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26/08/2026

NEWS Wednesday, 26th August 2026

PM refuses to rule out Budget tax rises

Andy Burnham has refused to rule out tax rises in the Budget, warning that the public finances are in a "challenging" state. While the Prime Minister said previously announced measures, including scrapping VAT on electricity bills and restoring the £2 bus fare cap, would be funded by reprioritising spending, he left the door open to further tax increases, saying future measures would be carefully considered and fully funded. Mr Burnham has pledged to stick to Labour’s manifesto commitment not to increase income tax, VAT or employee National Insurance, meaning Chancellor John Healey has a narrower range of options for raising revenue. Asked whether he would need to fill in spending gaps with tax hikes, the PM said: "I will always take a careful approach to things." Shadow Chancellor Sir Mel Stride said that Mr Burnham is "staring down the inevitable barrel of tax rises."
Financial Times The Daily Telegraph Daily Mail The Independent

TAX

Tax hikes not needed, says economist

Chancellor John Healey can deliver "immediate remedial action" for the economy in the upcoming Budget without raising taxes, according to Simon French, a Panmure Liberum economist who previously worked at the Treasury. He argues that the £22.7bn fiscal headroom has not deteriorated dramatically, with stronger growth and higher equity prices potentially offsetting pressures from energy prices and gilt yields. He highlights that growth has been better than expected, potentially reducing the fiscal buffer by £5bn. Mr French suggests that major tax changes could still be needed to fund wider policy ambitions that could cost an extra £39bn a year. He says extending National Insurance to savings and investments, replacing inheritance tax, introducing a flat rate of pension tax relief and reforming property taxes are among options for raising substantial revenue.
City AM

Poll reveals tax cut hopes

New Ipsos polling shows that people are increasingly hoping to see personal tax cuts, even if it means spending less on public services, with support rising from 36% to 45% since February. The shift has been driven mainly by Conservative and Reform voters, while many Labour and Liberal Democrat supporters still favour higher public spending. Meanwhile, 70% of those polled believe the Prime Minister is likely to raise personal taxes in the coming year, a decrease from 77% in October. Ipsos' senior director, Gideon Skinner, said: "Demand for better quality public services has been a consistent theme over recent years, but we are also seeing a growing proportion of Britons prioritising direct tax relief and national debt reduction over higher state spending funded by taxes or borrowing."
Daily Star

Business leaders criticise 'creep of tax rises'

Prominent business leaders have joined a campaign urging the Government to halt the "creep" of tax rises on entrepreneurs, warning that higher taxes on dividends, capital gains and business assets are deterring investment and job creation. In an open letter, signatories including billionaire political donor John Caudwell and retail veteran Lord Rose criticise Labour's tax hikes on dividends and capital gains. The letter warns that a "steady creep of tax rises and reductions in entrepreneurial reliefs is making it harder to build and scale a business in the UK." Separately, the Institute of Economic Affairs has warned that taxes on investment have risen by 10 percentage points since the 2008 financial crisis, while the growing complexity of the tax system and a heavier burden on personal incomes are further weakening incentives for enterprise and growth.
City AM

Haldane calls for tax moratorium

Andy Haldane, a former Bank of England chief economist, is calling for a three-year moratorium on further tax increases on households and businesses to restore private-sector confidence. He argues that any future fiscal shortfalls should be addressed through public spending cuts rather than higher taxes or additional borrowing. Mr Haldane also proposes a "growth delivery test" for all fiscal measures, assessing their impact on private-sector spending, investment, risk-taking and employment. He argues recent Budgets were unnecessarily complex and, in some cases, damaging to business confidence. This comes amid speculation of potential tax rises in the upcoming Budget, as private sector wage growth lags behind public sector increases.
The Daily Telegraph

Two-thirds of people back higher bank taxes

The Trade Union Congress (TUC) is calling for a bank windfall tax ahead of the October Budget, with polling showing that 65% of the public support taxing banks’ excess profits. The TUC has suggested that an existing 3% profit surcharge could rise to at least 8%, on top of the 25% corporation tax rate, which it estimates would raise £9bn over four years. A 16% surcharge could raise £24bn, while a 35% rate could generate up to £60bn. Banks have warned against higher taxes, with JPMorgan chief executive Jamie Dimon saying that higher levies could push lenders overseas. UK Finance, which says the sector paid £43bn in taxes last year, has warned hikes would "reduce UK competitiveness."
Daily Mirror

