Bank of England governor Andrew Bailey has urged governments to exercise fiscal restraint and adopt credible tax and spending policies that support lower inflation and financial stability. He warned that prolonged high energy prices could cause inflation to become entrenched if households and businesses incorporate the shock into wages and prices, rather than treating it as temporary. Mr Bailey noted that UK inflation is currently at 3.1% and expected to rise above 4% due to soaring energy prices. He warned that high inflation expectations could lead to persistent inflation if not managed properly. Mr Bailey also said markets could push bond yields higher if they lose confidence in the UK’s fiscal trajectory.

Julia Hoggett, CEO of the London Stock Exchange (LSE), has urged Chancellor John Healey to eliminate stamp duty on shares and reinstate tax credits for domestic investments. She said that these changes would create structural incentives for companies to list in London, countering the trend of firms moving to New York or European exchanges. Ms Hoggett described stamp duty as a “pernicious tax” that hinders UK economic growth. She has proposed a phased removal of the tax, starting with ISAs and pension funds, and called for the return of dividend tax credits.

Tesco chief executive Ken Murphy has urged Chancellor John Healey to reform the “fundamentally unfair” business rates system, calling for all retailers to be exempt from the £500,000 rateable value threshold and warning against a proposed warehouse tax that could push up prices. The British Retail Consortium says retailers pay 72p in tax for every pound they make, making the sector the second-highest taxpaying industry behind hospitality.

The UK faces a workforce health crisis, costing £241bn annually in lost productivity, according to a report by Vitality. Mental ill-health is the primary cause, while high-risk employees are losing 30 days of productivity each year. Despite the financial burden of £7,000 per employee, only a third of employers provide mental health support. Neville Koopowitz, CEO of Vitality, said: “Employers who understand their employees’ health are seeing real returns.” Legal risks also rise for businesses failing to support staff adequately.

Baroness Jacqui Smith, the Skills Minister, has rejected claims that £25bn in employer tax hikes have driven youth unemployment, arguing that the biggest rise occurred before Labour took office. However, the National Institute of Economic and Social Research estimates that higher employer taxes and minimum wage changes have increased graduate hiring costs by 7%. Business groups including the British Chambers of Commerce and Confederation of British Industry have called for cuts to employers’ National Insurance contributions to encourage youth employment, while the Conservatives have pledged to halve the rate for employers hiring 21- to 24-year-olds from 15% to 7.5%.

AI is creating a new workplace divide between employees who treat the technology as a useful tool and those who see AI as a threat to jobs, skills and genuine human interaction. While analysis by the British Chambers of Commerce shows that just 54% of UK firms actively use AI, a Deloitte survey of 25,000 workers found that staff spend around £1bn a year of their own money on AI tools for work – with a third of these using it without their employer’s permission.

Ken Mulvany, executive chairman of BenevolentAI, warns that excessive AI regulation could leave Britain dependent on foreign technology while undermining its competitiveness. Suggesting that the UK should build domestic AI capabilities, he says independent testing and safeguards are necessary but restrictions must deliver clear benefits without limiting access to tools needed for innovation. Mr Mulvany urges ministers to prioritise access to powerful AI, evidence-based safeguards and proportionate regulation.

Tom Burnet, chair of the Baillie Gifford US Growth Trust, is urging the Government to reform regulations to protect investment trusts from activist hedge funds. This comes with the trust under pressure from Saba Capital, which holds a stake of around 30% and has been accused of aggressive tactics. Mr Burnet has written to City Minister Lucy Rigby, calling for activist shareholders to be held to the same standards of information disclosure as the boards of listed companies. He has also urged ministers to support the Financial Conduct Authority’s work on closed-end funds.

The Times’ Harry Wallop examines recent polling by More in Common which highlights the connection between supermarket preferences and political affiliations in the UK. Labour voters tend to favour Asda and Aldi, while Conservatives prefer Marks & Spencer and Sainsbury’s. Aldi shoppers show support for the Reform party, and Waitrose customers lean Labour. The data suggests that shopping habits are increasingly fragmented, reflecting broader political complexities. Wallop comments: “We shop around, both when it comes to politics and supermarkets.”