The UK’s inflation rate has decreased to 2.8% for the year ending in April, down from 3.3% in March, according to the Office for National Statistics (ONS). ONS chief economist Grant Fitzner said the fall was driven by reduced electricity and gas costs. However, inflation may rise again, with the Bank of England warning it could exceed 6% if there is a long delay in reopening the Strait of Hormuz. Yael Selfin, chief economist at KPMG, said the 2.8% rate of inflation was “likely as low as it gets for some time. We anticipate that inflation will trend higher through much of 2026, heading towards 4% by the end of the year.”

The Bank of England plans to issue a digital gilt, aiming to attract more investors and reduce government borrowing costs. Deputy governor Sarah Breeden asserts that these blockchain-based bonds could offer lower yields and enhanced functionality. The initiative positions the UK as the first G7 nation to adopt all-digital government bonds. Breeden made the comments at the City Week conference shortly after suggesting the BoE may look to water down its approach to regulating the stablecoin and token assets space following a backlash from the crypto sector.

HMRC has been accused of overtaxing savers due to errors in calculating interest on bank accounts. An investigation by the Telegraph revealed that taxpayers were billed thousands for non-existent or shielded interest. Richard Fuller, shadow chief secretary to the Treasury, said: “HMRC has been taking money it shouldn’t.” Issues date back to 2016 when new reporting rules forced banks to report how much savers had earned in interest each year to HMRC. Financial advisers report a rise in cases of incorrect tax codes linked to bank data. HMRC acknowledged the problems and urged taxpayers to report inaccuracies.

The proposed high-value council tax surcharge may increase the number of homes affected to 230,000 by 2033. Currently, 138,818 homes in England and Wales are valued at over £2m. If property prices rise by 2% annually, this number could grow significantly. Aneisha Beveridge from Hamptons said: “What sounds like fairly small changes in values on paper can quickly affect the number of people paying the mansion tax.” The surcharge will range from £2,500 to £7,500 based on property value, raising concerns for “asset-rich, cash-poor” households.

The Centre for London has proposed replacing stamp duty and council tax with a new property wealth tax (PPT) to address the housing crisis. The thinktank claims this would encourage downsizing and generate funds for social housing, potentially financing 106,000 affordable homes over the next decade. The report highlights growing housing inequality, with the wealthiest homeowners gaining more space than lower-income households. Rob Anderson, director of research at the Centre for London, said: “By every metric that matters, the housing crisis is at its worst.”

Andy Burnham, Labour’s candidate for the Makerfield by-election, has declined to commit to the party’s manifesto promise to not raise taxes. Burnham has previously advocated for higher taxes on the wealthy, including raising the top income tax rate to 50p.

UK house prices stalled in March, with the average home remaining at £268,000, according to the Office for National Statistics. Annual price growth slowed to 0%, down from 1.7% in February, while average prices fell 0.4% month-on-month. England recorded a 0.6% annual decline to £290,000, with London seeing the sharpest drop at 2.1%, marking its eighth consecutive monthly fall. In contrast, prices rose 2.9% in Wales to £213,000, 1.6% in Scotland to £187,000 and 7.4% in Northern Ireland to £198,000. Experts said global uncertainty and changing expectations around interest rates have affected mortgage pricing and buyer confidence.

The Government has extended the 5p cut on fuel duty until the end of the year to ease pressures on drivers after the price of petrol and diesel rose following the US-Israel war in Iran. The reduced tax rate was going to be phased out in September. Downing Street said the fuel duty freeze would cost £455m for the current tax year. Sir Keir Starmer also announced plans to cut the fuel duty rate on red diesel by over a third and provide a 12-month holiday on vehicle excise duty for HGVs. Meanwhile, Labour has relaxed sanctions on Russian oil refined into diesel and jet fuel from third countries. Some sanctions on the transport of Russian liquefied natural gas (LNG) were also lifted.

Rachel Reeves has abandoned her push for a price cap on essential groceries after supermarkets slammed the idea. The Chancellor has asked grocers to cap how much they charge shoppers for staple items such as bread, eggs and milk in return for relaxing regulations. But retailers called on the Government to cut taxes and other expenses instead of trying to control prices. Andrew Bailey, the governor of the Bank of England, told MPs that “artificially moving prices relative to costs” was unsustainable in the long run, adding to pressure on Labour to scrap the plan.

Job cuts in the professional services sector, particularly among the Big Four, are leading to increased workloads and stress for remaining staff. Many employees are working excessively long hours, with one source reporting shifts from 6am to 1am. “Staff have been in tears due to the workload,” they said. This situation is exacerbated by stalled pay rises and promotions. The reliance on AI for client work has also raised concerns about quality, as mistakes can severely damage a firm’s reputation.

The UK has become the first G7 country to secure a trade deal with the Gulf Cooperation Council (GCC), projected to boost the economy by £3.7bn annually. The agreement eliminates tariffs on key exports, including food and medical equipment, and introduces commitments on data flow and anti-corruption. The deal is expected to enhance UK exports to the GCC, which currently stands at £53bn, by 20%. Anna Anthony, EY UK regional managing partner, commented: “The UK exported more than £20 billion in services to GCC countries last year, and this agreement should create even greater opportunities for UK professional services businesses in these high-growth markets.”

Jeff Bezos has argued that low-paid Americans should not pay federal income tax, labelling the taxation of some Amazon workers as “absurd.” Speaking to CNBC, he stated that the “bottom half” of US taxpayers should be exempt from federal income tax, highlighting the financial strain on lower earners. He cited a nurse in Queens earning $75,000 annually, questioning why they pay over £1,000 monthly in taxes. His comments may intensify scrutiny over Amazon’s tax practices, which have faced criticism for years.