Workers face £468m hit from salary sacrifice cap

The Treasury is expected to collect an additional £468m annually in National Insurance contributions (NICs) due to a new £2,000 annual cap on salary sacrifice schemes. This change will impact workers directly, increasing their NICs. Although 4.3m workers will be unaffected, those affected are expected to pay £84 more on average, with critics warning employers could also pass much of their costs on through lower wages. HMRC expects more than 2.8m workers to reduce pension contributions, while the Treasury estimates the reforms will raise £4.8bn overall, including higher income tax receipts.
The Daily Telegraph

Savers face tax hit from threshold freeze

Millions of people could face tax bills linked to their savings as frozen Personal Savings Allowance thresholds fail to keep pace with higher interest rates. Yorkshire Building Society estimates that 5.3m non-ISA accounts will earn more than £1,000 in interest, with the analysis showing that the number of accounts exceeding that level has risen by 1,047% since 2018. The PSA has remained unchanged since 2016, allowing basic-rate taxpayers £1,000 of tax-free savings interest and higher-rate taxpayers £500, while additional-rate taxpayers receive no allowance.
Daily Express

HMRC warns crypto holders on taxes

HMRC issued over 81,000 letters to cryptocurrency holders in the past year, warning them of potential capital gains tax liabilities. This figure nearly tripled from the previous year, reflecting increased scrutiny on crypto investments. As of March 2027, cryptocurrency platforms outside the UK must share customer data with tax authorities, making it easier for HMRC to enforce tax compliance.
BBC News Daily Mail

ACCOUNTING

ACCA questions tax offence

HMRC’s proposal for a new criminal offence targeting taxpayers who recklessly make false statements about direct taxes has drawn criticism from the ACCA, which questions why existing civil penalties and fraud laws are insufficient. The proposed offence could carry a maximum sentence of two years in prison, an unlimited fine, or both, but would apply only where someone knowingly disregards an obvious risk that a statement is false - not to genuine mistakes, reasonable interpretations of complex tax law or simple carelessness. The Government says the measure would close a gap between direct and indirect taxes, giving prosecutors an option in cases where recklessness can be proved but dishonesty cannot. It argues the change would improve consistency and help tackle the £46.8bn tax gap. Glenn Collins, head of technical and strategic engagement at ACCA, said: "A reassessment of all existing powers is overdue," adding: "Piecemeal additions and changes without an evaluation of the current powers HMRC have have resulted in issues for HMRC, taxpayers and agents."
Daily Express

SMEs

Shift ban could backfire

A proposed ban on last-minute shift changes could harm the economy, according to the Federation of Small Businesses (FSB). The FSB, representing 5.5m firms, argues that requiring at least seven days' notice for rota changes will lead to staff shortages. They warn that this could disproportionately affect those with caring responsibilities and health issues. The FSB said: "Ending on-the-day offers of work is tantamount to excluding many people in this position from the labour market." The Government's plan may cost businesses up to £3bn annually due to increased bureaucracy and fines.
The Sunday Telegraph

Reform UK unveils plan for small businesses

Reform UK's economics spokesman Robert Jenrick has announced a comprehensive package of tax and regulatory reforms aimed at small businesses, calling it the "biggest plan" in a decade. The proposed changes include scrapping GDPR in favour of a lighter regulatory framework, which the party says will stimulate innovation. Jenrick said: "Under a Reform government, the UK will be the best place in the world to start and grow a small business." Other measures include reversing national insurance hikes and expanding the Seed Enterprise Investment Scheme.
City AM

ECONOMY

Government borrowing exceeds expectations

Office for National Statistics (ONS) data shows that Government borrowing unexpectedly rose to £1.8bn in July. This was £700m higher than a year earlier, despite economists having expected borrowing to be zero and the Office for Budget Responsibility (OBR) predicting a £500m surplus. July saw income tax receipts of £17.1bn, with this up £1.7bn year-on-year. However, this was outweighed by higher spending. Social benefit payments rose by £2bn, while debt interest costs increased by £700m to £7.7bn. Borrowing over the first four months of the financial year reached £56.7bn, exceeding OBR forecasts, although it remained £6bn lower than a year earlier following revisions to previous data. Total UK debt stands at £2.985trn, or 94.1% of GDP.
The Daily Telegraph BBC News The I The Independent The Times

