Prime Minister Andy Burnham has been urged to reverse changes to Inheritance Tax (IHT) at the upcoming Autumn Budget.

Farmers from around the UK have called on Mr Burnham to honour his pre-election pledge to 'look again' at the changes to Agricultural Property Relief (APR) and Business Property Relief (BPR).

Prior to the Makerfield by-election, Mr Burnham acknowledged worries regarding IHT changes and pledged to revisit the matter if he became Prime Minister.

From 6 April 2026, the government implemented a £2.5 million cap per person on 100% relief for APR and BPR. Originally, the reforms were proposed with a £1 million threshold, but this was increased to £2.5 million following pressure from the farming community and business groups.

The Ulster Farmers' Union (UFU) stated that the government 'has more work to do' to rebuild trust with the farming community.

An analysis carried out by the government has revealed that a crackdown on zero hours contracts could cost businesses £2.9 billion a year.

Employment reforms carried out by Labour will cut the number of hours employees can work before they must be offered guaranteed time.

An analysis published recently showed that the reforms could cost employers between £350 million and £2.9 billion based on the eventual threshold of hours the policy impacts.

Additionally, companies could face more administrative costs and less flexibility.

Around £1.2 billion in costs would come from businesses being forced to pay employees compensation for cancelled shifts.

However, government officials said the reforms could provide a boost of £10 billion to the UK economy as a result of better productivity and employee wellbeing.

Commenting on the matter, a spokesperson for the Trades Union Congress (TUC) said: 'The aim of this legislation is to stop this practice and give variable hours workers security and stability - so good employers have nothing to fear.'

Internet link: Government

The Federation of Small Businesses (FSB) has outlined recommendations to help small firms recruit talent.

According to the business group, small firms are being 'left behind by the skills system', despite their 'crucial role' in providing opportunities for young people.

Rising employment costs put pressure on businesses to do more with less, the FSB warned. Training is increasingly one of the areas being cut, which, in turn, holds back economic growth.

The FSB has set out an action plan for England to create a national network to help employers find the best training providers and courses. It also outlined recommendations for developing a career matchmaking service and to make the apprenticeship system more accessible for small businesses.

Tina McKenzie, Interim National Chair at the FSB, said: 'Small businesses already do a great job of taking on this fresh talent, but there needs to be a renewed focus by the government on backing small firms and making the process easier for employers.

'It's good to see the new government's focus on technical education, but the skills system must reflect the needs of small businesses. Initiatives like creating a new partnership to link up employers with young people and help them provide work experience, helping find the right courses, and creating a more small business friendly apprenticeship system would be invaluable.'

Internet link: Federation of Small Businesses

A report carried out by the Institute of Directors (IoD) has revealed that business confidence remains 'subdued' as cost pressures on firms intensify.

The business group's Economic Confidence Index, which measures optimism amongst business leaders in regard to prospects for the UK economy, fell to -63 in July 2026 from -61 in June.

Business leader confidence in their own firm also fell to -2 in July from +7 in June.

Revenue expectations fell to +9 from +11 - the lowest reading in 2026.

Commenting on the data, Anna Leach, Chief Economist at the IoD, said: 'Our latest data signals a further modest deterioration in sentiment and trading conditions in July.

'Overall confidence in the economy has drifted down a little further amongst business leaders, continuing its trend of weakness and volatility since the 2024 Budget.

'Meanwhile revenue expectations have dropped to their weakest level in 2026, and alongside elevated costs, means the squeeze on margins has intensified.'

Internet link: IOD

Data published by the Office for National Statistics (ONS) has revealed that the number of job vacancies has fallen to its lowest level in over five years.

The UK unemployment rate remained at 4.9% but vacancy numbers dipped over the May to July period, totalling 707,000.

The ONS found that smaller businesses are cutting back on recruitment as labour and operating costs rise.

Growth in regular earnings rose, but private sector wages grew at their slowest pace in six years.

