The UK and Switzerland have concluded a landmark services-focused trade agreement covering professional mobility, digital trade, investment and public procurement. The government estimates it could eventually increase British services exports by £5.2 billion a year, although the deal must still be signed and ratified.
UK businesses are freezing permanent recruitment as weak demand, rising energy costs and uncertainty surrounding the Iran conflict push confidence and business output indicators to their lowest levels in years.
The UK economy is expected to have flatlined or contracted again in May as higher energy costs and weak service-sector activity weigh on growth. Stronger retail sales and positive three-month figures, however, suggest a fragile slowdown rather than a clear economic downturn.
Rising oil prices, a new UK-Switzerland trade agreement, Morrisons property talks and stronger PageGroup results lead today’s UK business news, as companies balance new opportunities against persistent economic uncertainty.
City traders have reportedly built short positions of about £7 billion against sterling as markets assess the prospect of an Andy Burnham premiership. The move reflects concern over Britain’s fiscal outlook, borrowing costs and uncertainty around future tax and spending plans. But the reaction is not a simple verdict on Burnham: the pound has also recovered when he has committed to existing fiscal rules, showing that markets are watching for credible detail rather than rejecting political change outright.
A new debate over ISA “loopholes” has highlighted the complexity of the Government’s planned 22% charge on interest from cash held inside stocks and shares ISAs. The reforms are intended to stop savers bypassing the lower £12,000 cash ISA limit for under-65s from April 2027, but questions over money market funds show how quickly a once-simple savings product can become more technical.
Andy Haldane’s proposal to make pension tax relief conditional on investing in UK businesses has reopened the debate over whether retirement savings should be used more actively to support national growth. Supporters argue that public tax relief should help fund British companies and infrastructure, while critics warn that pensions must remain focused on saver outcomes, diversification and long-term retirement security.
The Crown Estate has reported more than £1 billion of operating profit for the third year running, largely supported by offshore wind leasing income. The results show the growing commercial value of Britain’s seabed, but also suggest the peak of the windfall may be passing as projects move from option agreements into construction and future leasing rounds face tougher market conditions.
New ISA rules from April 2027 will introduce a 22% charge on interest earned from cash held inside stocks and shares ISAs, alongside a lower £12,000 cash ISA limit for under-65s. The Government says the reforms are designed to encourage more long-term investment, but consumer campaigners and investment platforms warn that the changes could make ISAs more complex and frustrate cautious savers.
A decade after the Brexit vote, the City of London has avoided the sharp decline many predicted. London remains one of the world’s leading financial centres, supported by insurance, fintech, foreign exchange and professional services. However, the post-Brexit City has also changed, with some EU-facing activity shifting to rival European hubs and continuing questions around listings, regulation and capital markets.
