UK companies anticipate a 3.7% price increase over the next year, up from 3.4% in February, according to a Bank of England survey of over 2,000 chief financial officers. The rise is attributed to higher costs stemming from the conflict in the Middle East, with the Bank saying firms are “adjusting their expectations as a result of the recent increases in energy prices.” The Bank’s governor, Andrew Bailey, said that businesses feel a lack of pricing power amid weak consumer demand. Firms also noted that they were experiencing higher inflation in the year to March than in the year to February. The analysis shows that companies believe there will be just two interest rate cuts by 2029 and possibly just one over the next 12 months. Before the conflict in Iran started, traders thought that there would be three rate cuts in 2026, taking the base rate – currently at 3.75% – down to 3%.

Chancellor Rachel Reeves has been urged to reform the business rates system to ease pressure on the high street. The Heart of London Business Alliance has proposed a hybrid model that includes a 2% levy on online sales and a 37% reduction for physical stores. Ojay McDonald, chief executive of the Association of Town and City Management, has backed calls for a rethink, saying the current business rates system “has become a millstone around the neck of our high streets and local economies.” He added that rising rates “make investment unviable, suppress wages and hiring and reduce the resilience of our businesses.” Mr McDonald says a “modest” levy on online sales that could fund a reduction for bricks-and-mortar businesses would “relieve the crippling burden on high streets.”

Entrepreneurs, founders and start-ups are set to benefit from expanded tax breaks announced in the Budget, with the additional support potentially unlocking £100m in investment. An expansion of the enterprise management incentive (EMI) scheme will allow more companies to attract talent, with the gross assets limit quadrupling to £120m and the employee limit doubling to 500. The Government has also doubled the amount a company can raise through the enterprise investment scheme and venture capital trusts. Dom Hallas, executive director of the Startup Coalition, said that expanding EMI “is a genuine win for the start-up ecosystem,” while Eva Barboni, executive director of Enterprise Britain, said widening access to share ownership “will help more British scaleups attract and retain the people they need to compete globally.”

While sole traders and landlords with turnover of more than £50,000 a year must register for Making Tax Digital (MTD) by April 6, just 170,000 had done so by the end of March. This falls far short of the estimated 864,000 taxpayers that are required to register for digital record-keeping and quarterly updates. A FreeAgent poll in 2025 found that 39% of sole traders had never heard of MTD, while an IPSE survey in December saw just 30% say they understood the requirements. Meanwhile, a Taxfix survey of sole traders conducted in March found that 24% incorrectly believe they need to file four full tax returns a year. Craig Ogilvie, HMRC’s director of MTD, insists that sign-ups are “on track” and “continuing to build real momentum.”

The Government has seen its income from payroll tax increase by nearly 40% to £200bn since the pandemic. HMRC data shows that National Insurance contributions (NICs) reached £198bn for the year ending February 2026, up from £143bn in 2019/20. In the past year, receipts have risen by 15% after the earnings threshold at which NICs kick in was lowered to £5,000 and the main rate paid by employers rose to 15%. Robert Salter from Blick Rothenberg said that while the Chancellor “likes to claim that the increase in employers’ NIC isn’t a ‘tax on working people’, economists would generally agree that increases in employer social security costs increases joblessness,” adding: “Increases in employer social security costs increases joblessness.” Overall tax receipts are projected to reach a postwar high of 38.5% of GDP by 2030/31, according to the Office for Budget Responsibility.

Conservative leader Kemi Badenoch has proposed scrapping the UK’s carbon tax regime entirely, arguing it places excessive costs on British industry. However, industry leaders warn the move could undermine investor confidence and jeopardise billions of pounds committed to low-carbon projects. Olivia Powis, CEO of the Carbon Capture and Storage Association, said: “British industries must be protected from deindustrialisation and increasing costs, but this can be done without scrapping the carbon pricing framework which has successfully attracted billions of pounds of investment into the UK.”

