A survey by the Federation of Small Businesses warns that upcoming business rates changes could place significant pressure on small firms, with up to 340,000 businesses potentially at risk of closure. Around 1.4m firms may reduce staff, while 248,000 could consider selling. The changes, effective from April, include a revaluation and the end of pandemic-era reliefs, particularly affecting retail, hospitality and leisure sectors. Government projections indicate business rates revenue rising to £35.8bn, up from £27.8bn, generating an additional £8bn. Ministers say support measures remain in place, including reliefs and exemptions, while industry groups argue broader reform is needed to ensure long-term sustainability for high street businesses.

GfK’s index of household sentiment dropped to minus 21 in March from minus 19 in the previous month. This is the weakest reading since April last year. GfK said that the decline was driven by a six-point drop to minus 37 in expectations for the UK economy over the coming year. There was also a six-point rise in the savings index to plus 27 over the last month. Neil Bellamy, consumer insights director at GfK, said: “A ripple of fear is spreading – people simply do not feel the economy is robust enough to ride out the knock-on effects from the Middle East conflict.”

The UK housing market experienced minimal growth in prices last year, with the average house price increasing only 1.3% to £268,000 by January. Experts had anticipated a revival in the market due to a potential Bank of England interest rate cut, but the ongoing Middle East conflict has dampened sentiment and spending power, leading to a spike in mortgage rates. Rents, however, rose by 3.5% to an average of £1,374, with significant increases reported across England, Wales, and Scotland. The upcoming Renter’s Rights Act may further constrain supply, increasing pressure on rents and straining tenants’ finances.

The Government said it hopes to speed up decision making by stripping away “outdated regulations and overlapping consultations” as part of efforts to cut red tape. Sir Keir Starmer has previously expressed frustration that a “whole bunch of regulations, consultations and arm’s-length bodies” mean that action “from pulling the lever to delivery is longer than I think it ought to be”. The Cabinet Office has said changes to clear up processes in Whitehall will be introduced to ensure improvements can be made in communities across the country.

Britain will have among the weakest economic growth in the developed world this year, according to the OECD, which downgraded its 2026 growth forecast to 0.7% from a previous prediction of 1.2% – the worst downgrade among OECD member nations. High energy prices will send inflation soaring to 4% this year, up from 3.4% last year and the second-highest rate in the G7. Due to the combination of weaker growth and higher inflation, the OECD expects the Bank of England to hold off raising interest rates this year. Commenting on the report, Chancellor Rachel Reeves said: “In an uncertain world we have the right economic plan. The decisions we have taken have put us in a better position to protect the country’s finances and family finances from global instability.”

A group of leading charities, campaigners and trade unions are calling on the Chancellor to increase taxes on companies generating “windfall” profits linked to the US-Israel war on Iran. The organisations – including Greenpeace UK, the National Education Union and Tax Justice UK – wrote to Rachel Reeves claiming energy companies, banks, agricultural commodities businesses, defence companies and tech firms could generate “excess profits” as a result of the conflict. “We urge you to make this crisis a turning point for the UK. Taking bold action to systemically reform our tax system and invest in our energy security will build resilience in our economy to withstand future shocks and make life affordable for people and businesses in the UK,” the letter said.

A study by Employment Hero has found that pay has increased by 18% at retail and hospitality firms over the past year. However, employment growth in the sector has fallen by just over 1%, indicating that while wages are rising in the short term, job opportunities are becoming more limited. The National Minimum Wage increase is driving an immediate uplift in pay, said Kevin Fitzgerald, managing director of Employment Hero, at the same time as wider employment law changes that are increasing the cost and complexity of hiring.

Next’s chief executive, Lord Wolfson, has urged the UK Government not to “profit” from the Iran crisis, warning that surging oil and gas prices could boost Treasury tax revenues unfairly. He said businesses already face severe cost pressures and argued that any extra revenue from higher energy prices should not be retained by the state. Analysts estimate the Treasury could gain up to £3bn if elevated prices persist due to Middle East tensions. Wolfson’s comments follow Next revealing a £15m financial hit from the conflict, which may lead the retailer to raise prices later this summer.

Serica Energy has urged the Government to approve the development of new oil and gas fields in the North Sea in order to reduce the risks of future oil and gas crises. The company also called for Labour to replace the Energy Profits Levy with a permanent mechanism for raising the level of tax on UK oil and gas production. Serica chair David Latin said: “Maximising the benefits available to the UK from domestic oil and gas and achieving net zero by 2050 are not mutually exclusive objectives.”