Chris Barlow, the head of legal and compliance at Nomura, has warned that increased regulatory pressure could lead banks to relocate operations from the UK. Speaking to the Following the Rules podcast, he pointed to the detrimental effects of “short-termism and political point-scoring” in Westminster on investment decisions. His comments reflect growing concerns among bankers about potential punitive measures from a left-leaning Labour government, City AM notes.

Manufacturers in the UK are facing severe challenges due to impending steel tariffs, warns the British Chambers of Commerce (BCC). The Government plans to reduce tariff-free steel imports by 60% and impose a 50% duty on excess imports. However, William Bain, BCC’s head of trade policy, said the changes could lead to significant financial strain on sectors reliant on imported steel, including carmakers and construction firms.

The Pensions Policy Institute predicts that the percentage of pensioners renting will rise from 6% to 17% by the 2040s. Renting in retirement could cost an additional £398,000 compared to owning a home, according to analysis by Standard Life. Experts warn that this trend may lead to increased reliance on housing benefits and a reduction in assets to pay for care leading to economic crisis.

The Chancellor has told Cabinet colleagues that she wants to avoid immediate tax increases to pay for more defence spending, calling for them to find ways to cut other departmental spending instead. Speaking at the FT Global Bond Summit, Rachel Reeves said she “very much hoped” that more tax increases could be avoided amidst a row over a shortfall in spending on defence, which triggered the resignation of Defence Secretary John Healey last week.

The UK Government is reconsidering the timeline for reforms to the de minimis regime, which allows imports under £135 to enter without customs duties. Initially set for 2029, ministers may introduce some changes sooner due to pressure from British retailers like Sainsbury’s and Currys. These retailers argue that the exemption favours overseas competitors like Shein and Temu.

Unused pension pots will be subject to inheritance tax from April 2027, impacting families who rely on pensions for wealth transfer. The change primarily affects those with defined contribution pensions. Financial planners advise individuals in their 50s to reassess their pension strategies, as the new rules could significantly increase tax liabilities for beneficiaries, especially if funds pass to non-exempt individuals.

Reform’s proposal to cut Employer National Insurance for British workers but not immigrants has drawn criticism for failing to address the root causes of unemployment. But Joanna Marchong, head of communications at the Adam Smith Institute, argues that the focus should be on creating employment opportunities rather than merely reshuffling who fills them.

AI adoption among small businesses in Britain has surged to 55%, up from 20% in 2023, according to the Federation of Small Businesses. Despite this growth, concerns about AI risks have also increased significantly, with 92% of businesses expressing worries. The main issues include inaccurate responses (54%) and potential security breaches (39%). On a positive note, businesses that adopted AI reported an average revenue increase of 3%.

AI disruption poses significant risks to law and accountancy sectors, prompting private equity firms to reconsider investments in professional services due to potential revenue declines.

Sir Keir Starmer has announced a £1.3bn investment from French and Indian companies for clean energy and AI projects in the UK. The funding aims to create over 1,400 jobs in Manchester, Leeds, and Birmingham. The investment includes £1bn from InfraVia for battery storage and a flexible energy platform. Hexaware Technologies will contribute £25m, while Atri Energy Transition adds £300m for large-scale battery development. The Prime Minister said at the G7 summit: “These investments will create thousands of high-skilled jobs, back British innovation and strengthen our energy system.”

The UK and the EU have agreed to hold a “reset” summit next month after several postponements due to disagreements over the proposed youth mobility programme and doubts over Sir Keir Starmer’s future. The sanitary and phytosanitary agreement is already partly agreed while talks are also progressing on an emissions trading system. Observers suggest Sir Keir may have promised significant concessions to secure the July 22 date given Brussels was thinking his successor might pursue a more ambitious reset.