Prime Minister Sir Keir Starmer will meet senior leaders from major companies like HSBC, Goldman Sachs, and Shell today to address the ongoing energy crisis linked to the war in Iran. The roundtable will include updates from military officials and aims to discuss government strategies for de-escalation and support for households facing rising energy costs. Separately, Rachel Reeves will today urge G7 nations to follow the UK’s lead in renewable and nuclear energy investments during a meeting with finance and energy ministers. The Chancellor aims to enhance long-term energy security and reduce reliance on oil and gas amid the ongoing conflict in Iran. She will call for co-ordinated G7 action and “caution against unilateral measures, including protectionism and new trade barriers, which can disrupt supply chains and push up costs”, the UK Treasury said.

Allan Leighton, the executive chairman of Asda, has rejected allegations that retailers are profiting from rising fuel prices. The Chancellor and other ministers have accused businesses of price-gouging, but Leighton said the Government’s claims had “zero credibility”. The average petrol price has surpassed 150p per litre, with diesel exceeding 177p, influenced by ongoing conflicts in the Middle East. Leighton attributed the price rise to supply issues rather than profiteering. His comments come after Stuart Machin, the boss of Marks & Spencer, accused the Government of driving up energy bills and Lord Wolfson, the chief executive of Next, said the Treasury should not be profiteering from the crisis through fuel taxes. The Telegraph suggests the comments are “the strongest sign yet of a breakdown in relations between Labour and businesses” over energy supplies.

UK retail sales fell in February, with overall volumes down 0.4% after a revised 2% rise in January, according to the Office for National Statistics. The decline was driven by weaker supermarket and household goods spending, as consumers brought forward purchases into January to take advantage of seasonal discounts. Food retail performance deteriorated further month-on-month, offsetting strong online growth. Online sales rose 10.8% year-on-year over the three months to January, helping total retail sales increase 0.7% across the three months to February. Retailers are now facing additional pressure from rising energy and manufacturing costs linked to the Middle East conflict, alongside higher employment costs. Some businesses have warned this could lead to price increases, adding further strain on consumer demand in the coming months.

The Accountancy Partnership reports that approximately 5.6m UK workers overpaid £3.5bn in taxes during the 2023–24 tax year due to incorrect tax codes. Lee Murphy, managing director at The Accountancy Partnership, noted that many individuals mistakenly believe automated tax deductions are always accurate. He said: “Tax codes are based on the information HMRC has about your circumstances, and if that information is outdated or incorrect, you could end up paying too much tax without realising it.”

The UK Government will eliminate working from home (WFH) tax relief starting April 5. Remote workers could lose up to £140 annually if they fail to claim before the deadline. Olya Yakzhina, head of people and culture at Work.Life, advised workers to check their eligibility for tax relief, which allows claims on expenses like gas and electricity. Only fully remote employees can claim; hybrid workers are ineligible.

The Financial Conduct Authority (FCA) will announce its final plans for a compensation scheme today, addressing a car finance scandal affecting 14m deals from 2007 to 2024. Proposed payouts average £700, totalling an estimated £11bn. FCA chief executive Nikhil Rathi noted last week that the consultation received over 1,000 responses, with conflicting feedback. He told MPs: “It’s more likely than not that we will go ahead with the scheme.” Lloyds Banking Group has set aside £1.95bn and Santander has taken a £478m hit. Barclays says it is on the hook for £325m, while Close Brothers has made £300m available. Meanwhile, the FCA will collaborated with the Solicitors Regulation Authority (SRA), the Information Commissioner’s Office (ICO), and the Advertising Standards Authority (ASA) to combat misleading advertising in car finance. The taskforce aims to address issues such as unsolicited ads, meritless claims, and unfair exit fees. Alison Walters, FCA taskforce lead, said: “Our scheme will be free and people don’t need to use a CMC or law firm.”