Responding to the data, Patrick Milnes, Head of Policy for People and Work at the British Chambers of Commerce (BCC), said: 'Although unemployment has held steady at 4.9%, this cannot hide the wider problems bedevilling the UK's job market. 

'Business confidence is at a post-Pandemic low and the squeeze on firms' finances shows no signs of easing.

'With last week's announcement that changes to zero hours contracts could cost businesses almost £3 billion, many will be reassessing their recruitment plans.'

Internet link: ONS

The British Chambers of Commerce (BCC) has set out a three-point plan for the new government.

According to the BCC, Prime Minister Andy Burnham must focus on trade, investment and productivity to support businesses and help the UK economy thrive.

Ensuring that firms have the confidence to invest is essential if they are to expand, create more jobs and adopt new technologies, the BCC said. However, too many businesses face barriers that hold back long-term investment decisions.

The business group has urged the government to create the conditions that encourage investment.

It also called for a full commitment to a fully funded, multi-year workforce plan for the UK planning service to enable increased development, more jobs and stronger local economies.

The BCC called for an acceleration in infrastructure delivery and improved access to supply chains in order to maximise the economic returns from investment, and for the government to reduce unnecessary burdens that increase costs.

Internet link: BCC

Prime Minister Andy Burnham has pledged to help ease the cost-of-living crisis for households in the UK.

Mr Burnham stated he will 'pull every single lever' to help reduce the cost of living and improve local high streets.

The government said that the Prime Minister will focus on 'everyday fixes' to ease financial pressure on UK households. Under new plans, subscriptions will be easier to cancel, and companies will be mandated to make it clearer when subscriptions will auto-renew at a higher price.

Mr Burnham has also vowed to stop retailers' use of 'pretend prices', which will prevent shops from using 'was' prices, made-up discounts or misleading recommended retail prices to promote deals.

He said: 'I know people are sick and tired of rip-off discounts and subscription traps. Westminster has got used to telling people that everyday hassles like this are just part of life.

'I don't think that's right, especially when the cost of living continues to weigh heavily on so many people's lives.'

Consumer group Which? said that it has attempted to expose businesses ripping off customers with deals that aren't what they seem.

The government intends to launch a consultation on the new measures in the autumn.

Internet link: Government

HMRC has urged customers not to ignore Simple Assessment letters for the 2025/26 tax year.

HMRC issues around 1.8 million Simple Assessment letters and stated that people should check the figures in their letter against their own records.

The letters will be sent to those who have tax to pay on income that has not been taxed through Pay As You Earn (PAYE) or Self Assessment.

Individuals may receive a Simple Assessment letter if they owe tax that cannot be collected automatically by HMRC, for example, if:

• there is tax to pay on interest on savings or dividends
• a second income has not been taxed
• tax is due on pension income
• they received more tax-free allowance than they were entitled to
• the tax cannot be collected through a tax code (for example, larger amounts owed, typically £3,000 or more).

Any tax owed should be paid by 31 January 2027, unless a different date is shown.

Myrtle Lloyd, Chief Customer Officer at HMRC, said: 'If you receive a Simple Assessment letter and have tax to pay, please don't ignore it. It is quick and easy to pay any tax owed via the HMRC app.

'If you need extra support or want to find out more, search 'Simple Assessment' on GOV.UK.'

Internet link: HMRC

The government recently announced that VAT will be cut from household electricity bills from 1 October in time to impact the next Ofgem price cap.

The move is part of new Prime Minister Andy Burnham's commitment to help ease the cost of living.

The cost of this immediate action for this financial year is being funded from the cancellation of the £1.8 billion Digital ID programme.

Any further action on energy bills will be taken at the Budget, alongside the publication of a forecast from the Office for Budget Responsibility (OBR). All decisions at that point will continue to be funded and also consistent with the government's fiscal rules.

The Prime Minister said: 'Westminster has not been working for people for too long, with families struggling with the cost of living.

'We're taking immediate action to cut taxes on energy bills, put more money in people's pockets and bring back hope.'

