LSE welcomes stamp duty holiday on shares

The London Stock Exchange (LSE) has welcomed the Government’s introduction of a three-year stamp duty holiday for newly listed companies. Chancellor Rachel Reeves announced the measure, which eliminates the 0.5% charge on shares purchased during the first three years post-IPO, in a bid to revitalise the market and attract listings to the City. LSE deputy chief executive Charlie Walker praised the move, saying: “It’s a recognition of the important role that the UK capital markets can play in driving growth of the economy.” He also noted that the LSE has just finished a consultation on the market which aims to “provide the flexibility for small and mid-cap companies to grow on the public markets,” adding that it considered the “regulatory environment.”

Tighter visa rules will cost UK up to £10.8bn

An impact assessment from the Home Office suggests that the UK’s new visa rules for skilled workers – designed to reduce net migration – may cost public finances up to £10.8bn.

OECD flags UK’s heavy tax burden

A new report from the Organisation for Economic Co-operation and Development (OECD) shows that the UK’s property tax burden is the fourth heaviest among the 38 countries analysed. The UK’s property taxes, including business rates and stamp duty, account for 10.5% of GDP, compared to the OECD average of 5.1%. Analysts argue that these taxes hinder property purchases and construction. The report on government revenue levels also highlights that UK income taxes are higher than in several European countries. Overall, the tax burden for the UK was marginally higher than across the OECD, with it ranked in 22nd place in terms of overall government revenue as a share of GDP. The overall tax burden is expected to rise significantly by 2031 and the Office for Budget Responsibility anticipates a peak of 38.3% of GDP.

More families face £1m IHT bills

The number of families facing seven-figure inheritance tax bills is set to rise sharply on the back of reforms that will bring pensions into inheritance tax from 2027 and reduce relief for farmers and business owners, with frozen tax thresholds and surging property prices also having an impact. Estates worth over £2m have already grown 23% since 2020/21, and many larger estates currently paying average bills near or above £1m could see their liabilities increase dramatically, especially as the residence nil-rate band tapers away for higher-value estates. Analysts warn that farms, businesses and substantial pension pots will be hardest hit, with some families potentially needing to sell assets to meet tax demands.

Walsh: UK ‘hooked’ on high taxes

Willie Walsh, director general of the International Air Transport Association, has warned that the UK is “hooked” on high taxes. He suggested that the Government uses air passenger duty to support public finances rather than for environmental reasons, arguing: “Taxation doesn’t reduce CO2, it reduces the number of people who are able to fly.” He predicts that rising taxes will push travellers to use overseas airports, harming the UK economy.

Badenoch: Lifting benefit cap will mean tax hikes

Conservative leader Kemi Badenoch says that over 300,000 taxpayers may be hit by frozen income tax thresholds to fund benefits for 1,000 families in one London borough – Hackney. This comes after the Chancellor scrapped the two-child benefit cap, a move that will cost £3.2bn annually. Ms Badenoch warned that the current approach to welfare amounted to “economic suicide,” saying that there are more than six million working-age people claiming benefits instead of working, with this paid for by “taxing businesses, taxing jobs, taxing wealth creators.”

Homebuyers gamble on risky mortgages

Homeowners are taking on the highest level of risky low-deposit mortgages since 2008 as buyers stretch to get on the housing ladder. New Bank of England data shows 7.4% of all mortgage advances now have deposits below 10%, the highest share since before the financial crisis and up 0.8 points on the year. Such high loan-to-value deals carry greater risks and higher rates, highlighting affordability pressures on younger buyers. The trend accompanies a sharp rise in 30- to 40-year mortgage terms and an £80bn surge in new lending, up 36.9% — the biggest jump since 2020.

Two-thirds of banks close since 2015

Analysis from consumer watchdog Which? shows that 67% of bank and building society branches in the UK have closed over the past decade, with 6,609 closures from January 2015 to December 2024. NatWest led the closures with 1,431 branches, followed by Lloyds Banking Group with 1,252. Meanwhile, 1,230 Barclays branches have closed, as well as 477 Santander sites and 743 HSBC branches. This year alone, 381 bank and building society branches have shut, with 51 still scheduled to shut before the end of the year and 71 already lined up to close in 2026. The closures come amid a fall in footfall and a shift to online banking.

Pandemic fraud report says most of £10.9bn loss is unrecoverable

A new report by Covid Counter Fraud Commissioner Tom Hayhoe says that £10.9bn in taxpayer money lost to fraud and error during the pandemic is now largely unrecoverable. Mr Hayhoe says the speed and scale of emergency spending left many public bodies unprepared, with weak accountability, poor data and flawed contracting. Employment support schemes such as furlough and help for the self-employed saw £5bn of fraud, while PPE procurement became overwhelmed, with losses of around £10bn from over-ordering – plus £324m in fraud. Support for small businesses, particularly the Bounce Back Loan Scheme, relied on self-certification and minimal checks, contributing to an estimated £2.8bn in fraud and error. The report said the schemes “left the front door open” to fraud and lacked adequate safeguards.

Bank of England: Budget will cut inflation

The Bank of England predicts that measures set out in the Budget will reduce the UK’s headline inflation rate. Appearing before the Treasury Select Committee, Bank staff agreed with the Office for Budget Responsibility that measures announced by the Chancellor would strip 0.5 percentage points off headline inflation by mid-2026. Clare Lombardelli, a deputy governor at the Bank and a member of the rate-setting Monetary Policy Committee, voiced concern about high inflation expectations among consumers and businesses, saying this could push price growth higher than forecasts suggest. Saying that she worries about the “upside risks to inflation,” she noted that “we are seeing pressure on resources in the economy.” The Bank is expected to cut interest rates next week, with financial markets predicting that borrowing costs will be cut to 3.75%, down from 4%.

Top 10% earn more than the remaining 90%

The World Inequality Report 2026 reveals alarming wealth concentration, with fewer than 60,000 individuals – 0.001% of the world’s population – controlling three times the wealth of the bottom half of the global population. The analysis highlights that the top 10% earn more than the remaining 90%, while the poorest half claim less than 10% of global earnings. The report stresses the need for urgent action, saying: “Reducing inequality is essential for the resilience of economies.” The report also notes that a 3% global tax on the wealthiest could generate $750bn per year.