News

Traders are increasingly betting on a significant drop in the pound as concerns mount over the Chancellor Rachel Reeves’s ability to stick to her fiscal targets following a sharp rise in borrowing costs.

According to Bloomberg, many so-called options trades would profit if sterling plunged to $1.12, an 8 per cent fall that would mark a two-year low and surpass the volatility seen during the 2022 mini-Budget crisis.

Sterling lost 1.8 per cent last week, hitting $1.222, amid mounting worries about whether the Chancellor can meet her own debt and borrowing rules. The yield on long-term government bonds soared to its highest point since 1998, leaving the Treasury’s £10 billion fiscal headroom looking precariously thin. Investors fear Reeves may be forced to raise taxes or slash public spending to keep her commitments intact.

Meanwhile, the Bank of England is now widely expected to make only one interest rate cut this year, rather than two, due to persistent inflationary pressures. Jamie Niven, a fund manager at Candriam, said the outlook for sterling was bleak: “On one side, you have very limited pricing in of Bank of England cuts, while the fiscal concerns are also sterling negative.”

Last week, Deutsche Bank weighed in, encouraging investors to sell the pound. Economist Shreyas Gopal warned that “there’s further to go in the recent pound weakness,” echoing the sentiment that higher bond yields and looming fiscal pressures could exert downward pressure on the currency.

The market turmoil has fuelled calls for Rachel Reeves to step down. Stephen Perkins, Managing Director at Yellow Brick Mortgages, accused her of “steering the UK full speed into a dead end,” while Keith Budden, Managing Director at Ensurety, said that “she has generated zero confidence amongst the business community.” Both suggested a change in leadership may be the only way to restore stability and win back the trust of investors.

Kundan Bhaduri, a property developer at The Kushman Group, went further, labelling the current administration a “bumbling Labour circus” and describing Reeves’s economic policies as those “of a toddler with a chainsaw.” Meanwhile, David Belle, Founder and Trader at Fink Money, said her position had become “untenable” in light of “lies of not going through austerity,” inconsistencies in her CV, and a bond market desperate for pro-growth measures.

Gabriel McKeown, Head of Macroeconomics at Sad Rabbit Investments, suggested the government is essentially repeating mistakes made during the mini-Budget fiasco, warning that significant borrowing increases “without clear plans for fiscal sustainability” make the market’s reaction unsurprising. Riz Malik, Independent Financial Adviser at R3 Wealth, remarked that while a resignation would be best for the country, a suitable replacement for Reeves remains in doubt.

The frustration extends beyond the Treasury’s inner workings. Sam Kirk, Managing Director at J-Flex Rubber Products, questioned the Chancellor’s honesty, saying: “The only time ‘Rachel Reeves’ and ‘economical’ should be together is in the phrase ‘Rachel Reeves is economical with the truth.’” Kirk also lamented the broader political environment, suggesting that the available talent pool in the Cabinet and across political parties was worryingly shallow.

As the chorus of criticism grows, the coming weeks may prove pivotal in determining the economic direction and political stability of the UK. With bond yields near multi-decade highs, inflation lingering, and warnings of a looming slowdown, the Treasury must decide whether to overhaul its policies or risk further eroding the country’s credibility on the world stage. Whether such an overhaul includes a new Chancellor remains uncertain, but for now sterling appears caught in a deepening storm of fiscal doubts, market anxiety, and political strife.

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Sterling faces fresh sell-off as soaring borrowing costs could mean Reeves is on borrowed time

British manufacturing giant JCB has backtracked on plans to convert 500 agency staff to permanent positions, citing “challenging market conditions” in the wake of Chancellor Rachel Reeves’s recent tax-raising Budget.

The decision comes as businesses across the country grapple with mounting costs and faltering confidence after employer National Insurance (NI) contributions were raised from 13.8 per cent to 15 per cent.

A JCB spokesman confirmed that the company “fully intends” to offer permanent contracts to a number of agency employees but said these plans would be delayed by at least six months, until trading conditions improve. The recruitment package had previously been used to help secure an inflation-linked pay deal late last year.

The U-turn has sparked an angry response from union leaders. GMB, which represents many of the affected workers, claims that JCB is reneging on the agreement behind the pay settlement. A GMB spokesman criticised the move as “unacceptable,” emphasising that “permanent contracts for the lowest-paid workers are a priority for any trade union.”

