a digital identity verification network to combat fraud and reduce financial scam costs. The system would allow consumers to verify their identity once with a trusted provider, streamlining processes across banks and financial services. The initiative could unlock nearly £5bn in economic benefits over five years. Chris Hayward, policy chairman, said: “Innovation enables new dangers – but it also solves them too.” The City is seeking input from tech firms until mid-May to build this crucial infrastructure.

UK banks paid £236.2m to settle customer complaints in the last six months of 2025, averaging £215 per complaint. The Financial Conduct Authority reported 187,516 complaints, with the largest banks receiving the most. Lloyds had 90,837 complaints, while NatWest had 72,000 and HSBC 67,308.

Flutter, the parent company of Paddy Power and Betfair, is reviewing its London Stock Exchange listing, potentially leading to a complete exit. The Dublin-based firm plans to conclude its review by the end of next month. Flutter’s move follows a trend of companies leaving the UK market for New York, driven by low valuations and limited activity in London. Flutter reported revenues of $4.3bn (£3.2bn) in Q1, up 17% year-on-year, but noted challenges from unfavourable sports results.