General

The government has announced a review into access to face-to-face banking services as concerns continue to grow over the impact of bank branch closures on local communities, older customers and small businesses.

Over recent years, many high street bank branches have closed as more customers move towards online and mobile banking. While digital banking has become increasingly popular, there remains significant concern that some individuals and businesses still rely heavily on in-person banking facilities for cash handling, account support and day-to-day financial transactions.

The review will examine whether existing arrangements continue to provide adequate access to banking services across the UK, particularly in rural areas and smaller towns where branch closures can leave customers with limited alternatives. It will also consider how shared banking hubs and other community banking solutions are performing and whether additional measures may be needed.

Small businesses are likely to take a close interest in the review, especially firms that regularly deal with cash or require local banking support. For many business owners, the loss of nearby branches can increase administration time and create additional security and travel concerns when paying in cash or obtaining change.

Consumer groups have also highlighted the challenges faced by elderly and vulnerable customers who may be less comfortable using digital banking services or who value personal contact when dealing with financial matters.

The government has stated that maintaining appropriate access to banking services remains important for consumers, businesses and local economies, and the findings of the review may help shape future banking access policies across the UK.

The Chancellor of the Exchequer, Rachel Reeves updated Parliament on 21 May 2026 on the Government’s economic response to the war in Iran and the wider measures being taken to support households and businesses with rising cost pressures. One of the measures announced was an increase in approved mileage rates for those using their own vehicles for work.

The approved mileage rates for cars and vans will increase from 45p per mile to 55p per mile. This increase has been backdated to the start of the tax year, 6 April 2026. This rate applies only to the first 10,000 business miles in each tax year, with the approved mileage rate remaining at 25p per mile for any additional mileage over the threshold. The change is intended to support employees and the self-employed who rely on travel for work. It has been confirmed that all other mileage rates remain unchanged for the time being although this may be reviewed again at the next Budget.

If an employer reimburses mileage at less than the approved rates, the employee may claim the shortfall through Mileage Allowance Relief (MAR). This ensures tax relief is given on the difference. For example, if an employer reimburses 35p per mile, tax relief may be claimed on the remaining 20p per mile for qualifying business journeys (excluding ordinary commuting). If no mileage allowance is paid then tax relief can usually be claimed on the full 55p per mile rate (up to 10,000 business miles).

The approved mileage rates for motorcycle journeys remain at 24p per mile and for bicycle journeys at 20p per mile. Where employees carry colleagues on business journeys, employers may also pay an additional 5p per passenger per mile. There are no overriding distance limits for these payments.

The government has announced a package of measures intended to help motorists and businesses manage rising fuel costs following disruption linked to the conflict in Iran.

As part of the package, the temporary 5p fuel duty cut has been extended until the end of 2026. The government estimates that the extension will save the average driver around £120 since 2025 and will mean that fuel duty on petrol and diesel remains at its lowest level for more than 16 years.

Additional support has also been announced for the haulage sector. Hauliers will benefit from a 12-month road tax holiday, with qualifying vehicles paying just £1 on renewal. The government stated that this could save up to £600 for a typical heavy goods lorry and as much as £912 for largest vehicles on our roads.

The measures also see a reduction of over one third in the fuel duty charged on red diesel until the end of the year. Farmers, rail freight operators and other qualifying users are expected to benefit from the reduced rate, which the government says is now at its lowest level for more than 20 years.

Marking the announcement, the Prime Minister Sir Keir Starmer said:

‘I know many are feeling the pressure of energy and fuel costs, and are worried about how the conflict in Iran will affect their finances. Because when global events drive up prices, it’s working people who feel it first. 

That’s why this government is stepping in to keep fuel costs down for millions of drivers and putting money back in the pockets of working people.’

The Government has announced a new package of measures designed to help households manage rising living costs during the summer months, as concerns continue over inflation, fuel prices and household spending pressures.

The package, described as the “Great British Summer Savings Scheme”, includes free bus travel for children aged 5 to 15 on participating local bus services throughout August in England. The Government has stated that the measure is intended to support families during the school holidays and help reduce travel costs at a time when many household budgets remain under pressure.

Alongside the transport support, the Government has also announced plans to reduce tariffs on a range of imported food products. While the full list is still to be confirmed, reports suggest that items such as biscuits, chocolate, dried fruit and nuts may be included. Ministers estimate that the tariff reductions could save consumers more than £150 million annually.

The measures come against a backdrop of continued economic uncertainty and concerns that rising global tensions could increase inflationary pressure later this year, particularly through higher energy and fuel costs.