JCB is not alone in scaling back staffing in anticipation of a downturn. The construction equipment specialist had already shed 230 agency workers before the Budget, amid fears of a slump in factory orders. New data from S&P Global reinforces this pessimism, with December’s purchasing managers’ index (PMI) for manufacturing falling to 47, its weakest reading in 11 months. According to Rob Dobson, director at S&P Global, the Chancellor’s Budget has dampened confidence and raised costs “at UK factories and their clients alike,” further stifling hiring plans.

The impact of the Chancellor’s £25 billion tax raid appears to be rippling through other industries, too. Genting Casino, operating 32 sites in the UK, has lowered its annual pay offer for staff from 3 per cent to 2 per cent, while Castlewood Hotels, which runs three properties in the South East, said the combined effect of increased NI contributions and a higher minimum wage could cost the firm an additional £200,000 this year.

Castlewood’s owner, Daniel Sangiuseppe, has postponed refurbishments, cut staff hours, and halved planned pay rises across his 140-strong workforce. “The rhetoric was all about growth,” he said. “But this particular policy, as far as we’re concerned, is anti-growth.”

As the Chancellor continues to defend her Budget measures, sentiment among manufacturers and service providers remains fragile. December’s data suggests UK businesses face a protracted period of caution, leading to reduced recruitment, scaled-back investments, and concerns about an impending “industrial recession.”

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JCB postpones 500-job hiring spree as chancellor’s tax hike rattles business confidence

The Department for Business and Trade (DBT) is once again inviting small and medium-sized enterprises (SMEs) from across the country to compete in its Made in the UK, Sold to the World Awards, with entries open until 9 March.

This year’s competition sees the introduction of two new categories and a revamped prize package designed to celebrate homegrown export success and further boost the UK’s global trade ambitions.

Organisers have expanded the awards to include Digital & Technology and Export Services categories, broadening the scope of the programme. These additions join a roster that already covers areas such as Advanced Manufacturing & Construction; Agriculture, Food & Drink; Consultancy & Professional Services; Creative Industries; Education & EdTech; Financial Services & FinTech; Healthcare; Infrastructure and Engineering; Low Carbon Energy; and Retail & Consumer Goods.

Alongside the founding partner, the Chartered Institute of Export & International Trade, Lloyds Bank has joined as a new award partner. In addition to a trophy, certificate, and digital winner’s badge, category winners will receive a year’s free business membership to the Chartered Institute, a working capital masterclass from a Lloyds Bank trade expert, professional photographs of their business, an invitation to the winners’ reception in London, and tailored promotion on DBT channels. Meanwhile, highly commended entrants will also receive a year’s free membership to the Chartered Institute.

Praising the awards, Gareth Thomas, Minister for Services, Small Businesses and Exports, underlined the positive impact that overseas sales can have on job creation and economic growth. “When small businesses export, it opens a wealth of incredible opportunities. These awards are a testament to the innovation that British SMEs display day in, day out,” he said. “As we enter the new year, our Plan for Change is about ensuring businesses across the country can thrive and grow. This will boost jobs and wages and firms that export are at the forefront of that growth. I encourage all those who have started on the exporting ladder to enter and showcase their success.”

With new categories on offer and the promise of extensive support and publicity for winners, the awards provide an enticing platform for Britain’s ambitious SMEs to highlight their international achievements. Further information, including entry guidelines and key dates, can be found at great.gov.uk/campaign-site/made-in-the-uk-awards.

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UK SMEs urged to enter Government Export Awards as new categories are added

Plans by the Bank of England to expand its Leeds presence have hit an early stumbling block, with only 156 current employees registering an interest in transferring from London.

The revelation comes after Governor Andrew Bailey announced last year that the Bank intends to have one in ten of its total workforce — at least 500 people — based in Yorkshire by 2027.

The Bank, which employed just under 5,400 staff in 2023, has said it will maintain overall headcount levels but shift some roles to Leeds to foster a stronger regional presence. Andrew Bailey has championed the move as an opportunity to improve public engagement, strengthen ties with local businesses, and tap into a wider pool of talented workers.