Finance ministers from Spain, Austria, Germany, Italy, and Portugal have urged the European Union to impose a tax on windfall profits of energy companies due to rising fuel prices linked to the Middle East conflict. In a letter made public by Spanish Economy Minister Carlos Cuerpo, the officals told EU Climate Commissioner Wopke Hoekstra that such a measure would “ease the burden on consumers and taxpayers.” The letter argued that the tax would ensure those profiting from the war contribute to alleviating any financial strain on the general public.

Sir James Dyson has criticised Chancellor Rachel Reeves’ tax policies, describing them as “revenge economics.” He has warned that a proposed 20% inheritance tax on farming assets and delays in North Sea gas drilling threaten Britain’s self-sufficiency in food and energy. Voicing concerns over Ms Reeves’ economic policy, Sir James said: “The amount her death tax generates will be dwarfed by the loss of income tax and corporation tax as businesses disappear.” He also highlighted the Government’s failure to support local farms amid rising costs and suggested that there is little sense in “boasting about leading the world on renewables” while importing carbon at prices set by others, calling it an “inefficient and anti-aspiration” energy policy.

The Bank of England faces internal divisions on addressing inflation amid the conflict in the Middle East, with debate among Monetary Policy Committee members on the need for interest rate adjustments.

The Financial Conduct Authority (FCA) is facing criticism over the protection offered to small shareholders in investment trusts targeted by raiders. Glen Suarez, chair of Impax Environmental Markets trust, and Jonathan Simpson-Dent, chair of Edinburgh Worldwide fund, have called for the FCA to take stronger action against US hedge-fund raider Boaz Weinstein of Saba Capital. Mr Suarez has warned that it is “absolutely fair to say” that the City watchdog is “not taking enough regard of the plight of private investors,” adding that the FCA “needs to step up.” The FCA has launched a review into its rules after Saba acquired stakes in several investment trusts then tried to install its own directors on to their boards.

Data from the Office for National Statistics has revealed a steep increase in concerns about disruption to supply chains, with 37% of companies citing this as a worry. This is up from 10% at the end of last year. The poll saw 21% of respondents say they are worried about shipping disruption, three times as many as before.

The gender pay gap has increased at four major UK retail banks – Monzo, Nationwide, Santander, and TSB, according to data submitted to the Government’s gender pay gap reporting service. Analysis of data showing instances where women’s median hourly pay has fallen behind men’s shows that the financial and insurance sector has the highest gender pay gap, at 22.3%. HSBC reported the steepest gap, at 45.3% – with the data covering its investment and wholesale arms but not its consumer bank. Barclays’ gender pay gap shrank to 28%, from 30.6% last year; NatWest’s narrowed to 26.2% from 27.3%; and Lloyds Banking Group’s closed slightly to 35% from 35.5%. The only retail bank that saw its gender pay gap come in narrower that the national average of 6.9% was Starling Bank, with a discrepancy of 6.1%. As of next year, employers will be required to outline the actions they are taking to address the gap when they log their pay data.

Business Secretary Peter Kyle says reforms to workers’ rights will bring workplaces into the modern age. Changes coming into force through the Employment Rights Act include immediate eligibility for statutory sick pay and expanded parental leave, with the legislation also addressing issues like zero hours contracts and fire and rehire practices. Mr Kyle said the Government has “brought workers’ rights into the age we’re living in.”

Sir Keir Starmer is pursuing a new trade deal with the EU, potentially allowing full access to its single market. However, this could cost the UK Treasury approximately £2.9bn annually. Shadow Chancellor Sir Mel Stride has criticised the plan, saying that the Prime Minister and Chancellor Rachel Reeves are “quietly signing Britain up to send billions back to Brussels with no say, no vote and no scrutiny,” adding that the Government must “come clean now about the true cost to taxpayers.” The EU insists that any market access will require a financial contribution from the UK and argues that the UK’s fee will reflect the size of its economy.

Increasing living costs are prompting more British citizens to consider relocating abroad for retirement, according to  James Green, a regional director at financial advisory deVere. He noted that rising council tax, water, and broadband bills are squeezing household budgets, leading many to pause or reduce long-term savings. With surveys suggesting that a significant proportion of UK adults are reducing or pausing long-term savings as disposable income is squeezed, Mr Green said: “When people realise their retirement savings aren’t keeping pace with the cost of living, they start to look at alternatives.”