Some of England’s metro mayors are considering tax rebates for residents as part of new fiscal devolution powers expected to be announced by Prime Minister Andy Burnham. The reforms are set to give regional mayors a share of locally raised income tax and greater control over business rates, allowing them to decide how revenues are used. While many mayors are expected to invest additional funding in infrastructure and public services, Conservative and Reform mayors, including Tees Valley’s Ben Houchen, are exploring tax rebate schemes to reduce the burden on households. The proposals form part of wider plans to give regional leaders greater financial autonomy and stronger incentives to support local economic growth.

Andy Burnham has not ruled out increasing taxes to pay for social care reforms as he pledged to fix a sector successive governments had failed. The Prime Minister announced that a review of social care by Baroness Casey would be published next summer instead of 2028. Responding to Mr Burnham’s comments, Stuart Andrew, the shadow health secretary, said any social care reforms must be achieved without increased tax. He said: “We welcome cross-party recognition of the problems in the social care sector, but fixing the system requires a credible, funded plan. So far, we have only had very broad-brush information from the Government.”

A housing commission convened by think tank Radix Big Tent has urged the Government to extend first-time buyer-style stamp duty relief to over-65s to encourage downsizing and free up larger family homes. The report estimates the measure could return up to 870,000 homes to the market, arguing stamp duty discourages older homeowners from moving. It found over-60s hold more than half of the UK’s housing wealth, while around 70% of over-65s live in homes with spare bedrooms. The proposals follow speculation about wider property tax reforms, although the Government has ruled out changes to stamp duty in the forthcoming Budget.

HMRC has recovered £1.36bn from families due to underpaid inheritance tax over the past five years. Investigations arise from suspected errors or omissions in estate valuations. NFU Mutual, which obtained the figures via a Freedom of Information request, warns that HMRC has extensive powers to scrutinise financial affairs. The total inheritance tax collected reached nearly £8.5bn last year.

The property market is experiencing a notable slowdown, with sales down 9% in July compared to last year, according to Zoopla. Richard Donnell, executive director at Zoopla, attributed this decline to rising mortgage rates, which have increased from 4% to 4.75%, adding over £1,500 annually to average home costs. Political uncertainty and distractions like the World Cup have also contributed to reduced buyer activity.

UK vehicle production fell 7.5% in the first half of 2026, although output stabilised during the second quarter as exports strengthened, according to the Society of Motor Manufacturers and Traders. The industry said there was growing optimism under the new Government but warned further action was needed to reduce energy costs, reform electric vehicle regulations and secure favourable trading arrangements with the EU to attract future investment and support long-term growth.

More than half of UK SMEs do not fully trust high street banks for business finance advice, according to Portman Finance Group. The research found confusion over finance options and concerns about borrowing are preventing businesses from investing, with firms estimating £54bn in missed revenue. Portman called on lenders and brokers to provide clearer guidance to help businesses make informed funding decisions.

The Federal Reserve left interest rates unchanged at between 3.5% and 3.75% on Wednesday with chairman Kevin Warsh repeating his pledge to tackle inflation following the meeting. The news sent yields on 30-year Treasuries to their highest level since 2007 amid concern that a slower approach to raising interest rates may not be sufficient to tackle inflation. The S&P 500 closed 1.5% lower, its biggest one-day drop since mid-June, while the Nasdaq 100 fell 1.8% to finish down more than 11% from a June peak.

The Bank of England is investigating investment banks’ exposure to Asian equities, citing concern about concentrated risks in AI-related companies and potential client defaults.

Ofgem is considering an upfront, refundable “commitment fee” for large data centre projects to alleviate congestion in Britain’s electricity grid. The fee, ranging from £237,500 to £712,500 per megawatt, would be charged upon receiving a connection offer and refunded once the data centre is operational. Ofgem aims to prioritise projects that are ready to connect, as concerns grow over speculative developers inflating land values. Currently, 315 data centres are queued, demanding 73 GW of energy.