For small businesses, the impact may vary. Hospitality, tourism and leisure businesses could benefit from increased summer spending and higher visitor numbers, while retailers may see some improvement in consumer confidence if household costs ease temporarily.

Business owners may nevertheless wish to continue monitoring:

• cash flow pressures,
• pricing strategies,
• staffing costs,
• and customer spending patterns.

While the latest measures may provide short-term support, many businesses are still operating in a challenging economic environment.

The freezing of tax thresholds can result in a phenomenon commonly referred to as 'fiscal drag'. This occurs when tax allowances and rate bands remain unchanged while wages and inflation increase. As earnings rise, more taxpayers are ‘dragged’ into paying tax or moving to higher tax bands, despite there being no increase in the actual tax rates.

Fiscal drag is sometimes described as a “stealth tax” because government tax revenues increase without the need for headline rate rises. Its impact is particularly noticeable during periods of high inflation and wage growth, as pay increases intended to maintain living standards can instead lead to higher effective tax burdens.

The effect depends on several factors, including inflation, earnings growth and government policy regarding tax thresholds and allowances. Normally, thresholds may be increased annually in line with inflation, a process usually known as uprating. However, governments may decide to freeze thresholds for fiscal reasons.

In recent years we have seen a number of personal tax thresholds frozen for extended periods. As a result, increasing numbers of taxpayers are paying tax at higher rates, while some individuals who previously paid no Income Tax have become taxpayers for the first time. The Office for Budget Responsibility (OBR) estimates that the continued freeze in Income Tax thresholds until 2030-31 will raise more than £55 billion annually by 2030-31.

Fiscal drag can therefore have a significant impact on disposable income, particularly where salary increases are modest in real terms but still sufficient to move taxpayers into higher bands or reduce entitlement to certain allowances and benefits.

Returning to the UK after a period abroad can feel straightforward on the surface, but there are a number of practical and personal matters that need careful thought to ensure a smooth transition.

Housing and accommodation

One of the first issues to address is where you will live. If you have sold or rented out your previous home, you may need to arrange temporary accommodation while securing a long term property. Mortgage availability can depend on your employment status and recent credit history, which may be limited if you have been overseas.

Employment and income stability

If you are returning without a confirmed role, it is important to consider how quickly you can re-enter the UK job market. Recruitment processes, recognition of overseas experience, and changes in your industry can all affect how easily you secure employment. For business owners, re-establishing trading activity or building a new client base may take time.

Healthcare access

Access to healthcare is another key consideration. While the UK offers public healthcare through the NHS, you may need to register with a GP and there can be waiting times before routine services are available. If you have ongoing medical needs, planning continuity of care is essential.

Education and schooling

For families, schooling can be a major factor. Availability of school places varies by area, and application deadlines may have passed while you were abroad. It is often worth researching options well in advance and considering temporary arrangements if necessary.

Financial and administrative matters

You may also need to re-establish UK banking, update identification documents, and ensure your driving licence and insurance arrangements are valid. Credit history may need to be rebuilt, which can affect access to finance in the short term.

A planned approach to these practical issues can make the return to the UK far less disruptive and help you settle back into day to day life more quickly.

Landlords must now comply with an important new legal requirement introduced under the Renters’ Rights Act, which brings significant reform to the private rented sector in England. The government has published an official information sheet that explains the changes and sets out the new rights available to tenants starting from 1 May 2026.

Under the legislation, landlords and letting agents must provide tenants with a copy of the government’s Renters’ Rights Act Information Sheet by 31 May 2026. The document explains how the law affects tenancy arrangements and highlights new protections designed to provide greater security and transparency for renters. The information may be provided either in paper form or electronically, for example as a PDF attachment.

The Renters’ Rights Act represents one of the most significant changes to private renting in many years. A key feature of the reforms is the removal of Section 21 “no fault” evictions, alongside wider measures intended to improve stability and fairness in the rental market. Tenants will benefit from clearer information about their rights, helping them make better informed decisions about their housing arrangements.

For many existing tenancies that began before 1 May 2026, landlords will not need to issue a new agreement immediately. Instead, the main requirement is to ensure tenants receive the official information sheet explaining how the changes apply to their current tenancy. For new tenancies created after this date, agreements must reflect the updated legal framework.

Failure to provide the required information may result in financial penalties, emphasising the importance of reviewing procedures promptly. Landlords should therefore ensure that tenancy documentation, communication processes and record keeping systems are updated ahead of the 31 May 2026 deadline. Early preparation will help avoid penalties and ensure compliance with the new legal framework.