However, freedom of information responses revealed that only 156 employees had joined an internal “expression of interest” mailing list by early December. This shortfall implies that external recruitment may account for more than half of the Bank’s planned Leeds team.

The idea of a “northern hub” was first floated in 2021, and a larger Bank of England office opened in Leeds in October 2023, accommodating up to 70 staff. The long-term goal is for 10 per cent of each directorate—overseen by a deputy governor or the governor—to be represented in Leeds, although some functions may be more suitable for relocation than others.

Leading the expansion effort is Sebastian Walsh, the Bank’s secretary and newly appointed head of Leeds. According to Leeds city council, the city is the UK’s second largest financial centre after London, though Edinburgh also lays claim to that title. Organisations such as Burberry and Channel 4 have recently invested in Leeds, and the Bank hopes to build on the city’s growing appeal.

Yet relocating large numbers of staff remains a formidable challenge. Past moves, such as TalkTalk’s shift to Salford, saw only a small fraction of London-based employees make the transition. The BBC faced similar hurdles in relocating journalists and production teams to its new hub in MediaCityUK. Relocation costs, personal logistics, and a reluctance to leave the capital often deter employees from uprooting.

The Bank of England first opened a branch in Leeds in 1827. While the prospect of a newly enlarged presence in Yorkshire has been welcomed by local leaders, the low uptake from existing staff suggests the Bank will need to redouble its efforts in external recruitment—and perhaps sweeten the deal for anyone willing to make the move north.

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Bank of England’s plans for Leeds hub stall as only 156 staff show relocation interest

Britain’s chemicals industry faces an “extinction event” amid soaring energy prices and rising carbon taxes, Sir Jim Ratcliffe has warned, after announcing the closure of Ineos’s last remaining synthetic ethanol plant in the UK.

The shutdown of the Grangemouth facility, which mainly supplied the healthcare and pharmaceutical sectors, took effect on Wednesday, resulting in a net loss of 80 jobs and threatening over 500 more in the broader supply chain. It also means Britain will now rely entirely on imports for synthetic ethanol, a key ingredient used in everything from medicines and paints to disinfectants and hand sanitiser.

Ratcliffe, 72, accused government energy policy of “de-industrialising” the country and shifting emissions-heavy production overseas. “The UK, and particularly the north, needs high quality manufacturing,” he said. “We are witnessing the extinction of one of our major industries as chemical manufacture has the life squeezed out of it.”

According to Ineos, ten large chemical complexes have closed across the UK in the past five years, including sites in Billingham and Lynemouth. No new plant has been built for a generation, leaving domestic production capacities dwindling. Industry body the Chemical Industries Association said that Britain’s chemical output has dropped nearly 40 per cent since 2021.

Steve Elliott, the association’s chief executive, urged government support to tackle uncompetitive energy prices and carbon costs. “The UK needs to decide if it wants to break or make a key manufacturer,” he said.

The closure of the synthetic ethanol plant is not the only looming blow for the Grangemouth complex. Scotland’s last oil refinery, a joint venture between Ineos and PetroChina, is set to be converted into a fuel-import terminal this spring, resulting in a net loss of around 400 jobs. Unite, the union, called the move “industrial vandalism”.

Ratcliffe, who founded Ineos in 1998, pinned the blame on “huge disadvantage” in UK energy pricing, pointing out that natural gas costs have escalated from 50p to around 120p per therm.

He urged Westminster to produce a coherent energy policy that can supply globally competitive prices for gas and hydrogen, enact trade measures that support UK manufacturing rather than incentivising imports, and reform emissions trading so it stops acting as a “stealth tax” on domestic producers.

A government spokesman called Ineos’s closure announcement “very disappointing” and criticised the lack of a credible industrial strategy for Scotland. Westminster insists it is now developing a new blueprint to support growth across the entire UK, emphasising that strategic, long-term measures must be accompanied by immediate reforms to keep heavy industry viable.

Ineos employees affected by the synthetic ethanol closure are being redeployed elsewhere on site, where the company continues to produce ethylene and propylene. Synthetic ethanol customers, meanwhile, will have to look overseas for supply, including from Ineos’s other facility in Herne, Germany.

