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In a setback for Prime Minister Sir Keir Starmer, one of Britain’s biggest supermarkets has publicly thrown its support behind farmers opposed to the Government’s planned inheritance tax (IHT) reforms.
Sophie Throup, head of agriculture at Morrisons, posted a video message on X (formerly Twitter) declaring the retailer’s solidarity with farming communities, who are preparing to protest nationwide on Friday over what they call a “devastating” tax raid on family farms.
The new levy, which comes into force in April 2026, will impose a 20 per cent inheritance tax on farming estates valued over £1 million. Although this is half the standard 40 per cent IHT rate, the move has sparked fears that smaller, family-run farms could be forced to sell off land or face crippling financial burdens. Under current rules, individuals can transfer their estates tax-free if they live for another seven years, but the new measure would significantly tighten reliefs for agricultural property.
Ms Throup said Morrisons had raised “concerns at the highest level of government” since the policy was announced last autumn, telling farmers she “understands your anger and frustrations” and inviting them to contact her directly. While many welcomed the supermarket’s intervention, others questioned whether it was more of a public relations gesture than a genuine willingness to fight on farmers’ behalf.
Some farmers questioned the supermarket’s committment to their cause, suggesting it might be a PR opportunity Credit: Jamie Lorriman
Mo Metcalf-Fisher, external affairs director at the Countryside Alliance, hailed the supermarket’s intervention as a “major development” in attempts to convince both Sir Keir Starmer and Chancellor Rachel Reeves to reconsider the proposal. Some farmers remain sceptical, however. Clive Bailye, founder of online platform The Farming Forum, pointed out that supermarkets have traditionally been tough negotiators on prices and questioned their real motives.
The Government insists it has no plans to back down. A spokesperson said that under its “fair and balanced” reforms, farmers still benefit from a reduced IHT rate of 20 per cent, payable interest-free over a decade, while pointing to a £5 billion investment in agriculture over two years. Despite these assurances, tensions remain high, with protests scheduled and the National Farmers’ Union confirming it has lobbied retailers to push for a more favourable outcome. Whether Morrisons’ show of support translates into actual policy change remains to be seen.
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Supermarket giant Morrisons backs farmers as inheritance tax row lands blow to Starmer

Concerns are escalating over the future of Northern Ireland’s largest private employer, with 2,700 jobs at risk at Spirit Aerosystems’ Belfast factory.
The site’s predicament stems from complications in a takeover deal involving Boeing, which agreed to acquire Spirit, and Airbus, which has said it will only purchase the portion of the plant manufacturing A220 aircraft wings.
Spirit, a key supplier to the global aerospace sector, had hoped to sell the remainder of its Belfast operations—spanning six locations including West Belfast—to a new buyer. However, a failure to secure any firm commitments has intensified fears among workers and union representatives. An update just before Christmas offered little clarity, leaving the workforce braced for potential fallout as Boeing’s deal to buy Spirit is set to conclude by mid-year.
Despite Airbus’s chief commercial officer, Christian Scherer, confirming interest in Spirit’s separate site in Prestwick, Scotland, there has been no concrete update on Belfast. George Brash, from the Unite union, warns that the factory could be “collateral damage” if no buyer is found in time. He is urging Airbus—which already runs substantial facilities in France and Germany—to consider taking control of the entire Belfast plant, which employs nearly 3,800 people in total.
The origins of the factory date back to 1936, when it was built by Short Brothers to produce military aircraft during the Second World War. More recently, its capabilities have ranged from crafting Rolls-Royce engine casings to components for Bombardier business jets. However, part of Spirit’s troubles followed an incident in Malaysia, where a faulty door plug on a 737 Max was traced back to a Spirit-owned facility, prompting Boeing to initiate the takeover process.
Union officials fear that if Airbus cherry-picks the A220 wing operations alone, the rest of the complex could be discarded, bringing a devastating blow to Northern Ireland’s aerospace sector. In response, Spirit maintains that it is actively searching for a new investor or owner who can nurture the Belfast business and protect its long-term viability.
While Airbus expresses optimism that a resolution for Prestwick may be near, it remains silent on any parallel rescue plan for Belfast. As the summer deadline looms, tension continues to build among Spirit’s workforce, who feel they are left in limbo and are demanding answers—along with more direct support from political leaders—for the safeguarding of thousands of skilled manufacturing roles in the region.
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Uncertain future for over 2,700 Belfast aerospace jobs as takeover stalls

