City experts have warned that the Bank of England may consider an interest rate increase amid concern that rising oil prices will drive up inflation. HSBC economist Elizabeth Martins said that the Bank would be “a little more cautious” around monetary policy due to the conflict in the Middle East. While the Monetary Policy Committee (MPC) is expected to keep the base rate at 3.75% at its next meeting, analysts predict a potential 25 basis point increase. ING’s James Smith said the Bank would be more likely to increase interest rates if inflation hit 4% – double its target rate. UBS economist Anna Titareva commented: “Even in a scenario in which the MPC were to hike rates, the weaker starting point for the economy would, in our view, imply a relatively rapid reversal via rate cuts thereafter.”

Chancellor John Healey has expressed concern over the rising costs being faced by UK businesses, saying that they need “breathing space” to manage challenges. In a speech to City of London leaders, he highlighted the importance of easing pressures from energy, labour, and supply chains. Mr Healey, who said he aims to foster a stronger relationship between the Government and businesses to boost the economy, outlined five priorities, including fiscal discipline and supporting growth across the UK. He also praised Lucy Rigby’s re-appointment as City Minister and the appointment of Baron David Pitt-Watson as a parliamentary secretary in the Treasury, saying it highlights the Government’s ambition to put the City “at the heart of our flourishing future British economy.”

The Government has announced that business rates will be reduced by 20% for nearly 32,000 hospitality venues across England, including pubs, clubs and live music venues, as of April next year. This change aims to save a typical pub around £1,100 annually. Downing Street said funding for this initiative will come from reviewing reliefs for businesses that “do not make a positive contribution to local communities,” such as vape shops, and by enforcing tax compliance among online marketplaces. Prime Minister Andy Burnham said the move will help protect “the beating heart of our communities.” Further reform to the business rates system is set to be discussed in the next Budget. Meanwhile, the Music Venue Trust has called for the same relief to be offered across Scotland, Wales and Northern Ireland.

Emma Reynolds, the Chief Secretary to the Treasury, has refused to be drawn on the possibility of a wealth tax, telling Sky News that any major tax changes would be revealed in the Budget later this year. This came after campaign group Patriotic Millionaires UK co-ordinated an open letter to the Prime Minister that saw 120 UK-based millionaires say they should pay more tax.

Conservative leader Kemi Badenoch has urged Andy Burnham to avoid raising taxes to fund his new policies. Voicing concerns that pledges made by the Prime Minister are unfunded, she warned that higher taxes would ultimately burden families and businesses. Ms Badenoch said: “If Andy Burnham raises taxes again, he will pretend he is punishing ‘the rich’. The truth is he will punish the engineer whose factory is not built.”

Last month’s record-breaking heatwave cost the UK economy an estimated £1.15bn and resulted in 24m lost working hours, according to research by the London School of Economics’ Grantham Research Institute. The study found that workers lost an average of 0.47 hours during the final week of June.

The value of fines issued to audit firms by the Financial Reporting Council has increased year-on-year, with penalties totalling £18.2m handed out in 2025/26 compared to £14.5m the previous year. Despite the higher fines, the number of new and ongoing investigations decreased.

The White House has introduced a 10% tariff on UK goods as part of wider US measures targeting 60 countries accused of insufficient action against imports linked to forced labour. The tariffs apply to nations accounting for around 99% of US trade and aim to address perceived gaps in overseas enforcement. UK retailers have faced particular scrutiny over supply chain links to Xinjiang cotton, especially within fashion. Exemptions apply to oil, gas, fertiliser, some food products and goods already subject to Section 232 tariffs.

Plane noise continues to affect some homeowners, but its impact on property values appears to be diminishing as aircraft become quieter. Hamptons found homes beneath the noisiest flight paths now sell for an average 9% discount, down from 16% in 2012. Experts say flight paths remain a factor for buyers, particularly near expanding airports, but are often viewed as less detrimental than busy roads.