Industry leaders fear the continued erosion of the UK’s chemicals sector will have knock-on consequences for the wider economy, which relies on domestic output for pharmaceuticals, cosmetics, construction materials and more. Without urgent government intervention, they say Britain risks losing its footing in a critical global market, potentially dragging down employment and investment for decades to come.

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UK chemicals industry ‘heading for extinction’ warns Jim Ratcliffe

There’s a certain clairvoyance required of a great satirist, an almost supernatural knack for holding up a mirror to society and forcing us to see the grotesque reflection that lurks behind our glossy veneers.

Whilst always being a centrist politically, I have loved the ascorbic, usually left, sometimes far-left that British stand-up comedy brings and have been a huge fan of Ben Elton’s from his first outing in his shiny suit on Friday Night Live. Elton, the sardonic jester of British comedy and a proud Labour man of the Mrs Thatch era, delivered this in spades with Gasping, his debut play from 1990.

At the time, Gasping seemed like a clever, absurdist send-up of 1980s corporate greed, Thatcherite free-market frenzy, and the rise of glossy marketing machineries. But as we sit here in 2025, with the air around us tinged with both pollution and bureaucracy, one has to wonder—was Elton’s play less satire and more prophecy?

For those unfamiliar, Gasping tells the story of a slick ad executive who, in pursuit of the next big thing, helps his company invent and monetise “Perrier for the nostrils”—oxygen in a bottle. What starts as a hilariously absurd concept spirals into chaos, as the commodification of clean air leads to shortages, global inequality, and an all-too-real survival-of-the-richest scenario. Funny? Absolutely. Ridiculously prescient? Even more so.

Taxing the air we breathe? Surely not

Fast-forward to today, and Elton’s dystopian vision doesn’t feel as far-fetched as it once did. Sure, we don’t yet queue at Tesco for bottled oxygen, but it’s not entirely beyond the realm of possibility. Air quality has become a premium commodity in urban centres, with wealthier neighbourhoods often enjoying cleaner skies while poorer areas choke on the detritus of heavy industry. Purifiers, filtration systems, and even air-purifying plants have become middle-class staples—essentially a DIY tax on the air we breathe.

But where Elton really gets spookily close to home is in his critique of big business and governmental overreach. In Gasping, the corporate world exploits something that should be a universal right—clean air—and turns it into a cash cow. It’s hard not to draw parallels with our current predicament, where everything from water to parking to the miles we drive is metred, measured, and taxed. And with a government as hungry for revenue as today’s Labour Party, it’s not entirely inconceivable that oxygen could be next on the list. After all, we’ve already got carbon taxes—how far off is an “air utilisation levy”?

The irony, of course, lies in Elton’s Labour allegiances. Back in the day, he was the poster boy for Thatcher-bashing, a flag-waving advocate for socialist ideals and the redistribution of wealth. The idea that his beloved Labour Party could one day be accused of taxing everything under the sun—well, it would have made the younger Elton choke on his organically sourced lentil soup. Yet here we are, with some of the most inventive revenue-raising schemes coming from the red corner.

A new divide: oxygen as a status symbol

The world Elton imagined in Gasping is one where the “haves” breathe easy while the “have-nots” gasp for survival—a painfully familiar dynamic in today’s world. Clean air is no longer a given; it’s a privilege. In cities like Delhi and Beijing, air pollution is so severe that oxygen bars and personal air-purifying devices are booming industries. And while these innovations are marketed as lifestyle products for the affluent, they highlight a stark truth: the gap between those who can afford to protect themselves and those who cannot is growing ever wider.

The Third World, as Elton dubbed it in his play, is still being plundered, not for oxygen but for resources that keep the wheels of capitalism spinning. Meanwhile, climate change—arguably the ultimate indictment of our collective greed—has made clean air an increasingly scarce commodity. Forests, the lungs of the Earth, are cleared at an alarming rate, often in the name of profit. Elton’s satire wasn’t just about air; it was about the commodification of anything and everything, no matter the consequences.

So, was Ben Elton a satirical Nostradamus? Perhaps. Or perhaps his genius lies in his ability to distil universal truths into biting comedy. The themes he explored in Gasping—greed, inequality, environmental degradation—are as relevant today as they were in 1990. The difference is that we now live in the world he once exaggerated for comedic effect. The joke, it seems, is on us.

