The number of wealthy non-domiciled taxpayers in the UK fell by 1,200 last year, according to HMRC data. A total of 9,000 non-doms left or changed their tax status, while arrivals dropped by 14% to 8,600. A further 800 “deemed-domicile” taxpayers also left. Leslie MacLeod-Miller, chief executive of Foreign Investors for Britain, warned: “Britain is losing internationally mobile wealth at an accelerating pace.” Despite the decline in numbers, non-doms paid £1bn more in tax, including a 6% rise in income tax, the highest since 2017. The FT says the difference amounts to a less than 1% change, arguing this undermines claims that tougher rules would trigger an exodus of wealthy individuals. But James Radcliffe, partner in Womble Bond Dickinson’s private wealth team, points out that the figures did not cover the tax year for 2025-26, the first in which the new rules applied.

Four major pension providers have urged Chancellor John Healey to rule out changes to the rules around accessing 25% of pension pots tax-free. They are concerned that speculation about reducing the current tax-free limit could harm household finances. Michael Summersgill from AJ Bell warned: “The absence of a lasting commitment to stability around key pension tax incentives has allowed rumours to fester.” The providers, including Standard Life and Hargreaves Lansdown, want assurance that tax-free cash will remain unchanged in the upcoming Budget.

John Swinney, the First Minister of Scotland, has defended the Government’s tax decisions after tax expert Dan Neidle claimed a panel of experts were not consulted on the decision to increase the top rate in Scotland to 48p. Neidle, founder of Tax Policy Associates, estimated the rise cost Scotland £22m due to altered behaviour among high earners. Swinney argued that “we…take advice from an assessment of our proposals from the Scottish Fiscal Commission, who are our statutory advisers on all issues in relation to tax.”

Figures from HMRC show income tax paid by pensioners has surged by £9bn over two years, reaching £30bn annually. The increase is attributed to frozen tax thresholds, pushing more retirees into higher tax brackets. However, it also means the Government faces rising costs for tax relief on pension contributions, which have risen from £47.8bn in 2022/23 to £60.4bn in 2024/25. Former pensions minister The number of pensioners paying income tax is projected to rise from 7.1m to 9.6m by 2026/27.

Small business confidence in England has dropped to 24%, the lowest level in 12 years, according to a survey by Novuna Business Finance. The construction, retail, and hospitality sectors have seen significant declines. Only the north west reported a slight increase in growth forecasts, rising from 26% to 28%. Jo Morris, Head of Insight at Novuna, said: “The context of geo-political tensions, rising fuel prices and political uncertainty following the local elections have probably all played out when it comes to small business planning. The one thing small businesses don’t like is uncertainty.”

Analysis by Capital Economics reveals that tax cuts and spending pledges proposed by Andy Burnham and John Healey could cost the UK Government between £46bn and £63bn by 2030, representing 1.5% to 2% of GDP. Chief UK economist Ruth Gregory identified the largest expenses as making social care free at the point of use, costing up to £18bn annually, and boosting council housebuilding, which could require an additional £12bn to £23bn. Another £9bn in costs could come in the form of unfreezing the £12,571 personal allowance threshold while aligning capital gains taxes with income tax rates could cost £7bn as investors either delay selling assets or pull cash out of the UK.

The Bank of England maintained interest rates at 3.75% in a 6-3 vote, choosing to monitor the US-Iran conflict’s impact on energy prices. While current borrowing costs are deemed sufficient to curb inflation, Governor Andrew Bailey noted that prolonged conflict could force rate hikes. Conversely, a credible resolution to the crisis could allow the bank to loosen monetary policy.

Ministers have been warned that planned fiscal devolution could widen regional inequalities by limiting new tax powers to areas with elected mayors. Under proposals due to be announced by Andy Burnham, mayoral authorities would retain a share of locally raised income tax and business rates to support growth and investment. However, leaders in non-mayoral areas argue they risk missing out on significant funding powers. The Government also plans to give non-mayoral strategic authorities additional powers over housing, transport, employment and economic development, although they would not receive the same fiscal freedoms.

Jaguar Land Rover (JLR) plans to cut hundreds of jobs following last year’s devastating cyber-attack. JLR’s profit before tax slumped by 99% to £14m from £2.5bn last year because of the attack. The company said it planned to cut about £1.7bn in costs over the coming years to help towards its recovery. Job losses will affect salaried and management roles and not production line staff, according to reports.