Internet link: .GOV

HMRC is reminding people with side hustles that they will need to tell it if they earn more than £1,000.

The Help for Hustles campaign aims to assist individuals with side hustles to 'get their tax right, quickly and easily'.

New entrants to self assessment should register for the 2025/26 tax year by 5 October 2026.They must file their online tax return and pay any tax due by 31 January 2027. HMRC has an online tool to help people with side hustles to check if and when they need to report their additional income.

Kevin Hubbard, Director of Small Business and Individuals at HMRC, said: 'For many people, a side hustle is a valuable source of extra income. If you're earning more than £1,000 a year from your side hustle it's important to understand your tax responsibilities, and HMRC wants to make that as straightforward as possible.

'You can check if you need to do a Self Assessment tax return by using the tool on GOV.UK.'

Internet link: HMRC

Significant reforms to small business finance have been announced by the government.

The centrepiece of the plans is an expansion of the British Business Bank's (BBB) Growth Guarantee Scheme (GGS) which provides a 70% government guarantee on commercial loans to SMEs of up to £2 million.

The scheme will scale up to facilitate an additional £2 billion of SME lending per year by 2028/29. This will bring the total SME lending supported through the scheme to £3.35 billion per year, more than double the current £1.35 billion.

The maximum term length of a loan is also increasing from six to ten years for loans of up to £1.1 million.

In addition, the maximum size of businesses that are eligible for a loan under the scheme is rising from £45 million in annual turnover to £54 million.

The BBB estimates these changes will support an additional 12,000 businesses per year by 2028/29, a 150% increase on the 8,000 currently being supported, bringing the total to 20,000.

Louise Hellem, Chief Economist at the Confederation of British Industry, said:

'The government deserves credit for listening to business and putting forward a package that recognises the practical finance challenges firms face. The priority now is delivery and making sure the support is simple to access, well understood by businesses and effective in crowding in private capital.

'If implemented well, these reforms can help more SMEs scale, export and adopt new technologies here in the UK – supporting productivity, stronger local economies and long-term growth.'

Internet link: HM Treasury CBI

The government is stepping up its efforts to reconnect young people with unclaimed savings in Child Trust Funds (CTFs).

Around 6.3 million Child Trust Fund accounts were opened for children born between 1 September 2002 and 2 January 201

More than 750,000 young adults still have unclaimed matured accounts, holding £2,200 on average and totalling over £1.6 billion.

CTFs were introduced to give every child a financial asset at adulthood. However, accounts can go unclaimed for a number of reasons, including difficulty locating them, people forgetting they have them, or a decision to leave the funds invested for the time being.

The government has set up a Child Trust Fund Taskforce, bringing together CTF providers to drive a coordinated effort to increase reunification of accounts.

Members of the Taskforce will include One Family, Coutts, Nationwide, HSBC UK, Pilling, The Coventry (Co-operative), Sheffield Mutual, Unity Mutual, Forester, Healthy Investments and The Share Foundation.

Rachel Blake, Economic Secretary to the Treasury, said:

'Too many young people are missing out simply because they are not aware of where their CTF is or how to access it.

'We are acting to fix that by bringing government and industry together - improving coordination and making it easier for people to find and claim what's rightfully theirs.'

Internet link: HM Treasury

Targeted subsidies, rather than expensive tax breaks, are the most cost-effective way of supporting employers to get young people into work, according to Resolution Foundation analysis.

The think tanks warns that the number of young people not in employment, education or training (NEET) passed one million earlier this year. It says this is a crisis that risks scarring the living standards of a generation.

A range of solutions have been proposed to encourage firms to hire more young people. But a Resolution Foundation report shows that there is a vast gulf in their cost-effectiveness.

The report estimated that the Youth Jobs Grant, which offers firms £3,000 to hire an 18-24-year-old who has been on Universal Credit for six months or more, will create 2,800 additional jobs at a cost of around £36,700 each.

