The boss of AO World has said Labour policies had prompted the company to offshore 200 jobs. The online electricals retailer said it had already moved 150 sales and call-centre jobs to South Africa, with 50 more to follow. This generated annual savings of £2m, expected to rise to £4m. Founder John Roberts said Labour were living in an “economic fantasy land” and failing to understand the impact of higher taxes and wage costs on employers – rising NICs and minimum wage increases added £8.5m to its costs, AO said. Profits rose 16.1% to a record £50.5m, while revenues increased 11.4% to £1.27bn.

Angela Rayner, the former Deputy PM, has demanded Labour uphold its commitment to equal pay for all adults, including 18 to 20-year-olds. She argued that reducing wages for young people will not resolve the NEETs crisis. “I think actually giving young people the opportunity to have a good, secure job is the way we push forward, so they can get housing, so they can get on in life, and have that sense of security.”

The Bank of England is expected to maintain borrowing costs at 3.75% following better-than-anticipated inflation data. The Consumer Prices Index (CPI) inflation remained at 2.8% in May, lower than the predicted 3%. Despite this, inflation is anticipated to rise in the coming months due to the ongoing impact of the Iran conflict on the economy.

House prices in the UK increased by 0.7% in April, reaching an average of £270,000, according to government statistics. This growth, however, is misleading as prices dipped last year due to the end of the stamp duty holiday. Sarah Coles, head of personal finance at AJ Bell, pointed out that most sales reflected in the data were agreed before the Iran war significantly impacted the market. She added: “Hats off to the property market for its resilience in April.”

Kemi Badenoch, the Conservative Party leader, plans to initiate an “economic revolution” in the City of London by removing post-financial crisis regulations. In her speech at TheCityUK conference today, she will advocate to abolish ring-fencing rules that separate retail and investment banking and reduce capital buffer requirements. She will also call for the Financial Ombudsman Service to be replaced, claiming the body deters lending. However, writing in the FT, director of the NIESR David Aikman says the risks that existed before the last crisis still exist and now is not the time to weaken the leverage ratio backstop.

HMRC has reported a significant rise in inheritance tax enquiries, reaching 4,940 in the last financial year, an 18% increase from the previous year. This comes as IHT receipts hit a record £8.5bn, driven by frozen thresholds. Nikita Cooper, director at Price Bailey, noted that only 40% of compliance checks led to an amendment, down from 45% the year before and 83% in the 2021 financial year. “This is unfair on the taxpayers who are coping with bereavement,” she added.

HMRC has successfully appealed against Bolt’s use of the tour operators’ margin scheme (TOMS) for VAT calculations. The Court of Appeal ruled that Bolt does not qualify for TOMS, which allows businesses to pay VAT only on their profit margin. The decision affects an estimated £190m in unpaid VAT, requiring Bolt to charge VAT on the entire fare instead of just its commission. HMRC argued that Bolt’s services are not comparable to those of traditional tour operators. The ruling may also impact Uber, which is facing a similar £1bn VAT case.

Brexit has caused a 12% decline in UK exports to the EU, according to research from the Centre for European Reform. They found that services exports are 7% lower and goods exports 16% lower than if the UK had remained in the EU. The majority of the decline stems from leaving the single market, with regulatory costs significantly impacting trade.

Parents in the UK anticipate providing financial support to their children until the age of 26, according to a survey by M&G. Only 9% believe their children will be self-sufficient by 21, while 18% expect to support them into their thirties. The survey also revealed that 24% of parents plan to assist with home deposits, forcing many to adjust their lifestyles.