And what of Elton’s beloved Labour Party? Could he have foreseen its evolution from the scrappy underdog of the 1980s to the tax-happy establishment of today? One suspects he might have, though he’d have skewered them just as mercilessly as he did the Conservatives. Because, at his core, Elton is a satirist first and foremost, and satire spares no one—not even its own creators.

In the end, Gasping is both a warning and a time capsule, a reminder of where we’ve been and a cautionary tale of where we might be headed. As the world grapples with climate change, resource scarcity, and the ever-present shadow of corporate greed, Elton’s play feels less like a relic of the past and more like a roadmap to an unsettling future. So, if you find yourself reaching for your Dyson air purifier or paying extra for a seat in a “clean air zone,” spare a thought for Ben Elton. He saw it coming, and he made us laugh before we started gasping.

Read more:
Did Ben Elton predict his beloved Labour’s taxing future?

Agreements worth £600 million, potentially adding £1 billion in value to the UK economy, have been secured following Chancellor Rachel Reeves’ trip to Beijing.

Winnie Cao, Head of Blick Rothenberg’s China Desk and China Business Group, described the productive discussions between Reeves and Vice Premier He Lifeng as a positive sign for both Chinese and British businesses. “Another outcome of this visit is the opening up of the legal services market, allowing more UK law firms to operate in China,” Cao said. “This will be welcome, as Chinese companies often need professional guidance in the same time zone, yet local Chinese law firms can lack in-house UK expertise.”

Cao also highlighted a new understanding between the Chinese Institute of Certified Public Accountants (CICPA) and the Institute of Chartered Accountants in England and Wales (ICAEW) to explore “expanding the scope of mutual examination exemptions”. This, she said, could encourage more Chinese accountancy students to earn a UK ICAEW qualification — and vice versa — benefiting firms in both countries. “The UK accountancy sector has struggled for talent in recent years, and having more UK-qualified accountants in China may open up cost-effective outsourcing opportunities,” she noted. “At the same time, Chinese accountants who are UK-qualified will be of great help to Chinese businesses wishing to expand into the UK.”

One particular hurdle for Chinese firms investing abroad is the cultural gap in tax and accounting rules, but Cao believes that if these firms have access to more UK-qualified finance professionals, initial misunderstandings will be bridged more easily.

Although the progress made during Reeves’ China visit marks a step forward, Cao urged the UK government to seize the momentum and negotiate a social security reciprocal agreement. “Similar arrangements exist with South Korea and Japan,” she said. “Such an agreement would reduce both costs and paperwork for expatriates moving between the two countries, encouraging deeper mutual investment.”

Overall, Reeves’ visit appears to have laid the groundwork for renewed bilateral cooperation, with significant opportunities for British professionals in China, Chinese firms in the UK, and potential progress on regulatory reforms that ease cross-border trade and investment.

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Rachel Reeves’ China visit restores crucial links with world’s second-largest economy

Britons and overseas visitors may soon find themselves paying a “hotel tax” on every overnight stay, under Treasury proposals designed to shore up the public purse as borrowing costs continue to climb.

The potential levy, part of “modelling exercises” carried out by officials, mirrors the tourist taxes in countries such as France, where the nightly charge ranges from less than £1 at a campsite to more than £12 in five-star accommodation.

Chancellor Rachel Reeves, who introduced £40 billion in tax increases at last autumn’s Budget, has repeatedly insisted there will be no repeat of those hikes. However, tumbling bond prices and the highest government borrowing rates since 2008 mean she may soon be forced to find new revenue streams. Analysts say that unless taxes rise or spending falls, Reeves risks breaching her self-imposed fiscal rules — a scenario that could further erode market confidence in the UK’s economic stability.

Under the prospective nationwide scheme, both domestic travellers and foreign visitors would pay an added charge on their nightly stay. This comes as several parts of the UK explore local tourism levies. Wales is proposing a nightly fee of £1.25 for visitors, while Edinburgh will introduce a 5 per cent tax on accommodation from July 2026. According to the TaxPayers’ Alliance, rolling out the Welsh model across England would net about £560 million a year. Adopting something closer to the French system, however, could yield more than £1 billion.

