Reform UK has announced a plan to eliminate income tax on overtime for those earning under £75,000, with party leader Nigel Farage saying that if elected, it will “make work pay.” The party added that “the hardest workers receive nothing from the Government but eye-watering bills and sky-high taxes.” The £5bn annual tax cut would target workers who exceed a 40-hour week. The policy is designed to incentivise productivity and increase take-home pay. Funding will come from a £40bn cuts programme, including welfare reforms and reductions in foreign aid. Julian Jessop, a senior fellow at the Institute of Economic Affairs, warned of “unintended consequences,” noting that many firms already pay higher rates for overtime and warning: “If overtime is taxed at a lower rate, firms might just reduce pre-tax pay, leaving workers no better off.” Helen Miller from the Institute of Fiscal Studies said the plan could also create an incentive to have more work classified as “overtime” in order to reduce tax payments.

The tax burden on UK households has increased significantly, with HMRC collecting £87.3bn in taxes in April, £6.3bn more than last year. Workers contributed £52.5bn in income tax and National Insurance, as frozen thresholds pushed more into higher tax brackets. Sarah Coles from AJ Bell stated: “These figures are set to climb even further.”

UK public sector borrowing reached £24.3bn in April, exceeding forecasts by £3.4bn. The Office for National Statistics (ONS) reported that debt interest repayments hit a record £10.3bn for April while predicting total borrowing could exceed the Office for Budget Responsibility’s (OBR) estimate of £115.5bn for the year. ONS chief economist Grant Fitzner said increased spending on benefits contributed to the rise in borrowing. Lucy Rigby, Chief Secretary to the Treasury, commented: “We are cutting borrowing and debt… while driving growth through £120bn of additional capital investment over the Parliament.”

Research by the Finance Innovation Lab estimates that £325bn of illicit money flows through the UK annually, with this equating to more than 10% of GDP. This figure includes funds linked to corruption, money laundering, and tax evasion. The report highlights the UK’s role as a hub for dirty money, especially with its overseas territories. The APPG on Anti-Corruption and Responsible Tax is backing the Finance Innovation Lab’s calls for Government action, including greater funding for state investigators including the National Crime Agency and Serious Fraud Office.

Reforms to UK financial regulation will cut costs for banks and encourage more lending, with this set to boost the City of London by more than £1.6bn over a decade.

The UK faced its highest number of redundancy warnings since 2020 last year, with 315,605 jobs flagged and payouts exceeding £477m. Data from the Liquidation Centre revealed over 2m redundancy warnings were issued from 2020 to 2025, marking a 45% increase since 2021. The labour market is under pressure due to rising costs and declining demand. Early 2026 shows a further increase, with 736 employers filing for redundancies, risking 56,396 jobs. Lawyers say the Employment Rights Act has prompted employers to let more staff go and businesses are expected to pre-empt other changes coming into force in 2027 with more layoffs.

Steve Hare, chief executive of accountancy software firm Sage, says AI should be used to “elevate” work done by humans not “replace them completely,” saying: “There are clearly things a machine can do better… but in the end humans have judgement and context.” His comments come after Bill Winters, the CEO of Standard Chartered, said AI would replace “lower-value human capital” when announcing plans to cut 8,000 jobs.

According to the Institute of Chartered Accountants in England and Wales (ICAEW), demand for accountants in the UK remains robust despite the rise of AI. The ICAEW’s research indicates that while AI automates routine tasks, 74% of surveyed mid-tier firms plan to hire more staff with expertise in data analytics and technology. Alan Vallance, chief executive of ICAEW, said: “Demand for accountants remains high, but the nature of early-career accounting roles is expected to change.” Additionally, firms are shifting hiring preferences, favouring school leavers over university graduates due to new employment laws and funding cuts.

The National Preparedness Commission has warned that Britain’s supply chains are ill-prepared for major shocks, such as wars. The report highlights the UK’s lag in stockpiling critical supplies compared to European nations. It also notes the impact of global events on the UK’s access to essential materials. A Government spokesperson insists that the UK’s supply chains are strong and resilient, adding: “We actively monitor for risks.”

High streets in England and Wales are showing signs of recovery, with 723 new retail stores opening over the past year, according to the Valuation Office Agency. The analysis by tax consultancy Ryan shows an increase of more than 13 stores per week, although more than 6,000 retail premises have closed in the last five years. London saw the largest decline, losing 1,266 stores.

Labour’s new AI chatbot has been found providing advice on avoiding inheritance tax. Launched to assist with everyday queries, the bot suggested methods like using overseas trusts to reduce tax liabilities. Despite Labour’s plans to close loopholes in inheritance tax from April, the chatbot initially refused to provide such advice. However, after multiple prompts, it detailed legal strategies for minimising tax, including bare trusts. James Bore, a tech expert, noted that AI chatbots may overlook policies to satisfy user requests. A government spokesman clarified that the bot shares existing guidance, not new advice.