Business confidence in the UK increased slightly in May, with a monthly barometer from Lloyds rising three points to 47%. This follows a decline in April and sits just below the 12-month average of 48% – but is above the historical average of 30%. The report shows that confidence in construction rose 15 points to 44%, while retail sentiment increased by 8 points to 53%. However, manufacturing confidence fell to 43%. On a regional basis, firms in the North East were shown to be the most optimistic about their prospects, with the ranking rising 23 points to 69%. Northern Ireland, the West Midlands, and the East of England also saw double-digit jumps in confidence. The survey gauged the opinions of 1,200 companies with a turnover above £250,000.

Analysis from FICO reveals a significant decline in UK credit card spending, with the average down 6.6% month-on-month to £740. On an annual basis, average monthly spending was up just 0.3% on a year ago. Payment rates also fell, with the percentage of overall balances paid down 1% month-on-month and 3.7% year-on-year. Delinquency rates are rising, with a 29.5% month-on-month increase in customers missing one payment. The average active balance is 4.3% higher than a year ago at £1,925.

The Treasury is set to spend an additional £5bn on pandemic-related measures, bringing the total cost for taxpayers to £385bn. Since the pandemic began in 2020, over £80bn has been allocated to the health department, while the Treasury has spent nearly £50bn. The update reveals that spending was £11.4bn higher than previously estimated, with loan scheme losses contributing to the shortfall. Efforts to recover lost taxpayer funds have seen around £400m recouped so far.

One in seven university graduates is currently not in education, employment, or training, according to a review led by Alan Milburn which suggests that youth worklessness costs the UK £125bn a year. He has emphasised the need for more job opportunities, saying officials have “got to make it more possible for employers to create jobs and opportunities for young people to progress.”

Retailers are struggling to hire young people as tax increases – including the hike in employer National Insurance contributions – and changes to workers’ rights impact the job market. Helen Dickinson, chief executive of the British Retail Consortium, notes that 1.01m people aged 16 to 24 are not in education, employment, or training, the highest total since 2013.

Changes to tax rules due in April 2027 would see pension pots of people who are over 75 when they die subject to both inheritance tax and income tax, leading to what critics call a “double tax” of up to around 67%. Conor McManus, director of private client tax at Menzies, says the changes “could make the savings crisis worse.”

The Scottish Greens have urged First Minister John Swinney to tax the wealthy instead of cutting public sector jobs. Jamie Livingstone of Tax Justice Scotland argues that Scotland should “start taxing wealth properly to help fund the fairer future people were promised.”

With research by Omnisend showing that 25% of UK adults have additional income sources – with side hustles contributing £8.5bn a month to the economy – experts have warned that many people may not realise supplementary income can attract HMRC scrutiny.

The Government has announced that from mid-2027, exporters of meat, plants, and packaging will no longer need costly veterinary certificates to meet EU standards. This change aims to alleviate the bureaucratic burden that has hindered UK food exports since Brexit. Biosecurity Minister Helene Hayman said deal could add £5.1bn a year to the economy. She added: “By cutting unnecessary delays and paperwork at the border, the agreement will make it easier for businesses to sell our world-class produce to European customers, support jobs and help ease pressure on food prices for families.”

KPMG US is exploring partnerships with AI start-ups in Silicon Valley in an effort to enhance access to technology and adapt more swiftly to changes in the industry.

UK manufacturing is valued at £518bn and employs 7m people, yet it remains largely “invisible” to Gen Z, according to new research by Nestlé. While 59% of 16 to 24-year-olds find manufacturing interesting, only 4% consider it a top career choice. Richard Watson, chief executive of Nestlé UK, commented: “Young people have the skills that modern manufacturing needs, but there’s a perception gap we need to close.”