The UK economy grew by 0.3% in March, surpassing analysts’ expectations of a contraction. The Office for National Statistics (ONS) data also shows growth of 0.6% for the first quarter, with ONS director of economic statistics Liz McKeown noting that this was “led by broad-based increases across the services sector.” However, economists have warned that the economy may soon take a greater hit from rising fuel prices driven by the conflict in the Middle East, with Ruth Gregory at Capital Economics saying: “We would be very surprised if growth doesn’t weaken from May,” pointing to an “adverse scenario” where the economy suffers a mild recession. Yael Selfin, KPMG’s chief economist, said the impact of the war in Iran is likely to be more pronounced in Q2, warning that higher fuel and energy prices are “likely to weigh on disposable incomes, dampening demand and posing a significant challenge to economic activity over the coming months.” Suren Thiru, chief economist for the ICAEW, said the strong first quarter “is probably the high point for the economy this year with output likely to halve in the second quarter.”

Average household wealth in the UK has fallen 17.5% to £104,329, according to analysis by St James’s Place, with this down from £126,482 a year ago. The report shows that London has the highest household wealth at £171,455, while Yorkshire and the Humber has the lowest, at £73,488. The poll saw 34% of respondents say their financial situation has worsened in the last twelve months, while just 17% felt it has improved. It was also shown that 37% describe themselves as financially comfortable, down from 42% a year ago. One in five (21%) said they are struggling financially, up from 16% last year. Joe Nellis, an economic adviser to MHA, said: “A near 18% decline in average household wealth over a single year is a major warning sign for the UK economy,” adding: “More than twice as many people say their finances have deteriorated over the past year as have improved. That is not the mood of a confident economy.”

With the Government planning to double tariffs on steel imports, businesses have wared that this poses a threat to the manufacturing sector. Shevaun Haviland, head of the British Chambers of Commerce, warned of “immediate hardship” for importers when the new duties take effect in July. The Government will cut the tariff-free steel import quota by 60% and impose a 50% duty on excess imports. Ms Haviland has urged Business Secretary Peter Kyle to extend the transition period and reconsider the steep quota reductions, which could harm downstream industries. A Government spokesperson said the measures aim to balance domestic production protection with supply security.

Homeowner mortgage repossessions increased by 3% to 1,250 properties in Q1 compared to the previous quarter, according to UK Finance. The total is also 2% higher than the same period last year. Meanwhile, 810 buy-to-let mortgaged properties were repossessed in the first quarter of this year, with this 5% higher compared with Q4 2025. The report also shows that 79,110 homeowner mortgages were in arrears of 2.5% or more in Q1, a 12% decrease from the previous year. UK Finance also found that 8,960 buy-to-let mortgages were in arrears of 2.5% or more of the outstanding balance in Q1, which was 6% fewer than in the previous quarter and 24% lower than in Q1 2025. James Tatch, head of analytics at UK Finance, said: “The number of mortgages in arrears continues to fall for both residential and buy-to-let mortgages. While possessions are up very slightly on the previous quarter, they remain low by historic standards.”

Forty leading British business organisations have signed a letter condemning antisemitism in the workplace and vowing to support Jewish staff. Co-ordinated by the British Chambers of Commerce and the Confederation of British Industry, the open letter calls for a zero-tolerance approach and improved training on antisemitism as a form of racism, saying: “We, as leaders from across the UK business community, unreservedly condemn antisemitism in all its forms.” Tina McKenzie, policy chair at the Federation of Small Businesses, and Jonathan Geldart, director-general of the Institute of Directors, said they were taking a stand for the “sake of our Jewish colleagues and friends,” and for the “health of our society.”

HMRC has secured a 10-year, £175m contract with Quantexa that will see the tax office implement AI technology aimed at enhancing its operations. Quantexa’s systems will integrate HMRC data with external sources to identify fraud and rectify errors. The technology will assist customer service staff and uncover hidden networks involved in fraudulent activities. Vishal Marria, Quantexa’s CEO, said the new technology was designed to “support human decision-making, not replace it.” He told the BBC: “In government environments, AI cannot operate as a black box. Decisions need to be transparent, auditable, and explainable, particularly in areas affecting citizens directly.”

Nearly half of landlords plan to increase rents due to upcoming tax rises, according to a poll by the National Residential Landlords Association (NRLA). As of April 2027, landlords will be taxed at 2 percentage points above normal income tax rates. Basic rate taxpayers will see a rise to 22%, while higher rate taxpayers will see rental income taxed at 42% and additional-rate taxpayers will be taxed at 47%. The NRLA said polling shows that 46% of its members plan to charge their tenants more as they will be taxed more heavily on that income. Ben Beadle, chief executive of the NRLA, said: “Renters will be left picking up the bill for the Chancellor’s tax hikes.” The Office for Budget Responsibility estimates that the change will generate £500m annually for the Treasury from 2028/29.

The new Overnight Visitor Levy Bill has drawn criticism from businesses and would-be holidaymakers. The levy, announced in the King’s Speech, would impose an extra charge on overnight stays to fund local infrastructure and tourism. Research from Oxford Economics suggests it could add over £100 to a two-week holiday, costing Britons £1.6bn if passed. Polling by UKHospitality shows that nearly two-thirds of those struggling financially oppose the tax. Jon Hendry Pickup, CEO of Butlin’s, said the tax would “hurt working families,” while some Labour MPs have expressed concerns about its impact on tourism.

UK companies are investing heavily in AI, yet employees spend nearly a full day each week on tasks AI was meant to eliminate. Research by Workday reveals that 25% of UK workers lose over seven hours a week moving information between systems, finding data and manually feeding information into AI tools. It was also found that 19% of UK employees say they do not trust AI outputs. Dan Pell, Workday’s UK and Ireland country manager, noted that AI is enhancing individual productivity but not overall organisational efficiency, warning that without integration, employee engagement may decline. The study, which polled 2,400 professionals, also found that 53% of UK workers feel burned out, higher than the global average of 46%.

Professional landlords are seizing opportunities as smaller landlords exit the market due to tighter rules stemming from the Renters’ Rights Act. Property auctioneer Auction House reported a 70% increase in tenanted properties sold at auction in April 2026 compared to last year. Philippa Martinez from Auction House Kent says “accidental” landlords are selling at discounts of 30-40%. A survey by property auctioneer Allsop shows that nearly two-thirds of single-property landlords plan to reduce investments, while David Coughlin, at Landlord Sales Agency, said more than 50% of their sales in recent weeks had been to landlords with 10 to 15 properties who were capitalising on the exodus of smaller landlords to expand their portfolios.