A new Insolvency Service taskforce aims to combat “abusive phoenixism” among rogue directors, with this looking to address tax losses of around £800m. The Chancellor has committed £25m in funding to support investigations into suspicious insolvencies amid concerns over directors who deliberately liquidate or dissolve their companies to evade tax and write off their debts. Phoenixism accounted for 22% of the £3.8bn total tax losses seen in 2022/23, according to HMRC. The Company Directors Disqualification Act will be amended to disqualify more directors.

A poll by the British Chambers of Commerce (BCC) shows that the proportion of businesses that plan to increase investment has fallen to 17% in the past three months, with this down from 21% in the previous quarter. This downturn is attributed to significant tax increases and rising operational costs, which have hindered capital spending. The research found that 66% of the 4,744 businesses surveyed were worried about rising inflation, making it the leading concern.

The Tony Blair Institute for Global Change has warned Andy Burnham against equalising capital gains tax with income tax. Top allies of the assumed next Prime Minister have advocated for such a move. But Guy Ward-Jackson, a senior analyst at the institute, says in a piece for the Telegraph that aligning the two levies would undermine risk and reward incentives for entrepreneurs “and send entirely the wrong signal” and make the country poorer. HMRC’s own modelling suggests that a 10% increase in the top level of CGT would reduce tax receipts by £3.6bn. In a separate piece for the same paper, Kemi Badenoch, the Conservative leader, said equalising the rates of income tax and capital gains tax, “would kill investment and risk-taking entirely,” adding: “Even Rachel Reeves backed away from that terrible idea.”

Forecasts by Ryan suggest that Andy Burnham’s proposed business rates overhaul – which would raise relief for small high street firms – could remove over 140,000 premises from rates, but cost about £880m annually in lost revenue. Mr Burnham has suggested funding the plans through higher taxes on large warehouses used by online retailers like Amazon, shifting the burden to larger commercial properties.

Dr Chris Wales, a former adviser to Gordon Brown, warns that HMRC may soon use artificial intelligence (AI) to monitor individuals’ and businesses’ financial activities without their consent. He pointed to the Spanish tax authority’s model, which allows extensive data collection, as a potential blueprint for the UK. Wales expressed concern over the lack of parliamentary debate on these powers. An HMRC spokesperson defended their practices, asserting that data collection is governed by strict legal safeguards and that AI supports, but does not replace, human oversight.

Traders have placed their largest bet against the pound in nearly a decade, totalling £7bn. This comes as Andy Burnham prepares to take over as Prime Minister, with expectations that sterling will weaken if his government shifts left. Chris Beauchamp, chief market analyst at IG, commented: “The pound is often the market’s first pressure point when confidence in the UK outlook starts to deteriorate.” A weaker pound could lead to higher inflation and prolonged interest rates.

Writing in the Sunday Times, former PM Rishi Sunak asserts that the UK should follow the example of the US and allow weak businesses to go bust. He says the most underappreciated reason for the US’s success is its embrace of “creative destruction” – the “recognition that failing fast and trying again is a necessary part of entrepreneurship.” Britain, Sunak concludes, needs “to recover that sense of dynamism that drives economic growth” and resist “politically popular interventions” or risk seeing “our economic power destroyed.”

Soaring energy costs are threatening UK manufacturing, Make UK has warned. The trade body said that 90% of manufacturers have faced significant energy bill increases since 2022, with 13% voicing concern that further hikes could destroy their businesses. The loss of this 13% could result in an £85bn hit to the economy. Make UK chief executive Stephen Phipson emphasised that manufacturers are not seeking subsidies but need urgent action to address energy costs.

Andy Burnham has pledged to keep the UK’s pension triple lock after being asked about the policy in a Q&A session on Reddit. He has also proposed exempting young people from income tax for their first three years of full-time employment. This was cost £3.5bn but would help Gen Z voters save for a house deposit. However, tax expert Dan Neidle warned that parents would attempt to divert their earnings through their children so they wouldn’t have to pay income tax either.

Sir Charlie Mayfield, the former chair of John Lewis, argues that addressing unemployment due to long-term illness could significantly enhance economic growth. His Get Britain Working taskforce, supported by over 250 major employers, aims to reduce the £212bn annual cost of ill-health-related work absences by improving communication between employers and employees during sickness, return-to-work outcomes and disability participation.

Britain’s services industry experienced its largest decline in three and a half years, with the purchasing managers’ index (PMI) dropping to 48.8 in June. This marks the second consecutive month below the growth threshold of 50. The slump is attributed to rising costs from the Iran war and ongoing political uncertainty, which have dampened business confidence. Martin Beck, chief economist at WPI Strategy, noted: “With geopolitical tensions easing and oil prices falling sharply, June may well prove to be the low point.”

The Telegraph’s Dia Chakravarty suggests Labour may come to regret handing more power to the office of Budget Responsibility (OBR) considering its newly appointed chief, Jonathan Haskel – a professor of economics at Imperial College London – has already issued a warning over the Employment Rights Act, which he fears will add “more costly labour market regulation” on top of burdensome tax hikes for employers.

Netwealth boss Charlotte Ransom says the wealth management industry has not properly addressed the issue of complicated and hidden fees, accusing some firms of using “deliberate obfuscation” to disguise their true costs.

With up 20% of Brits now running small online businesses – often as a side hustle – Harvey Dhillon, CEO of Zmartly, warns that many new sellers overlook critical costs like platform fees and shipping. He advises sellers to track profit margins closely and prioritise products that yield better returns.