MPs have urged the Government to cut employer National Insurance contributions (NICs) for younger workers to tackle rising youth unemployment. The Work and Pensions Committee said employers should only pay NICs on workers aged 25 and over, rather than the current threshold of 21. MPs argued that the £25bn increase in employer NICs – which raised the rate from 13.8% to 15% and lowered the earnings threshold from £9,100 to £5,000 – has contributed to weaker hiring among young people. Business groups, including the ICAEW, have also argued that the NI hike has discouraged recruitment and investment, calling for tax cuts to support growth.

Office for National Statistics data shows that UK inflation fell to 2.6% in June from 2.8% in May, beating forecasts of 2.7% and providing an early boost to new Prime Minister Andy Burnham’s cost-of-living agenda. The decline was driven by lower fuel, food, clothing and transport prices. While Chancellor John Healey said the Government’s VAT cut on electricity bills would further help ease pressure on households, economists have warned that the improvement could prove temporary, citing higher oil prices and a rise in the energy price cap from July. Shadow Chancellor Mel Stride, meanwhile, has expressed concern over the fact that inflation remains above the Bank of England’s 2% target.

UK house price growth slowed to 2.7% in the year to May, down from 3.9% in April, with the average property valued at £271,000, according to the Office for National Statistics. The ONS said the slowdown partly reflected comparisons with post-stamp duty changes a year earlier. Analysts said elevated mortgage rates, political uncertainty and weaker buyer demand had cooled the market, while higher swap rates have prompted lenders to increase fixed-rate mortgage deals.

AI is transforming the start-up landscape by significantly reducing the capital required to establish and operate businesses. James Gibson, head of Revolut Business, noted that AI allows solo founders to streamline operations, shifting the competitive advantage towards understanding customer needs and navigating regulations. Mr Gibson added that “funding alone is only one part of the equation.” It is noted that the Government is supporting high-growth firms with £500m in funding and a visa reimbursement scheme.

Nearly 1m people in the UK will face higher tax bands due to the Government’s “stealth” freezes on thresholds, according to the Taxpayers’ Alliance. This comes with analysis suggesting that 500,000 more individuals will pay the basic rate of 20% this year, while 410,000 will fall under the higher rate of 40% and 70,000 will be pulled into the 45% additional tax rate. On average, taxpayers will pay £640 more this year compared to 2025.

The Institute of Chartered Accountants in England and Wales has urged the Government to reduce the tax burden on businesses. This comes after a survey of 875 accountant members saw more than half say that tackling taxes is crucial.

Baroness Bowles argues that third-party litigation funding has evolved into a major investment market and should be regulated by the Financial Conduct Authority (FCA), rather than relying on self-regulation. She says the sector involves complex financial risks, including opaque ownership, conflicts of interest, anti-money laundering concerns and consumer protection issues, which fall within the FCA’s expertise.

Former England striker Gary Lineker has joined 120 wealthy individuals in urging the Government to increase taxes on the super-rich. In a letter organised by Patriotic Millionaires UK, they advocate for a fairer tax system, saying: “We are proud to pay and here to stay.” The letter calls for taxes on extreme wealth to reduce inequality and improve public services, without burdening everyday workers. Academics suggest a 2% charge on those with over £100m could raise £10bn annually. Mr Lineker, now a sports broadcaster, emphasised the need for the richest to contribute more, saying: “Paying your fair share is a basic British value.”