Hoteliers warn of detrimental consequences. Sir Rocco Forte, whose eponymous hotel group has a global footprint, argues the measure would be a “pernicious new tax” coming on top of increases in employers’ national insurance, rising air travel levies, and the scrapping of VAT refunds for foreign tourists. He believes it would hit the entire tourism supply chain — from restaurants and museums to taxi drivers and shops — as visitors rein in spending to offset the higher cost of accommodation.

Reeves, currently on a high-profile visit to China aimed at attracting inward investment, has come under fire over the timing of her trip. Gilt yields have soared in recent days as so-called “bond market vigilantes” demand higher returns for holding UK debt, pushing up government borrowing costs. Meanwhile, the pound fell below $1.22, a decline that does make Britain cheaper for overseas travellers but also raises concerns over import-driven inflation.

If borrowing costs remain elevated, the Treasury could look beyond a hotel tax to keep the chancellor’s fiscal pledges intact. More substantial measures might include an increase in corporation tax or cuts to welfare and disability benefits. Observers note that the spring statement, scheduled for 26 March, could become a de facto emergency budget if market conditions fail to improve.

Sir Rocco Forte’s condemnation of the hotel levy reflects mounting exasperation in the tourism sector, which contends that hospitality already shoulders heavy taxes and regulatory costs. He points out that several other countries that impose a tourist tax ring-fence the proceeds to enhance visitor facilities. By contrast, the UK’s plan, he fears, would simply funnel the proceeds into filling “the black hole” in public finances.

Despite the outcry, Treasury insiders remain tight-lipped, calling talk of a new hotel tax “speculation.” A spokesperson has insisted the chancellor will stick to her fiscal rules and continue to pursue spending restraint. Ministers plan to review expenditures in June to “root out waste,” but industry observers argue that a new tourism levy risks undermining one of the UK’s most vibrant sectors.

In the end, whether the chancellor can balance the books without a fresh round of tax hikes will largely depend on market sentiment. As the cost of government debt climbs, so does the political imperative to find revenue sources that avoid repeating the hefty tax rises enacted last autumn. The final decision could hinge on whether an increasingly value-conscious travel market is willing to pay an extra nightly charge for the privilege of visiting Britain’s shores.

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Rachel Reeves weighs a ‘hotel tax’ as treasury battles to fill funding gap

HM Revenue & Customs is ramping up its scrutiny of “side hustle” earnings, requiring online platforms such as eBay, Vinted and Airbnb to submit information on users’ incomes for 2024 by the end of this month.

However, concerns have been raised that the discrepancy between the UK tax year (April to April) and the OECD’s reporting period (January to December) could lead many casual sellers to make mistakes on their tax returns.

The Low Incomes Tax Reforms Group (LITRG) warns that people might unintentionally provide inaccurate figures to HMRC because the data they receive covers the calendar year, not the tax year. For instance, only earnings from January to March 2024 would be relevant for a self-assessment due this month, yet the total figure submitted by the online platforms spans all 12 months of 2024.

“Just one quarter of the data people will receive is pertinent to the current tax return,” says Meredith McCammond, a technical officer at LITRG. “That could lead to confusion, especially for those filing a return for the first time and needing help during HMRC’s busiest period.”

Under the new guidance, any platform user earning over £1,700 or making 30 transactions in a year will have their information passed to HMRC. While this is not a new tax, it may lead to tax being imposed on individuals who previously were unaware they needed to declare online sales. Dawn Register of accountancy firm BDO comments that, despite incomplete data, HMRC will still have enough information to launch an investigation if a seller’s turnover appears high.

“The new rules may well mean there are some nasty surprises for people who are either ignorant of the existing legislation or haven’t declared their earnings,” Register says. At the same time, HMRC could be surprised by how much some casual sellers actually earn online.

Many casual sellers and “declutterers” will be shielded by the UK’s trading allowance, which lets individuals earn up to £1,000 a year from occasional trading without paying tax. A spokesperson for HMRC emphasised that “absolutely nothing has changed” for people selling unwanted personal items. The new focus is on those conducting consistent trading or making gains on sales.

Miruna Constantin of RSM UK recalls that, when the procedures were introduced last year, public worry spiked: “Chaos ensued when people thought HMRC might suddenly tax all the extra cash they made from selling unwanted Christmas gifts. HMRC has since provided detailed guidance.”