CBI urges tax cuts to tackle youth unemployment

The Confederation of British Industry (CBI) has urged Chancellor John Healey to reduce national insurance contributions (NICs) for employers to address the youth unemployment crisis. Noting that over 1m young people are classified as Neet, the CBI recommends cutting the headline NICs rate from 15% to 14% and extending exemptions for workers under 25. CBI Chief Executive Rain Newton Smith said: "Young people have a tremendous amount to offer, yet too many are locked out of the labour market."
City AM

Inflation rises to 2.9% as energy prices climb

Office for National Statistics data shows that UK inflation reached 2.9% in July, the highest level in four months, with the increase driven by soaring energy costs. The report says that gas prices have surged amid the conflict in the Middle East, leading to a 13% increase in the energy price cap. Suren Thiru, chief economist at the ICAEW, said rising inflation "is likely to become the biggest threat to UK growth in the coming months."
Financial Times BBC News Daily Mail

24/08/2026

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19/08/2026

NEWS Wednesday, 19th August 2026

HMRC cancels 48,000 tax penalties

HMRC overturned a record 48,189 tax penalties in 2025/26, with this 4% up on the previous year. The analysis shows that around 65% of the penalties that taxpayers appealed were cancelled. The figures have raised concerns about HMRC’s use of automated systems to issue penalties for missed Self Assessment, VAT and tax-payment deadlines. It is noted that for taxpayers within the scope of Making Tax Digital, automatic fines have been replaced with a new penalty-points system. Instead of an immediate £100 fine for a missed quarterly return, taxpayers will receive a penalty point. If deadlines are missed four times in two years, a £200 fine is issued. The HMRC data shows that the overall number of penalties issued has fallen from around 9.1m in 2024/25 to 8.1m in 2025/26.
The Daily Telegraph

TAX

Bank boss warns against higher taxes

JPMorgan Chase chief executive Jamie Dimon has urged Chancellor John Healey not to hike taxes on banks, warning the move would drive away jobs. This came after the Trades Union Congress urged Mr Healey to increase the surcharge paid by banks to help cut the cost of living for workers. Other bank bosses are reportedly set to hold talks with the Chancellor over the matter. Meanwhile, Sir Howard Davies, the former chairman of NatWest, has warned that increased taxes on banks could lead to higher mortgage costs and drive lenders out of the UK. He explained that the banking sector is already the most heavily taxed in Europe, with a total tax rate of 46.6%. Sir Howard cautioned that further taxation would reduce deposit rates and increase borrowing costs for households.
Bloomberg Financial Times The Daily Telegraph

Tax liability set to exceed OBR estimate

By 2030, 44.6m people will be liable for income tax, an increase of 1.1m from previous Office for Budget Responsibility estimates. This rise is attributed to frozen thresholds, which pull more workers and pensioners into the tax net. The current tax year alone will see an additional 500,000 basic-rate, 410,000 higher-rate, and 70,000 additional-rate taxpayers. Average taxpayers will pay £640 more in 2026/27 than in 2024/25. Campaigners have described the freeze as a stealth tax that is disproportionately affecting middle earners and retirees.
Daily Express

Stride: Exit tax could scare off investors

Shadow Chancellor Sir Mel Stride has warned that a proposed exit tax could deter investment in the UK. He said such a levy would drive "wealth creators running for the hills" and called on Labour to rule it out. Sir Mel said: "Labour are always looking for more ways to raise taxes on hardworking people. Andy Burnham needs to urgently rule out more tax rises and reassure families, businesses and investors." He added: "An exit tax would destroy investment in this country and see wealth creators running for the hills - along with the tax revenues they generate. That would only mean higher taxes for everyone else." A Treasury spokesperson refused to rule out an exit tax ahead of the Budget.
Sunday Express

PM told to end inheritance tax on farms

The Prime Minister is under pressure to reverse the inheritance tax on family farms. Andy Burnham acknowledged that Labour has "a long way to go to build back trust" with farmers after the previous government introduced new inheritance tax laws targeting farms. Shadow Chancellor Sir Mel Stride argued that to regain trust, Labour must eliminate the family farm tax. Burnham recently announced a £65m funding package for farmers affected by drought.
Daily Express

Labour MP calls for stamp duty rethink

Callum Anderson, the Labour MP for Buckingham and Bletchley, has urged Chancellor John Healey to reconsider stamp duty on shares in the UK. In a LinkedIn essay, he argued that the current 0.5% tax discourages investment and makes UK shares less appealing than international companies. Anderson said cutting the duty could stimulate growth, proposed further investment reliefs and a potential defence gilt to support military spending.
City AM

