The Guardian‘s Heather Stewart says that while Andy Burnham’s by-election victory did not trigger the financial market turmoil that some had predicted, he will face much greater scrutiny if he moves closer to becoming Prime Minister. She says investors will increasingly focus on whether he has a credible plan for managing the public finances. Mr Burnham, it is noted, has criticised a rise in employer National Insurance contributions, pledged to maintain the pensions triple lock and ruled out increases in income tax or employee National Insurance. He also wants to reduce utility bills and is open to greater public ownership of utilities, which could require substantial government borrowing. Ms Stewart says that Mr Burnham and any future Chancellor would need to identify new sources of revenue, with higher capital gains tax, a bank levy, changes to taxes on expensive homes and a wealth tax cited as possible options.

According to new HMRC data, frozen tax thresholds provided the Chancellor with an additional £9.8bn boost during April and May. Total tax and National Insurance receipts reached £153.7bn, up from £143.9bn last year, with income tax generating £54.6bn. The Telegraph points out that Rachel Reeves extended these freezes despite Labour’s previous election campaign promise not to raise taxes on working people. Sarah Coles, of investment platform AJ Bell, commented: “The impact of this horrible stealth tax becomes more evident with each passing year. Every pay rise has pushed millions of people into paying more tax and more at higher rates.”

The Government is being urged to reduce VAT from 20% to 10% on hospitality firms. The campaign, led by celebrity chef Tom Kerridge and UK Hospitality, claims the industry is overtaxed, facing rising costs and competition from supermarkets. A petition has gathered over 220,000 signatures, with support from more than 50 MPs – Labour leadership hopeful Andy Burnham has also backed a VAT cut for hospitality. However, tax expert Dan Neidle of Tax Policy Associates warns a cut could cost taxpayers £12bn and disproportionately benefit larger firms. He advocates for a reversal of Labour’s increase to employee NICs or reform of business rates instead.

The Insolvency Service reported 11,223 personal insolvencies in England and Wales in May, marking a 10% increase from the previous year. This is also 2% higher than April’s numbers. Meanwhile, the number of registered company insolvencies in England and Wales was 1,868 in May, 10% lower than in April, and 16% lower than in May 2025. Robert Young at Azets, commented: “The reality is that despite the fall in insolvencies compared to last month and last May, numbers are still high and businesses are still struggling – with many facing an uncertain future.”

The Sunday Times‘ Hannah Prevett talks to entrepreneurs about what they want from a new Labour Prime Minister as Andy Burnham positions himself for the top job. The UK economy is desperate for an injection of confidence, said one hospitality founder, while another business leader voiced concern that Burnham will struggle to deliver a national economic strategy despite his success in Manchester. The lack of incentives for entrepreneurs to scale, exit then recycle wealth is another worry. Prevett concludes that Burnham’s chief challenge will be persuading entrepreneurs “that the Government sees entrepreneurs not merely as a source of revenue, but as partners in building Britain’s future.”

The House of Commons’ Business and Trade Committee has warned that Labour’s reset of UK-EU relations will contribute just 0.5% to economic growth by 2040. Committee chairman Liam Byrne said there is a “yawning gap” between government claims and actual progress.

The UK has lost £74bn in goods exports since Brexit, according to the Resolution Foundation. The decline, which represents a 20% drop in goods exports from 2019 to 2024, is the sharpest among G7 nations. A British Chambers of Commerce survey shows that 54% of UK exporters believe the post-Brexit trade agreement has hindered their sales to the EU, while just 16% said the trade agreement has helped them to increase their exports. Separately, a report from the Centre for Policy Studies says the UK’s economy has grown by 12.1% since the 2016 Brexit referendum and by 5.3% since leaving the EU, outpacing France, Germany, and Italy.

UK government borrowing reached £23.3bn in May, exceeding forecasts by £5.6bn, according to the Office for Budget Responsibility (OBR). This marks the highest borrowing for May since 2020, driven by increased spending on debt interest, public services, and benefits. Borrowing for this financial year now stands at £46.3bn – £7.7bn over the OBR’s forecasts, while the national debt stands at 95.1% of GDP, a level not seen since the early 1960s.

Analysis from the Resolution Foundation reveals that 24-year-olds today earn more than any previous cohort since the 1950s. Their average weekly pay is 12% higher than that of peers born in the late 1980s, despite concerns over student debt and job opportunities. However, Charlie McCurdy from the foundation stressed the importance of addressing the NEETs crisis, saying: “Getting to grips with Britain’s NEETs crisis is crucial for getting the careers of more Gen Z workers off the ground.”

Sir John Vickers, who chaired the Government-backed commission that proposed ring-fencing for the banking sector in 2011, has warned the Conservatives against scrapping the regulations. Sir John argues that ring-fencing “helps to sustain safely the UK’s unique combination of banks that are both vital to the domestic economy and at the heart of a great international financial centre and is vital for the UK’s financial stability.”

The Financial Conduct Authority (FCA) has significantly reduced the number of secret investigations into regulated firms, dropping to 31 in the year to March, the lowest in eight years. This comes despite the introduction of new consumer duty rules aimed at protecting customers, leading critics to argue that the FCA – with a budget of nearly £800m – is neglecting its oversight responsibilities. Andy Agathangelou, founder of the Transparency Task Force, said: “You can’t build a thriving financial sector on declared good behaviour and voluntary promises.” The FCA maintains that its approach is based on identified risks.

The King and Prince William will disclose their tax payments for the financial year 2024-25, marking an historic move towards transparency in royal finances. Buckingham Palace said the decision reflects the King’s desire for accountability. The King will reveal his tax on profits from the Duchy of Lancaster, while Prince William will disclose his payments from the Duchy of Cornwall. Sources previously indicated that William pays up to £7m annually in tax, placing him among the top taxpayers. A new report on royal finances will also be published to enhance clarity. Elizabeth II started paying income tax in 1993 but never declared her tax bill.