The Bank of England (BoE) has reduced pricing for the Discount Window Facility (DWF), enhancing its appeal to banks. This facility, which allows eligible institutions to borrow UK government bonds or cash against less-liquid assets, has seen minimal use since its inception in 2008. The new fixed pricing structure, effective immediately, ranges from 15 to 50 basis points based on collateral quality. The BoE said: “This change to simplify and reduce DWF pricing will improve usability.” The move is part of a broader strategy to ensure banks can access liquidity during financial stress.

The UK investment trust sector, with over £250bn in assets, is facing a persistent valuation problem, writes Ben Green in City AM. Share prices are often discounted compared to net asset value (NAV), raising concerns about management structures. Green, co-founder of Atrato Group, says entrenched management and misaligned fee structures contribute to the rise in shareholder activism across the sector. He suggests that boards should periodically re-tender management contracts to ensure alignment with shareholder interests. While some trusts have begun to adapt by reducing fees and improving transparency, more comprehensive reforms are necessary to restore investor confidence.

The Financial Conduct Authority (FCA) is facing criticism for its lack of action in protecting small investors from aggressive tactics by US raider Boaz Weinstein. The Mail’s Ruth Sunderland says that, despite multiple rejections from trust boards, Weinstein’s Saba Capital continues its siege on several investment trusts. Simon Walls, interim executive director for markets at the FCA, has shown little willingness to intervene, stating that trust boards can amend their articles or take legal action. This, Sunderland asserts, raises concerns about the FCA’s commitment to safeguarding investors.

From April 6, expats will see a significant increase in the cost of building a UK state pension, with contributions rising over 400%. Currently, many pay £180 annually for Class 2 National Insurance contributions, but this eligibility for this will soon end for most expats, meaning they will have to pay Class 3 contributions which cost over £900 a year. Chancellor Rachel Reeves stated the change aims to address unfairness in pension eligibility. Andreas Hollas from Titan Wealth International warned that some expats could face an additional £25,000 in costs to secure a full pension.

Only 18% of Scottish small businesses plan to hire new staff, down from 24% last year, according to a study by Novuna Business Finance. While 65% aim to grow, this is a decrease from 70% in the previous year. Joanna Morris, head of insight at Novuna, said: “Job creation is a casualty of this defensive, cost-control posture and is not good news.” Many firms are prioritising cost-cutting measures, with 62% focusing on reducing fixed costs and 44% on protecting cashflow amid rising inflation and geopolitical tensions.

Stuart Machin, CEO of Marks & Spencer, warns that rising costs and Labour’s new regulations are squeezing entry-level job opportunities for young people. He noted that youth unemployment has reached an 11-year high of 16%, with nearly 1m young people classified as NEETs. Machin said: “We’re losing out on limitless potential and letting down a generation of kids just like me.” He stressed the importance of retail and hospitality in providing first job experiences, urging a reevaluation of policies that disincentivise hiring young workers.

JPMorgan Chase is seeking business rates incentives for a proposed £3bn office development in Canary Wharf, potentially the UK’s largest office building at 3m sq ft. Government proposals include a discount of up to 100% on business rates, with officials warning the project may not proceed without certainty on property tax costs. The scheme, expected to house 12,000 staff, could add £9.9bn to the economy and create 7,800 construction jobs. However, concerns have been raised by local businesses and industry groups over fairness, as other firms face rising rates.

The Financial Conduct Authority (FCA) has issued a warning regarding prediction markets, such as Polymarket, which may breach regulations against gambling-style products. The FCA described these products as “speculative” and akin to binary options, which were banned for retail investors in 2019 due to their gambling-like nature. The FCA said: “Where prediction market products reference financial or certain climatic events, they fall within our regulatory perimeter.” The regulator is considering further analysis of these products, which should not be available to customers in Britain.

Reform UK’s deputy leader Richard Tice has expressed interest in a new trade pact with Canada, Australia, and New Zealand, known as CANZUK. He stated that the party is eager to explore further discussions to enhance Britain’s economy and national security. The initiative is gaining traction among Labour party members, with around 30 MPs recently meeting to promote the idea, whilst Tory party leader Kemi Badenoch has also thrown her support behind the CANZUK agenda. The economic output of the four nations totals £6.4trn, putting the group behind only the US, China and the EU.