Record 4.5m people set to pay tax on savings

Revised HMRC figures reveal that a record 4.5m savers, which is 1.7m more than initially estimated, will pay income tax on their personal savings this year. The increase is driven by frozen allowance thresholds, prolonged high interest rates, and updated forecasting methodologies that now account for pensioners relying solely on the state pension.
The Daily Telegraph

ACCOUNTING

AI investment leaves accountancy firms vulnerable

Accountancy firms are investing heavily in AI but neglecting security, exposing themselves to cyberattacks. A report by Fastly reveals that over 75% of AI-first businesses take 80 days longer to recover from security incidents. Nearly half of these firms reported AI being exploited in their latest breaches, averaging 54 incidents annually. Marshall Erwin, chief information security officer at Fastly, said: "Cyber criminals target accounting firms for the privileged access to sensitive financial information they hold."
City AM

SMEs

UK start-ups lose faith in Buy British pledge

UK start-ups are increasingly disillusioned with the Government’s procurement efforts, according to the Startup Coalition. The group said that Andy Burnham's "Buy British" initiative must address deep-rooted procurement issues to support the sector effectively. They noted: "This really is the last-chance saloon after successive administrations have delivered warm words but little real action." Despite a target set by David Cameron in 2015 for one-third of procurement to go to small businesses, only 21% was achieved last year. The majority of government tech spending, for example, went to foreign firms.
The Times

ECONOMY

Bond sell-off raises concerns about rate rises

Borrowing costs across major Western nations and Japan have reached multi-decade highs as government bond yields surge. This global bond sell-off is driven by fears of resurgent inflation, largely fuelled by sustained high oil prices from the conflict in Iran, which could force central banks to increase interest rates. Additionally, investors worry that heavily indebted governments will embark on fresh borrowing sprees, further straining national budgets with elevated interest rate payments.
The Daily Telegraph

Energy prices threaten UK inflation surge

UK inflation is expected to rise to 2.9% in July, up from June's 2.6%, due to increased energy prices. Ofgem's recent hike in the energy price cap will add 0.5 percentage points to inflation, according to Ellie Henderson, an economist at Investec. She said the increase will complicate the Bank of England's efforts to meet its 2% inflation target. While easing motor fuel inflation may provide some relief, rising food prices from crop shortages due to heatwaves could further strain household budgets.
City AM

12/08/2026

NEWS Wednesday, 12th August 2026

Think-tank calls for 52% top rate of tax

Think-tank Bright Blue has proposed raising the top rate of income tax to 52% to fund workplace-style benefits for self-employed workers as part of a major overhaul of National Insurance (NI). The think-tank wants employer NI to be abolished and employee and self-employed NI rates to be brought together at the lower level currently paid by the self-employed. To cover the lost revenue, it proposes raising income tax rates, including introducing a new 13% band for earnings between £5,000 and £12,570, increasing the basic rate from 20% to around 31%, the higher rate from 40% to around 48%, and the top rate to 52%. The reforms would allow self-employed workers to access benefits such as Universal Credit, parental leave, sickness pay and state-funded pension contributions. Bright Blue argues that the current system leaves a £10bn tax gap because self-employed people pay substantially less in NI than employees. Conservative chairman Kevin Hollinrake has voiced concern that higher taxes on entrepreneurs would weaken incentives to start and grow businesses.
The Daily Telegraph

TAX

Londoners face the biggest IHT bills

HMRC data analysed by NFU Mutual shows that Londoners pay the highest average inheritance tax bill in the UK, at £297,000. This is more than double the £120,000 average recorded in Northern Ireland. While London has the highest average, the South East of England raised the most overall, with 6,310 estates paying £1.83bn, compared with £1.43bn from 4,810 London estates. Together, London and the South East accounted for £3.26bn, or 46%, of the £7.03bn inheritance tax raised across the UK. In total, 30,400 estates paid an IHT bill in the year to the end of April 2024. Sean McCann, chartered financial planner at NFU Mutual, has warned that frozen tax-free allowances and rising property and asset values are bringing more families into the inheritance tax net, while the planned inclusion of pensions in inheritance tax from April 2027 is expected to increase the number affected even further.
Daily Express

