In Focus
In 2024 the House of Lords Economic Affairs Committee conducted an inquiry into the sustainability of the UK’s national debt, following a sharp rise in public sector indebtedness in recent years. This briefing provides a summary of the committee’s findings and the government’s response, ahead of a debate in the House of Lords on 25 April 2025.
In Focus
The UK’s target of achieving net zero by 2050 was set under then prime minister Theresa May in 2019. To date, there has been political consensus on the target between Conservative and Labour governments. In March 2025, the Leader of the Conservative Party Kemi Badenoch announced that her party no longer supported the target, in part because she did not believe it was affordable. This briefing examines the costs associated with achieving net zero by 2050 and how progress to the target has been legislated for under the Climate Change Act 2008.
Research Briefing
The government introduced the Finance Bill in the House of Lords on 4 March 2025. The House is scheduled to debate the bill at second reading and all remaining stages on 19 March 2025.
In Focus
Over the last three decades, the number of bank branches in the UK has declined due to advances in technology and changing customer habits. Stakeholders have argued that these closures have negatively affected rural communities. In recent years, successive governments and the Financial Conduct Authority have taken action aimed at ensuring sufficient access to banking services, including for rural communities. This briefing provides an overview of these measures, as well as information on the number of bank closures and their impact on rural communities.
In Focus
The government has identified the creative industries as one of eight “growth driving” sectors it will prioritise in its industrial strategy. The strategy is due to be published later this year, along with a creative industries sector plan. The creative industries have called on barriers to growth, such as skills gaps and access to funding, to be addressed in the sector plan.
In Focus
Individual consumers investing in the stock market, known as ‘retail’ investment, can have benefits for individuals and the economy, though it also brings risks. The Financial Conduct Authority estimates that a significant number of people in the UK have cash savings that are depreciating in value and would produce higher returns if invested. Some commentators and thinktanks have argued the government should pursue policies to encourage greater retail investment in the stock market.
In Focus
Multinational corporations may use artificial intragroup transfers and other strategies to lower their exposure to corporation tax. Following high profile examples of aggressive tax avoidance, OECD countries including the UK agreed a number of measures to reduce so-called ‘profit shifting’ and increase tax revenues globally. This included a global minimum tax for large corporations. US President Donald Trump has since signalled the US no longer agrees with the latest OECD tax agreement.
Research Briefing
This government bill would enable changes to the business rates regime. It would allow the introduction of additional business rate multipliers to increase business rates for larger properties and reduce business rates for retail, hospitality and leisure properties, and the removal of charitable rate relief from some private schools that are charities.
In Focus
Economic growth is a consequence of increases in the stocks of labour and capital and the efficiency with which factors of production are used. Economists disagree on the potential to improve conditions for growth. Optimists point to the scope for policy changes in areas such as housing and energy to lift economic growth. Pessimists argue that structural headwinds mean the economy’s weak performance of the last decade-and-a-half will persist. Beyond policy, cultural factors may also play an important role in determining the economy’s growth prospects.
In Focus
Tax measures announced in the autumn 2024 budget included reforms to agricultural property relief for inheritance tax, changes to employer national insurance contributions and the extension of VAT to private school fees. This briefing provides some context to assess the potential economic impact of these measures on the nations and regions of the UK.
Research Briefing
The Consumer Products (Control of Biocides) Bill [HL] is a private member’s bill sponsored by Baroness Bennett of Manor Castle (Green Party). It would restrict the use of substances with antimicrobial properties, known as biocides, in cosmetic, personal care and other treated products, for example clothing and period products, subject to certain exemptions. The House of Lords is scheduled to debate the bill at second reading on 17 January 2025.
Research Briefing
The Financial Assistance to Ukraine Bill is a two-clause government bill that would authorise the government to provide loans and other financial assistance to Ukraine resulting from the extraordinary revenue acceleration (ERA) loans agreement made at the meeting of the G7 and the EU in June 2024. It has been designated as a money bill and it completed its House of Commons stages on 18 December 2024 with broad cross-party support.
Research Briefing
The National Insurance Contributions (Secondary Class 1 Contributions) Bill would implement the changes to employer national insurance contributions announced by Chancellor Rachel Reeves in the 2024 autumn budget.
In Focus
The government has set out an ambition to raise the growth rate of the UK economy. This briefing looks at how realistic this ambition is. Faster growth in GDP could help deal with some of the economic and social challenges facing the UK. While achieving this goal confronts several structural obstacles, advances in technology and addressing some current obstacles holding back economic activity have the potential to lift the economy onto a higher growth path.
In Focus
The rural economy in the UK is made up of a variety of different industries, including agriculture and tourism. Rural areas contribute a significant proportion of the UK’s economic output. However, figures for England indicate productivity in rural areas is lower when compared with urban areas. This briefing provides a summary of statistics on the rural economy and outlines some of the challenges for achieving economic growth.
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