Lucy Rigby, economic secretary to the Treasury, has acknowledged the importance of the tax regime for attracting fintech listings in the UK. During the Innovate Finance Global Fintech Summit, she highlighted the recent stamp duty reduction for newly-listed companies as a step towards enhancing the capital market. However, concerns persist, as top fintech unicorns have indicated that these measures may not be sufficient to encourage them to list in London. Rigby stated: “This is about a direction of travel… to drive growth.” Her comments came as the Treasury announced plans to streamline regulations for stablecoin payments.

The UK Government is likely to implement new “stealth taxes” in the upcoming Budget, according to the deVere Group. Regional director James Green stated that the UK’s debt interest is nearing £100bn, while economic growth remains below 1%. This situation creates a £20bn funding gap that must be addressed. Green noted that freezing income tax thresholds until 2028 could pull more taxpayers into higher bands without raising rates. He said: “Freezing thresholds for longer is one of the easiest ways to raise billions.” Other areas for potential tax adjustments include capital gains and inheritance taxes.

Unemployment in the UK fell to 4.9% in the three months to February, down from 5.2% in January, according to the Office for National Statistics (ONS). However, the ongoing conflict in the Middle East is expected to lead to job cuts. Wage growth also slowed, with private sector pay growth dropping to 3.2%. Liz McKeown, director of economic statistics at the ONS, noted: “The number of workers on payroll remained broadly flat in recent periods, reflecting ongoing weak hiring.” The EY Item Club forecasts unemployment could rise to 5.8% by mid-2027 due to the crisis.

A former member of the Bank of England’s Monetary Policy Committee has warned that interest rates may need to rise this year to combat inflation. Michael Saunders cites rising food and fuel costs due to the Iran conflict, predicting inflation could reach 4.5% from the current 3%. The Bank’s recent decision to maintain rates at 3.75% may change if inflation continues to rise. Saunders said: “It would probably be less costly to tighten this year and then loosen if needed next year.” Paul Dales from Capital Economics supports this view, suggesting a potential rate hike if inflation trends upward.

JP Morgan Chase is expanding its security and resilience initiative to Europe and the UK. The 10-year plan aims to invest $1.5tn in critical sectors like defence, energy, and AI.

The UK Government plans to increase the electricity generator levy from 45% to 55% to prevent renewables producers from making “exceptional profits” during the Middle East crisis. However, generators who voluntarily switch to fixed-price deals will be spared from the tax raid. The change aims to break the link between high gas prices and high electricity prices. But industry leaders said the plan would fail to bring down costs. Kathryn Porter, an independent energy analyst, said: “The whole thing is a mess. This entire plan might end up smoothing costs at a higher level than they are now.” Rachel Reeves also vowed to unlock “tens of millions” of barrels of oil and gas in the North Sea by allowing offshore operators to open new oil and gas fields near existing projects. The announcement followed claims from Energy Secretary Ed Miliband that the era of fossil fuel security was over and the Government would now “double-down” on clean energy.

The House of Lords has for the second time blocked the Government’s plan to force pension schemes to invest billions of retirement savings into private markets, sending the Pension Schemes Bill back to the House of Commons. MPs approved a “reserve power” within the Bill last Wednesday, which would have given them the power to force schemes to invest up to 10% of their assets in private markets, including 5% in Britain. Pensions professionals said the move took investment decisions away from experts and risked damaging people’s pension pots. Peers agreed, with Baroness Altmann saying: “Forcing funds to buy high risk private assets by a legally required date is fraught with dangers. It could cause asset bubbles, investor losses and lower pensions.”

The Food and Drink Federation (FDF) warns that food inflation could rise to between 9% and 10% this year, urging the Government to act swiftly. Chief executive Karen Betts stated that the ongoing blockade of the Strait of Hormuz is exacerbating supply chain issues, leading to increased costs. Betts emphasised the need for urgent government support to prevent further price hikes and protect food manufacturers. The FDF also highlighted that UK firms are in a worse position than during the 2022 crisis, with household finances already strained. Betts said: “If we don’t get that support in as inflation starts to build, then it’s going to be too late.”

Recent research from Barclays reveals that nearly 35% of UK savers hesitate to invest due to fears of losing money. The Risk Warnings Review, commissioned by the Chancellor, highlights that the phrase “your capital is at risk” is often misunderstood, leading to misconceptions about the probability of loss and market volatility. Sasha Wiggins, CEO of Barclays Private Bank, stated: “Millions of UK adults already have the building blocks needed to consider investing, yet most lack the confidence to take that first step.” Changes to cash ISA limits may encourage some to invest, but significant barriers remain.