HMRC tax plan prompts cash flow concerns

HMRC plans to introduce monthly tax payments for self-employed workers from April 2029 could force millions of taxpayers to pay the equivalent of two years’ tax within 14 months, experts have warned. Under the proposed system, self-employed people, landlords and those with investment or side-hustle income would move from the current system of two annual payments to a PAYE-style monthly collection method. However, during the transition period, taxpayers who already make advance payments could face overlapping bills. Around 3.6m people could be affected, as about 30% of the 12m Self-Assessment taxpayers currently make payments on account. The Association of Taxation Technicians warns that forcing the self-employed to pay two years of tax in 14 months could lead to significant cash flow issues.
The Daily Telegraph

Tax a concern for Britain's millionaires

According to a survey by Wealth Club, higher taxes are the primary concern for 49% of Britain's millionaires. The poll found that 26% worry about future government policies, while only 9% see geopolitical events as a significant threat. Inheritance tax was the biggest tax concern, cited by 22% of respondents, followed by the potential introduction of a wealth tax (21%) and increases to capital gains tax (18%). Nearly all of the surveyed millionaires anticipate tax increases in the coming year. It was also shown that 63% expect higher inflation and nearly six in 10 believe that the Bank of England will increase interest rates.
The Independent

Life insurance sales surge ahead of tax changes

A rush to protect families from planned inheritance tax changes on unused pension savings has driven a sharp rise in life insurance demand. From April next year, pension pots and death benefits will become subject to inheritance tax, prompting many savers and business owners to seek ways to cover potential liabilities. Royal London said customers with sizeable pension pots, particularly small-business owners, are increasingly turning to advisers who often recommend life insurance to pay future tax bills and avoid forcing families to sell businesses.
The Daily Telegraph

Pension withdrawals lead to tax overcharges

More than 12,500 people were overtaxed after making flexible pension withdrawals between April and June 2026, with HMRC refunding £50.3m. The average repayment was almost £4,000. This occurs because the system assumes a single withdrawal will be repeated every month of the year, artificially inflating the person's expected annual income and triggering higher-rate tax brackets. Despite calls for reform, thousands of pension savers continue to face this issue each year.
Sunday Express

Pensions plan risks creating a two-tier tax system

A new tax policy that will include unused pension pots in inheritance tax (IHT) calculations has drawn criticism. Families will not be able to claim loss relief on pensions, unlike other assets, and Rachel Vahey of AJ Bell argues that this could create a "two-tier" tax system. Adam Cole from Quilter said: "Two complex tax ideas are being forced together... It's too complex a system, and they've tried to import some of the IHT regime on to pensions."
The Daily Telegraph
Investors concerned over tax plans
A survey by Boring Money shows that just 7% of investors believe that Prime Minister Andy Burnham's policies will benefit their own finances, compared with 50% who expect a negative impact. The biggest concern is potential changes to capital gains tax, cited by 76% of investors, followed by a possible wealth tax (64%), land and stamp duty reform (51%) and inheritance tax (50%).
FT Adviser

ACCOUNTING

Moriarty calls for ‘once-in-a-generation’ reset of reports

Richard Moriarty, chief executive of the Financial Reporting Council (FRC), has criticised the excessive length of annual reports, which now average 98,000 words. He argues that this detracts from boards' focus on innovation and growth. On the need for reform, he says: "Wouldn't it be good if this were a once-in-a-generation reset?" In an interview with the Mail on Sunday, Mr Moriarty also highlights a regulatory gap allowing large private companies to face lighter oversight than their listed rivals, despite being systemically important. He also questions whether traditional annual reports and virtual shareholder meetings remain fit for purpose and supports modernising corporate reporting. Mr Moriarty says audit quality in the UK "has come a hell of a long way" since a wave of scandals and corporate failures, accepting that there was "a breakdown of public trust in the audit profession and its regulation." Noting that "too often, when a company fails, people blame the auditors," he argues that "simply blaming the auditor is a bit like blaming the goalkeeper when the defence has walked off the pitch. The first line of that defence is meant to be the board." He goes on to assert: "The role of the FRC is to underpin trust and confidence in UK plc and support growth, but we are very clear our role is not to prevent corporate failure."
The Mail on Sunday

