MPs have warned that exempting the United States from a global minimum tax deal could cost the UK £600m annually. The Commons Public Accounts Committee highlighted that the risk of lost tax revenue from multinational companies shifting profits remains high, despite a 15% global minimum tax rate. The Organisation for Economic Co-operation and Development brokered the deal, but the US is exempt from key parts. The PAC said HMRC’s approach to collecting tax from large businesses is “generally working well” but noted that there are still “significantly high” risks related to multinationals potentially diverting profits. Of the £70.1bn of tax under consideration as part of investigations into large businesses in 2025, HMRC estimates around £21bn of this faces international risks. Clive Betts, deputy chairman of the committee, commented: “HMRC needs to look into how companies are complying with new rules on minimum corporation tax rates, particularly after the US exempted its own firms.”

Businesses are experiencing delays of up to eight years for tax investigations by HMRC, according to a Public Accounts Committee (PAC) report. The report reveals that cases involving court disputes now take nearly twice as long as in 2019. On average, multinationals wait eight years and one month for resolution, compared to four years and nine months previously. Saying that this is “far too long,” the PAC said: “The complexity of the tax system does not help, nor does the large amount of information that HMRC requests from the large businesses it investigates.” It is noted that even non-litigation cases took an average of 17 months to conclude last year. A spokesman for HMRC said: “Our approach is delivering real results, bringing in additional tax £14.9bn in tax last year.”

HMRC faces challenges in getting sole traders to join its Making Tax Digital scheme, with analysis by NFU Mutual showing that only 400,000 have signed up since the financial year began. This is less than half of the 864,000 required to register by the August 7 deadline. Sean McCann, a chartered financial planner at NFU Mutual, said the initial number of registrations had been “relatively low,” noting that only 31% of those eligible had signed up by late April.

Prominent economists, including Lord O’Neill – a senior economic aide to Andy Burnham – have signed an open letter advocating for a single levy to replace six major taxes in the UK. They argue that current tax rates are rising faster than in comparable economies while public services decline. The letter references a report which suggests a new “national contributions” levy on all income, potentially raising an additional £75bn per year. The proposal also includes scrapping stamp duty and council tax in favour of a 1% property levy.

Business confidence has fallen to its lowest level in 18 months, with only 26% of companies optimistic about future activity, according to a survey by S&P Global. Concerns over rising labour costs, potential tax increases under a new Prime Minister, and weak consumer demand have contributed to this decline. David Owen from S&P Global said this “triple squeeze” has made firms “more hesitant to commit to spending.” The services sector reported the most significant drop in confidence, with fears of declining output at record levels.

Huw Pill, chief economist at the Bank of England, has indicated that interest rates may need to rise this year to control inflation, which is currently above the Bank’s 2% target at 2.8%. Mr Pill, a member of the Monetary Policy Committee (MPC), noted that productivity in the UK has slowed and said improving the efficiency of the economy is key to raising living standards. He added that he is “​concerned that we’ve ​been running the economy a little ‌bit ⁠hotter than the supply side.” Mr Pill was one of ​two members ​of ⁠the nine-strong MPC who  last month voted to raise ​interest ⁠rates from 3.75%.

Business Secretary Peter Kyle has called on UK pension funds to invest more in British companies, warning they may face legal mandates if they do not comply. He expressed frustration over the lack of investment despite Government initiatives, suggesting that asset managers should feel a “patriotic duty” to support the UK economy. Mr Kyle noted that while most pension providers allocate funds to UK assets, many overseas investors contribute more significantly. He emphasised the need for a robust industrial strategy to enhance economic growth outside London and the South-East.

Artificial intelligence is significantly boosting demand for office space in London, according to Knight Frank. AI companies have leased 661,100 sq ft so far in 2026, with expectations to reach 1m sq ft by the end of the year. Philip Hobley, head of London offices at Knight Frank, noted that AI firms are transitioning to permanent headquarters as they secure funding and grow. Toby Courtauld, CEO of London office developer GPE, stated: “AI is not London’s threat, it’s a growth lever.” The surge in demand is likely to increase rents for prime office spaces, which have already risen significantly since 2020.

The UK Research and Innovation Agency (UKRI) will reduce research funding by over £160m over the next four years due to rising costs. The Government has increased overall R&D spending to record levels, rising to £22.6bn a year by 2029/30, and UKRI’s share has risen from around £9bn to nearly £10bn. UKRI’s head, Prof Sir Ian Chapman, said the plan is to focus investment “where it makes the largest impact.” Priority will shift to AI, quantum technologies, and a national supercomputer.

UK music tourism reached a record £11.2bn last year, with this driven by large events by major artists like Oasis and Beyoncé. The UK Music report revealed that 24.7m “music tourists” attended events, marking a 4.8% increase from the previous year. Domestic tourists made up 85% of attendees, while overseas visitors rose by 27% to 2.1m. Spending included £5.7bn directly from tourists and £5.5bn indirectly on event-related costs.