In a commentary piece for the City A.M., Simon Malkiel, partner and head of wealth and succession at Howard Kennedy, argues that greater concern should focus not on non-doms leaving Britain but on long-established British business owners quietly preparing to relocate abroad. He says inheritance tax reforms to Business Property Relief risk placing major financial pressure on family businesses, many of which are asset-rich but cash-poor. Malkiel warns that owners may be forced to sell businesses, seek outside investment, or move overseas to reduce tax exposure, potentially harming investment, jobs, and long-term business ownership in the UK. He argues the reforms could damage confidence among entrepreneurs and international investors and urges the government to reconsider policies that may unintentionally push established British businesses towards foreign ownership or relocation.

Anne Strickland, a researcher at the Taxpayers’ Alliance, argues that Labour’s approach to increasing taxes will not lead to economic growth. She highlights that 42% of Britons believe the government taxes too much, while only 21% think it taxes too little. Strickland criticises Labour MP Jeevun Sandher’s proposal for more state-subsidised jobs, stating that high taxes harm growth by discouraging investment and work. She advocates for a simpler tax system with lower rates, citing successful examples from countries like Estonia and Singapore. “You cannot tax your way to growth,” she concludes.

Self-employed individuals are significantly more likely to miss tax filing deadlines compared to higher earners, according to HMRC data. Nearly 6% of low-income self-employed workers failed to meet the 31 January deadline, compared to 2.7% of higher earners. This trend persists despite HMRC waiving late fees for early submissions. Pensionbee’s Lisa Picardo noted that unpredictable income and lack of support contribute to these delays. The new digital tax filing system, part of HMRC’s Making Tax Digital initiative, has seen three-quarters of affected self-employed individuals fail to register.

Over a quarter of affluent savers are taking measures to lower their inheritance tax (IHT) liabilities, according to a survey by Paragon Bank. Sixty-one percent of savers with at least £50,000 believe the current IHT system is unfair. Among those attempting to reduce their tax exposure, 68% are giving away cash. Chancellor Rachel Reeves announced that unspent pension pots will be included in IHT calculations from April 2027, prompting many to reassess their financial strategies. Andrew Wright, head of savings at Paragon Bank, said: “Many people are taking practical steps to safeguard their wealth for future generations.”

Ministers are under fire for causing financial distress to small businesses by delaying corrections to inaccurate business rate assessments. Nearly 40,000 companies are awaiting decisions from the Valuation Office Agency (VOA), with average wait times reaching almost 11 months. Allen Simpson, chief executive of UKHospitality, said: “Successful appeals could be worth thousands of pounds in lower business rates.” The Liberal Democrats have labelled the situation a “structural disaster,” highlighting the urgent need for reform. HMRC acknowledged the delays and is working to expedite the process for businesses facing financial hardship.

James Wise, chairman of Sovereign AI and partner at Balderton Capital, argues in the Times that the UK must embrace artificial intelligence (AI) to secure its economic future. Despite fears of job losses and data security, Wise says that AI could boost GDP by over £230bn by 2030. He notes that AI has the potential to create new jobs and enhance national security. In the first quarter of this year, UK AI companies raised £6bn, outpacing continental Europe. Wise points to the need for the UK to reclaim its global ambition in AI, stating: “We simply cannot afford to give this opportunity away.”

Britain is on the verge of becoming Europe’s leading hub for science and technology, writes Will Hutton in the Observer, potentially creating a £1tn tech sector by 2040. The country boasts around 800 young tech scale-ups, with record venture capital investment of $24bn last year. Additionally, recent figures from RSM UK showed that new tech incorporations in the first three months of this year stood at 17,000 – up 39% on the same quarter of 2025. Hutton notes that the Growth Trilogy reports that 1,700 scale-ups sold out to the US in the past 15 years, resulting in £1trn of lost economic value. This cannot continue, he says, as he calls on politicians with elan and self-confidence to build on the success of the tech sector as it is now the “only growth game in town.”

House prices in the UK have seen minimal growth, with the average value now at £299,313, a mere 0.4% increase from last year. Recent months have shown a decline, with prices falling 0.1% in April after a 0.5% drop in March. Amanda Bryden, head of mortgages at Halifax, noted that rising mortgage rates and inflation expectations have created uncertainty. Tom Bill, head of UK residential research at Knight Frank, predicts further price declines in the coming months, stating: “The recent spike in mortgage rates will only put gradual downwards pressure on house prices.” Regional variations exist, with stronger growth in the North compared to the South.

The UK is set to lose 163,000 jobs this year due to rising energy costs linked to the Iran war, according to the ITEM Club. The manufacturing sector will bear the brunt, with 65,000 jobs at risk, while construction will see 32,500 positions vanish. Consumer confidence is plummeting, with 90% of households worried about living costs. Tim Lyne, economic adviser to the ITEM Club, commented: “Some of the lowest-income regions will feel the biggest effects.” Only public sector jobs, particularly in healthcare, are expected to grow, with unemployment projected to exceed 2m. A government spokesman said: “We have the right economic plan to deal with price rises caused by the war.”

Research indicates a decline in worker demand in the UK. The Recruitment and Employment Confederation and KPMG reported that economic uncertainty, exacerbated by the war in Iran and rising business costs, has led to fewer permanent appointments in April. However, the survey of 400 recruiters revealed an increase in temporary appointments. Separately, an employment index by BDO – combining measures of hiring intentions and job numbers – fell to a 15-year low.

The Governor of the Bank of England has endorsed Sir Keir Starmer’s move to more closely align the UK with the EU, arguing that Britain’s growth would be boosted by improved trade with the bloc. Speaking at a Bank of England conference, Andrew Bailey said: “We’re an open economy, we do need allies. I think seeking to rebuild trade relations with Europe is a sensible thing to do.” The Telegraph points out that Bailey’s position isn’t new – he has repeatedly called for closer ties with Brussels over recent years, but his comments will be welcomed by Sir Keir, who has made seeking a closer relationship with the EU central to plans to salvage his premiership.

The Financial Conduct Authority (FCA) is preparing for potential legal challenges regarding the motor finance scandal. It has received four legal challenges from lenders, including Volkswagen Financial Services and Mercedes-Benz Financial Services. The FCA said it would “defend [the scheme] robustly” but warned of the possibility of no scheme being implemented. Compensation payments, averaging £830, are expected to start in late 2026 if the scheme proceeds. The FCA is also facing a claim from Consumer Voice, represented by Courmacs Legal, regarding the scheme’s validity.

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.

The UK Government is set to announce the nationalisation of British Steel during the King’s speech this week. The move comes after the company, which employs 3,500 people in Scunthorpe, fell under government control last April due to concerns over its Chinese owner, Jingye. The closure of British Steel would end the UK’s primary steel-making capability. A government spokesperson said: “We’ve been clear that safeguarding UK steel making is our priority.” The cost of maintaining British Steel has surged, with estimates suggesting it could exceed £1.5bn by 2028.

Sir Keir Starmer has brought in former chancellor and PM Gordon brown as his “special envoy on global finance” in an attempt to shore up his troubled administration. Brown has been asked to find ways to use “international finance partnerships” to boost defence spending and help prepare next year’s UK presidency of the G20, according to Number 10. Labour officials said Sir Keir wanted Brown to “challenge Treasury orthodoxy” on the funding of defence – a move the FT suggests could set up a clash with Chancellor Rachel Reeves, who has previously resisted moving elements of defence spending outside the Treasury’s fiscal rules.