The Jobs Guarantee, which funds six months' part-time employment for those out of work for at least 18 months, comes in at roughly £38,000 per additional job, making it three-and-a half times cheaper than scrapping employer National Insurance contributions (NICs).

Lindsay Judge, Research Director at the Resolution Foundation, said:

'One million young people outside of work, education or training is a sobering milestone – the highest figure for 13 years, and a reality that risks lasting damage to the life chances of a generation. But reaching for employer tax cuts to resolve this doesn't add up.'

Internet link: Resolution Foundation

HMRC's performance data for 2025/26 shows it has made progress on customer service but still has a way to go, according to the Chartered Institute of Taxation (CIOT).

The data shows a mixed picture with progress on compliance activity, digital adoption and HMRC's telephone service.

However, challenges remain around debt levels, correspondence handling and customer satisfaction.

The CIOT welcomed the news that HMRC has met their target of 85% of attempts to get through to an HMRC helpline adviser succeeding. This is the first time it has met their target in this area.

The CIOT also noted that HMRC has missed its other four customer experience targets.

Charlotte Barbour, Chair of the CIOT's Technical Policy and Oversight Committee, said: 'HMRC has some notable achievements in 2025/26 including record compliance yield, improved telephone performance and increased usage of digital channels. However, service levels are still below where they should be, customer satisfaction remains below target and HMRC continue to struggle with a persistently high level of tax debt.

'Use of HMRC's digital channels continues to tick up but it will need an acceleration if HMRC are to hit their target of 90% of customer interactions online by 2030. It's good news that HMRC are answering their phone lines more quickly than a year ago, but it is still taking twice as long as it did in the 2010s.'

Internet link: CIOT

Prime Minister Andy Burnham has slashed business rates for pubs, clubs and live music venues in England by 20%.

The reduction will take effect from April 2027 and will save the typical pub an estimated £1,100 next year, according to the government.

Designed to cut costs for working people and communities, the move will benefit nearly 32,000 pubs, clubs and live music venues, the government said.

The changes will be fully funded, including through reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops.

Mr Burnham said: 'For too long, governments have stood by while cherished venues have disappeared from our local high streets.

'This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that's what we will do. What we're announcing . . . is just the start as we work to bring back hope across the country.'

Responding to the announcement, the Federation of Small Businesses (FSB) said: 'We are encouraged at the signal from the Prime Minister . . . , instructing his government to plan for a significant increase in Small Business Rate Relief at the heart of the next Budget.'

Internet link: HMRC FSB

More than 110,000 unrepresented taxpayers who must register for Making Tax Digital (MTD) from April 2026 have still not done so, according to the Low Incomes Tax Reform Group (LITRG).

LITRG's estimates are based on official HMRC statistics on the number of unrepresented taxpayers it estimates will be in scope for MTD from April 2026, alongside recent public comments from senior HMRC officials on registration and sign-up rates.

From April 2026, taxpayers with gross income of more than £50,000 from self-employment or rental income in the 2024/25 tax year are mandated to use MTD unless they are exempt.

From April 2027, the £50,000 threshold falls to £30,000 and then to £20,000 from April 2028.

LITRG believes that of the 216,000 unrepresented taxpayers HMRC expect to be in scope for this year, around 111,000 have still to register.

Sharron West, LITRG Technical Officer, said:

'While most of the taxpayers who need to use Making Tax Digital from April 2026 have the services of a professional tax adviser or accountant to help them, there are a significant number who don't, and many of them have still not signed up.

'We are concerned that there are a substantial number of people who should register but don't realise they need to.

'However, the good news is that there's still time for these taxpayers to get ready ahead of the first reporting update due on 7 August 2026.'

Internet link: Chartered Institute of Taxation

Government plans to extend the rules requiring some taxpayers to declare 'uncertain' tax positions risk creating more uncertainty, compliance burdens and tax disputes according to the CIOT.

