Seventeen of the UK’s largest pension funds, including Aviva, Legal & General, and M&G, have agreed to the new Mansion House Accord, which aims to unlock £50bn for investments, with at least half directed towards British assets. The agreement doubles previous commitments made under the Mansion House compact, which allocated 5% of funds to private assets without a UK investment requirement. While the accord is voluntary, concerns persist regarding potential government pressure to mandate UK investments, which could affect returns for retirees. Scottish Widows, the Lloyds Bank’s pension arm, opted out of the accord arguing that the company was already heavily invested in the UK and investment decisions would continue to be guided solely by returns instead of geography. The Treasury anticipates that pension portfolios will grow to £740bn by 2030, potentially providing £50bn for private market investments, with £25bn aimed at UK projects.

The Prime Minister’s white paper on migration aims to reduce net migration, currently at 720,000, to approximately 340,000 by 2028. Sir Keir Starmer has pledged to “take back control of our borders” but refrained from setting a hard cap on migration. Critics from Labour condemned what they saw as a fillip to the right while Conservatives argued the plans didn’t go far enough. The white paper proposes stricter rules for foreign students and workers, including a reduction in the time allowed for students to stay post-study and a requirement for higher English proficiency. Home Office sources indicate that further measures will be introduced to enhance the training and employment of UK workers. There will also be new powers to cancel the visas of migrants who commit lower level crime and restrictions on the use of human rights law to skirt deportation. However, critics pointed to the lack of additional measures to crack down on small boat crossings, which have seen a record 12,000 illegal migrants arrive so far this year.

The launch of GFO-X, Britain’s first regulated and centrally cleared digital assets derivatives trading platform, marks a significant milestone for the cryptocurrency market. Backed by the FTSE 100 fund management group M&G, GFO-X offers bitcoin index futures and options, with plans for future product expansion. The platform is authorised by the Financial Conduct Authority (FCA) and utilises clearing services from LCH, part of the London Stock Exchange Group. Despite the FCA’s warnings about the volatility and risks associated with digital tokens, institutional interest in crypto continues to grow, with partnerships already formed with major players like Standard Chartered. The UK Government is also moving towards a regulatory framework for cryptoassets overseen by the FCA.

Campaigners are urging the UK Government to make the energy profits levy permanent to facilitate a transition from fossil fuels to green jobs. Research by Oil Change International indicates that maintaining this levy could generate at least £2bn annually, which would be crucial for retraining oil and gas workers and developing green infrastructure. Rosemary Harris, a senior campaigner at OCI, stated: “Transitioning to a renewable energy economy is one of the greatest opportunities the UK has to create secure, well-paid jobs for energy workers.” The report highlights that approximately £1.9bn is needed yearly for this transition, with funds allocated for wind industry development, port upgrades, and worker training. The campaign also calls for closing tax loopholes that benefit fossil fuel producers, which currently receive £17.5bn in government assistance.

British businesses are grappling with unprecedented levels of fraud, incurring losses of approximately £219bn annually, according to a report by Crowe UK and Peters & Peters. The private sector bears the brunt, losing around £157.8bn. Alex Jay, partner at Stewarts, remarked: “Fraud is endemic. It is getting worse, and it does not get the airtime it deserves,” pointing to the pervasive nature of the issue. Fraud manifests in various forms, from minor employee expense claims to complex investment scams. Cyber fraud has gained notoriety, with high-profile attacks on companies like M&S and Harrods. Experts stress the importance of robust systems and policies to combat fraud, with Daniel Astaire from Grosvenor Law urging businesses to remain vigilant and proactive.

Megan Greene, a monetary policymaker at the Bank of England, expressed concerns about rising inflation expectations during a panel discussion at King’s Business School. Greene recently voted with the majority to cut interest rates by 0.25% for the fourth time since last August, despite her initial uncertainty about the decision. Rising trade tensions, particularly due to US tariffs, influenced her stance, although she stated that the recent US-China agreement would not have altered her decision. Meanwhile, deputy governor of the Bank of England Clare Lombardelli has said “caution remains appropriate” in fiscal policy decisions despite a slowdown in UK inflation in recent months. The most recent official figures showed that UK inflation slowed to 2.6% in March, from 2.8% in February, but inflation is expected to have accelerated to around 3.4% in April after a jump in energy and utility costs. “I’ll be more comfortable when I see material deceleration in the data over a longer period,” Lombardelli said.

According to a recent poll by Freshwater Strategies and City AM, nearly half of UK voters believe that living standards have worsened over the past year. Only 14% reported an improvement, while 43% anticipate their household finances will decline further in the next 12 months. Chancellor Rachel Reeves’ tax increases, including those on private schools and capital gains, have contributed to this pessimism. The poll indicates that one in ten voters are in a “troubled” financial state, and one in five cannot cover an unexpected £500 expense. The economic outlook remains bleak, with many firms expressing concerns over stagnant growth and calling for reduced regulatory burdens.

Katie Prescott talks in the Times about the use of artificial intelligence to generate corporate reports, and the use of the technology to analyse them. She says that how leadership presents itself to the outside world, “is an important part of how trust is built, how markets react, how reputations are made” and argues that with AI, there is a danger that “all communications will end up sounding the same.” The Financial Reporting Council (FRC) has been considering the use of AI for some time, Prescott notes, “but as yet, strikingly, there is no guidance on it whatsoever.” She believes that guidance on the use of AI in company reporting should come soon “as AI is playing more of a role in shaping the public face of companies.”

According to a survey by NatWest, two in five mothers and one in three fathers are open to their adult children moving back home. The research indicates that nearly 23% of parents have experienced this “boomerang” phenomenon, with children returning at an average age of 26. Notably, 21% of those returning are over 30. Barry Connolly, managing director of home buying and ownership at NatWest, said: “Many children across the country are having to return to the homes that they grew up in well into their 20s and 30s to give themselves the financial headroom to save for a deposit.” The survey also highlights that 85% of parents believe it is more challenging for first-time buyers today compared to their own experiences.