SMEs

Small traders earn less than £8 hourly

Small business owners in the UK are facing financial strain, with many paying themselves just £7.75 an hour. The latest Small Business Barometer from Enterprise Nation reveals that 76% of owners earned under £20,000 this year, a rise from 63% last year. The study also highlighted a reluctance to borrow, with only 40% seeking external funding. It was also shown that late payments from customers have worsened, costing small firms £26bn in overdue invoices.
Sunday Express

ECONOMY

UK national debt hits £3trn

The UK’s national debt has reportedly passed £3trn, according to analysis by the TaxPayers’ Alliance, highlighting the growing pressure on public finances. Office for National Statistics data shows that Britain’s debt stood at £2.99trn at the end of June. While official data for July have not yet been published, if public sector net debt increases by the more than £20bn seen in July 2025, the debt would pass the £3trn mark. In March, the Office for Budget Responsibility forecast that the national debt would breach the £3trn milestone in September. The TaxPayers’ Alliance estimates that the Government is now borrowing £4,270 every second, or £369m per day. The UK’s debt-to-GDP ratio has climbed to around 95%, compared with below 30% in 2004. John O'Connell, chief executive of the TaxPayers’ Alliance, who noted that the debt burden equates to around £103,000 per household, said: "Despite repeated warnings, politicians have allowed the national debt to run out of control."
The Daily Telegraph City AM

ONS data expected to reveal Q2 growth

The UK economy is projected to have grown in the second quarter of the year, despite the ongoing impact of the conflict in the Middle East and supply chain issues. With the Office for National Statistics set to release its latest economic data this week, economists think GDP will have increased 0.4% by between April and June. This would mean the economy has posted growth for a second consecutive quarter, having seen a 0.6% rise in the first three months of 2026. Although the economy is forecast to have grown in Q2, Rob Wood, chief UK economist for Pantheon Macroeconomics, is expecting monthly GDP to dip by 0.1% in June. Thomas Pugh, chief economist for RSM UK, is more optimistic about June, forecasting that that economy will "nudge up" by 0.1%.
Daily Mail

OTHER

£1.6bn pulled from funds amid tax uncertainty

UK investors withdrew £1.6bn from stock market funds in July amid growing concerns that the Government could raise taxes, according to fund network Calastone. The outflows marked the worst month for equity fund withdrawals since late 2025, when investors reacted to fears ahead of the Budget, and represented the fifth-largest monthly withdrawal in 11 years. Over the past year, investors have pulled a record £13.9bn from funds. Calastone said uncertainty over possible wealth taxes, higher capital gains tax, changes to pension allowances or an exit tax had unsettled investors. The firm also said previous tax changes, including the decision to bring pension pots within inheritance tax rules, were prompting some investors to withdraw money.
The Daily Telegraph

05/08/2026

NEWS Wednesday, 5th August 2026

CGT hike could cost the Treasury £7.8bn

Former Labour leader Lord Kinnock has urged Prime Minister Andy Burnham to raise capital gains tax (CGT) in his first Budget by aligning CGT rates with income tax rates. He says such a move would be a fair reform and could raise an estimated £12bn for the Treasury. Critics have warned that higher CGT could discourage investment and encourage people to delay selling assets. While aligning CGT with income tax has the support of senior Cabinet members including Louise Haigh, the First Secretary of State, and Wes Streeting, the Defence Secretary, analysis from investment platform IG suggests that the changes would probably cost the Treasury £7.8bn a year.
The Daily Telegraph

TAX

Number of wealthy non-dom taxpayers shrink

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.
Financial Times The Daily Telegraph

HMRC plans could see higher fines for errors

Tax experts have criticised HMRC proposals that could impose much higher penalties on taxpayers who fail to correct mistakes after being notified. Under the plans, an error that is currently treated as careless could be reclassified as deliberate if not fixed within a set timeframe, increasing maximum fines from 30% to 100% of the tax owed. The changes, experts say, could particularly affect freelancers, self-employed workers and landlords. HMRC could also gain powers to investigate up to 20 years of financial records for such cases, compared with the current six-year limit for non-deliberate errors.
Daily Express

Campaigners call for windfall tax on UK banks

Campaigners are advocating for a windfall tax on UK banks, saying the levy could raise £19bn to the fund the Government's cost of living initiatives. With the collective profits for the UK's four largest banks – HSBC, NatWest, Barclays and Lloyds – hitting £29.2bn over the first six months of the year, campaigners argue that banks can afford the tax, noting that they have pledged £13.7bn to shareholders. Positive Money suggests that the Government could replicate a levy rolled out in Spain, targeting any UK revenues above £800m with a 38% tax, in line with the energy profits levy introduced for oil and gas companies announced in 2022.
The Independent Daily Mirror The Guardian

