President Donald Trump has threatened a 100% tariff on imports from countries imposing taxes on US digital services. In a social media post, he specifically targeted European nations discussing such taxes and emphasised that this new tax would override existing trade agreements. Britain’s 2% Digital Services Tax on major search engines, social media platforms, and online marketplaces was introduced in 2020. It applies to multinationals like Apple, Google, Meta, and Amazon, targeting firms with global digital revenues exceeding £500m and UK revenues over £25m. The charge raised around £800m in 2024/25, up from £678m in 2023/24.

Business groups warn that presumptive Prime Minister Andy Burnham could harm the UK economy by increasing wealth taxes. Allies are pushing to raise capital gains tax from 24% to potentially 45% and introduce an “exit tax” on departing investors. Critics, including The Entrepreneurs Network, argue these high taxes would deter international talent, push out current business owners, and make alternative global investment hubs significantly more attractive for innovative global start-ups.

MP Louise Haigh has called for a major overhaul of the tax system, including aligning capital gains tax more closely with income tax, ending the CGT uplift on inherited assets and replacing stamp duty with an annual property and land tax. Haigh has also backed relaxing fiscal rules to allow greater borrowing through the National Wealth Fund and proposed splitting the Treasury into separate spending and growth departments. With Haigh tipped to land a senior role in Andy Burnham’s Cabinet, her proposals have fuelled expectations of higher taxes and increased borrowing under the next Prime Minister.

Wes Streeting’s proposal to align capital gains tax (CGT) with income tax rates could cost the Treasury nearly £8bn annually, according to analysis by IG. Streeting claims the change would generate £12bn and create a fairer tax system. However, IG’s findings suggest it would lead to losses as homeowners and investors delay asset sales. Michael Healy from IG said: “Aligning capital gains tax with income tax rates would make investing less attractive.” The Treasury’s CGT revenue fell from £14.9bn to £13.6bn following recent rate increases.

Andy Haldane, president of the British Chambers of Commerce and a former Bank of England chief economist, is calling for a major overhaul of the UK tax system, arguing for replacing or reforming taxes like stamp duty and council tax in favour of more growth-friendly alternatives such as land value taxes and broader structural changes. He also warns that raising capital gains tax too aggressively could harm investment, and says the current system needs long-term reform rather than short-term fixes.

Elon Musk becoming the world’s first trillionaire has reignited discussions on taxing the ultra-rich, although concerns remain about the feasibility of enforcing such taxes on the wealthy. Noting that “the typical American household would have to work more than 11m years to make Elon Musk’s level of wealth,” US Senator Elizabeth Warren said: “We need a wealth tax.”

Job vacancies have risen for four consecutive months, reaching nearly 800,000, according to Adzuna. However, graduate roles have seen a significant decline, dropping over 40% in May compared to the previous year, marking the largest decrease on record. Meanwhile, the Resolution Foundation has raised the alarm about the rising number of young people not in employment, education, or training (NEET), now exceeding 1m. The think tank suggests targeted subsidies, like the youth jobs grant, are more effective than tax breaks for encouraging firms to hire young workers.

Andy Burnham plans to unveil a ten-year strategy for power today, focusing on devolution and tax reforms. He will seek to transfer financial powers to the North, potentially introducing new taxes on property and capital gains that will fall disproportionately on better-off families in the South. He aims to invest in regional infrastructure and education, claiming it will benefit the entire country in the long run. The new Makerfield MP will ask for ten years to deliver on his mission to deliver “good growth in every postcode” of the UK. But opposition leaders say Burnham is lacking a mandate from the electorate and demand he explain his plans to Parliament.

A survey of more than 500 Scottish businesses found 32% want business rates cut, while 69% said they have faced rising costs, including higher rates bills. Among affected firms, 51% raised prices, 27% delayed growth plans, 22% relied on savings or investment, 18% introduced new charges and 14% cut staff. Two-fifths said they were more concerned about survival than three months ago. Malcolm Robertson, founding partner at Charlotte Street Partners, said the findings “should trouble any politician” as the Scottish Government begins an independent review of “anomalous” non-domestic rates hikes, with retailers, manufacturers and service firms all facing pressure from April bills and wider inflation.

The Government is considering reviving a £5m ‘golden visa’, allowing wealthy investors fast-track UK citizenship to attract capital and talent – but faces resistance over money-laundering risks and limited growth benefits.

Chris Hayward, policy chairman of the City of London Corporation, writes in City AM to stress the City’s commitment to driving UK economic growth despite the current political uncertainty. Hayward points to the need for clearer pathways into work and improved financial resilience, noting that nearly 25% of UK employees lack emergency savings. He advocates for regulatory and policy reforms that back the Square Mile to ensure “everyone can enjoy the fruits of growth, inside and outside the capital.”

The UK economy is under significant pressure, with a bleak outlook for businesses, according to the Confederation of British Industry (CBI). Firms anticipate a decline in activity for the three months leading to September, continuing a trend of pessimism that began in late 2024.

The Bank for International Settlements has warned that high AI spending by tech giants could trigger an investment bust, destabilising markets if financial returns underperform expectations. Record-high public debt across key economies was also a concern, along with stubborn inflation and oversight of non-bank financial firms.

Andy Burnham is being urged to access a £150bn surplus in town hall pension funds to enhance local economies without increasing taxes or borrowing. The Local Government Pension Scheme has ample funds, with £13bn contributed in the 2024/25 financial year. Ros Altmann, a former Pensions Minister, said: “It’s a scandal… Local authorities can’t fill potholes but they are paying huge sums into pension funds that don’t need the money.”

The Federation of Small Businesses (FSB) reports that rising employment costs and Labour’s minimum wage increases are jeopardising small business owners’ ability to earn a living wage. In a submission to the Low Pay Commission (LPC), the FSB points out that many owners are forced to absorb rising costs, leading to closures and detrimental retirement decisions.