Economists warn that tax increases set out by Chancellor Rachel Reeves’s will impede UK economic growth for at least a year. The EY Item Club forecasts a modest growth of 0.9% in 2026, slightly up from 0.8% in November. Matt Swannell, chief economic adviser to the EY Item Club, said: “Further tax rises may not be expected in 2026, but previously announced measures will begin to raise revenues.” He added that a “tightening of fiscal policy, alongside ongoing global uncertainty, is expected to drag on UK growth over the next year or so.” The report also noted geopolitical instability and trade disruptions as factors that will further hinder growth. Business investment is projected to contract by 0.2% this year.

Foreign owners of UK properties, particularly in London, are under scrutiny for tax compliance. A study by Dan Neidle’s Tax Policy Associates revealed that nearly 100,000 properties worth £460bn are owned by offshore companies, with only 56% declaring their beneficial owners. The Annual Tax on Enveloped Dwellings (ATED) and increased Stamp Duty Land Tax (SDLT) have already imposed significant costs on foreign buyers. Michael Mosbacher argues in the Sunday Telegraph that not only are these taxes are justified, but they should be made more punitive, as absentee owners contribute little to the local economy and drive up property prices, harming affordability for residents.

Fred and Peter Done, founders of Betfred, have emerged as the UK’s largest taxpayers, contributing over £400m in the past year. This amounts to approximately £1.1m daily to the exchequer. Their payments represent a significant portion of the £5.8bn total from the 100 wealthiest individuals and families, marking a 15.5% increase from the previous year. The rise is partly due to the Conservative’s increase in corporation tax from 19% to 25% in 2023. The Sunday Times Tax List highlighted contributions from celebrities like Harry Styles and Ed Sheeran as well. JK Rowling paid £47.5m, notable because she’s from the creative arts and indicative also that her royalties have not been adversely affected by negative press coverage.

The UN is set to conduct negotiations on a planned global tax treaty that could see fossil fuel companies forced to cover the cost of damage to the climate and the ultra-rich subjected to a global wealth tax. The US has withdrawn from the talks and some wealthier countries have argued that tax matters should be discussed within the Organisation for Economic Co-operation and Development, rather than within the UN. Sergio Chapparo Hernandes, of the Tax Justice Network, said the talks “will be a real test,” asking: “Can member states craft international tax rules that are fit for the age of climate catastrophe?” A Treasury spokesperson said: “The UK has been an active participant in tax negotiations at the UN and remains committed to working constructively to ensure inclusive and effective international tax co-operation.”

Labour’s new workers’ rights laws risk reducing entry-level job opportunities for young people if poorly implemented, according to Helen Dickinson, chief executive of the British Retail Consortium. She warned that measures in the Employment Rights Act, including tighter limits on zero-hours contracts and stronger protections for new hires, could raise costs and make employers more cautious about recruiting. Retail, which often provides first jobs and flexible work, has already seen significant job losses amid rising taxes, wage costs and energy bills. Dickinson said flexibility is essential for students, carers and older workers, and argued that while raising standards is important, policy design must also preserve pathways into work and progression, particularly during a period of rising youth unemployment and fewer vacancies.

Employers anticipate stable or increased pay growth in the coming year, driven by rising living costs, according to a poll by Incomes Data Research (IDR). The survey of 121 businesses employing nearly 3m people revealed that 44% expect pay growth to remain around 3%, while 28% predict higher increases. Zoe Woolacott from IDR said: “Inflation is currently higher than it was a year ago and this has applied upward pressure on pay.” The median pay award is projected at 3.4%, with some firms considering increases of 4% or more.

Credit card borrowing has surged, reaching its fastest growth in nearly two years. The average interest rate on purchases is now a record 35.8%, with 48% of cardholders incurring interest. The Financial Conduct Authority has urged lenders to act responsibly regarding persistent debt. However, as individuals improve their credit scores, they often receive enticing offers for high-interest credit cards. The Centre for Responsible Credit found that 55% of low-and medium-income adults received such offers, with many feeling pressured to accept them.

Nik Storonsky, cofounder of fintech Revolut, has reinstated his UK residency after a previous erroneous filing listed him as residing in the UAE. The change, made through Companies House, corrects an October 2025 filing that raised regulatory concerns. Storonsky described the residency change as “fake news.” He stated: “From the family office’s point of view, since I’m also a director, they used my Dubai address for correspondence.” Revolut confirmed that there has been no change to his role or responsibilities.

The Bank of England is expected to maintain interest rates at 3.75% as inflation pressures persist, with economists predicting that the Bank’s Monetary Policy Committee (MPC) will keep rates unchanged. Since the Bank cut rates in December, official data has been released showing that inflation increased for the first time in five months. Matt Swannell, chief economic advisor to the EY Item Club, says keeping the base rate unchanged at 3.75% “looks a near-certainty,” adding that “some of the MPC doves that favoured a cut in December still harbour some concerns around sticky wage growth and inflation.” Philip Shaw, an analyst for Investec, said: “The principal reason to hold off from easing again is that at 3.4% in December, inflation remains well above the 2% target.” Edward Allenby, senior economic advisor at Oxford Economics, forecasts that the next rate cut will come in April.

Gordon Brown’s decision to sell over half of Britain’s gold reserves between 1999 and 2002 has cost the UK £48bn, as gold prices hit record highs of £3,700 per ounce. Shadow Chancellor Sir Mel Stride stated: “When Labour sold Britain’s gold at the bottom of the market, that wasn’t bad luck. It was bad leadership.” The gold was sold for around £2bn, but its current value is approximately £48bn. Critics argue this decision reflects poor economic management, leaving the UK exposed to risky US government bonds instead of a stable asset.

The UK will implement the International Controlled Transactions Schedule (ICTS) starting January 1, 2027, marking its entry into annual transfer pricing data reporting. The shift aligns the UK with other jurisdictions that have adopted proactive disclosure requirements. David Zarecky, a transfer pricing adviser, noted that the ICTS will require annual filing of cross-border related party transaction data. The move aims to reduce compliance burdens for multinationals, which must now navigate varying national requirements. Zarecky commented: “The question is whether the international community will standardise these requirements before the compliance burden becomes unmanageable.”

The UK steel industry could face a £500m annual levy due to changes in the Carbon Border Adjustment Mechanism (CBAM). UK Steel’s director Frank Aaskov warned that the revised scheme may force domestic steelmakers to buy carbon allowances on the open market, significantly increasing costs. He said: “When the UK CBAM comes into effect, such a plant could face carbon costs of over £100m annually.” The industry is concerned that this will disadvantage British steel against cheaper foreign imports, particularly from high-emission countries like China.

Sir Keir Starmer plans to use a summit with the EU in May to advocate for closer ties to the single market, despite rejecting calls for a new customs union. During his visit to China, he announced plans to reduce trade barriers to stimulate growth and lower prices. “I think we should not just follow through on what we’ve already agreed,” he said. “I think the relationship with the EU and every summit should be iterative. We should be seeking to go further.” Meanwhile, the Daily Express has begun a campaign for a “proper Brexit” ten years after the country voted to leave.

The proposed tourist tax in the UK could deter both international and domestic visitors, warns Larry Lipman, chairman of Safestay. The Government plans to allow mayors to impose levies on overnight stays, with funds directed towards transport and infrastructure. Mr Lipman said: “International travellers will go where they see value and they will choose to go elsewhere.” UKHospitality estimates the tax could cost the public up to £518m in additional taxes, threatening the booming staycation market.