Arun Advani, director of the Centre for the Analysis of Taxation, has said it is likely that advances in AI will impact tax income in the next five years, echoing the view of Tom Blomfield, the founder of Monzo, who warned last month that AI could wipe out income tax by the early 2030s. About 60% of the UK’s entire tax income comes from workers or the sales tax on their purchases. Colin Ellis, head of economic research at Moody’s Analytics, says the prospect is a concern and the Chancellor should be thinking about tackling the problem now. Meanwhile, a survey by King’s College London (KCL) found that one in three university students believe AI could lead to job losses severe enough to incite civil unrest. The poll, part of a new tracker by the King’s Institute for Artificial Intelligence, surveyed 1,000 students and 1,000 non-students aged 16-29. While 34% of students expressed fear about AI’s impact on jobs, 52% of male students viewed AI positively.

Small business owners and trade groups have warned that long delays in the business rates appeals system are placing pressure on pubs, restaurants and independent retailers. Around 40,000 appeals are reportedly awaiting responses from the Valuation Office Agency, with average waiting times of 11 months and some cases taking far longer. Industry bodies including UKHospitality and the Federation of Small Businesses said firms are often forced to continue paying disputed rates while appeals are unresolved. The Booksellers Association warned the delays threaten the viability of independent shops already facing rising costs. HMRC said most cases are resolved early and that efforts are under way to improve processing times.

The Government is introducing the Commercial Payments Bill to combat late payments affecting small and medium-sized enterprises (SMEs). Business secretary Peter Kyle pointed out that 38 businesses close daily due to late payments, costing the economy £11bn annually. The bill will impose a 60-day cap on payment terms for large firms and set mandatory interest on late payments at 8% above the England base rate. The Small Business Commissioner will gain new powers to investigate and fine repeat offenders, with potential fines exceeding £10m. Kyle stated: “This has come from considerable, exhaustive consultation.”

The International Monetary Fund (IMF) has urged Chancellor Rachel Reeves to reconsider the triple lock pension and implement contingency tax measures to manage public debt. The IMF’s latest report highlights risks in spending forecasts and tax receipts, criticising reliance on ambitious efficiency savings. It suggests broadening the VAT base and reforming property taxes. The report also recommends indexing the state pension to the cost of living instead of the triple lock. The IMF raised its growth forecast for the UK to 1% for 2026, up from 0.8%. It also noted that the UK economy is “resilient” but warned that the ongoing Iran war and domestic uncertainties could hinder growth and lead to higher energy and food prices. Reeves said the upgrade “proves that this Government has the right economic plan.”

Andy Burnham has insisted he would not change the Government’s self-imposed fiscal rules were he to become Prime Minister. A spokesman for the Greater Manchester mayor, the current favourite to replace Sir Keir Starmer, also said Burnham would rule out exempting defence spending from the constraints. The statement calmed investor nerves after news of Burnham’s possible route to power prompted a spike in bond yields on Friday.

Alan Milburn’s upcoming report reveals that 10.6% of young people not in employment, education, or training (Neets) hold degrees. He criticises the Government for prioritising university funding over vocational training, which has left 32,000 students without places this year. Milburn says: “Too many young people with qualifications are finding themselves out of the labour market.” The report also highlights a significant decline in youth employment, with 12.8% of 16 to 24-year-olds classified as Neets, equating to 957,000 individuals. Recommendations for improving further education and the benefits system are expected.

Large UK businesses incurred £3.7bn in legal costs due to shareholder lawsuits over cyberattacks last year, according to a report by Gallagher and the Centre for Economics and Business Research (CEBR). Total losses from cyber incidents reached £11.7bn, with direct trading disruptions costing £5.4bn. Gallagher’s executive director, Laura Parris, noted that the repercussions extend beyond immediate recovery, stating: “The legal, financial and reputational fallout can drag on for months.” Firms spent £226m on external support and £51m on internal resources to manage these incidents.

Government spending on the elderly has surged, according to the Office for National Statistics. Between 1995 and 2024, government expenditure as a share of GDP rose from 36.9% to 46%. Spending on old age increased from 6.5% to 8.5% of GDP. Health spending also rose significantly, from 4.9% to 8.8%. The Office for Budget Responsibility warned that the triple lock pension is unsustainable, with pensioner spending projected to reach £196.2bn by 2031.