Andy Burnham is being urged to implement a tax raid on UK banks following Barclays’ 30% increase in its half-year bonus pool, which reached £1.3bn. This coincides with a 31% increase in pre-tax profits to £3.3bn for the second quarter. The Trades Union Congress (TUC) argues that banks should contribute more with the union’s general secretary Paul Nowak saying: “Big banks like Barclays are raking it in while working people and local businesses are struggling.” However, CS Venkatakrishnan, the CEO of Barclays, warned that a new bank tax could hinder economic growth. He said that every pound of capital retained in the banking system enables £8 to £10 in lending to the economy. He also welcomed Chancellor John Healey’s commitment to economic growth, calling his policy approach highly encouraging. Venkatakrishnan added that Barclays is prepared to increase domestic lending and hopes this supportive role will be fully considered by the Government during its future tax decisions.

Government officials have drafted social care funding proposals for Prime Minister Andy Burnham, including a new income tax requiring workers to make mandatory contributions to a private fund for later life care. This would finance a new care system estimated to cost £18bn per year. Wealthier elderly people would also pay for between 10 and 45% of their own costs, depending on the value of their assets. The mandatory contributions – set at 1.8% of earnings above £6,240 and paid by workers over the age of 34 – would require an employee on a £50,000 salary to pay an extra £788 a year in tax, while an employee earning £80,000 would pay an extra £1,327.

HMRC recovered more than £104m in unpaid tax from landlords during 2025-26, as thousands voluntarily disclosed undeclared rental income through the Let Property Campaign. A total of 11,511 landlords came forward after receiving HMRC “nudge letters”, the highest number of disclosures since 2018-19, with average payments of more than £9,000. Tax experts said the increase reflects HMRC’s growing use of Land Registry data to identify property owners who may have undeclared rental income. Many cases involved accidental landlords or confusion over tax rules, including changes to mortgage interest relief and allowable expenses. HMRC said the campaign gives landlords the opportunity to correct unpaid tax with lower penalties, helping them avoid larger fines and interest charges.

The National Institute for Economic and Social Research warns that higher inflation caused by the Iran war will cut the real-terms value of UK public spending by £24bn by 2030. At a briefing in Westminster, NIESR director David Aikman said: “Andy Burnham faces a challenging inheritance – eroded real spending plans, the highest borrowing costs in the G7, new spending demands and cost of living pressures. Debt is projected to stabilise, but there is no plan yet to bring it down. New commitments on defence or household support should be funded through taxation or savings elsewhere, not through further borrowing. Rebuilding the capacity to absorb future shocks will require a determined attempt to bring debt down.”

The UK job market is experiencing significant changes due to the rise of artificial intelligence (AI). According to Employment Hero, blue collar jobs, particularly in construction and manufacturing, are on the rise, with increases of 2.1% and 4.7% respectively in June. Young graduates are increasingly pursuing vocational roles as traditional office jobs decline. Sectors like banking and accountancy are seeing job losses, with a 1.6% drop in banking roles in June.

The Government will offer parents on benefits up to £4,500 annually to encourage their children to take up apprenticeships. The newly announced bursary will compensate for Universal Credit payments lost when young people start working, which can penalise working families by up to £330 a week. The bursary will be funded by a £30m pot raised through the growth and skills levy on employers. Alongside the bursaries, grants worth £8,000 will be given to small and medium-sized businesses that take on apprentices.

Despite rising global oil and gas prices, UK household inflation expectations have fallen. A Citi and YouGov survey shows year-ahead inflation expectations dropped to 3.4% in July, down from 3.8% in June, potentially easing Bank of England concerns about rising energy prices ahead of its upcoming interest rate decision.

The AI boom is complicating central banks’ monetary policy decisions, the Bank for International Settlements warns, increasing risks of miscalibration due to uncertain inflationary and disinflationary effects on the economy.

According to new research by Deloitte, the UK’s largest companies are making fewer error-driven adjustments to their climate and sustainability metrics. The analysis of FTSE 100 firms revealed that nearly 70% made adjustments in 2025, particularly for greenhouse gas emissions, up from about 50% in 2024. Notably, the number of error-driven restatements decreased by 23% compared to the previous year. These findings come as the UK prepares to mandate climate reporting for many listed companies next year.

In an attempt to allay investor fears about Andy Burnham’s push for public control, UK business secretary Jonathan Reynolds says the PM is intent on creating a partnership with the private sector.