Pensioners are being urged to stay vigilant for any Winter Fuel Payment scams. HMRC is starting to recover Winter Fuel Payments issued for winter 2025 from those earning over £35,000 a year. While the process will affect nearly two million people, most will see the repayment handled automatically through adjustments to their PAYE tax code from April 2026, meaning there is no need to contact HMRC directly.

However, the scale of the recovery operation has created an opportunity for scammers. Over the past year, HMRC recorded more than 25,000 scam reports linked to Winter Fuel Payments. Officials are warning that fraudsters may now exploit confusion around the repayment process. Fake texts, emails, and phone calls are expected to increase, often impersonating HMRC and individuals may feel pressured to hand over personal or financial details.

For those submitting self-assessment tax returns online, the payment should appear automatically in their 2025–2026 return which is due to be submitted by the 31 January 2027. Taxpayers are also advised to check carefully and add the payment manually if they are liable. Paper filers will need to include it themselves.

HMRC stresses that it will never request repayment or bank details via text or email. As HMRC’s Chief Customer Officer, said:

‘Criminals are great pretenders and often use fake letters, emails, calls and texts to impersonate HMRC and trick people into giving them money.

I’d encourage anyone who’s unsure to use our online tool at GOV.UK to check whether and how their payment will be recovered – there’s no need to call us.’

Energy costs remain a significant pressure on household budgets, and reducing consumption continues to be one of the most reliable ways to control expenditure. Fortunately, many practical steps can lower usage without reducing comfort. A structured approach often produces the best results, starting with quick wins and then considering longer term improvements.

Heating is usually the largest component of domestic energy use, often accounting for more than half of total consumption. Ensuring that boilers are serviced regularly helps maintain efficiency and can prevent higher fuel usage caused by poorly operating equipment. Reducing thermostat settings by just one degree can cut heating bills noticeably over a full year. Installing a programmable thermostat allows heating to operate only when needed, avoiding unnecessary energy use during the night or when the home is unoccupied.

Improving insulation is one of the most effective long term strategies. Loft insulation reduces heat loss through the roof, while cavity wall insulation helps retain warmth inside the property. Draught proofing around doors and windows is inexpensive and can produce immediate benefits. Even simple measures such as closing curtains at dusk help retain heat during colder months.

Electricity consumption can also be reduced through small behavioural changes. Switching off appliances rather than leaving them on standby can reduce wasted electricity. Many modern devices continue to consume power even when not in active use. Using energy efficient LED lighting instead of traditional bulbs reduces electricity consumption significantly and LED bulbs also last much longer, reducing replacement costs.

Households should also consider how hot water is used. Lowering the temperature setting on a boiler or hot water cylinder can reduce energy use without affecting comfort. Installing water efficient shower heads and avoiding unnecessarily long showers can also contribute to meaningful savings over time. Washing clothes at lower temperatures and ensuring washing machines are fully loaded before use can further reduce electricity and water usage.

For households able to consider capital investment, energy efficient appliances, improved glazing, solar panels or battery storage may offer longer term savings. While these measures involve upfront cost, they can reduce ongoing energy expenditure and may increase property value.

Taking a planned approach to reducing energy consumption can produce steady financial savings and may also reduce exposure to future increases in fuel prices. Even modest adjustments, when combined, can produce noticeable reductions in household energy costs over the course of a year.

The government has announced new support measures to allow affordable debt repayment for government debt. The new measures set out a clearer and more practical approach to helping individuals and businesses manage what they owe. Announced during Debt Awareness Week 2026, the plans aim to ensure repayments are realistic, tailored and, crucially, affordable.

The 2026–2030 Government Debt Management Strategy sets out plans for the better use of data and earlier engagement. The idea is to support a debt strategy to help people who fall behind on payments of government debt, ensuring repayment plans reflect individual circumstances and remain genuinely affordable. This should mean fewer people falling into unmanageable debt and more consistent treatment across government departments.

The strategy focuses on three key areas:

1. Preventing avoidable debt through early contact.
2. Resolving existing debt fairly with affordable payment plans.
3. Improving skills and technology to handle cases more effectively.

Government debt arises from a wide range of sources, including unpaid taxes, benefit overpayments, fines and loans.

Importantly, while there is a stronger emphasis on support and flexibility, the government is maintaining a firm stance on fraud and deliberate non-payment. In short, the message is that those in genuine difficulty will be helped, but those who can pay and choose not to will face targeted enforcement.