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

Sara Davies, the Dragons’ Den entrepreneur, is set to regain control of Crafter’s Companion, the craft supply business she founded, through a fast-tracked pre-pack insolvency deal.
The company, which gained international acclaim for its paper craft, art, and sewing products, filed a notice of intention to appoint administrators at the High Court following a fall in sales, mounting debts, and management missteps in its US operations.
Under the proposed restructuring, Davies, 40, will “significantly” increase her shareholding and return to the helm as chief executive, safeguarding about 100 jobs. Exact financial terms remain undisclosed, but her new capital injection is expected to underpin efforts to refocus on specialist paper craft, a niche which first propelled her start-up from a university bedroom in 2006 into a multimillion-pound success story.
Crafter’s Companion had thrived during lockdown, only to face a sharp reversal as inflationary pressures, higher raw material costs, and challenging retail conditions took their toll. A downturn in American sales, including the collapse of a major TV shopping partner, exacerbated losses. Last year, revenues dropped by more than a fifth to £29.9 million, deepening annual losses to £5.1 million.
Despite fresh equity from Growth Partner and new bank facilities with Santander and HSBC last year, the business struggled to remain profitable on a monthly basis. Growth Partner, set up by HomeServe founder Richard Harpin, had been the majority shareholder. Its recent decision to file the notice of intention to appoint administrators paves the way for Davies to buy back key parts of the company’s assets as part of the pre-pack arrangement.
Proponents of pre-pack insolvencies argue that they allow viable businesses to emerge swiftly and preserve employment, while critics contend they can undermine unsecured creditors and write off debt. Davies acknowledged the controversy but insisted it was necessary to return the company to profitability and protect jobs.
The deal is expected to be approved in court this week, after which Davies will focus on “branding and core product strategy”, aiming to recapture the paper craft market where her company first found success. She hopes the streamlined Crafter’s Companion can recover its former momentum and avoid additional layoffs by shedding excessive debt and honing its product range.
Davies, who became a millionaire within a year of graduating from the University of York, stepped back from daily operations over a year ago but retained a minority stake. Best known for her role on BBC’s Dragons’ Den since 2019—when she became the show’s youngest-ever panellist—she has dabbled in presenting, philanthropy, and even Strictly Come Dancing. Now, returning to Crafter’s Companion, she intends to harness her entrepreneurial credentials to restore the business to health and unlock new growth opportunities.
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Dragons’ Den star Sara Davies retakes Crafter’s Companion reins amid pre-pack rescue

Food price inflation is expected to climb above 4 per cent this year, the British Retail Consortium (BRC) has warned, in a sharp reversal of the recent trend of slowing shop prices.
According to the lobby group’s forecasts, prices at the supermarket tills will surge by an average of 4.2 per cent in the second half of the year.
Helen Dickinson, chief executive of the BRC, attributed the looming price increases to rising employer national insurance contributions, higher national living wage rates, and fresh packaging levies, all of which will leave little scope for retailers to absorb the additional burden. “There is little hope of prices going anywhere but up,” she said, urging the government to ensure that its planned shake-up of business rates does not inflict further costs on shops already under pressure.
The BRC’s alarm comes despite evidence that overall shop prices fell by 1 per cent last month, a faster decline than the 0.6 per cent recorded in November. Non-food items dropped by 2.4 per cent year on year, although the later timing of Black Friday in 2024 compared with the previous year may have distorted the figures by boosting discounting activity.
Dickinson noted that while food inflation appeared to have bottomed out at 1.8 per cent, it is now poised to climb again: “With many price pressures on the horizon, shop price deflation is likely to become a thing of the past.”
The warning coincides with separate analysis from City investment firm Shore Capital, which suggested that government policy will be the main driver of grocery inflation this year, rather than commodity prices or exchange rates. The company pointed to the employer national insurance increase, rising to 15 per cent from 13.8 per cent in April, as a significant blow to supermarkets and major retailers. Tesco, for instance, is forecast to face an extra £250 million in costs.
Between 2022 and 2023, rising food and energy bills sent the UK’s overall inflation rate soaring; food inflation, in particular, peaked at 19.3 per cent in March 2023. A subsequent slowdown in both food and energy costs helped to bring consumer price inflation back into single digits, though it nudged up to 2.6 per cent in November from 2.3 per cent the previous month.
Shore Capital cautioned that any renewed surge in food inflation could undermine the Bank of England’s current trajectory of reducing interest rates, at present standing at 4.75 per cent. Investors had anticipated two or three rate cuts this year, but that prospect could come under threat if supermarket prices start moving significantly higher again.
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Food inflation poised to jump above 4% as levies and wage rises weigh on retailers

Emma Watson’s premium gin venture Renais has raised nearly £5 million to speed up its global expansion, building on its reputation for sustainable production and strong international demand.
Co-founded by the Harry Potter star and her brother, Alex Watson, the Dorset-distilled gin uses grapes sourced from the Burgundy region, including a small proportion from the family’s own vineyard in Chablis.
Despite a backdrop of economic and political uncertainty — with Donald Trump’s inauguration and proposed US tariffs on British imports — Alex Watson remains optimistic about Renais’s prospects in the American market. He plans to use the fresh capital injection to “crack a bit more deeply” into the US, where Renais launched last year.
Closer to home, the brand’s expansion into Europe continues apace, with plans to debut in physical stores across Spain and France by the end of the year. Currently available in 11 countries, Renais has distribution agreements in 22 markets and is looking to add Dubai and Canada to its roster over the coming months.
Funding has come courtesy of InvestBev, a US-based private equity firm specialising in drinks, and Jean-Sébastien Robicquet, the founder of French spirits group Maison Villevert. Renais has also strengthened its leadership with the appointment of Jimmy Weir, former group chief financial officer of Lathwaites, to its board.
Although both Watson siblings co-founded the business in 2023, Alex serves as chief executive while Emma, 34, holds the position of “creative director”. Best known for her role as Hermione Granger in the Harry Potter films, she oversees the brand’s creative vision, including special editions such as limited-edition bottle sleeves, while her brother brings industry expertise from his time at Diageo.
In a bid to position itself as a forward-thinking, eco-conscious spirits producer, Renais incorporates grape skins leftover from the wine-making process into its distillation, uses biodegradable packaging made from mushroom-based materials and operates solar-powered distilleries. These efforts, combined with its premium positioning, come at a cost: Renais retails at £48 a bottle.
Alex Watson remains confident that discerning customers will be willing to pay a premium for a sustainable tipple. “Consumers are happy to pay a little bit more to know that something is produced responsibly and sustainably,” he said.
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Emma Watson’s gin brand nets £5m as Renais plots global expansion