The uncertain tax treatment regime currently requires large businesses to flag uncertain interpretations of tax law to HMRC upfront if significant amounts of money are at stake.

The government is proposing to turn it into a much wider transparency regime, reaching beyond large businesses into individuals and trusts, expanding to cover additional taxes and potentially introducing a new, much broader trigger for notification.

The CIOT is warning that the proposed third trigger - where there is more than one 'credible' interpretation and HMRC's view is not known - is too subjective to work effectively in practice.

Lauren Fletcher, CIOT Tax Technical Senior Manager, said:

'These proposals would expand the uncertain tax treatment rules to more taxpayers, more taxes and a broader set of uncertainties - a potentially significant compliance expansion. But they are unworkable in their current form and need further development before any legislation is brought forward.

'The government is right to want to reduce the 'legal interpretation' tax gap and give taxpayers more certainty. But these proposals risk doing the opposite regarding certainty. A notification regime should provide clarity, not create a fresh layer of uncertainty around whether a taxpayer is required to notify in the first place.'

Internet link: CIOT

The decision to phase in the mandatory payrolling of benefits in kind is a 'welcome step' to allow employers and payroll software providers more time to prepare for significant changes, says the Association of Taxation Technicians (ATT).

Benefits in kind are non-cash perks such as company cars or private medical insurance. Currently, most employers report these once a year using a Form P11D, with tax collected through adjustments to employees' tax codes. This can lead to inaccuracies and the possibility of unwelcome tax bills after the end of the tax year.

Under payrolling, the value of these benefits is added to employees' pay in real time, so the correct tax is deducted through the payroll each month. Although this improves accuracy and transparency it also requires employers to gather detailed information. They must also ensure their payroll systems can handle the changes.

HMRC had planned to introduce mandatory payrolling for all benefits and more detailed information requirements from April 2027. However, it has now confirmed a phased approach will be taken.

Jon Stride, Chair of the ATT's Technical Steering Group, said:

'This is a sensible and welcome step by HMRC. Moving to real-time taxation of benefits should ultimately improve accuracy for employees, but the original timetable based on full implementation in one go was overly ambitious.

'A phased approach gives employers, software providers and HMRC the time needed to get the systems right and avoid unnecessary disruption.'

Internet link: ATT

More than £11 million in funding has been made available to taxpayers struggling with their tax affairs.

The doubling of funding comes as part of HMRC's Voluntary and Community Sector Grant Funding Scheme. The funds will be available for organisations to help customers with their tax affairs.

From 8 June, organisations can submit bids for the funding, which is available for voluntary and community sector organisations to provide specialist advice and support to HMRC customers who may need extra help with their tax affairs, interacting with its digital services or claiming entitlements.

Dan Tomlinson, Exchequer Secretary to the Treasury, said:

'I'm delighted to build on our commitment to customers who need the most support and make this latest round of funding available for our partners in the voluntary sector who provide invaluable assistance to them.

'This funding means customers, who may be struggling with their tax affairs, are able to get the help they need to make a real difference to their situation.'

Internet link: GOV.UK

Hospitality businesses, teams and organisations are being urged to sign a new petition calling for the government to cut the VAT rate for the sector to 10% by UKHospitality.

The trade group has launched #VATsTheProblem, a sector-wide campaign asking for the government to cut the rate of VAT for hospitality businesses, so it is in line with European levels.

UKHospitality is urging the entire sector to back its call by signing a new petition, with the aim to get a million signatures.

Hospitality groups, including the British Beer and Pub Association, the British Institute of Innkeeping and CODE Hospitality, are also supporting the campaign.

Celebrity chef and business owner Tom Kerridge said:

'Our sector is under huge pressure. We know it. We live and breathe it every day.

'We know that the key to unleashing hospitality's potential to grow and thrive into the future comes through a VAT cut. We're making sure government knows that too.

'This is a nationwide campaign with ambassadors big and small spreading the word to everyone that will listen, all asking for the same thing; a cut to hospitality's VAT to 10%.'