Practical steps for sellers

The new data, scheduled to be reported in quarterly blocks, should help sellers match platform statements more closely to their tax obligations. But for a smooth process, experts advise paying close attention to:
• dates: Figure out which quarter applies to your current self-assessment period (January to March 2024 for the 2023-24 tax year).
• allowances: Remember that the first £1,000 of trading income is generally tax-free, and separate capital gains rules may apply if you are making a profit on the sale of valuable items.
• when in doubt, ask: If you’re unsure, seeking advice from HMRC or a tax professional can help avoid costly errors or investigations.

With this expanded reporting, the government hopes to reduce hidden or accidental non-compliance. However, until sellers feel confident about how and when to apply the numbers from eBay, Vinted, and other platforms, the risk of “nasty surprises” remains.

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New tax checks on side hustles like eBay and Vinted risk confusion over different reporting periods

Britain has “no choice at all” but to engage with China, Rachel Reeves has argued, as she seeks to shore up economic growth against a backdrop of soaring borrowing costs and uneasy financial markets.

The chancellor arrived in Beijing to finalise new trade and investment commitments worth £600 million over five years, the first trip by a UK chancellor to China in over half a decade.

Her visit comes as the UK grapples with stubbornly high inflation and renewed doubts over how quickly the Bank of England can cut interest rates. The yield on 30-year government debt remains at a 27-year high, while the pound has lost ground against the dollar — both unwelcome echoes of last year’s market turmoil.

Reeves reaffirmed her “non-negotiable” fiscal rules, emphasising that economic stability is vital to restoring confidence. The Treasury’s upcoming spending review is already expected to demand efficiency savings of at least 5 per cent across Whitehall, and the spike in debt-servicing costs could see that figure rise further. Reeves has vowed not to repeat the tax hikes of last autumn, though her options have narrowed as inflationary pressures remain persistent.

Paul Johnson, director of the Institute for Fiscal Studies, warned that any breach of the chancellor’s self-imposed borrowing limits would rattle the markets and send yields higher still. That scenario looms larger with the cost of servicing the government’s debt surging and subdued economic growth undermining tax receipts.

To help counter these pressures, the chancellor aims to increase trade and inward investment ties with China. She argues that the UK’s former, more isolationist stance put the country at a disadvantage when France and Germany were expanding their own commercial relationships with Beijing. China is the world’s second-largest economy and the UK’s fourth-largest trading partner, supporting nearly half a million British jobs through exports.

Agreements reached with Vice Premier He Lifeng include further cooperation in areas such as financial services, cross-border investment, climate initiatives, and agriculture. “Choosing not to engage with China is therefore no choice at all,” Reeves said, insisting that relations should remain “respectful and consistent” despite sharp ideological differences.

Investors have become warier of UK assets in recent weeks, spooked by inflation lingering stubbornly above the Bank of England’s 2 per cent target. Markets had anticipated two quarter-point rate cuts this year, trimming the Bank’s key interest rate from 4.75 per cent down to 4.25 per cent. Analysts now question whether the second cut will materialise, a setback for the 1.8 million households on fixed-rate mortgages due to expire in 2025.

That doubt spells trouble for borrowers hoping two-year fixed mortgage rates would drop beneath 4 per cent. Economists at Pantheon Macroeconomics predict that high inflation could persist, lifting price expectations and dampening the Bank’s appetite for monetary easing. But others, including George Buckley of Nomura, believe rising gilt yields themselves will act as a brake on inflation, allowing more cuts over the coming year.

Beyond the UK, uncertainty hangs over the global economy as Donald Trump’s White House transition adds volatility to currency markets. The dollar has benefited from his pledges on corporate tax reform and deregulation, reinforcing a strong greenback at the pound’s expense. Mortgage brokers say any softening in expectations for British rate cuts will prolong elevated mortgage costs, weighing on the housing market and consumer spending.

For the chancellor, the challenge now is to leverage new trade deals abroad without jeopardising her hard line on fiscal discipline at home. With the Treasury acknowledging that further public spending cuts may be inevitable if debt servicing costs keep climbing, Reeves’s mission in Beijing underlines her broader economic strategy: to stabilise markets, foster growth, and forge alliances — even in politically delicate terrain — to keep Britain on a sustainable path.

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Chancellor heads to China in search of growth amid surging borrowing costs