Two-thirds support wealth tax proposal

According to a poll by The i Paper, 66% of British voters support a wealth tax on assets exceeding £10m. Only 10% oppose the idea, which has garnered backing across political lines. Prime Minister Andy Burnham has not dismissed the concept, stating: "I'm not going to rule things out right now." Economists estimate that such a tax could generate £10bn annually, impacting the wealthiest 1,000 households. While Labour and Liberal Democrat voters show the strongest support, Conservative and Reform voters also back the proposal, with 61% and 63% in favour, respectively. Equalising capital gains tax with income tax had a split in support along conventional political lines.
The I

PM says mayors will not be allowed to undermine tax policy

Mayors in England will not be allowed to offer tax rebates to constituents under new devolution plans, according to Louise Haigh, the First Secretary of State. She said the income tax share for mayors should be reinvested in public services instead. Her comments come after Lord Houchen, the mayor of Tees Valley, argued that allowing families to keep more of their earnings would stimulate economic growth. Andy Burnham later directly rejected the idea of mayors giving their taxpayers rebates, saying local leaders should not be turned into "mini-chancellors of the exchequer, undermining or rewriting policy on tax and personal finance."
The Daily Telegraph BBC News Daily Express Daily Mirror

Labour's tax speculation hits business

The Institute of Directors (IoD) warns that Labour's policy uncertainty and ongoing tax speculation are damaging business confidence in the UK. A poll of over 500 business leaders revealed a slight decline in confidence in July. IoD chief economist Anna Leach said: "Looking towards the autumn, there's a risk that cost pressures rise further in light of renewed conflict in the Middle East, reinforcing the squeeze on households and businesses. Businesses also note that policy uncertainty has worsened as the UK undergoes a further change in political leadership."
Daily Mail

Pensioners pay 40% more tax in two years

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. The number of pensioners paying income tax is projected to rise from 7.1m to 9.6m by 2026/27.
The Daily Telegraph City AM Daily Express Daily Mail
HMRC's inheritance tax crackdown nets £1.36bn
HMRC has recovered £1.36bn from families due to underpaid inheritance tax over the past five years. Investigations arise from suspected errors or omissions in estate valuations. NFU Mutual, which obtained the figures via a Freedom of Information request, warns that HMRC has extensive powers to scrutinise financial affairs. The total inheritance tax collected reached nearly £8.5bn last year.
Daily Mail

ACCOUNTING

FRC shares insights into materiality in corporate reporting

The Financial Reporting Council has published insights to support boards, preparers and investors in the application, and assessment, of materiality within corporate reporting. The insights "are intended to help companies, investors and other stakeholders by acting as prompts to stimulate thinking and build a clearer understanding of how materiality can be considered in practice," the regulator said.
Financial Reporting Council

FRC makes minor amendment to ARSP and CD RASP

The Financial Reporting Council (FRC) is to make a minor amendment to the Auditor Regulatory Sanctions Procedure and Crown Dependencies' Recognised Auditor Sanctions Procedure. The amendment will transfer the responsibility to appoint a secretary to an Independent Sanctions Tribunal from the FRC’s Conduct Committee to the FRC’s People Committee, with effect from 1 November.
Yahoo! Finance

SMEs

Ministers urged to ease uncertainty for SMEs

Small business confidence in England remains under pressure, according to a survey by Novuna Business Finance, but there are signs of resilience. The proportion of small firms expecting growth has reached 24%, its lowest level in 12 years, as businesses navigate higher energy costs, global uncertainty and subdued economic conditions. However, the North West bucked the national trend, with growth expectations rising from 26% to 28%, suggesting stronger optimism in the region as new Prime Minister Andy Burnham begins his pro-business agenda. London also continues to show relatively strong expansion expectations at 36%, despite being below previous levels. The figures highlight that while many SMEs remain cautious, businesses are continuing to plan for growth and respond to a challenging environment. Industry experts note that reducing uncertainty will be key to restoring confidence, with stability and supportive policies likely to help unlock further investment and expansion.
The Standard

ECONOMY

Labour promises could cost £63bn by 2030

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.
City AM

Bank of England holds interest rates at 3.75%

The Bank of England has 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.
Financial Times The Guardian

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