UK-India trade deal cuts tariffs
Britain and India have signed a major trade deal expected to boost the UK economy by £4.8bn a year by 2040. Finalised after over three years of talks, the agreement cuts tariffs on 90% of UK goods exported to India, saving exporters £400m annually.
Tariffs on UK whisky and gin will drop from 150% to 75%, and to 40% by year 10. Car tariffs will fall from 110% to 10%, though quotas apply. The UK will cut tariffs on Indian clothing, footwear and food, potentially lowering prices for UK consumers.
The deal also includes a reciprocal exemption from national insurance for workers seconded between the two countries for up to three years. Despite some UK opposition, India sees this as a major win.
HMRC ends phone support for UTR numbers
From 6 May 2025, HMRC will no longer provide UTR numbers over the phone. Taxpayers must use the HMRC app or personal tax account to access them. Postal confirmation will be available for those unable to go online, but may take longer. Agents will be directed to online tools. Delays are possible, so plan ahead.
Bank cuts interest rate to 4.25%
The Bank of England has cut the base rate to 4.25% to support the economy amid slow growth. It forecasts a 0.3% slowdown over three years and inflation peaking at 3.5% this autumn, returning to target in 2027. The Bank also warned that the Chancellor’s £25bn rise in employer NI could impact wages and jobs.
Unemployment rises to 4.5%
UK unemployment hit 4.5% in Q1 2025 – the highest since 2021. Job vacancies fell 5.3%, with the construction sector hit hardest. Pay growth slowed to 5.6%, and payroll numbers dropped by 47,000. Economic inactivity rose to 21.4%. The ONS is reviewing data reliability amid concerns over survey quality.
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